An ITP Media Group Publication www.commsmea.com Critical analysis for telecommunications executive JANUARY 2020 Download the free CommsMEA app and be the fi rst to read the latest issue on your mobile devices. Sami Yousif Mohamed new CEO and group president of Sudatel is driving the MNO forward into the era of digital disruption SPECIAL REPORT: Experts discuss what 5G is and how it can benefi t you FEATURE OPINION Connecting the unconnected Ericsson: Delivering a world where 5G transforms healthcare experiences COUNTRY FOCUS: South Africa and the 5G revolution SUDATEL GETS NEW CEOCABSAT.COM 31 MAR - 02 APR 2020 DUBAI WORLD TRADE CENTRE To book your stand, contact the CABSAT Team on +971 4 308 6552/6433 or email CABSAT@DWTC.COM Organised by #CABSAT2020 The Middddddddle Easassstttt &&&& NoNorthh Africaca’s leeeeeading eveeeeentnt for CONTENT CREATIONBROADCASTSATELLITE3www.commsmea.com CONTENTS JANUARY 2020 CommsMEA January 2020 For more stories and analysis, visit commsmea.com. Twitter: @COMMSMEA 2426303640 Case study: South Africa’s first ever blockchain-based property register pilot in Cape Town, learn all about it - Source APO Group Interview: South Africa: where is it in the 5G race, what are the country’s chal- lenges and where does it go next? Experts give their opinion Security: Connecting the uncon- nected is a challenge being tackled by most MNOs and service providers across the globe Opinion: 5G fixed wireless ac- cess will reshuffle the fixed vs. mobile para- digm explais telecom- munications economics experts Report: Stephane Pommereau, business development director for Middle East, Africa & Indirect, Enterprise Services, Or- ange Business Services Update: Ericsson discusses de- livering a modern world where 5G completely transforms healthcare experiences Opinion: Chris Pope, VP Innova- tion, ServiceNow looks at AI, robots and the ever-evolving modern workplace Opinion: Antoine Abi Abad, gen- eral manager, Emitac Enterprise Solutions- UAE analyses ease-of- use of future networks Opinion: New CEO & group president of Sudatel Sami Yousif Mohamed outlines his roadmap for the MNOs future Opinion: Tadhg O’Donovan, as- sociate head of School, School of Engineering and Physical Sciences, Heriot-Watt University 1012141620 26 30 24 40 16 Table of contents: January 2020 edition About the author Georgina Ford is editor at large Got a comment? E-mail at: commsMEA@itp.com Oxford Economics study, would add $43 billion to the regional GDP. One of the challenges that South Africa, our country focus this month, is facing is the roll-out of 5G. MTN, one of the coun- try’s largest MNOs opened up its 11,000th 4G site just last year. Many MNOs are still trying to gain back the money they spent on 4G in a country where the average income is falling, and yet data and mobile rates are not. Add to this that many in the African nation would not be able to afford the new 5G handsets. So, we must ask, is 5G a sensi- ble course of action for South Africa at the moment, or, should they be prepared, take their time, and roll it out more slowly than for example, the UAE, which is in a race to get 5G out and done before Expo 2020? What are your thoughts on the develop- ment of 5G in South Africa? I have thoroughly enjoyed editing COMMS MEA for the past few months, but, as editor-at-large, it is time to hand over the reins to the new incoming editor, Chris Kel- ly. Kelly has extensive experience in the tel- ecoms sphere, and was recently the editor of Total Telecom in the UK. I look forward to welcoming him to the publication. Africa, is one of the most excit- ing and vibrant continents when it comes to the roll-out of new technology. Because of the vast, and isolated rural populations, and the lack of funds for con- sumers to purchase new phones to support new technologies companies and MNOs working on the continent have to work harder, and smarter to bring populations online, whether that be upgrading from a 2G phone to a 3G phone, or just accessing the internet. Mobile penetration on the continent is one of the lowest in the world, at 44 percent, while access to the internet, Connecting the unconnected is an exciting challenge for MNOs and service providers PUTTING AFRICA ON THE TELECOMS MAP By: Georgina Ford something that us in developed nations consider a necessity for every day life is at a rather abysmal 25 to 30 per cent in Africa. Imagine, if you will, a world without access to information, or trying to build a business on nothing but word-of-mouth. It is economically crippling. In this month’s Connecting the Unconnected feature, we explore ways in which to get internet ac- cess and mobile connectivity to these re- mote nations. Even something as seemingly small as giving remote communities mobile access to banking could not only dramati- cally change the lives of the people in those remote communities, but, according to an “Imagine, if you will, a world without access to information, or trying to build a business on nothing but word-of- mouth.” Africa is a vibrant and diverse nation both culturally, and in terms of technological advancement opportunities. Image credit: Photo by Muhammadtaha Ibrahim on Unsplash 4www.commsmea.com COMMENT EDITOR CommsMEA January 2020Financial identities