make the right connections - Connect-World
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AFRICA AND THE MIDDLE EAST 2006<br />
Universal<br />
Broadband<br />
Access -<br />
A Basic Right If so, How and Why
AFRICA AND THE MIDDLE EAST 2006<br />
Universal<br />
Broadband<br />
Access -<br />
A Basic Right If so, How and Why
CONTENTS<br />
<strong>Connect</strong>ions<br />
First words from <strong>the</strong><br />
Editor-In-Chief’s desk<br />
by Fredric J. Morris<br />
Imprint<br />
Subscription<br />
Promotional Features<br />
CBOSS<br />
5 7 11 14<br />
17 21 24 26<br />
28 33 33 37<br />
40 42 47 52<br />
52<br />
56<br />
Advertisements<br />
All articles are available as<br />
downloads. Visit us online at<br />
www.connect-world.com<br />
Belgacom<br />
Detecon<br />
ITU Telecom <strong>World</strong><br />
<strong>Connect</strong>-<strong>World</strong><br />
INTEC<br />
ITU WSIS<br />
GSM 3G <strong>World</strong> Series (Africa)<br />
Terrapin Telecoms<strong>World</strong><br />
Futurecomm<br />
JDSU<br />
GSM Middle East & Gulf<br />
PTC<br />
Terrapin Subnet<br />
GSM <strong>World</strong> Congress (Asia)<br />
Global FMC Forum<br />
Terrapin Digital<br />
<strong>Connect</strong>-<strong>World</strong><br />
Broadcasting & Media Congress<br />
Pegasus Consultancy<br />
Terrapin Cards<br />
Ericsson<br />
Cisco<br />
2<br />
2<br />
60<br />
9<br />
IFC<br />
3<br />
4<br />
10<br />
15<br />
19<br />
22<br />
29<br />
30<br />
32<br />
35<br />
38<br />
43<br />
44<br />
49<br />
50<br />
53<br />
54<br />
57<br />
59<br />
IBC<br />
OBC<br />
National Development<br />
Broadband in Egypt 5<br />
by His Excellency, Dr Tarek Kamel, Minister of Communications and Information<br />
Technology, Egypt<br />
Universal broadband access - basic <strong>right</strong>s and aspirations 7<br />
by Dr Hessa S. Al-Jaber, PhD, Secretary General, ictQATAR, <strong>the</strong> Supreme Council of<br />
Information & Communication Technology, Qatar<br />
Rural Development<br />
ICT, broadband and rural development in Africa 11<br />
by Robert B. Kozma, Ph.D., Emeritus Director and Principal Scientist, Centre for<br />
Technology in Learning, SRI International, California, USA<br />
Convergent Billing<br />
Converged billing - enabling African mobile 14<br />
by Birger Thorburn, CTO, Converged Billing Solutions Group, Comverse EMEA<br />
Broadband Deployment<br />
Closing <strong>the</strong> digital gap 17<br />
by Ruediger Muehlhausen, VP, Group Messages and PR at Siemens Communications<br />
Digital Divide<br />
Bridging new digital divides 21<br />
by Jean-Hervé Jenn, President, International, Convergys Corporation<br />
3G Networks<br />
3G in <strong>the</strong> Kingdom and <strong>the</strong> Middle East 24<br />
by Saud Bin Majed Al-Daweesh, President, Saudi Telecom Company<br />
Wireless Broadband<br />
Wireless broadband - changing business in Africa and <strong>the</strong><br />
Middle East by Pertti Johansson, President, Qualcomm Middle East and Africa 26<br />
Universal broadband - can it pay in Africa 28<br />
by Michah Himmelman, Founder and President, MaxBill Ltd<br />
Wireless<br />
Wireless - building <strong>the</strong> Middle East and Africa 33<br />
by Jose R. Figueroa, Corporate Vice President & Regional Manager (EMEA and<br />
LAC), and Ali Amer, Senior Director of Sales (MENAPAK), Motorola Networks.<br />
Digital Inclusion and Corporate Responsibility<br />
Africa and <strong>the</strong> Middle East - broadband access for growth 37<br />
by Paul Bell, Senior Vice President, Dell EMEA<br />
Triple Play<br />
Triple play in Africa - a pipe dream 40<br />
by Desi Lopez Fafi é – Managing Director, African Operations, Oracle Corporation<br />
Data Security<br />
Mobile data security 42<br />
by Massimo Migliuolo, Vice President for <strong>the</strong> Global Mobile Vertical at Cisco Systems<br />
Metropolitan Wireless Broadband<br />
The promise of metropolitan wireless broadband 47<br />
by Makoto Ikari, General Manager, Wireless Broadband Division, Corporate<br />
Communication Systems Equipment Group, Kyocera Corporation<br />
Digital TV<br />
Broadband and digital TV - new cultural dimensions 52<br />
by Neil Gaydon, CEO & Mike Tometzki, New Business Development Manager,<br />
Pace Micro Technology<br />
Education<br />
Education and universal broadband access 56<br />
by Dr Mounir Hamdi, Director, Computer Engineering Programme, The Hong Kong<br />
University of Science and Technology<br />
All articles are available for download at www.connect-world.com<br />
1
CONNECTIONS<br />
Broadband has replaced basic telephony as <strong>the</strong> goal of many of<br />
<strong>the</strong> world’s universalisation programmes. Not very long ago, basic<br />
communication, basic telephony alone, was fundamental for full<br />
participation in society and <strong>the</strong> economy. Today, however, with <strong>the</strong><br />
growth of <strong>the</strong> Internet and of <strong>the</strong> Information Society, telephony is<br />
just <strong>the</strong> barest, minimal, communication service and broadband<br />
is <strong>the</strong> benchmark for digital inclusion. Broadband <strong>make</strong>s distance<br />
learning possible, brings social services, provides entertainment and<br />
<strong>make</strong>s VoIP - almost costless calling - possible.<br />
The <strong>the</strong>me for this issue of <strong>Connect</strong>-<strong>World</strong> Africa and <strong>the</strong> Middle<br />
East is Universal Broadband Access - A Basic Right If so, How and<br />
Why Leaders from throughout <strong>the</strong> region were asked to examine<br />
what universal broadband access can mean to Africa and <strong>the</strong> Middle<br />
East - both for business and to its citizens, and what can be done to<br />
<strong>make</strong> available to all what is now coming to be considered a basic<br />
<strong>right</strong>.<br />
<strong>Connect</strong>-<strong>World</strong> Africa and <strong>the</strong> Middle East is an official media sponsor<br />
of GSM ME Gulf and North Africa (11 to 12 September, Dubai),<br />
Cards Africa (9 to 12 October, Johannesburg, South Africa), GSM<br />
Africa (19 to 20 October, South Africa), Tunisia Telecom (1 to 4 November,<br />
Tunisia), and Gitex (18 to 22 November, Dubai). In addition<br />
to our usual mailings, copies of <strong>Connect</strong>-<strong>World</strong> will be distributed at<br />
<strong>the</strong>se shows.<br />
In each of <strong>Connect</strong>-<strong>World</strong>’s editions<br />
- Global, Africa and <strong>the</strong> Middle East,<br />
Asia-Pacific, Europe, India, North<br />
America, Latin America, and EMEA - global and regional leaders<br />
look at <strong>the</strong> issues that drive <strong>the</strong> development of <strong>the</strong>ir home regions<br />
or countries. Current discussions centre upon <strong>the</strong> changes wrought<br />
in industry and society by <strong>the</strong> latest generation of information and<br />
communications technology, especially Internet protocol digital communications,<br />
broadband and personalised services - and how both<br />
business and society are changing, need to change, as a result.<br />
<strong>Connect</strong>-<strong>World</strong> sponsors many major industry events throughout <strong>the</strong><br />
world. Check our website, www.connect-world.com for a list of <strong>the</strong><br />
shows we will be at in <strong>the</strong> coming months. If you will be attending any<br />
of <strong>the</strong>se shows, send us a note. It would be a pleasure to meet you.<br />
Fredric J. Morris,<br />
Editor-in-Chief,<br />
<strong>Connect</strong>-<strong>World</strong><br />
All <strong>right</strong>s reserved. No part of this publication may be reproduced,<br />
stored in a retrieval system or transmitted in any form or by any means<br />
electronical, mechanical, photocopying, recording or o<strong>the</strong>rwise, without<br />
prior permission from <strong>the</strong> publishers. The content of this publication is<br />
based on best knowledge and information available at <strong>the</strong> time of publication.<br />
No responsibility for any injury, death, loss, damage or delay,<br />
however caused, resulting from <strong>the</strong> use of <strong>the</strong> material can be accepted<br />
by <strong>the</strong> publishers or o<strong>the</strong>rs associated with its preparation. The publishers<br />
nei<strong>the</strong>r accept responsibility for, nor necessarily agree with, <strong>the</strong><br />
views expressed by contributors.<br />
Editor-in-Chief:<br />
Fredric J. Morris<br />
fredric.morris@connect-world.com<br />
Publisher:<br />
David Nunes<br />
david.nunes@connect-world.com<br />
Managing Director:<br />
Valetta Brown<br />
valetta.brown@connect-world.com<br />
Proof Reader:<br />
Diane Cross<br />
<strong>Connect</strong>-<strong>World</strong> is published under Licence<br />
by WORLD INFOCOMMS LTD<br />
Executive Office:<br />
• Global House, 12 Albert Road, London E16 2DW •<br />
United Kingdom<br />
Tel.: +44 20 7540 0876 • Fax: +44 20 7474 0090<br />
email: info@connect-world.com • URL: www.connect-world.com<br />
Printers:<br />
Express Printing Services LLC<br />
ISSN 1741-122X<br />
2 Issue 2006
CONNECTIONS<br />
Broadband has replaced basic telephony as <strong>the</strong> goal of many of<br />
<strong>the</strong> world’s universalisation programmes. Not very long ago, basic<br />
communication, basic telephony alone, was fundamental for full<br />
participation in society and <strong>the</strong> economy. Today, however, with <strong>the</strong><br />
growth of <strong>the</strong> Internet and of <strong>the</strong> Information Society, telephony is<br />
just <strong>the</strong> barest, minimal, communication service and broadband<br />
is <strong>the</strong> benchmark for digital inclusion. Broadband <strong>make</strong>s distance<br />
learning possible, brings social services, provides entertainment and<br />
<strong>make</strong>s VoIP - almost costless calling - possible.<br />
The <strong>the</strong>me for this issue of <strong>Connect</strong>-<strong>World</strong> Africa and <strong>the</strong> Middle<br />
East is Universal Broadband Access - A Basic Right If so, How and<br />
Why Leaders from throughout <strong>the</strong> region were asked to examine<br />
what universal broadband access can mean to Africa and <strong>the</strong> Middle<br />
East - both for business and to its citizens, and what can be done to<br />
<strong>make</strong> available to all what is now coming to be considered a basic<br />
<strong>right</strong>.<br />
<strong>Connect</strong>-<strong>World</strong> Africa and <strong>the</strong> Middle East is an official media sponsor<br />
of GSM ME Gulf and North Africa (11 to 12 September, Dubai),<br />
Cards Africa (9 to 12 October, Johannesburg, South Africa), GSM<br />
Africa (19 to 20 October, South Africa), Tunisia Telecom (1 to 4 November,<br />
Tunisia), and Gitex (18 to 22 November, Dubai). In addition<br />
to our usual mailings, copies of <strong>Connect</strong>-<strong>World</strong> will be distributed at<br />
<strong>the</strong>se shows.<br />
In each of <strong>Connect</strong>-<strong>World</strong>’s editions<br />
- Global, Africa and <strong>the</strong> Middle East,<br />
Asia-Pacific, Europe, India, North<br />
America, Latin America, and EMEA - global and regional leaders<br />
look at <strong>the</strong> issues that drive <strong>the</strong> development of <strong>the</strong>ir home regions<br />
or countries. Current discussions centre upon <strong>the</strong> changes wrought<br />
in industry and society by <strong>the</strong> latest generation of information and<br />
communications technology, especially Internet protocol digital communications,<br />
broadband and personalised services - and how both<br />
business and society are changing, need to change, as a result.<br />
<strong>Connect</strong>-<strong>World</strong> sponsors many major industry events throughout <strong>the</strong><br />
world. Check our website, www.connect-world.com for a list of <strong>the</strong><br />
shows we will be at in <strong>the</strong> coming months. If you will be attending any<br />
of <strong>the</strong>se shows, send us a note. It would be a pleasure to meet you.<br />
Fredric J. Morris,<br />
Editor-in-Chief,<br />
<strong>Connect</strong>-<strong>World</strong><br />
All <strong>right</strong>s reserved. No part of this publication may be reproduced,<br />
stored in a retrieval system or transmitted in any form or by any means<br />
electronical, mechanical, photocopying, recording or o<strong>the</strong>rwise, without<br />
prior permission from <strong>the</strong> publishers. The content of this publication is<br />
based on best knowledge and information available at <strong>the</strong> time of publication.<br />
No responsibility for any injury, death, loss, damage or delay,<br />
however caused, resulting from <strong>the</strong> use of <strong>the</strong> material can be accepted<br />
by <strong>the</strong> publishers or o<strong>the</strong>rs associated with its preparation. The publishers<br />
nei<strong>the</strong>r accept responsibility for, nor necessarily agree with, <strong>the</strong><br />
views expressed by contributors.<br />
Editor-in-Chief:<br />
Fredric J. Morris<br />
fredric.morris@connect-world.com<br />
Publisher:<br />
David Nunes<br />
david.nunes@connect-world.com<br />
Managing Director:<br />
Valetta Brown<br />
valetta.brown@connect-world.com<br />
Proof Reader:<br />
Diane Cross<br />
<strong>Connect</strong>-<strong>World</strong> is published under Licence<br />
by WORLD INFOCOMMS LTD<br />
Executive Office:<br />
• Global House, 12 Albert Road, London E16 2DW •<br />
United Kingdom<br />
Tel.: +44 20 7540 0876 • Fax: +44 20 7474 0090<br />
email: info@connect-world.com • URL: www.connect-world.com<br />
Printers:<br />
Express Printing Services LLC<br />
ISSN 1741-122X<br />
2 Issue 2006
MAKE THE RIGHT CONNECTIONS<br />
ITU TELECOM WORLD 2006 provides a unique global ICT networking platform<br />
where great minds, companies and new technologies connect. Join <strong>the</strong><br />
leaders of business, government, regulators, innovators and visionaries to<br />
explore, negotiate and decide <strong>the</strong> future of <strong>the</strong> ICT industry. Organized by <strong>the</strong><br />
International Telecommunication Union (ITU). Visit www.itu.int /world2006
National Development<br />
Broadband in Egypt<br />
by His Excellency, Dr Tarek Kamel, Minister of Communications<br />
and Information Technology, Egypt<br />
To develop Egyptʼs economy and improve its citizensʼ standard of living, Egypt is working to educate its citizens<br />
and provide affordable Internet access. Initially, <strong>the</strong> Egyptian Educational Initiative, a joint effort with<br />
<strong>the</strong> <strong>World</strong> Economic Forum and nine of <strong>the</strong> worldʼs leading ICT companies, will provide ICT training for<br />
820,000 students in more than 2,000 schools and universities. The government is encouraging <strong>the</strong> development<br />
of local content in Arabic and, toge<strong>the</strong>r with ISPs, has worked to cut broadband access prices.<br />
Dr Tarek Mohamed Kamel is Egyptʼs Minister of Communications and Information Technology. He is also <strong>the</strong> Chairman of <strong>the</strong> National<br />
Telecom Regulatory Authority, and Chairman of <strong>the</strong> Information Technology Industry Development. As a Senior Advisor to <strong>the</strong> Minister<br />
of Communications and Information Technology for five years before himself being appointed Minister, Dr Kamel spearheaded a number<br />
of national initiatives to spread <strong>the</strong> use of ICT tools amongst <strong>the</strong> segments of Egyptian society. Previously, Dr Kamel served as <strong>the</strong> manager<br />
of <strong>the</strong> Communications and Networking Department, <strong>the</strong> Cabinet Information and Decision Support Centre (IDSC/RITSEC), as <strong>the</strong><br />
Secretary of <strong>the</strong> Egyptian Internet Society, as Professor of Computer Networks at <strong>the</strong> Electronics Research Institute, and as a VP and,<br />
later, a Trustee of <strong>the</strong> Internet Society (ISOC), Virginia. Dr Kamel was also a member of <strong>the</strong> Board of Telecom Egypt. The Minister began<br />
his career as a networks support engineer for <strong>the</strong> Academy of Technology and Scientific Research, and swiftly moved on to becoming an<br />
assistant researcher at <strong>the</strong> ERI, winning a fellowship for his PhD studies from <strong>the</strong> German Academic Exchange (DAAD).<br />
Egypt is embarking on a new technology-driven<br />
campaign to support its socio-economic development<br />
strategy. This strategy is addressing<br />
a vision to create a vibrant ICT industry and<br />
information-literate society; and <strong>the</strong> Government<br />
of Egypt collectively with <strong>the</strong> business<br />
sector is joining forces to materialize it.<br />
Widespread and affordable broadband access<br />
is fundamental in realizing <strong>the</strong> potential and<br />
development of our Information Society. A<br />
nationwide secure broadband infrastructure<br />
is essential for <strong>the</strong> development and delivery<br />
of services and applications that complement<br />
and contribute to <strong>the</strong> advance of sectors that<br />
<strong>the</strong> Government of Egypt is focusing upon,<br />
including education and learning, medical and<br />
healthcare, government and public services,<br />
industry development, trade and exports.<br />
Egypt just launched its national educational<br />
initiative on 20th May, in an attempt to reform<br />
<strong>the</strong> educational sector by heavily injecting<br />
ICTs in <strong>the</strong> academic experience. This<br />
initiative increasingly utilizes broadband and<br />
high-speed accessibility. It embraces projects<br />
such as ʻSmart Schoolsʼ, high-speed Internet<br />
for middle schools (7,000 schools), illiteracy<br />
eradication as well as life-long learning and<br />
professional training programmes via unique<br />
e-learning schemes in a variety of sectors. Initiatives<br />
such as <strong>the</strong>se <strong>make</strong> broadband crucial<br />
to growth and quality of life for <strong>the</strong> generations<br />
ahead.<br />
The Egyptian Educational Initiative is a joint<br />
effort in collaboration with <strong>the</strong> <strong>World</strong> Economic<br />
Forum and nine leading information<br />
and communication technology companies,<br />
namely: CISCO, Computer Associates, HP,<br />
IBM, Intel, Lucent, Microsoft, Oracle, and<br />
Siemens. The initiativeʼs core activities include<br />
ICT training in schools and <strong>the</strong> development<br />
of suitable curricula in an online format<br />
designed to improve radically <strong>the</strong> quality of<br />
<strong>the</strong> educational process and enhance efficiency<br />
of <strong>the</strong> system. More than 820,000 students in<br />
2,000 preparatory schools and over 300 faculties<br />
in 15 universities will be beneficiaries of<br />
<strong>the</strong> first phase of <strong>the</strong> EEI.<br />
The government is working concurrently to<br />
create a reliable high-speed network to connect<br />
<strong>the</strong> countryʼs research and development<br />
institutes to <strong>the</strong> Internet. This will enable efficient<br />
interaction between Egyptian students<br />
and <strong>the</strong>ir peers globally, thus creating opportunities<br />
for innovation and entrepreneurship.<br />
Internet use in Egypt has enormous growth<br />
potential according to current statistics. The<br />
Egyptian Broadband Initiative, launched in<br />
2004 as part of Egyptʼs Information Society<br />
Initiative e-access programme, added a new<br />
dimension to <strong>the</strong> successful ʻhome-grownʼ<br />
free-Internet model, which had been launched<br />
back in 2002. This new broadband model was<br />
“The government is working concurrently to create a reliable<br />
high speed network to connect <strong>the</strong> country’s research and<br />
development institutes to <strong>the</strong> Internet”<br />
structured, at first, to attract small businesses,<br />
but <strong>the</strong> demand <strong>the</strong>n spread to individuals, to<br />
residential users. The model basically called<br />
for <strong>the</strong> unbundling of <strong>the</strong> last mile local loops<br />
for <strong>the</strong> provision of broadband wire-line and<br />
cleared <strong>the</strong> spectrum needed for wireless broadband<br />
services. The initiative was launched<br />
on <strong>the</strong> first day of Telecom Africa, <strong>the</strong> ITUʼs<br />
regional event. It brought Egyptʼs citizens a<br />
much needed alternative to <strong>the</strong> dial-up connection.<br />
The new service was accompanied by<br />
a promotional campaign to highlight <strong>the</strong> direct<br />
benefits for <strong>the</strong> user, such as <strong>the</strong> ʻalways onʼ<br />
feature, <strong>the</strong> linking of multiple computers, and<br />
<strong>the</strong> ability to use simultaneously <strong>the</strong> telephone<br />
line and <strong>the</strong> Internet.<br />
This month, taking <strong>the</strong> Egypt Information Society<br />
Initiative a step fur<strong>the</strong>r, broadband prices<br />
were reduced even more and special packages<br />
for higher speeds were introduced. Built upon<br />
a strong partnership between <strong>the</strong> government<br />
and <strong>the</strong> private sector, this major restructuring<br />
of <strong>the</strong> broadband initiative is aimed not only at<br />
widening <strong>the</strong> user base, but also at attracting<br />
new segments of <strong>the</strong> society and providing <strong>the</strong><br />
users with a high-speed access platform that<br />
can support converged and next generation<br />
data services. Today, at a cost of only US$16<br />
per month, citizens can subscribe to 256 kb/s<br />
Issue 2006 5
National Development<br />
broadband services. As a result, <strong>the</strong>re are now<br />
more than five million dial-up Internet users<br />
and one million broadband Internet users serviced<br />
by <strong>the</strong> countryʼs seven Internet service<br />
providers, ISPs. The number of users<br />
is expected to increase by 150<br />
per cent by <strong>the</strong> end of 2007.<br />
Broadband will fundamentally<br />
change <strong>the</strong> way Egyptians use <strong>the</strong><br />
Internet. Availability of content, and<br />
new communications platforms for<br />
delivery, will play a key role in <strong>the</strong><br />
future of <strong>the</strong> new wave of broadband<br />
in Egypt; this will pave <strong>the</strong> way for<br />
<strong>the</strong> growth of services in <strong>the</strong> region<br />
as well. Egyptʼs increasingly mature<br />
infrastructure will soon be ready<br />
to introduce a new set of services<br />
aimed at addressing <strong>the</strong> growing<br />
needs of users. The new services<br />
will include applications that facilitate<br />
conducting business online, and<br />
o<strong>the</strong>r services will enhance participation<br />
in academic learning experiences,<br />
or simply provide entertainment via<br />
electronic means.<br />
The encouraging progress of <strong>the</strong> sector has<br />
given <strong>the</strong> government <strong>the</strong> conditions needed to<br />
work on <strong>the</strong> next phase of broadband in Egypt.<br />
The government, through its National Telecom<br />
Regulatory Authority, NTRA, in cooperation<br />
with <strong>the</strong> ISPs, came up with a next-generation<br />
model based upon private sector investments<br />
and competition to drive increased bandwidth,<br />
quality, innovation and <strong>the</strong> nationwide spread<br />
of <strong>the</strong> service. The availability of Internet access<br />
and broadband is helping Egypt achieve<br />
its objective of decentralization by establishing<br />
affordable and reliable channels for free<br />
interaction between stakeholders.<br />
The growth of broadband access is also very<br />
much coupled to <strong>the</strong> availability of suitable<br />
content. Operators or ISPs tend increasingly to<br />
“Egypt’s population is a<br />
young one, with a developing<br />
economy, and <strong>the</strong> next phase<br />
of broadband development<br />
will look into mechanisms<br />
that are more aggressive and<br />
offer attractive new packages<br />
to users.”<br />
invest in broadband infrastructure in response<br />
to <strong>the</strong> emergence of new cultural and business<br />
content delivery models. It is worth noting<br />
that introducing innovative local applications<br />
and services to <strong>the</strong> market has encouraged usage,<br />
and many content service providers are<br />
now devoting serious resources to developing<br />
content in Arabic to encourage new segments<br />
of society to get online. Accordingly, Egypt<br />
launched its E-Content Initiative in 2005<br />
aimed at boosting Arabic content on <strong>the</strong> Web<br />
and, more specifically, to address <strong>the</strong> needs of<br />
<strong>the</strong> local and regional markets.<br />
Broadband will fundamentally change<br />
<strong>the</strong> way Egyptians use <strong>the</strong> Internet. Availability<br />
of content, and new communications<br />
platforms for delivery, will play a<br />
key role in <strong>the</strong> future of <strong>the</strong> new wave of<br />
broadband in Egypt;<br />
Egyptʼs population is a young one, with a<br />
developing economy, and <strong>the</strong> next phase of<br />
broadband development will look into mechanisms<br />
that are more aggressive and offer attractive<br />
new packages to users. Fur<strong>the</strong>rmore,<br />
Egypt, already a telecommunication infrastructure<br />
and connectivity leader in <strong>the</strong> region<br />
and a hub for traditional and digital cultural<br />
content, is currently considering a new framework<br />
for delivery of audio-visual services.<br />
The rapid development of Internet usage has<br />
encouraged <strong>the</strong> establishment of new means<br />
for interaction between <strong>the</strong> government and its<br />
citizens. Services have been introduced, such<br />
as online publishing of high-schools grades,<br />
and <strong>the</strong>re has been increased awareness in<br />
universities about <strong>the</strong> ability of <strong>the</strong> Internet to<br />
provide information throughout <strong>the</strong> many segments<br />
of <strong>the</strong> community. Accessing <strong>the</strong> website<br />
of <strong>the</strong> Ministry of Education to view <strong>the</strong><br />
results of <strong>the</strong> high school certificate before it is<br />
published in newspapers or on school bulletin<br />
boards has become a routine for many anxious<br />
parents. The unique benefit provided by <strong>the</strong> Internet,<br />
which by nature is a toll for public communications,<br />
is to affordably connect people<br />
across <strong>the</strong> globe. Extending Internet access to<br />
all citizens will fur<strong>the</strong>r <strong>the</strong> understanding between<br />
peoples and cultures. Making <strong>the</strong> Internet<br />
reliable, secure and affordable for all, however,<br />
will require international collaboration.<br />
To encourage greater international connectivity<br />
with <strong>the</strong> world, during 2006 and 2007 Egypt<br />
will put into practice a programme to deregulate<br />
international services. The introduction<br />
of an alternative infrastructure in 2007/2008<br />
will give customers a choice and encourage<br />
<strong>the</strong> development of <strong>the</strong> local content needed<br />
to attract Egyptians to get online and help non-<br />
Egyptians to understand <strong>the</strong> countryʼs culture<br />
and civilization.<br />
The NTRA, which oversees <strong>the</strong> utilization of<br />
<strong>the</strong> basic telecom facilities and services nationwide,<br />
has created a Universal<br />
Service Fund dedicated<br />
to building an information<br />
society for all by encouraging<br />
<strong>the</strong> growth of broadband<br />
access. Moreover, a Consumer<br />
Rights Committee,<br />
formed by <strong>the</strong> NTRA, keeps<br />
an eye on <strong>the</strong> quality of<br />
telecom services offered to<br />
Egyptʼs citizens and creates<br />
public awareness about topics<br />
of interest and concern to<br />
<strong>the</strong> population. <br />
<strong>Connect</strong>-<strong>World</strong> is<br />
celebrating its 10th year<br />
anniversary<br />
Through <strong>the</strong> years, <strong>Connect</strong>-<br />
<strong>World</strong>’s authors told of <strong>the</strong> rise<br />
of mobile, of fibre, of wireless<br />
and of broadband; <strong>the</strong>y told of<br />
<strong>the</strong> dot.com meltdown, of<br />
digital inclusion and convergence,<br />
of standards and breakthroughs,<br />
<strong>the</strong> rise of IP and<br />
<strong>the</strong> fall of switching and of <strong>the</strong><br />
regulatory turnaround.<br />
In every issue of <strong>Connect</strong>-<strong>World</strong><br />
heads of state, ministers and<br />
regulators, heads of<br />
international institutions and<br />
leaders of industry speak of<br />
what <strong>the</strong> ICT revolution, as it<br />
happens, means to <strong>the</strong> people<br />
in <strong>the</strong>ir regions of <strong>the</strong> world.<br />
www.connect-world.com<br />
6 Issue 2006
National Development<br />
Universal broadband access - basic <strong>right</strong>s<br />
and aspirations<br />
by Dr Hessa S. Al-Jaber, PhD, Secretary General, ictQATAR,<br />
<strong>the</strong> Supreme Council of Information & Communication Technology, Qatar<br />
Technology is forcing a re-evaluation of what a citizenʼs basics <strong>right</strong>s within his society are.<br />
Technology is changing <strong>the</strong> accessibility - not only of <strong>the</strong> elite, but also of people from every<br />
level of society - to previously inaccessible services. <strong>World</strong>-level educational or health services,<br />
for example, will become increasingly accessible via broadband enabled mobile phones.<br />
This forces governments not only to re-assess what basic civic <strong>right</strong>s should be, but also to<br />
take into account <strong>the</strong> heretofore submerged aspirations of <strong>the</strong> population.<br />
Dr Hessa Al-Jaber is <strong>the</strong> Secretary General of ictQATAR, <strong>the</strong> policymaking and regulatory body for information and communication<br />
technology in Qatar. She brings to her role a wealth of business and academic experience in ICT development. Prior to becoming Secretary<br />
General, Dr Al-Jaber was a member of <strong>the</strong> Strategic ICT Committee, responsible for shaping Qatarʼs national ICT strategy. Dr<br />
Al-Jaber served previously as <strong>the</strong> IT adviser for Qtel, Qatarʼs telecommunications provider, and was Chair of <strong>the</strong> Computer Science<br />
Department of Qatar University. She has also worked with o<strong>the</strong>r leading Qatar institutions, including Hamad General Hospital. Dr Al<br />
Jaber currently sits on <strong>the</strong> Board of Regents of Qatar University and <strong>the</strong> Board of Governors of <strong>the</strong> American School of Doha. She is also<br />
a board member of <strong>the</strong> newly established Qatar Financial Markets Authority.<br />
A co-author of several publications and academic papers, Dr Al-Jaber has presented her research at conferences and symposia in <strong>the</strong><br />
Middle East, <strong>the</strong> United States and Korea. Most recently, Dr Hessa Al-Jaber was <strong>the</strong> Chairperson of <strong>the</strong> <strong>World</strong> Telecommunication Development<br />
Conference 2006 held in Doha, Qatar. Dr Al-Jaber studied at Kuwait University before completing her Masterʼs Degree and<br />
Doctorate in Computer Science at George Washington University, Washington D.C.<br />
In <strong>the</strong> not so distant future, everyone will need<br />
to, and will, access information from myriad<br />
sources at <strong>the</strong> click of a button. To do this, <strong>the</strong>y<br />
will use diverse devices such as a phone, computer,<br />
PDA, TV receiver, and even a universal<br />
smart card that will store all of a personʼs information<br />
and serve as a credit card for use in<br />
multiple systems.<br />
In this future, everyone will have to contend<br />
with what some futurists have called ʻfilocityʼ<br />
- <strong>the</strong> ability to re-create oneself - to come up<br />
to speed and accommodate oneself to different<br />
forms of communications, new situations and<br />
unfamiliar cultures. Everyone will be doing<br />
most of <strong>the</strong>ir personal and professional activities<br />
in and through a digitized environment in<br />
<strong>the</strong>ir cars, homes, offices and schools, at airports,<br />
in airplanes, shopping malls and all <strong>the</strong><br />
o<strong>the</strong>r familiar places <strong>the</strong>y visit.<br />
In this future, people will <strong>right</strong>ly aspire to more;<br />
<strong>the</strong>y will demand <strong>the</strong> means to better <strong>the</strong>mselves<br />
and to break down <strong>the</strong>ir own knowledge<br />
barriers. Members of our society will enter a<br />
zone where <strong>the</strong>y can aspire “to know, to go, to<br />
do, to be” (Taylor et al., 1997).<br />
The single most important enabler of this progressive<br />
society is <strong>the</strong> concept of communication<br />
in general, and ʻbroadband for allʼ in<br />
specific. Think of it as a 24/7, ubiquitous and<br />
unrestricted facilitator - an element that serves<br />
as a connecting thread as we go about living<br />
our lives.<br />
So asking, in 2006, whe<strong>the</strong>r universal broadband<br />
access is a basic <strong>right</strong> or not is, I submit,<br />
a rhetorical question. Never<strong>the</strong>less, policy<br />
<strong>make</strong>rs must address it fully so that no ambiguities<br />
remain, and all those concerned can go<br />
about <strong>the</strong>ir business to <strong>make</strong> <strong>the</strong> ʻbroadband<br />
for allʼ vision happen.<br />
As proven over many decades of research,<br />
technology is central to our ability to innovate<br />
and advance, and it works in tandem with our<br />
social and economic evolution - said differently<br />
ʻto know, to go, to do, to beʼ. Technology,<br />
however, can only deliver sustainable empowerment<br />
and results if, and only if, it is adequately<br />
related to a broader set of objectives<br />
and strategies derived from a nationʼs longterm<br />
vision and socio-economic development<br />
targets. So, technology in general, and ʻbroadband<br />
for allʼ in specific, is not a solution for<br />
government inertia. Technology must serve, it<br />
must relate, and <strong>the</strong> drive to use it must stem<br />
from a more profound desire at a national level<br />
to move forward. I would like to think that this<br />
drive, reflecting a universal aspiration, is more<br />
intense in <strong>the</strong> Arab world.<br />
Why universal broadband should be a basic<br />
<strong>right</strong><br />
In this discussion, broadband must be viewed<br />
as a primary mode of communication as opposed<br />
to just ano<strong>the</strong>r technology. When we refer<br />
to broadband, we should be mindful of <strong>the</strong><br />
plethora of applications and services attached<br />
to it. Information, entertainment, education,<br />
exploration and research are only a short<br />
sample of <strong>the</strong> infinite possibilities broadband<br />
brings. All <strong>the</strong>se possibilities, however, can be<br />
summed up into two basic elements: access<br />
and content.<br />
So <strong>the</strong> basic <strong>right</strong> must be manifested first by<br />
providing access, through any technological<br />
means possible and using any viable arrangement.<br />
The key success factors are sustainability<br />
and scalability. Put differently, <strong>the</strong> access<br />
provided today should be based on a solid<br />
technological, operational and economic foundation<br />
- as failure is not an option. The access<br />
solution should allow for rapid evolution as<br />
demand increases, requirements escalate, and<br />
new technologies for solutions rapidly enter<br />
<strong>the</strong> market. I do not wish to open a debate as to<br />
whe<strong>the</strong>r this universal access is to be provided<br />
by <strong>the</strong> public or private sector. My view is that<br />
each environment is different, and if we are to<br />
deliver rapid results <strong>the</strong>n we must be willing to<br />
