International funding agenda at Africa telecoms meeting

CAIRO: Monday, 3rd May. 2004

By Guy Berger
Highway Africa News Agency

World support for Africa getting its people connected to the Information Society is a key theme at the “Advantage Africa” telecoms forum taking place in Cairo this week.

It is a subject that has a range of players competing with each other for the most progressive profile – and many of them are prominent at the Egyptian event. But some of the most relevant, such as the USA, are conspicuously absent.

The high level event is convened by UN agency, the International Telecoms Union (ITU). The ITU is on a roll from its high-profile World Summit on the Information Society (WSIS) in Geneva last December.

ITU chief Yoshio Utsumi is clear that his group will want credit for the Cairo occasion. Earlier this year, he warned his organisation that other international groups are “aggressively positioning themselves” to compete with ITU for leadership in promoting the spread of Information Society technology around the world.

While not spelling out who he meant, it is likely that he has in mind the US-supported ICANN, the Internet Corporation for Assigned Names and Numbers, as well as rival UN agencies like UNESCO and the World Trade Organisation (WTO).

Utsumi said that “if ITU is to remain the key international player in bridging the digital divide, as we must, it is crucial that we assume a leadership role in convincing other international organizations to work with us in implementing the WSIS Digital Solidarity Agenda.”

The ITU chief’s reference is to the decision at the Geneva summit to study models for financing digital development, and report back to the second phase of WSIS in Tunis at the end of 2005.

Accordingly, the Cairo meeting – the first big ITU show since Geneva – is part the international politics of “digital solidarity”. Countries like Egypt and Nigeria, and companies like Alcatel, are using the theme to beat their own drums.

The concluding Forum session on Thursday explicitly covers “Digital Solidarity”. It is billed as bringing together the hosts of the Geneva WSIS – i.e. the Swiss government, along with Senegal which first proposed a “Digital Solidarity Fund”, and Tunisia who will host the final summit.

According to the programme, the session “will provide the perfect opportunity to reflect on the achievements of the first phase of WSIS and to plan for a successful implementation of the second phase.”

The session also includes speeches by Nigerian ministers and the UN Economic Commission for Africa.

But noticeably absent are representatives of richer countries whose support would be needed if the ITU is to be able to deliver meaningful digital solidarity and secure its status as harbinger of a globally inclusive information society.


Highway Africa reports from Cairo are made possible with support from the Swiss Agency for Development and Cooperation. Editorial decisions are solely the responsibility of Highway Africa.

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Mubarak opens Africa Telecom 2004
(voice report)

Hundreds of delegatefrom around the world have gathered in Cairo, Egypt to
thrash out African information technology issues. The International
Telecommunications Union Telecom Africa conference has been officially
opened today by Egyptian President Hosni Mubarak. The four-day meeting
between business and government leaders from around the globe will highlight
the latest communication technology and look at ways of improving access in
the region. Thrishni Subramoney reports from Cairo….


While the meeting was officially opened today, the real work begins
tomorrow. The conference title - Access Africa says it all. The delegates,
gathered here will spend the next four days looking at ways of getting and
keeping Africa connected on the information super highway. However, above
all else, it seems to be a business meeting. Just percent of the
participants here aren't from the private sector – and according to ITU
statistics, more than sixty percent of participants say they're here to meet
prospective customers. Almost 300 African businesses – big and small - are
to open their exhibits here at the Cairo International Convention Centre
tomorrow – in the hopes of wooing the public sector with their solutions to
the digital divide.

The South African government delegation being is led by
Information and Communications Minister, Dr. Ivy Matsepe-Casaburri. And
Chairperson of the Presidential National Commission on Information Society
and Development, Lyndall Shope-Mafole will chair a forum on Information
Communication Technology and NEPAD on Thursday. A main issue being toted at
the conference by the ITU this year is the fast-paced growth of mobile
technology in Africa. The mobile market in the region has reportedly
undergone an thousand percent increase in the last five years. Another key
issue is that of bringing broadband connections to the continent – a
technology that is much faster than the dial up connections commonly used in
Africa – South Africa included. Thrishni Subramoney. Cairo.

