Challenges facing ISPs in Challenges facing ISPs in Africa: a view from an African Africa: a view from an African

ISPISP

William Stucke

AfrISPA

ZAnet Internet Services

Challenges common to all ISPsSpecial Challenges faced by African ISPsResponse to ChallengesRelationship with Telco'sOpportunities

Challenges common to all Challenges common to all ISPsISPs

Cost of bandwidth & carrier servicesContinual investment in infrastructureHighly competitive marketDiscretionary consumer & business

spendingLow margins

Special Challenges faced by Special Challenges faced by African ISPsAfrican ISPs

Telco monopolies – uncooperative incumbents Lack of competition among Telco’s Delays in supplying lines & carrier services Inhibiting Legislation Extremely high cost of international bandwidth

(pay for both legs) High cost of local carrier services Distance from the “centre of the ‘Net”

Special Challenges faced by Special Challenges faced by African ISPs - 2African ISPs - 2

Lack of trust and cooperation among local ISPs

Lack of local IXPsCost of imported hi-tech equipment – high

taxationAvailability of imported equipmentPurchasing parity and foreign exchange

restrictions and fluctuations

Special Challenges faced by Special Challenges faced by African ISPs - 3African ISPs - 3

Lack of education among potential users – not only computer literacy, but literacy itself

Limited technical capacity – lack of skilled engineers

Brain-Drain – engineers get experience and then leave Africa for the West

Rising to the ChallengeRising to the Challenge

ATUAfrISPAIncumbent Telco’sJoint Efforts

Rising to the Challenge - ATURising to the Challenge - ATU

Improve legislation – enabling, not restricting Fully independent and powerful Regulators in

every country Effective regulation of Telco’s – prevent abuses of

power Introduce competitive Telco’s Don’t charge duty on imported equipment – give a

rebate Fully liberalise VoIP in all African countries

Improving LegislationImproving Legislation

Restrictions on who can provide international connectivity, and how

Restrictions on wireless local linksLicensing of ISPsRestrictions on use of VoIPRestrictions on use of technology

Rising to the Challenge – Rising to the Challenge – AfrISPAAfrISPA

Foster ISPAs in all countriesEncourage building of local or national

IXPsTraining workshops

How to form an ISPAHow to build & operate an IXP

PAVIX – to provide better connectivity among IXPs in African countries

Rising to the Challenge – Rising to the Challenge – Joint InitiativesJoint Initiatives

Educate legislators and regulatorsEnact enabling legislation / provide

regulatory dispensation to facilitate earth stations for PAVIX

Dialogue with incumbent Telco’sImproved and increased dialogue between

the ATU and AfrISPA

Rising to the Challenge – Rising to the Challenge – Telco’sTelco’s

Recognise ISPs are your best allies, not a threat Internet usage is an enormous force for economic

growth, especially in the ICT sector, and Telco’s benefit directly from this. Internet usage is still growing at >> 50% per annum in Africa

For every $1 earned by an ISP from dial-up customers, the Telco earns $6 from call charges, plus line rental charges from both the ISP and the customer, who frequently installs a first or second line, or upgrades to ISDN or better

Rising to the Challenge – Rising to the Challenge – Telco’s 2Telco’s 2

Over 50% of new leased line installations are ordered directly or indirectly by ISPs

VoIP allows far greater efficiency in local and international carrier capacity usage, which leads to revenue gain due to increased traffic which gives greater utilisation, rather than a direct loss of revenue due to alternative supply

OpportunitiesOpportunities

Leapfrog the West – skip over their 15 years of development

Implement World Class networks nowGigabit networks rather than Megabit

networksPAVIX – move the centre of the ‘Net to

Africa

Pan African Virtual Internet Pan African Virtual Internet Exchange - PAVIXExchange - PAVIX

“IXP in the sky”Four countries so farSatellite link in each country, from each

IXP, to a single satelliteShared infrastructure, shared costsDirect connection between countries

PAVIXPAVIX

Eliminate huge International bandwidth costsIncrease speed and capacity of African

communicationsFoster development of local contentFoster intra-African trade, e-commerce, e-

medicinePeer as an equal with USA, EuropePay for only one half-leg of international links