NEW INFORMATION AND COMMUNICATION TECHNOLOGIES PROJECTS
Africa and its telecommunications, between “dreamed eldorado” and realities
Since the beginning of the 21st century, the African continent has experienced rapid expansion, both demographic and economic. According to forecasts, sub-Saharan Africa would see its population triple by 2050, from 1 to 3 billion inhabitants. Today, the telecommunications sector is one of those considered to be the African "engine for growth" and plays a major role in the development of the continent. The 21st century, the era of telecoms in Africa In the 2000s, the telecom market experienced a meteoric rise on the continent. With the explosion of mobile telephony, Africa has managed to catch up with developed countries: the GSM coverage rate, which was 10% in 1996, increased to 80% in 2010 and in 2008, 246 million Africans had taken out a subscription, compared to only 51.8 million in 2003. Subsequently, the 2010s profoundly changed the use of mobiles, with the arrival of smartphones requiring Internet access. Thus, in 2016, 700 million Africans use a mobile phone, half of which are smartphones. In 2020, the number of smartphones has increased significantly in Africa: more than 660 million inhabitants now have this type of phone, twice as much as in 2016. How has the field of telecommunications achieved such a rise in recent years? In Africa, telecoms have emerged as the "best adapted" technology in the face of the continent's inherent constraints: firstly, thanks to a lower cost of infrastructure than that of wired networks and secondly, because of an ease of deployment which does not does not require long installation times and therefore allows rapid use. Prepaid cards and their payment offers have also been able to meet the needs and constraints of African households with few resources. Finally, the acceleration of the development of telecommunications is partly due to the policy of opening up the market to competition, put in place by African States. Internet and the challenge of “inclusive connectivity” Although several hundred million Africans have access to telecommunications via a mobile (in Africa almost the entire population has a mobile, or even several), a lack of infrastructure persists in certain regions, thus creating inequalities , in particular concerning access to the Internet. The latter must indeed be generalized, mainly in rural areas. Development projects are therefore underway, such as that of Senegal, Guinea, Mali and Mauritania, which recently united around a fiber optic infrastructure project, announced in April 2021, which should serve "basic for the development of a modern, reliable and very high speed regional telecommunications infrastructure", allowing a drop in Internet prices but also a connection to the submarine network, via the cables which will connect the landlocked territories. To enable 'inclusive connectivity', infrastructure challenges must first be addressed across Africa: the World Bank estimates that 'to give an additional 1.1 billion people in Africa access to the Internet from by 2030”, it will take “about 100 billion dollars”. In recent years, telecommunications, media and technology (TMT) has been the largest sector to attract inward investment in Africa. What elements have stimulated this growth? In 2020, “70% of the population of sub-Saharan Africa is not connected to a broadband network”; the majority of the African population “does not have access to a network with 4G or higher speeds” and many areas simply do not have access to networks; fiber remains concentrated in African capitals and major cities and is not widespread in the rural territories, “content hosting data center infrastructures” must be strengthened to “enable the development of local digital services”. In addition, illiteracy is proving to be increasingly problematic for Internet access, sustainable solutions through education and awareness must be put in place, and voice application projects must be developed to enable this part of the population to have access to it (the illiteracy rate is 36% in Africa). Telecommunications infrastructure is therefore booming in Africa. Despite the Covid-19 pandemic, the African telecoms market will undergo significant transformations over the next five years, via foreign investment but also thanks to the various projects and unions between African countries, which no longer target individualistic actions but to respond together to the problems of broadband connectivity, as evidenced by the recent meeting of the International Telecommunication Union (ITU), which brought together African States on March 29 and 30, in order to "encourage innovations, encourage new models of collaboration and promote connectivity and digital solutions”.
