Four projects laying undersea cables along the east coast of Africa will bring “unprecedented” business opportunities to the region.
According to a recent IDC study, the cable projects will alleviate East Africa's dependence on expensive satellite broadband. The company says the satellite technology has contributed to a scarcity in communication, education and market opportunities.
“Although the laying of the first cable by mid-2009 will immediately increase broadband availability, substantial price drops may only occur once additional cables provide competition,” says Francis Hook, regional manager of IDC East Africa, and the author of the study.
He says governments in the region hope to use the capacity to transform their economies. “Land infrastructure projects abound as governments lay cable to bring capacity in from the coast, an especially important project for landlocked nations."
According to his report, some governments have begun stockpiling business capacity in preparation for the economic boost. “Kenya is already subsidising communications costs for business process outsourcing (BPO) providers and establishing a BPO zone, ensuring there will be a supply of labour in place once cheaper and more reliable broadband arrives."
Outsourcing destination
Hook explains that many countries hope to use the cables as a way to boost fledgling BPO business models. “Several countries in the region have fledgling BPO industries that take advantage of lower competition for educated workers than in the overheated Indian outsourcing market."
He adds that countries like Kenya or Uganda offer enough educated, English-speaking workers to appeal to medium-sized enterprises. “Some stakeholders in cable projects also have outsourcing divisions in India, and are likely preparing to apply this expertise in East Africa."
Only a handful of sub-Saharan countries along Africa's western coast are covered by the South Atlantic 3/West Africa Submarine Cable (SAT-3/WASC), which provides connectivity to Senegal, Ivory Coast, Ghana, Benin, Nigeria, Cameroon, Gabon, Angola and SA.
Another segment of the project, SAT-2/WASC/South Asia Far East, connects SA and Mauritius with India and Malaysia.
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