Africa's ICT Infrastructure

DIRECTIONS IN DEVELOPMENT
Infrastructure
Africa’s ICT Infrastructure
Building on the Mobile Revolution
Mark D. J. Williams, Rebecca Mayer, and Michael Minges Africa’s ICT InfrastructureAfrica’s ICT Infrastructure
Building on the Mobile Revolution
Mark D. J. Williams, Rebecca Mayer, and Michael Minges
Vivien Foster and Cecilia Briceño-Garmendia
Series Editors© 2011 The International Bank for Reconstruction and Development / The World Bank
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ISBN: 978-0-8213-8454-1
eISBN: 978-0-8213-8676-7
DOI: 10.1596/978-0-8213-8454-1
Library of Congress Cataloging-in-Publication data has been requested.
Cover photo: Jonathan Ernst / World Bank
Cover design: Naylor DesignContents
About the AICD xiii
Series Foreword xv
About the Authors xvii
Acknowledgments xix
Abbreviations xxi
Chapter 1 Introduction 1
Access to Communications 2
Institutions and Market Reform 9
Financing 15
Future Investment Needs 17
Policy Analysis and Conclusions 20
Notes 24
References
Chapter 2 Access to Telecommunications in Africa 25
Access: Burgeoning, at Least for Mobile
Telephony 26
Prices: Falling, Where Competition Is the Rule 33
Quality: Reliability Is a Problem 45
v vi Contents
Infrastructure: Bottlenecks Impede Growth 50
Conclusion 66
Notes
References 68
Chapter 3 Market Reform and Regulation 71
Market Liberalization and the Development
of Competition 73
Private Sector Participation 95
Regulation 98
Reform and Performance 108
Notes 115
References 118
Chapter 4 Financing Telecommunications in Africa 123
Private Financing of ICT Investment 124
Public Financing of ICT Investment 137144
References 145
Chapter 5 Future Investment Needs 147
The Cost of Providing Basic Voice Network
Coverage 149
Wireless Broadband Infrastructure 170
Notes 178178
Chapter 6 Policy Analysis and Conclusions 181
Policy Analysis 181
Recommendations 186
Conclusion 199
References 200
Appendix 1 Access to Telecommunications in Africa 201
Appendix 2 Market Reform and Regulation 203
Appendix 3 Financing Telecommunications in Africa 237
Appendix 4 Future Investment Needs 245Contents vii
Appendix 5 Rates of P enetration of ICT Services in
Sub-Saharan Africa 255
Index 267
Boxes
2.1 The Challenge of Estimating the Number of
Broadband Users in Africa: The Case of Nigeria 34
3.1 Fixed-Line Services in Nigeria 76
5.1 Wireless Broadband Infrastructure Basics 171
Figures
1.1 Competition in Mobile Markets in Sub-Saharan
Africa, 1993–2009 10
2.1 Telecommunications Subscribers, Sub-Saharan
Africa, 1998–2008 27
2.2 Growth in New Mobile Subscribers, Sub-Saharan
Africa, 1999–2008 28
2.3 ICT Penetration Rates per 100 Inhabitants, 2008 29
2.4 Average Penetration Rates, Top 10 Countries in
Sub-Saharan Africa versus Bottom 10, 2008 30
2.5 Access to Telephones by Rural/Urban and
Income Quintile, 2007 31
2.6 Public Pay Phones in Kenya, 2001/02–2007/08 32
2.7 Wireless Broadband Subscriber Growth (2000–10),
Top 10 Countries in Sub-Saharan Africa 33
2.8 Cost of Fixed-Line Monthly Basket, 2009 36
2.9 Cost of Mobile Prepaid Monthly Basket, 2009 37
2.10 Trends in Mobile Prices in Africa 39
2.11 Median Mobile Monthly Average Revenue
per User, 2000–10 40
2.12 Value Added and Excise Taxes on Mobile
Communications Services, 2007 41
2.13 Average (Mean) Price of a One-Minute Peak-Rate
Call to the United States from Countries in
Sub-Saharan Africa, 2000–08 42
2.14 Price of One-Minute Peak-Rate Call to the United
States from Countries in Sub-Saharan Africa, 2010 43
2.15 eak-Rate International
Call within Africa, 2010 44viii Contents
2.16 Price of One-Minute Peak-Rate Call within and outside
Sub-Saharan African Trade Agreements, 2010 45
2.17 Fixed Broadband Price, 2010 46
2.18 Fixed Broadband Internet Subbasket by Region
and Level of Development, 2008 47
2.19 Monthly Mobile Broadband Prices, 2010 48
2.20 International Internet Bandwidth, 2009 51
2.21 GSM Footprint, 1999 and 2009 54
2.22 Mobile Network Population Coverage, 2009 55
2.23 Wireless Broadband Subscribers in Sub-Saharan
Africa, 2005–10 57
2.24 Backbone Bandwidth Requirements for Various
Communication Services 59
2.25 Fiber-Optic Backbone Infrastructure Deployed
and Planned, 2009 60
2.26 Length of Operational Fiber-Optic Backbone
Networks in Top 10 Countries in Sub-Saharan
Africa (excluding South Africa), End 2009 61
2.27 Length of Fiber-Optic Backbone Network under
Construction in Tan Africa), End 2009 62
2.28 Submarine Fiber-Optic Cables in Africa, 2011 63
3.1 Net Change in Fixed Lines, Sub-Saharan
Africa, 1999–2008 78
3.2 Mobile Voice Market Liberalization in
Sub-Saharan Africa, 1993–2009 79
3.3 Broadband Internet Value Chain 84
3.4 Ownership of Fiber-Optic Backbone Networks 86
3.5 Fiber-Optic Backbone Networks in Nigeria, 2009 89
3.6 Fiber-Optic Backbone Networks in Sudan, 2011 91
3.7 Financing Structure of Regulatory Authority
for Select Countries in Sub-Saharan Africa, 2007 99
3.8 Scorecard for Oversight of the Telecommunications
Sector in Sub-Saharan Africa, 2007 102
3.9 Interconnection Policies in Sub-Saharan Africa, 2008 104
3.10 Mobile Termination Rates in Sub-Saharan African
Countries, 2009 106
3.11 Difference between Expected and Actual
Penetration Rates for Mobile and Fixed-Line Operators 109
3.12 Impact of Reform on Tariffs 110