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TRANSCRIPT
Media stakeholders meeting
Telecommunication trend in Africa and new media service: Opportunities and challenges
HOTEL SOURCE DU NIL, BUJUMBURA, BURUNDI: 28TH MAY, 2012
Presented by : Eng. Andrew J Kisaka
Agenda Background of Africa Telecommunication sector
Liberalization of telecom sector in Africa and its impact in economy growth
Submarine cable in Africa
East Africa tariff structure for telecom services
Convergence of technologies and new media services
Opportunity or threats
Conclusion and the way forward
Background of telecommunication sector Before the years of 90’s, African telecommunication
Companies were 100% owned by the Government
There was monopoly of service provision
The African telecommunication services were mainly relied on Fixed landline telephone
The fixed telephone land line penetration was very low. Example in Tanzania, in 1990’s the penetration was 0.4%
Telecommunication services were very poor and not efficient
After Market Liberalization of the African telecommunication sector
Market liberalization of sector In the late 1990’s some of the African Countries started to
review their policies and liberalized investment in many sectors
Private companies were allowed to invest in various sectors including telecommunication
African Government refrained/ abstained from doing business
Many private Companies started to invest in African telecommunication sector either by 100% share capital or partnership with local Companies
Most African Countries introduced telecommunication regulatory bodies
Market liberalization of the sector Market liberalization attracted introduction of cellular
mobile phone in Africa
During 2002 African telecommunication market grew at a compound annual growth rate of 49.3% while that of French was only 7.5%
In 2008 Libya became the first countries to pass Mobile phone penetration of 100% while South Africa was 98%
In the same year, there were six Countries with penetration levels higher than 80% ( Libya, Tunisia, Algeria, Gabon, Syschell and South Africa)
Other African Countries penetration level were below 20% Source: GSM association
0
5
10
15
20
Fig.3:Voice Telecom Subscriptions (Millions)
UGANDA 0.25 0.33 0.56 0.84 1.24 1.62 2.82 5.33 8.72
TANZANIA 0.3 0.45 0.77 1.44 2.09 3.54 5.77 8.5 13.13
KENYA 0.42 0.91 1.65 1.87 4.42 5.55 7.63 11.8 16.8
2000 2001 2002 2003 2004 2005 2006 2007 2008
Telecom Subscriptions in Tanzania
VodaCom AirTel Tigo ZanTel TTCL Benson SasaTel TOTAL
October 8,521,990 5,967,169 4,604,586 1,632,045 252,720 2,560 23,744 21,004,814
November 8,583,565 6,010,210 4,546,149 1,658,273 250,602 2,386 24,254 21,075,439
December 8,670,536 6,021,091 4,477,510 1,715,985 246,019 2,396 24,827 21,158,364
January 8,711,628 5,966,283 4,539,071 1,346,970 227,851 2,321 8,469 20,802,593
February 8,572,468 5,948,380 4,564,393 1,360,897 226,034 2,190 8,222 20,682,584
March 9,014,195 5,927,417 4,671,263 1,354,098 226,153 2,074 8,498 21,203,698
VOICE TELECOM SUBSCRIPTIONS
Total Mobile TTCL Fixed Zantel Fixed Total Fixed TOTAL
October 20,831,951 157,419 15,444 172,863 21,004,814
November 20,901,066 158,927 15,446 174,373 21,075,439
December 20,983,853 159,054 15,457 174,511 21,158,364
January 20,628,169 158,942 15,482 174,424 20,802,593
February 20,507,895 159,129 15,560 174,689 20,682,584
March 21,028,821 159,254 15,623 174,877 21,203,698
SUBSCRIPTIONS TO FIXED MOBILE NETWORKS 2010/11
VodaCom 31%
AirTel 22%
Tigo 33%
ZanTel 3%
TTCL 10,7%
Benson 0,01%
SasaTel 0,004%
Fig3.1.2b: On Net Calls (Oct-Dec 2010)
Market liberalization of the sector
Voice telecom subscription has grown significantly for the short period
Penetration of telephone services has increased significantly up to the rural areas
Telephone mobile services have found many application which has reduced cost of living
- Paying electricity bill
- Money transfer i.e M pesa, Tigo pesa
On line application for business license, admission in Universities, company registrations and others.
