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If money were no object, Africa would be leading the world’s hottest satellite services markets. With the exception of some major cities, the continent’s terrestrial communications infrastructure is inadequate at best and nonexistent at worst. Even though a number of international fiber optic cables do make landfall on Africa’s shores, few are actually connected to the nearest Postal, Telegraph and Telephone Company (PTT). Furthermore, there are areas of the continent that will never be terrestrially linked, offering no other transmission alternative than satellite.

Unfortunately, money is very much an issue in Africa, specifically the lack of it. For instance, there are many remote regions that could be effectively and economically linked to satellite-delivered telemedicine, distance education and voice/Internet services. "In fact, we get lots of requests from well-intentioned people in Africa with good ideas," says Richard McPhaden, Polarsat’s vice president of marketing. "But they just don’t have the funding to make [those requests] happen."

When money has been found to establish earth stations, the next challenge is keeping them from being stolen. "When you put up ground equipment, you have to budget money to fence it in, and to employ a guard 24 hours a day," says Guillaume Aris, ND Satcom’s general representative for Africa. "If not, there’s a real chance that your equipment will go missing and turn up somewhere else. For instance, I was once in an African caf� where they were using a satellite dish as a table."

Despite the humor in Aris’ story, the problem of theft is very real in Africa. In fact, one source says that the two biggest expenses for African earth station operators are diesel fuel for electrical generators and replacements for stolen parts. In addition, violent robbery is common throughout the continent, while some government officials view businesspeople as cash-soaked sponges, just begging to be squeezed.

Even though political instability and economic challenges continue throughout the continent, Africa remains a prime player for satellite products and services. Once a satellite infrastructure is in place, applications such as Internet over satellite connectivity, distance learning and telephony begin to blossom, giving various countries a vital link to the rest of the world.

In fact, there are African countries that are installing earth stations today. They include South Africa, Kenya, Tanzania, Ghana, Nigeria, Angola and Cameroon. Some of the money comes from foreign firms searching for oil and gas, while other funds are donated by international aid agencies. Still Africans themselves, by establishing corporate networks and Internet caf�s for consumers, are raising more money. In a place where many homes do not even have telephones, Internet caf�s offer Africans an affordable on ramp to the Information Superhighway. "It’s typical for the satellite lines coming out of an Internet caf� to be busy at all hours," says Aris. "Even at midnight."

Broadband Data in Demand

"Make no mistake: The real driver in Africa is broadband satellite access," says Simon Bull, senior consultant at Comsys, the U.K. consultancy, which produces the annual VSAT Report. "People want Internet access now, and Africa’s poor economy notwithstanding, they are willing and able to pay for it."

There are two ways for Africans to access broadband via satellite. Governments, businesses and prosperous citizens install their own earth stations, using Very Small Aperture Terminals (VSATs). Meanwhile, less-prosperous Africans get their e-mail and Web access through Internet caf�s. These are restaurants equipped with personal computers and their own VSATs, whose Internet access is shared by the customers.

Africa’s thirst for Internet access is good news for satellite equipment suppliers. For instance, "the Kenyan telco, TKL, is buying our Direcway equipment to provide broadband services within the country," says Soheil Mehrabanzad, regional director for Africa and the Middle East for Hughes Network Systems (HNS). "Meanwhile, South Africa’s Telkom SA has also decided to offer Direcway solutions to meet the stringent service level agreements required by their broadband-minded customers."

The growing need for broadband applications is also important for Gilat’s African sales, says Udi Ben Arye, Gilat Satellite Networks’ business development director for Africa. "For instance, South Africa’s Telkom SA recently launched a broadband service designed to provide always-on Internet access and data services for business/government users." Telkom SA’s two-way service provides download speeds (from satellite) up to 512 kbs, and uploads (from ground) up to 128 kbs. Gilat will provide them with 26,000 VSAT sites throughout the next five years, plus a Skystar 360 degreesE satellite hub station.

The Call for Satellite Telephony

In addition to its Internet via satellite service, Telkom SA customers will be able to buy Internet access packages with one to four Voice-over-Satellite channels. Such developments materializing in sub-Saharan Africa are breaking down the unreliability factor regarding telephone service that is plaguing much of the continent.

African sales are also growing for Viasat, another supplier of VSAT earth stations. "Our Linkstar and Skylinx VSAT products work well for both broadband data and voice, which is why we are seeing a lot of demand for them in Africa," says Chris Leber, Viasat’s vice president and general manager of VSAT networks.

