1. INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
Tel.ComAfrica2002
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA BY
ROGER CHIUME
GROUP EXECUTIVE
INTERNATIONAL BUSINESS
25 OCTOBER 2002

2. and services to its communities.
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Introduction
In the telecommunications industry various phrases allude to the perception that
Africa is inept in its attempts to provide good telecommunications infrastructure
and services to its communities.
“Africa does not Talk to itself”
“The missing Link”

3. Promotion of social cohesion and economic integration of the continent
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Why Africa Connectivity ?
Enables efficient intra Africa business to business communications and trade
Promotion of social cohesion and economic integration of the continent
Retention in Africa of revenues generated in Africa
- Africa pays 400 million of US dollars yearly to developed
countries’ operators for the use of their transit facilities for
intra-Africa communications
Limited communication between countries and limited access to information
by the masses results into totalitarianism and dictatorships

4. The project was financially supported by UNDP, ECA and the OAU.
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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African Initiatives
The PanAfrican Telecommunications Network (PANAFTEL)- Dakar 1962
The objective was to set up an Africa-wide telecommunications network that
directly linked neighbouring countries, particularly the Sub Sahara countries
The project was financially supported by UNDP, ECA and the OAU.
The ITU through consultants undertook pre-investment research and link surveys.
Recommendations were
- line of sight terrestrial radio relay systems
- satellite earth stations for international links
Capable to carry voice, data and TV programmes
West African submarine cable linking Nigeria, Cote d’Ivoire, Senegal and Morocco
to Europe
PANAFTEL would be the key to unlock the economic and social development of the
African continent.

5. African Initiatives….continued
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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African Initiatives….continued
Failure of PANAFTEL
Political diversity and adversity among and between African countries
Cultural differences and colonial mentality – link each African capital to mother country
Piecemeal ownership of PANAFTEL by states, often with conflicting interest
Concentration on international links instead of national network development
Ethnic preferences and victimisation of the few competent and qualified personnel that
did not belong to the group
Financial constraints to upgrade and expand
- revenues generated went to government treasury
- inability to pay in time “sister” countries for termination of international traffic
Culture of network maintenance and adequate spares holding was lacking

6. African Initiatives….continued
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African Initiatives….continued
RASCOM – Regional African Satellite Communications Organisation
Was created in May 1992 by African Ministers of telecommunications in Abidjan
The mission is to provide an efficient and economic means of telecommunications
among all areas in Africa
The main objectives are:
- to establish direct links between all African countries
- to improve and / or develop inter- urban communications within each country
- to provide telecommunications infrastructure to rural areas at low cost
450, 000 telephone stations throughout Africa
low cost terminals at US$ 1000 per complete station
cost per call will be about US$0.10 per minute
It was envisaged that ownership of RASCOM would be 100 % by African
telecommunications operators. However, due to financial constraints and lukewarm
support of the project by some African countries, majority ownership of RASCOM is
now in the hands of private foreign investor company(ies).

7. African Initiatives….continued
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
Tel.ComAfrica2002
African Initiatives….continued
3. AFRICA ONE PROJECT
An AT&T conceived project to “ring”
Africa with an undersea cable in order
to improve interconnectivity.
Hinterlands would be accessed via
terrestrial links (logically to be
financed by AT&T)
Huge investment by each African
country
Majority ownership of equity would be in the hands of a
single foreign entity
De facto Africa-wide telecommunications operator by
a foreign company without “proper” regulatory sanction

8. African Initiatives….continued
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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African Initiatives….continued
4. COMTEL
The Common Market for Eastern and
Southern Africa (COMESA) formed a
telecommunications network company called
COMTEL, which was incorporated in
May The company formation was
agreed upon by Ministers of
telecommunications of COMESA in
June 1998.
The shareholding structure would be
30% SEP, 45% private sector investors and
25% National telecommunications operators,
NTOs.
The backbone network has been configured
to include a mix of optic fibre cable,
microwave and satellite connectivity and
to transmit voice, data and TV programmes.