Impact of telecommunication in African economies
Increase of formal employment
Most of the media (TV and Radio) are benefiting from commercial adverts of the Mobile phone companies (MTN, SAFARICOM, VODACOM, AIRTEL etc)
10% increase of the telephone penetration results in 1.2% increase of GDP in emerging market like Africa and 0.6% developed countries (Source: GSM association)
Angola has seen an annual GDP rate of 20% when penetration of mobile grew from 14% in 2006 to 31% in 2008
Digital divide 70% of the population sub sahara Africa still living in
rural area
Challenges is to reach remote pockets with cost effective cost way
Some of the African Countries have introduced Universal Communication Access Fund as the strategy to provide services in under served area
All telecom operators contribute a small percentage of their revenue to this fund
Mobile penetration globally 2007: One out of 4 African has a mobile phone
2007: One out of 3 Asian has a mobile phone
By end of 2007: 45 out of 100 inhabitants in the developing world have mobile phones
2008: ITU data suggest that About half of the world’s population (over 3 billion) does not have mobile phone
2008: 5.2 billions people are not using internet
19
Connectivity of Submarine Cables in Eastern and Southern Africa Region to
the NICTBB in Tanzania
Submarine cable Voice may remain to be the largest contributor to operators
revenue in medium term but arrival of submarine cable should be a catalyst of other added values; e- Government, e- learning.; e- medicine etc.
The submarine optic fiber cable have landed in Africa
- Seacom
- EASSy
- Team
Many operators and Government in Africa are building National and Metropolitan fiber networks to enable easy access to the networks
21
SEACOM
EASSy
TEAMs
LION
LION2
SEAS (Q2 2012)
SAT3/SAFE
WACS (Q2 2012)
ACE (Q3 2012)
Status of International Submarine CLS connectivity in EAC and SADC17
22
FORECASTED GROWTH
TANZANIA
KENYA
UGANDA DRC
ANGOLA
NAMIBIA
SOUTH AFRICA
LESOTHO
BOTSWANA
ZIMBABWE
MOZAMBIQUE
MADAGASCAR
ZAMBIA
BURUNDI
RWANDA
SWAZILAND
MAURITIUS
MALAWI
294.7Gbps
12.8Gbps
78.4Gbps
425.5Gbps 294.7Gbps
294.7Gbps
251.9Gbps
92.7Gbps
72.3Gbps
69.9Gbps
132.4Gbps
127.7Gbps
8.1Gbps
11.5Gbps
12.2Gbps 7.8Gbps
Based on current trends, by 2027 uptake levels in Southern Africa is estimated to be average penetration of 20% of the population with high-speed broadband and 60Kbps per subscriber of required international capacity and 120Kbps per subscriber of domestic capacity. Total international capacity for SADC as a group is estimated to be about 1.6 Tbps.
Source: SADC RIDMP draft diagnostic report
SAD
C
Mem
ber:
19
Popula
tion:
350.8
M
EAC
Mem
ber: 5
Popula
tion: 1
33.1
m
23
Nimule
Gulu
Lira
Soroti
Mbale
Loboi
Garisa
Thika
Nairobi
Moyale
Marsabit
Namanga
Arusha
Tanga
Pangani
Himo
Zanzibar
Dar-es-Salaam
Dodoma
Singida
Tabora
Kahama
Geita
Muleba
Bukoba Kyaka
Magu
Musoma Tarime
Kisii Sotik
Kisumu
Kericho
Kakamega
Kitale
Lokichogio
Lodwar
Kampala
Entebbe
Mombasa
Voi
Mtito Andei
Nakuru
Nanyuki
Same
Tunduma
Kondoa
Babati
Mpanda
Kasulu
Kigoma
Masaka
UGANDA KENYA
TANZANIA
Sumbawanga
Mbeya
Mbamba Bay
Songea
Tunduru
Lindi
Mtwara
Masasi
Mozambique Malawi
Zambia
Congo
Dem. Rep.
South Sudan Ethiopia
Mandera
Pemba
Kibondo
Som
alia
Jinja
Kigali
RWANDA
Mbarara
Kabale
Lake
Tanganyika
Lake
Victoria
Lake
Nyasa
Nzega
Manyoni
Tororo Malaba
Gatuna
Rusumo Biharamulo Murusenyi
Nyeri
Mwanza
Congo
Dem. Rep.
