23October 2008
Prague -New submarine cables that are being laid along the east coast of Africa will bring unprecedented connectivity options and related business opportunities to the region. According to a recent IDC study, four different cable projects will alleviate East Africa's dependence on expensive satellite broadband, a situation that has thus far contributed to scarcities in communications, education, and market opportunities. Although the laying of the first cable by mid-2009 will immediately increase broadband availability, substantial price drops may only occur once additional cables provide competition.
"Governments in the region hope to use the new capacity to transform their economies. Land infrastructure projects abound as governments lay cable to bring capacity in from the coast, an especially important project for landlocked nations," says Francis Hook, Regional Manager, IDC East Africa, and the author of the study. "Some governments are also stockpiling business capacity: for example, Kenya is already subsidizing communications costs for business process outsourcing (BPO) providers and establishing a BPO zone, ensuring that there will be a supply of labor in place once cheaper and more reliable broadband arrives."
Currently, only a handful of sub-Saharan countries along Africa's western coast are covered by the South Atlantic 3/West Africa Submarine Cable (SAT-3/WASC), which provides, via Portugal, Europe connections to Senegal, Ivory Coast, Ghana, Benin, Nigeria, Cameroon, Gabon, Angola, and South Africa. Another segment of the project, SAT-2/WASC/South Asia Far East (SAFE), connects South Africa and Mauritius with India and Malaysia.
Besides the highly anticipated 2010 FIFA World Cup to be held in South Africa, operators and governments across the area are being driven to participate by the opportunities this impending shift in internet availability will bring: a variety of new business models and acceleration of East Africa's integration into the global economy, among other changes.
BPO is one such business model. "Several countries in the region have fledgling BPO industries that take advantage of lower competition for educated workers than in the overheated Indian outsourcing market," says Hook. "While India obviously has far greater scale, countries like Kenya or Uganda offer enough educated, English-speaking workers to appeal to medium-sized enterprises that would like to capture dedicated capacity by being the first to move into this region. Some stakeholders in cable projects also have outsourcing divisions in India, and are likely preparing to apply this expertise in East Africa."
IDC's Submarine Internet Cables: The Race to Connect East Africa (IDC #ZW14Q) describes the sub-sea Internet cables that will replace expensive satellite broadband in East Africa, speculates on the probable winners of the cable-laying race, describes several likely consequences of the upcoming flood of inexpensive broadband, and identifies the cable stakeholders most likely to benefit.
- Ends -
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives.
About IDC CEMA
To cover Central and Eastern Europe, the Middle East, and Africa, IDC employs over 140 analysts in a coordinated network of offices in 20 countries, with regional research centers in Prague, Moscow, Dubai, and Istanbul. Customers include a wide range of ICT hardware, software, and services suppliers, governments, and members of the financial community.
IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com or www.idc-cema.com. For more information about
For more information, please contact:
Tatiana Hinova
Tel: +420 221 423 140
]Email: thinova@idc.com
John Gole
Email: jgole@idc.com
Tel: +420 221 423 140
Prague -New submarine cables that are being laid along the east coast of Africa will bring unprecedented connectivity options and related business opportunities to the region. According to a recent IDC study, four different cable projects will alleviate East Africa's dependence on expensive satellite broadband, a situation that has thus far contributed to scarcities in communications, education, and market opportunities. Although the laying of the first cable by mid-2009 will immediately increase broadband availability, substantial price drops may only occur once additional cables provide competition.
"Governments in the region hope to use the new capacity to transform their economies. Land infrastructure projects abound as governments lay cable to bring capacity in from the coast, an especially important project for landlocked nations," says Francis Hook, Regional Manager, IDC East Africa, and the author of the study. "Some governments are also stockpiling business capacity: for example, Kenya is already subsidizing communications costs for business process outsourcing (BPO) providers and establishing a BPO zone, ensuring that there will be a supply of labor in place once cheaper and more reliable broadband arrives."
Currently, only a handful of sub-Saharan countries along Africa's western coast are covered by the South Atlantic 3/West Africa Submarine Cable (SAT-3/WASC), which provides, via Portugal, Europe connections to Senegal, Ivory Coast, Ghana, Benin, Nigeria, Cameroon, Gabon, Angola, and South Africa. Another segment of the project, SAT-2/WASC/South Asia Far East (SAFE), connects South Africa and Mauritius with India and Malaysia.
Besides the highly anticipated 2010 FIFA World Cup to be held in South Africa, operators and governments across the area are being driven to participate by the opportunities this impending shift in internet availability will bring: a variety of new business models and acceleration of East Africa's integration into the global economy, among other changes.
BPO is one such business model. "Several countries in the region have fledgling BPO industries that take advantage of lower competition for educated workers than in the overheated Indian outsourcing market," says Hook. "While India obviously has far greater scale, countries like Kenya or Uganda offer enough educated, English-speaking workers to appeal to medium-sized enterprises that would like to capture dedicated capacity by being the first to move into this region. Some stakeholders in cable projects also have outsourcing divisions in India, and are likely preparing to apply this expertise in East Africa."
IDC's Submarine Internet Cables: The Race to Connect East Africa (IDC #ZW14Q) describes the sub-sea Internet cables that will replace expensive satellite broadband in East Africa, speculates on the probable winners of the cable-laying race, describes several likely consequences of the upcoming flood of inexpensive broadband, and identifies the cable stakeholders most likely to benefit.
- Ends -
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives.
About IDC CEMA
To cover Central and Eastern Europe, the Middle East, and Africa, IDC employs over 140 analysts in a coordinated network of offices in 20 countries, with regional research centers in Prague, Moscow, Dubai, and Istanbul. Customers include a wide range of ICT hardware, software, and services suppliers, governments, and members of the financial community.
IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com or www.idc-cema.com. For more information about
For more information, please contact:
Tatiana Hinova
Tel: +420 221 423 140
]Email: thinova@idc.com
John Gole
Email: jgole@idc.com
Tel: +420 221 423 140
© Press Release 2008
