If money were no object, Africa would be among the world’s hottest satellite services markets. With the exception of some major cities, the continent’s terrestrial communications infrastructure is not as advanced as it needs to be. 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). There are areas of the continent that will never be terrestrially linked, leaving no other transmission alternative than satellite.
There are many remote regions within Africa that could be effectively and economically linked to satellite-delivered telemedicine, distance education and voice/Internet services. We highlight some of those success stories within this issue of Satellite Business Solutions Africa. In fact, satellite service providers we have talked to receive lots of requests from well-intentioned people in Africa with good ideas and business proposals.
Unfortunately, money is very much an issue in Africa, causing customers to consider options other than satellite even if they are not as robust as they need to be. Likewise, the satellite services vendors also end up turning away business opportunities because of lack of financing.
It is important to note, however, that many African business executives are frustrated with the high cost of satellite connectivity. They understand the benefits, long-term gains and technical value satellite connectivity offers. The problem rests in the economics. If you are a larger enterprise, making the investment in satellite is not difficult. But for the smaller players, incorporating a satellite network that would connect less than 500 sites often does not justify the economic expense involved. Finding an economic model that satisfies both customer and provider is paramount. Otherwise, business expansions will continue to be stalled.
Even with these economic challenges, 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 countries a vital link to the rest of the world.
There are African countries installing earth stations today. Some of the money comes from foreign firms searching for oil and gas, while other funds are donated by international aid agencies. African nationals themselves, by establishing corporate networks and Internet cafés for consumers, also are raising money. Ultimately, the long-term success of African enterprise and satellite build out will come from a realignment of cost for network implementation. Until then, current issues will remain unchanged.