take some risks - and innovate.<br />
Issue 2006 7
National Development<br />
Content, fortunately, has more development<br />
traction in any society - it is embedded in our<br />
communication DNA. Some have argued that<br />
content in <strong>the</strong> Arab world has lagged behind,<br />
and this has hindered <strong>the</strong> connectivity of our<br />
societies. I say maybe, maybe not. What I do<br />
know is that content is now growing exponentially<br />
and we are now more challenged by <strong>the</strong><br />
need to filter and focus in an abundant environment<br />
than to search and find amidst severe<br />
scarcity.<br />
Arab governments are also becoming increasingly<br />
aware of <strong>the</strong> advantages of providing<br />
e-services and information by using new electronic<br />
technologies. These technologies economically<br />
and efficiently provide widespread<br />
and speedy distribution of information and<br />
can, as well, provide citizens with interactive<br />
services. When governments consider <strong>the</strong>y<br />
have <strong>the</strong> duty to provide content and services<br />
to citizens <strong>the</strong>n it can safely be assumed that<br />
access to such content is a <strong>right</strong>. I am an optimist,<br />
and believe that we already have a lot of<br />
content to start with. What we observe is that<br />
content is coming from all sources, private and<br />
public. We have finally re-accepted <strong>the</strong> adage<br />
that <strong>the</strong> more we share <strong>the</strong> better we become,<br />
we think of this as <strong>the</strong> start of a knowledge<br />
renaissance in <strong>the</strong> Arab world. On balance,<br />
we have passed <strong>the</strong> point of just considering<br />
a citizenʼs <strong>right</strong>s; now we entertain concerns<br />
about <strong>the</strong> citizenʼs many aspirations.<br />
Can universal broadband access be a basic<br />
<strong>right</strong><br />
As we move from aspirations, we need to<br />
evolve to perceptions and realities, and we<br />
come to realize that although we, collectively,<br />
still have a long way to go to realistically<br />
achieve universal broadband access, we are on<br />
<strong>the</strong> <strong>right</strong> path. The good news is that <strong>the</strong> model<br />
for progressing on this vector has been tested<br />
successfully time and again, and it is within<br />
our reach. It boils down, in fact, to three basic<br />
factors: environment, readiness and usage.<br />
This is where policy <strong>make</strong>rs can <strong>make</strong> an impact<br />
and pave <strong>the</strong> runway for <strong>the</strong>ir societies to<br />
embark on a progressive journey.<br />
of readiness is a matter of building<br />
awareness and reducing <strong>the</strong> barriers<br />
to broadband usage by citizens,<br />
businesses and government agencies.<br />
On this continuum, usage seeks to<br />
increase broadband take-up among<br />
citizens, businesses and government<br />
agencies through targeted policies,<br />
and ideas that can encourage and<br />
support <strong>the</strong> sustainable development<br />
of compelling content.<br />
Talking about a runway naturally<br />
implies that all <strong>the</strong>se factors must be<br />
addressed in parallel, and any emphasis<br />
on one factor at <strong>the</strong> expense of<br />
ano<strong>the</strong>r could be detrimental. In particular,<br />
<strong>the</strong>se factors should mitigate<br />
<strong>the</strong> sometime entrenched barriers to<br />
broadband development commonly<br />
encountered. In <strong>the</strong> Arab world, <strong>the</strong><br />
supply related barriers cover infrastructure,<br />
regulation, applications,<br />
tariffs, security issues and general<br />
technophobia. Demand related constraints<br />
included lack of education, inadequate knowledge<br />
and computer literacy, to name just a<br />
few.<br />
To overcome <strong>the</strong>se constraints, Arab government<br />
and policy <strong>make</strong>rs need to develop a series<br />
of critical enablers, or initiatives, to help<br />
ensure that <strong>the</strong> rapid adoption and high impact<br />
of broadband in <strong>the</strong> Arab region takes place<br />
“In <strong>the</strong> Arab world, <strong>the</strong> supply related barriers cover infrastructure,<br />
regulation, applications, tariffs, security issues<br />
and general technophobia. Demand related constraints included<br />
lack of education, inadequate knowledge and computer<br />
literacy, to name just a few.”<br />
as hoped. The regionʼs governments should,<br />
through good regulation, encourage wider<br />
coverage, encourage affordable broadband<br />
through competition and increase <strong>the</strong> availability<br />
of e-services and of Arabic language<br />
content and applications. In <strong>the</strong> meanwhile,<br />
<strong>the</strong> policy <strong>make</strong>rs in <strong>the</strong> Arab region should<br />
carefully guide <strong>the</strong> progress of liberalisation<br />
and competition in order not to disturb <strong>the</strong> efforts<br />
to extend <strong>the</strong> broadband networks to <strong>the</strong><br />
rural areas. Arab countries should not, perhaps<br />
cannot, duplicate <strong>the</strong> regulatory frameworks<br />
of developed countries; government involvement<br />
and incentives for commercial operators<br />
will be essential in order to deploy networks<br />
where reasonable commercial potential and<br />
sound business models do not exist.<br />
Universal broadband access should be a basic <strong>right</strong><br />
and must be viewed as a primary mode of communication<br />
as opposed to just ano<strong>the</strong>r technology.<br />
At <strong>the</strong> environment level, we are developing<br />
regulations to encourage a 50 per cent penetration<br />
of broadband services by 2008. The<br />
framework covers, among o<strong>the</strong>r things, <strong>the</strong> elements<br />
of competition, quality of service, price<br />
regulations, and even financial incentives;<br />
At <strong>the</strong> readiness level, we are working<br />
with world-class institutions to scale-up <strong>the</strong><br />
computer literacy of our society across all layers<br />
and classes. The e-education programme,<br />
to illustrate, seeks to instil a working familiarity<br />
with technology at an early age by making<br />
appropriate ICT content, <strong>the</strong> means of delivery<br />
and communications an integral element<br />
of <strong>the</strong> educational process. E-learning programmes<br />
are also in preparation to reach <strong>the</strong><br />
adult population. Overall, we are ever-mindful<br />
of <strong>the</strong> danger of digital divide and are doing<br />
our utmost to eliminate it;<br />
At <strong>the</strong> usage level, we are working with<br />
a number of private and public institutions to<br />
digitize <strong>the</strong>ir services and create new opportunities<br />
for <strong>the</strong>ir customers to interface with<br />
<strong>the</strong>m; cases in point are <strong>the</strong> e-health and e-procurement<br />
programmes underway.<br />
The work of ictQATAR, so far, is only a small<br />
step in a long and always surprising march towards<br />
progress, constantly punctuated by surprising<br />
new cyber-technology and discoveries.<br />
Technologies such as broadband have created<br />
positive discontinuities and it is our duty to<br />
harness <strong>the</strong>m. We are excited by <strong>the</strong> journey,<br />
motivated by <strong>the</strong> destination, and confident of<br />
<strong>the</strong> result. <br />
On this runway, <strong>the</strong> concern with <strong>the</strong> environment<br />
is a question of developing <strong>the</strong> market<br />
conditions, <strong>the</strong> infrastructure and <strong>the</strong> supporting<br />
legal and regulatory frameworks needed<br />
for broadband development. The dimension<br />
We are mindful of <strong>the</strong> challenges that <strong>the</strong> State<br />
of Qatar faces. We have, accordingly, put a<br />
work plan in place that aims to address <strong>the</strong> expected<br />
problems early on. Our plan was developed,<br />
objectively, to achieve <strong>the</strong> following:<br />
8 Issue 2006
Na-<br />
CBOSS<br />
IP-telephony:<br />
As simple as that<br />
By Andrey Morozov, President & CEO, CBOSS<br />
CBOSS - <strong>the</strong> acronym stands for<br />
Convergent Business Operation<br />
Support System - is one of <strong>the</strong> largest<br />
software vendors in <strong>the</strong> world<br />
and a leading provider of IT solutions<br />
for telecom. The company has more<br />
than 1,200 installations globally;<br />
its products are in use by over 150<br />
customers in 31 countries across<br />
five continents. It has built partnership<br />
alliances with global IT industry<br />
leaders such as Hewlett-Packard,<br />
Oracle, Sun Microsystems, Cantata<br />
Technology, Hitachi Data Systems,<br />
Intel, Microsoft and Xerox.<br />
Since VoIP is not yet a commonplace<br />
phenomenon on <strong>the</strong> continent<br />
- it was just recently legalized in<br />
South Africa - many carriers are now<br />
seeking an edge to leverage this innovative<br />
technology. Considering<br />
Internet providers’ specific needs,<br />
CBOSS developed a fully-functional<br />
IP-based solution, which enables<br />
contact registration, payment receipt<br />
and registration, service provisioning<br />
control, service charging according to flexibly adjustable<br />
schemes and billing.<br />
The solution lets operators offer local, long-distance and international<br />
communications and supports service provisioning to both<br />
individual and corporate clients. The Internet platform, a part of<br />
<strong>the</strong> solution, features a vast number of options to customize <strong>the</strong><br />
interactive voice menus, scenarios and rules for subscriber authorization<br />
and charging schemes. This functionality lets <strong>the</strong> system<br />
account for <strong>the</strong> transit of VoIP-traffic even on networks with<br />
highly sophisticated configurations.<br />
This solution is already operated successfully by many carriers<br />
<strong>the</strong> world over, including one of <strong>the</strong> largest regional mobile<br />
operators in Russia with approximately one million subscribers.<br />
The telco started looking for new business opportunities to keep<br />
pace with <strong>the</strong> development of mobile communications technology<br />
and <strong>the</strong> emergence - in regional markets - of competition<br />
from national operators. Assessing <strong>the</strong> market potential for Internet<br />
services in rural areas, <strong>the</strong> telco<br />
has opted for CBOSS’ IP-solution.<br />
The company had already installed<br />
16 CBOSS products featuring high<br />
performance, scalability and compatibility;<br />
<strong>the</strong>se successful experiences<br />
influenced <strong>the</strong> telco’s decision to utilize<br />
<strong>the</strong> CBOSS billing system for its<br />
IP-based services.<br />
As a result, CBOSS’ IP deployment<br />
enabled <strong>the</strong> telco to:<br />
Provide dialup and LAN Internet<br />
services to residential and business<br />
customers;<br />
Dramatically increase <strong>the</strong> number<br />
of IP service subscribers;<br />
Expand <strong>the</strong> variety of services provided<br />
to more than 200; and<br />
Improve <strong>the</strong>ir ability to compete by<br />
building up a subscriber base equivalent<br />
to those of <strong>the</strong> national operators<br />
in <strong>the</strong> region and boost data service<br />
revenues by 20 per cent.<br />
CBOSS’ VoIP integrated with CBOSS’ Service Telephone Card<br />
System creates a fully functional prepaid solution. Moreover,<br />
when using scratch cards of a particular Internet service provider,<br />
<strong>the</strong> subscriber can take advantage of <strong>the</strong> system’s convergent<br />
billing management. Integration with CBOSS’ Internet Customer<br />
Service System facilitates customer self-care and account status<br />
monitoring, while decreasing <strong>the</strong> load on <strong>the</strong> subscriber service.<br />
The converged, modular and highly scalable solution efficiently<br />
functions within a network with several remote access-nodes and<br />
a single authorization and accountancy centre. CBOSS’ integrated<br />
VoIP-solution is designed to help telcos decrease <strong>the</strong> average<br />
cost of <strong>the</strong> call’s transfer via transit partners, improve communications<br />
quality, increase subscribers’ satisfaction and loyalty,<br />
shorten <strong>the</strong> connection time, increase equipment efficiency, and<br />
ramp up business profitability.<br />
PROMOTIONAL FEATURE
<strong>Connect</strong>-<strong>World</strong> is celebrating its 10th anniversary. One decade ago, <strong>Connect</strong>-<strong>World</strong> told <strong>the</strong> story as<br />
<strong>the</strong> public phone monopolies were privatised and competition began to drive telecommunications<br />
growth.<br />
Through <strong>the</strong> years, <strong>Connect</strong>-<strong>World</strong>’s authors told of <strong>the</strong> rise of mobile, of fibre, of wireless and of<br />
broadband; <strong>the</strong>y told of <strong>the</strong> dot.com meltdown, of digital inclusion and convergence, of standards<br />
and breakthroughs, <strong>the</strong> rise of IP and <strong>the</strong> fall of switching and of <strong>the</strong> regulatory turnaround.<br />
<strong>Connect</strong>-<strong>World</strong> told <strong>the</strong> story behind <strong>the</strong> story of <strong>the</strong> Information and Communication Technology (ICT)<br />
revolution. In every issue of <strong>Connect</strong>-<strong>World</strong> heads of state, ministers and regulators, heads of internaa<br />
tional institutions and leaders of industry speak of what <strong>the</strong> ICT revolution, as it happens, means to<br />
<strong>the</strong> people in <strong>the</strong>ir regions of <strong>the</strong> world.<br />
Among our authors<br />
• Yoshio Utsumi<br />
• Pekka Tarjanne<br />
• Ricardo Maduro<br />
• Atal Bihari Vajpayee<br />
• Renato Ruggiero<br />
• Alan Bryden<br />
• José María Figueres Olsen<br />
• Carlos Alfredo Magarinos<br />
• Maria Livanos Cattaui<br />
• Wu Jichuan<br />
• Leonid Reiman<br />
• Cornelius Olatunji Adebayo<br />
• César Alierta Izuel<br />
• Jaime Chico Pardo<br />
• Mukesh Ambiani<br />
• Jean Philippe Courtois<br />
• Thomas Ganswindt<br />
Executive Office:<br />
Global House<br />
12 Albert Road<br />
London E16 2DW<br />
United Kingdom<br />
Tel: +44 20 7540 0876<br />
Fax: +44 20 7474 0090<br />
email: info@connect-world.com
Rural Development<br />
ICT, broadband and rural development in Africa<br />
by Robert B. Kozma, Ph.D., Emeritus Director and Principal Scientist, Centre<br />
for Technology in Learning, SRI International, California, USA<br />
In Africa, agriculture provides a livelihood for most of <strong>the</strong> population yet per-person food production<br />
has declined in <strong>the</strong> past two decades. The Green Revolution has not reached Africa.<br />
Practical information about crops, markets, and such could <strong>make</strong> <strong>the</strong> difference. Technology<br />
can get information to <strong>the</strong> <strong>right</strong> people in <strong>the</strong> <strong>right</strong> form. Rural telecentres, toge<strong>the</strong>r with o<strong>the</strong>r<br />
forms of spreading information - radios, cell phones, <strong>the</strong> Internet, even bicycles - are needed<br />
to spread critical information and improve <strong>the</strong> lives of villagers.<br />
Dr Robert B. Kozma is an Emeritus Director, Principal Scientist and Fulb<strong>right</strong> Senior Specialist at <strong>the</strong> Centre for Technology in Learning<br />
at SRI International in Menlo Park, California. For 20 years prior to this, Dr Kozma was a professor and a research scientist at<br />
<strong>the</strong> University of Michigan. Dr Kozmaʼs expertise includes ICT policy that links education reform to economic and social development,<br />
international educational technology research, <strong>the</strong> evaluation of large-scale technology-based education reform, <strong>the</strong> design of advanced<br />
interactive multimedia systems, and <strong>the</strong> use of technology to improve learning, particularly <strong>the</strong> learning of science. He has directed or<br />
co-directed over 25 projects and authored or co-authored more than 75 articles, chapters and books. He has consulted with Ministries<br />
of Education in Egypt, Singapore, Thailand, Norway and Chile, as well as Intel Corporation, <strong>the</strong> <strong>World</strong> Bank, OECD, UNESCO and <strong>the</strong><br />
Ford Foundation on <strong>the</strong> use of technology to improve educational systems and connect to development goals. Most recently, he provided<br />
pro-bono consulting for <strong>the</strong> Millennium Villages Project, a UN-sanctioned project at Columbia University, on <strong>the</strong> role that ICT can play<br />
in supporting poverty reduction and development in Africa.<br />
Rural development in Africa<br />
As Africa increases its use of information and<br />
communications technologies, it is likely that<br />
<strong>the</strong> continentʼs urban centres will benefit first<br />
from <strong>the</strong>se developments. The infusion of<br />
ICT resources and high-speed Internet <strong>connections</strong><br />
will support <strong>the</strong> creation of media<br />
production houses in Cairo, business incubators<br />
in Dakar, call centres in Nairobi and<br />
technology parks in Johannesburg. But what<br />
of <strong>the</strong> rural areas, where <strong>the</strong> agricultural sector<br />
provides a livelihood for 70-85 per cent<br />
of <strong>the</strong> labour force of most African countries<br />
and where most of Africaʼs poverty exists<br />
Will ICT and broadband <strong>connections</strong> unlock<br />
development in <strong>the</strong> rural areas<br />
In <strong>the</strong> face of ICT policies that support technology<br />
development in urban areas, Nobel<br />
laureate Norman Borlaug reminds us that no<br />
nation has been able to bring about economic<br />
development and substantially reduce poverty<br />
without first sharply increasing productivity<br />
in its agricultural sector. The dramatic<br />
increases in economic development we are<br />
witnessing today in China and India were<br />
built on <strong>the</strong> success of <strong>the</strong> Green Revolution<br />
that took place in <strong>the</strong>se countries between<br />
1970 and 1995. This revolution has yet to materialize<br />
in Africa, where <strong>the</strong>re has actually<br />
been a decline in per-person food production<br />
over <strong>the</strong> past two decades.<br />
ICT and rural development<br />
Can ICT contribute to <strong>the</strong> Green Revolution<br />
and rural development in Africa To explore<br />
this possibility, I visited seven rural community<br />
telecentres in East Africa and interviewed<br />
“ICT policies must support<br />
information access in rural<br />
areas. For <strong>the</strong> lack of an undersea<br />
cable to East Africa,<br />
Internet access will likely require<br />
rural subsidies for satellite<br />
links, extended by WiMAX<br />
networks.”<br />
The agricultural sector provides a livelihood for 70-85 per cent of <strong>the</strong> labour<br />
force of most African countries and is where most of Africaʼs poverty exists.<br />
Will ICT and broadband <strong>connections</strong> unlock development in <strong>the</strong> rural areas<br />
managers, staff members and users. These are<br />
among <strong>the</strong> stories that farmers in <strong>the</strong>se rural<br />
communities told me of how information<br />
contributed directly to <strong>the</strong>ir economic and social<br />
improvement:<br />
A Ugandan farmer near <strong>the</strong> nor<strong>the</strong>rn shore<br />
of Lake Victoria previously produced ten 100<br />
kg sacks of maize per acre on his farm. When<br />
he learned how to use manure as fertilizer, he<br />
increased <strong>the</strong> productivity of his farm to 20<br />
sacks per acre.<br />
Ano<strong>the</strong>r Ugandan maize farmer used to<br />
broadcast his seeds in <strong>the</strong> spring planting.<br />
Issue 2006 11
Rural Development<br />
The informational needs of <strong>the</strong>se communities<br />
are often related to farm practice<br />
and productivity: information on<br />
seeds, planting, fertilizing, weeding and<br />
harvesting, as well as animal breeding,<br />
feeding, and treatment of diseases.<br />
When he learned to plant in straight lines and<br />
space his seeds, his productivity went from<br />
two bags per acre to ten bags or more.<br />
In a rural market in nor<strong>the</strong>rn Tanzania, a<br />
buyer offered a maize farmer TSh 2,800 per<br />
100kg sack. Because he knew <strong>the</strong> going market<br />
price, <strong>the</strong> farmer refused <strong>the</strong> offer and was<br />
able to get TSh 3,200 per sack. With <strong>the</strong> 14<br />
per cent difference, he was able to purchase<br />
sheet metal for a roof on his house.<br />
Ano<strong>the</strong>r Tanzanian farmer, offered TSh<br />
2,500 per 20kg basket of her chickpeas, was<br />
able to negotiate TSh 4,000 per basket because<br />
she knew <strong>the</strong> market price. With <strong>the</strong> 60<br />
per cent difference, she was able to pay her<br />
daughtersʼ high school fees.<br />
Each of <strong>the</strong>se villagers was a user of a community<br />
telecentre. Computers were available<br />
in all <strong>the</strong>se centres, but bicycles, books, cell<br />
phones, radios, video tapes and <strong>the</strong> Internet<br />
were among <strong>the</strong> technologies that villagers<br />
used to acquire information and improve <strong>the</strong>ir<br />
lives.<br />
Information, communication and technology<br />
each play a unique role in development.<br />
These distinct roles are often lost when <strong>the</strong><br />
terms are rolled up into <strong>the</strong> common acronym<br />
ʻICTʼ. ICT is often thought of only as technology,<br />
and too often narrowly conceived as<br />
computers; <strong>the</strong> roles of information and communication<br />
are overlooked. Yet information<br />
and its communication are critical to ending<br />
poverty and launching <strong>the</strong> Green Revolution<br />
in Africa. Information is <strong>the</strong> raw intellectual<br />
material that supports development. Communication<br />
is <strong>the</strong> social, interpersonal process by<br />
which information is transferred, exchanged,<br />
and disseminated. Technology is <strong>the</strong> means<br />
to extend human capability and support <strong>the</strong>se<br />
processes.<br />
“Before needed information<br />
can <strong>make</strong> a difference in <strong>the</strong><br />
lives of rural Africans it must<br />
first get to <strong>the</strong> people who<br />
need it in a form that <strong>make</strong>s<br />
it useful. However, most of<br />
<strong>the</strong> world’s information is<br />
not available to Africans, and<br />
when it is available, it is often<br />
in <strong>the</strong> wrong language or<br />
requires literacy skills that<br />
people do not have. The most<br />
common form of information<br />
exchange in rural African villages<br />
is word of mouth.”<br />
ʻInformation is powerʼ, reads <strong>the</strong> slogan of<br />
<strong>the</strong> Family Alliance for Development and<br />
Cooperation, a telecentre in Tanzania. Most<br />
of <strong>the</strong> centres I visited were very responsive<br />
to <strong>the</strong> informational needs of <strong>the</strong>ir communities.<br />
For example, <strong>the</strong> Nakaseke Community<br />
Telecentre in Uganda did a formal survey of<br />
community informational needs. Staff members<br />
of <strong>the</strong> Nabweru Community Telecentre,<br />
also in Uganda, regularly attend community<br />
meetings and <strong>the</strong>y have a users committee<br />
that helps <strong>the</strong>m assess <strong>the</strong> communityʼs informational<br />
needs. The Cromabu Telecentre in<br />
Tanzania has user support groups that regularly<br />
assess <strong>the</strong> needs of a particular clientele<br />
- women, out-of-school youth, farmers,<br />
and o<strong>the</strong>rs. The informational needs of <strong>the</strong>se<br />
communities are often related to farm practice<br />
and productivity: information on seeds,<br />
planting, fertilizing, weeding and harvesting,<br />
as well as animal breeding, feeding and<br />
treatment of diseases. Current information on<br />
market prices was also highly valued. There<br />
were needs beyond farming, as well, related<br />
to water harvesting, energy efficiency, health,<br />
nutrition, culture, local news, and even national<br />
sports.<br />
Before needed information can <strong>make</strong> a difference<br />
in <strong>the</strong> lives of rural Africans it must<br />
first get to <strong>the</strong> people who need it in a form<br />
that <strong>make</strong>s it useful. However, most of <strong>the</strong><br />
worldʼs information is not available to Africans,<br />
and when it is available it is often in <strong>the</strong><br />
wrong language or requires literacy skills that<br />
people do not have. The most common form<br />
of information exchange in rural African<br />
villages is word of mouth. However, farmers<br />
in Uganda reported difficulties related to<br />
word-of-mouth communication, among <strong>the</strong>m<br />
<strong>the</strong> unreliability of oral information, due to<br />
informational drift as it passes through <strong>the</strong><br />
community, misunderstanding of <strong>the</strong> original<br />
message, or intentional misinformation<br />
in service of competitive advantage. The<br />
community telecentre in <strong>the</strong> communities I<br />
visited served as an information conduit and<br />
as <strong>the</strong> communication hub of <strong>the</strong> community<br />
by collecting, organizing, storing, retrieving,<br />
and disseminating needed information, often<br />
transforming it into <strong>the</strong> local language.<br />
Technology can be <strong>the</strong> key to getting <strong>the</strong> <strong>right</strong><br />
information to <strong>the</strong> <strong>right</strong> people in <strong>the</strong> <strong>right</strong><br />
form, but technologies vary in <strong>the</strong>ir capabilities<br />
and <strong>the</strong>ir costs. Some of <strong>the</strong> telecentres<br />
I visited had fairly sophisticated technology<br />
that included copy machines, video cameras<br />
and tape decks, computers, and even Internet<br />
access. However, in some cases, communication<br />
was accomplished with very simple technology.<br />
Because capital is so scarce in Africa,<br />
technologies must be selected for <strong>the</strong> greatest<br />
information and communication value per<br />
cost. For example, <strong>the</strong> Cromabu Telecentre<br />
used community volunteers and a small<br />
fleet of bicycles to ga<strong>the</strong>r price information<br />
on various crops from neighbouring markets.<br />
The centre <strong>the</strong>n collated this information and<br />
distributed it to farmers in <strong>the</strong> community,<br />
again using bicycles. Three of <strong>the</strong> telecentres<br />
on my itinerary had community radio sta-<br />
12 Issue 2006
Rural Development<br />
tions: Nakaseke, Nabweru and Sengerema.<br />
These were low-cost, low-power transmitters<br />
that none<strong>the</strong>less had enough range to service<br />
a large number of people within 10-15km<br />
from <strong>the</strong> telecentre. Twelve to 18 hours of<br />
programming each day was created by local<br />
volunteers, who often used computers,<br />
CD-ROM libraries and Internet searchers<br />
as information sources. Their programming,<br />
ranging from topics on agricultural practices<br />
and market prices to health, education and<br />
womenʼs concerns, was delivered in <strong>the</strong> local<br />
language. Thus, through <strong>the</strong> use of radio,<br />
Internet-based information was disseminated<br />
at very low cost to a much larger audience<br />
than would o<strong>the</strong>rwise not have access to <strong>the</strong><br />
Internet.<br />
Conclusions and policy implications<br />
Prior to <strong>the</strong> Green Revolution in Asia, half<br />
of <strong>the</strong> population did not get enough to eat;<br />
today this percentage has fallen to onefifth.<br />
In 1975, six out of ten Asians lived<br />
in poverty; by 1993, it was only two out of<br />
ten East Asians and four out of ten South<br />
Asians. There are many reasons why <strong>the</strong><br />
Green Revolution has not taken root in Africa.<br />
These include <strong>the</strong> lack of paved roads,<br />
under developed commodity markets, <strong>the</strong><br />
absence of credit systems and under-investment<br />
in agricultural technologies specific to<br />
<strong>the</strong> African context. None<strong>the</strong>less, <strong>the</strong> farmers<br />
I interviewed in East Africa were beginning<br />
to experience <strong>the</strong> benefits of increased farm<br />
productivity and improved market information<br />
because of <strong>the</strong>ir use of ICTs.<br />
Increased investments in Afro-centred agricultural<br />
technologies, extension services,<br />
and rural highways are essential to launch <strong>the</strong><br />
Green Revolution in Africa, but ICT and <strong>the</strong><br />
Internet can also be an important part of <strong>the</strong><br />
rural development package, under <strong>the</strong> <strong>right</strong><br />
policy conditions. First, <strong>the</strong> priority must be<br />
on information over technology. Information<br />
important to rural communities must be generated<br />
in digital form and in local languages -<br />
The priority must be on information over technology. Any sophisticated<br />
technologies deployed in rural areas must produce a matching<br />
level of information<br />
“...<strong>the</strong> priority must be on information<br />
over technology. Information<br />
important to rural<br />
communities must be generated<br />
in digital form and in local<br />
languages - information on<br />
improved crop inputs, weeding,<br />
and harvesting, animal breeding,<br />
feeding, and treatment of<br />
diseases, as well as information<br />
on water harvesting, energy efficiency,<br />
health, and nutrition. ”<br />
information on improved crop inputs, weeding<br />
and harvesting, animal breeding, feeding,<br />
and treatment of diseases, as well as information<br />
on water harvesting, energy efficiency<br />
health, and nutrition.<br />
ICT policies must support information access<br />
in rural areas. For <strong>the</strong> lack of an undersea<br />
cable to East Africa, Internet access<br />
will likely require rural subsidies for satellite<br />
links, extended by WiMAX networks. Radio<br />
frequency licence fees should be reduced or<br />
eliminated for community stations.<br />
ICT policies are also needed that support<br />
<strong>the</strong> development community telecentres.<br />
This requires not only funds for facilities<br />
and equipment, but for knowledgeable staff<br />
who can both mediate between information<br />
available on <strong>the</strong> <strong>World</strong> Wide Web and local<br />
information needs and can teach local users<br />
ICT skills.<br />
Finally, <strong>the</strong>re is a great need for human capital<br />
investment in rural areas. Illiteracy rates are<br />
high in rural communities and adult education<br />
programmes must be increased if information<br />
services are to contribute to improved<br />
farm practices and productivity. Investments<br />
are also needed in rural primary and secondary<br />
education. Beyond universal attendance,<br />
<strong>the</strong> quality of educational services must be<br />
improved so that students<br />
leave school<br />
with <strong>the</strong> skills <strong>the</strong>y<br />
need to contribute to<br />
social and economic<br />
development.<br />
and when people have <strong>the</strong> knowledge to<br />
apply this information. All of <strong>the</strong>se factors<br />
are essential. Information, communication,<br />
technology and education must be viewed<br />
as a system in which <strong>the</strong> components work<br />
toge<strong>the</strong>r to support development. <br />
<strong>Connect</strong>-<strong>World</strong> is<br />
celebrating its 10th year<br />
anniversary<br />
Through <strong>the</strong> years, <strong>Connect</strong>-<br />
<strong>World</strong>’s authors told of <strong>the</strong> rise<br />
of mobile, of fibre, of wireless<br />
and of broadband; <strong>the</strong>y told of<br />
<strong>the</strong> dot.com meltdown, of<br />
digital inclusion and convergence,<br />
of standards and breakthroughs,<br />
<strong>the</strong> rise of IP and<br />
<strong>the</strong> fall of switching and of <strong>the</strong><br />
regulatory turnaround.<br />
In every issue of <strong>Connect</strong>-<strong>World</strong><br />
heads of state, ministers and<br />
regulators, heads of<br />
international institutions and<br />
leaders of industry speak of<br />
what <strong>the</strong> ICT revolution, as it<br />
happens, means to <strong>the</strong> people<br />
in <strong>the</strong>ir regions of <strong>the</strong> world.<br />
www.connect-world.com<br />
Technology alone will<br />
not change conditions<br />
in Africa, nor will information<br />
by itself.<br />
Change will come in<br />
Africa when information<br />
is communicated<br />
in a usable form to<br />
<strong>the</strong> people that need<br />
it, at a time and in a<br />
form that is needed,<br />
Issue 2006 13
Convergent Billing<br />
Converged billing - enabling African mobile<br />
by Birger Thorburn, CTO, Converged Billing Solutions Group,<br />
Comverse EMEA<br />
Mobile communications are economically connecting regions of <strong>the</strong> world, which until recently,<br />
were both practically and financially impossible to serve. Cheaper phones and less expensive<br />
wireless networks are crucial, but billing systems that let operators charge for, control<br />
usage and earn a profit are equally important. Convergent billing systems, which combine <strong>the</strong><br />
control of prepaid billing with <strong>the</strong> flexibility and range of services of post-paid, will contribute<br />
greatly to <strong>the</strong> growth of telephony, and of <strong>the</strong> local economy, in Africa.<br />
Birger Thorburn is <strong>the</strong> Chief Technology Officer for Comverseʼs Converged Billing Solutions Group in <strong>the</strong> EMEA - Europe Middle East &<br />
Africa – region. Mr Birger joined Comverse Kenan Billing Solutions, previously CSG Systems, as <strong>the</strong> regional Chief Technology Officer<br />
for <strong>the</strong> Caribbean and Latin American Region. Prior to CSG, Mr Birger obtained in-depth industry experience by working with some of<br />
<strong>the</strong> worldʼs largest wireline and wireless service providers in Europe and Latin America as a project director under Kenan Systems and<br />
Lucent Technologies. During this time, he led project teams through complex technology integration projects in order to help prepare<br />
customers as <strong>the</strong>y moved to 3G networks, and consolidate <strong>the</strong>ir multiple billing systems to a standard platform. In addition, he worked<br />
in several systems architect and engineering roles across Europe.<br />
There is no doubt that Africa has rapidly become<br />
one of <strong>the</strong> most important growth markets<br />
in GSM mobile communications outside<br />
of Europe. Since <strong>the</strong> introduction of services<br />
in April 1994, a staggering 16 million African<br />
subscribers have joined <strong>the</strong> mobile world. Now,<br />
this market is undergoing ano<strong>the</strong>r tremendous<br />
economic revolution. Fuelled by ever-increasing<br />
interest in Africa from overseas multi-national<br />
businesses, new investment is entering<br />
<strong>the</strong> region, bringing with it new connectivity<br />
demands, such as faster Internet connectivity,<br />
that new technologies such as mobile broadband<br />
and WiMAX can bring. These, in turn,<br />
are generating new revenue opportunities for<br />
local communications operators. In order for<br />
operators to capture this moment of revenue<br />
opportunity, <strong>the</strong>y must first provide <strong>the</strong>se international<br />
