| Intelsat becomes largest satellite provider, implications for Africa
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14 July 2006 - Intelsat's acquisition of PanAmSat has created the world's largest provider of fixed satellite services to telecom companies, governments and the media.
PanAmSat's video market expertise, advanced satellite fleet and blue-chip media customer base has been added to the Intelsats portfolio. To achieve the merger, Intelsat acquired all of the outstanding common shares of PanAmSat for approximately $3.2 billion.
With this development, Intelsat now has a combined fleet of 51 satellites and a large, complementary terrestrial infrastructure including eight owned teleports, fiber connectivity and over 50 points of presence in almost 40 cities.
This development is important to Africa because more than 80% of Africa's Internet, international voice and data traffic is carried via satellites.
Many invest in Very Small Aperture Terminals (VSAT) systems and applications that make use of geostationary satellites
(GSO).
In fact the pay-TV company MultiChoice is PanAmSat's biggest customer in Africa. Most Africans live in rural areas with no land-based telecoms infrastructure and to meet the needs of development in Africa, there is increasing demand for information services, knowledge
acquisition and Internet access.
It is for this reason that many African countries are building human capital in this important area of Telecom. People will drive the knowledge economy. Their knowledge, skills, and creativity lead to innovation. A popular event is the
African VSAT Telecom event for Practical VSAT
Training and Expertise.
Despite other promising telecom infrastructure alternatives, satellite has remained the most commonly used for provision of international telecom service in Africa. Why? It simply makes sense for reasons of efficiency and effectiveness. Cost of satellite service has however driven made African countries to look to cheaper options. Though fixed-line or wireless facilities cannot span continents to link very most remote locations, undersea cable is being explored as an option. These alternatives are however taking time to mature in the African scenario.
There are also concerns that this takeover may lead to a monopoly resulting in even higher costs, especially in Africa - Intelsat now has more than 20 satellites over Africa. Intelsat has denied this inference while stating that it is costly regulation in Africa that drives up cost. Intelsat states that with increased capacity from a constellation of 51 satellites and Africa's liberalized telecom sector, new voice and data carriers will spring up and benefit.
What are the implications for Africa? There is an urgent need to bridge the digital divide in Africa so that Africans develop information societies in their communities. There is a need to ensure that Africa's human capital and populace don't become a forgotten tale of "unrealized potentials". Telecom and other ICTs are important and indispensable tools for driving development in Africa. In areas such as health, education, agriculture, commerce, finance and manufacturing, telecom services can help solve existing problems and open up new opportunities.
There is a need for more creative and innovative ways of growing knowledge economies in Africa. Innovation facilitates the creation of new economic and social benefits through the application of knowledge and technology. But can there be innovation in the absence of access? How will Africa build knowledge economies with inadequate infrastructure and unskilled manpower? Even when there is access, issues of affordability, availability and reliability of such access must be addressed.
To fill the gap Africa needs infrastructure (in the rural and urban areas) that will provide radio and television broadcasting, international connectivity, voice, data, Internet services and access. And not just for consumption but also to enable individuals and organizations become globally competitive by producing software, content and by providing knowledge economy services such as outsourcing, e-business and e-learning.
But must Africa always be reactive? The Intelsat development again highlights the need for African countries to have and implement proactive, pro-people
ICT plans and
strategies. Since it appears that satellite will still remain Africa's most common infrastructure for international telecom traffic for some years to come, it is expected that African nations will be insightful in handling this new development in a people-first manner.
Learn more:
Africa VSAT Training
Telecom event for Practical VSAT Training and Expertise.
VSAT Basics
ICT Policy for Development
(Click Here to take part in a survey on Nigeria's ICT
policy).
ICT Policy Resources
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COMMENTS
for "Intelsat
and implications for Africa":
|
July
16, 2006
A.
Umar
from Kaduna says:
|
Cost
is the major problem. I think the focus should be in the rural
areas and we wait to see the outcome of the rural telephony
project. Thank you.
|
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