Towards Digital & Mobile Africa

Mortimer Hope, Director of Africa, GSMA

Connect 2 Connect: Affordable Infrastructure Development, South Africa19th -21st July, 2016

• About the GSMA

• The potential of mobile broadband in Africa

• Mobile Infrastructure

• Example of Mobile industry collaborative

initiative

• Considerations for Policymakers & Regulators

Outline

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About the GSMA

Source: GSMA Intelligence (2015)

The potential of mobile broadband in Africa

Fixed telecommunications infrastructures are both underdeveloped and expensive in most African countries

CONFIDENTIAL5

Infrastructure is a key enabler

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Mobile Infrastructure development is multi-dimensional

Infra

struc

ture

&

spec

trum

shar

ing

Access to public

infrastructure

Access to

spectrum

Taxe

s & P

olicy

mea

sure

s

Airtime excise SIM card tax Import duties Surcharge in Incoming

International Traffic (SIIT) Reduced licence fees for rural USF allocation Subsidized energy access Subsidized satellite backhaul

Passive sharing Active sharing Roaming

Access to ducts, electricity poles, roads & railways, public rooftops

Preferential access to national fibre backbone

Fast-track site planning

700Mhz assignment Spectrum Pooling TV White Space

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Scope & Objectives1. build & actively support local operators’ collaborations in the

implementation of economically efficient model for the provision of mobile broadband access to the underserved

2. identify and advocate regulatory adjustments for the implementation of sustainable mobile broadband access provision to the underserved

3. provide best practices to the industry globally on connecting unconnected population

Example of Mobile Industry collaborative initiativeThe GSMA Infrastructure Economics Programme

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IE Country Pilots Project Roadmap

DUE DILIGENCE CONCEPTS REVIEW

FEASIBILITY STUDY

FIELD PILOT DESIGN & AGREEMENT

PHASE 1STRATEGY

PHASE 2PILOT

PHASE 3IMPLEMENTATION

CONFIDENTIAL

Figures & Forecasts Operator CAPEX is up to USD 78bn between 2015-20,

largely driven by data growth

The mobile industry is projected to invest USD 900bn between 2016 and 2020 into mobile infrastructure to continue to fuel its growth, and Africa will be a big part of this

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Source: GSMA Intelligence (2015)

Source: gsma.com/betterfuture

CONFIDENTIAL

Considerations for Policymakers & Regulators

1. The GSMA supports infrastructure sharing as an industry approach to address national/regional broadband objectives

2. There is opportunity for government to lend support to infrastructure initiatives of operators by phasing out USFs and discontinue collection of USF levies

3. Introduction of Single Wholesale Networks (SWN) as an infrastructure alternative for network may lead to worse outcomes for consumers in terms of availability and quality of service

4. Co-existence between the existing mobile networks and the SWN is also likely to increase uncertainty which will have a dampening effect on investment in mobile broadband services

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Thank you for your attention

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Mortimer Hope - Director Africa, GSMAmhope@gsma.com