President Mubarak attends ribbon cutting ceremony at Africa Telecom 2004


By Thrishni Subramoney


ITU Secretary-General Yoshio Utsumi says he hopes this year's ITU Telecom
Africa will play a role in helping reach the goals set at the World Summit
for the Information Society in Geneva last year.

Utsumi was speaking at the ribbon-cutting ceremony to open ITU Telecom
Africa, at the Cairo International Convention Centre today.

"I know there are NGO's and humanitarian agencies that are doing a lot of
good work, and I hope everything's on track. We have a plan of action and a
declaration that came out of WSIS, so at least we have a start," Utsumi
said, chatting to Highway Africa after the formalities.

A new hall – added to the centre specifically to accommodate the ITU Telecom
Africa conference – was inaugurated by Egyptian president Hosni Mubarak, as
part of today's opening ceremony.

Under a veil of tight security, Mubarak did his part, and left almost
immediately. Egyptian Prime Minister, Dr. Atef Ebeid, and Egyptian
Communcations and Information Technology Minister, Dr. Ahmed Nazif, however,
stayed on for a special tour of the new exhibition hall.

A small group of exhibitors excitedly displayed their technological wares to
the dignitaries, extolling their virtues in fast paced Arabic. Tagging
behind at a leisurely pace, Utsumi chatted briefly about the WSIS and how
the current conference would assist in furthering those goals.

"Obviously, this conference is not specifically about WSIS," he said, "But
there will be discussions here that may help bring about those goals. In
fact, there is a part of this conference in which we will discuss WSIS and
how it affects Africa."

The World Summit on the Information Society - the first global gathering
organized by the United Nations to discuss Information Technology - was held
in Geneva last year. A Plan of Action - outlining goals to increase the
access of Information Technology to the developing world - and a Declaration
of Principles - which looked at how the new technology should be regulated -
were adopted at that meeting. The second phase of WSIS is to be held in
Tunisia next year.

Speaking at a press conference after the opening, Utsumi the ITU Telecom
Africa conference - the last one was held in South Africa in 2001 - had a an
important role to play in ensuring that the developing world gained access
to information technology.

"These conferences foster the exchange of ideas, knowledge and technological
know-how," he said.

Business is a big focus at the ITU’s Cairo telecoms conference.

CAIRO: Monday, 3rd May. 2004

By Guy Berger
Highway Africa News Agency

Telecoms companies are out in force at the “Africa Telecom 2004” exhibition and forum in Cairo, and their businesses form a key part of the proceedings.

More than 200 groups are exhibiting their wares at the event, convened by the International Telecommunications Union (ITU), in a context where telecoms – especially mobile – are booming on the continent.

Says the ITU: “The challenge for Africa is to sustain its dizzying mobile growth”. It adds that some people think that existing business models will easily sustain the addition of another 250 million cellphone users to the existing 50 million over the next five years.

However, it suggests that cheaper prices and wider coverage may be needed if the market is to grow any further.

Citing the successful example of Morocco, it says that in one year, the number of cellphone users rocketed from 400 000 to 3 million, because of a wide choice of pricing models, including one where users can buy airtime in amounts that allow for just a few minutes of conversation.

Four out of five African users use prepaid services. A concern, however, is that the average revenue per customer remains low.

Another area for growth is in providing information services in addition to voice telephony on mobile platforms. The ITU recognises that “on average, content services contribute less than five percent to an operator’s total average revenue.” But it argues that services like SMS still get consumers accustomed to non-voice services and pave the way for greater use in the future.

The ITU says that it “helps pave the way for investment,” by sharing information about opportunities and companies involved in telecoms. An event like this in Cairo also brings together arch-rivals in business such as the heads of Vodacom and Econet Wireless which have been at war with each other over business in Nigeria. Vodacom’s Allan Knott-Craig, and Econet’s Strive Masiya, fierce competitors in various African markets, are sharing a platform later in the week.

High on the business agenda of the conference is competition. The ITU
points out that almost two of every five African parastatal telecoms companies have now been privatised to one extent or another. And four in ten countries have also opened up for competition – mainly in the mobile telephone arena.