businesses with <strong>the</strong> range of services<br />
<strong>the</strong>y require to effectively ʻdo businessʼ.<br />
However, businesses need much more than<br />
voice and data; <strong>the</strong>y require real-time customer<br />
management and financial control, as well,<br />
to ensure costs are brought in line with value.<br />
With <strong>the</strong> increase in economic incentives to<br />
invest in Africa, businesses are demanding <strong>the</strong><br />
same level of communications <strong>the</strong>y experience<br />
in <strong>the</strong>ir home countries where fixed, wireless<br />
and IP communications are now abundantly<br />
available and have become <strong>the</strong> norm. Offering<br />
quality voice and data services will provide<br />
African countries with an important advantage<br />
in <strong>the</strong>ir quest to capture and maintain international<br />
business markets - a primary driver of<br />
economic growth. Operators must rise to <strong>the</strong><br />
challenge of serving <strong>the</strong>se business customers<br />
and, <strong>the</strong>reby, play a key role by helping<br />
<strong>the</strong>ir countries reap <strong>the</strong> financial and growth<br />
rewards of <strong>the</strong> ʻAfrican Centuryʼ.<br />
African needs<br />
As a result of Africaʼs unique topography, with<br />
its remote open spaces and emerging megacities,<br />
mobile communications in <strong>the</strong> form of<br />
2.5G and 3G services seem <strong>the</strong> only means to<br />
provide <strong>the</strong> needed communications services<br />
for enterprise customers. Currently, fixed networks<br />
are impractical, or too expensive, to<br />
provide <strong>the</strong> coverage and flexible installation<br />
capabilities that businesses require.<br />
Mobile, with its promise of higher network<br />
speeds and mobile broadband capability offers<br />
<strong>the</strong> ideal solution for <strong>the</strong>se new business<br />
customers - high-quality Internet access for remote<br />
workers. For operators in Africa to <strong>make</strong><br />
mobile broadband a success, and profitable,<br />
<strong>the</strong>y must concentrate <strong>the</strong>ir efforts on creating<br />
a compelling customer experience, deliver<br />
appealing services, maintain high quality standards,<br />
treat all consumers as individuals, offer<br />
competitive prices and, most importantly,<br />
<strong>make</strong> paying for and using <strong>the</strong>se high-speed<br />
mobile communications as simple as possible.<br />
Africaʼs unique economic environment places<br />
fur<strong>the</strong>r demands on operators serving businesses.<br />
Like all businesses worldwide, companies<br />
in Africa need credit to smooth <strong>the</strong>ir cash<br />
flows - to match <strong>the</strong> timing of <strong>the</strong>ir revenues<br />
to <strong>the</strong> due dates of <strong>the</strong>ir accounts payable. Yet<br />
in Africa, with its still developing capital markets,<br />
businesses must rely on suppliers, not<br />
banks, to extend credit. Counter-intuitively,<br />
in a continent perceived as purely prepaid, <strong>the</strong><br />
post-paid business model is more important in<br />
Africa - not less! Never<strong>the</strong>less, given <strong>the</strong> precariousness<br />
of cash flows, businesses also demand<br />
tighter real-time financial controls over<br />
expenditure. Moreover, in a market where mobile<br />
handsets are purchased at a premium, and<br />
where employees rely on <strong>the</strong>ir employers for<br />
handsets, operators need to have <strong>the</strong> ability to<br />
offer both professional and personal payment<br />
profiles on one phone to enable dual usage and<br />
payment.<br />
Capturing <strong>the</strong> opportunity<br />
Rethinking <strong>the</strong>ir back-office billing solutions<br />
in order to address <strong>the</strong> needs of business customers<br />
is a new challenge for African operators,<br />
who have traditionally viewed billing and<br />
customer care solutions as secondary to network<br />
coverage and reliability. Many post-paid<br />
billing and customer care systems currently<br />
in use were originally bundled with <strong>the</strong> sale<br />
of <strong>the</strong> initial communications network equipment.<br />
While in <strong>the</strong> past this was sufficient for<br />
14 Issue 2006
She’s not a difficult customer. She just wants <strong>the</strong> latest services,<br />
great prices and no hassle.<br />
Trust Intec to help.<br />
Customers aren’t easy to please. They want <strong>the</strong> latest<br />
communications services, and <strong>the</strong>y want <strong>the</strong>m now. It’s up to<br />
you to provide <strong>the</strong>m. It’s up to us to help you.<br />
Intec helps 500 carriers worldwide deliver <strong>the</strong> high performance<br />
services <strong>the</strong>ir customers demand, like IPTV, music downloads,<br />
bandwidth on demand, mobile Internet and VoIP. Backed by <strong>the</strong><br />
technical expertise of over 1,000 professionals, and partnerships with<br />
<strong>the</strong> world’s best system integrators, we build our BSS/OSS solutions to<br />
deliver <strong>the</strong> real-time, high-volume performance services you need to<br />
meet <strong>the</strong> demands of your toughest customers.<br />
Find out more at www.intecbilling.com, or email us at<br />
info@intecbilling.com
Convergent Billing<br />
low subscriber penetration, with <strong>the</strong> influx of<br />
new business revenue on <strong>the</strong> horizon, <strong>the</strong> mantra<br />
of ʻlow functionality customized systems<br />
for small operatorsʼ is no longer relevant. Now<br />
many operators are facing <strong>the</strong> ultimate threat -<br />
<strong>the</strong>ir first generation billing and customer care<br />
systems are collapsing under <strong>the</strong> pressure of<br />
<strong>the</strong> rapidly growing business sector.<br />
Indeed, African operators have less tolerance<br />
for lost revenue and are less forgiving of excessive<br />
total cost of ownership, TCO. They<br />
may, operationally, require less ʻmoving partsʼ<br />
within <strong>the</strong>ir solutions and many of <strong>the</strong>m are<br />
too remote for generic off-site hand holding,<br />
but African operators are no longer small and<br />
inexperienced compared to <strong>the</strong>ir Western European<br />
counterparts. They are, in fact, learning<br />
through <strong>the</strong> mistakes made by <strong>the</strong>ir European<br />
counterparts in <strong>the</strong> past. African operators are<br />
now looking towards new carrier grade billing<br />
and customer care architectures to equip <strong>the</strong>m<br />
for future growth. Ultimately, <strong>the</strong>y have <strong>the</strong><br />
highest demand in <strong>the</strong> market for systems that<br />
support businesses out-of-<strong>the</strong>-box, and <strong>right</strong>ly<br />
insist that <strong>the</strong>se solutions be proven using ʻtier<br />
oneʼ operator standards.<br />
Prepaid, post-paid… or convergent<br />
Choosing <strong>the</strong> <strong>right</strong> billing system to operate<br />
efficiently in this market is an important consideration.<br />
The situation <strong>the</strong> African communications<br />
market faces is quite different than that<br />
seen in more developed regions of <strong>the</strong> world.<br />
Local operators currently experience two opposing<br />
pressures. First, African economies are<br />
overwhelmingly cash-based. Consumers have<br />
few, if any, options - credit cards or cheques,<br />
for example - available to <strong>the</strong>m. Second, since<br />
<strong>the</strong> rollout of mobile services is relatively<br />
more expensive in Africa, <strong>the</strong>re is great pressure<br />
upon operating company margins.<br />
Given <strong>the</strong> lack of communication alternatives<br />
within Africa, international businesses are<br />
willing to pay a premium to those local operators<br />
that are able to rise to <strong>the</strong> challenge and<br />
provide a good range of high-quality communications<br />
services.<br />
Never<strong>the</strong>less, we must not forget that local African<br />
businesses also need <strong>the</strong> same or, indeed<br />
more, flexibility in <strong>the</strong>ir payment methods,<br />
enabling <strong>the</strong>m to compete more effectively<br />
within limited credit markets, and still grow<br />
to meet <strong>the</strong> exploding demands of <strong>the</strong> African<br />
market. Previously, post-paid credit was discouraged<br />
as operators could not afford to bear<br />
<strong>the</strong> financial risks involved in <strong>the</strong> case of nonpayment,<br />
and business users could not afford<br />
<strong>the</strong> risk of excessive utilisation.<br />
Given <strong>the</strong> need in Africa for high levels of cash<br />
control, a pure post-paid billing solution, without<br />
real-time credit control, is not, on its own,<br />
economically feasible. The financial gains<br />
- <strong>the</strong> additional revenues that may be generated<br />
- of attracting international businesses are<br />
often outweighed by <strong>the</strong> risks that must be assumed<br />
to do so. However, combining <strong>the</strong> flexibility<br />
of <strong>the</strong> extended credit characteristics<br />
of post-paid offerings with <strong>the</strong> strict real-time<br />
credit controls that apply typically to pure prepaid<br />
payment methods creates an ideal billing<br />
model. The result, convergent billing, is a solution<br />
that combines both prepaid control with<br />
post-paid flexibility and credit - suitable for<br />
<strong>the</strong> African reality.<br />
Real-time customer management<br />
A convergent billing system that supports both<br />
prepaid and post-paid methods, offers African<br />
operators <strong>the</strong> best of both worlds. Convergent<br />
billing enables operators to maintain <strong>the</strong>ir existing<br />
base of local prepaid customers and, as<br />
well, attract and serve multi-national and local<br />
business customers.<br />
However, <strong>the</strong> functionality of <strong>the</strong> convergent<br />
billing system involves much more than just<br />
combining different payment methods. The<br />
real-time nature of <strong>the</strong> platform opens up a<br />
wealth of new value-added financial services<br />
that can assist business customers to not only<br />
control, but also leverage, <strong>the</strong>ir budgets and<br />
spending. With both prepaid and post-paid<br />
balances available on <strong>the</strong> same account, operators<br />
can let <strong>the</strong>ir customers select how <strong>the</strong>y<br />
pay - transaction by transaction. This enables<br />
completely predictable, controllable, monthly<br />
payments with <strong>the</strong> flexibility to top-up credit<br />
limits as and when increased communications<br />
needs so require. This control also offers invaluable<br />
security by protecting against unauthorised<br />
use where fraud is an undeniable<br />
temptation.<br />
This unique flexibility of <strong>the</strong> convergent system<br />
also offers <strong>the</strong> ability to have multiple<br />
personal profiles on a single mobile device.<br />
This is particularly important within <strong>the</strong> African<br />
market, where mobile handsets are a<br />
valuable commodity. Convergent payment<br />
options enable employees to <strong>make</strong> calls to <strong>the</strong><br />
office, customers or suppliers, for example, on<br />
<strong>the</strong> companyʼs bill, but use <strong>the</strong> same phone to<br />
<strong>make</strong> evening calls charged against <strong>the</strong>ir own<br />
prepaid balance.<br />
Embracing <strong>the</strong> convergent future<br />
Unprecedented profits potentially await local<br />
operators in Africa who actively embrace <strong>the</strong><br />
new opportunities presented by <strong>the</strong> influx of<br />
international direct investment. Those who<br />
prepare in advance, and deliver <strong>the</strong> valuable<br />
mobile communications and payment methods<br />
<strong>the</strong>se sophisticated businesses require, will be<br />
<strong>the</strong> ones to succeed.<br />
Mobile broadband with <strong>the</strong> ability to deliver<br />
high speeds and instant access can provide <strong>the</strong><br />
crucial communications channel required to<br />
attract and satisfy overseas investment. However,<br />
this exciting new mobile technology must<br />
be underpinned by robust back office functions<br />
in order for its delivery to be a success.<br />
Operators must look towards billing solutions<br />
that promote business growth via convergent<br />
financial functionality that offers a variety<br />
of payment methods - including variations<br />
and combinations of traditional prepaid and<br />
post-paid schemes - multiple user profiles,<br />
and charging flexibility. Convergent billing,<br />
which combines <strong>the</strong> strength of prepaidʼs realtime<br />
controls with <strong>the</strong> flexibility and service<br />
options of post-paid payment methods, holds<br />
<strong>the</strong> key to unlock an important new revenue<br />
stream. Convergent billing systems will help<br />
mobile operators contribute to <strong>the</strong> continentʼs<br />
enormous economic potential during <strong>the</strong> ʻAfrican<br />
Centuryʼ. <br />
16 Issue 2006
Broadband Deployment<br />
Closing <strong>the</strong> digital gap<br />
by Ruediger Muehlhausen, VP, Group Messages and<br />
PR at Siemens Communications<br />
In Africa, broadband is a pre-requisite for both economic growth and <strong>the</strong> delivery of social services<br />
such as telemedicine, distance learning, higher education and <strong>the</strong> like. Few service providers,<br />
however, can afford <strong>the</strong> investment or have <strong>the</strong> expertise to implement broadband. In<br />
Africa, a Build, Operate and Transfer strategy for broadband deployment, where a technology<br />
partner takes responsibility for commissioning and operating <strong>the</strong> new network, while training<br />
local employees to take over, can provide <strong>the</strong> essential financing and know-how.<br />
Ruediger Muehlhausen is <strong>the</strong> VP for Group Messages and PR at <strong>the</strong> global headquarters of Siemens Communications in Munich. Mr<br />
Muehlhausen, during his 16 yearsʼ experience in <strong>the</strong> computing and telecommunications business, has held various positions within<br />
Siemens and Siemens Nixdorf.<br />
Mr Muehlhausen graduated from <strong>the</strong> University of Hildesheim in Technical Translation, and in Business Administration at <strong>the</strong> VWA<br />
in Munich.<br />
The emergence of broadband has created a<br />
global revolution in communications - an unprecedented<br />
resource for sharing information,<br />
wildly popular ʻrich mediaʼ entertainment, and<br />
valuable new markets for countless products<br />
and services. Still, <strong>the</strong> benefits of broadband<br />
are not distributed equally. The disparity between<br />
developed and developing countries is<br />
huge and continues to grow. How do we close<br />
it How do we <strong>make</strong> broadband affordable and<br />
widely available, so that people everywhere<br />
can take advantage of its benefits<br />
More importantly, how can we in <strong>the</strong> technology<br />
sector help carriers and operators in Africa<br />
<strong>make</strong> <strong>the</strong> transition to broadband a success In<br />
addition to solving technical challenges, this<br />
means providing a solution that a growing<br />
number of users will embrace. It also means<br />
a solution that is self-sustaining, so it continues<br />
to fulfil its promise long after our work is<br />
done. This article examines one approach that<br />
addresses <strong>the</strong>se issues, and has been shown to<br />
do it successfully.<br />
In <strong>the</strong> developing world, broadband is not<br />
just a delivery mechanism for online games,<br />
music and streaming videos. There is more<br />
at stake, and <strong>the</strong>refore technology providers<br />
have to work more creatively to <strong>make</strong> it succeed.<br />
Broadband <strong>make</strong>s an impact for reasons<br />
not normally seen where communications<br />
are pervasive and services, such as education<br />
and healthcare are widely available. One example<br />
is telemedicine, with rural doctors able<br />
to transmit x-rays and consult with experts<br />
worldwide for a diagnosis and treatment plan.<br />
Ano<strong>the</strong>r is higher education, where students<br />
can use video-telephony to communicate with<br />
instructors while fast Internet access brings<br />
<strong>the</strong> worldʼs information resources within easy<br />
reach.<br />
Broadband also connects people to <strong>the</strong> rest of<br />
<strong>the</strong> world in ways that people from developed<br />
countries may not realise. In Africa, <strong>the</strong> largest<br />
market for broadband users is <strong>the</strong> Internet cafe,<br />
providing a connection to <strong>the</strong> online world for<br />
those who o<strong>the</strong>rwise could not afford it. The<br />
web café is not just a place for surfing and online<br />
games - it might be <strong>the</strong> only place in a<br />
neighbourhood or village to send and receive<br />
email, or speak with loved ones overseas using<br />
VoIP for low-cost international calling. It also<br />
provides web access for small businesses that<br />
would o<strong>the</strong>rwise not be able to afford it - that<br />
might not even have a PC - providing a vital<br />
connection with <strong>the</strong> global economy.<br />
“Carriers are understandably<br />
cautious about making major<br />
investments - especially when<br />
a proposed project is being<br />
done for <strong>the</strong> first time in <strong>the</strong>ir<br />
region.”<br />
Despite <strong>the</strong>se vital benefits, a decision to<br />
deploy broadband still comes down to economics.<br />
For telecom companies and network<br />
operators, broadband is a major financial commitment.<br />
Carriers are understandably cautious<br />
about making major investments - especially<br />
when a proposed project is being done for <strong>the</strong><br />
first time in <strong>the</strong>ir region. They cannot afford to<br />
raise <strong>the</strong> capital required to bring new services<br />
to market, and <strong>the</strong>n wait patiently for profits<br />
to come in. Sometimes governments provide<br />
backing, but <strong>the</strong>y have many critical priorities<br />
in addition to broadband infrastructure.<br />
To justify <strong>the</strong> investment, positive cash flow is<br />
needed as soon as possible - and this requires<br />
flexible approaches that limit risks and allow<br />
fast profitability.<br />
A formula for success in Ghana<br />
One approach that has worked in Africa is to<br />
set up a Build, Operate and Transfer, BTO<br />
strategy for broadband deployment. With this<br />
model, <strong>the</strong> technology partner takes responsibility<br />
for commissioning and operating <strong>the</strong><br />
new network while training local employees<br />
to take over day-to-day operations. Instead<br />
of simply proposing hardware and software,<br />
BTO provides a trajectory that gets <strong>the</strong> new<br />
service to market as quickly as possible while<br />
at <strong>the</strong> same time reducing costs. The trajectory<br />
not only includes <strong>the</strong> infrastructure but also all<br />
professional services necessary to realise profits<br />
as soon as possible.<br />
Issue 2006 17
Broadband Deployment<br />
In addition to delivering broadband directly<br />
to consumers and enterprises, <strong>the</strong> carrier is<br />
also making bandwidth available to Internet<br />
service providers<br />
The BTO formula was used to good effect in<br />
Ghana, when a national carrier recently set out<br />
to build a fast Internet access network. Even<br />
though Ghana is one of <strong>the</strong> most stable and<br />
most developed countries in Africa, with intensive<br />
commercial activity, few companies,<br />
hotels or private individuals have fast or reliable<br />
Internet access. Even most Internet cafés<br />
have poor service, many still operating using<br />
dial-up lines.<br />
Like <strong>the</strong>ir counterparts in o<strong>the</strong>r regions, <strong>the</strong><br />
carrier was well aware of <strong>the</strong> importance of<br />
providing high-quality Internet service, but<br />
was unsure about how to proceed. They knew<br />
that ADSL and broadband Internet had great<br />
revenue potential, but were uncertain about<br />
<strong>the</strong> best way to bring it to market. In addition<br />
to what technology to use, <strong>the</strong>y were uncertain<br />
about issues like rollout timing, pricing structure,<br />
marketing strategy and a host of o<strong>the</strong>r<br />
questions as well.<br />
To bring its vision to life, <strong>the</strong> carrier adopted<br />
<strong>the</strong> Build-Operate-Transfer strategy, contracting<br />
with a global vendor to not only build <strong>the</strong><br />
infrastructure, but also run it while training<br />
<strong>the</strong>ir own staff until <strong>the</strong>y were able to take<br />
control. The fact that <strong>the</strong> partner was capable<br />
of proposing an integrated turnkey solution, as<br />
well as implementing it completely, had a vast<br />
impact on <strong>the</strong> carrierʼs final decision. The vendor<br />
delivered all services required to prepare<br />
<strong>the</strong> carrier for a massive rollout - from <strong>the</strong> initial<br />
market survey to cost/benefit analysis, solution<br />
design, marketing strategy, equipment<br />
installation, training and initial maintenance.<br />
There is yet ano<strong>the</strong>r advantage of working<br />
with an established global partner - access<br />
to financing at favourable terms. The Ghana<br />
operator now benefits from an attractive longterm<br />
financing package that helps ensure a<br />
positive cash flow.<br />
What is important to customers<br />
The fruit of interactive sessions between <strong>the</strong><br />
carrier and its vendor partner was a promising<br />
business case for introducing high-speed<br />
Internet service on a large scale. Before recommending<br />
equipment or a deployment strategy,<br />
<strong>the</strong> vendor prescribed a market survey<br />
of potential customers to address important<br />
questions like: How much are people prepared<br />
to pay Which features and benefits do <strong>the</strong>y<br />
understand Which features and benefits are<br />
important to <strong>the</strong>m<br />
The study found that people were less interested<br />
in speed than quality service and reliability.<br />
This was true for both business and<br />
residential users, and both groups were willing<br />
to pay a price for it. Existing dial up as well as<br />
broadband offerings in Ghana were characterized<br />
by slow access, frequent downtime and<br />
poor quality - as well as high prices. The new<br />
offering would set a higher standard of quality<br />
for broadband access, and serve as a model<br />
for o<strong>the</strong>r broadband suppliers to follow in <strong>the</strong><br />
future. At <strong>the</strong> same time, attractive pricing arrangements<br />
aimed at schools and Internet cafes<br />
would bring broadband to people who would<br />
o<strong>the</strong>rwise not have access to it.<br />
Step by step to network profits<br />
Ra<strong>the</strong>r than deploy <strong>the</strong> entire network at once,<br />
a phased implementation spread <strong>the</strong> carrierʼs<br />
investment over time while capturing revenue<br />
as early in <strong>the</strong> rollout as possible. This included<br />
capturing revenue as an ISP as well as offering<br />
bandwidth to o<strong>the</strong>r ISPs. The nationwide rollout<br />
is occurring in stages that focus on areas<br />
of highest revenue potential before moving to<br />
smaller markets across <strong>the</strong> country.<br />
The initial test phase involved connecting<br />
<strong>the</strong> first DSLAM-site, Digital Subscriber Line<br />
Access Multiplexer, located in <strong>the</strong> nor<strong>the</strong>rn<br />
part of <strong>the</strong> capital Accra, to serve about 1500<br />
initial ADSL subscribers. During this phase,<br />
o<strong>the</strong>r core equipment was installed such as <strong>the</strong><br />
broadband remote access server, BRAS, <strong>the</strong><br />
ISP infrastructure and <strong>the</strong> element managers.<br />
In <strong>the</strong> second phase, three additional<br />
DSLAM sites were rolled out in central Accra,<br />
Accra Cantonments and in <strong>the</strong> seaport of<br />
Tema. Five remote cabinets serve VIP users<br />
such as <strong>the</strong> presidential palace, <strong>the</strong> ministries<br />
and <strong>the</strong> airport.<br />
In <strong>the</strong> main rollout phase, additional<br />
DSLAM locations were implemented in o<strong>the</strong>r<br />
areas across Accra. During this time, <strong>the</strong> carrier<br />
also took over network management.<br />
Demand for broadband service in Accra has<br />
grown since <strong>the</strong> rollout began, to <strong>the</strong> point<br />
where additional DSLAMs are now needed.<br />
Rollout in major cities across <strong>the</strong> country is<br />
coming next.<br />
To <strong>make</strong> <strong>the</strong> ʻtransferʼ element of <strong>the</strong> project<br />
a reality, one very important ingredient was<br />
hands-on training for <strong>the</strong> carrierʼs engineers,<br />
which allowed <strong>the</strong>m to take over network operations<br />
during <strong>the</strong> main rollout stage. In addition<br />
to training in technical operations, training<br />
was also provided to sales and marketing<br />
staff responsible for launching and promoting<br />
<strong>the</strong> new richer data services. This specialized<br />
marketing training would turn out to be crucial<br />
for maximizing potential revenues.<br />
The carrier is now addressing Ghanaʼs demand<br />
for fast Internet <strong>connections</strong> by preparing to<br />
supply reliable ADSL services countrywide.<br />
Over 20,000 installations are planned during<br />
<strong>the</strong> next three years, along with corporate services<br />
such as virtual private networks, VPNs,<br />
that provide secure, guaranteed bandwidth.<br />
In addition to delivering broadband directly<br />
to consumers and enterprises, <strong>the</strong> carrier is<br />
also making bandwidth available to Internet<br />
service providers. This not only creates an additional<br />
revenue stream for <strong>the</strong> carrier, it also<br />
creates a ripple effect of new opportunities for<br />
Internet-based businesses. At least one ISP in<br />
Accra is already offering ADSL service to its<br />
own customers.<br />
Fulfilling <strong>the</strong> promise<br />
As <strong>the</strong> Ghana story illustrates, a successful<br />
broadband rollout is about much more than<br />
technology innovation and integration. It is<br />
about brainstorming with <strong>the</strong> client to identify<br />
opportunities and design a marketing strategy<br />
to fit <strong>the</strong> local culture and business environment.<br />
It is about bringing <strong>the</strong> <strong>right</strong> product to<br />
market, with a deployment strategy designed<br />
to generate revenues as early in <strong>the</strong> rollout<br />
as possible. In some cases, it could even be<br />
about creative financing to ensure a positive<br />
cash flow. Most importantly, it is about building<br />
a healthy dialogue with <strong>the</strong> client, so that<br />
when <strong>the</strong> project is done, <strong>the</strong>y are ready to take<br />
over.<br />
In Africa, as in <strong>the</strong> rest of <strong>the</strong> developing<br />
world, deploying broadband means overcoming<br />
a variety of challenges, from lack of infrastructure<br />
to limited disposable income on <strong>the</strong><br />
part of consumers. The BTO formula has been<br />
shown to work effectively in this demanding<br />
environment, providing a rewarding transition<br />
for operators and bringing <strong>the</strong> promise of<br />
broadband to life. <br />
18 Issue 2006
<strong>Connect</strong>ing<br />
<strong>the</strong> unconnected<br />
by 2015...<br />
<strong>Connect</strong>ing <strong>the</strong> unconnected by 2015 was one of<br />
<strong>the</strong> key challenges embraced by world leaders<br />
at <strong>the</strong> <strong>World</strong> Summit on <strong>the</strong> Information Society<br />
(WSIS).<br />
It is a major task, but one that can be achieved if we<br />
all contribute our unique expertise and resources.<br />
Toge<strong>the</strong>r, governments, <strong>the</strong> private sector, civil<br />
society and international organizations can use<br />
<strong>the</strong> benefits of information and communication<br />
technologies to improve health and education,<br />
boost economic opportunity and enhance cultural<br />
and linguistic diversity.<br />
Join <strong>the</strong> growing number of organizations that<br />
have become partners to <strong>Connect</strong> <strong>the</strong> <strong>World</strong>, a<br />
global initiative launched by <strong>the</strong> International<br />
Telecommunication Union and o<strong>the</strong>r committed<br />
stakeholders.<br />
Viviane Reding, EU Commissioner<br />
for Information Society and Media <br />
www.itu.int/partners<br />
CONNECT<br />
THE WORLD
Saved 1
Digital Divide<br />
Bridging new digital divides<br />
by Jean-Hervé Jenn, President, International,<br />
Convergys Corporation<br />
The world increasingly relies upon broadband for <strong>the</strong> voice data and video services that sustain<br />
<strong>the</strong> economy and drive growth. Without broadband, countries are doomed to play a secondary<br />
role in <strong>the</strong> emerging information society and global economy. Although, in recent years, great<br />
strides have been made liberalising <strong>the</strong> communications infrastructure and providing modern,<br />
competitive communications services in African and Middle Eastern countries, <strong>the</strong> penetration<br />
of <strong>the</strong>se services <strong>the</strong>re is still quite low compared to <strong>the</strong> worldʼs more developed regions.<br />
Jean-Hervé Jenn is <strong>the</strong> President, International, of Convergys Corporation. He is responsible for <strong>the</strong> company in Europe, <strong>the</strong> Middle East,<br />
Africa (EMEA), Asia Pacific and South America. Before <strong>the</strong> expansion of his role, Mr Jenn served as <strong>the</strong> President, EMEA, for Convergysʼ<br />
Information Management Group (IMG). Prior to joining Convergys, Mr Jenn led a team at Goldman-Sachs responsible for all of <strong>the</strong> firmʼs<br />
strategic dialogues with large corporate, institutional and government clients. Jean-Hervé Jenn served previously as head of <strong>the</strong> European<br />
Information, Telecommunication and Entertainment practice for KPMG and was a co-founder of KPMG Ventures. He is a member of <strong>the</strong><br />
Institute of Chartered Accountants of England and a trade representative to <strong>the</strong> Financial Services Authority.<br />
Jean-Hervé Jenn earned Masterʼs Degrees in science from Ecole Spéciale des Travaux Publics, Paris, and in management, from <strong>the</strong> University<br />
of California, Los Angeles. He also completed <strong>the</strong> Executive Management Program at INSEAD, France.<br />
The Internetʼs promise of being <strong>the</strong> great economic<br />
equalizer has never been so near at<br />
hand. Never<strong>the</strong>less, it remains out of reach<br />
for <strong>the</strong> majority of developing countries. The<br />
worldʼs leading economies now rely heavily<br />
on broadband technologies to underpin<br />
cheaper and faster Internet <strong>connections</strong> and<br />
offer a growing range of communications services<br />
that enable e-commerce, e-government<br />
and e-education. Commercial imperatives now<br />
drive <strong>the</strong> development of a new generation of<br />
converged services, combining media content<br />
and communications services, and ensure <strong>the</strong><br />
widespread availability of broadband <strong>connections</strong>.<br />
Those economies that fail to harness adequately<br />
such commercial forces risk being<br />
left behind.<br />
The term ʻdigital divideʼ, coined more than<br />
ten years ago, refers to <strong>the</strong> gap between those<br />
communities, populations and countries with<br />
access to technology and those without. The<br />
benchmarking standards used to monitor <strong>the</strong><br />
technological progress of nations and regions<br />
with reference to <strong>the</strong> digital divide included<br />
access to telephone services, to personal computers<br />
and to Internet access relative to total<br />
populations. Despite great strides forward<br />
made by public and commercial initiatives to<br />
<strong>make</strong> <strong>the</strong>se technologies more widely available,<br />
and <strong>the</strong>reby reduce <strong>the</strong> gap, <strong>the</strong> prospect<br />
of a widening digital divide remains a very<br />
real one. As leading economies seek to capitalise<br />
on <strong>the</strong> latest wave of digital opportunities,<br />
new benchmarks that track progress in<br />
areas like broadband penetration, VoIP traffic<br />
and <strong>the</strong> availability of ʻmultiplayʼ – triple play<br />
and quadruple play - services are becoming<br />
increasingly significant. Triple play includes<br />
voice, video and data services; quadruple play<br />
adds mobile access to <strong>the</strong> package.<br />
Traditionally, <strong>the</strong> comparison between <strong>the</strong><br />
ʻhavesʼ and <strong>the</strong> ʻhave-notsʼ was between unconnected<br />
areas with limited telephony and no<br />
Internet access, versus communities that had<br />
ubiquitous telephony and high levels of Internet<br />
access. However, today, even some of<br />
<strong>the</strong> most remote areas in <strong>the</strong> world can boast<br />
some level of connectivity - even if only found<br />
in community access centres or as dedicated<br />
Internet access provided for medical or educational<br />
use.<br />
Egyptʼs free Internet initiative has helped increase<br />
its Internet usage from just 600,000 people<br />
in 2001 to more than five million people in<br />
2005. While this <strong>make</strong>s Egypt <strong>the</strong> largest Internet<br />
market in Africa, it only represents a seven<br />
per cent penetration rate in a population of 71<br />
million. This said, Egyptʼs Technology Access<br />
Community Centre programme, TACCs,<br />
established in 1999 and jointly funded by <strong>the</strong><br />
United Nations Development Programme,<br />
UNDP, has enabled community Internet access<br />
in hundreds of towns, villages and rural<br />
areas throughout <strong>the</strong> country. This means that<br />
actual access rates are higher than <strong>the</strong> subscriber<br />
statistics reflect. Despite <strong>the</strong> progress<br />
in both overall subscriber numbers and rural<br />
Internet access, broadband access, with only<br />
about 100,000 subscribers, remains low.<br />
Now let us compare <strong>the</strong> Egyptian situation<br />
with that in Europe. Forrester Research predicts<br />
that 41 per cent of all Internet-connected<br />
households in Western Europe will have<br />
broadband access by 2010. According to <strong>the</strong><br />
OECD, <strong>the</strong> pace of broadband access is increasing<br />
amongst member countries such as<br />
The Ne<strong>the</strong>rlands, Denmark, Korea and Iceland,<br />
all of which now have more than 25<br />
broadband lines per 100 people (OECD Statistics,<br />
December 2005). Forrester expects that in<br />
<strong>the</strong> Ne<strong>the</strong>rlands, this figure will rise to 54 per<br />
cent by 2010, and that <strong>the</strong>re will be 71 million<br />
European broadband users by <strong>the</strong> same date.<br />
For todayʼs economists and statisticians, one<br />
of <strong>the</strong> challenges will be how best to compare<br />
communities with access to converged multiplay<br />
service offerings such as broadband, IP<br />
telephony and interactive digital television, to<br />
regions that only have traditional telephony<br />
