Build it and they will come
Former iBurst MD Alan Knott-Craig Junior told delegates at the recent sixth annual IIR Broadband Summit that telecoms and broadband network investment in Sub-Saharan Africa is not merely needed, but is a massive investment opportunity.
According to Knott-Craig the insatiable demand for communications services and broadband access in Africa essentially means that a ‘build it and they will come’ business model is sustainable in the long term, and predicted that 3G will be “everywhere in Africa in five years’ time.”
The affordability of 3G services in Africa remains low, but Knott-Craig predicts that this problem will also be solved. “In five years’ time 3G costs in Africa will be below 10c per MB – or maybe even as low as 1c per MB,” said Knott-Craig.
There are however financial difficulties in making money from data only. Knott-Craig explained that broadband services are used to ‘hook’ customers which are then enticed to also use voice and other services which creates more revenue and profits.
Knott-Craig said that they selected the wrong technology (iBurst) when he was leading iBurst South Africa, and urged companies to use 3G/HSPA and later on LTE to avoid suffering the same fate as iBurst.
While wireless technologies will be used to provide mobile broadband access to most Africans, Knott-Craig said that fixed line DSL access remains important. “DSL is still the best way to get into the Internet,” said Knott-Craig.
The former iBurst SA MD and World of Avatar founder concluded by saying that whoever invests in an extensive Sub-Saharan African broadband network now will most likely become the most powerful person on the continent.
Build it and they will come << Comments and views
Loading ...