Convergence or the meeting and fusion of various technologies has certainly been around for a while now. But it has always been the stuff of engineering and geeky conferences. The rise and rise of the Internet brought into sharp focus the real potential of technological convergence. Backtrack to the late 90s and early 2000s: convergence of television broadcasting and internet technologies was one of the hottest technology topics.  At that time, the focus was on turning the Personal Computer (PC) into a television (TV) and vice verse.  Companies in the western world raced to provide “triple play services”- voice, video and data (internet access) on the same link (copper wire, cable TV or fixed wireless) to homes and businesses. By the mid 2000s, fortunes had been made and lost. Then the mobile phone grew up and the potential of 3G with its largish bandwidth promise saw the mobile telephony providers join fray. This is when Africa also joined the convergence and triple-play conversation.

Convergence of several technologies on the mobile phone has been moving along steadily. Now, camera phones are considered standard in the developed world and increasingly so in Africa as well. Radio is fast becoming standard too. Data capabilities on the mobile phone has doubled and in some cases tripled the number of people with internet access in many countries in Africa. This, in the space of a year or two. Applications like Facebook are a huge hit in the more cosmopolitan cities of Nairobi, Lagos or Dakar. Indeed, there is growing evidence that access to the internet via the mobile phone is not limited to African cities or the more affluent but is also used by rural communities as this story suggests (see http://allafrica.com/stories/200911300642.html). And now we have the arrival of television on the mobile handset.  At the moment, mobile phones with TV capabilities have a TV tuner built into the handset. True convergence- where the video, data and voice are all seamlessly delivered over the same cellular channel- is not a reality yet.  But this is on its way with technologies such as Long Term Evolution (LTE) showing huge bandwidth promise.

According to knowledgeable friends in Kenya and Uganda, this TV-on-the-mobile-phone phenomenon is growing fast thanks to cheap Chinese “smart phones” that cost a quarter or even less of the established brand models. Consider that only a handful of countries in Africa have more than 10 televisions per 100 inhabitants (and almost none in sub-Saharan Africa excluding South Africa and Mauritius). Consider also that Africa averages about 37 mobile phone subscribers per 100 people and growing rapidly according to the ITU. The possibility of having TV on the mobile phone will dramatically increase the number of TV owning and viewing people in Africa. Combine this development with the increasing move towards digital television in Africa (international agreements call for all countries to have adopted digital television by 2015) and the ability to deliver perfect video over the internet and one realizes that the economic and social implications of this development could be dramatic in a sense.

So what will change?

If you imagine that digital television will be to television what FM radio was to radio, then soon, every community in Africa will have a TV station up and running. Add in the ability to receive television broadcasts on the mobile phone and we are looking at an explosion in TV viewership. This means the demand for local content is going to grow with a resultant shift from being net content importers to mostly local content consumers. This is good news for the African multimedia and other content production and distribution industries. Perhaps this is the best thing to have happened to established and nascent film industries in several African countries. Already “Nollywood” (Nigeria movie industry) is thriving and such technological developments can only mean that viewership will increase.  

As local content consumption grows, it is only a matter of time before intellectual property rights become a hot issue in Africa. At the moment, it is probable that intellectual property rights are ignored because most content is foreign. As a growing number of Africans create content, they will in turn expect financial compensation and demand for protection of their intellectual input. 

Traditional television stations and newspapers might also be in for a rude awakening. The mobile phone’s ability to record videos and take pictures coupled with its increasing ability to share pictures and videos cheaply and seamlessly from the same device means that community journalism and broadcasting will probably be the “in-thing” in a few years. The current debate on the demise of the traditional journalist in the more developed countries is coming to Africa sooner rather than later.

The advertising industry will follow the viewers and so an explosion in TV advertising might soon be on the way. Whether potential growth in TV advertising will be tampered by competition from online advertising remains to be seen. But it’s probably a safe bet to say that TV advertising will dominate internet advertising in Africa for a few more years.

Then there are the social, cultural and political implications of a large TV-owning society. TV is considered the most “realistic” medium, the power of pictures and sound is incredible. Reading about or listening to events happening in one part of the country is simply not the same as seeing a video. This is good news for political and social activists and bad news for those who are considered opponents of “progressive change”.  Will wide spread TV ownership somehow lead to a renewed interest in African culture or will it be the straw that broke the camel’s back? The jury is out on this one.

I am optimistic about the positive change that increased ownership of TV will bring to Africa. It will bring much needed impetus to develop local content. It will spark innovation and creativity in the media and broadcasting industry in Africa. And it will surely (re)shape politics, culture and society. Foreign content producers do not really consider Africa a key market and this will work in favor of the local content industry as foreign competition will be muted, initially at least.

He said together with the developed world, there must be ways to promote stronger and more effective international partnerships for growth and development.

Zuma says African leaders do not want to create the impression that they have come cap-in-hand to ask for favours.

“We reiterate that Africa is open for business. It is open for trade and investment.”

Zuma said Africa’s recent economic success is “proving Afro-pessimists wrong.”

Sub-Saharan Africa’s growth rate is only surpassed by China and India. Zuma attributed this to good policies and regulations, business rescue programmes, job retention schemes and huge infrastructure programmes.

“There is every expectation that Africa’s current pace of growth will remain at a high level, at around six percent per year,” he said, also calling for fair trade.

“Our movement forward will be greatly enhanced by the speeding up of economic reforms to enable more inclusive and faster growth,” he said.