9. Telkom SA about 30, was much less than 20 in 1994
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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The State of Affairs
Despite the efforts and years of attempts to improve intra Africa Connectivity,
by 2001 Africa was still behind Western countries’ direct links with Africa.
Carrier Direct links
to Africa 2001
BT >40
FT >40
Telecom Italia >40
Telkom SA about 30, was much less than 20 in 1994
Note: Telkom had the most connectivity to African countries

10. Change Drivers in the African Telecommunications Industry
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Change Drivers in the African Telecommunications Industry
The liberalisation of the markets – allowing individual players in multiple countries
Privatisation of PTOs / NTOs –injection of finance, skills and technology transfer
Entrepreneurial spirit among new generation Africans

11. Africa’s Success Story
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Africa’s Success Story
WASC/SAT 3/SAFE Submarine Cable
Project conceived by Telkom SA
Majority ownership by African countries -15 countries –US$ 294 million
Foreign investment exists
- 11 European companies – US$ 145 million
- 10 Asian companies – US$ 111 million
- 4 American companies – US$ 89 million
Links 9 African countries directly to each
other and to Europe and Asia
80 Gb/s capacity
System design life – 25 years
IT IS OPERATIONAL 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17
SAT-3/WASC
SAFE
SAT-2 2 3
SAT-3/WASC/SAFE CABLE

12. Africa’s Success Story….continued 2. VSAT
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Africa’s Success Story….continued
2. VSAT
Africa wide VSAT Solutions
are provided by South African
telcos to Multinationals such
as Banks, Retail Chains,
Mining firms and so forth.
Possible because of improved
Regulatory framework in
Africa.

13. Africa’s Success Story….continued
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
Tel.ComAfrica2002
Africa’s Success Story….continued
3. Cross Border Expansion
Vodacom in Lesotho, Tanzania, DRC, Mozambique and possibly Zambia
MTN in Swaziland, Uganda, Rwanda, Cameroon, Nigeria
ECONET in Leotho, Nigeria, Malawi and possibly Kenya
ESCOM and Transtel in various other countries
Sentech / SABC – Africa-wide coverage
Orbicom / DSTV – Africa-wide coverage
These cross border expansions bode well for improved international
interconnection between countries and as a result of entepreneurialship and
favourable Regulatory environment

14. Africa's Cellular Telephony Growth Africa's Fixed Telephony Growth
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
Tel.ComAfrica2002
Africa’s Success Story….continued
Africa's Cellular Telephony Growth
Year
1998
1999
2000
2001
Cameroon
3,200
4,000
250,000
311,000
Nigeria
15,000
22,000
40,000
677,000
Senegal
9,000
37,000
250,257
340,181
South Africa
2,540,000
3,400,000
9,000,000
11,000,000
Tanzania
36,000
48,000
90,000
427,000
Uganda
12,000
50,000
120,000
322,000
Zimbabwe
145,000
280,965
325,800
2,655,200
3,706,000
9,941,222
13,402,981
Africa's Fixed Telephony Growth
Year
1998
1999
2000
2001
Cameroon
120,000
87,950
142,000
154,000
Nigeria
412,000
417,682
492,000
Senegal
127,000
139,549
205,888
237,160
South Africa
4,645,000
5,075,000
5,100,000
5,900,000
Tanzania
115,759
150,000
200,300
243,549
Uganda
55,000
55,390
85,000
95,000
Zimbabwe
249,000
241,000
250,000
5,723,759
6,174,571
6,466,188
7,371,709

15. Africa's Internet Service Growth
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Africa’s Success Story….continued
Africa's Internet Service Growth
Year
1998
1999
2000
2001
Cameroon
2,000
4,000
4,500
Nigeria
5,000
40,000
50,000
Senegal
2,450
7,000
15,000
South Africa
370,000
1,430,000
2,850,000
Tanzania
3,000
8,000
25,000
300,000
Uganda
10,000
60,000
Zimbabwe
8,300
20,000

16. Africa’s Success Story….continued
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
Tel.ComAfrica2002
Africa’s Success Story….continued

17. continued privatisation of NTOs/ PTTs
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Opportunities and Pitfalls
Opportunities
continued privatisation of NTOs/ PTTs
emerging 2nd tier operators for JV / takeovers
cellular licences being issued all over Africa
positive FDI inflows in Angola and DRC
broadcasting signal distribution business
entertainment
telemedicine
distant education
large file transfers and video streaming – unidirectional
Pitfalls
political uncertainty
corporate governance ethics
excess debt due to rapid expansion
currency fluctuations

18. Critical Success Factors for Telecommunications Industry in Africa
INTERNATIONAL INTERCONNECTIVITY AND SERVICES IN AFRICA
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Critical Success Factors for Telecommunications Industry in Africa
Political stability
Liberalisation of markets and privatisation of NTOs
Harmonisation and coordination of Legal and Regulatory frameworks
Strategies to create “Resource Expertise” instead of consumer/service
competence; interconnected by broadband communications links.
IS AFRICA ON THE RIGHT TRACK?
LEAVE IT TO THE PRIVATE SECTOR