The ITU says that those countries lagging behind on the continent are the ones that do not have competition. It gives the example of the Democratic Republic of Congo (DRC), and Ethiopia.

The two countries have similar per capita incomes. Yet, the DRC has 15 times greater use of cellphones in terms of its population. Says the ITU: “The difference? Whilst Ethiopia has only 1 GSM operator, the DRC has 3 GSM networks…”.

A tiny fraction of Ethiopians use cellphones – about one in 10 000 people. This contrasts with Morocco where it is one in five people, and South Africa which is approaching three in every ten.

According to the ITU, Africa growth in telecoms is predicted at 17% during 2004.

Regulation of the industry is also under the spotlight at the Cairo summit. The ITU argues that regulators need to encourage “competition-friendly policies such as keeping licence fees to a minimum, and that any lack of transparencies in the business climate are addressed.”

It points out that in just over ten years, the number of African countries with licensing and regulatory bodies for telecoms has risen from five to 40. This enables specialised attention to be given to the development of telecoms in these countries.

One area where regulators are urged to act is in making rural roll-out more attractive to telecoms companies. This would be by “including – and enforcing – higher rollout obligations for new market entrances, or by providing incentives …”

Regulators should also encourage operators to share infrastructure to keep their costs down, says the ITU.

Highway Africa reports from Cairo are made possible with support from the Swiss Agency for Development and Cooperation. Editorial decisions are solely the responsibility of Highway Africa.

Africa telecoms faces new connection challenge

CAIRO: Monday, 3rd May. 2004

By Guy Berger


Egypt’s hieroglyphics are among Africa’s oldest communications, and it is fitting that Cairo is the setting of a landmark event about 21st century ways of communicating on the continent.

But the Africa-wide summit convened by UN agency, the International Telecoms Union (ITU), also needs to give impetus to a lot more growth – including to Internet access.

There is much for the expected 10 000 participants to party about in Cairo. New technology and falling costs have seen extraordinary growth in telephony in Africa, and more is to come. In mobile connections, which are now double those of fixed lines, there are almost 52 million cellphones around the continent.

Says ITU official, Michael Minges: “Mobile technology is the Information Society in Africa.” Yet, there is also a long way to go to reach the 820 million inhabitants of the continent – and to reach even the majority who do have telephone connections but no internet access.

Telecom connections across the continent are vital for people talking to each other, but real participation in the Information Society means they also need access to follow-on services such as Internet email and the worldwideweb – and to high-quality access at that.

The ITU says that though the number of Internet users in Africa rose by almost a third between 2002 and 2003, the bigger picture is that this means there is now just one person in 50 on the continent who is “wired”.

The focus of the Cairo conference will be on growing basic telephone services further, whether through cellular and wireless systems or through cables and copper wires. But the ITU is also reminding delegates that Africa faces an even bigger challenge – the need for fast-speed and “always-on” connections to the Internet.

Known as “broadband”, this rich connection capacity is needed, says the ITU, for activities like tele-medicine. In this scenario, doctors in different geographical areas, for example, can to work together in real-time through an inexpensive videoconference discussion of a patient’s x-rays.

Around the world, also studies show that when people have access to affordable broadband, they use the Internet a whole lot more – because waiting time is cut, and they can also access audiovisual content without problems.

The “broadband” scenario raises the likelihood that users will be charged more for the amount of data (voice, images, etc.) coming through their connection, rather than the minutes they spend using the link.

That’s another way that a development that starts with telecoms triggers models that are different to conventional telephony traditions.

The Cairo summit comes in the context that “broadband” technology has added another level to the digital divide - leaving Africa even further behind than it has been.

The big divide nowadays is not only about access to services for basic telephony, and not only about access to Internet. It is also becoming one about the quality of access to the Internet - between who has broadband access … and everyone else.

According to the ITU, Africa has very little broadband, and what does exist is mainly limited to the relatively few places where there are already fixed lines. The result is that citizens of Luxembourg (450 000 people) have more broadband bandwidth available to them, than the 820 million people in Africa put together.

