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IDRC Lib. GVF IDRC Lib. GVF FOUNTAIN COURT, 2 VICTORIA SQ., STALBANS HER TFORDSH!RE, ALl 3TF, ENGLAND TELEPHONE:+44- 1727-884 739 FACSIMILE: +44-1727-884839 EMAIL: david.hartshom ©gvf.org WEBSITE: www.gvf.org I Apr. 2005 Rachel Bouchard Grant Administrator/Admi nistratrice de subventions CRDI / IDRC P0 Box 8500 Ottawa, Ontario KIG 3H9 Heloise Emdon IDRC at DBSA 1258 Lever Road, Headway Hill, Midrand P0 Box 1234, Halfway House, 1685 South Africa Ref: Technical and Financial Reports - Centre File 101618/001 Dear Ms. Bouchard and Ms. Emdon, It is my distinct pleasure to provide the attached Technical and Financial Reports pertaining to the "African VSAT Regulatory Regimes Study" conducted by the Global VSAT Forum (GVF) for IDRC. As reflected herein, the project was completed under budget whilst contributing substantively to expanded access to ICTs in Africa. It has been a genuine privilege working with IDRC and our partners on this important enterprise, and we look forward to further collaboration. In this regard, I also draw to IDRC's attention a recommendation at the end of the Technical Report that outlines a proposed follow-on project that would build upon this successful programme, with potential applicability in every developing and least-developed country in the world. I hope to discuss this opportunity at your earliest convenience. / 71 Hartshom Secretary General GVF REGISTERED IN ENGLAND NO. 3414971 REGISTERED OFFICE: Fountain Court, 2 Viclona Sq., Viclona SI., STALBANS, HERTS, ALl 3TF, U.K. Page 2 6 April 2005 FINAL TECHNICAL REPORT "African VSAT Regulatory Regimes Study" IDRC Grant Number 101618/001 1 April 2005 Conducted by the Global VSAT Forum (GVF) with Headquarters in the U.K. and Correspondent Offices in South Africa and Ghana Primary Research Team: David Hartshorn of GVF and Mike Jensen, an independent ICT consultant, with Substantive Contributions from Geoff Daniell and Gilbert Adanusa of GYF, and Steve Esselaar of LINK Centre 3:' Page 3 6 April 2005 African VSAT Regulatory Regimes Study Table of Contents Project Overview 4 The Challenge 5 The Solution 6 Programme Objectives 7 Programme Design & Implementation 9 Report, Survey and Atlas Dissemination 12 Programme Impact 14 Sub-Saharan Africa 14 East Africa 15 West Africa 16 Conclusions & Recommendations 17 Appendix A: CATIA Project Overview Appendix B: Namibian VSAT Liberalisation Article Appendix C: VSAT Regulatory Questionnaire Appendix D: TRASA/WATRA Press Release Appendix E: SatCom Africa 2004 Presentation Page 4 6 April 2005 Project Overview Enabled by IDRC funding, a research programme was conducted by the Global VSAT Forum (GVF)1 on the regulation, provision and use of satellite-based solutions for social and economic development in Africa. A primary objective of the research programme was to support the Catalysing Access to JCT in Africa (CATJA) project which, with financial support from the U.K. Department for International Development (DflD), aims to develop application strategies and to facilitate implementation of key communications systems (Appendix A: CATIA Project Overview), such as satellite-based Very Small Aperture Terminals (VSAT5). However, major development issues had been identified by regional bodies such as the African Telecommunications Union (ATU) and the New Partnership for Africa Development (NEPAD). The research programme described in this report set out first to clarify the existing and potential role to be played by VSATs in addressing those issues, particularly as they related to improving standards of health, education and business in Africa. This was achieved by conducting a systematic analysis of the current state of Africa's VSAT regulatory and policy frameworks, end-user applications, cost structures, human resources, technical issues, and complementary technologies. unnr existing work in this area — e.g. the GVF's resources, activities and contacts — the programme filled important gaps in research and analysis. This vital information was then made publicly and freely available to ICT stakeholders in two forms: A Report entitled "Open and Closed Skies: Satellite Access in Africa" (available in print and electronic formats); and an online database that includes valuable data on VSAT regulators in Africa and the availability of satellite bandwidth throughout the Continent (www.gvf.org). The Report has already had a major impact. During capacity- and consensus-building workshops funded by CATIA and held for inter-governmental groups representing the Western, Eastern and sub-Saharan African sub-regions, the Report demonstrated how satellite-based solutions are enabling African governments to fulfill public-policy objectives. Further, the Report provided governments with a guideline on how to efficiently regulate VSAT systems