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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 />

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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


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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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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


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Lamia Delenda, Deputy Director, Group Spectrum<br />

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Giovanni Canepa, Business Development Director,<br />

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Kerry Ritz, MD, Vonage UK<br />

Mattias Hansson, Founder & CEO, OptiCall AB<br />

Anders Halldin, CEO, Woize<br />

Matthias Peter, COO, Hello AS<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 />

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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 />

YES! I am interested in Cards Africa 2006<br />

I would like to attend <strong>the</strong> conference – please send me more information<br />

I would like to know more about promoting my company at this event – please contact me<br />

Mr / Mrs / Miss First name: Surname:<br />

Job title:<br />

Company:<br />

Postal address:<br />

Postcode:<br />

Tel:<br />

Mobile:<br />

Fax:<br />

Email:<br />

www.worldofcards.biz/2006/cardsza<br />

Terrapinn0823


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