Q&A: NEPAD insists it has mandate over EASSy

CIPESA spoke to the Policy and Regulatory Affairs Adviser at the New Partnership for African Development (NEPAD) eAfrica Commission, Dr Edmund Katiti, abut the status of the cable and how the Commission will engage dissatisfied telecom operators.
Q. Why are EASSy consortium members giving up on NEPAD’s eAfrica Commission, and what is your planned way forward?
The Kigali Protocol defines categories of entities (companies) that can have shareholding in the Special Purpose Vehicles (SPVs) that will develop, own, operate, and maintain the regional ICT broadband network for Eastern and Southern Africa, which comprises a submarine segment and a terrestrial segment. The SPVs will be companies that are open to just about any corporate entity that wishes to invest in the opportunity. Therefore, the SPVs will be formed in the near future, whether one or two telecom operators choose to stay out.
Q. How many signatories of the EASSy memorandum of understanding have pulled out of the project and what reasons have they given?
We are not aware of any telecom operator pulling out of the Eastern Africa Submarine cable project. However, a meeting of prospective shareholders in the SPVs that will own, develop, operate, and maintain the submarine segment of the ICT Broadband Infrastructure Network for Eastern & Southern Africa is being planned in the coming months. That will be the time to know which companies are interested in the network.
Q. What is the eAfrica Commission doing to attract more members and when do you hope construction of the cable will begin?
Answer: The NEPAD e-Africa Commission is in the process of recruiting consultants that will prepare a Project Information Memorandum that will be used to interest prospective shareholders and lead them through negotiation and signing of a shareholders’ agreement. Construction of the cable should begin in the middle of this year.
Q. With 12 members countries having signed the Protocol, when   do you think the protocol will be signed and when will financing for the   project be secured?
Twelve countries signed the Protocol and it will come into effect when seven of them have ratified it. After this, the countries that did not get to sign the Protocol may accede to it. The financing of the project will be organised by the shareholders in the SPVs mentioned above.
Q. Donald Nyakairu, chair of the EASSy finance committee, says the eAfrica Commission should not hijack the EASSy because it ‘hijacked’ it from the consortium. Will you stop using this name now that some of the MoU signatories seem to be parting ways with the Commission, and are suggesting they could build a different cable?
The Eastern Africa Submarine cable project was adopted and incorporated into the ICT Broadband Infrastructure Network for Eastern & Southern Africa, developed by stakeholders in June 2004, and is a key component of that network. In November 2004, the agreed network was adopted by the NEPAD Heads of State and Government Implementation Committee as a NEPAD flagship project.
In this context, The NEPAD e-Africa Commission, acting within its mandate as NEPAD’s task team for the ICT sector, is coordinating efforts of the governments of Eastern and Southern Africa to put in place a policy and regulatory framework under which this regional ICT broadband infrastructure network should be built.
It must be pointed out that the network goes beyond the submarine cable as it is intended to “connect African countries to one another, and in turn, to the rest of the world”. It should benefit land-locked countries as much as the coastal ones. The network will be developed, owned, operated, and maintained by the SPVs mentioned above. The Commission and governments of the region will remain responsible for policy and regulatory issues.
Q. Kenya and South Africa have unveiled plans to build their own links to the international fibre optic system. Will this not render EASSy less competitive, or even unviable?
The NEPAD e-Africa Commission is coordinating efforts of the governments of Eastern and Southern Africa to put in place a policy and regulatory framework under which a regional ICT broadband infrastructure network should be built. This network will consist of a terrestrial segment and a submarine segment, and is meant to achieve certain developmental objectives, the most important of which is to lower the cost of communication. Any other initiative that has similar noble objectives should be welcomed.
Q. In this scenario, what’s the best way for east and southern Africa to go about investing in marine fibre and making its bandwidth affordable, accessible, and managed to the satisfaction of various stakeholders?
The best way is to ensure that the region has affordable and accessible broadband connectivity is to get the countries of the region to ratify and/or accede to the Kigali Protocol that binds them to jointly develop a regional network that will offer affordable and accessible broadband connectivity on open and non-discriminatory basis.
Q. Who among the MoU signatories has jumped out of the EASSy project? And how will you go about mobilising funds for constructing the cable?
The SPVs that will develop, own, operate and maintain the regional network are yet to be formed but progress is being made towards their formation.