Because of this, there is interest in Cairo in wireless methods of spreading broadband across the continent. The ITU for one believes that because of the limited fixed line infrastructure, “Africa’s broadband will be driven by alternative access methods” – and in particular, wireless.

It suggests that wireless broadband services in Africa can and should be allowed to kill several birds with one stone – allow for voice, data and internet services. This contrasts with much of the continent where some companies are allowed to do voice calls only, while others may offer only Internet and are banned from providing voice.

The technology treated by the ITU as the most promising is WiMax, which can carry 70 megabits per second over a radius of 50 km. Satellite services could play a role in linking WiMax points together and into the broader Internet, although they are not a major point of discussion in Cairo.

WiMax Internet access does not necessarily mean mobile use – in the way that a cellphone user can keep a call moving from cell to cell. But there are technologies, known as 2.5 generation, which do allow for a degree of Internet connection, even if not quite at the full broadband level.

A factor limiting the growth of information on the Internet in the First World has been the fact that no one wants to pay for content online. However, the ITU points out that people are generally used to paying for telephone services, and that this business model could be the basis for viable information businesses making internet content available via cellphones.

In Korea, more than one in three people use their cellphones to get information from the Internet, especially for entertainment advice and even viewing movies. “M-commerce”, when a cellphone serves as a creditcard with the bill coming onto your phone account, is also taking off in Korea.

The ITU says that “Africa’s robust growth leads that of Latin America and the former Soviet republics, but its jaw-droppingly low penetration rate still leaves a yawning void. Under 6% of all Africans can access telecommunications of any kind.”

If Cairo adds momentum to telecoms growth around the continent, and to broadband Internet as part of this, it will turn out to be an important milestone in tackling the digital divide.


Highway Africa reports from Cairo are made possible with support from the Swiss Agency for Development and Cooperation. Editorial decisions are solely the responsibility of Highway Africa.

Cybersurf – Africa Telecom 2004 – Cairo
May 3, 2004

Hello, good morning and welcome to Cybersurf, coming to you this morning from Cairo, Egypt. I am your Cyberhost, Steven Lang - and yes, you heard right - coming to you from Cairo where I am attending the Africa Telecom 2004 exhibition and forum.

The International Telecommunications Union event – Africa Telecoms has already been held in Egypt before and at least twice in South Africa. The whole aim of the event is to have top technology manufacturers display their wares at an exhibition while at the same time there is a parallel forum where business people, government officials and other interested parties discuss policies, strategies, technologies, how to implement and how to regulate them.

The atmosphere here is bullish as Egypt is asserting itself as the new Internet leader in Africa. There is an air of self confidence as the country shows off the considerable strides it has made in recent years.

Later today, the ITU is going to release a fairly positive report about telecommunications growth in Africa over the last few years. The report points to the tremendous growth of the mobile telephone markets in Africa saying that this is the first continent where the number of cellphones has outstripped the number of landlines. It also says that the number of cellphone users in Africa has doubled between 2001 and 2004.

These figures are very encouraging, creating the impression that Africa has suddenly become a world leader in mobile telephone penetration, but in fact these figures look impressive simply because they are compared to the incredibly poor rollout of fixed line phones in Africa.

Fixed line telephony has in Africa been largely the responsibility of governments and more often than not the private sector has set up and operated the cell phone networks. It can, therefore be argued that if you want to help Africans get access to the latest information technology, let the private sector do it.

However, no-one is seriously arguing that a complete, laissez faire free-for-all would help bridge the digital divide – there is broad consensus that a free market system run under the guidance of a truly independent IT regulator - is the best model to maximise Internet access.

The real problem is that while most African governments do recognise the importance of a regulator and of well defined policies to help promote IT access, only about one third of the countries have actually opened their domestic markets and set up a regulator with teeth. Critics argue that because the Independent Communications Authority of South Africa, ICASA has been less than effective in releasing the Telkom stranglehold on telecommunications, South Africa is not one of the select group.



More on this and other issues raised here at the Africa Telecom in Cairo next week in Cybersurf.

Till then, keep on surfing.