Korogwe
Shinyanga
Moshi
Morogoro
BURUNDI
Bujumbura
Iringa
Eldoret
Kajiado
Mutukula Embu
Meru Nyahururu
OFBI Operational
OFBI construction complete
OFBI Planned
National Capital
Town
LEGEND
Status of Implementation of Optical Fibre Backbone Infrastructure (OFBI) - April 2012
Source: EAC BIN Project Mission Report - 2012
24
International Submarine Cable’s Tariffs
TEAMs:
Data not obtained
LION2
Data not obtained
Tariff structure for both SEACOM & EASSy
Capacity Service Average Price (USD)
per Month
STM-1 55,000 – 60,000
STM-4 120,000 – 180,000
SEACOM
Average Price
(USD) per Month
per Mbps
Broadband Whole Sale 900 – 950
Capacity Service
IRU Average Price
(USD) BTWN
10 - 20 Yrs
STM-4 4 M
STM-16 11 M
Telecom tariff structure in East Africa
Fig. 4: Tariffs for On Net Calls
TANZANIA
KENYA
UGANDA
0
50
100
150
200
250
300
350
400
450
500
Ts
hs
TANZANIA 385 340 311 322 323 300 322
KENYA 421 437 363 375 434 392 210
UGANDA 199 201 220 243 236 284 302
2002 2003 2004 2005 2006 2007 2008
Fig.5: Tariffs for Off Net Mobile Calls
TANZANIA
KENYA
UGANDA
0
100
200
300
400
500
600
700
Ts
hs
TANZANIA 492 472 412 426 419 417 407
KENYA 600 617 583 534 613 549 310
UGANDA 240 243 265 294 292 387 321
2002 2003 2004 2005 2006 2007 2008
Fig.6: Tariffs for Off Net Fixed Calls
TANZANIA
KENYA
UGANDA
0
100
200
300
400
500
600
700 T
sh
s
TANZANIA 514 474 438 472 419 431 491
KENYA 603 590 517 537 586 549 273
UGANDA 217 219 239 265 236 347 319
2002 2003 2004 2005 2006 2007 2008
Challenges on provision of telecommunication services
Challenges Governance including regulatory challenges
Political structure and stability
Reliable power supplies
Affordability
Convergence of technologies
Convergence of technologies.. Convergence of technologies have become possible
due to digitalization of ICT networks
No boundaries between telecommunication and broadcasting networks (Convergence of technology);
No distinction between telecom and broadcast receivers.
Content may be available on broadcasting or telecommunication networks
Convergence of devices and services
Types of Convergence
18th November, 2011
A B C D
Services
-Content
TV
Network
Facilities – Transmitter links,
fibre cable, booster
stations, satellite etc
Cable
Satellite
.
Radio
Licensing framework before digitalization
-Broadcasting Structure – service specific
Operators
Convergence of technologies Convergence of technologies have lead to adoption of
converged or unified licensing framework
- Content
- Network facility
- Network services
- Application services
Impact of digital revolution: Telecom and Media perspective
Impact of digital revolution; telecommunication perspective
Tele- conference now is possible among the people living in different geographical area
Tele workers: Companies are operating without physical location offices provided there are broadband facilities connected at home
Growing number of mobile content users (Over 40 million mobile telephone subscribers in EAC)
Over 10 million East African access and use internet and most of them access using mobile
Radio broadcast on mobile telephone
Social benefits; Mobile phones have brought people closer.
Impact of digital revolution: Media perspective
Creation of the new media services
Advertising industry has increased
Small film industry starts to grow
Mobile TV with good quality is now available in the market
More professionals in the market
More choice and variety content
Digital dividend
Increasing opportunity of trade, travel and tourism due to expansion of media
Emerging of multimedia services New media are internet based application that allows
exchange of user generated content
They take the form of digital text , images and video with web links ,creative participation, interactive and feedback
It is Digital data is susceptible to manipulation by software
Accessibility to content is anytime, anywhere and anyhow.
Emerging multimedia services
Video sharing: You tube, daily motion
Music and audio sharing
Blogs : e.g Opendiary ,vox , Issa Michuzi
Social Networking sites: e.g LinkedIn, Facebook, Xing, Myspace
IPTV
The Role of the regulator
To Facilitate development of the sector- Licensing
To over see fair play and level play field
To prepare regulations, rules and guidelines for the sector
To manage scarce resource (Radio frequency and numbering)
enforcement
Regulatory challenges on new media services
Policy Frameworks
Policies overtaken by New Media services-management, content regulation, organisation
Licensing and Registration
Coverage
Regulatory challenges on new media services
Regulatory Frameworks
Licensing issues
C0ntent Regulation-legal liabilities
Economic Regulation –Tariffs, competition
Technical Regulation-standardization
Opportunity
Threats
Creation of employment (i.e air time voucher for telecom/broadcast)
More players and diversity of revenue streams
More choice of content and more variety
Creation of new media services (content available any where, any time any how)
Reduction of cost of living ( tele workers and distance) learning
Freed spectrum
Hiking into people privacy information
Theft of documents and financial information is growing in the region.
In west digital content laws enacted are largely ineffective
Erosion of culture Digital rights management
becomes difficult to enforce Regulating the sector
becomes more complex
Conclusion To put emphasis on opportunities and reap benefits of
digitalization
Collective and joint efforts to address threats
Ensure reliable broadband infrastructure and affordable services
Review Policies on how media should be organized , Managed and regulated to accommodate New Media services
Redefine Regulatory Frameworks to provide for regulation of New Media services
Broadcasting organizations should adopt new business models
Thank you very much for your attention !