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Spotlight on African broadband costs

By Vanessa Haarhoff
Johannesburg, 20 Nov 2007

The UK-based Global VSAT Forum (GVF), in conjunction with conference organiser UK-EMP, will host the third West African Satellite Conference, which kicks off tomorrow in Abuja, Nigeria.

The conference will shed light on the latest developments in satellite broadband networking technologies and their economic benefits in vertical markets. These markets include the oil and gas business sector, the banking sector and the wider business enterprise sector, explains Martin Jarrold, CEO of the GVF.

The conference is a platform for business operators in these vertical markets to collaborate with satellite and other ICT vendors, he adds.

Satellite installation in the region is vital to build real-time business operations in a region that craves affordable broadband.

"Africa`s proposed terrestrial and submarine fibre optic roll-outs are not keeping up with the urgent need to bring affordable broadband into the vertical business markets," notes Jarrold.

Access to the West African submarine cable SAT-3 is via landing points that are incumbent-owned and, therefore, broadband is expensive.

A Namibian Internet service provider (ISP) explains that the company pays Telecom Namibia (which has monopoly over the landing point) around R18 000/MB for international bandwidth.

"Through satellite technology, we can bring this in for R13 200/MB, a huge saving if one considers the fact we buy bulk bandwidth," says the ISP.

Jarrold notes that satellite technology for a broadband carrier is the most accessible and efficient medium to offer broadband in Africa.

The launch of Nigerian-owned and operated geostationary satellite Nigcomsat-1 is a significant development since the second GVF gathering, explains Jarrold. Nigcomsat-1 was launched in May, to help bring affordable broadband to the region.

"The satellite has reduced the price of broadband in the West African region considerably, helping bring down the cost of business on the ground."

The satellite has transponder capacity between SA and Europe, creating more affordable broadband offerings for the African continent as a whole, not just the West African region, explains Jarrold.

The conference will also focus on the need to provide practical VSAT installation training for students to create skills and backup for the satellite industry, he adds.