Orange's project to create a telecom giant in Africa
The operator has considered forming a strategic alliance with the Indian Bharti Airtel to combine their activities in Africa. Its CEO wanted to become the undisputed leader of the continent. This has been Stéphane Richard's obsession for years. The CEO of Orange has always pushed the lights in Africa, the most promising continent in telecoms thanks to its demography. According to our information, last year he studied two operations aimed at creating the African mobile leader with its Indian competitor Bharti Airtel. The objective was to consolidate the positions of Orange, present in French-speaking countries such as Senegal, Ivory Coast, Egypt or Morocco, and of Bharti Airtel, present in English-speaking Africa in Nigeria, Tanzania and Kenya. . To create at the end of this operation a group flirting with 10 billion euros in turnover in Africa, Orange making 6 billion euros there and its Indian competitor 3.5 billion. Entry into the capital of Orange The two operators worked on two scenarios. The first consisted of a takeover by Orange of the African activities of Airtel, which are listed on the London Stock Exchange. To avoid leaving cash, around 6 billion euros, Orange would have paid the Indian Bharti Airtel in shares, bringing it into its capital up to 10%. Its chairman, Sunil Mittal, also has a seat on the Orange board of directors. This option was soon abandoned. “The State would never have accepted the entry of an Indian shareholder into the capital, explains a source close to Orange. And the very low share price does not help to convince them”. The second plan aimed at the opposite, that Orange bring its African activities to Airtel Africa and take control with 60% of its capital. The participation of the Indian would thus have fallen from 56% to 20%. This scenario, preferred to the first, had the merit of avoiding bringing Bharti into Orange. Above all, it had the advantage of listing Orange's African activities on the stock market through a major acquisition. Then, its CEO, Stéphane Richard, wanted to repatriate the new subsidiary to the Paris Stock Exchange while Airtel Africa is listed in London. Upcoming alliances in Africa Orange and Bharti Airtel have known each other for several years. The French operator bought its subsidiaries in Sierra Leone and Burkina Faso in 2016. He also coveted other countries of the Indian operator in Congo or Chad. Stéphane Richard dreamed of growing even bigger in Africa. Before considering this operation last year, he had tried, at the end of 2020, a marriage with the British operator Vodafone, as revealed by BFM Business. The discussions had stalled because of the opposition of the French state. The objective was also to create a leader in Africa while Orange and Vodafone are neck and neck on the continent with each 6 billion euros in turnover. The alliance between the major telecom operators in Africa will inevitably be on the program of whoever will succeed the CEO of Orange. The group must hold a board meeting next week to ratify the choice of Christel Heydemann as general manager.
Despite rapid growth over the past two decades, Africa's information and communication technology (ICT) sector remains uneven, with most development progress being made in a few countries. From low mobile phone penetration to slow internet speeds and excessive data costs, the pace of development is preventing the continent from growing faster. At present, Africa finds itself at the bottom of the ICT ladder and this situation has serious consequences for both the continent and the whole world. Indeed, ICTs bolster the economies of ICT-rich countries faster than those of poor ones, further widening the development gap between Africa and the industrialized world. The African Union (AU) recognizes that the development of the ICT sector is a key factor in the economic growth of the continent, since it is not hampered by infrastructure deficits. From this platform, its production and consumption sectors could achieve development milestones and drive innovation in manufacturing, trade, mining, logistics and agriculture. As the continent enters the fourth industrial revolution, it faces several challenges, and collaboration with the East could boost innovation. The digital divide: How does Africa position itself? According to the International Data Corporation (IDC), the African ICT market is expected to grow from USD 95.4 billion in 2020 to USD 104.2 billion in 2023, representing a compound annual growth rate of 4.5%. It represents only 2% of the global ICT market, but 8.5% of sub-Saharan GDP. Starting from a low base, the continent is catching up to meet growing demand. Although several African countries have made great strides in developing their infrastructure and access to ICTs, the continent lags behind developed markets and even many of its emerging market peers. For example, less than 10% of African families own a computer and just over 20% have access to the internet, according to "The Digital Revolution in Africa: Opportunities and Hurdles." »; due to the lack of infrastructure, broadband speeds are low, as is fiber access.As a result, mobile broadband subscriptions outnumber fixed line subscriptions by 25 times. Furthermore, for cellular transmission base stations, developed countries have approximately one transmission tower per 1,000 subscribers, while in countries such as Tanzania and the Democratic Republic of Congo (DRC), a single tower can support approximately 3,500 and 6,500 subscribers respectively, according