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Google Aims to Bring Broadband To Africa
With some help from John Malone and HSBC...

The Financial Times reports that Google, HSBC, and Liberty Media boss John Malone have joined forces to bring high-speed satellite Internet to under-served portions of the African Continent. The new company is named "O3b Networks," after the "other three billion people" who won't get access to high speed terrestrial broadband. As a first step in the $750 million project, O3b will place an order for 16 new low-earth orbit satellites. According to Google, O3B will operate as a wholesale operator only, and the project could reduce bandwidth costs across the continent by some 95%.

There's just one large-scale international link in Africa (SAT-3/WASC/SAFE) connecting eight countries on the western coast of the continent to Europe and the Far East. According to All Africa, prices are dropping across the continent. Still, in some regions a 512kbps connection can cost consumers up to $231.79, and a 1,024kbps connection can cost $509. In other parts of the continent you can get a 512kbps connection for less, though the fine print would make many American incumbent executives very proud:
quote:
...in South Africa there are potentially three additional amounts that will be added to the bill at the end of the month. Firstly, the access charges paid for a 512 Kbps connection add a further US$43.17. Secondly, the connection is "shaped" which means that it's impossible to use VoIP so you can pay an additional US$22.33 for an unshaped connection. Thirdly, in order to have unlimited downloads you pay an extra US$64.01. All of which gives a whole new meaning to "slice-and-dice" pricing.
Of course, the vast majority of the continent's population have no service whatsoever.

Most recommended from 42 comments



chlen
Ethically Challenged
Premium Member
join:2001-01-16
Saratoga, NY

5 recommendations

chlen

Premium Member

This can be an amazing thing.

For those of you not writing policy, implementing it or doing anything productive let me educate you a little.

Google providing any kind of internet service to areas such as Africa is an incredibly powerful device in creating the need for computers and more advanced economic markets, the results of which are more stable government and infrastructure developments.

Example.

Not too long ago most people in Africa had to go to special places to make phone calls, or trade. In order to get contacts in large capitals, they had to find a way there, make small orders and basically continue subsitance.

Cell phones have revolutionized the continent. Most of even remote areas of Africa especially in the west are able to get cheap cell phone service. This allows people to connect at a fraction of the cost and more then 1/3 of all people on the continent have access to a cell phone, whether they own one or have one in the family. The cost is next to nothing, and this allows for trade integration. Large commercial firms are able to communicate with remote farms, distribution centers and such. Botswana, Angola, Senegal, Kenya, Nigeria are all very good examples of this. They have all been posting positive GDP gains in remote areas and creating a modern supply infrastructure for trade.

More importantly.

Cell phone tower are relatively cheap to build and employ the local population and utilize local resources. They require training of skilled professionals, again from the local population. Cell phone towers require roads to them for servicing as well as electricity. Roads create more road and so on, in parallel vastly improving travel and ease, again increasing trade and decreasing the reliance on subsistence.

Since towers require electricity, power plants are built, lines are set up. Power to remote towers means there can now be water pumps, filtration and irrigation systems among many others that can be set up from these power lines. Previously there was no profitable reason to run power to non-urban areas. Obviously water/electrical/sanitation systems employ people from the local population and mass coordination of commodities can set up natural markets since farmers can form cooperatives and grow what is needed for the market instead of just for the village or their immediate area. It continues in this way. Cell phones, like computers are dirt cheap. They may not be using the top of the line phone, but it is more then adequate. Same would be at first with computers.

With all of this combined Africa has the highest uptake of cellphones in the world. It is by far the hottest market for them. In just the last 8 years 1/3 of all people on the continent own, use, and have access to cell phones. Many were saying why do they need cell phones when they dont have any food 8 years ago, but a growing cellphone infrastructure directly correlates to economic and quality of life improvements, as well as education. Because there is now electricity and connectivity to remote areas, schools and western non-profits like the red cross can easily coordinate aid, education, and other resources, specifically televisions with western media.

A massive deployment of broadband would further facilitate trade, education and infrastructure development, thus creating a more stable continent.

While Africa is very unstable it is much better then it was, directly correlated to the development of mass communication systems, which bring with them FDI (Foreign Direct Investment).

Next time some of you whine about why people are spending money in Africa to give them broadband, your answer is because it is incredibly practical, profitable and we all get a reward from it. The same was done in China and India, and both of them became more open and productive societies.

So communications systems contribute to.

Sanitation
Water Delivery
Agriculture
Electricity
Markets
Stability
Skilled Labor
Foreign Investment

among many other things.

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

3 recommendations

Transmaster

Member

Thank You Google

I would like to thank Google for my late father Olumba Bawoomby the murdered finance minister of Nigeria. Having high speed internet will help me in my struggle to get his estate out of the country. It isn't easy moving 25 million in cash. With Googles help maybe I can at last get the job done.