NEPAD s Impact on the Growth of ICT: Broadband Infrastructure Network ready for roll-out
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1 NEPAD s Impact on the Growth of ICT: Broadband Infrastructure Network ready for roll-out Presentation to the IT News Africa Innovation Dinner Johannesburg, October 27, 2010 By Dr. Edmund Katiti, Policy & Regulatory Advisor, and Acting Head of the NEPAD e-africa Programme
2 NEPAD e-africa Programme previously known as the NEPAD e-africa Commission ICT Task Team of the NEPAD Planning and Coordinating Agency (NPCA), aka NEPAD Agency The mandate of the NEPAD e-africa Programme is to develop a broad ICT strategy and comprehensive action plan with the objective of: Accelerating the development of African inter-country, intra-country and global connectivity Promoting conditions for Africa to be an equal and active participant in the Global Information society 2
3 Developing 3 Pillars of ICT No Pillar NEPAD Programme 1 ICT Infrastructure NEPAD ICT Broadband Infrastructure Network 2 Skills Development among African population NEPAD e-schools Initiative 3 e-services and e-applications a) NEPAD e-payment Gateway b) NEPAD e-government
4 THE NEPAD ICT BROADBAND INFRASTRUCTURE OBJECTIVE To ensure that all African countries are connected to one another by a broadband fibre-optic cable network that is, in turn, linked to the rest of the world through submarine cables. Development of the NEPAD Network started on two tracks: 1. NEPAD ICT Broadband Infrastructure Network covering 23 countries in Eastern and Southern Africa 2. NEPAD ICT Broadband Infrastructure Network for West, Central and North Africa. 44
5 Developmental Objectives 1. Reduce the Cost of Communication 2. Have Reliable and Secure Communication Disparity in cost of communication: Monthly Cost of E1; Developed Countries $10-20, African average $5,000 Development of a Policy & Regulatory Framework The development of a transparent policy and regulatory environment was needed to remove regulatory barriers to the establishment of the cross-border network and to encourage broad private sector investment in the network. Policy principles developed with aims of: achieving developmental objectives and addressing stakeholder concerns 55
6 DEVELOPMENT OF THE POLICY AND REGULATORY FRAMEWORK The policy principles were: 1. The application of open, non-discriminatory and affordable access to these networks. 2. Equitable joint ownership of the backbone infrastructure 3. Acceptance that cross-border terrestrial and submarine cable segments of these networks can be developed, owned, and maintained by Special Purpose Vehicles (SPVs): Legal entities with shareholders. 4. Basic Broadband Infrastructure be viewed as public good 5. Application of the principle of public private partnerships (PPP) to these networks. These principles were to apply to the submarine as well as the terrestrial segments of the network, and it was proposed that a protocol be signed by countries to underpin their collaboration in developing the network. 66
7 SIGNING OF THE KIGALI PROTOCOL UNDER AU AUSPICES The Protocol was signed in Kigali, on 29 August 2006 By November 30, 2006, 12 countries had signed the protocol. Some have ratified while other are in the process of ratifying it. Botswana Lesotho South Africa Mauritius Rwanda Malawi Zambia Madagascar Uganda Tanzania Zimbabwe DRC Protocol came into force in 2008 after in was ratified by more than half of the countries that signed it. Countries that were unable to sign the protocol within agreed timeframe, may now accede since it is now in force: i.e. it has been ratified by more than half of the signatories. Countries outside Eastern and Southern Africa can also accede to the protocol. 77
8 Resolutions of the Ministerial IGA Meeting on October 15, 2007 Welcomed NEPAD-led collaboration on high capacity submarine cable with potential to connect Africa to Europe, Middle East and India. Named the submarine cable system Uhurunet Named the NEPAD Terrestrial Network Umojanet Recommended name for submarine company to be Baharicom Requested AU Commission to develop modalities to enable any African country to accede to the Kigali Protocol Mar 2008, AUC Legal Counsel confirmed that any African country that wishes, can accede to the Kigali Protocol 8
9 Access to submarine cables for African countries Morocco Algeria Tunisia Libyan Arab Jamahiriya Egypt Mauritania Mali Cap Verde Niger Eritrea Djibouti Senegal Chad Sudan Burkina Gambia Faso Benin Central Nigeria Guinea Bissau African Ethiopia Ghana Republic Sierra Leone Ivory Cameroon Coas Rwanda Uganda Togo t Equatorial Gabon Republic Kenya Democratic Burundi Guinea Guinea Malawi of Congo Tanzania Congo Angola Zambia Comoros Full access to submarine cables Limited access to submarine cables No access to submarine cables Namibia Zimbabwe Madagascar Mauritius Botswana Mozambique La reunion South Africa
10 Uhurunet Submarine Cable System To UK 5-10
11 Co-Building of ACE Submarine Cable In Oct 2009, Baharicom signed MoU with ACE Consortium to co-build the Africa Coast to Europe (ACE) submarine cable. As co-builder of the ACE/Uhurunet system, Baharicom will reduce the cost of market entry on the West African cost. The ACE/Uhurunet submarine cable system, is led by France Telecom, one of the most experienced submarine cable developers. It will stretch 14,000 km from France to South Africa, connecting every country along the West coast of Africa. Supply contract for ACE/Uhurunet was signed in Paris on June 5, ACE/Uhurunet will be operational in mid 2012.