and Internet services - or just basic voice services.<br />
Like it or not, just as many countries<br />
“Despite great strides forward<br />
made by public and<br />
commercial initiatives to<br />
<strong>make</strong> <strong>the</strong>se technologies<br />
more widely available, and<br />
<strong>the</strong>reby reduce <strong>the</strong> gap, <strong>the</strong><br />
prospect of a widening<br />
digital divide remains a very<br />
real one.”<br />
Issue 2006 21
Where’s your next<br />
customer coming<br />
from in Africa<br />
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19-20th October
Digital Divide<br />
reach, or even exceed, <strong>the</strong>ir targets for Internet<br />
access and telephone services, economists<br />
will begin measuring <strong>the</strong>ir e-competitiveness<br />
based on broadband penetration and <strong>the</strong> ability<br />
to offer fully converged services.<br />
Unfortunately, <strong>the</strong> global model for telecom<br />
privatisation has tended to divide national<br />
communications assets by technology and<br />
geography, via licensing for specific communications<br />
services. Following <strong>the</strong> lead of <strong>the</strong><br />
USA and Europe, emerging markets have by<br />
and large privatised mobile services, Internet<br />
services, satellite services and wireline services<br />
in separate processes, sell-offs and competitive<br />
bids.<br />
In <strong>the</strong> Eighties and Nineties, this strategy had<br />
<strong>the</strong> desired effect in many Western markets of<br />
rapidly promoting growth in cellular and Internet<br />
subscribers - a trend mirrored during <strong>the</strong><br />
past ten years in <strong>the</strong> Middle East.<br />
Today, <strong>the</strong> lines between different services and<br />
technologies are increasingly blurred. Many<br />
international communications service providers<br />
have already embarked upon ambitious<br />
strategies to integrate services<br />
such as broadband, cellular and<br />
fixed-line telephony services to<br />
create new multiplay offerings.<br />
In Europe, this has already led to<br />
numerous new business partnerships,<br />
mergers and acquisitions<br />
by communication service providers<br />
that are strong in one or<br />
more service area, but recognise<br />
<strong>the</strong> need for additional capacity<br />
to offer subscribers fully converged<br />
multiplay services. In <strong>the</strong><br />
UK, NTL is set to acquire Virgin<br />
Mobile in order to offer integrated<br />
TV, broadband, telephony and<br />
mobile services under <strong>the</strong> same<br />
umbrella. NTL saw an opportunity<br />
to create a large, integrated<br />
communications company able<br />
to compete with both pay TV and<br />
telecom operators. Meanwhile,<br />
British Telecom - still <strong>the</strong> UKʼs<br />
largest telephony provider - is investing billions<br />
in upgrading its national network to provide<br />
triple-play services, including digital TV.<br />
The company has already signed deals with<br />
several global media companies to provide<br />
content for television services it will launch<br />
later this year.<br />
Some countries in <strong>the</strong> Middle East and Africa<br />
are now in danger of bogging down in <strong>the</strong><br />
middle ground. Having privatised systematically<br />
- and some would say wisely, given <strong>the</strong><br />
circumstances - often beginning with mobile<br />
and Internet services before deregulating <strong>the</strong><br />
wireline sector, some economies have effectively<br />
created fast-growing islands of communications<br />
services.<br />
Operators are empowered to drive <strong>the</strong>ir category,<br />
so long as <strong>the</strong> core benefit sought by <strong>the</strong>ir<br />
subscribers is a standalone communications<br />
service. Many operators are currently limited<br />
in <strong>the</strong>ir ability to provide multiplay services<br />
by <strong>the</strong>ir respective regulatory environments.<br />
If <strong>the</strong>se markets are to continue to close <strong>the</strong><br />
gap between <strong>the</strong>mselves and <strong>the</strong> global digital<br />
leaders, this must change soon.<br />
Jordan is perhaps <strong>the</strong> fur<strong>the</strong>st along <strong>the</strong> road to<br />
deregulation in <strong>the</strong> Arab world. Jordan is well<br />
positioned to reap <strong>the</strong> benefits of a competitive<br />
environment, which can drive <strong>the</strong> adoption of<br />
broadband and converged communications<br />
services. Based in firm economic principles,<br />
Jordan has liberalised incrementally. One of<br />
<strong>the</strong> most significant steps in <strong>the</strong> liberalisation<br />
process, however, occurred in 2005 when <strong>the</strong><br />
Kingdomʼs fixed-line services were opened to<br />
competition. This paved <strong>the</strong> way for <strong>the</strong> o<strong>the</strong>r<br />
26 telecom operators to offer a rich variety of<br />
multiplay services in Jordan, and <strong>the</strong> opportunity<br />
to create what could be <strong>the</strong> most competitive<br />
communications market in <strong>the</strong> Middle<br />
The term ʻdigital divideʼ, coined more than ten years ago, refers to <strong>the</strong><br />
gap between those communities, populations and countries with access to<br />
technology and those without.<br />
East. The incumbent operator, Jordan Telecom,<br />
as a result, has already embarked on an ambitious<br />
strategy to integrate its offerings and provide<br />
a broad range of multiplay services.<br />
In what seems to be a diametrically opposite<br />
approach, <strong>the</strong> State of Qatar maintains a monopoly<br />
in <strong>the</strong> telecommunications sector, but<br />
Qatarʼs national operator, Qtel, has pressed<br />
forward with its own business strategy to develop<br />
a sophisticated suite of converged services.<br />
Although broadband penetration is still<br />
relatively low at about 30,000 lines or 3.7<br />
per 100 people, Qtel has invested heavily in<br />
much of <strong>the</strong> underlying technology required<br />
to provide new multiplay services throughout<br />
<strong>the</strong> country. These include wireless local<br />
loop services, using broadband point-to-multipoint<br />
technology to provide telephone and<br />
broadband Internet services to areas outside<br />
Qtelʼs wired network. Qtel will introduce 3G<br />
and video streaming technologies later this<br />
year. Qtel was also one of <strong>the</strong> first operators<br />
in <strong>the</strong> world to implement a converged billing<br />
system for quad-play services, allowing it to<br />
unify billing for mobile, telephone, Internet<br />
and digital TV services, and easily integrate<br />
multi-service offerings.<br />
South Africa already boasts <strong>the</strong> African continentʼs<br />
most advanced network services, but<br />
<strong>the</strong> country had to wait until last year for <strong>the</strong><br />
first major steps towards full liberalisation,<br />
creating new licence categories, allowing <strong>the</strong><br />
use of VoIP and permitting fixed line competition<br />
for <strong>the</strong> first time. Competition has already<br />
had an impact in <strong>the</strong> broadband services market;<br />
broadband subscriber numbers grew from<br />
50,000 in February 2005 to about 200,000 currently.<br />
The country is now mulling a Convergence<br />
Bill to provide a regulatory framework<br />
for <strong>the</strong> telecommunications, broadcast and IT<br />
markets to compete openly in a<br />
fully converged services market.<br />
Many Middle Eastern and African<br />
countries have invested<br />
heavily in e-government and<br />
e-education systems to ensure<br />
future economic competitiveness,<br />
and are turning increasingly<br />
towards e-commerce. The<br />
greatest limiting factor to <strong>the</strong>ir<br />
e-competitiveness has been<br />
<strong>the</strong> number of citizens able<br />
to access <strong>the</strong> Internet. In <strong>the</strong><br />
Economist Intelligence Unitʼs<br />
2006 e-readiness rankings, <strong>the</strong><br />
Middle East and Africaʼs state<br />
of e-readiness ranks below that<br />
of North America, Western<br />
Europe, Asia-Pacific, Central<br />
and Eastern Europe and Latin<br />
America.<br />
In a world where broadband access, increasingly<br />
driven by multiplay services, is becoming<br />
a core requirement for e-competitiveness,<br />
emerging markets must ei<strong>the</strong>r put <strong>the</strong>mselves<br />
on <strong>the</strong> fast track to full liberalisation of <strong>the</strong>ir<br />
markets, or significantly change <strong>the</strong> agendas<br />
of <strong>the</strong> incumbent operators. Where regulatory<br />
environments foster and promote converged<br />
services markets, market forces will prove to<br />
be powerful allies in driving e-competitiveness<br />
goals. <br />
Issue 2006 23
3G Networks<br />
3G in <strong>the</strong> Kingdom and <strong>the</strong> Middle East<br />
by Saud Bin Majed Al-Daweesh, President,<br />
Saudi Telecom Company<br />
3G mobile networks are spreading throughout <strong>the</strong> Middle East. Several countries, including<br />
<strong>the</strong> Kingdom of Saudi Arabia and Bahrain, have already issued licences for 3G service providers.<br />
In Saudi Arabia, this will accelerate <strong>the</strong> Kingdomʼs connection to <strong>the</strong> Internet - a huge step<br />
forward. Although mobile services drive telecommunications growth in <strong>the</strong> region, <strong>the</strong>y have<br />
limited potential for future revenue growth. Operators look to <strong>the</strong> value-added services that 3G<br />
<strong>make</strong>s possible, such as MMS and e-commerce, to boost <strong>the</strong>ir revenues.<br />
Saud Bin Majed Al-Daweesh is <strong>the</strong> President of <strong>the</strong> Saudi Telecom Company (STC). Previously, Saud Bin Majed Al-Daweesh served in<br />
a number of executive positions, including as acting Vice President responsible for <strong>the</strong> companyʼs overall network operations, as Vice<br />
President for Customer Services and District Affairs, and as <strong>the</strong> President of Al-Jawal, <strong>the</strong> Mobile Business Unit of STC. In addition,<br />
he played an active role in <strong>the</strong> transformation and restructuring of STC, and was responsible for <strong>the</strong> creation of <strong>the</strong> ISP Business Unit<br />
(Saudinet), which introduced <strong>the</strong> Internet in <strong>the</strong> Kingdom of Saudi Arabia.<br />
Saud Bin Majed Al-Daweesh earned a Bachelorʼs Degree in Engineering at <strong>the</strong> University of Sou<strong>the</strong>rn California.<br />
You have seen <strong>the</strong> billboards and newspaper<br />
advertisements, heard <strong>the</strong> radio ads and read<br />
<strong>the</strong> articles, but why all this hype about 3G and<br />
what does it mean for our nation During <strong>the</strong><br />
past year, <strong>the</strong>re has been much excitement and<br />
press coverage given to <strong>the</strong> development of<br />
third generation mobile networks, 3G, and its<br />
future in <strong>the</strong> Kingdom of Saudi Arabia, KSA.<br />
Since <strong>the</strong> Kingdomʼs regulator granted <strong>the</strong> 3G<br />
service licences, mobile broadband technology<br />
has moved on to <strong>the</strong> next stage. In simple<br />
terms, <strong>the</strong> Saudi nation will be able to connect<br />
to <strong>the</strong> Internet much faster than was previously<br />
possible, which is a huge step forward<br />
for <strong>the</strong> Kingdom.<br />
3G is relatively new in <strong>the</strong> region and growing<br />
at a rapid pace. When High Speed Packet Data<br />
Access, HSPDA, a packet access technology<br />
for wireless networks launches in <strong>the</strong> region,<br />
it will be a huge jump forward, as much of <strong>the</strong><br />
Kingdom still uses dial-up and only 20 per<br />
cent of households have an Internet connection.<br />
Our nation is a young one, with 50 per<br />
cent of <strong>the</strong> population under <strong>the</strong> age of 25, but<br />
<strong>the</strong>y are very tech savvy; given this, toge<strong>the</strong>r<br />
with <strong>the</strong> appeal of mobility, I foresee a huge<br />
demand for <strong>the</strong> service all over <strong>the</strong> Middle<br />
East and especially in <strong>the</strong> KSA. Saudis, by<br />
nature, have strong social ties and love to talk<br />
on <strong>the</strong>ir mobiles, so if you look at <strong>the</strong> average<br />
minutes of use in <strong>the</strong> Middle East, you will<br />
probably find that it is double that in <strong>the</strong> European<br />
Union, because people in <strong>the</strong> Middle<br />
East consider talking to be entertainment.<br />
The Middle East region has a number of opportunities<br />
for 3G in <strong>the</strong> areas of infrastructure,<br />
technology or service provisions. However,<br />
<strong>the</strong> success of such ventures will depend upon<br />
<strong>the</strong> presence of a number of critical factors<br />
including <strong>the</strong> availability of broadband access<br />
technologies, wireless and mobile technologies<br />
and digital asset management. The Kingdomʼs<br />
operators have been leading <strong>the</strong> efforts<br />
to bring 3G to <strong>the</strong> region<br />
and <strong>the</strong>y are firmly committed<br />
to <strong>the</strong> investment,<br />
technological evolution,<br />
continuous development<br />
and innovation needed to<br />
<strong>make</strong> this happen.<br />
The mobile market has<br />
been <strong>the</strong> growth driver<br />
of <strong>the</strong> Middle Eastʼs<br />
telecommunications industry<br />
for much of this<br />
decade. However, with<br />
limited potential for future<br />
growth in services,<br />
carriers will have to look<br />
to added-value services<br />
to grow <strong>the</strong>ir mobile revenues.<br />
With 3G services<br />
showing by far <strong>the</strong> highest<br />
average revenue per<br />
user, ARPU, in <strong>the</strong> mobile<br />
market, telecom operators<br />
will have to intensify<br />
<strong>the</strong>ir 3G capabilities, and<br />
persuade subscribers to use and pay for highreturning<br />
services, such as mobile data and 3G<br />
multimedia.<br />
The market is changing, with rapidly increasing<br />
competition in <strong>the</strong> mobile sector and slowly<br />
reducing state involvement. Licence tenders<br />
to operate privately owned mobile networks<br />
have recently taken place. Mobiles are taking<br />
“The Kingdom’s operators have been leading<br />
<strong>the</strong> efforts to bring 3G to <strong>the</strong> region and<br />
<strong>the</strong>y are firmly committed to <strong>the</strong> investment,<br />
technological evolution, continuous development<br />
and innovation needed to <strong>make</strong> this<br />
happen.”<br />
24 Issue 2006
3G Networks<br />
market share from declining fixed-line markets<br />
in <strong>the</strong> more developed countries. Internet<br />
use and broadband development are generally<br />
low for <strong>the</strong> relative levels of economic development<br />
except for <strong>the</strong> United Arab Emirates<br />
(UAE).<br />
Bahrain was <strong>the</strong> first country<br />
in <strong>the</strong> Middle East to liberalize<br />
fully its telecom market<br />
three years ago in March<br />
2003, and many o<strong>the</strong>r countries<br />
have since followed <strong>the</strong>ir<br />
example. This has actually<br />
helped bring lots of investment<br />
to <strong>the</strong> region and has,<br />
as well, improved services<br />
and created new opportunities,<br />
both for customers and<br />
investors. Bahrain was also<br />
<strong>the</strong> first country to issue a 3G<br />
licence and served as a good<br />
pilot project to test new technologies<br />
and new marketing<br />
strategies.<br />
According to <strong>the</strong> Yankee<br />
Group Research Company in<br />
Western Europe, 3G penetration<br />
is projected to be 20 per<br />
cent of <strong>the</strong> total mobile market<br />
by 2006; by 2009, penetration<br />
is expected to reach 60 per<br />
cent. The 3G handset market<br />
should account for over 80 per<br />
cent of <strong>the</strong> total handset sales<br />
by 2009, compared to <strong>the</strong> 42<br />
per cent expected in 2006. In<br />
2005, 3G handsets accounted<br />
for only 20 per cent of <strong>the</strong> total<br />
handset sales and eight per<br />
cent of <strong>the</strong> total mobile customer<br />
base.<br />
The success of Multimedia<br />
Message Service, MMS, is<br />
setting <strong>the</strong> stage for a 3G<br />
take-off by changing user<br />
behaviour, moving people away from Short<br />
Message Service, SMS, and creating demand<br />
for mobile Internet services. Once people are<br />
regularly using mobile multimedia services,<br />
<strong>the</strong>re will be a natural rise in demand for <strong>the</strong><br />
higher bandwidth offered by WCDMA, wideband<br />
Code Division Multiple Access, CDMA,<br />
for services such as video streaming and video<br />
telephony. O<strong>the</strong>r operators around <strong>the</strong> world<br />
have developed engaging content that has<br />
driven <strong>the</strong> use of <strong>the</strong> MMS. In Saudi Arabia<br />
millions of MMSs are sent every day; it is an<br />
innovative way of communicating with friends<br />
and family, but it does have some sectors of<br />
our conservative society worried about <strong>the</strong><br />
abuse of technology. However, <strong>the</strong> Kingdom<br />
is changing and we like to think that people in<br />
general will use this wisely.<br />
One way of combating <strong>the</strong> abuse of this technology<br />
is by creating relevant content for<br />
different people. Sunrise in Switzerland, for<br />
example, offers MMS services in which subscribers<br />
can elect to receive a daily or weekly<br />
“The success of Multimedia Message<br />
Service, MMS, is setting <strong>the</strong> stage for a<br />
3G take-off by changing user behaviour,<br />
moving people away from Short Message<br />
Service, SMS, and creating demand for<br />
mobile Internet services.”<br />
Garfield cartoon for kids and women are targeted<br />
with illustrated horoscopes. All <strong>the</strong>se<br />
would work very well in <strong>the</strong> Kingdom. Italian<br />
operator Telecom Italia Mobile offers access<br />
to information on Italian football matches via<br />
TV programme vignettes; this, again, would<br />
do very well for our football-loving nation.<br />
MMS brings added value to cross-media mobile<br />
multimedia services, for example sports<br />
enthusiasts watching a game on TV could<br />
use MMS to receive additional player and<br />
team statistics or alternative camera angles of<br />
a goal. Ano<strong>the</strong>r application will use <strong>the</strong> latest<br />
traffic-status information and knowledge<br />
of location to generate a map of <strong>the</strong> quickest<br />
route to a destination, or even to display where<br />
<strong>the</strong> userʼs friends are located.<br />
The investigation of <strong>the</strong> possibilities that MMS<br />
brings is only just starting. The initial success<br />
stories are often <strong>the</strong> result of building on existing<br />
popular services - such as adding images<br />
and audio to basic text services - to enhance<br />
<strong>the</strong> user experience. A similar evolutionary<br />
approach will be taken when<br />
3G <strong>make</strong>s higher bandwidth applications<br />
possible.<br />
Eventually, <strong>the</strong> Kingdomʼs operators<br />
and subscribers will catch up with<br />
<strong>the</strong>ir European counterparts. Yet in<br />
all regions of <strong>the</strong> world, <strong>the</strong> ultimate<br />
success of 3G systems depends on applications.<br />
Many industry observers<br />
believe, for example, that electronic<br />
commerce will be <strong>the</strong> ʻkiller applicationʼ<br />
that fuels widespread demand for<br />
3G wireless services. That may turn<br />
out to be <strong>the</strong> case. However, people<br />
are likely to opt for 3G services, be<br />
<strong>the</strong>y for e-commerce, Web browsing,<br />
or o<strong>the</strong>r high-speed data applications,<br />
only if those services are affordably<br />
priced and if <strong>the</strong> 3G handsets are easy<br />
to use.<br />
The essential rationale for deployment<br />
of a 3G network - gaining spectrum<br />
efficiencies, easing network capacity<br />
constraints, lowering operating costs,<br />
and expanding revenue opportunities<br />
through provisioning of data services<br />
- remains intact. We believe that <strong>the</strong><br />
rising popularity of MMS and picture<br />
messaging will legitimize <strong>the</strong> culture<br />
of data consumption in a mobile environment<br />
and spur deployment of<br />
network infrastructure. It will not,<br />
however, be just 3G driving <strong>the</strong>se developments;<br />
public wireless local area<br />
networks, WLANs, with ʻhotspotsʼ will<br />
also help in this development.<br />
Despite all <strong>the</strong>se uncertainties, 3G<br />
wireless systems will emerge, and I expect<br />
<strong>the</strong> adoption of 3G to evolve with<br />
reasonable speed. We also foresee regulators<br />
easing <strong>the</strong> constraints on licences and pushing<br />
for more competition. <br />
Issue 2006 25
Wireless Broadband<br />
Wireless broadband - changing business in<br />
Africa and <strong>the</strong> Middle East<br />
by Pertti Johansson, President, Qualcomm<br />
Middle East and Africa<br />
Given <strong>the</strong> growth of broadband wireless networks and <strong>the</strong> wide availability of inexpensive<br />
handsets, third generation 3G broadband technologies will give developing countries a level of<br />
Internet access sufficient to bridge wirelessly <strong>the</strong> digital divide. As <strong>the</strong>se technologies evolve,<br />
mobile voice and high-speed data services will far surpass <strong>the</strong> economic importance and relevance<br />
of wired communications. In <strong>the</strong> near future, <strong>the</strong> wireless Internet will contribute to uplifting<br />
and reshaping <strong>the</strong> economies of emerging markets across Africa and <strong>the</strong> Middle East.<br />
Pertti Johansson is <strong>the</strong> President of Qualcomm Middle East and Africa (MEA). Prior to joining Qualcomm, Mr Johansson was <strong>the</strong><br />
Founder and President of <strong>the</strong> consulting firm,Johansson Global Associates, LLC. Previously, Mr Johansson worked for Motorola Corporation<br />
in a number of executive management positions, including Senior Vice President of Global Account Management, Senior Vice<br />
President and General Manager of <strong>the</strong> European, Middle Eastern and African regions, Vice President, Corporate Vice President and<br />
General Manager of <strong>the</strong> International Cellular Infrastructure Division, and Director of R&D and Product Marketing for GSM Networks.<br />
Mr Johansson has served on <strong>the</strong> boards of <strong>the</strong> Aegis Communications Corporation, <strong>the</strong> Strategic Account Management Association,<br />
<strong>the</strong> Pacific Telecom Council, <strong>the</strong> U.S.-Russia Business Council, Motorola Regional Management for Asia, Europe and Latin America,<br />
and <strong>the</strong> Finnish-American Chamber of Commerce. Pertti Johansson received his Bachelor of Science degree in Electrical Engineering:<br />
Telecommunications from <strong>the</strong> Helsinki Institute of Technology.<br />
When Alexander Graham Bell first conceived<br />
of <strong>the</strong> telephone in 1876, he touted it as <strong>the</strong><br />
“miracle discovery of <strong>the</strong> age”, yet <strong>the</strong> public<br />
was mostly unaware of its possibilities. Today,<br />
<strong>the</strong> concept of <strong>the</strong> telephone has given way to<br />
a slew of o<strong>the</strong>r inventions, including <strong>the</strong> cell<br />
phone. Like <strong>the</strong> telephone, <strong>the</strong> Internet can be<br />
tagged as a ʻmiracle discoveryʼ since it has<br />
revolutionized <strong>the</strong> computer and communications<br />
like nothing else. Today, <strong>the</strong> combination<br />
of <strong>the</strong> cell phone and <strong>the</strong> Internet has had a significant<br />
impact on <strong>the</strong> way we work, increasing<br />
efficiency and contributing to <strong>the</strong> health of<br />
many regional economies. In fact, <strong>the</strong> wireless<br />
Internet will contribute to uplifting and reshaping<br />
<strong>the</strong> economies of emerging markets across<br />
Africa and <strong>the</strong> Middle East.<br />
Many believe that access to communications<br />
is a basic <strong>right</strong>, and that bringing access to<br />
information and communications to underserved<br />
communities streng<strong>the</strong>ns cultures and<br />
promotes commerce and societal participation.<br />
The economic importance of enabling access<br />
to basic telecommunications service has long<br />
been recognized around <strong>the</strong> world as critical<br />
for development, yet such access is still unobtainable<br />
by many. As wireless communications<br />
technologies continue to evolve offering<br />
mobile voice and high-speed data services, <strong>the</strong><br />
economic importance and relevance of <strong>the</strong>se<br />
wireless networks are far surpassing those of<br />
<strong>the</strong> wired world. Wireless communications<br />
will provide universal, ubiquitous, equitable<br />
and affordable access to information.<br />
Already taking off around <strong>the</strong> world, third<br />
generation (3G) broadband technologies are<br />
<strong>the</strong> catalyst that will broaden <strong>the</strong> Internetʼs influence<br />
on <strong>the</strong> world. The telecommunications<br />
industry is at <strong>the</strong> point where <strong>the</strong> availability<br />
of broadband wireless networks is coinciding<br />
with <strong>the</strong> availability of inexpensive handsets.<br />
With very inexpensive cell phones becoming<br />
common, developing countries will experience<br />
a level of Internet access not previously seen,<br />
allowing for a wireless bridging of <strong>the</strong> digital<br />
divide.<br />
The rapid growth of wireless penetration,<br />
compared to fixed lines, is largely attributable<br />
to <strong>the</strong> relatively low incremental cost of adding<br />
subscribers to cellular networks. Wireless<br />
networks can be built far more quickly than<br />
fixed-line networks, and <strong>the</strong> technology allows<br />
users a variety of ways to obtain access to <strong>the</strong><br />
network.<br />
Wireless networks are ideal vehicles for <strong>the</strong> delivery<br />
of Internet services to developing countries,<br />
because <strong>the</strong>y do not require <strong>the</strong> costly<br />
and lengthy network infrastructure build-outs<br />
of wired networks. Paired with <strong>the</strong> fact that inexpensive<br />
handsets are readily available, it is<br />
only logical that, in <strong>the</strong> future, <strong>the</strong> majority of<br />
people accessing information over <strong>the</strong> Internet<br />
will use <strong>the</strong>ir cell phones as <strong>the</strong>ir main information-access<br />
devices.<br />
In developing countries, mobile consumers are<br />
realizing <strong>the</strong> convenience, mobility and advanced<br />
capabilities of cell phones, and it is in<br />
those markets where <strong>the</strong> cell phone-to-PC ratio<br />
is <strong>the</strong> widest. For example, in <strong>the</strong> Middle East,<br />
<strong>the</strong> telecommunications regulatory authority in<br />
<strong>the</strong> United Arab Emirates estimates that 91 per<br />
cent of <strong>the</strong> population has cell phones, whereas<br />
only 19 per cent have PCs. This difference indicates<br />
cell phones have a much broader reach<br />
than PCs, and illustrates <strong>the</strong> potential of <strong>the</strong><br />
wireless Internet.<br />
26 Issue 2006
Wireless Broadband<br />
Wireless technologies have clearly emerged as<br />
<strong>the</strong> predominant method of accessing information<br />
and communications services worldwide.<br />
In 2002, <strong>the</strong> number of wireless phone subscribers<br />
across <strong>the</strong> globe overtook <strong>the</strong> number<br />
of fixed-line <strong>connections</strong>. In Africa, wireless<br />
phones account for at least three quarters of<br />
all telephones. In <strong>the</strong> region, over <strong>the</strong> past<br />
five years, approximately eight times as many<br />
mobile wireless <strong>connections</strong> have been made<br />
relative to o<strong>the</strong>r fixed access methods.<br />
In emerging markets like <strong>the</strong> Middle East<br />
and Africa, where <strong>the</strong> wireline infrastructure<br />
availability varies greatly between <strong>the</strong> city and<br />
rural areas, <strong>the</strong> wireless networks provide <strong>the</strong><br />
fastest, most secure and cost-effective means<br />
of providing broadband access to rural areas.<br />
It is in <strong>the</strong>se areas where 3G wireless broadband<br />
will have <strong>the</strong> greatest economic impact<br />
on <strong>the</strong> region.<br />
Wireless technologies are already making a<br />
profound economic contribution to Africa, by<br />
creating a positive impact on employment, increasing<br />
business efficiency and boosting tax<br />
revenues and Gross Domestic Product, GDP.<br />
In Africa, telecommunication service revenues,<br />
as a percentage of GDP, have grown<br />
<strong>the</strong> fastest compared to o<strong>the</strong>r regions. Today,<br />
<strong>the</strong>y represent almost five per cent of GDP in<br />
Africa, compared to 4.5 per cent in Oceania,<br />
3.8 per cent in Asia, 3.3 per cent in Europe and<br />
2.9 per cent in <strong>the</strong> Americas. This highlights<br />
<strong>the</strong> importance of <strong>the</strong> telecommunication sector<br />
for <strong>the</strong> African economy.<br />
In addition, a significant number of studies<br />
have emerged that establish a positive link between<br />
<strong>the</strong> use of mobile phones and economic<br />
growth in developing countries. A recent study<br />
attempted to quantify <strong>the</strong> effect of increased<br />
mobile penetration on GDP, and found that<br />
The rapid growth of wireless penetration,<br />
compared to fixed lines, is largely attributable<br />
to <strong>the</strong> relatively low incremental cost of adding<br />
subscribers to cellular networks. Wireless<br />
networks can be built far more quickly than<br />
fixed-line networks, and <strong>the</strong> technology allows<br />
users a variety of ways to obtain access<br />
to <strong>the</strong> network.<br />
between 1996 and 2003 a developing country<br />
with ten more mobile phones per 100 people<br />
could expect to experience annual GDP growth<br />
that was 0.59 per cent higher than an o<strong>the</strong>rwise<br />
identical country. While research has shown a<br />
positive correlation between teledensity and<br />
GDP growth, an even stronger relationship<br />
exists between Internet penetration, which can<br />
be fur<strong>the</strong>r accelerated through 3G wireless<br />
technology, and GDP growth. Because 3G<br />
wireless broadband technology can provide<br />
both voice and high-speed data in a more costeffective<br />
manner than wireline infrastructure,<br />
<strong>the</strong> implementation of 3G wireless broadband<br />
will fur<strong>the</strong>r accelerate GDP growth in developing<br />
countries.<br />
Wireless phones also have an important impact<br />
on economic growth by increasing productivity.<br />
A survey of small businesses in South<br />
Africa found that 89 per cent made use of<br />
mobile phones. Of <strong>the</strong>se, 62 per cent reported<br />
increased profits. Benefits of <strong>the</strong> technology<br />
that were highlighted in <strong>the</strong> survey included<br />
increased availability to clients, reduced travel<br />
and assistance in breakdowns/emergencies.<br />
Wireless devices also enable <strong>the</strong> realisation of<br />
economic benefits through <strong>the</strong> availability of<br />
up-to-<strong>the</strong>-minute price and cost information.<br />
For example, fishermen and/or farmers can<br />
use <strong>the</strong> data capabilities of 3G-based wireless<br />
phones to check real-time market prices for<br />
<strong>the</strong>ir commodities and can <strong>the</strong>n find <strong>the</strong> best<br />
offering price for <strong>the</strong>ir products. Increased efficiency<br />
of communications, such as <strong>the</strong>se, for<br />
businesses is becoming ever more important;<br />
it will help businesses in Africa and <strong>the</strong> Middle<br />
East to compensate for <strong>the</strong> lack of o<strong>the</strong>r<br />
modern amenities needed to keep up with <strong>the</strong><br />
global pace of business.<br />
The success of implementing 3G broadband<br />
wireless technologies is already evident in<br />
India. With <strong>the</strong> introduction of 3G technologies<br />
in 2002 and subsequent regulatory reform<br />
by <strong>the</strong> Government of India, <strong>the</strong> country witnessed<br />
a six per cent increase in total teledensity<br />
amounting to more than 80 million new<br />
wireless subscribers and a drop in tariffs by<br />
75 per cent to less than one rupee per minute.<br />
As a result, India currently has <strong>the</strong> lowest mobile<br />
tariffs in <strong>the</strong> world. These inspiring results<br />
demonstrate <strong>the</strong> potential impact on <strong>the</strong> economies<br />
of o<strong>the</strong>r emerging markets through <strong>the</strong><br />
implementation of 3G technologies.<br />
In <strong>the</strong> future, in addition to increasing productivity,<br />
wireless technology will be able to<br />
transform economic relationships and processes<br />
in <strong>the</strong> private and public sectors of<br />
<strong>the</strong>se emerging markets. E-commerce, such<br />
as business-to-business and business-to-consumer<br />
transactions is taking up an increasing<br />
market share, and broadband uptake through<br />
3G wireless is closely linked to this development.<br />
Services such as banking and electronic<br />
payment have become prevalent in countries<br />
where 3G wireless broadband is widely deployed.<br />
The economic impact of 3G wireless<br />
broadband will fur<strong>the</strong>r be amplified in underserved<br />
areas, particularly with <strong>the</strong> extension of<br />
credit and transactional facilities to those who<br />
previously had no access to banking services.<br />
Similar arguments apply to mobile commerce<br />
and data services, as well as a range of o<strong>the</strong>r<br />
applications, including e-government, e-health<br />
and e-education.<br />
In some parts of <strong>the</strong> developed world like<br />
Japan, <strong>the</strong> adoption and advanced usage of<br />
<strong>the</strong> wireless Internet occurred earlier, and<br />
at a much more rapid pace, than that of <strong>the</strong><br />
wired Internet; <strong>the</strong>se early adopters are a good<br />
example of what is possible for <strong>the</strong> future of<br />
wireless communications in o<strong>the</strong>r regions. Japan<br />
and South Korea quickly recognized <strong>the</strong><br />
potential of <strong>the</strong> wireless Internet and subsequently<br />
developed applications and functions<br />
for this platform, ra<strong>the</strong>r than for <strong>the</strong> PC. In<br />
Korea, mobile banking applications have been<br />
widely accepted as a cost-effective channel to<br />
deliver banking and trading services, and <strong>the</strong><br />
number of customers who use mobile banking-enabled<br />
handsets has surpassed <strong>the</strong> ten<br />
million mark, according to a recent article in<br />
The Korea Times. Comparatively, in Japan, <strong>the</strong><br />
wireless Internet has supported <strong>the</strong> emergence<br />
of such business applications as systems maintenance<br />
and sales force automation, resulting<br />
in greater operational efficiencies and lower<br />
costs. This rapid adoption and development<br />
of daily applications for business, as well as<br />