for the unbanked in Africa would add $43 billion to regional GDP, says new study For more stories, check out commsmea.com. Follow CommsMEA on Twitter: @COMMSMEA Oxford Economics study points to Nigeria, Cote d’Ivoire and Madagascar as stand-out markets for growth in financial services for the unbanked FINANCIALS A newly published report projects that es- tablishing financial identities for the finan- cially excluded – or unbanked – population across sub-Saharan Africa would add an extra $43 billion to annual gross domestic product (GDP) for the region. This figure equates to an average increase in GDP of $41 per person: it also factors in a 17 per cent rise in total household savings ($31 billion). The global report, “The YES Economy: Giving the world financial identity”, was au- thored by independent global advisory firm Oxford Economics, on behalf of Juvo, the pioneer of Financial Identity as a Service (FiDaaS) technology. Financial Identity as a Service technol- ogy analyses alternative data using machine learning to build financial identities, allow- ing billions of unbanked and underbanked consumers to qualify for financial services, often for the first time. Oxford Economics identified Nigeria ($7bn GDP uplift), Cote d’Ivoire and Mada- gascar (both $3bn uplift), as the stand-out markets for this growth. For the forecast, Oxford Economics de- vised a Financial Identity as a Service ena- bled scenario to reflect a world in which mobile telecom operators have created a unique financial identity and credit score for their unbanked customers, allowing the provision of financial services to those that lack a credit history. This is an outcome that the report calls the “YES economy”. The name comes from financial service providers being able to say “yes” to custom- ers and fully extend their services for the first time to the globally unbanked, thanks to their new financial identity. Mobile operators extend low-cost, low risk offers to their customers, such as air- time loans. Based on payback behaviour, Financial Identity as a Service consumers gradually build up to larger transactions: and then are able to access further financial services, via partnerships between a operators,and a wide variety of financial service providers and different types of merchants for goods and services. Giving banking access to the unbanked will add millions to local country economies, particularly in Cote d’Ivoire (pictured), Nigeria, and Madagascar. Key Developments The analysis found that resolving the financial identity problem in Africa would deliver the following estimated results: he mobile sector in Oman has become more and more competitive in recent years, due to both the market becoming saturated as well as the rise of MVNOs. • A $43bn increase in regional GDP • A $22bn increase in credit availability to households • A $31bn increase in household savings • A $41 average increase in GDP per person According to World Bank data, 3.9 billion people around the world (68 per cent of adults in total worldwide) are locked out of the formal economy due to a lack of credit history. These adults are unable to provide the necessary information that would make up their “financial identity”, such as a formally recognised credit history. By providing unbanked people with the means to have their own financial identity using the FiDaaS model, mobile operators can help unlock over- looked sources of cash to expand the global economy’s capital base. IMAGE credit: Photo by E va Blue on Unsplash 5www.commsmea.com UPDATE OPERATIONS CommsMEA January 2020 For more stories, check out commsmea.com. Follow CommsMEA on Twitter: @COMMSMEA Company has completed terrestrial link between Namibia and Tanzania Paratus extends its coverage across Africa DATA Paratus, a leading telecoms operator with operational offices in six African countries, is one of the first telecoms operators to bridge Africa from East to West. The company has now implemented ad- ditional routes for redundancy and is in the process of an aggressive rollout plan, build- ing even more routes across the region to ensure maximum uptime for clients using this route. The company reported in August 2019 that it had finally completed a terrestrial Paratus has completed a network system that connects Africa’s east and west coasts. do not have access to undersea cable sys- tems, with much-needed capacity is critical to ensure that we leverage the infrastruc- ture investment we have made across the African region,” he said. Paratus is currently in the process to complete the Maputo link, which will not only connect into the Trans-Kalahari Fiber (TKF) route which already extends through various countries in SADC, but will also be the second East to West Coast route com- pleted by the operator after completion of the initial route from Dar es Salaam, report- ed in August. “Africa is a continent with countless op- portunities, and we believe that we need to harness this potential to see more growth across the continent. It is evident that investment in infrastructure does show growth in the economy and are inextricably linked,” he said. Connecting land-locked countries, that do not have access to undersea cable systems, with much-needed capacity is critical