VSAT Case Studies: (Nigeria, Algeria and Tanzania)

Executive Summary

This report covers three country case studies on the status of VSAT commissioned by the IDRC through the GVF as part of CATIA component 1a on low cost satellite access in Africa. The country case studies were conducted in Nigeria, Algeria and Tanzania. The report analyses VSAT from two angles: firstly, from a policy and regulatory perspective and secondly, from an economic and usage perspective. In the first instance, the report finds that Algeria, Nigeria and Tanzania are on different points of the ICT development curve. The significant explanatory factor for the various levels of development are the different levels of sophistication of the policy and regulatory bodies of each country.

Nigeria has seen dramatic growth in the levels of investment in the ICT sector since 2001, coinciding with the liberalisation and deregulation of the sector. Algeria is undergoing a dramatic sector restructuring project following a previously absent policy and regulatory framework. The success of this path is limited by the lack of skills in the regulator. Tanzania rivals Nigeria in its move towards liberalisation and deregulation. However, Tanzania's commitment to unfettered competition along with the regulators perception of its function as a revenue generator for the national treasury, have limited local investment and consequently the development of the sector.

In the second instance, the report finds a diversity of opinions amongst primary users in different countries but greater consistency amongst consumers. In Nigeria, commercial users consider the NCC to have undergone a transformation from a bureaucratic and inefficient organisation to one run along business lines. The challenge in Nigeria is not a regulatory one (though with a moratorium on new VSATlicences it could become one) but the lack of technical skills, particularly the belief that Ku band suffers tremendously from rain attenuation.

The survey paints a picture of the average African cybercafé consumer and his or her demands and expectations. The environmental differences described above are reflected in the cybercafé usage patterns. The frequency of usage is highest in Lagos and consumers are demanding more bandwidth intensive applications. In Algeria, the uncertain environment has created a tendency amongst consumers to turn to applications that do not use bandwidth, such as games. The stagnating market inTanzania is reflected in the high percentage of consumers that report the same cybercafé usage patterns over the last six months.

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