RELIABLE TELECOMMUNICATION SERVICES FOR ECONOMIC AND SOCIAL DEVELOPMENT IN AFRICA

1. ITU-T Workshop on Delivering Good Quality Telecommunication Service in a Safe Environment in Africa(Nairobi, Kenya, 26 July – 27 July 2010 ) RELIABLE TELECOMMUNICATION SERVICES FOR ECONOMIC AND SOCIAL DEVELOPMENT IN AFRICA Paul Kiage, Manager/Projects M&E CCK

2. Agenda • Overview • Analysis of Key factors for Telecommunications Growth in Africa • Economic Benefits • Social Benefits • Regulatory Approaches • Conclusions

3. Telecommunications Overview It is estimated that 370 million people in Africa are connected through mobile prepaid services 85% (2009) Penetration of about 42% by Q1 of 2009 Africa has >80% of the population in the rural. But only 60% - 70% of population covered Extensively voice service but evolving to data broadband and mobile Internet The dominant technology: GSM, GPRS/EDGE; 3GSM:- W-CDMA and HSPA.

4. ICTs Statistics for top 15 countries in Africa

5. Africa’s Digital Divide Trends Africa: connections per 100 people The fixed remains fixed: Therefore Africa must adopt wireless

6. ICTs Coverage Gap Analysis: 24 AICD

7. Key Growth Factors : Industry Forces • The Governments Regulatory Reforms – Liberalization and increasing competition – Market orientation • Changing customer needs : Voice to broadband services, Mobile Internet, MMS • Globalization /internationalization : International gateways liberalization/Submarine cables and roaming services • Substitute products and technology evolution: • One Network enhancing communication across countries in Africa e.g. Zanin

8. Key Growth Factors : Resource Based View • Capital Investments: Enabling investment policies • Human resource development initiatives: • Technical and managerial skills : development of local pool • Motivation and retention to avoid brain drain • Creativity and Innovations: New usage, new markets in rural : For example money transfer services; e-agriculture, e-health, e-education, e-government etc • Technology innovations: LTE, new products, quality, and reliability, affordability of services

9. Analysis Relating ICT Policies to Development • There exist positive correlation between telecommunication and economic development • ICT policies in Africa recognises the central importance of reliable access to telecommunications in the achievement of economic and social goals • Reliable, affordable and easy access to telecommunication services have been identified as key pillars to social and economic development in African countries Kenya included (Vision 2030), Ghana, Rwanda etc

10. Economic Benefits Contribution to GDP: Telecommunications generates 3.5-5.6 percent of National GDPs in Africa, a significant positive fiscal impact on development Source: AICD

11. Revenue for Governments: License fees & Taxes Source: AICD.

12. Foreign Direct Investment Influx of FDI From negligible Foreign Direct Investment (FDI) a few years back, the telecom sector in Africa has attracted foreign investment on license and infrastructure roll-out The private sector has driven investment in the sector mostly operations in mobile communications in the form of privatizations of the incumbent Telcos, license fees and infrastructure roll-out http://ppi.worldbank.org/

13. Poverty: An outcome of interaction between and reinforcement of economic, social, and political processes which can lead to exacerbation or alleviation of deprivation experienced by poor men and women (World Bank,2002) Reliable ICTs has contributed towards reduced poverty Employment: Directly and indirectly added jobs to employment in the African countries. Social Benefits – Impact on Poverty and Employment 13

14. Social Benefits cont’d Other Benefits: • Increased social networking: face book, MySpace, YouTube etc • Increased cultural diffusion, exchange & learning • Increased access to relevant information for marketing and distribution of agricultural products and other goods manufactured in rural Africa • Growth of local industries including relocation of industries from congested urban to rural areas • Accelerated and integrated development of rural areas by playing a catalytic role in development • Increased access and relying of information on medical treatment, education, disaster relief and administrative / improved governance • Improved citizenry empowerment e-government services, m-banking, e-health, e-education etc. • Improved sense of security and ability to contact emergency services 14

15. Regulatory Approaches for Sustainable Telecommunications Development in Africa • Unified Licensing framework (ULF) facilitating fixed-mobile convergence • Simplify the licensing regime to accommodate rapid technological change and emerging competition • Service licensing approach as opposed to technology • Review of regulatory framework to attract private investment • Abolish / reduce taxes on handsets and airtime • Enabling interconnection policies • Integrate Africa into the global network through fibre optic undersea cables 15

16. Regulatory Approaches for Sustainable Telecommunications Development in Africa • Development of infrastructure sharing policies (sites, masts & ducts) • Pursue deeper levels of liberalization by lifting the remaining exclusivities; introduce mobile number portability (MNP) etc • Universal service obligations / roll-out targets • USF to bridge the existing ICT access gaps that are not commercially viable 16

17. • ICT technology facilitates service delivery hence its reliability & critical purpose socio-economic development • Telecom sector liberalization has and is continuing to improve access to telecom services to nearly all segments of the society in Africa • Economic and social benefits have been significant and continue to multiply • Governments are keen to undertake measures necessary to ensure sustained growth in socioeconomic benefits Conclusion 17

18. Thank You!