12 ACE/UHURUNET SUBMARINE CABLE SYSTEM
13 The Way Forward for Uhurunet in East and North Africa Discussions are on-going with cable developers (Seacom, TEAMS, EASSy, and LION) for Uhurunet collaboration on the Eastern and Northern Coast of Africa. Biz Plan for Uhurunet East & North is available and is being shared with interested Parties Investment in Uhurunet being aggressively sought, and several MoUs have been signed with interested Parties Uhurunet will be achieved in segments Segments will be completed at different times Segments may have different specifications and capacities but will operate seamlessly 13
14 UMOJANET: Terrestrial Cross-Border Network Detailed Feasibility Study for Eastern & Southern Africa. The study focussed on the following: Identifying all broadband optical fibre infrastructure in region. Identifying gaps in existing fibre optic infrastructure along the routes of the proposed NEPAD network. Identifying plans to close such gaps. Determining cost of leasing fibre optic cable capacity from existing operators / cable owners and building of new fibre optic cable infrastructure where necessary. Estimating the cost of operating a Regional Operations Centre and data centre from which the entire network would be monitored, managed, and controlled. Estimating the costs of establishing and equipping nodal points in each country. Undertaking a detailed study of traffic flow in the network. Proposing an optimum network in terms of network economics, configuration and costs.
15 Network Design Options and Associated Costs 1. An entirely new network to be built in the 21 countries in the region. 2. A network for the 21 countries using a maximum of capacity leased from optical fibre infrastructure owners and a minimum of newly built infrastructure. NETWORK OPTION TOTAL CAPEX (NPV over 15years) TOTAL OPEX (NPV over 15years) Build an entirely new network $1.3 bn $2.1 bn Maximise lease / Minimise new build $0.7 bn $1.9 bn
16 Available and Required Segments of the Proposed NEPAD Network in Eastern & Southern Africa Status Km % Operational 17,400 60% Under Construction 2,300 8% Planned 6,600 23% Required new build 2,900 9% Total Km required 29,200 Above figures are thought to be typical of what pertains in other regions of Africa.
17 The map below illustrates a possible network configuration for initiating the establishment of the NEPAD ICT Broadband Infrastructure Network for Eastern and Southern Africa: RNOC Country Node Country IP Router Landing Station Connectivity (STM-1s) leased from operators in the ratified countries
18 Start of Umojanet in Southern Africa The table below shows the estimated costs of establishing this preliminary Umojanet Network in Southern Africa: Maximum Lease/Minimum Build scenario: Cost item Unit / Facility Total cost US$ Regional Network Operations Centre $ Country Nodes $ CAPEX: Add-Drop Mux (Country nodes) $ Total CAPEX: $ STM-1 ports at all country nodes Leased capacity: Total Annual Lease Costs: $ Regional Network Operations Centre $ OPEX (Annual O & M costs): Country Nodes $ Total Annual OPEX: $ The NEPAD SPV owns and operates its country nodes and RNOC but leases STM-1s from national operators.
19 Umojanet Cross-border Terrestrial Network In March 2010 the IGA approved a proposal by a group of African Investors to set up a Special Purpose Vehicle (SPV) that will implement Umojanet. The SPV has a provision to accept investments from all African countries. Umojanet Corporation (the SPV), was incorporated and has identified France Telecom / Orange Group, as a strategic/technical partner for rolling-out Umojanet. Umojanet Corporation has completed a Business Plan for rollingout Umojanet in 10 countries in Eastern and Southern Africa, and 12 countries in West and Central Africa, in Umojanet Corporation is now looking for investors from the initial 22 countries where the roll-out will begin. 19
20 Contacts: Dr. Edmund Katiti Tel: Fax: Thank You
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