recreation, has fuelled an explosion in <strong>the</strong> use<br />
of <strong>the</strong> wireless Internet that has far surpassed<br />
<strong>the</strong> wired Internet.<br />
Telecommunications has certainly come a<br />
long way since <strong>the</strong> days of Alexander Graham<br />
Bell, and <strong>the</strong> drive to explore <strong>the</strong> potential of<br />
new technologies continues. Several decades<br />
ago, <strong>the</strong> telecom industry invented ways for<br />
us to communicate with each o<strong>the</strong>r wirelessly;<br />
since <strong>the</strong>n, <strong>the</strong> industry has worked hard<br />
to refine and invent technologies and to bring<br />
new products and services to consumers. Simultaneously,<br />
<strong>the</strong> wired Internet has grown to<br />
provide a viable method of information dissemination,<br />
a mode of communication and<br />
collaboration and a tool for e-commerce. Today,<br />
3G broadband wireless technologies are<br />
evolving to bring toge<strong>the</strong>r <strong>the</strong> enormous capabilities<br />
of <strong>the</strong> Internet and <strong>the</strong> convenience<br />
and affordability of wireless phones. Communications<br />
has become a realistic and attainable<br />
basic <strong>right</strong>, and it has never been more important<br />
to <strong>the</strong> businesses and overall economies<br />
of emerging markets such as Africa and <strong>the</strong><br />
Middle East. <br />
Issue 2006 27
Wireless Broadband<br />
Universal broadband - can it pay in Africa<br />
by Michah Himmelman, Founder and President, MaxBill Ltd<br />
Broadband promises to bring great economic and social benefits to Africa. Traditionally, wired<br />
broadband <strong>connections</strong> to computers linked <strong>the</strong>m to <strong>the</strong> Internet. In Africa, however, few workers<br />
earn enough to buy a computer, let alone pay for <strong>the</strong> service. On <strong>the</strong> o<strong>the</strong>r hand, mobile<br />
phone ownership and usage has grown dramatically in recent years and <strong>the</strong> cost of broadbandenabled<br />
mobile handsets is shrinking. Broadbandʼs growth in Africa, <strong>the</strong>n, may well depend<br />
upon <strong>the</strong> availability of affordable broadband-enabled mobile handsets.<br />
Michah Himmelman is <strong>the</strong> Founder and President of MaxBill Ltd. Mr Himmelman, with over 20 years of experience in software design<br />
and development in <strong>the</strong> financial and billing arena, directly oversees <strong>the</strong> companyʼs product development focused upon mission-critical,<br />
Internet-enabled, enterprise software solutions.<br />
Prior to founding MaxBill, Mr Himmelman worked as a subcontractor and as an independent software consultant for a number of companies.<br />
Mr Himmelman has created diverse products for a variety of fields, including Customer Care and Billing, corporate financial<br />
applications, cardio-pulmonary exercise testing analysis software, online and rule-based facility security software, a traffic planning<br />
system, network communication protocols, mediation software and artificial intelligence technology development.<br />
In recent years, several African countries have<br />
experienced triple-digit Internet usage growth<br />
rates, including <strong>the</strong> Ivory Coast, Morocco,<br />
Senegal, Sudan and Tanzania. This trend is<br />
expected to continue in 2006. While in 2005,<br />
only 2.6 per cent of Africaʼs population was<br />
connected to <strong>the</strong> Internet, within a year <strong>the</strong><br />
density has doubled.<br />
Still, <strong>the</strong>re are some problems hampering<br />
Internet growth. Leaving political instability<br />
aside, many African countries lack proper<br />
telecommunications infrastructures. Africa<br />
has poor fixed-line coverage and <strong>the</strong> cost of<br />
improving <strong>the</strong> infrastructure often cannot be<br />
met. In an effort to improve <strong>the</strong> situation, most<br />
countries have embraced privatization of <strong>the</strong>ir<br />
government-controlled telecommunications<br />
monopolies and have reformed <strong>the</strong>ir regulatory<br />
structures. The privatized telecommunication<br />
companies, <strong>the</strong>n, are required to bear<br />
<strong>the</strong> cost of bettering <strong>the</strong> countryʼs overall communications<br />
- a necessity for streng<strong>the</strong>ning a<br />
countryʼs economy, its education, health and<br />
security services, government efficiency and<br />
social benefits.<br />
Broadband offers an improvement, an easier<br />
and more cost-efficient way of upgrading <strong>the</strong><br />
communications infrastructure. However,<br />
<strong>the</strong>re are certain prerequisites to implement<br />
and profit from broadband.<br />
In addition to a proper infrastructure, broadband,<br />
for most users, requires a computer -<br />
something most people in Africa do not own.<br />
Each computer with an Internet or e-mail connection<br />
in Africa supports, on average, three<br />
to four users. Unlike o<strong>the</strong>r countries, where<br />
computers are a privately owned commodity,<br />
most computers in Africa are in educational institutions,<br />
government offices or, in some cases,<br />
in public Internet cafe. The reason for this<br />
is simple, according to Computers for Africa,<br />
a non-profit organization working towards<br />
bringing refurbished computers to Africa; <strong>the</strong><br />
average person in East Africa earns a daily<br />
wage of approximately US$1, while <strong>the</strong> cost<br />
of a computer is <strong>the</strong> same as outside Africa. In<br />
addition, only half of <strong>the</strong> available computers<br />
have Internet access.<br />
Of what use is broadband if <strong>the</strong>re are no<br />
computers<br />
Due to <strong>the</strong> low literacy rate in English and/<br />
or French, a huge percentage of <strong>the</strong> African<br />
population falls short of <strong>the</strong> mark for actual<br />
broadband usage. UNESCO has implemented<br />
several programs to address this issue, by making<br />
computer literacy programmes available in<br />
African schools and NGOs, and assisting with<br />
software programmes that will enable <strong>the</strong> set<br />
up of content in local languages.<br />
Not only are basic programmes required to<br />
educate potential end-users, <strong>the</strong>re is also a lack<br />
of trained professionals to set up and maintain<br />
telecommunication systems. These difficulties<br />
are aggravated by <strong>the</strong> fact that <strong>the</strong> salaries paid<br />
to even <strong>the</strong> most basic telecommunications<br />
technicians are often higher outside Sub-Saharan<br />
Africa or even Europe.<br />
“...<strong>the</strong> average person in East<br />
Africa earns a daily wage of<br />
approximately US$1, while<br />
<strong>the</strong> cost of a computer is <strong>the</strong><br />
same as outside Africa. In addition,<br />
only half of <strong>the</strong> available<br />
computers have Internet<br />
access.”<br />
While literacy issues of end-users and availability<br />
of trained professionals may be remedied<br />
with time, <strong>the</strong> lack of computers coupled<br />
with poor infrastructure remains.<br />
So what are <strong>the</strong> prospects for <strong>the</strong> broadband<br />
market<br />
Due to poor fixed-line coverage, Africans have<br />
quickly embraced mobile networks. Mobile<br />
telephones account for 85 per cent of all African<br />
telephone subscriptions. Africa now has<br />
more than 120 operational mobile networks.<br />
According to RNCO, a market research firm,<br />
Africaʼs mobile phone subscriber base rose 66<br />
per cent, while Europeʼs grew by only 11 per<br />
cent. According to RNCOʼs study, 378 million<br />
Africans are expected to own a cell phone by<br />
2011.<br />
28 Issue 2006
4 – 8 September 2006<br />
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Dr Tracy Cohen<br />
Councillor<br />
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John Slaighter<br />
Munsaka<br />
Chief Operations Officer<br />
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• Profit from <strong>the</strong> successful delivery of mobile content and digital entertainment<br />
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Wireless Broadband<br />
Of what use is broadband if <strong>the</strong>re are no<br />
computers<br />
Only 23.6 million Africans access <strong>the</strong> Internet,<br />
but <strong>the</strong>re are already 135 million mobile phone<br />
users. Recent mobile telephone handsets can<br />
access wireless broadband, and <strong>the</strong> cost of<br />
handsets with broadband access is dropping<br />
rapidly. Accordingly, <strong>the</strong> logical inference,<br />
and more economical step, is to use mobile<br />
phones, not dedicated computers, for broadband<br />
access in Africa. It <strong>make</strong>s more sense<br />
for Africa to bypass <strong>the</strong> ʻwireline stageʼ and<br />
<strong>the</strong> necessity of a computer altoge<strong>the</strong>r, and use<br />
only one device - a more economical device<br />
- to give people access to both telephony and<br />
<strong>the</strong> Internet.<br />
<strong>World</strong>wide Interoperability for Microwave<br />
Access, WiMaX, is <strong>the</strong> future for Africa. It is<br />
<strong>the</strong> latest and most hyped generation of fixed<br />
wireless technology, and is poised to provide<br />
a solution to <strong>the</strong> major impediments to wireless<br />
fi delity, WiFi, namely standardization and<br />
range. WiMax was launched as a potential alternative<br />
to fixed broadband services. However,<br />
<strong>the</strong> lack of standards and commercially viable<br />
consumer equipment has not yet enabled<br />
its full development for mass-market deployment.<br />
The development of a fourth generation,<br />
4G, solution, combining mobile phones and<br />
wireless broadband technologies will be able<br />
to address markets such as wireless data, telemetry,<br />
radio frequency identification, RFID,<br />
and a range of o<strong>the</strong>r new services that will<br />
emerge based upon 4G technology.<br />
One has to keep in mind that, while <strong>the</strong> market<br />
is wide-open with many first time users,<br />
most customers cannot afford to buy high-end<br />
phones or replace <strong>the</strong>m very often - <strong>the</strong> market<br />
calls for a simple, affordable device.<br />
One service, in particular, will be of importance<br />
for Africa: voice over internet protocol,<br />
VoIP. The great number of expatriates,<br />
migrant workers or even refugees, generates<br />
disproportionately high levels of international<br />
call traffic compared to those expected given<br />
<strong>the</strong> generally low local income levels. VoIP<br />
will bring down <strong>the</strong> traditionally high costs of<br />
telecommunications. Although local providers<br />
often try to erect barriers to restrict or disable<br />
<strong>the</strong> end-user from accessing such services, <strong>the</strong><br />
use of VoIP is growing. The telecom operators<br />
<strong>the</strong>mselves, recognising <strong>the</strong> economic advantages,<br />
are using VoIP as a transport layer on<br />
<strong>the</strong>ir international links working through joint<br />
ventures with international VoIP companies.<br />
Mobile phones bring <strong>the</strong> informal sector opportunities<br />
to generate income. Business contacts<br />
are maintained, orders are taken and sales<br />
are made via mobile phones. In Africa, where<br />
credit cards are, for <strong>the</strong> most part, non-existent<br />
and bank accounts rare, Smart Cards as used<br />
in South Africa, give a telephone subscriber<br />
credit that can be used not only to place calls<br />
but to pay for data transfers or even pay for<br />
merchandise.<br />
Basic mobile data applications, such as <strong>the</strong><br />
Wireless Application Protocol, WAP, are offered<br />
to mobile phone subscribers in most<br />
parts of <strong>the</strong> world providing <strong>the</strong>m, among<br />
o<strong>the</strong>r things, with news. With broadband, television<br />
content over mobile devices will certainly<br />
grow in importance. Much of <strong>the</strong> world<br />
regards radio only as a musical content source<br />
for teenagers. However, radio is by far <strong>the</strong><br />
most dominant mass medium in Africa. Radio<br />
stations with trained personnel are widely<br />
available throughout Africa, and can transmit<br />
an ample range of content to illiterate populations<br />
in local languages. Accordingly, it may<br />
be worthwhile to consider using bandwidth to<br />
provide rural populations with specific content.<br />
Radio content on demand via mobile<br />
broadband may prove to be an especially valuable<br />
way to deliver health information or professional<br />
training.<br />
This year, <strong>the</strong> installation of fibre-optic cables<br />
around Africa should be completed, offering<br />
<strong>the</strong> region additional opportunities to access<br />
broadband services. In addition, <strong>the</strong> African<br />
continent is already covered by high speed Internet<br />
via Satellite access systems.<br />
Whe<strong>the</strong>r broadband is provided via a fixed<br />
line, like in Morocco where, as of this year,<br />
95 per cent of Internet users are ADSL subscribers,<br />
or via wireless satellite transmission<br />
to mobile phone handsets, <strong>the</strong>re is immense<br />
growth potential.<br />
Few studies have been conducted of rural versus<br />
urban users, but one can assume that users<br />
in cities vastly outnumber rural users, due to<br />
<strong>the</strong> existence of educational centres with computer<br />
access, higher literacy rates and electrical<br />
access. However, many countries now have<br />
points of presence in some of <strong>the</strong>ir secondary<br />
towns. In addition, several countries have tried<br />
to promote Internet use by offering local call<br />
charges for all calls to <strong>the</strong> Internet provider,<br />
regardless of distance.<br />
The Seychelles has gone even fur<strong>the</strong>r; <strong>the</strong> rates<br />
for calls to <strong>the</strong> Internet service provider are set<br />
at half <strong>the</strong> price of regular local voice calls.<br />
The success is incredible. The Seychelles has<br />
a 25 per cent Internet user penetration which,<br />
toge<strong>the</strong>r with French Reunion, is <strong>the</strong> highest in<br />
<strong>the</strong> whole of Africa.<br />
However, in its drive for technical modernization<br />
and for links to global broadband networks,<br />
Africa is facing serious problems with<br />
fraud. Thus, fraud management and revenue<br />
assurance are of utmost importance to local<br />
companies. Telecom fraud has been identified<br />
as <strong>the</strong> single biggest cause of revenue loss for<br />
operators and service providers. In Africa, carriers<br />
report write-offs of fraud losses amounting<br />
to as much as US$700 million annually. As<br />
mobile penetration in Africa increases, so does<br />
fraud risk; with new services like 3G and VoIP,<br />
<strong>the</strong> opportunities for fraud are increasing and<br />
fraud attacks and scams are becoming increasingly<br />
sophisticated.<br />
Indeed, <strong>the</strong> fraud problems in <strong>the</strong> field have<br />
drawn much attention, and <strong>the</strong> Telecoms<br />
Fraud-Africa 2005 conference in South Africa<br />
attracted <strong>the</strong> fraud and revenue assurance<br />
managers from mobile and fixed operators in<br />
17 African countries. The needs are such, that<br />
a follow up conference on <strong>the</strong> issue was held<br />
between 29 May and 1 June of this year in Johannesburg.<br />
To cope with fraud, a system is required that<br />
can identify potential fraudulent events and<br />
situations. Such systems provide early warning<br />
in potential revenue leakage and fraud<br />
situations, detect actual revenue leakage, provide<br />
prompt notification to <strong>the</strong> relevant fraud<br />
and revenue leakage personnel within <strong>the</strong> respective<br />
provider, pro-actively handle potential<br />
customer complaints, and pre-emptively<br />
handle exceptional conditions.<br />
A combination of several elements is needed<br />
to resolve <strong>the</strong>se problems. These include<br />
software applications to control, monitor and<br />
profile and alert <strong>the</strong> end user, software modules<br />
that are capable of rating usage records,<br />
as needed, independent of a providerʼs current<br />
rating capabilities, and <strong>the</strong> ability to add-on<br />
and integrate hardware components such as<br />
probes or sensors, that trace and detect suspicious<br />
call activity.<br />
Having <strong>the</strong> necessary systems in place will<br />
ensure that future services offered by telecommunication<br />
service providers will start<br />
in <strong>the</strong> <strong>right</strong> direction and, where possible, in<br />
accordance with an optimized business case.<br />
The promise of broadband in Africa extends<br />
far beyond <strong>the</strong> service providersʼ inevitable financial<br />
return; it is broadbandʼs potential as an<br />
educational and social tool, and as a means to<br />
support local businesses and build <strong>the</strong> regional<br />
economy, that promises to be <strong>the</strong> true success<br />
story. <br />
Issue 2006 31
Wireless<br />
Wireless - building <strong>the</strong> Middle East and Africa<br />
by Jose R. Figueroa, Corporate Vice President & Regional Manager (EMEA and LAC),<br />
and Ali Amer, Senior Director of Sales (MENAPAK), Motorola Networks<br />
In Africa and <strong>the</strong> Middle East (AME), wireless solutions will dramatically affect peopleʼs lives<br />
and stimulate <strong>the</strong> local economy. A recent survey found that 62 per cent of small businesses<br />
in South Africa and 59 per cent in Egypt believe, despite call costs, that mobile phones had<br />
increased <strong>the</strong>ir profits. AME governments are looking to wireless broadband to benefit education,<br />
healthcare and overall economic development, and operators see an opportunity to build<br />
<strong>the</strong>ir business while benefiting <strong>the</strong> communities <strong>the</strong>y serve.<br />
Jose R. Figueroa is Corporate Vice President and Regional Manager of Motorola Networks, Europe, Middle East and Africa (EMEA) and<br />
Latin America & <strong>the</strong> Caribbean. Mr Figueroa previously served in various leadership roles at Motorola, including as general manager for<br />
<strong>the</strong> East region of <strong>the</strong> United States and in executive positions in Motorolaʼs paging sector, personal communications group and cellular<br />
subscriber sector.<br />
Ali Amer is <strong>the</strong> Senior Director of Sales for Motorola Networks & Enterpriseʼs Middle East, North Africa and Pakistan (MENAPAK) region.<br />
Since joining Motorola, he has held a number of engineering and business management positions, including as Motorolaʼs Director of<br />
Sales for North Africa and General Manager for Motorola Morocco. He was previously a research engineer for Motorola in <strong>the</strong> USA in <strong>the</strong><br />
Advanced Manufacturing Technology Organization, and holds a patent in technology development.<br />
We have already witnessed <strong>the</strong> mobile telecommunications<br />
industryʼs first major phase<br />
of expansion in North America, Western Europe<br />
and parts of Asia. While <strong>the</strong> transition<br />
to ʻmature marketʼ status in <strong>the</strong>se regions has<br />
been impressive, we can soon expect <strong>the</strong> same<br />
growth and momentum, and anticipate <strong>the</strong><br />
increase in subscriber numbers, in emerging<br />
territories. In just five years, ano<strong>the</strong>r one billion<br />
people will connect to mobile networks<br />
- a landmark that operators in Africa and <strong>the</strong><br />
Middle East will play a key role in achieving.<br />
The potential for fur<strong>the</strong>r expansion is even<br />
more exciting. By 2010, <strong>the</strong> Middle East will<br />
double its mobile subscriber base. In Africa,<br />
market experts anticipate that <strong>the</strong> market<br />
will expand by 137 per cent between 2004<br />
and 2008. Interestingly, although subscriber<br />
number projections from an IDC study for<br />
Nigeria show an increase from 3,093,615 to<br />
17,233,440 over <strong>the</strong> five-year period to 2008<br />
and in Kenya from 1,623,848 to 4 million,<br />
<strong>the</strong> figures represent just over a tenth of <strong>the</strong>se<br />
countries respective populations.<br />
Indeed, <strong>the</strong> Middle East and African markets<br />
will be prominent players in fuelling <strong>the</strong> mobile<br />
industryʼs second phase of growth, that<br />
will see <strong>the</strong> worldwide population of mobile<br />
users increase by 33 per cent to three billion<br />
by 2010.<br />
Particularly in <strong>the</strong> Middle East and Africa,<br />
wireless solutions can dramatically impact<br />
peopleʼs lives, which accounts for <strong>the</strong> strong<br />
demand we see today and will continue to see<br />
into <strong>the</strong> future. In addition, <strong>the</strong>re is a growing<br />
recognition that <strong>the</strong> availability of mobile<br />
phones stimulates <strong>the</strong> economy: <strong>the</strong>y enable<br />
farmers and fishermen to check prices before<br />
leaving for market, people can easily transfer<br />
money and workers can locate and maintain<br />
employment. The Centre for Economic Policy<br />
Research highlighted some of <strong>the</strong>se factors in<br />
a 2005 survey of mobile customers in Africa.<br />
It concluded that mobiles save travel time for<br />
people living in rural communities - 85 per<br />
cent of <strong>the</strong> respondents in Tanzania and 79 per<br />
cent in South Africa said <strong>the</strong>y had enhanced<br />
contact and relationships with families and<br />
friends as a result of being connected.<br />
On <strong>the</strong> business front, 62 per cent of small<br />
businesses in South Africa and 59 per cent in<br />
Egypt believe, despite call costs, that mobile<br />
phones had increased <strong>the</strong>ir profits. As part of<br />
<strong>the</strong> same LBS School study, <strong>the</strong> researchers<br />
concluded that for every increase of ten mobile<br />
phones per 100 people, GDP increases by<br />
0.6 per cent per year.<br />
The core strategy of ensuring that low-cost<br />
technological solutions can deliver high performance<br />
is carried over into network design.<br />
There is a growing belief that networks in<br />
emerging markets must provide from <strong>the</strong> outset,<br />
or through upgrade, <strong>the</strong> option to support<br />
a broad range of services, albeit with changes<br />
to traditional configurations to address <strong>the</strong> particular<br />
topographical and revenue challenges<br />
presented in each market.<br />
Todayʼs more affordable wireless solutions remove<br />
limits for service providers in both high<br />
growth and mature markets. The efficiency is<br />
achieved by incorporating micro base stations<br />
for rural connectivity, backhaul offerings for<br />
call transmission (that can be routed locally),<br />
and a media gateway for lower call transport<br />
costs. When <strong>the</strong> signal between a phone and<br />
base station is strong, both <strong>the</strong> handset and<br />
<strong>the</strong> station use less power to stay in touch - a<br />
clever feature that enhances battery life. Continuing<br />
<strong>the</strong> power <strong>the</strong>me, high power macro<br />
base stations now available mean that operators<br />
need to run fewer of <strong>the</strong>m. Today, <strong>the</strong>re<br />
is also a wide range of power solutions available;<br />
<strong>the</strong>se include wind and solar options to<br />
drive base stations where access to electricity<br />
is scarce.<br />
The use of wireless or satellite technologies to<br />
connect mobile engineers over IP with a central<br />
maintenance centre reduces maintenance<br />
overhead. Facilities that combine database,<br />
fault management and traffic analysis in a single<br />
operation fur<strong>the</strong>r reduce overhead.<br />
Issue 2006 33
Wireless<br />
Africa and <strong>the</strong> Middle East (AME) markets<br />
are increasingly looking beyond voice services<br />
to ways that wireless broadband can benefit<br />
education, healthcare and overall economic<br />
development. WiMax and unlicensed mobile<br />
broadband systems will be available this year<br />
to extend <strong>the</strong> data options. These IP-based access<br />
mechanisms lower <strong>the</strong> cost of supplying<br />
high-speed data and provide <strong>the</strong> option of easily<br />
upgrading networks as customersʼ expectations<br />
evolve.<br />
New cost-effective technologies for emerging<br />
markets<br />
It is clear that demand is strong in emerging<br />
markets and growth in subscriber numbers will<br />
be unprecedented - easily surpassing <strong>the</strong> most<br />
aggressive expansion phases experienced in<br />
<strong>the</strong> now mature markets.<br />
Operators should <strong>the</strong>refore consider systems<br />
that combine high-volume call capabilities<br />
with <strong>the</strong> ability, as needed, to add data services<br />
easily. There is a growing realization in<br />
many countries that communications play a<br />
fundamental role in economic health. As governments<br />
seek to address <strong>the</strong> technical divide<br />
between developed and developing regions,<br />
operators have a significant opportunity to fulfil<br />
<strong>the</strong>ir business objectives while benefiting<br />
<strong>the</strong> communities within which <strong>the</strong>y work.<br />
When assessing <strong>the</strong> network infrastructure to<br />
support <strong>the</strong>se objectives, itʼs important to bear<br />
in mind that working in emerging markets requires<br />
intelligent solutions to technical challenges.<br />
The remarkable range of technologies<br />
available to telecoms providers today, combined<br />
with changing customer demand, leaves<br />
operators in <strong>the</strong> AME region with <strong>the</strong><br />
dilemma of how best to provide affordable,<br />
high-capacity voice products and<br />
deliver value-added wireless broadband.<br />
In addition, operators need practical<br />
strategies to combine fixed and<br />
mobile services all in one franchise.<br />
Indeed, providers in <strong>the</strong> AME need to<br />
understand <strong>the</strong> complete range of business<br />
models available to <strong>the</strong>m.<br />
Acquisition, flexibility and coverage<br />
Wireless broadband offers three core<br />
advantages. It is cost-efficient to acquire,<br />
it is flexible and it expands <strong>the</strong><br />
range of options available to create, enhance<br />
and extend coverage.<br />
The technology enables <strong>the</strong> wireless<br />
delivery of premium services with <strong>the</strong><br />
high levels of security and quality of<br />
service associated with fixed-line networks;<br />
additionally, <strong>the</strong>re is no need for<br />
expensive overhead or ground wires,<br />
microwave or complex control software.<br />
Wireless systems provide highly<br />
cost-effective alternatives for backhaul<br />
(connection to <strong>the</strong> backbone network)<br />
and leased line connection. Since a great many<br />
consumers and businesses have broadband<br />
and WiFi subscriptions, <strong>the</strong>y are familiar with<br />
access devices; for that reason, <strong>the</strong>y can install<br />
<strong>the</strong>ir own customer premise equipment, CPE<br />
at a considerable cost saving.<br />
Based on IP protocols, wireless broadband<br />
is inherently flexible; systems can be used to<br />
provision services from scratch or integrated<br />
into existing networks. Put simply, <strong>the</strong> technology<br />
enables service providers to reach<br />
more people more easily. It supports a range<br />
of existing and new business models. Wireless<br />
provides residential broadband for converged<br />
fixed/mobile voice and data services. Wireless<br />
can also provide and maintain high capacity<br />
private networks or even ʻlightʼ a city with<br />
wireless connectivity for public access, public<br />
works and public safety.<br />
The catalyst for innovation<br />
The term revolutionary is used and abused to<br />
describe new technology, but wireless broadband<br />
as <strong>the</strong> catalyst for a new cycle of innovation<br />
is just that - revolutionary.<br />
Wireless innovation, seen in municipalities,<br />
campuses and enterprises, brings universal<br />
broadband access and improves productivity,<br />
promotes knowledge transfer and collaboration<br />
and improves security and safety. Wireless<br />
innovation is helping areas throughout <strong>the</strong><br />
world, blighted by <strong>the</strong> digital divide, gain access<br />
to <strong>the</strong> Internet and all its information and<br />
access to learning.<br />
Benefiting from <strong>the</strong> low cost of IP technology,<br />
WiMax promises to deliver economical, highspeed,<br />
wireless broadband. Traditional GSM<br />
operators in Middle East and Africa can benefit<br />
by using WiMax to generate an alternative<br />
revenue stream and to enter <strong>the</strong> fixed market<br />
using <strong>the</strong> latest wireless broadband technologies.<br />
With faster interface speeds, <strong>the</strong> services that<br />
subscribers can access will dramatically advance.<br />
Application developers are harnessing<br />
broadband delivery speeds to create new and<br />
exciting ways to interact with content; this<br />
will <strong>make</strong> communication more intuitive, realistic<br />
and fun. Video and group conferencing<br />
will also enrich communications. Enhanced<br />
devices that support Internet, digital video<br />
broadcasts, video capture, music and gaming<br />
will transform entertainment. Given <strong>the</strong> speed<br />
of broadband, downloading an album will take<br />
less than a minute, subscribers will play games<br />
with o<strong>the</strong>rs across <strong>the</strong> network, and planning<br />
and navigating a trip will require little more<br />
than a mobile device.<br />
The development of a variety of innovative<br />
wireless broadband access technologies has<br />
enabled new business models. Service providers,<br />
testing and implementing <strong>the</strong>se new<br />
technologies and business models, are fostering<br />
significant structural change within <strong>the</strong><br />
industry.<br />
Convergence of fixed and mobile services<br />
Relationships between operators, services and<br />
<strong>the</strong> customer have been governed by <strong>the</strong> limitations<br />
of technology. Subscribers have often<br />
needed at least two suppliers - one for mobile,<br />
ano<strong>the</strong>r for broadband and fixed-line services.<br />
Wireless broadband based on IP removes <strong>the</strong><br />
technical barriers that separate <strong>the</strong> cellular,<br />
cable and fixed environments. Converged<br />
services, like fixed-mobile substitution using<br />
wireless broadband are already available. Fur<strong>the</strong>rmore,<br />
<strong>the</strong> implementation of IP standards<br />
for core network interaction, <strong>the</strong> level of convergence<br />
and competition is set to increase. By<br />
2010, according to a study by Maravedis, <strong>the</strong><br />
global market for wireless broadband equipment<br />
should reach US$4 billion.<br />
Challenge usually comes with opportunity.<br />
The wireless broadband sector is no different.<br />
In addition to intense competition, companies<br />
seeking to market wireless broadband face an<br />
array of infrastructure options, from WiMax,<br />
to unlicensed spectrum interfaces, to mesh networks,<br />
to backhaul and broadband over power<br />
lines. Whatever solutions operators in Africa<br />
and <strong>the</strong> Middle East choose, <strong>the</strong> ultimate winners<br />
will be <strong>the</strong> subscribers. They will gain<br />
entry to a new world of economic and communications<br />
potential. <br />
34 Issue 2006
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Ismael Fikree, CTO, MTC Vodafone, Bahrain<br />
Karim Khoja, CEO, Roshan, Afghanistan<br />
Eng. Khaled Marmoush, CIO, Telecom Egypt<br />
Khalid Al Kaf, CEO, Mobily, Saudi Arabia<br />
Majd Shweikeh, CEO, MobileCom, Jordan<br />
Marwan Zawaydeh, Group CTO, Board Director,<br />
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Medhat Amer, CIO, Fastlink, MTC, Jordan<br />
Mohammed Al Qamzi CEO, Etisalat, UAE<br />
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36<br />
Saved
Digital Inclusion and Corporate Responsibility<br />
Africa and <strong>the</strong> Middle East - broadband<br />
access for growth<br />
by Paul Bell, Senior Vice President, Dell EMEA<br />
Broadband access will not solve all of <strong>the</strong> regionʼs problems, but broadband can <strong>make</strong> a huge<br />
difference in local economies and bring much needed services affordably to local communities.<br />
Even in developed nations, more than 25 per cent of GDP growth results from information<br />
technology. Investment in computer literacy skills, at all levels, is important. The cooperation<br />
of global ITC companies in local literacy, health and technology programmes is essential to<br />
improve <strong>the</strong> quality of life and digital access.<br />
Paul Bell is Dellʼs Senior Vice President for Europe, Middle East and Africa (EMEA), responsible for all business operations and manufacturing<br />
activities across <strong>the</strong> region. Prior to his current role, Mr Bell served as Senior Vice President and General Manager of <strong>the</strong> <strong>World</strong>wide<br />
Home and Small Business Group. Prior to joining Dell, Mr Bell was a consultant with Bain and Company.<br />
Mr Bell has Bachelorʼs Degrees in fine arts and business administration from Pennsylvania State University, and an MBA from <strong>the</strong> Yale<br />
School of Organisation and Management.<br />
There is no doubt that <strong>the</strong> Internet has revolutionised<br />
<strong>the</strong> world, from <strong>the</strong> way a business<br />
operates to how it connects, informs and entertains<br />
consumers. The Internet has become<br />
such an integral part of society that many of us<br />
agree that we would not be able to live without<br />
it. So what of those countries and regions that<br />
do not have <strong>the</strong> technical infrastructure for Internet<br />
access, let alone <strong>the</strong> convenience of <strong>the</strong><br />
services, such as buying groceries online, that<br />
it brings<br />
It is important to acknowledge that broadband<br />
access may not be an immediate priority for<br />
some countries, especially those that do not<br />
have widespread access to computers. Governments<br />
hold <strong>the</strong> responsibility for long-term<br />
infrastructure implementation and planning,<br />
and it is important that experienced technology<br />
practitioners and organisations <strong>make</strong><br />
<strong>the</strong>mselves available to offer advice and consultation.<br />
Global and local businesses have an<br />
important part to play in broadening exposure,<br />
both to technology and new methods of communication.<br />
Digital access has <strong>the</strong> power to<br />
<strong>make</strong> huge differences on a community and<br />
country level. Broadband will fur<strong>the</strong>r enhance<br />
local technology markets and in turn encourage<br />
foreign investment, which will quicken<br />
<strong>the</strong> cycle of development.<br />
Whilst it is difficult to <strong>make</strong> generalisations<br />
about a region that is so diverse and with such<br />
varying economic and political challenges, our<br />
view is that broadband access in <strong>the</strong> Middle<br />
East and Africa, MEA, should be universally<br />
available to those who want it.<br />
The challenge of regional differences<br />
The regions within <strong>the</strong> MEA vary widely in<br />
<strong>the</strong>ir cultures, geography, economies and politics.<br />
Between <strong>the</strong>m, <strong>the</strong>re are more than 50<br />
countries, ranging from <strong>the</strong> African islands of<br />