to ensure that we leverage the infrastructure investment we have made across the African region.” Paratus group COO Schalk Erasmus Image credit: Photo by Clint Adair on Unsplash East and West coast of Africa connection between the WACS undersea cable in Swa- kopmund, Namibia and Dar es Salaam, Tan- zania. Paratus is the first operator to bridge the African continent, linking the East and the West coast of Africa (outside of South Africa). Paratus group chief operating offic- erSchalk Erasmus says the route extends 4160 kilometres and is fully operational un- der one single Autonomous System Num- ber (ASN) and boasts a Round Trip Time (RTT) of 62ms. “Connecting land-locked countries, that 6www.commsmea.com UPDATE OPERATIONS CommsMEA January 2020Partnership to have long-lasting impact on economic perspective of young people Orange and GIZ form strategic alliance to enhance digital employability of 20.000 young people in Africa and the Middle East PARTNERSHIP Alioune Ndiaye, CEO of Orange Africa and Middle East, and Kathinka Kurz, head of the Development Partnerships Program with the private sector at the Deutsche Gesellschaft für Internationale Zusam- menarbeit (GIZ) GmbH, signed a partner- ship agreement to develop the digital skills of 20,000 young people in 14 countries in the Africa and Middle East region. Orange and GIZ as two major institutions, one rec- ognised for its expertise and know-how in the field of innovation, the other recog- nised by its experience and expertise in supporting the economic and social de- velopment of partner countries, will work hand in hand to train young people in digital skills, improve their employability and thus help reduce unemployment. Both parties join forces and bundle their compe- tences and resources, with a financial con- tribution of EUR 20 million by Orange, and up to EUR 10 million by GIZ. This partner- ship will have a long-lasting impact on the economic perspective of young people. In the context of the project GIZ acts as implementation partner for the German Federal Ministry for Economic Coopera- tion and Development (BMZ), who has set up the develoPPP.de program to foster the involvement of the private sector at the point where business opportunities and development policy initiatives overlap. Orange and GIZ will establish digital hubs in Africa and the Middle East – Or- ange Digital Centers (ODC). These cen- tres offer young people training in digital technology free of charge, they accelerate the creation of start-ups and support pro- ject leaders. The ODCs will feature digital state-of-the-art equipment. The teams will work with various stakeholders and the en- trepreneurial ecosystem of each country to train young people and support in finding jobs. The ODCs will also work with univer- sities in the regions. The ODC concept already launched in Tunisia and Senegal will soon be deployed in Morocco, Jordan, Cameroon, Ethiopia, Mali, Madagascar, Sierra Leone, Ivory Coast, Egypt, Burkina Faso, in Guinea and Liberia. Each ODC includes a coding school, a FabLab Solidaire, a start-up ac- celerator “Orange Fab” and Orange Digi- tal Ventures Africa, the Orange Group’s investment fund. Each of these four pro- grammes is aimed at a specific audience. The Coding School, a free access technol- For more stories, check out commsmea.com. Follow CommsMEA on Twitter: @COMMSMEA ogy centre that offers training, events and support for developers, geeks and project ideas. The FabLab Solidaire, a digital manufacturing workshop for creating and prototyping with digital equipments, also targets young people without diplomas and without jobs. The FabLab Solidaire of the ODC is part of the worldwide network of 88 FabLabs Solidaires belonging to the Orange Foundation. The aim of this partnership between Orange and GIZ is to make digital a chance for everyone. Orange is present in 19 coun- tries in Africa and the Middle East and has nearly 125 million customers as of October 30, 2019. With sales of EUR 5.2 billion in 2018, this zone is a strategic priority for the Group. Orange Money, its money transfer and mobile money service available in 18 countries, has 45 million customers. Alioune Ndiaye, CEO of Orange Africa and Middle East, and Kathinka Kurz, head of the Development Partnerships Program with the private sector at the Deutsche Gesellscha für Internationale Zusammenarbeit (GIZ) GmbH. 7www.commsmea.com UPDATE OPERATIONS CommsMEA January 2020 For more stories, check out commsmea.com. Follow CommsMEA on Twitter: @COMMSMEA Technology for Good Impact Report: Greater multi-stakeholder cooperation nec- essary to ensure that the benefits of digital technology reach all Ericsson Report: Technology can impact all 17 Sustainable Development Goals of the UN INVESTMENT Ericsson presented its first Technology for Good Impact Report at AfricaCom 2019 to highlight the positive societal impact ena- bled by the company and its partners. The report, launched on the eve of the 2019 UN General Assembly, highlights cases where Ericsson’s technology and expertise are helping to solve global challenges, across broad themes of climate change and reduc- ing inequalities. When a country adopts mobile broad- band, the result is solid overall economic development, according