National Broadband Strategy

Role of

Edwin Provencal 8/31/2009

Content

Who is NCBC

NCBC’s Network

NCBC’s role in BB Pricing strategy

NCBC’s role in achieving GOG’s 4 key strategic themes

Mission & Objectives• Mission

– To ensure the provision of bandwidth to Licensed Service Providers (ISPs) and Operators on an open access and non-discriminatory basis , thereby catalyzing government initiatives

• Objectives• Objectives– Promote socio-economic development– Provide high quality and competitively priced services to

ISPs and Operators– Provide high capacity bandwidth to the hinterlands and

under-served regions of Ghana– Facilitate international connectivity

Progress So Far..

Invested over $30million so far• Cleaning and completion

Planned Investment by 2011 – $62 million• Most resilient national • Cleaning and completion

of southern ring• Contract awarded for the

northern ring 2010• Grown from a 4E1 to

almost 500E1 capacity from April 16 2008 till date.

• Most resilient national network in Africa by 2011

Why NCBC ?1. Best placed to facilitate GOG’s socio-

economic development2. Best Combination of OPGW and Buried Cable

in Ghana (West Africa)3. Robust, Stable Network (Planned, Installed,

Constructing) with Highest Availability 4. Only Protected Ring in Ghana with 30ms

Switching time5. Readiness for International Connectivity

10 REASONS

5. Readiness for International Connectivity (Togo, Cote d’Ivoire and Burkina Fasso)

6. Advanced Plans to Connect Togo for SAT-3 Protected connection

7. Access network for all Submarine Cables8. Availability of Collocation facilities (Power,

Floor/Rack Space,), Tower Space9. Managed Services10.Access to VF’s Accra Metro network

NCBC’s Network Positioning

RingRing

Planned

Existing Network

Under Construction

Legend

RingRing Protected with SNCP/MSP-Ring

Yendi

Bawku Sankase

Ring

Ring

Ring

Elubo

Aflao

Accra

# Task Delivery Date Status

1 Complete and Activate 2 Rings with Protection

Jun-09 Accomplished, ensuring 99% Uptime

2 Construct Middle and Northern Rings

Jul-10 Commenced as Planned

3 Construct International Links

Dec-10 As Planned

4 Eastern Volta Redundancy Link

Aug-11 Under Consideration

Ring

GLO 1 SAT 3

NCBC’s Role in BB Pricing

a b c d

There are multiple legs in the international circuit, for example here the customer bill would include a+b+c+d presented as a single bill and single SLA:

Internet via MainOne

Internet via WASC

Accra(NCBC

interconnect at landing

station)

Accra(NCBC PoP)

Kumasi(NCBC PoP)

Tamale South(customer premises)

Leg Owner (example)

a International capacity via SAT3 / MainOne/ GLO 1 / WASC

b NCBC or ISP

c NCBC

d NCBC or ISP

WASC

Internet via GLO1

Internet via SAT3

2Mbit/s ComparisonKasapa 200km microwaveLondon - MadridLondon - Paris2Mbit/s NCBCVRA Pricing to GatewayVRA 200kmVRA 100kmSouth Africa 200km WholesaleSouth Africa 100km WholesaleNitel Abuja-Kano WholesaleNitel Lagos-Abuja Wholesale

Price Benchmarking – (E1)2MBps

- 2,000 4,000 6,000 8,000 $ per month

Nitel Lagos-Abuja WholesaleCameroon 2Mbit/s >300kmCameroon 2Mbit/s 100-300kmCameroon 2Mbit/s <100KmLondon - MadridLondon - Paris2Mbit/s NCBCVRA Pricing to GatewayVRA 200kmVRA 100kmSouth Africa 200km WholesaleSouth Africa 100km WholesaleNitel Abuja-Kano WholesaleNitel Lagos-Abuja WholesaleCameroon 2Mbit/s >300km

8Source: BT research and Telegeography

STM-1 price benchmark

STM-1 Comparison

London - Madrid

London - Paris

STM-1 NCBC

South Africa 200km Wholesale

9

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 $ per month

South Africa 200km Wholesale

South Africa 100km Wholesale

Nitel Abuja-Kano Estimated

Nitel Lagos-Abuja Estimated

Source: BT research and Telegeography

NCBC new STM1

Delivering the GOG promiseSource: NDC Manifesto

• Completion of Northern Ring by 2010

• Robust Connectivity to key technology parks

• Facilitate ITES and BPOs growth across GH

• Expansion of operational territories of ISPs

Job Creation

Infrastructure Expansion

• Skill development / Youth empowerment

• Reduce job creation burden on GOG

• E-Governance• Public Sector

Reforms

Human Capital

Development

Transparent and

Accountable Governance

Summary

Specific initiatives to support the implementation of the nation's broadband strategies

NCBC’s role should be understood as the umbilical cord between the national broadband strategy and action

NCBC

National BB Strategy

Action/Operations

Strategic guidance should be communicated and implemented on all relevant levels

NCBC

Thank you!

Questions

NCBC Network by Aug 2010

95%+ 4% via Vodafone

NCBC plans to:

• build the Northern Ring (in red) by Aug 2010

– and the Points of Presence to access the new network

• Create a central ring by linking

Togo

95%

99%

+ 4% via Vodafone Microwave

ring by linking Kumasi and Techiman by Q4 09

– and to crosslink the existing network to VF exchanges to provide easy access to customers

– a connection to the border at Bawkuwill enable interconnect with Onatel and Togotel

Current Environment

• 10% points of broadband penetration results in 1.38% increase (GDP) growth (Source: World Bank)

representing $410million dollars based on 2008 GDP estimates (2009 CIA WORLD FACTBOOK )

• 3.8% internet penetration as against the continent’s • 3.8% internet penetration as against the continent’s average of 5.3% (Source: World Bank)

• US$750M potential revenue in 5yrs in BPO Space– 37,000 direct and more than 150,000 indirect (Source: Hewitt)

• Very Competitive market: 6 NOs, 25 ISPs– 23million population, <12million mobile users

• Timing is critical– Dependent on entry strategy - Build/Buy

Some Clients