Despite the successful growth of cellular networks, many developing nations of the Commonwealth have difficulty in securing the investment to provide broadband access, because they lack adequate project funding from venture and development capital.
This is according to CEO of Commonwealth Telecommunications Organisation (CTO), Dr Ekwow Spio-Garbrah, who says to address this need, the CTO has been authorised to set up its Commonwealth Telecom Development Fund (CTDF).
This is to provide risk capital investment jointly with operating partners, primarily to develop wireless broadband networks and services that will deliver urgently needed Internet access and services, vital for promoting economic development, he says.
The fund, jointly promoted by investment advisers future realities and fund managers Ashmore Group, seeks to support basic objectives of providing ICT development in underserved regions of the Commonwealth, and will help provide access to fast-growing, profitable wireless telecom projects in such developing economies, the CTO says.
Speaking on its benefits, the CTO's director of programmes and business development, Bashir Patel says, “The CTDF will be an independently-managed fund, established and sponsored by the founder investors in the Commonwealth Telecom Development Company, whose Governing Board will be able to exercise overall control of the fund.”
He says the founder investors will have the chance to secure a place on the governing Board and to contribute to setting the Fund's investment strategy.
“They will be able to secure advance knowledge of new investment projects with reliable potential partners. This will enable investors in the Fund to propose new projects to build new networks or expand existing ones,” he adds.
A number of ministers also indicated their support for the timely initiative. According to Dr Ignace Gatare, the Rwandan minister for Information and Communications Technology: “This initiative is one of the critical elements in realisation of a sustainable ICT development, ensuring that telecommunication services reach the people in emerging markets.
He says Rwanda has always placed critical importance of ICT to national development, and sees the establishment of the fund as key solution in addressing challenges for financing ICT development in the developing world.
A number of other commonwealth countries stretching from the Asia-pacific region to Africa and the Caribbean have also expressed their strong support including Fiji, Brunei, Malaysia, Pakistan, India, Rwanda, Kenya, Tanzania, SA, Ghana, Nigeria, Sierra Leone, Trinidad and Tobago and Jamaica, the Commonwealth says.
For sovereign investors and global operators seeking to increase their exposure to the growth of broadband in emerging markets, the CTDF will be the first multi-country, public-private, commercial investment fund, offering the opportunity to invest in a diversified portfolio of wireless telecom assets, in partnership with established operators in the founder member states.
The CTO speaks for 55 countries, whose emerging markets of two billion people, offer the greatest global potential growth in telecommunications demand. While at least 50% of their people now have access to a mobile network, access to broadband Internet services is very limited, the organisation says.
The Digital Commonwealth's goal is to deliver broadband access to all communities in its member states and is the reason for the establishment of the CTDF.
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