One such Viasat customer is Transtel, the information technology arm of South Africa’s Transnet Group. Mindful of the region’s poor telecom coverage, Transtel integrated about 300 Viasat Skylinx and Linkstar VSAT stations with fiber optic cables, microwave radio and mobile radio to create a network spanning 16 countries. The bulk of Transtel’s 50,000 subscribers use this network for corporate voice traffic, although some also transmit data and access the Web. Because Transtel covers such a wide region, two satellites are required to support the network: Panamsat 10 (C- and Ku-band) and Panamsat IR (C-band).

One of HNS’ value-added resellers, Kenyan-based AFSAT Communications, is offering long distance Voice over IP (VoIP) telephone service along with Internet access. AFSAT is using HNS’ DW6040 Voice Appliance, which integrates Net2Phone’s VoIP software, in combination with the DW6000 broadband satellite terminal, operating over HNS Europe’s Direcway network operations center located in Germany. "A number of our clients want to combine satellite broadband services with VoIP," Mehrabanzad says. "For instance, many Internet caf�s are connecting our DW6040 VoIP module to their existing DW6000s, which provide satellite broadband. This allows them to offer international voice service at very good rates."

HNS won a contract for a satellite telephony system for Gabon Telecom, which will connect all railway stations in that country. "We have been successfully operating an HNS TES network throughout rural Gabon for the past 10 years, and have been very satisfied with the performance and services," says Brice Ponga, Gabon Telecom’s director of operations.

Canada’s Polarsat is supporting voice traffic in Africa by providing E1 (2.048 Mbs) backhaul satellite services to wireless carriers Telecel and Mednet. "Telecel covers 15 countries in sub-Saharan Africa," says McPhaden. "We provide their connectivity via satellite to Europe. It’s their ability to route calls easily between Europe and Africa that makes them money."

Finally, rural telephony is popular in Africa, using VSAT earth stations established either directly by governments, or indirectly through service requirements on national PTTs. Even the poorest countries have some form of satellite telephony. For instance, "Rwanda has about 355 rural telephony sites operational using Gilat equipment," says Ben Arye.

Specific Applications

Beyond the general catchalls of broadband data and voice, satellite services are being targeted for specific purposes in Africa. Take distance education, which lets poorer countries share their best teachers with students nationwide. To say the least, it is a big priority for Africa, and one that cash-strapped governments are willing to pay for.

"Our biggest win of the year came through a distance learning program in Ethiopia," says Mehrabanzad. "It is a $25 million contract to provide video channels to more than 1,100 locations throughout the country for distance learning, videoconferencing, Internet access and voice communications. The majority of our earth stations will be located at schools, but others will be based at government offices and agricultural research centers."

Meanwhile, "We’ve got a deal with the Kenyan government to provide distance education via satellite radio," says Andy Raswork, COO of Worldspace. Broadcasting from the Afristar satellite, Worldspace offers a bouquet of digital audio channels including modern music, the BBC, CNN and educational services. Under the Kenyan deal, "a third-party NGO (nongovernmental agency) called FirstVoice International developed program content on AIDS and family hygiene, which we deliver to Kenyans on our Africa Learning Channel," Raswork says. "The government supplies the radios and pays the subscription fees."

On the consumer side, MultiChoice Africa is developing Direct Broadcast Service television to most of the continent. Worldspace’s satellite radio service offers similar coverage. For both services, the challenge is cost. The small minority of Africans, who can afford the equipment and monthly subscription fees, "tend to be a mix of expatriates and the financially well-off," says Raswork.

Busting Through Regulations

Even though Africa continues to show promise for satellite-enabled applications and services, intergovernmental regulations still make this region a challenging place to do business. With issues of poverty, corruption and violence set aside, "each country has its own regulatory hurdles to clear, and its own central bureaucracy to win permission from," says McPhaden. "The problem is that you need to create regional networks across many countries in order to be profitable. So having to go through all these approvals is a real barrier to business."

Hurdles notwithstanding, Aris says, "the African market is booming for satellite service providers and equipment vendors. Granted, it is starting from a very small base, but the opportunities here for satellite are substantial."

Keeping Eyes on the Future

Vertical enterprise markets in Africa are slated to double within this decade along with satellite serving the ISP market, which is projected to grow by 80 percent within the next five years, according to various industry reports. With more than 3 million Internet users currently existing out of the continent’s population of more than 700 million, it is no wonder that broadband initiatives within Africa are driving satellite applications. Time will tell how the regulatory wrinkles get ironed out, but make no mistake–the demand for applications within Africa that satellite can deliver will never cease in business importance.

James Careless is senior contributing editor to Via Satellite magazine.

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