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Requirements and challenges in developing networks and infrastructure in rural areas in West Africa
Outline
Introduction Present status of the ECOWAS Telecom Sector Requirements for Infrastructure Investments Challenges for Infrastructure Investments Conclusion
INTRODUCTION
Introduction
ICTs have been very successful in Africa over the past decade driven by sector reform, resulting in improved availability, quality and reduced cost of connectivity. Policy changes have triggered reforms and the way telecom investments have been financed, making telecommunications unique among infrastructure sectors in Africa (Williams et al, 2011). 557.2 million (62.1%) Africans lived within the reach of a GSM network as of 2006 340.7 million (37.9%) of inhabitants did not have access to voice communications. 314.6 million (94%.0 %) of urban populations had access compared with only 242.6 million (43.1 %) of rural populations (Mayer et al, 2009).
Introduction
From 1998 - 2008 $5 billion yearly on average has been invested in Sub-Sahara Africa (1 %of total GDP). Most of the investment comes from the private sector targeting mobile infrastructure development. 60 % of this investment has gone to Nigeria and South Africa. Countries promoting competition in the sector and encouraged new operators to enter the market have received higher levels of investments than countries with limited competition. Despite the progress made in the mobile sector, other sectors of the telecommunications market have not developed as rapidly. The reform agenda on the continent is not complete and there remain barriers to entry in sectors (Mayer et al,
2009).
Introduction
Telecommunications Subscribers, Sub-Saharan Africa, 19982008
All ECOWAS countries have introduced new laws and regulations covering telecommunications, with the majority establishing National Regulatory Authorities (NRAs) to implement rules governing the sector and protect consumers interests. Effective regulations supportive of sustainable investment requires regulatory independence in the decision making process which must be nondiscriminatory, transparent, objective and free of political influence.
Present status of the ECOWAS Telecom Sector 78% of the regulatory heads in Sub-Sahara Africa are appointed by either: Heads of State, the Legislature or a Council of Ministers. In some countries sector ministers retain power to appoint NRA heads, leading to increased political influence over regulatory decisions (Williams et al, 2011). Private investment is contingent on a conducive regulatory environment. While liberalization has spurred the ICT revolution in Sub-Sahara Africa, the state of liberalization across the region is incomplete. The process of liberalizing fixed-line markets has not progressed much.
Licensing regimes across the region are gradually evolving from technology specific licenses to service specific licenses. However, licensing restrictions in some countries on terrestrial backbone networks, international gateways and submarine cables limit the size of operators networks, while obstacles in obtaining rights of way and outright monopolies continue to hinder private investments (Williams et al, 2011).
In assessing the public funding gap for universal coverage the total investment is divided into two major categories: The efficient market gap: areas where full coverage is commercially viable and likely to be funded by private investment under efficient and competitive markets; and, The coverage gap: areas lacking the potential for full commercial coverage.
The coverage gap is then divided into two economic zones: The sustainable coverage gap: areas with enough commercial viability to support operating costs, but not capital costs, of ICT infrastructure; and, The universal coverage gap: areas lacking sufficient market viability to cover either capital or operating costs.
It is expected that voice infrastructure will cover more than 92% of Africas population by 2015 through private investments, dependent upon the promotion of effective competition and mobile private sector resources (Mayer et al, 2009) NRAs must therefore ensure effective and competitive regional and national markets in telecommunications and services.
Challenges for Infrastructure investments 12. The continued capacity building by NRAs to sustain their professional and institutional capacity to meet the challenges of the rapidly evolving telecommunications regulatory environment.
Source: Impact of Effective Regulation on Investment, European Competitive Telecommunications Association (ECTA) ICT Regulations Toolkit Section 2.1
CONCLUSION
Conclusion
The region has made significant gains in ICT/telecommunications sector development, but more needs to be done to increase network/infrastructure investments. The sector reform agenda must be completed to create the required enabling competitive environment that attracts sustainable private investments. NRAs must regulate effectively. Without effective regulations private sector investments are stifled. Governments must provide the funding to meet the universal coverage gap to provide access to all inhabitants.
REMEMBER!
Lets develop an information society within the ECOWAS region - promote both private sector investments and public funding of ICT network infrastructure for our rural inhabitants.