The Promise of Telecom Infrastructure for Africa

A recent article by Richard Wray and Fahad Mayet of the Guardian analyzes the connection between Africa’s telecommunications infrastructure, in particular its growing mobile phone network, and the prospects for economic growth. According to the authors, in sub-Saharan Africa, “a mobile phone can be a passport out of poverty.” Telecommunications infrastructure reduces costs of interaction, expands market boundaries, and improves information flows.

Citing research by Professor Leonard Waverman of the London Business School and others, Wray and Mayet note that Africans use their cellular phones for various business needs: retailers call suppliers for price quotes, farmers check weather reports, traders call contacts to determine what is needed at the market. In addition, mobile phones help remote villagers access medical advice and help doctors in regional hospitals get advice from senior doctors in cities. The authors also observe that the cellular industry in Africa has spawned intermediary services, such as mobile phone recharging.

Launch of Pan-African Satellite Offers Promise of Improved African Telecommunications

On December 20, RASCOMSTAR-QAF launched the first telecommunications satellite dedicated solely to the African continent. The satellite was built by Thales Alenia Space under a $150 million turnkey contract with the Regional African Satellite Communication Organization (RASCOM), a treaty-based, inter-governmental organization. RASCOMSTAR-QAF is the pan-African operator in charge of deploying and operating the satellite, including system financing, design, supply, construction, installation, reception, and maintenance.

The satellite will provide fixed voice and data, Internet access, and broadcasting services. In particular, the satellite should help improve Internet and telecommunications connectivity in rural communities that currently have limited, if any, access to phone and Internet services. The dedicated satellite will reduce costs and improve pan-African inter-connectivity for African telecom operators.

Thales Alenia Space is a joint venture between Thales (67%), a French aerospace, defense, and IT company, and Finmeccanica (33%), an Italian aerospace and defense company. RASCOMSTAR-QAF, registered in Mauritius, is a joint partnership of LAIP (33%), GPTC (29%), RASCOM (26%) and Thales Alenia Space (12%).

For more information related to Africa’s first dedicated telecommunications satellite, see:

• Press Release from Thales
• RASCOM inter-governmental organization homepage
• RASCOMSTAR pan-African satellite operator homepage