Organisations working on IPR issues

World Intellectual Property Organisation (WIPO)www.wipo.int, Geneva. WIPO is an international organisation “dedicated to promoting the use and protection of works of the human spirit.” These works, or intellectual property, are expanding the bounds of science and technology and enriching the world of the arts. WIPO is a specialised agency of the United Nations and administers 23 international treaties dealing with different aspects of intellectual property protection. It has 183 member states.
World Trade Organisation (WTO)www.wto.int. WTO’s agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) entails mechanisms for enforcing IP protection.

African Regional Industrial property Organisation (ARIPO)
www.aripo.org. ARIPO, which is headquartered in Zimbabwe, was established “to pool the resources of its member countries in industrial property matters together in order to avoid duplication of financial and human resources”. An agreement for its establishment was signed in Lusaka in 1976 and came into force on February 15 1978. From that date, the UN Economic Commission for Africa and WIPO acted as is joint secretariat, until the body established it own secretariat in Zimbabwe.
Advocates Coalition for Development and Environment (ACODE), Uganda, www.acode-u.org. ACODE’s mission is to “influence development and governance policies for the promotion of social justice in Eastern Africa” through policy research and advocacy.
Kenya Industrial Property Institutehttp://www.kipi.go.ke/. Its mandate is to administer industrial property rights, provide technological information, training in industrial property rights to the public and promote inventiveness and innovativeness for accelerated technological, industrial and social economic development in Kenya. It was created by government under the trade and industry ministry in 2002.
Tanzania Bureau of Registration and Licencing Agency (BRELA), www.brela-tz.com . Its role is to ensure that businesses operate in accordance with the laid down regulations and sound commercial principles. It was established by government in 1999.

