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Executive Summary (Contd...) Introduction (Contd…) Wire-line Telecommunications Market: Undersea Cables Map (Sub-Saharan Africa), 2008 Source: http://manypossibilities.net M514-63 11
Executive Summary (Contd...) Introduction (Contd…) Undersea Cables • Several current and planned fibre projects will not only deliver high-capacity bandwidth to Africa, but also boost competition in the wire-line market and reduce costs of telecommunication. • However, expensive satellite services will continue to play a significant role in reaching Africa’s extensive rural and remote areas, where the majority of low-income group resides. • On the west coast, five submarine cable projects (Glo-1, WACS, MAIN One, ACE ,SAFE, SEA-ME- WE.3, and Atlantis-II) are under development. • Glo-1 has landed in the west coast in September 2009 and WASC will land by the end of 2009. • MAIN One and ACE are expected to land in 2010 and 2011, respectively. • On the east coast, the first fibre-optic submarine cable (SEACOM) went live in July 2009. Other three undersea cables (TEAMS, EASSy and Uhurunet) are expected to be operational along the east coast by the end of 2010. • These undersea cables will provide high-speed fibre optic connectivity at lower costs. • The whole sale tariffs of telecommunication services range between $x,xxx and $xx,xxx for SAT3 undersea cable and between $x,xxx and $x,xxx for satellite connection. • By the end of 2009, these tariffs will start declining to be within the range of $xxx and $x,xxx after Glo-1 undersea cable went live in the west coast, thereby representing an average cost reduction of xx.x per cent. • Besides better international networks, inland backbone terrestrial links will be needed and retail prices will have to come down once benefit of the wholesale price reduction is passed down to the end users. M514-63 12
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