climate and comms

According to McKinsey shareholder returns on telecom assets are down 60% over the last 4 years in the Middle East Africa (MEA) region. ( http://www.mckinsey.com/industries/telecommunications/our-insights : Telecommunications industry at Cliffs edge).     The main culprit is stagnating growth.   MEA includes mature markets like those in the Middle East where (mobile) penetration levels are close to 150% as well as high growth markets like Ethiopia where penetration is below 50%.    It is thus not useful to undertake analyses on an aggregate basis.   The mature markets are where data revenues are starting to show signs of rapid growth –but the markets are saturated.    In many African markets – particularly in Sub-Saharan Africa [1] – the decline in ARPU (average revenue per user) is no longer offset by subscriber growth and there is soon to be a decline in revenues and profitability. In order to profit from the explosion...

As far as data centres are concerned Africa is a blank slate. London alone has more than 2 times the number of DC’s than the whole of Africa. The majority of DC’s in Africa are enterprise/Telco/Banking/Govt in-house.    Very few are carrier neutral.   There are also no Cloud DC’s to speak of. With the advent of massive capacity brought about by the deployment of multiple submarine cables Africa can now connect seamlessly to the rest of the World at seemingly unlimited bandwidths.   This increase in capacity of connectivity brings with it the benefit of lower costs which underpins a virtuous cycle of increased usage, higher demand, lower prices and so on. As the international investment community starts to wake up to the opportunities brought about by fast growing (albeit off a low base) economies, rapid urbanisation, a young growing population, there will be a steady increase in FDI in infrastructure,  agriculture as well as investment into services and...

I have been waiting for Jeremy Rifkin to get with the African program.   It was only a matter of time.   For those of you who don't know, he is the guy who wrote ‘ The Third Industrial Revolution’ ( http://thethirdindustrialrevolution.com/ ) which is the story of the convergence of the communication and energy revolutions.   In it he talks of the rapidly emerging trend of local power generation and the sharing of that power laterally across the grid analogously to WiFi sharing between adjacent WiFi networks.    This is very powerful because it obviates the need for large capital projects for power generation – which have the downsides of : long lead times, centralised monolithic infrastructure, large expensive and wasteful distribution networks - all well illustrated by the current Eskom debacle. It is not widely known that only about 15% of Africans have access to power.   Millions of African children are forced to read by the lig...

It is a little known fact that the Internet is one of the largest contributors of carbon emissions.    ( http://www.theguardian.com/environment/2010/aug/12/carbon-footprint-internet ) Today 9/21/2014 [1] is a significant date in the climate change calendar,   being the largest climate march in history ( http://peoplesclimate.org )   It is a day when awareness of the impact of global warming will perhaps reach a critical mass and the decision-makers will finally wake up.   How many more Katrina’s,   Sandy’s or Haiyan’s will it take to shock the hardcore minority ( denialist’s and their patrons – i.e. the fossil fuel industry )   into realising that it can no longer be   “business as usual”.    I work in the Internet industry – building data centres.    Our work is in Africa where the potential (negative) impact of climate change could be the highest of any region in the World.    As local weather patterns chan...