<strong>the</strong> Seychelles to <strong>the</strong> small but wealthy federate<br />
state of United Arab Emirates, UAE. Politically,<br />
<strong>the</strong>re are monarchies, military and<br />
civilian republics and constitutional democracies.<br />
There are countries recovering from civil<br />
war and those that face problems of political<br />
unrest, famine and drought.<br />
The diversity of community and culture is also<br />
reflected in <strong>the</strong> adoption of technology and access<br />
to communication networks. In general,<br />
“Internet usage figures vary<br />
greatly, not only between Africa<br />
and <strong>the</strong> Middle East but<br />
also within each region. Only<br />
eight of <strong>the</strong> 57 countries that<br />
<strong>make</strong> up Africa have Internet<br />
penetration of more than<br />
seven per cent. Among those<br />
with <strong>the</strong> highest penetrations<br />
are Morocco at 11.6 per cent<br />
and South Africa at 7.4 per<br />
cent.”<br />
<strong>the</strong> Middle East has progressed fur<strong>the</strong>r than<br />
Africa in making widespread access to technology<br />
available. Taking <strong>the</strong>se differences into<br />
consideration, it is clear that <strong>the</strong> introduction<br />
of broadband across MEA will not be a ʻone<br />
size solution fits allʼ situation.<br />
Broadband access vs. Internet access vs.<br />
computer access<br />
Narrowing <strong>the</strong> divide between those who are<br />
more fortunate than o<strong>the</strong>rs by improving access<br />
to information technology is one of <strong>the</strong><br />
greatest challenges facing governments and<br />
<strong>the</strong> private sector in <strong>the</strong> region. The current<br />
reality for many MEA countries is that, before<br />
even beginning to consider broadband access,<br />
providing access to computers is <strong>the</strong> priority.<br />
For example, in Sub-Saharan Africa fewer<br />
than two in 100 people have direct access to<br />
a computer.<br />
Internet usage figures vary greatly, not only<br />
between Africa and <strong>the</strong> Middle East but also<br />
within each region. Only eight of <strong>the</strong> 57 countries<br />
that <strong>make</strong> up Africa have Internet penetration<br />
of more than seven per cent. Among<br />
those with <strong>the</strong> highest penetrations are Morocco<br />
at 11.6 per cent and South Africa at 7.4<br />
per cent. In <strong>the</strong> Middle East, as expected, Internet<br />
penetration is higher. In fact, in only a<br />
quarter of <strong>the</strong> 14 countries that <strong>make</strong> up <strong>the</strong><br />
Middle East is Internet access less than ten per<br />
cent. These Internet penetration figures from<br />
internetworldstats give a fair representation<br />
Issue 2006 37
Digital Inclusion and Corporate Responsibility<br />
Africa and <strong>the</strong> Middle East - broadband<br />
access for growth<br />
by Paul Bell, Senior Vice President, Dell EMEA<br />
Broadband access will not solve all of <strong>the</strong> regionʼs problems, but broadband can <strong>make</strong> a huge<br />
difference in local economies and bring much needed services affordably to local communities.<br />
Even in developed nations, more than 25 per cent of GDP growth results from information<br />
technology. Investment in computer literacy skills, at all levels, is important. The cooperation<br />
of global ITC companies in local literacy, health and technology programmes is essential to<br />
improve <strong>the</strong> quality of life and digital access.<br />
Paul Bell is Dellʼs Senior Vice President for Europe, Middle East and Africa (EMEA), responsible for all business operations and manufacturing<br />
activities across <strong>the</strong> region. Prior to his current role, Mr Bell served as Senior Vice President and General Manager of <strong>the</strong> <strong>World</strong>wide<br />
Home and Small Business Group. Prior to joining Dell, Mr Bell was a consultant with Bain and Company.<br />
Mr Bell has Bachelorʼs Degrees in fine arts and business administration from Pennsylvania State University, and an MBA from <strong>the</strong> Yale<br />
School of Organisation and Management.<br />
There is no doubt that <strong>the</strong> Internet has revolutionised<br />
<strong>the</strong> world, from <strong>the</strong> way a business<br />
operates to how it connects, informs and entertains<br />
consumers. The Internet has become<br />
such an integral part of society that many of us<br />
agree that we would not be able to live without<br />
it. So what of those countries and regions that<br />
do not have <strong>the</strong> technical infrastructure for Internet<br />
access, let alone <strong>the</strong> convenience of <strong>the</strong><br />
services, such as buying groceries online, that<br />
it brings<br />
It is important to acknowledge that broadband<br />
access may not be an immediate priority for<br />
some countries, especially those that do not<br />
have widespread access to computers. Governments<br />
hold <strong>the</strong> responsibility for long-term<br />
infrastructure implementation and planning,<br />
and it is important that experienced technology<br />
practitioners and organisations <strong>make</strong><br />
<strong>the</strong>mselves available to offer advice and consultation.<br />
Global and local businesses have an<br />
important part to play in broadening exposure,<br />
both to technology and new methods of communication.<br />
Digital access has <strong>the</strong> power to<br />
<strong>make</strong> huge differences on a community and<br />
country level. Broadband will fur<strong>the</strong>r enhance<br />
local technology markets and in turn encourage<br />
foreign investment, which will quicken<br />
<strong>the</strong> cycle of development.<br />
Whilst it is difficult to <strong>make</strong> generalisations<br />
about a region that is so diverse and with such<br />
varying economic and political challenges, our<br />
view is that broadband access in <strong>the</strong> Middle<br />
East and Africa, MEA, should be universally<br />
available to those who want it.<br />
The challenge of regional differences<br />
The regions within <strong>the</strong> MEA vary widely in<br />
<strong>the</strong>ir cultures, geography, economies and politics.<br />
Between <strong>the</strong>m, <strong>the</strong>re are more than 50<br />
countries, ranging from <strong>the</strong> African islands of<br />
<strong>the</strong> Seychelles to <strong>the</strong> small but wealthy federate<br />
state of United Arab Emirates, UAE. Politically,<br />
<strong>the</strong>re are monarchies, military and<br />
civilian republics and constitutional democracies.<br />
There are countries recovering from civil<br />
war and those that face problems of political<br />
unrest, famine and drought.<br />
The diversity of community and culture is also<br />
reflected in <strong>the</strong> adoption of technology and access<br />
to communication networks. In general,<br />
“Internet usage figures vary<br />
greatly, not only between Africa<br />
and <strong>the</strong> Middle East but<br />
also within each region. Only<br />
eight of <strong>the</strong> 57 countries that<br />
<strong>make</strong> up Africa have Internet<br />
penetration of more than<br />
seven per cent. Among those<br />
with <strong>the</strong> highest penetrations<br />
are Morocco at 11.6 per cent<br />
and South Africa at 7.4 per<br />
cent.”<br />
<strong>the</strong> Middle East has progressed fur<strong>the</strong>r than<br />
Africa in making widespread access to technology<br />
available. Taking <strong>the</strong>se differences into<br />
consideration, it is clear that <strong>the</strong> introduction<br />
of broadband across MEA will not be a ʻone<br />
size solution fits allʼ situation.<br />
Broadband access vs. Internet access vs.<br />
computer access<br />
Narrowing <strong>the</strong> divide between those who are<br />
more fortunate than o<strong>the</strong>rs by improving access<br />
to information technology is one of <strong>the</strong><br />
greatest challenges facing governments and<br />
<strong>the</strong> private sector in <strong>the</strong> region. The current<br />
reality for many MEA countries is that, before<br />
even beginning to consider broadband access,<br />
providing access to computers is <strong>the</strong> priority.<br />
For example, in Sub-Saharan Africa fewer<br />
than two in 100 people have direct access to<br />
a computer.<br />
Internet usage figures vary greatly, not only<br />
between Africa and <strong>the</strong> Middle East but also<br />
within each region. Only eight of <strong>the</strong> 57 countries<br />
that <strong>make</strong> up Africa have Internet penetration<br />
of more than seven per cent. Among<br />
those with <strong>the</strong> highest penetrations are Morocco<br />
at 11.6 per cent and South Africa at 7.4<br />
per cent. In <strong>the</strong> Middle East, as expected, Internet<br />
penetration is higher. In fact, in only a<br />
quarter of <strong>the</strong> 14 countries that <strong>make</strong> up <strong>the</strong><br />
Middle East is Internet access less than ten per<br />
cent. These Internet penetration figures from<br />
internetworldstats give a fair representation<br />
Issue 2006 37
Digital Inclusion and Corporate Responsibility<br />
of <strong>the</strong> potential for broadband adoption across<br />
MEA. It is likely that countries with established<br />
technology markets, such as <strong>the</strong> UAE,<br />
or an advanced telecommunications market,<br />
like Israel, will lead <strong>the</strong> way for widespread<br />
broadband adoption and be among <strong>the</strong> first to<br />
benefit from its potential.<br />
Digital access improves <strong>the</strong> quality of life<br />
Prior to <strong>the</strong> introduction of broadband, investment<br />
in education, including <strong>the</strong> teaching of<br />
basic computer literacy skills at all levels, is<br />
important. Personal computer technology has<br />
progressed; it is now more user-friendly and<br />
<strong>the</strong>refore digital access for everyone<br />
- independent of IT literacy - is<br />
more easily achievable. Governments<br />
and businesses have a vital<br />
role to play to ensure that everyone<br />
has a good education and an opportunity<br />
to learn IT skills. In recognition<br />
of this, Dell South Africa<br />
commits a defined percentage of its<br />
sales revenue to <strong>the</strong> Dell Foundation<br />
that focuses on literacy, health<br />
and technology to improve <strong>the</strong><br />
quality of life and digital access.<br />
The foundation has made a considerable<br />
impact on <strong>the</strong> basic education<br />
needs in parts of rural South<br />
Africa by providing computers and<br />
training teachers, enabling <strong>the</strong>m<br />
to pass on basic IT skills to <strong>the</strong><br />
next generation of South Africans.<br />
Since January 2005, <strong>the</strong> foundation<br />
has donated more than 1,000 desktops<br />
to 374 schools in mainly rural<br />
areas and provided IT training to<br />
more than 268 teachers.<br />
On a business level, <strong>the</strong> foundation runs an<br />
Enterprise Development programme. The<br />
foundation, for example, trained a young<br />
man called Moffat Sebolelo in small-business<br />
skills, and donated a computer and vehicle to<br />
him. Previously he was collecting rubbish for<br />
tips, now he runs a successful cleaning services<br />
company and employs up to 20 staff.<br />
Digital access impacts on <strong>the</strong> economy<br />
Investment in technology has proven to influence<br />
economic growth. A study by <strong>the</strong> UNʼs<br />
International Telecommunications Union,<br />
ITU, recently found that 27 per cent of <strong>the</strong><br />
GDP growth in <strong>the</strong> G7 nations from 1995-<br />
2003 was a result of investments in information<br />
technology. Consider <strong>the</strong> impact, <strong>the</strong>refore,<br />
of introducing broadband to MEA and<br />
its potential to translate into real economic<br />
opportunity, greater productivity and employment<br />
opportunities.<br />
Boosting <strong>the</strong> domestic technology industry<br />
has wider implications. Businesses should<br />
view technology as a vehicle to aid business<br />
performance. For example, better sales and<br />
marketing contribute to increased revenues,<br />
which in turn influence <strong>the</strong> wider economic<br />
environment. In a developing domestic IT<br />
market, <strong>the</strong> more access <strong>the</strong>re is, <strong>the</strong> greater<br />
demand <strong>the</strong>re will be for related technology<br />
services. This is also <strong>the</strong> case with broadband<br />
- as demand increases, <strong>the</strong> market grows, outside<br />
investment increases and competition<br />
becomes more prevalent. This leads to lower<br />
costs, making access to computer technology<br />
and broadband access more affordable for<br />
businesses and consumers alike.<br />
Digital Inclusion: Africa & <strong>the</strong> Middle East must<br />
be empowered to catch up with <strong>the</strong> rest of <strong>the</strong><br />
world<br />
Working with business leaders and trend-setters<br />
to improve <strong>the</strong> future of technology access<br />
within different geographical locations will<br />
help create access to broadband for everyone.<br />
There are numerous examples of multinationals<br />
working with local companies to improve<br />
<strong>the</strong>ir ability to deal with <strong>the</strong> expected Middle<br />
Eastern growth in technology related activity.<br />
Government contribution<br />
Global companies have a responsibility to<br />
work with government policy<strong>make</strong>rs on technology<br />
related issues that benefit <strong>the</strong> social<br />
and economic environment. Governments that<br />
have encouraged <strong>the</strong> implementation and use<br />
of technology quickly see <strong>the</strong> benefits. The<br />
UAE opened its Dubai Internet City, DIC in<br />
2000, specifically aimed at encouraging <strong>the</strong><br />
development of both large and small information<br />
and communications technology, ICT<br />
businesses in Dubai. DIC offers 100 per cent<br />
tax exemption to DIC companies plus a multitude<br />
of managed services such as an advanced<br />
E<strong>the</strong>rnet network and <strong>the</strong> worldʼs largest IP<br />
telephony network. Many of <strong>the</strong> worldʼs leading<br />
technology companies now have offices in<br />
DIC, as do many small to medium businesses<br />
and ICT start-ups. This proactive encouragement<br />
of a local IT market with a global outlook<br />
means <strong>the</strong>re is already a market of potential<br />
broadband customers.<br />
In some countries, governments have taken<br />
proactive measures to fur<strong>the</strong>r <strong>the</strong> introduction<br />
of broadband. For example, in South Africa,<br />
in May this year, <strong>the</strong> communications minister<br />
committed to ensuring that <strong>the</strong> countryʼs<br />
broadband infrastructure is able to meet <strong>the</strong><br />
socio-economic, business and scientific developments.<br />
There is no doubt that communication<br />
networks are crucial to broadband development.<br />
In many ways, developing<br />
countries that are starting from scratch<br />
have an advantage, as <strong>the</strong>y have <strong>the</strong><br />
opportunity to bypass older, less efficient<br />
systems and go to straight to<br />
broadband strength communication<br />
networks. This is more cost effective<br />
than building a traditional telecommunications<br />
network and <strong>the</strong>n having<br />
to upgrade it to a higher bandwidth<br />
within a very short timeframe. Choosing<br />
to take this path brings great benefits,<br />
as it fast tracks those that follow<br />
it into <strong>the</strong> broadband-ready world.<br />
Hardware and related technology<br />
providers must be ready to help consumers<br />
and businesses realise <strong>the</strong> rewards,<br />
and a return on investment, of<br />
<strong>the</strong>se new technologies.<br />
Information technology has contributed<br />
enormously to <strong>the</strong> world we live in.<br />
The Internet is an accepted and integrated<br />
part of everyday life in most of Europe.<br />
It has also been proven that investment in IT<br />
is directly related to economic growth. Broadband<br />
will bring fur<strong>the</strong>r technological and business<br />
opportunities. Despite <strong>the</strong> differences in<br />
population density, cultures and wealth across<br />
<strong>the</strong> Middle East and Africa, we believe that<br />
broadband access is a basic necessity throughout<br />
<strong>the</strong> region. It would be good if everyone<br />
had <strong>the</strong> opportunity to take advantage of this<br />
new technological revolution. It is important,<br />
however, to view this in perspective, as many<br />
MEA countries face greater, more basic survival<br />
challenges than this. The aim is to increase<br />
access to broadband and technology, but also<br />
- in preparation for this - encourage domestic<br />
IT markets and quality education incorporating<br />
IT skills. It is <strong>the</strong> responsibility of global<br />
companies to work with MEA businesses and<br />
governments to fur<strong>the</strong>r technological development<br />
and broadband adoption, for <strong>the</strong> benefit<br />
of <strong>the</strong> global integration and development of<br />
regional economies. <br />
Issue 2006 39
Triple Play<br />
Triple play in Africa - a pipe dream<br />
by Desi Lopez Fafié – Managing Director, African<br />
Operations, Oracle Corporation<br />
Considering <strong>the</strong> way people are accustomed to interact, <strong>the</strong> way business is commonly conducted<br />
and <strong>the</strong> way services are traditionally delivered, triple play - <strong>the</strong> delivery of Internet,<br />
video and telephony using a common protocol and transmission channels, is a disruptive technology<br />
that will change each of <strong>the</strong>se activities profoundly. For Africa, early commitment to<br />
broadband and triple play is a way to cost effectively and quickly bring its people many of <strong>the</strong><br />
economic, educational, health and leisure benefits found in highly developed regions.<br />
Desi Lopez Fafié is <strong>the</strong> Managing Director of African Operations for Oracle Corporation. He has held a variety of key positions at Oracle<br />
before his appointment to his current position. For <strong>the</strong> past 19 years, he has been working in <strong>the</strong> IT industry, at MSA (later Dun & Bradstreet<br />
Software) prior to joining Oracle. Desi Lopez Fafié, an auditor by profession, educated in Europe, has held several positions in<br />
auditing firms and finance, including as Director of Finance at <strong>the</strong> University of Utrecht in <strong>the</strong> Ne<strong>the</strong>rlands. Mr Fafié speaks six European<br />
languages and one Asian language.<br />
A young Rwandan student at <strong>the</strong> University of<br />
<strong>the</strong> Witwatersrand in South Africa was relating<br />
his experiences as a refugee from Rwanda<br />
and <strong>the</strong> Democratic Republic of <strong>the</strong> Congo,<br />
DRC, in 1994, fleeing <strong>the</strong> military forces<br />
that were slaughtering Africans by <strong>the</strong>ir hundreds<br />
of thousands. “I was 13 years old and<br />
my most precious possession was a radio,” he<br />
said. “Even when we were in <strong>the</strong> middle of<br />
<strong>the</strong> Congolese jungle hundreds of kilometres<br />
from any settlement, we could pick up reports<br />
of troop activity on <strong>the</strong> radio, and that information<br />
saved our lives.”<br />
Like water, electricity and water-borne sewerage<br />
systems, that radio was a lifesaver. Not<br />
only was it a lifesaver, it was an inexpensive<br />
lifesaver. The broadcast infrastructure introduced<br />
to Africa during colonial times was<br />
rapidly extended to cover <strong>the</strong> entire continent;<br />
now, nearly all countries possess fairly good<br />
medium and short-wave coverage.<br />
Communications obviously also falls into <strong>the</strong><br />
category of essential infrastructure. Unlike<br />
broadcasting, communications infrastructure<br />
development lagged, and <strong>the</strong> costs of telecommunications<br />
have remained high. Access, until<br />
recently, was restricted due to cost<br />
and availability.<br />
Pervasive technologies built on common<br />
standards tend to become more<br />
affordable as <strong>the</strong>y mature. The huge<br />
demand for cellular telephony services,<br />
Internet access and television<br />
in Africa has highlighted <strong>the</strong> need to<br />
extend <strong>the</strong>se services beyond urban<br />
areas and into <strong>the</strong> larger part of rural Africa,<br />
and <strong>make</strong> <strong>the</strong>m affordable for more people. A<br />
lower-cost, pervasive telephone, Internet or<br />
digital broadcast system would certainly contribute<br />
towards accelerating socio-economic<br />
development.<br />
Government commitment<br />
African countries have recognised that if <strong>the</strong>y<br />
lag in making broadband available, Africa will<br />
once again fall behind in its development. It<br />
is testimony to <strong>the</strong> recognition those governments<br />
have given to <strong>the</strong> new trend in communications<br />
that <strong>the</strong>y began discussions with<br />
each o<strong>the</strong>r and have been planning for broadband<br />
for some years now. As recently as May<br />
this year, <strong>the</strong> West African Telecommunications<br />
Regulatorsʼ Assembly, WATRO, consisting<br />
of <strong>the</strong> ECOWAS, Economic Community<br />
of West African States, countries, agreed to<br />
create a common regulatory environment for<br />
<strong>the</strong> region that would foster more rapid and<br />
cost-effective telecommunications infrastructure.<br />
Just as importantly, WATRO agreed to<br />
encourage <strong>the</strong> separation of policy-<strong>make</strong>rs,<br />
regulators and service providers to ensure that<br />
competition and cost efficiency would drive<br />
“I was 13 years old and my most precious possession<br />
was a radio,” he said. “Even when we<br />
were in <strong>the</strong> middle of <strong>the</strong> Congolese jungle<br />
hundreds of kilometres from any settlement,<br />
we could pick up reports of troop activity<br />
on <strong>the</strong> radio, and that information saved our<br />
lives.”<br />
infrastructure into rural areas. According to<br />
WATROʼs provisions, each nationʼs legal<br />
framework should incorporate <strong>the</strong>se regulations<br />
by <strong>the</strong> end of 2007.<br />
The New Partnership for Africaʼs Development,<br />
NEPAD, ICT Infrastructure Programme<br />
- again, an initiative driven through co-operation<br />
among countries - has seen <strong>the</strong> birth of<br />
a massive broadband ICT network initiative.<br />
The NEPAD initiative consists of two projects<br />
- <strong>the</strong> East African and South African Development<br />
Community, SADC, countries, and <strong>the</strong><br />
West and North African countries - working<br />
toge<strong>the</strong>r, co-operating, to implement a network<br />
that will span <strong>the</strong> entire continent.<br />
What happens when you take three pervasive<br />
technologies, and roll <strong>the</strong>m into one Enter<br />
triple play, a catchy title given to <strong>the</strong> delivery<br />
of video, Internet and telephony across a standard<br />
protocol and on a choice of devices, from<br />
television to mobile phone to computer.<br />
It seems like an uncomfortable relationship,<br />
considering <strong>the</strong>y tend to use different technologies<br />
for delivery, different standards, and<br />
deliver different products. Looking at <strong>the</strong> latest<br />
triple play products that won<br />
awards from <strong>the</strong> International<br />
Engineering Consortium at <strong>the</strong><br />
Broadband <strong>World</strong> Forum Asia<br />
2006, this relationship is not<br />
(yet) a seamless one. The awardwinning<br />
products were television-based,<br />
but still needed a PC<br />
and a telephone handset to get a<br />
complete service. In addition, <strong>the</strong><br />
40 Issue 2006
Triple Play<br />
products were clearly for entertainment - a<br />
ʻnice to haveʼ ra<strong>the</strong>r than an essential tool.<br />
What, <strong>the</strong>refore, is its relevance to Africa,<br />
where fibre optic and even copper infrastructure<br />
is restricted mainly to cities Without<br />
even <strong>the</strong> basic infrastructure to support pervasive<br />
Internet access, <strong>the</strong> idea of triple play on<br />
broadband could really be regarded as a pipe<br />
dream.<br />
The infrastructure, however, is already beginning<br />
to take shape before commercially viable<br />
products have even come to market. Africa has<br />
jumped in early. Once commercially viable triple-play<br />
products come to market, <strong>the</strong>re may<br />
well be a full, Africa-wide broadband network<br />
to deliver <strong>the</strong>m.<br />
Application<br />
Even if <strong>the</strong> products were available and <strong>the</strong><br />
network in place, one could still question <strong>the</strong><br />
relevance of triple play. With <strong>the</strong> technology<br />
available today you can create your own<br />
mini-broadcast network over <strong>the</strong> Internet - one<br />
that links your TV with those of your friends<br />
- so you can all watch <strong>the</strong> same movie and<br />
post comments to each o<strong>the</strong>r on-screen. Still,<br />
apart from <strong>the</strong> novelty, this is not a compelling<br />
value proposition. Personally, I would ra<strong>the</strong>r<br />
have friends arrive at my house with a bag of<br />
snacks and a couple of drinks so we could all<br />
watch TV toge<strong>the</strong>r and talk to each o<strong>the</strong>r in <strong>the</strong><br />
old-fashioned way.<br />
The NEPAD E-Schools Demonstration Project<br />
brought <strong>the</strong> real potential of triple play home<br />
to me. The demonstration project called for a<br />
group of companies to co-operate to provide<br />
an e-learning programme to rural schools in<br />
Africa. This learning programme delivers an<br />
educational experience using computers, Internet<br />
access, television, and on-line interaction<br />
with o<strong>the</strong>r schools. In addition, a school<br />
administration system gives teachers <strong>the</strong> ability<br />
to manage <strong>the</strong> studentsʼ performance and<br />
curriculum content.<br />
“Africa is responding more<br />
swiftly to broadband, implementing<br />
it faster than it has<br />
ever done with any technology<br />
since colonial days when<br />
a broadcast network was regarded<br />
as essential to <strong>the</strong> wellbeing<br />
of <strong>the</strong> African countries’<br />
occupiers.”<br />
Satellite-connected Internet, digital satellite<br />
television, and a host of online content support<br />
<strong>the</strong> programme. A consortium that counts<br />
upon some of <strong>the</strong> biggest names in <strong>the</strong> ICT and<br />
allied sectors leads <strong>the</strong> effort to implement a<br />
demonstration e-learning project in seven African<br />
countries. The consortium members are<br />
Oracle, Cambridge-Hitachi, CompuTrainer,<br />
DHL, Evalunet, Fujitsu Siemens Computers,<br />
Intel, Learnthings, Markbook, Multichoice<br />
Africa, Mecer, Sentech, SES Astra and Xerox.<br />
Each of <strong>the</strong>se companies contributes a critical<br />
piece of <strong>the</strong> solution. Although <strong>the</strong> consortium<br />
members provide <strong>the</strong> connectivity and equipment,<br />
<strong>the</strong> schools, <strong>the</strong> local communities or<br />
governments still have to create rooms and<br />
libraries to accommodate <strong>the</strong> equipment. The<br />
television might reside in <strong>the</strong> library, <strong>the</strong> server<br />
computers should be located in a specially<br />
fitted-out computer-room, and o<strong>the</strong>r computers<br />
are located in <strong>the</strong> administrative offices -<br />
<strong>the</strong>re is a great deal of hardware, software and<br />
connectivity that has to go into supporting <strong>the</strong><br />
project.<br />
Triple-play products, potentially running off<br />
a single console, would reduce <strong>the</strong> logistical<br />
challenge of rolling out this type of infrastructure<br />
to <strong>the</strong> whole of Africa. In addition, by<br />
enhancing <strong>the</strong> interactivity still more, children<br />
could watch a documentary on <strong>the</strong> Discovery<br />
Channel, switch to <strong>the</strong> Internet to do some research,<br />
and <strong>the</strong>n chat to <strong>the</strong>ir cyber-friends in<br />
<strong>the</strong> next country about what <strong>the</strong>y are learning<br />
- all through <strong>the</strong> television set. Triple play is a<br />
powerful tool for development.<br />
This type of innovation is disruptive; it challenges<br />
<strong>the</strong> traditional educational methods and<br />
processes - it changes <strong>the</strong> way children learn<br />
and it changes <strong>the</strong> way teachers teach. Even<br />
without triple play, we have already seen how<br />
teachers in African countries, at schools which<br />
implemented <strong>the</strong> NEPAD E-Schools Demonstration<br />
Project, were changing <strong>the</strong>ir methods<br />
to take full advantage of <strong>the</strong> new learning material<br />
and access to information.<br />
If one extends this experience into <strong>the</strong> commercial<br />
market, <strong>the</strong> potential is enormous.<br />
That potential, however, can only be reached<br />
if a standard combining Internet, telephony<br />
- both fixed line and wireless - and broadcast<br />
services can be agreed upon to create a common<br />
working interface that ensures <strong>the</strong> seamless<br />
delivery of services. This highlights <strong>the</strong><br />
importance of African countries agreeing on a<br />
common regulatory environment for communications.<br />
Many major industry players have<br />
committed to <strong>the</strong> J2EE open standard for <strong>the</strong><br />
development of a telecommunications service<br />
delivery platform to support new services such<br />
as voice over IP, mobile and real-time applications.<br />
Companies can launch triple-play products<br />
- with huge commercial potential - using<br />
this service delivery platform.<br />
Africa is responding more swiftly to broadband,<br />
implementing it faster than it has ever<br />
done with any technology since colonial days<br />
when a broadcast network was regarded as essential<br />
to <strong>the</strong> well-being of <strong>the</strong> African countriesʼ<br />
occupiers. Given <strong>the</strong> success already<br />
achieved through regional co-operation by<br />
groups such as WATRO and NEPAD, I am optimistic<br />
that broadband will penetrate Africa<br />
faster than we expect. Better still, broadband<br />
will bring with it market-relevant, triple-play<br />
products and will allow countries to accelerate<br />
essential services, development such as<br />
education, healthcare and citizen services. Significantly,<br />
triple play brings a completely new<br />
way for people to do business and an important<br />
new way to drive regional development. <br />
Issue 2006 41
Data Security<br />
Mobile data security<br />
by Massimo Migliuolo, Vice President for <strong>the</strong> Global Mobile<br />
Vertical at Cisco Systems<br />
The rapid growth of broadband mobile data in Africa and <strong>the</strong> Middle East brings with it a<br />
series of challenges, including <strong>the</strong> question of Internet Protocol security. Unresolved security<br />
concerns could seriously hamper <strong>the</strong> widespread adoption of wireless data products and services.<br />
Operators who are not prepared to address security issues will face severe competitive<br />
pressures and, if <strong>the</strong> sector as a whole ignores <strong>the</strong> problem, government regulators are likely to<br />
impose solutions that could be costly and difficult to implement.<br />
Massimo Migliuolo is currently <strong>the</strong> Vice President for <strong>the</strong> Global Mobile Vertical at Cisco Systems. On August 1, 2006, he will take on a<br />
new role as Cisco Systemsʼ Vice President of Service Providers in Emerging Markets. Previously, Massimo Migliuolo worked at Lucent<br />
Technologies and at AT&T, where he was engaged in <strong>the</strong> development of <strong>the</strong>ir mobile market. Mr Migliuolo spent three years in <strong>the</strong> oil<br />
industry, before joining <strong>the</strong> telecommunications industry.<br />
Massimo Migliuolo graduated from <strong>the</strong> Bocconi University in Milan with a degree in Business Economics.<br />
The revenue for delivering wireless data is<br />
already exceeding most industry predictions<br />
in <strong>the</strong> Middle East and Africa region, MEA,<br />
which is growing faster than Western, Central<br />
and Eastern Europe. Spending on wireless data<br />
services in MEA is forecast to reach US$9 billion<br />
in <strong>the</strong> next three years. The use of cellular<br />
and wireless networks to deliver voice, video<br />
and data content brings a new dimension to <strong>the</strong><br />
broadband market and represents an exciting<br />
new source of revenue and margin for mobile<br />
operators. It also, however, introduces <strong>the</strong>m to<br />
an unfamiliar world of business and technical<br />
challenges, particularly in respect to Internet<br />
protocol, IP security.<br />
Our research indicates that in order to be successful<br />
in this potentially lucrative market,<br />
mobile operators must address <strong>the</strong> challenges<br />
of security. If left unresolved, customersʼ security<br />
concerns could become a serious obstacle<br />
to <strong>the</strong> widespread adoption of wireless<br />
data technology, products and services. If mobile<br />
operators are perceived as not adequately<br />
able to address <strong>the</strong> problems, o<strong>the</strong>r vendors<br />
could enter <strong>the</strong> space, or government regulators<br />
could impose solutions that are difficult<br />
and costly to implement. By successfully<br />
managing network security concerns, mobile<br />
operators can expand <strong>the</strong>ir revenue opportunities<br />
in two ways: first, by offering a new set of<br />
basic services to an ever-wider customer base;<br />
and second, by charging for select IP security<br />
solutions as value-added services.<br />
Consumer and enterprise security concerns<br />
Consumer and enterprise customers share<br />
several security concerns, including secure<br />
mobile content and access control, but each<br />
also faces independent challenges, such as <strong>the</strong><br />
assurance of business continuity and service<br />
guarantees on <strong>the</strong> part of enterprise customers<br />
(Table 1).<br />
Spam: clogging inboxes<br />
While spam is not strictly a security concern,<br />
it is an unwanted and potentially expensive<br />
nuisance. Spam can often bypass anti-spam<br />
filters and appear in e-mail inboxes. The potential<br />
to receive unwanted text messages on<br />
Table 1: Consumer and Enterprise Security Concerns<br />
mobile phones poses an even greater concern<br />
as consumer and enterprise customers do not<br />
want <strong>the</strong>se messages clogging <strong>the</strong>ir inboxes<br />
and diminishing <strong>the</strong>ir expensive mobile minutes.<br />
The U.S. Federal Communications Commission,<br />
FCC voted in August 2004 to ban all<br />
unauthorized text messages to mobile phones<br />
and pagers unless <strong>the</strong> user has given prior permission.<br />
A mobile data service will need to<br />
block spam not just to meet regulatory requirements<br />
but also, and perhaps more importantly,<br />
to meet customer demand for a clean inbox.<br />
Viruses: Infecting mobile devices<br />
While common in <strong>the</strong> wired data world, LibertyCrack<br />
2000, <strong>the</strong> first known virus for<br />
mobile devices, appeared on Palm mobile de-<br />
Concern Consumer Enterprise<br />
Spam X X<br />
Virus attacks X X<br />
