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Bridging the Digital Divide in Africa and Around the World

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Bridging the Digital Divide in Africa and Around the World BRIDGINGBRIDGING THETHE DIGITALDIGITAL DIVIDEDIVIDE ININ AFRICAAFRICA ANDAND AROUNDAROUND THETHE WORLDWORLD Sofie Maddens, Senior Regulatory and Policy Adviser Telecommunications Management Group, Inc. Executive Seminar on CDMA450 Nairobi, Kenya May 14, 2005 OverviewOverview ImportanceImportance ofof CommunicationsCommunications forfor DevelopmentDevelopment GlobalGlobal ImpactImpact ofof WirelessWireless TechnologyTechnology TheThe AfricanAfrican RegionRegion 3G3G TechnologiesTechnologies inin AfricaAfrica IntroductionIntroduction toto CDMACDMA 450450 AdvantagesAdvantages ofof CDMACDMA 450450 TechnologiesTechnologies CDMA450CDMA450 CaseCase Studies:Studies: BrazilBrazil andand thethe CzechCzech RepublicRepublic WirelessWireless TechnologiesTechnologies andand thethe DigitalDigital DivideDivide inin AfricaAfrica Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya IMPORTANCEIMPORTANCE OFOF COMMUNICATIONSCOMMUNICATIONS FORFOR DEVELOPMENTDEVELOPMENT Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya ImportanceImportance ofof CommunicationsCommunications ForFor DevelopmentDevelopment Important economic sectors (banks, insurance companies , airlines, import/export, ...) are almost entirely dependent on communications to thrive and to survive on national, regional and international level Coherence of country can be improved through effective means of communications Education and health need means of communication and exchange of information to develop in line with international examples Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya GLOBALGLOBAL IMPACTIMPACT OFOF WIRELESSWIRELESS TECHNOLOGYTECHNOLOGY Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya MobileMobile surpassessurpasses fixedfixed…….. Worldwide fixed-line and mobile telephone subscribers, millions 2,500 By 2002, global mobile 2,000 penetration had surpassed Mobile fixed-line penetration, and the gap has grown in each 1,500 subsequent year At the end of 2004, there Fixed 1,000 were 1.7 billion mobile subscribers around the 500 world, or approximately 25 percent of the world’s population 0 2000 2001 2002 2003 2004 2005 Source: Telecommunications Management Group, Inc. (2004 estimate and 2005 forecast). Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya ……andand eveneven surpassessurpasses 100%100% penetrationpenetration inin somesome countriescountries Mobile Subscribers as % of Population, 2004 125 120 By the end of 2004, seven 115 countries already had mobile 110 penetration of over 100 105 percent and 140 countries 100 had more mobile than fixed 95 90 UK Italy Israel Sweden Hong Kong Hong Czech Rep. Luxembourg Source: TMG, 2004 Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya CountriesCountries withwith moremore mobilemobile thanthan fixedfixed telephonestelephones (2002)(2002) Source: ITU World Telecommunication Indicators Database Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya ItIt isis notnot justjust aboutabout voicevoice…….. $100,000 y = 23995x R2 = 0.6681 $10,000 $1,000 $100 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% For each 1% increase in mobile penetration, GDP per capita goes up by US $240 Source: Michael Minges, TMG, and ITU World Telecommunications Database Statistics, 2003 Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya …………itit isis aboutabout voicevoice andand datadata $100,000 y = 48948x + 103.27 R2 = 0.7387 $10,000 $1,000 GDP per capita, 2002 GDP $100 0.0% 0.1% 1.0% 10.0% 100.0% Internet penetration, 2002 For each 1% increase in Internet penetration, GDP per capita goes up by US $593 Source: Michael Minges, TMG, and ITU World Telecommunications Database Statistics, 2003. Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya MobileMobile speedsspeeds IMT-2000 (3G) 2,400 Broadband (>256 "Offical" speed kbps) Typical speed kbps 384 156 350 75 200 550 10 30 60 100 GSM cdmaOne GPRS CDMA 1x EDGE WCDMA CDMA EV-DO Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya THETHE AFRICANAFRICAN REGIONREGION Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe AfricanAfrican RegionRegion InIn 20012001 mobilemobile subscriberssubscribers surpassedsurpassed fixedfixed subscriberssubscribers inin AfricaAfrica –– thethe firstfirst regionregion inin thethe worldworld toto achieveachieve this.this. InIn 20032003 AfricaAfrica hadhad 7373 millionmillion voicevoice telephonytelephony subscriberssubscribers –– 2222 millionmillion fixedfixed andand 5151 millionmillion mobile.mobile. InIn 1919 AfricanAfrican countries,countries, mobilemobile phonesphones accountaccount forfor atat leastleast threethree quartersquarters ofof allall telephones.telephones. ItIt isis expectedexpected thatthat therethere willwill bebe 6767 millionmillion mobilemobile subscriberssubscribers inin AfricaAfrica byby thethe endend ofof 2005.2005. Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe AfricanAfrican RegionRegion InIn thethe lastlast fivefive years,years, AfricaAfrica hashas addedadded moremore telecommunicationstelecommunications usersusers thanthan inin thethe lastlast century.century. ItIt isis currentlycurrently thethe worldworld regionregion withwith thethe highesthighest levellevel ofof mobilemobile communicationscommunications growth.growth. TheThe numbernumber ofof mobilemobile subscribers,subscribers, however,however, onlyonly representsrepresents approximatelyapproximately 11%11% ofof thethe regionregion’’ss population,population, andand thethe mobilemobile penetrationpenetration raterate isis estimatedestimated toto havehave reachedreached onlyonly 9%.9%. Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe AfricanAfrican RegionRegion Source: ITU World Telecommunications Indicators Database Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe RegionRegion ofof AfricaAfrica Source: ITU Telecom Africa 2004 Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe AfricanAfrican RegionRegion (e) estimated (f) forecast Source: ITU Telecom Africa 2004 Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya TheThe AfricanAfrican RegionRegion InIn ComparisonComparison toto OtherOther DevelopingDeveloping NationsNations Source: ITU World Telecommunications Indicators Database Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya 3G3G TechnologiesTechnologies inin AfricaAfrica Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya 3G3G wirelesswireless couldcould bebe AfricaAfrica’’ss solutionsolution toto broadbandbroadband Limited broadband choices on the continent: • Hardly any cable television networks (most multi- channel television is delivered via satellite or microwave); cable modem access is not a viable option • Less than a dozen operators offering ADSL at end of 2004 and only around 150’000 subscribers; relatively few fixed lines in most countries • Existing fixed wireless offerings (other than CDMA2000) are typically not broadband speed (<256 kbps) and not international standards • Wi-Fi is a distribution technology and does not by itself provide access to Internet; • Wi-Max is still unproven and not commercially available technology Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya 3G3G wirelesswireless couldcould bebe AfricaAfrica’’ss solutionsolution toto broadbandbroadband BUTBUT…….... 3G3G ••isis herehere today,today, ••isis anan internationalinternational standardstandard ••andand providesprovides broadbandbroadband speedspeed ••inin thethe 450450 MHzMHz band.band. Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya CDMA2000CDMA2000 1X1X andand WLLWLL inin AfricaAfrica Country Operator Spectrum Status Vendor Coverage Band Algeria Algerie Telecom 1900 MHz July 2004 ZTE 43 provinces in Algeria Angola† Movicel 800 MHz Jan. 2004 Motorola Benguela, Cabinda, Nortel Luanda Egypt Telecom Egypt 800 MHz 2Q 2004 Nortel Coverage Pending Ethiopia ETC 800 MHz, TBA Huawei Addis Ababa 450 MHz Nationwide Kenya Telekom Kenya 450 MHz TBA Huawei Coverage Pending Nigeria Cell Comm. 800 MHz Sep. 2003 TELOS Abuja, Lagos, Ogun Nigeria Intercellular 800 MHz Feb. 2004 Motorola Lagos Nigeria Multi-Links 1900 MHz Mar. 2003 Nortel Lagos Nigeria Reliance 1900 MHz Mar. 2003 Ericsson Nationwide Nigeria Starcomms 1900 MHz July 2003 Ericsson Lagos Huawei Kano Uganda MTN Uganda 800 MHz Nov. 2004 Huawei Coverage Pending Uganda UTL ‡ 450 MHz TBA Huawei Coverage Pending † Mobile. ‡ EV-DO. Source: TMG, Inc. adapted from CDG. Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya 3G3G MilestonesMilestones inin AfricaAfrica 2626 MarchMarch 20032003 •• MultiMulti--LinksLinks [Nigeria][Nigeria] LaunchesLaunches AfricaAfrica’’ss FirstFirst CDMA2000CDMA2000 1X1X WirelessWireless NetworkNetwork 2222 SeptemberSeptember 20032003 •• MovicelMovicel (Angola)(Angola) awardsawards 11st mobilemobile 3G3G contractcontract (CDMA2000(CDMA2000 1x)1x) AprilApril 20042004 •• ScancomScancom (Ghana)(Ghana) announcesannounces equipmentequipment awardaward forfor EDGEEDGE networknetwork 77 JulyJuly 20042004 •• OrascomOrascom TTéélléécomcom AlgAlgéérierie introducesintroduces multimediamultimedia EDGEEDGE mobilemobile servicesservices Sofie Maddens Executive Seminar on CDMA450 May 14, 2005 Nairobi, Kenya 3G3G MilestonesMilestones inin AfricaAfrica 1616 SeptemberSeptember 20042004 ••
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