1. Policy Strategies for Improved Access to ICTs in Africa – Current Developments and Future Challenges Mike Jensen, International Development Research Centre (IDRC), South Africa African Preparatory Meeting for The Internet Governance Forum: Africa: On the Road to Athens Theme II: ACCESS 18 th – 21 st September 2006 Mövenpick Cairo Media City, Egypt Organized by The National Telecom Regulatory Authority, Egypt

2. Lack of Telecom Infrastructure: Still the Major Barrier - In 2005 there were about 26 million fixed lines for the 900 million people in Africa - In Sub Sahara outside South Africa, there were only about 4.5 million lines - 1 in 150 - In many countries more than 90% of these lines are in the capital city and secondary towns, while 70-80% of the people live outside these areas: E.g. Malawi has 8 000 fixed lines for the 10 million people living outside the 4 major towns: 1 line for every 1250

3. Sources: ESRI, GSM Association/Coversoft, ITU, Mike Jensen Teledensity in Africa http://www.idrc.ca/acacia

4. GSM Coverage Cost of calls are high, and data speeds low

5. Current Backbones and Demand Centres in Africa

6. The Access challenge Bandwidth costs 100s of times more than EU/NA – Carnegie Melon found that cross-Atlantic transit prices dropped $20/Mbps/month in mid 2005. African international prices are at least $2000/Mbps/month ==> Bandwidth is extremely limited and insufficient to meet demand - Internet links are usually congested/running at maximum capacity Decision-makers are inundated with demands for more bandwidth Under-utilisation of national ICT and economic resources - expensive investments are wasted Only 20-24 million Internet users (2.5% penetration)

7. Bandwidth Trends

8. Many systemic factors: - Economics - Electricity -Transport -Taxes - Education

9. Restrictive Regulatory Environment - The Key Barrier Lack of telecom competition creates high costs and low investment in infrastructure: ● State owned monopolies still v common ● Some foreign investment in monopolies in return for continued exclusivity ● Limited introduction of competition - 1 or 2 new fixed line players in a few countries ● The limited number of GSM operators (2-3 in each country) making big profits while fixed line operators increasingly redundant & other new technologies prohibited (VOIP, VSAT, WiFi etc)

10. Other Issues - No benefit in Africa from Dot-Com bubble burst - So far little use of alternative infrastructure, e.g rail/electricity/gas lines - Operators do not want to provide to dark fibre -Few national peering points, no regional IXs -E-Rate (discount for education) only present in a few countries, e.g Senegal, South Africa

11. NEPAD’s ICT STRATEGY FOR AFRICA: Ensure affordable access to international communications by assisting African countries to connect to one another by broadband fibre-optic cable systems that in turn link them to the rest of the world through existing or planned submarine cable systems. The strategy should promote: – Collaboration amongst African countries – African ownership and leadership – Regional and continental integration – UN Millennium Development Goals and other targets for the upliftment of African Society – Building competitiveness of African economies

12. NEPAD MODALITIES - Submarine cable systems must form integral part of regional networks - All land-locked countries to have an alternative connection to a submarine cable system - All in place and operational by 2010 Principles: - Equality of ownership and participation by countries of the region - Cooperation in technology transfer and skills development among countries - New international infrastructure to be built according to Open Access policies

13. Open Access Networks: Key Features - Any registered service provider is free to deliver services over the Open Access Network - The OAN operator does not compete with its customers (service providers) by offering services directly to end users ==> Separation of wholesale from retail - All service providers are offered services on fair and non-discriminatory terms and conditions - Consumers are free to choose any service provider Also: Capacity pricing is independent of distance and amount of capacity purchased

14. 17 2 7 6 5 8 16 15 14 13 12 11 10 9 3 1 4 18 o 19 20 31 30 32 21 22 23 24 25 26 27 28 29 33/E22 34 36/E20 37/E19 38/E18 39/E15 43/E8 45 46/E8 49 48 51 52 E5 Links: FIBRE NETWORKS & PLANS Actual Needed 56 44 Funded/Costed 43 E2 47 E4 43 50 E3 E13 38/E18 35

15. Addressing the Last Mile Challenges User Financed Infrastructure Low cost Internet appliances – Thin clients, Mobile Phones & Handhelds Wireless - Local loop / WiFi/WiMax => Mesh networks New low cost VSAT systems Data Broadcasting, e.g WorldSpace, DSTV Using electric power grid infrastructure for voice and data VOIP

16. Alternate Power Sources - Promote knowledge of Solar, Wind, Biogas alternatives - Need for financing, plus IPP policies - Incentives, carbon credits? - Elimination of Import duties - Reduced power consumption

17. Increasing Demand Public access facilities – Telecentres, Cybercafes => Universal Service Objectives Build more relevant content – Electronic Funds Transfer, Agricultural/market info, e-govt Voucher systems Access to credit for purchasing ICT equipment Capacity building To use and manage comms & information facilities To use be aware of and to use new technologies – VOIP, WiFi, VSAT etc.. ❐ Exploit potential of offshoring/ outsourcing from the North (esp via diaspora & African-Americans)

18. Human Resource Development Capacity building for Policy Makers and National Regulators Creation of Regional Centres of Excellence National Internet Training Centres – e.g. CITI Standards for User Training in Computer Applications - Computer Drivers License – ICDL Improved ICT Training programmes at schools, universities, research networks, workplace and informal environment

19. - Accelerated liberalisation and expanded universal service goals - Support for Public Participation in Policy Development ==> - Integrated National Information & Communications Infrastructure (NICI) planning - State support for Telecentres & Multipurpose Community Access, and Community Radio Stations - Universal Smart Cards & E-Commerce policies - Government Content and Applications Development - Access to credit for purchase of ICTs - Adopt a phased approach which priorises activities – infrastructure, connectivity of key decision makers in government National Strategies

20. Key Barriers To Be Addressed Lift restrictions on numbers of licenses for telecom operators, ISPs and broadcasters Drop high license fees and speed processes for licensing Allow data-only private wireless and VSAT Eliminate import duties on ICT equipment Reduce the high cost of international Internet transit in Africa

21. Other Priority Actions Ensure more resources given to transport and power supply networks, alternative energy sources, and smoothing cross-border links Promote other demand building strategies: voucher systems, access to credit for SME ICT businesses Use an agreed set of progress benchmarks Stay technology neutral – let market decide Encourage infrastructure sharing (eg. Masts, rights of way, pylons, gas pipelines etc) Encourage (in interim) price capping for monopoly supplied bandwidth Do not use developed country models

22. Thank You Mike Jensen mikej@sn.apc.org