Reference no: EM131253774

Rural Africa Reaches to the Sky for Internet Access

In Africa, only about 16 percent of the population has access to the Internet. By comparison, about 63 percent of the population in Europe has Internet access. Furthermore, Internet connectivity is plagued by the low bandwidth, unreliability, and high cost. Overcoming this digital divide is not an easy task, as the continent lacks terrestrial connectivity between the submarine cables, the Internet exchange points-the infrastructure Internet service providers (ISP) need to exchange traffic between their different networks-and ‘last mile' delivery systems. As a result, individuals, organizations, and businesses rely heavily on mobile telephony and satellite technology.

SkyVision has stepped into the African market and other emerging markets with customized satellite-based virtual private networks that are supporting economic development. The VPN allows companies to connect their WAN sites to share data and support significantly more efficient collaboration. Through its satellite systems, SkyVision is able to offer reliable broadband and high-speed data services to the most remote locations.

For example, only 12 percent of the rural population in Zimbabwe have access to banking services. Banks simply cannot provide connectivity to rural areas where 65 percent of the population lives. SkyVision VPN connected the
Harare headquarters to the rural branches so that they could offer the wide range of banking services that rely on core banking systems, email, Internet, and point of sale (POS) services. SkyVision satellite and fiber optic VPN technology allowed one Nigerian bank to install and connect 90 ATM sites to never-before-served rural locations. Within the developing oil and gas industries, SkyVision has also established reliable connectivity between companies' headquarters and remote depots-as well as between onshore and off-shore operations.

SkyVision technology has also promoted the development of economic ties between Europe and Africa. The Agro-Industrial Group, for example, need to connect several private African agro-industrial companies to each other and to their European headquarters. SkyVision established reliable and secure data sharing system.

Despite these advances, analysts point out that the prices of more reliable connectivity solutions are prohibitive for many companies, organizations, and businesses. So many organizations and corporations are continuing to take initiatives. In late 2013, Google announced Project Link, a plan to build fiber optic networks that would allow for highspeed Internet connectivity. The project is headquartered in Kamala, the capital of Uganda, a dense urban center that lacks broadband access. Google is hoping to fund the project by charging the mobile telephony providers who will link into the network.

These efforts, however, will focus on major cities and support development in urban Africa. Yet a number of barriers exist to high-speed terrestrial networks. African governments sometimes charge high licensing fees and tax technology equipment heavily. Policy-makers also need to cooperate to facilitate cross-border terrestrial connectivity and encourage private investment. Until governments take these steps, it will be left to initiatives, like those of SkyVision, to reach out to those in remote rural areas.

Discussion Questions
1. Where does Africa stand in relation to Europe and other developed nations with regard to Internet connectivity and use?

2. What technological barriers do companies face when trying to link networks that are located in different locations and how do companies like SkyVision help these companies?

Critical Thinking Questions
1. Do you think that innovators like SkyVision or Google will have more success?

2. What role do you think governments and international organizations should take in overcoming the digital divide in urban and rural Africa?