to “Raconteur: Closing Africa's infrastructure gap with sustainability at the heart of Helios Towers. Overall, 95% of African consumers use mobile voice services to overcome the lack of fixed line access, which leads to network congestion and poor quality of service. Additionally, limited supply coupled with high demand means that service providers have significant pricing power, resulting in telecommunications costs in Africa being among the highest in the world. ICT challenges in Africa There is a lack of investment in infrastructure, both in communication networks (fiber, broadband data) and in the hardware and devices that enable participation in these networks. The African Development Bank (AfDB) has estimated that of the $170 billion in annual investment needed to close Africa's infrastructure gap, $7 billion is needed annually for ICT sector development. The World Bank estimates that every 10% increase in broadband penetration leads to a 2-3% increase in GDP growth. The first challenge is infrastructure. The ICT infrastructure deficit in Africa is explained by the poor state of roads and electricity infrastructure (or lack thereof) in some regions increases investment costs and reduces returns. Base stations often have to be installed with a solar power supply unit due to the lack of reliable power grids. For example, the jungle of Congo (DRC), required the British company Helios Towers to install cell phone towers 90 meters high to relay communications above the canopy. The second challenge is funding. This issue is rarely a problem for large ICT infrastructure projects, which are easily supported by governments, donors and international private companies. The real challenge in Africa is bank financing or investor support for tech start-ups and young entrepreneurs. In general, banks require a clean business plan and solid track record, and are unwilling to lend against intellectual property (IP), which is often the only form of collateral available to start-ups. there are. The benefits of ICT investments will go far beyond the sector itself. Africa's internal trade volume is likely to increase significantly due to the recent establishment of the African Continental Free Trade Area (AfCFTA), which will require the use of ICT software for international trade, manufacturing and logistics. The rapid growth of data volumes will also require the development of data centers. The Asia/Africa Opportunity China has been one of the main investors in the growth of ICT in Africa. Despite Western concerns about data leaks and digital spying through backdoors, 70% of the continent's data goes through a Huawei-backed 4G network. Additionally, China has sought to establish a digital silk road, based on its own internet network, as part of Beijing's Belt and Road infrastructure initiative. In addition, Singapore too has left its mark in the ICT sector in Africa. CrimsonLogic, a Singapore-based ICT company, has been involved in over 20 digital business and government projects across the continent, in Mauritius, Kenya, Namibia, Botswana, Ghana and South Africa. In 2018, it signed collaboration agreements with the Kenya Trade Network Agency for a blockchain project and opened an African hub and base office in Kigali. The company has leveraged Africa's unique mobile ICT operating environment by deploying e-services for citizens in Rwanda, e-government solutions and e-court administration projects. The opportunities for Asian investors in the ICT sector in Africa are numerous. Beyond concerns about influence and political motivations, partnership agreements between Asian and African governments and businesses are mutually beneficial, as they reduce costs, improve efficiency and accelerate trade links between the two regions. Africa's development and infrastructure needs are significant and strengthening already close ties with Asian tech giants offers a way to overcome existing infrastructure challenges while bridging these gaps for economic progress. of the two regions.
Soon, South Africa will be able to launch its own communications satellite. Khumbudzo Ntshavheni, Minister of Communications and Digital Technologies, said that this project is progressing well. The satellite could be used to establish an African clearinghouse for voice, data and other communications. In this regard, during a budget speech vote before a parliamentary committee, Ntshavheni said, "To improve our broadband connectivity reach and in line with the Cabinet decision of 2016, South Africa is now ready to launch its own communications satellite through Sentech in partnership with the national space agency and other key stakeholders. » This project is part of the strengthening of the South African satellite program to facilitate the fourth industrial revolution. The development of the revised program is expected to take between eight and ten years. Stella Ndabeni-Abrahams, the former communications minister, said her department was studying satellite technology to be able to bring internet access to all South Africans, and those living in rural areas not covered by networks. terrestrial. The commissioning of this communication satellite should enshrine South Africa's " technology and data sovereignty ", according to Khumbudzo Ntshavheni. It will also reduce the cost of renting satellite capacity for the government as well as for sectors that depend on satellite communication technologies for their activities. The country also plans to provide services to the entire Southern African Development Community (SADC) region.