Enabling Open Access ICT Infrastructure Through Universal Access

Introduction
In view of the ongoing debates about how to reduce bandwidth costs in Africa, and discussions about how the East African Submarine Cable System (EASSy) should be managed, APC is supporting the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) to develop a series of papers that discuss issues concerning Open Access fibre optic systems and how they can benefit from Universal Access programmes in Africa.
Among other things, this paper:
1)    Addresses the factors that inform Universal Access in Africa;
2)    Makes the case for Open Access infrastructure in addressing the continent’s connectivity headaches;
3)    Examines the flaws that are common in African connectivity programmes, including the shortage of useful content and the failure to create sustainable demand for service;
4)    Presents the case of the Ugandan and Kenyan rural access programmes and scrutinises areas that may fail their Universal Service aspirations; and
5)    Concludes that regional infrastructure undertakings like EASSy require Universal Access to be correctly implemented and to address demand in order for Open Access principles to prevail.
Several African countries have adopted Universal Access principles as part of their efforts to extend modern communication services to disadvantaged areas. The thinking is that Universal Access will help bridge the digital divide within countries, whereby urban areas tend to have better and often more affordable connectivity compared to rural/disadvantaged areas.
Increasingly, the principle of Open Access is also gaining currency for similar reasons: countries seek to lower the cost of extending connectivity and enhance the affordability of ICT services. Some countries are embracing Open Access not only for regional infrastructure backbones, but also promulgating it for national ICT infrastructure.
This paper questions whether Open Access will bear much fruit if Universal Access does not significantly go beyond the mere provision of connectivity, to creating effective demand.
Why Universal Access
Universal Access entails access by all to quality communication services like telephony or the Internet at affordable prices and reasonable distances. In Botswana’s, the definition seems more comprehensive than in most African countries. Its National ICT policy defines Universal Access as “[t]he provision of affordable, reliable, simple to operate, advanced capabilities for new telecommunications and information services, so that they are either available or easily accessible to everyone, with due regard to people with special needs”.
Overall, African Internet penetration is very low at only 2.6 per 100 inhabitants. Comparative figures for Europe are 31.2%, the Americas (north and south) 28.2%, and Asia 8.1%. But even within Africa, penetration levels tend to be lower in some of the East and Southern African countries (as shown in the graph below), where the lack of a link to the international fibre optic system makes connectivity more costly.
Interventions (mainly public sector) are therefore necessary to extend services to regions that are rural, poor, or difficult to connect due to geographical complexities, as they often lag behind in access to ICT. As it is, Universal Access implies having a telephony/Internet access facility within walkable distance for all, but does not necessarily imply that people have the means to use and maximise the benefit of the technology. Issues such as the ability to pay for the service, skills in using the service, and appropriate content, may hinder a person from maximizing the benefit of the ICT services, yet they are often ignored by Universal Service programmes.
Case for Open Access
As can be seen from the illustration above, only a tiny fraction of Africa has access to the Internet. The shortage of infrastructure and the high cost of connectivity are key contributing factors. The advent of fibre optic bandwidth will potentially make it affordable to connect thousands of more users. But if the cable is run along a consortium format, it is likely that the price for connecting will be kept artificially high, resulting in much of the bandwidth available on cables like EASSy staying redundant. This is why Open Access should result in more people accessing ICT services. Open Access requires that owners of assets that are thought to be unique/ costly/ wasteful to duplicate, make them available to others at a competitive price. This mainly applies to what are deemed to be national infrastructural assets. EASSy is probably the best-known African project to adopt Open Access principles, but others like the COMESA Telecommunications Company (COMTEL) are following suit. Countries where exclusivity periods for telecos are ending are requiring all infrastructure providers to allow access to their resources at competitive prices so that the new entrants are not disadvantaged vis-à-vis the existing infrastructure owners. In fact, COMESA at large and the East African Community have endorsed the Open Access principles for ICT infrastructure, though they have not effectively implemented them. Open Access in a way shares the vision of Universal Access since it sees the challenge as being able to extend communications to those at the bottom of the income pyramid by lowering the cost of services. In this sense, Open Access can be viewed as an enabler of Universal Access. Open access encourages small operators, including those that operate in limited geographical areas, to enter the market and service also ‘last mile’ connectivity.
Rural and ‘last mile’ connectivity are crucial in Africa. Because African connectivity is extremely low compared to other parts of the world, connectivity in more deprived parts of the continent is unlikely to be effected by private sector operators whose motives are purely commercial. A person in a high-income country is over 22 times more likely to be an Internet user than someone in a low-income country. And in high-income countries, mobile phones are 29 times more prevalent, and mainline penetration is 21 times that of low-income countries (UNCTAD 2006). Relative to income, the cost of Internet access in a low-income country is 150 times the cost of a comparable service in a high-income country. The disparities in access to ICT are huge in most of Africa, which creates a need for improving ICT connectivity, access and usage. Both Universal Access and Open Access respond to this need.
It is generally agreed that access to reliable and affordable ICT can help to positively transform the lives of those who own them and use them effectively. ICT can be an enabler of development, as they can reward those who use them well with increased income and a better quality of life. Conversely, those who do not use them are left behind, and ICT disparities often tend to worsen the existing inequalities.