Unrestricted<br />
access to inappropriate<br />
or adult sites<br />
Compliance with law<br />
enforcement directives<br />
Confidentiality X X<br />
Business continuity and<br />
X<br />
service guarantees<br />
X<br />
X<br />
X<br />
X<br />
42 Issue 2006
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Data Security<br />
The next generation of viruses could<br />
have <strong>the</strong> capability to record phone<br />
calls, shut down phone service, and<br />
even infect home office and<br />
corporate LAN, local area<br />
networks and WLAN, wireless<br />
LAN networks.<br />
vices, deleting all executables (Program files)<br />
in 2004. The virus serves as a long-needed<br />
wake-up call for mobile operators because<br />
<strong>the</strong> risk of virus infection through cell phones<br />
presents a significant threat to both consumer<br />
and enterprise customers. The next<br />
generation of viruses could have<br />
<strong>the</strong> capability to record phone calls,<br />
shut down phone services and even<br />
infect home office and corporate local<br />
area networks, LAN and wireless<br />
local area networks, WLAN,<br />
networks. Both virus and spam<br />
protection services will become a<br />
baseline requirement for a successful<br />
mobile data service<br />
Unrestricted access: Opening Pandoraʼs Box<br />
Teens and children have embraced mobile<br />
data applications, such as e-mail and Internet<br />
access. Parents, however, will not pay for Internet<br />
access services for <strong>the</strong>ir children unless<br />
<strong>the</strong>ir concerns about access to adult content<br />
websites are addressed. In <strong>the</strong> United Kingdom,<br />
mobile operators have signed a voluntary<br />
ʻcode of conductʼ to restrict proactively<br />
<strong>the</strong> access of children and teens to inappropriate<br />
content.<br />
If mobile operators do not provide an easy way<br />
to restrict access to adult sites, government<br />
regulators could step in and impose <strong>the</strong>ir own<br />
solutions, which could be technically difficult<br />
and expensive to comply with. If operators are<br />
proactive and work with government agencies<br />
to help control access, <strong>the</strong>y can potentially<br />
gain governmental allies, invaluable PR, and<br />
a perception of concern for families.<br />
with government regulations concerning ʻlawful<br />
interceptʼ. They must be able to respond to<br />
subpoenas from law-enforcement authorities<br />
to monitor <strong>the</strong> activities of certain users by examining<br />
message streams in real time.<br />
“Teens and children have embraced mobile<br />
data applications, such as e-mail and Internet<br />
access. Parents, however, will not pay for Internet<br />
access services for <strong>the</strong>ir children unless<br />
<strong>the</strong>ir concerns about access to adult content<br />
Websites are addressed.”<br />
For example, to avoid detection, criminals often<br />
share e-mail ʻdrop boxesʼ, shared e-mail<br />
accounts with a common password, and leave<br />
draft messages for one ano<strong>the</strong>r. The draft e-<br />
mails are never sent, so <strong>the</strong>y cannot be tracked.<br />
With mobile phones, this strategy becomes<br />
even more viable for criminals. In Europe,<br />
End-users need <strong>the</strong> assurance of data<br />
integrity even when using wireless<br />
connection<br />
where prepaid mobile access is more widespread,<br />
users can purchase prepaid mobile<br />
phone cards or chips and use <strong>the</strong>m to access<br />
<strong>the</strong> Internet. The purchase is a cash transaction,<br />
so <strong>the</strong> temporary service use cannot be traced.<br />
The mobile user can communicate unseen, and<br />
<strong>the</strong>n discard <strong>the</strong> device once <strong>the</strong> conversation<br />
is completed. Law enforcement personnel will<br />
want to know in real time what cell locations<br />
those types of contacts are coming in from so<br />
<strong>the</strong>y can take appropriate action. Mobile operators<br />
must learn to examine <strong>the</strong> bit stream in<br />
real time and identify <strong>the</strong> URL that leads to <strong>the</strong><br />
drop box, find <strong>the</strong> cell site, and immediately<br />
forward that information to <strong>the</strong> appropriate<br />
authorities.<br />
Confidentiality: Thwarting thieves<br />
For enterprise customers, protecting <strong>the</strong> privacy<br />
of <strong>the</strong>ir business communications is<br />
paramount. Mobile operators not only provide<br />
mobile-data transport to enterprise customers,<br />
<strong>the</strong>y must also provide appropriate encryption<br />
and au<strong>the</strong>ntication safeguards, including<br />
support for VPNs, virtual private networks.<br />
Mobile operators who have a wide-ranging<br />
customer base need a flexible approach to<br />
security delivery. For some customers, lower-level<br />
safeguards will satisfy <strong>the</strong>ir security<br />
needs, but o<strong>the</strong>rs will demand and<br />
be willing to pay for higher, more<br />
sophisticated levels of defence.<br />
Business guarantees: Taking responsibility<br />
In order for large enterprises to<br />
consider outsourcing network security,<br />
<strong>the</strong> services must be accompanied<br />
by business guarantees. All<br />
too often, operators focus on <strong>the</strong> technical<br />
challenges posed by security and overlook <strong>the</strong><br />
business challenges faced by <strong>the</strong>ir customers.<br />
The level of concern, which is directly related<br />
to confidentiality, is in direct proportion to <strong>the</strong><br />
value of <strong>the</strong> information transmitted over <strong>the</strong><br />
wires. Financial institutions managing mergers<br />
and acquisitions, and healthcare organizations<br />
handling patient medical records, can be<br />
held civilly and criminally liable for information<br />
that is left unprotected over <strong>the</strong> wireless<br />
infrastructure. Any findings of accidental or<br />
deliberate negligence can result in civil or governmental<br />
penalties and millions of dollars in<br />
fines. These businesses and organizations will<br />
expect <strong>the</strong>ir mobile service providers to share<br />
in this responsibility. Mobile operators must<br />
be prepared to accompany <strong>the</strong>ir service offers<br />
with business guarantees, to prove that <strong>the</strong>y<br />
are responsible and that <strong>the</strong>y recognize and<br />
understand <strong>the</strong> severity of <strong>the</strong> security risks.<br />
Law enforcement compliance: Playing <strong>the</strong><br />
informer<br />
Mobile operators must also be able to comply<br />
Checklist of capabilities<br />
For mobile operators, a successful contentdelivery<br />
strategy depends on <strong>the</strong> ability to<br />
Issue 2006 45
Data Security<br />
control what content is delivered to each<br />
subscriber. Content-delivery constraints<br />
arise from legal, cultural, corporate-policy<br />
and social-responsibility perspectives. Mobile<br />
operators must be able to address all of<br />
<strong>the</strong>se aspects, while also giving subscribers<br />
some choice and control in <strong>the</strong> content <strong>the</strong>y<br />
access. The questions in this section are designed<br />
to help mobile operators plan for <strong>the</strong><br />
service capabilities <strong>the</strong>ir customers will expect<br />
from <strong>the</strong>m.<br />
For <strong>the</strong> consumer market<br />
1. Do you have <strong>the</strong> ability to intervene in a<br />
text-message stream and examine whe<strong>the</strong>r<br />
it is spam or a legitimate e-mail Today,<br />
spam and viruses are perceived as technical<br />
problems. However, as mobile telecom<br />
becomes ubiquitous, <strong>the</strong>y will be viewed as<br />
social problems, providing an opportunity<br />
for legislators to establish controls that may<br />
be difficult and expensive for you to implement;<br />
and<br />
2. As your subscribers browse <strong>the</strong> Internet,<br />
do you have <strong>the</strong> ability to examine each<br />
URL and take appropriate action Examples<br />
might include blocking access to adult content<br />
URLs for under-age subscribers, and<br />
tracking and triggering law enforcement<br />
alerts if a URL is associated with suspected<br />
criminal activity.<br />
For <strong>the</strong> enterprise market<br />
1. What markets do you plan to target<br />
What security requirements are dictated by<br />
customer expectations, business practice or<br />
regulation The answer to <strong>the</strong>se questions<br />
will determine <strong>the</strong> appropriate security services<br />
you will need to deploy.<br />
2. Do you have <strong>the</strong> appropriate business<br />
guarantees to support your technical security<br />
implementations Your guarantee to back<br />
up your security assurances communicates<br />
a great deal to your customers about your<br />
level of investment in and commitment to<br />
<strong>the</strong> services you offer.<br />
Data security also<br />
involves Data Storage<br />
Security<br />
Delivering content over <strong>the</strong> mobile infrastructure<br />
offers exciting new sources of<br />
revenue for mobile operators - and security<br />
issues can be addressed successfully with<br />
<strong>the</strong> proper planning and deployment. We<br />
recommend that you consider <strong>the</strong> benefits<br />
listed below as you calculate your cost-value<br />
analysis.<br />
Mobile data transport can be an attractive<br />
service with a wide customer base. If<br />
enterprise or consumer customers do not<br />
believe <strong>the</strong> service is secure, however, <strong>the</strong>y<br />
will not use it.<br />
Customers are willing to pay for valueadded<br />
security capabilities. For example,<br />
some ISPs offer parents <strong>the</strong> option of blocking<br />
adult and o<strong>the</strong>r inappropriate URLs for<br />
an additional monthly service fee.<br />
Effective mobile-data security helps create<br />
customer loyalty by sending <strong>the</strong> message<br />
to consumers that you are an Internet<br />
service provider that cares about protecting<br />
<strong>the</strong>ir childrenʼs safety and well-being.<br />
Building <strong>the</strong> perception of secure transport<br />
around your mobile service adds value<br />
to your brand.<br />
“Any findings of accidental or deliberate negligence can result<br />
in civil or governmental penalties and millions of dollars<br />
in fines. These businesses and organizations will expect <strong>the</strong>ir<br />
mobile service providers to share in this responsibility.”<br />
<strong>Connect</strong>-<strong>World</strong> is<br />
celebrating its 10th year<br />
anniversary<br />
Through <strong>the</strong> years, <strong>Connect</strong>-<br />
<strong>World</strong>’s authors told of <strong>the</strong> rise<br />
of mobile, of fibre, of wireless<br />
and of broadband; <strong>the</strong>y told of<br />
<strong>the</strong> dot.com meltdown, of<br />
digital inclusion and convergence,<br />
of standards and breakthroughs,<br />
<strong>the</strong> rise of IP and<br />
<strong>the</strong> fall of switching and of <strong>the</strong><br />
regulatory turnaround.<br />
In every issue of <strong>Connect</strong>-<strong>World</strong><br />
heads of state, ministers and<br />
regulators, heads of<br />
international institutions and<br />
leaders of industry speak of<br />
what <strong>the</strong> ICT revolution, as it<br />
happens, means to <strong>the</strong> people<br />
in <strong>the</strong>ir regions of <strong>the</strong> world.<br />
Mobile security business benefits<br />
Mounting a proactive response to solving<br />
security threats keeps government regulators<br />
from imposing <strong>the</strong>ir solutions on your<br />
operations or, in extreme cases, from shutting<br />
down your business because of criminal<br />
activity associations. <br />
www.connect-world.com<br />
46 Issue 2006
Metropolitan Wireless Broadband<br />
The promise of metropolitan wireless broadband<br />
by Makoto Ikari, General Manager, Wireless Broadband Division, Corporate<br />
Communication Systems Equipment Group, Kyocera Corporation<br />
The Internet is more than technology; it is a social and economic revolution. Countries throughout<br />
<strong>the</strong> world are developing high-priority programmes to provide all <strong>the</strong>ir citizens with highspeed<br />
connectivity to <strong>the</strong> net. Initially, <strong>the</strong> emphasis was upon replacing narrowband connectivity<br />
with broadband. Now, <strong>the</strong> emphasis is upon providing ubiquitous connectivity. The next<br />
generation of broadband infrastructure will be largely wireless, to provide <strong>the</strong> benefits of connectivity<br />
- person to person, person to machine, machine to machine - wherever and whenever<br />
needed.<br />
Mr Makoto Ikari is <strong>the</strong> General Manager of Kyocera Corporationʼs Corporate Communication Systems Equipment Group, Wireless Broadband<br />
Division. Mr Ikariʼs entire career has been spent at Kyocera. He began in its General Affairs Department and has worked his way up<br />
through a series of increasingly responsible positions. He has worked in <strong>the</strong> production engineering of electronic devices, as <strong>the</strong> Production<br />
Manager of <strong>the</strong> Information Equipment Division, in <strong>the</strong> production of PHS - Personal Handyphone Systems, in quality assurance, and as<br />
<strong>the</strong> leader of <strong>the</strong> PHS business unit. Most recently, he led <strong>the</strong> iBurst business of Kyoceraʼs Wireless Broadband Division.<br />
Makoto Ikari earned his Masters Degree from Waseda University.<br />
Use of <strong>the</strong> Internet is expanding rapidly in virtually<br />
every part of society. This growth has<br />
spurred great advances in <strong>the</strong> technology for<br />
network infrastructures, and accelerated <strong>the</strong><br />
speeds of first - mile/last-mile access through<br />
technologies including Asymmetric Digital<br />
Subscriber Line, ADSL cable and fibre-to<strong>the</strong>-home,<br />
FTTH. Thanks to this progress, in<br />
many parts of <strong>the</strong> world virtually everyone has<br />
convenient access to a broadband network. We<br />
are racing toward a future of ubiquitous connectivity,<br />
where Internet access and information<br />
will be readily available, like water and<br />
electricity today.<br />
The Figure 1 illustrates <strong>the</strong> concept of ʻu-<br />
Japanʼ, introduced last year by <strong>the</strong> research<br />
council of Japanʼs Ministry of Internal Affairs<br />
and Communications, MIC in its final report<br />
called ʻUbiquitous Network Society.ʼ<br />
Before <strong>the</strong> ʻu-Japanʼ concept was unveiled, <strong>the</strong><br />
Japanese government had promoted its ʻe-Japan<br />
Strategyʼ since 2001. ʻe-Japanʼ was aimed<br />
Figure 1: u-Japan<br />
Universal<br />
Communication of heart with heart<br />
People friendly<br />
* Simple and east to use for anybody regardless of<br />
equipment and/or network<br />
* ICT encourages elderly of disabled people to participate<br />
in social activities<br />
Heart-to-Heart Communications<br />
* Communications generates a sense of community<br />
beyond generation or area<br />
Ubiquitous<br />
<strong>Connect</strong> everybody and everything<br />
* Realisation of connecting anytime, anywhere with anythin anybody<br />
* ICT changes daily lives simple and easy<br />
* <strong>Connect</strong> ‘objects to object’ and ‘people to objects’, not only ‘people to people’<br />
Communications becomes crucial at every aspect of life<br />
User oriented<br />
With users’ point of view<br />
Users’ point of view<br />
* Realise a society which considers users’ convinience first<br />
* Develop technology and service to satisfy <strong>the</strong> market needs<br />
A user is a supplier<br />
* All Japanese can be “Prosumer” with power of<br />
<strong>the</strong> network<br />
at making Japan one of <strong>the</strong> most advanced IT<br />
nations in <strong>the</strong> world by <strong>the</strong> year 2005. The<br />
strategy focused on upgrading fixed telecommunications<br />
infrastructure, specifically replacing<br />
narrowband with broadband. As a result,<br />
Japan had great success in growing its base of<br />
fixed broadband users, making it one of <strong>the</strong><br />
worldʼs true ʻbroadband nations.ʼ<br />
In 2005, Japanʼs MIC decided that <strong>the</strong> e-Japan<br />
strategy, while extremely successful, was not<br />
ambitious enough. The decision was made to<br />
replace ʻe-Japanʼ with <strong>the</strong> ʻu-Japanʼ strategy<br />
we see implemented today. The ʻuʼ in ʻu-Japanʼ<br />
stands for a number of things - including<br />
ubiquitous, universal, user-oriented and unique<br />
- but <strong>the</strong> emphasis falls heavily on ubiquity.<br />
Unique<br />
Raise <strong>the</strong> vitality of individuals<br />
Enhance <strong>the</strong> individual potential<br />
* Realise a society where people are well encouraged<br />
to challenge<br />
Stimulate <strong>the</strong> society<br />
* Create new social systems, businesses and<br />
services<br />
* Promote local originality and<br />
creativity<br />
The ʻu-Japan policyʼ has accelerated <strong>the</strong> countryʼs<br />
advance relative to <strong>the</strong> former ʻe-Japan<br />
strategyʼ. The ultimate goal is to usher Japan<br />
into an age of practical, ubiquitous networks<br />
offering <strong>connections</strong> anytime, anywhere, with<br />
anybody and anything. The Japanese government<br />
is now taking <strong>the</strong> promotion of infrastructure<br />
for quality broadband services very<br />
seriously.<br />
To understand this strategy, it is important to<br />
have a true understanding of <strong>the</strong> meaning behind<br />
ʻubiquitous societyʼ. Figure 2 illustrates<br />
<strong>the</strong> concept, showing how new value is created<br />
through convenient communication, enjoyable<br />
content and enhanced public safety. To achieve<br />
this, <strong>the</strong> network must enable <strong>connections</strong> anytime,<br />
anywhere, with anybody and anything.<br />
Until recently, telecommunication technology<br />
was regarded entirely as a means of connecting<br />
human beings. It mainly connected people<br />
to o<strong>the</strong>r people. Looking ahead, however, we<br />
can expect to continue <strong>the</strong> expansion begun in<br />
<strong>the</strong> late 20th century, when telecommunications<br />
also began connecting people to objects<br />
and even objects to objects.<br />
More than just modems and networks connecting<br />
computers and machines, <strong>the</strong> applications<br />
for ʻconnecting objectsʼ are virtually limitless.<br />
For example, imagine a car driven in heavy<br />
rain. A pedestrian is crossing <strong>the</strong> street ahead,<br />
obscured by <strong>the</strong> blinding downpour. Wireless<br />
communication equipment installed in <strong>the</strong><br />
car automatically recognizes signals from <strong>the</strong><br />
pedestrianʼs cell phone and alerts <strong>the</strong> driver,<br />
or perhaps even stops <strong>the</strong> car automatically.<br />
The same technology may assist drivers with<br />
speed control, keeping safe distances between<br />
cars or even collecting precise and real-time<br />
Source: MIC Final Report by Research Council for Realisation of Ubiquitous Network Society<br />
Issue 2006 47
Metropolitan Wireless Broadband<br />
Figure 2<br />
Figure 3<br />
wea<strong>the</strong>r information from o<strong>the</strong>r cars turning<br />
on <strong>the</strong>ir windshield wiper systems. Objects<br />
transmit and receive waves and frequencies to<br />
function - almost like living creatures. Once<br />
<strong>the</strong> providence of science fiction movies, such<br />
applications are fiction no more.<br />
The realization of such a world, however, begins<br />
by establishing <strong>the</strong> infrastructure. In particular,<br />
a truly wireless environment is crucial<br />
to ʻliberatingʼ people from <strong>the</strong> constraints of<br />
time and place. As indicated in Figure 3, <strong>the</strong>re<br />
is a rising demand from subscribers for rich<br />
content, making broadband infrastructure indispensable.<br />
Although broadband requires<br />
more bandwidth, spectrum - <strong>the</strong> key resource<br />
- is limited and being shared by an ever-increasing<br />
number of users. Richer content and<br />
increased network traffic are at odds with <strong>the</strong><br />
fixed amount of spectrum available. The only<br />
solution for making <strong>the</strong> best use of this limited<br />
resource is enhancing <strong>the</strong> efficiency with<br />
which we use it. With this as our context, it is<br />
not surprising that so many people are paying<br />
a great deal of attention to wireless broadband<br />
technology.<br />
“Although broadband requires<br />
more bandwidth, spectrum<br />
- <strong>the</strong> key resource - is limited<br />
and being shared by an everincreasing<br />
number of users.<br />
Richer content and increased<br />
network traffic are at odds with<br />
<strong>the</strong> fixed amount of spectrum<br />
available”<br />
Figure 4 explains <strong>the</strong> systems for wireless<br />
broadband. There are three main systems for<br />
wireless broadband: Personal Area Network,<br />
PAN, and Local Area Network, LAN, for narrowly<br />
defined areas, and WAN, Wide Area<br />
Network for wider areas. Current ʻ3Gʼ technology<br />
is categorized as WAN. The 802.11a/b/g<br />
standard for wireless LAN products is already<br />
in service and is growing quickly in popularity<br />
with PC users. Beyond that, 802.11n is progressing<br />
toward standardization. Originally,<br />
wireless LAN was used mainly for small, private<br />
spaces such as homes and offices. Today,<br />
wireless LANs are widely used for public ʻhotspotʼ<br />
applications and reach a broader market.<br />
Notice (Figure 4) <strong>the</strong> layer between LAN and<br />
WAN, which we are calling Metropolitan<br />
Area Network, MAN. The concept of ʻwireless<br />
broadbandʼ, as described in Figure 4, is<br />
originally a fusion of WAN - <strong>the</strong> mobile phone<br />
infrastructure, and LAN - <strong>the</strong> wireless infrastructure<br />
mainly developed for PCs. MAN is<br />
<strong>the</strong> result of an intermingling of <strong>the</strong>se layers.<br />
In o<strong>the</strong>r words, MAN technology was born as<br />
a child of two different paradigms - one with<br />
broadband high-speed data transmission and<br />
<strong>the</strong> o<strong>the</strong>r with true cellular mobility. The initial<br />
purpose of MAN technology was to transmit<br />
data. By adding VoIP, Voice over Internet<br />
Protocol technology to this system, however,<br />
it began being used for telephony (connecting<br />
humans) as well. That is why MAN technology<br />
is quickly gaining momentum as a leading<br />
candidate for <strong>the</strong> ubiquitous network system.<br />
Last year, Japanʼs MIC organized ʻThe Study<br />
Group for Wireless Broadband Promotionʼ.<br />
They indicated great interest in this sort of<br />
wireless broadband infrastructure.<br />
At present, <strong>the</strong>re are two leading MAN technology<br />
candidates. One is ʻMobile WiMaxʼ,<br />
<strong>World</strong>wide Interoperability for Microwave<br />
Access, also known as IEEE802.16e. The<br />
o<strong>the</strong>r is Mobile Broadband Wireless Access,<br />
MBWA, or IEEE802.20. Both Mobile WiMax<br />
and MBWA feature levels of mobility and data<br />
speeds that will surely meet <strong>the</strong> marketʼs demands.<br />
For example, MBWA can efficiently<br />
support high network accessibility and contribute<br />
to <strong>the</strong> realization of a ubiquitous environment.<br />
Due to its highly efficient use of<br />
spectrum, MBWA enables highly functional,<br />
large-scale commercial networks. For example,<br />
as little as 5 MHz of bandwidth can create<br />
a commercial network with very respectable<br />
downlink throughput to users of approximately<br />
1 Mbps.<br />
Looking at <strong>the</strong> communications industry in<br />
Africa, <strong>the</strong> rate of growth in <strong>the</strong> installed fixed<br />
telephone base is frankly low, while growth in<br />
mobile phone usage is obviously rapid. National<br />
governments recognize that developing<br />
<strong>the</strong>ir telecommunications infrastructure is an<br />
urgent task, yet <strong>the</strong> development of <strong>the</strong> fixed<br />
telecommunications infrastructure in <strong>the</strong> region<br />
has been very slow because of reliability<br />
48 Issue 2006
3rd Annual<br />
Fixed-Mobile<br />
Convergence Forum<br />
Accelerating <strong>the</strong> profitable convergence of fixed and mobile services,<br />
devices and networks<br />
Leading speakers include<br />
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Volker Binder, SVP, Product Marketing, Services &<br />
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Arthur Fea<strong>the</strong>r, Mobile Architecture & Standards,<br />
Global, Cisco Systems<br />
Guillaume Lacroix, Director, Innovation, Neuf Cegetel<br />
Lamia Delenda, Deputy Director, Group Spectrum<br />
Office, France Telecom<br />
Giovanni Canepa, Business Development Director,<br />
Wind<br />
Kerry Ritz, MD, Vonage UK<br />
Mattias Hansson, Founder & CEO, OptiCall AB<br />
Anders Halldin, CEO, Woize<br />
Matthias Peter, COO, Hello AS<br />
Miloš Mastník, Product Management and Strategy<br />
Director, GTS Novera<br />
James Tagg, CEO, Software Cellular Network Ltd<br />
Florian Pollack, Head of Strategy and<br />
Communication, ONE GmbH<br />
Chandra Tekwani. V.P., Mobile and IMS/FMC, Juniper<br />
Networks<br />
Erik Larsson, VP Marketing, Netcentrex Converged IP<br />
Communications, Comverse<br />
Per Kristiansson. Director Marketing & Strategy,<br />
<strong>World</strong>wide Services EMEA, Lucent<br />
Jacques Rames, Seamless Mobility Business<br />
Development Director, Motorola Networks<br />
Håkan Persson, Project Director, Spring International,<br />
Spring Mobil<br />
Magnus Kelly, Managing Director, MCom<br />
Lesley Hansen, Group Marketing Director, Teleware<br />
Michelangelo Barbera, Executive Partner-<br />
Communications, Broadband Lead, Europe and Latin<br />
America, Accenture<br />
Tomi T. Ahonen, 3G Author, Strategy Consultant &<br />
Motivational Speaker<br />
Dean Bubley, Founder,<br />
Disruptive Analysis<br />
Michele Mackenzie, Head of Consumer Practice,<br />
Ovum<br />
Dr Lindsay Frost, Wi-Fi/Cellular Convergence<br />
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Global Billing Association<br />
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Metropolitan Wireless Broadband<br />
problems and high costs. For African nations,<br />
it is far cheaper and faster to build infrastructure<br />
for satellite and mobile communications.<br />
Figure 3<br />
The mobile market in African countries is<br />
growing impressively from a global perspective.<br />
In 2005, <strong>the</strong> growth rate nearly doubled<br />
compared to <strong>the</strong> previous year. Studies show<br />
that 14 countries have achieved triple-digit annual<br />
average growth over <strong>the</strong> past five years.<br />
The Internet is also growing rapidly in Africa.<br />
We heard that many nations have national<br />
policies for <strong>the</strong> development of broadband<br />
networks. Never<strong>the</strong>less, <strong>the</strong> quality of fixed<br />
telephone lines remains a bottleneck, and <strong>the</strong><br />
overall Internet penetration is still low. Given<br />
<strong>the</strong> current status of African voice communications,<br />
<strong>the</strong>re are strong motives to migrate<br />
quickly to wireless networks. The introduction<br />
of wireless broadband technologies can hold<br />
<strong>the</strong> key to quick, low-cost network growth.<br />
The privatization of <strong>the</strong> state-controlled, monopolistic,<br />
fixed and mobile communications<br />
businesses has been advancing under government<br />
guidance in some areas of <strong>the</strong> Middle<br />
East and North Africa. Most observers expect<br />
this will facilitate <strong>the</strong> introduction of advanced<br />
communications technologies and new communications<br />
services. The widespread deployment<br />
of wireless broadband technologies will<br />
encourage <strong>the</strong> accelerated development of <strong>the</strong><br />
Middle East and Africa region.<br />
The ubiquitous society<br />
As wireless telecommunication technologies<br />
and equipment have evolved, cell phone sales<br />
have skyrocketed to more than 650 million per<br />
year. Much of society is communicating without<br />
regard for time and place. As <strong>the</strong> technologies<br />
have grown and multiplied, each has been<br />
examined to find its ideal fit to myriad new<br />
applications.<br />
Today, nowhere is that evolution more prominent<br />
than in broadband, and changes abound.<br />
The fusion of mobile telephony and broadcasting<br />
systems is bringing new value to users.<br />
Wireless broadband technology will play an<br />
important role <strong>the</strong>re and expand <strong>the</strong> possibilities<br />
of communications. Broadcasting has truly<br />
gone mobile. Rich content no longer relies<br />
upon television or radio as <strong>the</strong> only mediums;<br />
todayʼs cell phones, PDAs and computers are<br />
providing new broadcast platforms, bringing<br />
high-quality content anywhere <strong>the</strong> user may<br />
be. For example, ʻ1 segment broadcastingʼ,<br />
in which television programmes are digitized<br />
and played on mobile phones, is about to start<br />
service in Japan. Beyond just entertainment,<br />
however, ʻOne Segʼ or 1 segment broadcasting<br />
may also prove useful for applications such as<br />
a disaster warning system. Understandably, expectations<br />
for <strong>the</strong> technology/service are high.<br />
“For African nations, it is far cheaper and faster to build infrastructure<br />
for satellite and mobile communications. The<br />
mobile market in African countries is growing impressively<br />
from a global perspective. In 2005, <strong>the</strong> growth rate nearly<br />
doubled compared to <strong>the</strong> previous year.”<br />
Such advances are creating a healthy symbiosis<br />
within <strong>the</strong> telecommunications industry.<br />
Advances in hardware drive necessary progress<br />
in software and enable new horizons in<br />
rich content. As <strong>the</strong> content and software improve,<br />
<strong>the</strong>re is great demand on <strong>the</strong> hardware<br />
and infrastructure providers to keep up. In <strong>the</strong><br />
end everyone wins, especially <strong>the</strong> end-user.<br />
As a society, we are not ʻwiredʼ anymore, we<br />
are wireless. Wireless broadband will change<br />
our lives and society dramatically. Today we<br />
enjoy only a small taste of ubiquitous connectivity.<br />
People want e-mail, phone calls, TV<br />
programmes and Web browsing - yet <strong>the</strong>y are<br />
we forced to change equipment or devices to<br />
enjoy each of <strong>the</strong>se services. One day soon,<br />
however, a single device will handle all <strong>the</strong>se<br />
services and more!<br />
Today, music, movies - and just about every<br />
o<strong>the</strong>r form of content - are being digitized<br />
and primed for delivery through a single,<br />
ubiquitous network. It is simply a question<br />
of demand and time before we have it. This<br />
industryʼs mission is to contribute to humankind<br />
and society by utilizing its technology to<br />
develop systems and devices suitable for <strong>the</strong><br />
ubiquitous network age. <br />
As a society, we are not ʻwiredʼ anymore,<br />
we are wireless. Wireless broadband will<br />
change our lives and society dramatically.<br />
Issue 2006 51
Digital TV<br />
Broadband and digital TV - new<br />
cultural dimensions<br />
by Neil Gaydon, CEO & Mike Tometzki, New Business<br />
Development Manager, Pace Micro Technology<br />
In Africa and <strong>the</strong> Middle East, locally generated content distributed via broadband can play<br />
a vital role reflecting local culture, interests and needs. The growth of broadband networks,<br />
progress in compression technology and speed, and <strong>the</strong> use of cost effective IP-enabled devices<br />
will significantly accelerate growth and commercial opportunities. In addition to content and<br />
technology, challenges such as digital <strong>right</strong>s management, quality of service, regulatory questions<br />
and local loop unbundling to encourage local competition, must still be resolved.<br />
Neil Gaydon is <strong>the</strong> Chief Executive Officer of Pace Micro Technology. Prior to this appointment, he served on <strong>the</strong> companyʼs board as Executive<br />
Director and as Sales & Marketing Director responsible for corporate strategy, global sales, marketing, technology and product<br />
management. Mr Gaydon has also served as <strong>the</strong> President of Pace Americas, as Regional Director EMEA, as Head of Product Marketing<br />
and, originally, as Head of <strong>World</strong>wide New Business Development. As <strong>the</strong> Environmental Management System representative on Paceʼs<br />
board, Mr Gaydon ensures that environmental concerns are addressed at <strong>the</strong> companyʼs highest level. Previously, before joining Pace,<br />
Neil Gaydon worked for ten years as a senior executive in <strong>the</strong> hi-fi industry.<br />
Mike Tometzki is Pace Micro Technologyʼs New Business Development Manager and part of <strong>the</strong> Pace European team. Mike has over 17<br />
yearsʼ experience within high technology sectors and, before joining Paceʼs European team, Mike was <strong>the</strong> Companyʼs Head of Product<br />
Management. Prior to this, Mikeʼs o<strong>the</strong>r roles at Pace have included Satellite Divisional Product Manager, Engineering Team leader<br />
and Senior Hardware Engineer.<br />
Before joining Pace, Mike held a variety of research and development roles in industries, from defence to semiconductors and aeronautical.<br />
His roles have included senior research engineering and project leads at GEC Research, Engineering Research Centre, Whetstone,<br />
UK, where he joined as sponsored student/graduate.<br />
The launch in December last year of <strong>the</strong> first<br />
HDTV station in <strong>the</strong> region at <strong>the</strong> Middle East<br />
Broadcasting Show, MEBSHOW in Beirut,<br />
was a landmark in <strong>the</strong> history, and a demonstration<br />
of <strong>the</strong> rapid growth of digital technology<br />
in Africa and <strong>the</strong> Middle East. It demonstrated<br />
a commitment to <strong>the</strong> new and exciting<br />
developments digital television can offer, and<br />
once again reinforced <strong>the</strong> prevailing view that<br />
successful economic growth is reflected in <strong>the</strong><br />
scale of activity of high-tech consumer products.<br />
This trend provides a unique opportunity for<br />
broadband to enrich <strong>the</strong> customer user experience<br />
by complementing traditional broadcasting<br />
fare with <strong>the</strong> sort of content available<br />
for narrowcasting. This will ultimately mean<br />
<strong>the</strong> generation of a greater amount of content<br />
that will reflect local interests and meet local<br />
needs. Once <strong>the</strong>se two factors are combined,<br />
it will undoubtedly result in a tremendous<br />
growth of culturally rich material.<br />
To state that digital television is strong in Africa<br />
and <strong>the</strong> Middle East is an understatement.<br />
There are now around 200 free-to-air satellite<br />
channels and 100 pay TV channels - via<br />
Showtime, ART and Orbit - in <strong>the</strong> Middle East<br />
alone, and 45 new satellite television channels<br />
on Nilesat and Arabsat. Al Jazeera has announced<br />
that it will be broadcasting in HDTV<br />
and ART offered coverage of <strong>the</strong> FIFA <strong>World</strong><br />
Cup in high definition. Current figures show<br />
that <strong>the</strong>re are over one million pay television<br />
subscribers in <strong>the</strong> Middle East.<br />
While, in comparison, <strong>the</strong> number of broadband<br />
subscribers in Africa and <strong>the</strong> Middle East<br />
is still comparatively small (Algeria, Egypt,<br />
Morocco, South Africa, Bahrain, Jordan, Qatar,<br />