The Angolan satellite AngoSat-1, built by Russia, was lost a few hours after its launch in 2017. The additional protocol to the manufacturing contract provided for the construction of a new replacement device in the event of failure. AngoSat-2, the second Angolan communications satellite will be put into orbit next October. This was stated on Monday August 29 by the Russian company Reshetnev Information Satellite Systems Company (ISS-Reshetev), manufacturer of the satellite. According to the company, the satellite was delivered to the Baikonur Cosmodrome in Kazakhstan on July 26. It was in April 2018 that Russia and Angola agreed to build AngoSat-2. This is actually compensation from Russia to Angola for the AngoSat-1 satellite, worth $327.6 million, lost in space after its launch in 2017. RSC Energia s was awarded the contract for the construction of the new satellite before it was withdrawn in 2020 at the request of Angola. Luanda no longer trusted the company which has several failures to its credit. This statement by ISS-Reshetev allays the concerns of the Angolan side. Last week, Augusto da Silva Cunha, Angola's ambassador to Moscow, told Russian news agency Sputnik that his government hoped the satellite launch would take place by the end of the year. According to the diplomat, putting AngoSat-2 into orbit should contribute to the development of telecommunications, industry, agriculture and other fields, as well as strengthen the country's national security. Angola will also be able to gain independence in space technology. Currently, the country depends on private providers and compensation signals made available to it by Russia.
The Ministry of Posts and Telecommunications, and the mobile phone operator Cameroon Telecommunications (Camtel) signed today, September 26, 2014, in Yaoundé, a concession agreement for the fourth mobile phone license (GSM) to Camtel. GSM (Global System for Mobile Communications) technology is a second-generation digital standard for mobile telephony. With this license, which covers a period of 15 years, Camtel enters the GSM standard, a dominant standard on the market for 2G and 2.5G services, and thus becomes a mobile telephone operator. “In a modern society, information and communication technologies play a very important role, an avant-garde role. Moreover, it is said that telecoms and new technologies are driving development. We are going to have one more operator in the mobile telephony segment”, rejoiced the Minpostel, at the end of this ceremony. Prior to the signing of this agreement, Camtel used Code Division Multiple Access (CDMA) technology, a technology that enabled it to offer its subscribers, in particular, high-speed Internet access services via the Evolution-Data Optimized (EVDO) standard. .
Camtel and the Ministry of Housing and Urban Development (Minhdu) signed a partnership agreement on July 18 in Yaoundé. It will allow the public telecom company to install fiber optics at a reduced cost in government housing projects (in particular SIC camps: editor’s note) and connect the occupants of said housing to broadband Internet. But for this to be possible, explains Camtel, this agreement plans to include the telecom company in the project management of the housing infrastructure works. Thus, Camtel will be associated with upstream projects. This will avoid the additional costs often generated when the company intervenes only at the end of the constructions. "Sometimes fiber optic networks have to be moved because housing projects have not taken into account the passage of Camtel facilities. We are sometimes forced to delay work because we have dug or destroyed telecom facilities. However, if the parties had worked together, we would know from the start of the project where Camtel's networks are and what should be done to avoid them and reduce additional costs of fiber optic travel," explains- t-on at the incumbent telecom operator. It took eight years to reach this agreement, according to statements by the Minister for Housing, Célestine Ketcha Courtès. And for good reason, there were administrative delays. The parties were unable to set up an interministerial coordination body to bring together all the actors involved in construction projects. In Cameroon, 40% of fiber optic outages are due to public works, continually undermining the government's efforts to guarantee a wired network capable of supporting the growing demand for electronic communication services, according to the Ministry of Posts. and Telecommunications.