Flaws in African Universal Access programmes

Several African countries have set up universal service funds in their national ICT policies. But it is becoming evident that the definition of Universal Access and the implementation of Universal Access programmes in much of Africa tend to be flawed. In most cases, the designation of Universal Access does not go beyond taking connectivity to rural areas. But as will be argued below, for the majority of rural Africans to access and effectively use ICT, more than connectivity is needed: Relevant (including local and adapted) content, building capacity for people to be able to use the ICTs, and for communities to maintain the ‘equipment’, are crucial too. So are access to reliable and affordable electricity to power the connectivity, the use of appropriate technology for the connection, and connectivity services that are sustainable. These are what will create effective demand that will feed Open Access and make it a success.
Content
While some schools of thought hold that the lack of electricity is a leading impediment to the success of Universal Access programmes in Africa, we feel content is a much more fundamental problem. Most of the Universal Access programmes are implemented in rural areas that do not have power, so in cases like Uganda’s Rural Access Programmes, diesel-powered generators are part of the package extended to such initiatives. Like electricity, the development of local content is one of the paramount prerequisites for Africa’s effective uptake of the Internet and associated services. But at the moment, African-generated content is only a tiny fraction of the online content. This means that what is available on the Internet (and associated mediums) is not always relevant to Africans. Without appropriate content, Africa cannot fundamentally boost usage of ICT in disadvantaged areas.
However, the development of content cannot be achieved without empowering people and organisations in Africa to enable them develop and disseminate their content, including indigenous knowledge. The reality is that few Universal Access programmes in Africa prioritise content generation. In some cases where content is mentioned in Universal Access policy documents, it is often a peripheral issue that hardly moves beyond the policy documents to actual implementation.
This could also explain the challenges telecentres in Africa have faced, which have made only a handful of them successful. Quite often they have failed to address critical issues such as the requirements of the beneficiary communities. There tends to be a general assumption that technology brings development and everybody should know this, including rural communities. A telecentre is then dumped in the community whose needs are not well ascertained, and which is unable to use the service. That is a recipe for failure.
The case of CELAC (Collecting and Exchange of Local Agricultural Content, www.celac.or.ug) in Uganda is an instructive one in best practice. It collects local indigenous knowledge from the communities, processes it, and exchanges it between communities in different parts of the country. This is content people can easily associate with, and are comfortable working with. Additionally, CELAC has demonstration gardens where it ‘practices what it preaches’. The farming community then finds it easier to appreciate the practical relevance to improving their livelihoods of the information available at the CELAC resource centre.
Demand
Without a doubt, demand for information carried by modern communication channels exists in rural and under-served Africa. And this demand should rise as new technologies allow for a decrease in costs of bandwidth and of telephony connectivity generally. The telecom operators that are in the consortium that has promoted EASSy over the years, are perceived to want closed control over the cable’s bandwidth so that they can charge for it as they wish. But it is also conceivable that they want the consortium model because demand is not easily predictable, and they need to be in charge of servicing that uncertain demand.
But while the completion of EASSy would obviously result in a possibility for users to get top-grade bandwidth at significantly lower prices, there is no guarantee that under a consortium this will be the case. What is more likely to happen is that the individuals and organisations that already have Internet connectivity, in predominantly urban areas, will upgrade their connectivity; few additional connections outside the currently connected circuits would be made under an arrangement other than Open Access. In turn, by enabling operators, even small ones, to hook onto the cable, and making it possible for them to operate in less-served areas, Open Access would boost demand for Internet services.
