How to Drive a Business on the African Information Highway

By Thrishni Subramoney

Highway Africa News Agency

CAIRO: "Managing a business is like driving a four-by-four. If you're on a road in Europe, you cruise along – you hardly put your vehicle into four-by-four mode. But in Africa, you have to be ready for surprises, the environment is constantly changing, you have to adapt moment by moment. You're always in four-by-four mode."

That was the analogy that Marc Mesle, Vice President (Africa) of French mobile phone company Orange, had for delegates at a forum on successful business models at the Africa Telecom 2004 conference.

With a power-point presentation featuring engaging photographs of rural scenes used as metaphors for good business practice, Mesle illustrated how it was possible to run a successful African telecommunications business.

He said that the key to making the most of the African market lies in tailoring products according to the needs of the market. He gave the example of his company not yet introducing “third generation” (internet access) technology to their cellular service Africa yet, because enabling voice communication is their first priority.

"Don't forget that 95 percent of African people have yet to be introduced to mobile communication," he pointed out. He urged businesses entering the African market to be "realistic".

"There are challenges that you have to solve creatively. For instance, the power supply in some areas is unreasonable, and most of all you have to difficult economic conditions."

Fola Odufudwa, the Executive Director of eShekels Limited in Nigeria, took a more high-flying view. In his vision of the future of African communications, Odufuwa painted a picture of "ubiquity".

"Access points will be mobile. The primary means by which to reach consumers will be mobile. There will be no let-up to mobile demand," he said.

Odufudwa says the mobile phone is an important step in bringing ICTs to Africa.

"The mobile phone is the first PC that many Africans will see," he added, pointing to much publicized ITU statistics which show the exploding mobile industry on the continent.

He says the mobile industry will continue to flourish in Africa because Africans are "entrepreneurial" and "mobile" in nature. He predicts that "ubiquity" – total access and spread of telephony - will collapse traditional business models, because there will no longer be a need for traditional delivery mechanisms.

Gordon Graylish, Intel's Director of Marketing said his own company looked at the problem of creating a successful business model differently.

"We see 'accelerated convergence' as the key," he said, "Because, the way we see it, any device, anywhere, at any time, computes."

He defined "micro-convergence " (when two simple devices – like a computer and telecommunications networks combine to form a device that is completely different – like the Internet) and "macro-convergence" (when a complex device like the Internet gives rise to new services and changes the norms and behavior in society).

Graylish says that as telecoms technology takes further root on the continent, affecting every sphere of life, broadband and wireless technology becomes essential. He says Intel predicts that by 2009, there will be 100 million public hotspots – allowing wireless internet access - and 200 million other access points in Africa.

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