Saudi Arabia and United Arab Emirates<br />
being <strong>the</strong> leaders), <strong>the</strong> number of operators<br />
- and <strong>the</strong> subscription base - is set to rise exponentially<br />
over <strong>the</strong> next five years, bringing<br />
with it an unprecedented commercial revolution.<br />
Broadband will, <strong>the</strong>refore, move from<br />
being a luxury to a necessity for both businesses<br />
and individuals. This presents a tremendous<br />
opportunity for <strong>the</strong> region to leapfrog existing<br />
technologies, use more cost effective IP-enabled<br />
devices, and provide significant global<br />
commercial opportunities through widespread<br />
and extensive communication.<br />
With such a fast pace, it would be easy for<br />
broadcasters simply to provide a service of<br />
imported entertainment shows. However, <strong>the</strong><br />
challenge for both broadcasters and <strong>the</strong> fledgling<br />
IPTV providers must be to develop programmes<br />
that reflect <strong>the</strong> cultural richness of<br />
<strong>the</strong> area. Some operators have already begun<br />
this process. Fawasel TV, based in Dubai Internet<br />
City and launched in April of this year,<br />
reflects <strong>the</strong> commitment to culturally orientated<br />
content. They have announced that 4000<br />
hours of documentary content will be on offer<br />
and much more will be created locally. There<br />
is no doubt that to enrich <strong>the</strong> consumer experience<br />
all operators throughout Africa and <strong>the</strong><br />
Middle East will, essentially, follow this pattern.<br />
The need for cultural contribution in <strong>the</strong> digital<br />
television sector is considerable. Over <strong>the</strong><br />
next five years, <strong>the</strong> so-called quad play of<br />
voice, data, video and mobile will become a<br />
reality and <strong>the</strong> major telcos and ISPs will be<br />
conveniently placed to take advantage of its<br />
growth. By providing locally originated content,<br />
<strong>the</strong> fundamental need to provide real<br />
viewing choice will have to be met; <strong>the</strong> wide<br />
52 Issue 2006
The decision <strong>make</strong>rs’ forum<br />
for <strong>the</strong> ICT driven development<br />
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Executive Office: Global House 12 Albert Road London E16 2DW United Kingdom<br />
Tel.: +44 20 7540 0876 Fax: +44 20 7474 0090 email: info@connect-world.com
Keynote speakers include:<br />
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Chief Executive<br />
MTV Networks Europe,<br />
United Kingdom<br />
Linda Vermaas<br />
Chief Executive Officer<br />
M-Mobile, South Africa<br />
24 – 27 October 2006<br />
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Digital TV<br />
“There will be a paradigm<br />
shift in broadband over <strong>the</strong><br />
next five years. Operators, instead<br />
of using dumb terminals<br />
for data only as an extension<br />
of <strong>the</strong> network, will migrate<br />
to products that extend <strong>the</strong>ir<br />
service delivery capabilities<br />
to video, voice and possibly<br />
mobile.”<br />
variety of new facilities technology can offer<br />
will <strong>make</strong> this much easier to achieve.<br />
To fully exploit <strong>the</strong> potential for broadband,<br />
companies are currently working hard to<br />
overcome a number of obstacles. The key<br />
one will be <strong>the</strong> physical constraints of building<br />
networks that are capable of delivering <strong>the</strong><br />
speed and bandwidth to meet future requirements.<br />
The progress in compression technology<br />
(MPEG-4) and speeds (ADSL2+) <strong>make</strong>s<br />
it much easier today to start from scratch with<br />
<strong>the</strong> most advanced, leading-edge technology.<br />
Economics dictate that broadband penetration<br />
has to reach critical mass to be viable. It will<br />
take time. One can expect it to take at least<br />
five years to achieve this. For video, <strong>the</strong> target<br />
market will be customers, particularly those<br />
in multi-dweller units, who cannot get digital<br />
television by satellite or cable, but will be able<br />
to get IPTV. This alone presents a huge opportunity.<br />
As <strong>the</strong> number of households that own<br />
a computer increases, <strong>the</strong>re is a proportionate<br />
increase in <strong>the</strong> opportunity to target <strong>the</strong>se<br />
households as a market for a bundled package<br />
consisting of television, data and <strong>the</strong> Internet.<br />
There will still be a great deal of work to do<br />
to ensure a smooth launch for <strong>the</strong> full range of<br />
services, including video delivery. The issue of<br />
<strong>right</strong>s ownership has to be amicably negotiated<br />
between <strong>the</strong> owners of <strong>the</strong> broadband service<br />
and <strong>the</strong> content owners. Digital <strong>right</strong>s management<br />
is naturally of concern - content owners<br />
still do not trust that IP-based broadcast solutions,<br />
content programming and digital <strong>right</strong>s<br />
management can match existing offerings and<br />
systems. Quality of service, QoS, is also extremely<br />
important. The regulation of <strong>the</strong> new<br />
technologies is still unclear; <strong>the</strong>re are many<br />
questions, such as, “Should <strong>the</strong> new services<br />
be regulated as data or cable”. Local loop<br />
unbundling, to encourage local competition, is<br />
also a challenge that will require considerable<br />
effort to overcome. There is also limited confidence<br />
that todayʼs billing mechanisms can<br />
match <strong>the</strong> ambitions of <strong>the</strong> operators.<br />
There is no doubt that <strong>the</strong>se obstacles within<br />
<strong>the</strong> region will be overcome over <strong>the</strong> next five<br />
years and, as <strong>the</strong>y do, <strong>the</strong> scale and scope of<br />
broadband subscriptions will rise exponentially.<br />
As this happens, <strong>the</strong> sophistication of<br />
high-end products will become increasingly<br />
important. There will be a paradigm shift in<br />
broadband over <strong>the</strong> next five years. Operators,<br />
instead of using dumb terminals for data only<br />
as an extension of <strong>the</strong> network, will migrate to<br />
products that extend <strong>the</strong>ir service delivery capabilities<br />
to video, voice and possibly mobile.<br />
Therefore, a family of products from basic settop<br />
boxes to personal video recorders, PVRs<br />
and home servers, with increasing functionality<br />
to meet consumer demand for features and<br />
benefits, is essential. With <strong>the</strong>se services on<br />
offer, operators will be in a position to engage<br />
in generating local content, and strive to differentiate<br />
<strong>the</strong>ir offerings from <strong>the</strong> competition<br />
by providing specific, special, rich content to<br />
reflect <strong>the</strong> background of its consumers. In<br />
such circumstances, <strong>the</strong> local culture can be<br />
<strong>the</strong> only winner as ʻa la carteʼ programming<br />
- narrowcasting in its purest sense - meets <strong>the</strong><br />
needs of <strong>the</strong> individual in his or her country.<br />
In addition, <strong>the</strong>re will be <strong>the</strong> need for <strong>the</strong><br />
seamless introduction of IP connected devices,<br />
by means of which content enters and<br />
leaves <strong>the</strong> home over many devices, and from<br />
many sources. These devices will of course<br />
take many forms, such as games, audio devices,<br />
portable media devices and <strong>the</strong> like.<br />
Significantly, by 2010 it is estimated that of<br />
<strong>the</strong> 352 million connected IP-enabled home<br />
devices sold in that year, 45 million will be<br />
cell phones, reinforcing <strong>the</strong> wisdom of operators<br />
going down a quad play route.<br />
Increasingly simplified connectivity will aid<br />
<strong>the</strong> successful rollout of broadband services.<br />
At <strong>the</strong> moment, wireless networks are sufficient<br />
for voice and data around <strong>the</strong> home, but<br />
a great deal of research and development is<br />
devoted to determining how to network video<br />
around <strong>the</strong> home. On <strong>the</strong> table today are five<br />
real options: via existing coaxial cable; wireless/WiFi<br />
- still in <strong>the</strong> early stages for video<br />
and currently lacking robustness - E<strong>the</strong>rnet;<br />
E<strong>the</strong>rnet-over-Powerline; and over-<strong>the</strong>-telephone<br />
wiring. As <strong>the</strong> networked home becomes<br />
more prevalent over <strong>the</strong> next five years,<br />
technological advances will, without doubt,<br />
drive <strong>the</strong> demand for utilising broadband to an<br />
ever greater extent.<br />
One final issue, worthy of fur<strong>the</strong>r development<br />
and of monumental importance to <strong>the</strong><br />
broadband industry, is <strong>the</strong> potential effect of<br />
disruptive business models for triple-play delivery.<br />
Companies such as Google, Yahoo, Bit<br />
Torrent, Vonage, Skype and Akimbo each offer<br />
an alternative to traditional IPTV offerings.<br />
If <strong>the</strong>se companies achieve <strong>the</strong> level of success<br />
in video that <strong>the</strong>y have elsewhere on <strong>the</strong> Internet,<br />
<strong>the</strong>y are potentially capable of distorting<br />
<strong>the</strong> market considerably.<br />
Therefore, <strong>the</strong> suppliers of <strong>the</strong> <strong>right</strong> products<br />
for broadband operators will be operators<br />
that have comprehensive credentials. A huge<br />
wealth of experience with in-house development<br />
of leading-edge technologies - DVB,<br />
MPEG-4, HDTV, etc - is fundamental. In addition,<br />
vendors must understand partnership<br />
integration throughout <strong>the</strong> digital delivery<br />
chain. Fur<strong>the</strong>rmore, a pre-requisite for helping<br />
broadband operators achieve <strong>the</strong>ir goals will be<br />
suppliers who not only understand <strong>the</strong> need for<br />
pure IPTV boxes, but also for ʻhybridʼ home<br />
devices offering cable, satellite or digital terrestrial<br />
television, DTT. Significantly, <strong>the</strong>re<br />
will also be a need to understand and nurture a<br />
partnership with <strong>the</strong> customer, not only for <strong>the</strong><br />
short term but over many years.<br />
In short, <strong>the</strong> opportunity for <strong>the</strong> region to drive<br />
broadband has never been b<strong>right</strong>er than it will<br />
be over <strong>the</strong> next five years. Ultimately, however,<br />
<strong>the</strong> operatorsʼ success will depend on <strong>the</strong><br />
extent to which <strong>the</strong>y can create content which<br />
celebrates and reflects <strong>the</strong>ir surroundings,<br />
ra<strong>the</strong>r than merely transmit generic programming<br />
available everywhere else. This new period<br />
is going to be exciting, with technology<br />
and content teaming toge<strong>the</strong>r to give a unique,<br />
unprecedented user experience in <strong>the</strong> Africa<br />
and Middle East region. <br />
Issue 2006 55
Education<br />
Education and universal broadband access<br />
by Dr Mounir Hamdi, Director, Computer Engineering Programme,<br />
The Hong Kong University of Science and Technology<br />
Broadband is revolutionising education and training. Using wireless broadband, students in<br />
<strong>the</strong> remotest regions of <strong>the</strong> world can access classes given by <strong>the</strong> worldʼs leading professors.<br />
Both students and teachers can easily access an enormous variety of material from libraries,<br />
museums and databases throughout <strong>the</strong> world. Ten years ago, not even <strong>the</strong> worldʼs greatest<br />
scholars had such rich resources at <strong>the</strong>ir command. For businesses, broadband brings specific,<br />
on-<strong>the</strong>-job training programmes. Broadband also facilitates collaboration between educational<br />
institutions, students and researchers.<br />
Dr Mounir Hamdi is <strong>the</strong> Director of <strong>the</strong> Computer Engineering Programme and a full professor of computer science at <strong>the</strong> Hong Kong<br />
University of Science and Technology. He is also <strong>the</strong> Director of <strong>the</strong> Master of Science in Information Technology programme, and Director<br />
of <strong>the</strong> High-Speed Networking Research Lab at <strong>the</strong> university. Previously, he held visiting professor positions at Stanford University,<br />
USA, and <strong>the</strong> Swiss Federal Institute of Technology, Lausanne, Switzerland, and served as a teaching/research fellow at <strong>the</strong> Department<br />
of Electrical Engineering, University of Pittsburgh. Dr Hamdi has frequently consulted for companies in <strong>the</strong> USA, Europe and Asia. Dr<br />
Hamdi has been on <strong>the</strong> Editorial Board of IEEE Transactions on Communications, IEEE Communication Magazine, Computer Networks,<br />
Wireless Communications and Mobile Computing, and Parallel Computing and has been on <strong>the</strong> programme committees of more than 100<br />
international conferences and workshops. He was a guest editor of IEEE Communications Magazine, guest editor-in-chief of two special<br />
issues of <strong>the</strong> IEEE Journal and a guest editor of Optical Networks Magazine. Mounir Hamdi has also earned numerous industry and<br />
university awards. Mounir Hamdi earned a B.S. degree in Electrical Engineering-Computer Engineering minor (with distinction) from <strong>the</strong><br />
University of Louisiana and his MS and PhD degrees in Electrical Engineering from <strong>the</strong> University of Pittsburgh.<br />
Broadband is among <strong>the</strong> most significant technologies<br />
in <strong>the</strong> communications industry today.<br />
The proliferation of broadband access brings<br />
with it a dramatic shift in <strong>the</strong> way people live<br />
and work. Broadband <strong>make</strong>s streaming media,<br />
virtual reality and o<strong>the</strong>r bandwidth intensive<br />
technologies possible. The use of broadband<br />
lets both students and teachers tap into a<br />
wealth of in-depth information and facilitates<br />
collaborative efforts between institutions. In<br />
Africa and <strong>the</strong> Middle East, broadband can<br />
deliver educational programmes on par with<br />
<strong>the</strong> best in <strong>the</strong> world. As a result, governments<br />
and organizations are funding broadband <strong>connections</strong><br />
to many schools to provide “exciting<br />
and effective ways of improving <strong>the</strong> quality of<br />
education”.<br />
Broadband benefits<br />
Included among <strong>the</strong> many benefits of broadband<br />
access are:<br />
A richer learning experience - Broadband<br />
access exposes students to a wide range of exciting<br />
and innovative, but previously inaccessible,<br />
educational resources that complement<br />
<strong>the</strong>ir current activities and motivates <strong>the</strong>m to<br />
learn more. In addition, given <strong>the</strong> quick access<br />
and retrieval of rich media, it encourages students<br />
to use <strong>the</strong> Internet for research and o<strong>the</strong>r<br />
learning activities.<br />
Preparing lessons is a big part of a teacherʼs<br />
job. Broadband gives <strong>the</strong>m convenient access<br />
to such high-quality resources as videos, animations,<br />
and graphics to prepare <strong>the</strong>ir lessons.<br />
Teachers can also post studentsʼ assignments,<br />
information and results online for easy access.<br />
A huge amount of material is available to<br />
teachers on <strong>the</strong> Internet, but searching for it<br />
can be time consuming. Broadbandʼs speed<br />
helps teachers find suitable lesson material<br />
much more quickly.<br />
Easier remote collaboration - Broadband<br />
facilitates and enhances inter-institutional collaboration,<br />
allowing schools to share scarce<br />
teaching resources using high-speed interactive<br />
video-conferencing. This is especially important<br />
in <strong>the</strong> developing countries of Africa<br />
and <strong>the</strong> Middle East, where <strong>the</strong> appropriate<br />
human resources are often scarce. Alternatively,<br />
broadband facilitates communication<br />
and cooperation by linking diverse institutions<br />
toge<strong>the</strong>r to work on innovative joint projects.<br />
Certain innovative projects use broadband<br />
to facilitate <strong>the</strong> often difficult interaction between<br />
students from hostile countries and help<br />
cushion some of <strong>the</strong> consequences of historical<br />
problems. Children in remote areas of Africa<br />
may only mix with o<strong>the</strong>r schoolchildren<br />
once or twice a year. They have little contact<br />
with o<strong>the</strong>r children <strong>the</strong>ir own age but, with<br />
broadband, <strong>the</strong>y can collaborate with classmates<br />
from o<strong>the</strong>r schools on group projects<br />
using email or even video-conferencing.<br />
Novel teaching methods - Broadband access<br />
can <strong>make</strong> innovative e-learning opportunities<br />
a reality and on a wider scale. Broadband<br />
<strong>make</strong>s it possible to have conversational<br />
language lessons with native speakers in o<strong>the</strong>r<br />
countries. The Internet has a wealth of additional<br />
material to stimulate and challenge <strong>the</strong><br />
“Certain innovative projects<br />
use broadband to facilitate<br />
<strong>the</strong> often difficult interaction<br />
between students from hostile<br />
countries and help cushion<br />
some of <strong>the</strong> consequences<br />
of historical problems.”<br />
b<strong>right</strong>er students in a class or to support and<br />
nurture those with learning difficulties. The Internet<br />
also gives school students access to experts<br />
- often not locally available - in advanced<br />
subjects such as ma<strong>the</strong>matics, physics or computer<br />
technology. Using broadband and digital<br />
technology, a university can collaborate with<br />
ano<strong>the</strong>r by combining resources and teaching<br />
staff to offer shared degrees. On a wider scale,<br />
it can also facilitate international collaboration<br />
with organizations and institutions outside <strong>the</strong><br />
education sector. Still, e-learning and computer<br />
based learning should not totally replace<br />
56 Issue 2006
Education<br />
Education and universal broadband access<br />
by Dr Mounir Hamdi, Director, Computer Engineering Programme,<br />
The Hong Kong University of Science and Technology<br />
Broadband is revolutionising education and training. Using wireless broadband, students in<br />
<strong>the</strong> remotest regions of <strong>the</strong> world can access classes given by <strong>the</strong> worldʼs leading professors.<br />
Both students and teachers can easily access an enormous variety of material from libraries,<br />
museums and databases throughout <strong>the</strong> world. Ten years ago, not even <strong>the</strong> worldʼs greatest<br />
scholars had such rich resources at <strong>the</strong>ir command. For businesses, broadband brings specific,<br />
on-<strong>the</strong>-job training programmes. Broadband also facilitates collaboration between educational<br />
institutions, students and researchers.<br />
Dr Mounir Hamdi is <strong>the</strong> Director of <strong>the</strong> Computer Engineering Programme and a full professor of computer science at <strong>the</strong> Hong Kong<br />
University of Science and Technology. He is also <strong>the</strong> Director of <strong>the</strong> Master of Science in Information Technology programme, and Director<br />
of <strong>the</strong> High-Speed Networking Research Lab at <strong>the</strong> university. Previously, he held visiting professor positions at Stanford University,<br />
USA, and <strong>the</strong> Swiss Federal Institute of Technology, Lausanne, Switzerland, and served as a teaching/research fellow at <strong>the</strong> Department<br />
of Electrical Engineering, University of Pittsburgh. Dr Hamdi has frequently consulted for companies in <strong>the</strong> USA, Europe and Asia. Dr<br />
Hamdi has been on <strong>the</strong> Editorial Board of IEEE Transactions on Communications, IEEE Communication Magazine, Computer Networks,<br />
Wireless Communications and Mobile Computing, and Parallel Computing and has been on <strong>the</strong> programme committees of more than 100<br />
international conferences and workshops. He was a guest editor of IEEE Communications Magazine, guest editor-in-chief of two special<br />
issues of <strong>the</strong> IEEE Journal and a guest editor of Optical Networks Magazine. Mounir Hamdi has also earned numerous industry and<br />
university awards. Mounir Hamdi earned a B.S. degree in Electrical Engineering-Computer Engineering minor (with distinction) from <strong>the</strong><br />
University of Louisiana and his MS and PhD degrees in Electrical Engineering from <strong>the</strong> University of Pittsburgh.<br />
Broadband is among <strong>the</strong> most significant technologies<br />
in <strong>the</strong> communications industry today.<br />
The proliferation of broadband access brings<br />
with it a dramatic shift in <strong>the</strong> way people live<br />
and work. Broadband <strong>make</strong>s streaming media,<br />
virtual reality and o<strong>the</strong>r bandwidth intensive<br />
technologies possible. The use of broadband<br />
lets both students and teachers tap into a<br />
wealth of in-depth information and facilitates<br />
collaborative efforts between institutions. In<br />
Africa and <strong>the</strong> Middle East, broadband can<br />
deliver educational programmes on par with<br />
<strong>the</strong> best in <strong>the</strong> world. As a result, governments<br />
and organizations are funding broadband <strong>connections</strong><br />
to many schools to provide “exciting<br />
and effective ways of improving <strong>the</strong> quality of<br />
education”.<br />
Broadband benefits<br />
Included among <strong>the</strong> many benefits of broadband<br />
access are:<br />
A richer learning experience - Broadband<br />
access exposes students to a wide range of exciting<br />
and innovative, but previously inaccessible,<br />
educational resources that complement<br />
<strong>the</strong>ir current activities and motivates <strong>the</strong>m to<br />
learn more. In addition, given <strong>the</strong> quick access<br />
and retrieval of rich media, it encourages students<br />
to use <strong>the</strong> Internet for research and o<strong>the</strong>r<br />
learning activities.<br />
Preparing lessons is a big part of a teacherʼs<br />
job. Broadband gives <strong>the</strong>m convenient access<br />
to such high-quality resources as videos, animations,<br />
and graphics to prepare <strong>the</strong>ir lessons.<br />
Teachers can also post studentsʼ assignments,<br />
information and results online for easy access.<br />
A huge amount of material is available to<br />
teachers on <strong>the</strong> Internet, but searching for it<br />
can be time consuming. Broadbandʼs speed<br />
helps teachers find suitable lesson material<br />
much more quickly.<br />
Easier remote collaboration - Broadband<br />
facilitates and enhances inter-institutional collaboration,<br />
allowing schools to share scarce<br />
teaching resources using high-speed interactive<br />
video-conferencing. This is especially important<br />
in <strong>the</strong> developing countries of Africa<br />
and <strong>the</strong> Middle East, where <strong>the</strong> appropriate<br />
human resources are often scarce. Alternatively,<br />
broadband facilitates communication<br />
and cooperation by linking diverse institutions<br />
toge<strong>the</strong>r to work on innovative joint projects.<br />
Certain innovative projects use broadband<br />
to facilitate <strong>the</strong> often difficult interaction between<br />
students from hostile countries and help<br />
cushion some of <strong>the</strong> consequences of historical<br />
problems. Children in remote areas of Africa<br />
may only mix with o<strong>the</strong>r schoolchildren<br />
once or twice a year. They have little contact<br />
with o<strong>the</strong>r children <strong>the</strong>ir own age but, with<br />
broadband, <strong>the</strong>y can collaborate with classmates<br />
from o<strong>the</strong>r schools on group projects<br />
using email or even video-conferencing.<br />
Novel teaching methods - Broadband access<br />
can <strong>make</strong> innovative e-learning opportunities<br />
a reality and on a wider scale. Broadband<br />
<strong>make</strong>s it possible to have conversational<br />
language lessons with native speakers in o<strong>the</strong>r<br />
countries. The Internet has a wealth of additional<br />
material to stimulate and challenge <strong>the</strong><br />
“Certain innovative projects<br />
use broadband to facilitate<br />
<strong>the</strong> often difficult interaction<br />
between students from hostile<br />
countries and help cushion<br />
some of <strong>the</strong> consequences<br />
of historical problems.”<br />
b<strong>right</strong>er students in a class or to support and<br />
nurture those with learning difficulties. The Internet<br />
also gives school students access to experts<br />
- often not locally available - in advanced<br />
subjects such as ma<strong>the</strong>matics, physics or computer<br />
technology. Using broadband and digital<br />
technology, a university can collaborate with<br />
ano<strong>the</strong>r by combining resources and teaching<br />
staff to offer shared degrees. On a wider scale,<br />
it can also facilitate international collaboration<br />
with organizations and institutions outside <strong>the</strong><br />
education sector. Still, e-learning and computer<br />
based learning should not totally replace<br />
56 Issue 2006
Education<br />
conventional face-to-face teaching, but, ra<strong>the</strong>r,<br />
should enhance and complement it.<br />
“Broadband now <strong>make</strong>s a<br />
new generation of business<br />
training packages designed<br />
to take advantage of new<br />
technology possible. Covering<br />
everything from customer<br />
service to sales techniques,<br />
<strong>the</strong>se new training packages<br />
are content-rich and designed<br />
to deliver a compelling and<br />
engaging experience.”<br />
Sharing computing and equipment resources<br />
- Broadband access is an economically viable<br />
way for schools and universities in Africa<br />
and <strong>the</strong> Middle East to share costly database,<br />
computing and equipment resources, using<br />
what is termed grid computing. Some of <strong>the</strong><br />
expensive equipment that schools and universities<br />
need is only used part-time, so it is very<br />
appealing when it - and <strong>the</strong> associated costs<br />
- can be shared with o<strong>the</strong>r organisations using<br />
broadband links. Using broadband to share <strong>the</strong><br />
costs of educational programmes can be extremely<br />
beneficial.<br />
Improving educational administration<br />
- Broadband can provide educational institutions<br />
with real efficiencies by streamlining<br />
and automating <strong>the</strong>ir administration and<br />
management. It is an efficient way to deliver<br />
curriculum details and examination results to<br />
students, and improve communications and interaction<br />
between students and teachers.<br />
Access to knowledge - The Internet is a<br />
huge library that never closes; with it, students<br />
of all ages can tap into a vast array of<br />
information. This information is not limited<br />
to <strong>the</strong> written word; it includes photographs,<br />
diagrams, videos and animations, all of which<br />
can help a student understand a subject so<br />
much more clearly. Still, trying to access this<br />
information on a dial-up connection quickly<br />
becomes frustrating, especially for children.<br />
Broadbandʼs high speed overcomes this problem<br />
and <strong>make</strong>s browsing even <strong>the</strong> most image<br />
rich websites a pleasure. Whatever <strong>the</strong> topic<br />
you can be sure that <strong>the</strong>re will be information<br />
about it on <strong>the</strong> Internet, and <strong>the</strong>re are search<br />
engines specially tailored to children that find<br />
information pitched to a childʼs level of understanding.<br />
There are also websites dedicated to<br />
helping children with <strong>the</strong>ir homework. Broadband<br />
also widens access in rural areas and provides<br />
access to education materials to learners<br />
with disabilities or behavioural problems.<br />
In general, broadband narrows <strong>the</strong> gap between<br />
<strong>the</strong> haves and <strong>the</strong> have-nots. It widens<br />
access to educational material and new learning<br />
opportunities by using links from schools<br />
to <strong>the</strong> wider communities, such as libraries,<br />
museums, <strong>the</strong>atres and o<strong>the</strong>r cultural institutions.<br />
Family Perspective - Broadband in education<br />
benefits families and <strong>the</strong> community as a<br />
whole, not just individual students or teachers.<br />
Parents of children with access to higher levels<br />
of education at home have less need to send<br />
<strong>the</strong>ir children away to fur<strong>the</strong>r <strong>the</strong>ir education.<br />
Families can stay toge<strong>the</strong>r and enjoy <strong>the</strong>ir family<br />
life. Broadband, <strong>the</strong>n, can reduce <strong>the</strong> brain<br />
drain in Africa and <strong>the</strong> Middle East and help<br />
local communities. Affording more children<br />
higher levels of education will lead to better<br />
educated, more capable, communities.<br />
Broadband applications<br />
Education will drive demand for broadband<br />
applications in Africa and <strong>the</strong> Middle East. Education<br />
applications have a history of driving<br />
<strong>the</strong> adoption of technology in poor countries.<br />
Parents recognise <strong>the</strong> impact that supervised<br />
use of <strong>the</strong> Internet can have on <strong>the</strong>ir childrenʼs<br />
education; surveys and empirical evidence<br />
validate how computers captivate kids. Although<br />
much attention is focused upon webbased<br />
learning, even more powerful opportunities<br />
are on <strong>the</strong> horizon, including interactive<br />
video-conferencing, grid computing and leveraging<br />
Internet 2.<br />
The next generation of applications will<br />
emerge from institutions of higher education.<br />
The challenge is to marry <strong>the</strong> technology to<br />
research, to develop innovative broadband<br />
applications that meet <strong>the</strong> specific needs of<br />
regions such as Africa and <strong>the</strong> Middle East.<br />
This will leverage investments in technology,<br />
position educational entities as community<br />
resources and help stimulate community demand<br />
for services.<br />
More than connectivity and computing speeds,<br />
we need a vision of <strong>the</strong> world we are preparing<br />
students for, where e-learning can take us if we<br />
can think about learning in fundamentally new<br />
ways. Technology is <strong>the</strong> cornerstone of <strong>the</strong><br />
economy, but <strong>the</strong> combination of technology<br />
and education is its bedrock. Rapidly developing<br />
technologies such as advanced computing,<br />
biotechnology and nanotechnology, will<br />
each create revolutionary changes to which<br />
we must adapt. Intelligence will be embedded<br />
everywhere, and everyone - anywhere - will be<br />
interconnected. Learning opportunities will be<br />
only a thought or an eye movement away. Intelligent<br />
systems may discern our knowledge<br />
needs at work and play, and proactively offer<br />
learning opportunities and accelerate <strong>the</strong> accumulation<br />
of knowledge. Ultimately, it seems,<br />
education, training and knowledge management<br />
will converge to create a new ʻknowledge<br />
utilityʼ that will integrate learning into all<br />
aspects of our lives, making learning opportunities<br />
ubiquitous for all, from pre-schooler to<br />
retiree. This is beyond computers in schools,<br />
beyond <strong>the</strong> Internet and beyond <strong>the</strong> deployment<br />
of broadband. This is about much bigger<br />
change - a new learning infrastructure based<br />
upon a broadband infrastructure.<br />
Broadband for business education<br />
Broadband development is critically important<br />
to <strong>the</strong> future of business education and learning<br />
in Africa and <strong>the</strong> Middle East. For small<br />
and medium-sized businesses, broadband<br />
means that online learning and staff training<br />
will become a viable option; until now, online<br />
training packages have been limited by<br />
restricted bandwidth. As a result, many have<br />
been relatively dull, short on interactive content,<br />
and did not engage learners.<br />
Broadband now <strong>make</strong>s a new generation of<br />
business training packages designed to take<br />
advantage of new technology possible. Covering<br />
everything from customer service to sales<br />
techniques, <strong>the</strong>se new training packages are<br />
content-rich and designed to deliver a compelling<br />
and engaging experience. On-line training<br />
via broadband will offer smaller and rural<br />
companies committed to staff development<br />
many advantages including:<br />
Personalized content reflecting specific<br />
company or individual need;<br />
at-<strong>the</strong>-desk staff access to training - when<br />
and as needed;<br />
easy log-on and log-off to training;<br />
no dial-up charges for connection; and<br />
flexible training tailored to meet <strong>the</strong> demands<br />
of <strong>the</strong> workplace.<br />
In short, broadband can <strong>make</strong> continuous<br />
learning - at <strong>the</strong> workplace - a reality. As <strong>the</strong><br />
broadband network expands - both nationally<br />
and across international borders - so will <strong>the</strong><br />
availability of effective training packages that<br />
bring relevant and exciting learning direct to<br />
employeesʼ desks. This will transform learning<br />
in organizations of every sort and size.<br />
Students growing up with broadband will<br />
take e-learning at home and school as a given.<br />
They will be more likely to see education as a<br />
lifelong process and will expect ready access<br />
to online, interactive, educational resources<br />
throughout <strong>the</strong>ir lives. They will also have<br />
<strong>the</strong> skills and familiarity with technology demanded<br />
by employers when <strong>the</strong>y enter <strong>the</strong><br />
workforce. We look forward to that future. <br />
58 Issue 2006
9 – 12 October 2006<br />
Sandton Convention Centre, Johannesburg, South Africa<br />
Security.<br />
Africa’s only director-level card event<br />
dedicated to payments, transactions and<br />
loyalty<br />
Cards Africa 2006 brings toge<strong>the</strong>r retailers, banks, card manufacturers and<br />
leading industry bodies to discuss best practice for growth and prosperity in<br />
<strong>the</strong> cards, payments and loyalty market. Delegates will listen to visionary<br />
speakers, network with <strong>the</strong> who’s who of <strong>the</strong> smart card’s industry and learn<br />
from <strong>the</strong> best minds in <strong>the</strong> market, in a fun and interactive environment.<br />
Official publication<br />
Organised by<br />
Topics include:<br />
• Prospering in an evolving cards market<br />
• Key issues in credit and debit<br />
• Fighting card fraud and investing in security<br />
• Enhancing business through card and payment innovation<br />
• Electronic and mobile payments: opportunities and threats<br />
• Building loyalty programmes and marketing strategies to maximise<br />
profitability<br />
• Beyond 2007 – tapping new markets and trends<br />
Register before 2 August 2006 and enjoy an instant 10% discount!<br />
REPLY FORM FAX BACK +27 (0)11 707 8352<br />
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