and services. As a result, the Report is now reflected in guidelines that have been drafted — and in some cases adopted by the regional inter-governmental groups. This breakthrough has not only accelerated the pace of regulatory reform at the national level (Namibia was the most recent Administration to strategically liberalise its VSAT sector; Appendix B), but has also set the stage for harmonization of regulatory approaches across the Continent.., an essential prerequisite for the provision of region-wide satellite services. As this work continues, the online resource established by the project has also supported the ICT community, members of whom can download French- and English-language versions of the Report, obtain regulator contact details, and learn about African satellite market access and transponder availability. Finally, the online resource has been designed to complement a website currently being developed by the CATIA programme, which envisions the creation of a regulatory database that is maintained and updated by the African governments. GVF is the non-profit association of the global satellite communications sector. The organisation's aim is to improve access to satellite- based solutions throughout the world. GVF provides education and training to ICT stakeholders, facilitates policy and regulatory reform, and co-ordinates a wide range of programmes involving the intemational satellite industry. GVF Membership includes more than 180 organisations in more than 80 countries in every major region of the world. Page 5 6 April 2005 The Challenge Africa's national social and economic development, its regional cooperation and integration and its participation in the global economy is increasingly linked to availability of the Internet and other vital communications services2. Yet, only one in 150 people on average can have access to the Internet. Access has been retarded in Africa by restrictive regulatory frameworks, monopoly privilege, corruption, insufficient access to information tools, antiquated infrastructure, high fixed costs, low economic and investment activity, and more. Currently a number of initiatives are underway to deal with some of these problems. The Acacia initiative of IDRC, the Connectivity Africa initiative being managed by IDRC and the CATIA project of DfID are among the projects aimed at increasing universal access to ICTs in Africa and bridging the "digital divide". The delivery of low-cost bandwidth remains a key objective of these initiatives and critical for solving the chronic access problem in the region. Concurrently, IDRC has launched the research programme that is the subject of this Report and which is focused on addressing the unrealised potential of satellite communications to help address the problem. Low-cost, satellite-based Internet access could respond o the current access crisis in the region and provides an opportunity for last-mile connectivity for people in rural and, in some cases, sub-urban and urban areas. The vast inaccessible terrain makes it difficult and costly for rolling out traditional wire-line networks and implementing fibre-optic links. The lengthy time needed to roll out traditional technologies makes low-cost satellite services attractive particularly to smaller organizations, households, small and medium enterprises, and public organizations. However, the leapfrog to wireless technology is not easy; it is largely hindered by the policy and regulatory environment. Access to VSATs is prohibited in some countries. In other nations hefty licensing fees are levied. Policies for low-cost "consumer grade" satellite services for Internet access are not clear in many nations. A recent surge in the use of Voice over IP and the continued decline of PT&T revenue streams have complicated the matter. Government policies have not kept up with technological developments, and many countries are still protecting their monopoly national telecom operator at the expense of affordable and universally accessible services. Much of the restrictive policy owes to a general lack of understanding of the technology and its impact on society. In countries where private satellite services are allowed, the license fees are often excessive for VSAT services when compared to what consumers in developed countries pay. The tariffs were perhaps appropriate for older satellite technologies, which were far more expensive to operate, largely confining their use to a few large multinational companies. But VSAT terminal prices have declined from, on average, US$16,000 in 1990 to less than $1,000 in 2005, with further reductions presently underway3. 2 This information derives from the terms of reference for the CATIA project, support of which is a primary aim of this IDRC research programme.
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