C2C Concept Note
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The document outlines a forecast of $97 billion capital expenditure in the mobile sector over the next seven years, highlighting the need for regulatory clarity to promote investment. It emphasizes the opportunities for infrastructure growth in underserved communities across Sub-Saharan Africa and the necessity for innovative strategies to encourage such investment despite perceived low short-term returns. The connect 2 connect conference aims to address policy recommendations and operational strategies to facilitate affordable connectivity and infrastructure improvements in the region.
C2C Concept Note
- 1. Connect 2 Connect Affordable infrastructure development October 2016 Total capital expenditure over the next seven years is forecast to total around US$97 billion in the mobile sector alone (GSMA) Levels of investment will be dependent on regulatory clarity to provide the necessary market conditions for operators to maintain both the positive revenue trends and the levels of profitability required to justify investments of the above magnitude. The associated benefits of accelerating infrastructure spend, reaching the unconnected and improving quality of service to high throughput users of ICT is well documented. The investment must be encouraged by policy makers and regulators who are looking for ICT to contribute to national development objectives. As with all investments, risks must be mitigated and return on investment must be optimised! Mobile: network coverage levels vary significantly across the Sub Saharan region ranging from 55% in DRC, 38% in CAR, 87% in Nigeria and 91% in Senegal (2013, GSMA). Data usage is increasing, and as demonstrated by the above figures, there are still great opportunities for operators to increase subscriber numbers by reaching out to un-served and under-served communities. IXPs: in Kenya, the creation of a local IXP has enabled the localisation of over 1 gigabyte per second of peak traffic, dramatically reducing latency (from 200– 600ms to 2–10ms on average), while saving ISPs almost US$1.5 million per year on international connectivity. Fibre: deployments are increasing across Africa. Africa’s Total Inventory of terrestrial transmission networks increased from 465,659km in 2009 to 958,901km in 2014. Over the same period, Africa’s international internet bandwidth increased by a factor of 20 and has passed the 2 Tbps mark (Hamilton Research). Data Centres: The growth in ‘local Data Center’ demand in Africa is driven by multinationals, mainly in the financial, oil and gas, and telecommunications sectors, who need local presence to better serve their customers in country and support their regional expansion plans. With around 60% of Africa’s population living in rural areas, expanding coverage in these areas provides a valuable future revenue stream for operators. Of course, rural areas are difficult to reach, often off the national power grid, can only be accessed across difficult terrain and communities are small and widely dispersed with low levels of cash income. Innovative approaches are required to support and encourage operators to invest in providing connectivity to these customers where the short term return on investment is perceived to be low but the long term profits and national development benefits will be significant.
- 2. Connect 2 Connect Affordable infrastructure development October 2016 For more information, to register to attend or to express interest in sponsorship opportunities, please contact Extensia COO, Adrian Hall: Tel: +44 (0)1904 622381 | Email: ah@extensia-ltd.com C2C 2016 asks the questions: What can Policy Makers and Regulators do to encourage investment in infrastructure developments which will connect unserved and underserved communities and provide improved services to businesses and other high throughput users? For example: } Tax Breaks } Rights of Way } Spectrum Re-Farming } Spectrum Sharing } Infrastructure Sharing Policies } Licensing Strategies } Single/Multi Service Provider National Backbone Policies } Universal Service Funds } Local IXPs } National Data Centres } National Fibre Strategies. What can Operators and Service Providers do to reduce their CAPEX and OPEX costs and make their services more affordable. How can they devise business strategies that align their own growth with national and regional development objectives? For example: } IT Asset Management } Virtualisation } Passive and Active Infrastructure Sharing } Business Process Outsourcing } Cloud, Network Security } Site Security } Off-Grid Power } Mobile Backhaul Offloading } VAS Strategies for Monetising Networks. C2C 2016 will deliver an innovative conference programme combining keynote presentations, panel discussions, workshops, advisory clinics, private business meetings and high-level networking opportunities, enabling attendees to tailor their experience to reflect their most pressing demands and objectives. ‘Invitation only attendees’ will include CXOs from Service Providers, Heads of Regulatory Authorities, Ministers of ICT and High Throughput Users of ICT from across Sub-Saharan Africa and a carefully selected host of solution providers, vendors, consultants and investors who can support business needs and infrastructure development across the region.