Trends & Forecasts

EASSy does it - will East Africa learn from West Africa?

Work on the East African Submarine System (EASSy) is likely to start early next year. The World Bank is willing to offer finance. After all, the Internet and mobile-based commerce can change people's lives. Michael Schwartz says lessons can be learnt from a predecessor. Work on the East African Submarine System (EASSy) is likely to start early next year. The World Bank is willing to offer finance. After all, the Internet and mobile-based commerce can change people's lives. Michael Schwartz says lessons can be learnt from a predecessor.

Fibre-optic cables are the answer to East Africa's communication problems. Satellites are slower and more expensive than fibre. The Internet will touch the lives of more people. Bills will, no doubt, come down. 

These are just a few of the arguments being put forward by the 20 or so private companies and state-run enterprises with a stake in East African telecommunications.

The countries are nine in number: Sudan, Eritrea, Djibouti, Somalia, Kenya, Tanzania, Mozambique, Madagascar, and South Africa. All it needs is for 5,000 miles of fibre-op tic cable to be laid from Port Sudan to Mtuzini in South Africa, dropping in on each of the countries. Well, that's how the argument goes. And it is true that some of Africa's richest states will be there to benefit (think Kenya and South Africa, for example). 

South Africa, however, is the case in point. Not only is she to be the farthest destination of an East African communication artery (EASSy) but she is already the farthest destination of a West African project (Sat-3). And that, observers of telecoms hope, is where the similarity ends.

 

Sat-3 has been up and running for the last three years. Users can receive and deliver messages all the way from Portugal to South Africa. 

Except that it hasn' t worked out like that

 

One frustrated group comprises the Internet Service Providers (ISPs). They will not have a fair crack of the whip until 2007. Quite simply, those who built Sat-3 were sufficiently astute (if you like that kind of thing) to award themselves exclusive rights until 2007. ISPs and therefore customers in nine countries suffer from highly limited access and/or excessive tariffs.

Result? West Africans having to cough up for some of the world's costliest Internet services. 

There have been attempts to reduce these costs. The telecoms regulator in South Africa asked for cheaper rates from Sat-3 (which includes one South African company).

Will it happen? 

The answer is complex. The African Union says that its members should not meddle with prices. Perhaps, reflecting on this, it is all too obvious that the stifling legislation which applied during the first generation when African countries became independent have not altogether disappeared. One thinks of the 500% tariffs which Tanzania used to place on imports.

The mentality of protectionism has not disappeared 

One is tempted to ask just how much more politicians of this mould are willing to stifle enterprise. In this case exceptionally high prices for communication services can only make goods exported from Africa far more expensive and far more competitive than they need be. To quote one source of information: "Some experts claim that bandwidth prices in Africa can be as much as 25 times greater than equivalent service in Europe."

John Sihra, EASSy's project coordinator, has stated that he will learn the lessons from Sat-3. The consortium behind EASSy is, in his opinion, aware that it can not prevent other users from utilising the cable and that in exchange for this agreement reasonable profits will arise.

On this premise one wishes EASSy well.

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