The telecentre experience shows that we have to address the demand side at the same time as we address the supply constraint. Creating content that is relevant for education or health, and making communities aware of the uses of ICTs, are ways of generating demand. This why development agencies that support ICT for Development programmes need to ensure that these programmes create requisite demand on a sustainable basis.
Uganda’s Rural Access Fund
In 2001, Uganda set up the Rural Communications Development Fund (RCDF), one of the very first on the continent, to “enable the establishment of an appropriate infrastructure that supports ICT development and at the same time achieves Universal Access in Uganda.” The primary objective was to ensure that basic communication services of acceptable quality were accessible, at affordable prices, and at reasonable distances, by all people. The fund would primarily be used to assist in areas where the provision of commercial services was not feasible, and would be accessed through some form of competition by operators. The initial proposed prioritisation was support for the establishment of access to basic ICT services in sub-counties, which are un-served; support for the introduction of Internet Points of Presence (PoP) in every district headquarters; the promotion of ICT capacity (training, management and maintenance of services established at vanguard institutions); the promotion of content creation; and the establishment of a domestic Internet Exchange Point (IXP).
While the RCDF has funded the establishment of Internet PoPs and the setting up of community access points, with power supply highly erratic (and costly), the centres are often inoperational. Critics say a lack of effective capacity building for operators and beneficiaries of these centres, coupled with a lack of sufficient local and adapted content, also detract from the usefulness of the facilities. At another level, how to sustain these operations beyond the RCDF subsidies has not been properly worked out, which casts doubt on whether this initiative is sustainable in its present format.
Kenya’s Rural Development Fund
In Kenya, telecom operators have opposed the establishment of a special Universal Service Fund (USF) for developing communication infrastructure and services in rural and under-served areas. The USF was to be financed through a tax charged on mobile phone airtime. Telecom operators argue that the fund would inflate the cost of airtime and prevent full use of the emerging mobile phone service. The proposal is for telecom companies, both mobile and landline providers, to contribute 1% of their gross annual revenue to the fund. But operators argue that USF would instead threaten to reduce penetration, as it will increase total levies charged on mobile phone usage to 28% from the current 27%. Celtel has argued that in the past it had connected areas not served by any means of communication, and that telecom companies do not need government prodding to move to these areas. It argues that rather than asking phone companies to contribute 1% of their gross revenue to the fund, government should identify areas it wants to cover, then tell them to use that 1% to cover these areas. The operators’ argument is that the USF by itself cannot create the necessary conditions for running a sustainable service in the areas where government envisages intervening. By extension, it can be posited that Open Access would not be feasible in such areas, unless Universal Access interventions helped create demand in such regions.
Conclusion
Universal Access is designed to take connectivity to areas where it is lacking and is not likely to be made available by commercial operators. While it should ideally develop both infrastructure and content, usually funding for appropriate content is disregarded. Equipment often breaks down and there are no maintenance support facilities; while low levels of literacy also mean that even when services are extended to some rural areas, they will not be useful to many members of the community – unless they are given training. A distinction is often made about ‘necessary conditions’ (which entail bringing the relevant ICT infrastructure to a community, including carriage facilities that store, service or carry information, the actual devices that the people use and the tools to operate); and ‘sufficient conditions’, which refer to conditions that yield maximum usage and benefit of ICT. That is, communities should have the skill to take full advantage of ICT, be able to afford to pay for services, and appropriate content has to be made available. It can be argued then that universal access programmes in Africa may have taken noteworthy strides in the direction of the necessary conditions for Universal Access, but they are far from embarking on the sufficient conditions for Universal Access. Open Access is a means of enabling Universal Access; though, conversely, a comprehensive and well-implemented Universal Access programme is also an aid to the successful operation of an Open Access model.  – With www.fibreforafrica.net 

