climate and comms

Government authorities have a key role to play in facilitating the emergence of a digital economy.    Their mission does not only entail adopting and enforcing appropriate and effective regulations but also ensuring that existing infrastructure is leveraged for optimal utilization.   The participants in this strategic workshop will work on ways to make governments and regulators true catalysts for digitalization, with the support of all sector players. This  is the subject matter of a discussion to be held at the Africa CEO Forum in Abidjan next week.  These are my initial thoughts.  All comments welcome. In Africa we have seen the emergence of a mobile telephony market which went from zero to over a billion phones in just over two decades.   The mobile industry requires tight regulation because of the use of a scarce resource – spectrum.    The role of Government has thus, of necessity,   been important in ...

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...

After two days of data centre conferencing in Monaco what emerges is consensus about a few things.    The imminent impact of the Internet of Things, outsourcing, virtualization, Colocation and the ongoing migration to the Cloud,   but also the awareness that there exists a massive shortage of data centre capacity in Africa and the urgent need to address it.    There is more data centre capacity within the M25 of London than on the whole continent of Africa. However, where there is some disagreement is exactly how to go about it.   Where to build?   Who to build?   How to build?   Who to finance?     Doing business in Africa is not easy.   But we are inspired by JFK–– “ We do these things not because they are easy, but because they are hard ".       Africa is hardly the moon but to some people it might as well be! Power, that ever present bogeyman, seemingly presents one of our b...

The mobile operators have been the ‘unicorns’ of Africa for the last 20 years.    Consistently outperforming, not only their global peers, but also all other sectors in Africa – even resources.    Historically African MNO’s have enjoyed higher EBITDA margins than their developed market peers – but it seems the African mobile fairy tale is coming to an end as we approach the bewitching hour of midnight.   The nasty sisters of MTN’s Nigerian Cinderella have reared their ugly heads with the imposition of a punitive $5.2bn fine.     Like Apple, whose once unstoppable iPhone sales have started to slow, most African MNO’s   need to come up with something new and smart or risk marginalisation as demand slows.     The killer App in Africa to date has been voice – but this market is saturated now with   customers from the very bottom of the pyramid – and so voice ARPU’s have declined.    According...

Why build Data Centres in Africa when the rest of the World is better geared for them with power and connectivity and they continue to be built at a rapid pace in these advanced markets?     On the face of it – it makes more sense to continue hosting data and services in North Carolina or in Finland if you are an Africa corporate with data hosting and storage requirements. However things are changing in Africa.   “ Ex Africa semper aliquid novi ”   to quote Pliny the Elder – There’s always something new coming out of Africa.    What now?    Well there have been a few drivers.   Firstly there is now connectivity between Africa and the rest of the World.     Numerous submarine cables provide an instantaneous connection between the various landing points and the World Wide Web (in other words the Internet.)   Secondly there is a large effort to install fiber optic capacity within and between numerous African countr...

You would be forgiven for thinking that perhaps most people have become somewhat nonchalant about online security and that the prevalence of hacks has made most of us somewhat immune to the dangers.    Indeed I would say that some sites have become almost cavalier about their attitude to their member’s security.  The recent hacking of LinkedIn certainly did not elicit the kind of response I would have expected, indeed hoped for,  as a member.   I get the impression that it was something of an irritant that they hope won't come again – and are certainly not bothering with beefing up security.  Far too much hassle.   So is their reaction reflective of their members lack of interest – I think not,  as one of their members has tried to sue them for failing to provide adequate security.  ( http://articles.latimes.com/2012/jun/21/business/la-fi-tn-linkedin-5-million-hack-20120621 )   LinkedIn have said that they will salt their passwords...