to a report devel- oped in collaboration with the Imperial College of London and Ericsson Research. As per the report, a 10 per cent increase in the mobile broadband adoption ratio causes a 0.8 per cent increase in Gross Domestic Product on average. Mobile broadband enables internet access and the delivery of digital services to meet a wide range of societal needs, including access to education and health services, financial inclusion, entrepreneurship and humani- tarian response, while helping to reduce inequalities. The report called for greater multi-stakeholder cooperation to make sure that the benefits of digital technol- ogy reach all, while addressing associated challenges. Furthermore, the Technology for Good Impact Report highlights how Information and Communications Tech- nology (ICT) has the potential to positive- ly impact all 17 Sustainable Development Goals of the United Nations. Deployment of mobile broadband networks supports economic development IMAGE credit: Photo by F ernando De arf erdo on Unsplash Key highlights from the Technology for Good Impact Report case studies in Africa include: • In the Central African Republic, Ericsson has rolled out a 3G modernisation programme using a solar hybrid solution to help reduce the carbon footprint. The innovations have resulted in a 75 per cent reduction in total site power consumption while retain- ing full coverage, service quality and performance, removing the dependency on diesel energy and making solar more economi- cal than diesel for the first time. • Ericsson Mobile Financial Servic- es (MFS) platform provides easy- to-use, secure, next-generation mobile financial services. Mil- lions of unbanked mobile users are now enjoying mobile financial services. The solution currently covers 13 African countries • Ericsson has launched the Digital Lab program, an innovative edu- cation program targeted towards older children to support them in their first encounters with the world of programming and new technologies. During 2019, the programem kicked off in South Africa. - Source: Ericsson 8www.commsmea.com UPDATE OPERATIONS CommsMEA January 2020 For more stories, check out commsmea.com. Follow CommsMEA on Twitter: @COMMSMEA Projects in Mali, Madgascar, South Africa among grant recipients Internet Society Foundation announces $300,000 in grants for projects that promote the benefits of the internet INVESTMENT The new Internet Society Foundation has issued its first set of medium and large grants (ranging from $12,000 to $30,000 each) to 13 ground-breaking projects that seek to spread the benefits of the internet around the world. The Internet Society established the Internet Society Foundation to fund pro- jects that will improve the quality of peo- ple’s lives everywhere. The Foundation awards grants to Internet Society Chap- ters as well as non-profit organisations and individuals dedicated to providing mean- ingful access to an open, globally connect- ed and trusted internet for everyone. Of the more than 40 applications re- ceived this year, 13 projects were selected by a committee that evaluated projects based on criteria that included originality and innovation, community impact and sustainability and technical feasibility, among others. The projects in Africa selected for grants include: • $30,000 to create Wi-Fi access points and an off-the-grid Media Center within the Mamaila Tribal Authority, South Africa. The project will also build com- munity capacity through training on cybersecurity, content development, en- trepreneurship, and the construction, operation and maintenance of commu- nity networks. This aims to empower unemployed youth to organize them- selves into cooperatives to advance their socio-economic aspirations and expand the planned network infrastructure. • $12,322 will go towards creating com- munity networks for 5,000 people in three remote farming communities and awareness-raising in Madagascar. The project will also provide techni- cal training and basic Internet skills to a group of people who will train others to use the Internet to capture practical information for their economic develop- ment (such as on weather forecasts that can impact harvests and the prices of the agricultural products they sell). • $30,000 to generate reliable statistical data on internet use in Mali, in particu- lar on the use/misuse of social media, which has become popular in both rural and urban areas. Most existing data has been produced by telecoms operators, Grants will benefit communities across Africa. IMAGE credit: Photo by Nasa on Unsplash for commercial ends, and results have not been made widely accessible. The results of this project, however, will be widely available through its publication and dissemination. The Internet Society Foundation pro- vides grants to the internet community, Internet Society Chapters, non-profits and individuals working on programmes including: • Initiatives that build community capac- ity to access and benefit from the In- ternet (including digital literacy skills, reaching unconnected populations, awareness-raising and local content- production) • Initiatives that respond to natural dis- asters 9www.commsmea.com UPDATE OPERATIONS CommsMEA January 2020Next >