National Workshop Hosted By Cipesa Discusses EASSy

1.0 Introduction
The Collaboration for International ICT Policy for East and Southern Africa (CIPESA) is currently running national workshops about
increasing awareness and raising key issues on the East African Submarine Cable System (EASSy) – the proposed international fiber optic network that seeks to link the eastern and part of southern Africa to the international fiber optic system – in regional African countries to raise awareness and address major concerns about EASSy. The countries targeted include: Tanzania, Kenya, Zambia, Rwanda and Uganda. Malawi, Burundi, Lesotho and Zimbabwe are also targeted for similar workshops but with a focus on liberalisation of telecom monopolies in those countries that have signed up to the Memorandum of Understanding (MoU).
This report highlights the major proceedings of the Uganda workshop held on May 2, 2006 in Kampala. It was held in conjunction with the
Association of Progressive Communications (APC) and Balancing Act. CIPESA also teamed up with two local partners namely; I-Network Uganda and Women of Uganda Network (WOUGNET).
1.2 Major discussions of the workshop
The workshop focussed on ICT infrastructure with special emphasis on the opportunities that EASSy would provide. The role of the NEPAD e-Africa commission and the cost implications of EASSy and satellite connectivity were also discussed.
1.2.1 ICT Infrastructure in Uganda
The state of the ICT infrastructure in Uganda is no different from that of other African countries. The cost of bandwidth is still high
rendering computer use and Internet access only a preserve for a few, often urban elites. Yet bandwidth is key to development and its
availability depends on the size of the pipe, cost and ownership of the pipe, among other factors. From a private sector perspective, the
management and ownership of EASSy should be left in the hands of the private sector as it is the only that can now stand up to the challenges posed by globalisation and liberalisation. Given
that computing and Internet connectivity is only available to 0.5% – 7% of Africans and Asians compared to 50% – 60% Asians and North Americans, the private sector is in a better position to
provide and manage bandwidth in a way that would lead to better connection in the globalised economy.
1.2.2 The role of NEPAD in EASSy project
NEPAD’s involvement in EASSy is through its e-Africa Commission that is responsible for developing policies, strategies and projects at
the continental level. The commission also manages the structured development of the ICT sector to ensure that all African countries get
connected to the fibre-optic cable system.
Presently, NEPAD is the main continental body spearheading EASSy. It is striving to enable landlocked countries access submarine cable heads and is also involved in the creation of a legal policy and regulatory framework of the Special Purpose Vehicle (SPV) that can own, develop, operate and maintain the network, including the EASSy cable.
In NEPAD’s view, the ‘Club’ model as fronted by the consortium presents the following disadvantages for EASSy stakeholders:
–       The incentive scheme means that small investors subsidise large investors.
–        Smaller investors could be forced out of the international telecom business in their countries when markets are fully liberalised.
–        It also presents inherent inequalities among EASSy consortium parties i.e. some are wealthy, some have large customer bases and some
have extensive submarine expertise.
At the end of May 2006, regional ministers will meet to discuss, among other things, the shape of the proposed SPV. Once endorsed, it would be in charge of setting EASSy off the ground and seeing it to fruition. The envisaged SPV would adopt an open access model to ensure that EASSy bandwidth is affordable and accessible to all stakeholders.
1.2.3 Rural connectivity
The past eight years have seen a rise in the range of technologies available to rural communities in Uganda. These include; radio,
mobile phone and fax machines. Today, it is estimated that 2% of households in Uganda use mobile phones. But even if rural connectivity
would certainly generate employment and other opportunities for rural communities, it is beset by a number of challenges. These include:
–        Lack of electricity
–        Limited private sector interest in rural areas
–        Inadequate ICT infrastructure
With these challenges therefore, it is prudent for government to extend connectivity to rural areas especially when EASSy becomes a reality. Uganda should also consider a public-private partnership in laying a national infrastructure backbone that will include fibre optics. The Uganda Communications Commission (UCC) is spearheading the process while the private sector is set to play the practical role of installing the backbone.
1.2.4 Comparative analysis of cost connectivity
Opinion is sharply divided as to whether EASSy is the panacea to Uganda’s bandwidth problems. Like many other African countries, Uganda lacks adequate ICT infrastructure to support EASSy. It therefore leaves doubt in some people’s minds as whether the cable would meet the expectations of all the stakeholders (especially the mass
market).
Consequently, many Internet Service Providers (ISPs) and other private sector operators believe that the Open Access model, as
advocated for by NEPAD, cannot work in an African context. Unlike in parts of Europe where it has succeed largely because of infrastructure built by providers as part of their universal service obligations, Africa has no such system in place. One way of circumventing this bottleneck is perhaps devising a hybrid between an SPV that is
favoured by NEPAD and that of the consortium.
1.3 Issues raised during the discussion
–      Representatives of UCC believe that Ugandan operators should be ready to accept an open access model. In this way, they should be
ready to compete not on selling EASSy bandwidth but providing services that will be enabled by the cable.
–      Given that prices for connectivity through VSAT (Very Small Aperture Terminals) and satellite are falling progressively, EASSy must offer bandwidth at lower prices than either of the two alternatives. The market, rather than the EASSy cartel should therefore be the key determinant of the prices at which EASSy bandwidth would be sold.
–      The benefits of EASSy would only be realised by ordinary Internet users when fibre optic cables are extended beyond the country’s handful of major towns. The fact that local calls are expensive for the majority of rural mobile phone owners is in itself a disincentive to the extension of fibre beyond Uganda’s major towns.
–      Although opinion is still sharply divided over which model would best suit EASSy, those in favour of closed access believe that government should never return to doing business in national interest as it has proved a failure in other ventures in the past. Government’s intervention should stop at creating a conducive policy regulation environment. In a way, EASSy should be a public good run by the private sector with the aim of making profit.
–      Government should set up a Ministry of ICT to monitor and support ICT innovations in the country since ICT has become part and parcel of all sectors of the economy.
–      Government should also urgently address the issue of corruption that has led to the failure of similar infrastructure projects like Bujagali power project and the Global Fund for HIV/AIDS, Tuberculosis and malaria.
–      Government and private sector also need to harmonise efforts to address the challenges of rural connectivity especially through the management of the Rural Connectivity Development Fund (RCDF).
Report prepared by CIPESA

E-ready for what? E-readiness in developing countries: Current status and prospects toward the Millennium Development Goals

View: Executive summary | Public announcement
Jump to: Table of contents | Acknowledgements
Table of contents
Executive summary
Acknowledgements
Acronyms used in this report
1 Introduction
2 Background
2.1 E-readiness assessment as a tool for ICT-based development
2.1.1 What do e-readiness assessments actually do?
2.1.2 E-readiness assessment: who