He emphasised that changes in both the voting structure and leadership of the International Monetary Fund (IMF) and World Bank will be crucial in ensuring a more stable and equitable financial infrastructure.

“The developing world has an equal right to run these institutions,” said Zuma.

Reform of global financial systems will be a priority issue for many G20 members; China, India, and Brazil who will join South Africa in arguing that their economic strength needs to be better reflected in the architecture of major institutions.

Leadership of the World Bank and the IMF has been dominated by Europeans and Americans, which many analysts see as a strong Western influence and an imbalanced voting structure.

With the World Cup in full swing, the president said the country will never be the same again.

He says through the successful hosting of the event, Afro-pessimists are once again proven wrong.

“More than the infrastructure that our future generations will inherit, we remain hopeful that the various skills that our people acquired since we started working on this FIFA World Cup project, will prove useful going forward.”

The East African Community (EAC) trading bloc will create a market of close to 130 million people and a combined GDP of 80 billion dollars, making it one of the largest trading blocs in Africa.

However , even though July 1, 2010 marks the first official day of the union, the members made up of Burundi, Kenya, Tanzania, Rwanda and Uganda are not expected to harmonize laws and regulations essential for a common market protocol for several years to come.

The treaty has already been ratified by member states. It provides for the free movement of goods , people, workers, services and capital as well as the right to reside in any of the member nations, as agreed by member states, removing all restrictions to these rights.

Speaking at the launch of a two year $2.5 million initiative project that will provide capacity building and technical assistance to the East Africa Power Pool, USAID/EA’s director, Candace Buzzard said this would improve the quality of life in the region.

The union will see an improvement and access to affordable, clean energy through regional electricity trade and exchange.

The union will also further enhance the development of the eastern Africa regional electricity market, promote reliability, address shortages, lower access costs and expand the regional power capacity.

Business owners from various sectors are looking forward to a larger market, despite some apprehension from the smaller and less developed nations.

There have been active discussions about creating a common currency as early as 2012.

An Upper Second Class Graduate of the University of Nairobi in 1989, Gilda started her working career as a marketer in a company called Marketing Support Services and worked her way up to a Director position in the company, a position she held ‘till leaving in 2001 to start Skyweb Technologies Ltd, an ISP company which she co-founded and still owns.

Gilda has run Skyweb Technologies Ltd for the past 9 years.  In 2005, she started Skyweb-Evans, in pursuit of a passion to develop the Call Center and Business Process Outsourcing(BPO) industry in Kenya and is now the point person for the Government of Kenya as Chairperson for the BPO/ITES Working Group.  The Group reports to the Prime Minister of Kenya.

Gilda was until recently, the Chairperson of the Kenya BPO Society which she founded.  She’s also received numerous rewards including the Africa ICT Achievers’ Award, Top ICT Business Woman, Best Entrepreneur of the Year by Computer Society of Kenya among others.

Gilda is married with two children and enjoys community service. She is a member of the Rotary Club of Milimani where she has served as a Community Service Director and Club Secretary. She is also a member of OWIT (Organisation of Women in Trade).

Gilda believes in equal opportunities for all and is passionate about empowering women.
Interview

ABS: Gilda, you’re a pioneer in the Kenya BPO(Business Process Outsourcing) industry…I imagine you encountered some major bumps in the road in a country that was not considered among the worlds traditional BPO destinations….When did you get started and what types of growing pains did you experience?

Gilda Odera: We started in August 2005. At the time, hardly anyone knew what BPO was or meant. We were using expensive satellite communication which cost us USD 5000 Per MB per month. The lines would sometimes chop and we had to call off our agents for a few minutes then resume and this was costly to us. We had to invest in training our staff for at least one month to be ready to get on the phones and that too was costly.

ABS: You’ve witnessed the evolution of the ICT Industry in Kenya over the last decade…what’s your assessment of it?  Do you think the right steps are being taken by the Government and private sector to make Kenya globally competitive?  Do you think this industry could potentially catapult Kenya into a Middle Class economy?

Gilda Odera: Kenya is no doubt leading in ICT in Africa, but we have not done a good enough job to let the world know this. Some other African countries have made more noise about their ICT “savvy” to the world but to be honest have nothing much on the ground. Kenya IS the ICT Hub in Africa.
We have seen a great evolution of the Industry over the last decade. There is a great explosion of the use of mobile phones for banking, data and so much more. Indeed, over 25 million Kenyans are using mobile phones and not just to talk.

With the three fibre optic cables that landed in Kenya recently, we can only expect the Internet costs to go down further from the USD500 Per MB it is now. This reduction is from USD 5000 one year ago so this is definitely an evolution. Internet Speeds are getting better by the month.

Yes, the Government and private sector are making Kenya globally competitive. The right policies are in place and the private sector is one of the most vibrant in Africa. I would also say it’s the most innovative and one that is most exposed to global standards of operation. I often smile when I see first time visitors to Kenya totally awed and shocked by how much there is to offer here yet they never realized this. The ICT industry will definitely catapult Kenya into a middle class economy if we continue at the current rate.

ABS: I recently attended a conference that focused on ICT in Kenya and there was a presentation by a BPO expert who discussed several BPO hot spots in the world, none of which included an African country.  What will it take for an African country to be considered a top ten outsourcing destination by the world’s leading outsourcers?  Also, which three countries in Africa do you think are the best positioned to expand their BPO sectors and make them globally competitive and why?

Gilda Odera: Kenya is now on the map, no doubt. Several renowned consulting and research firms have stated so in their most recent reports. However, we must do much more to market this country gloablly.  Kenya is now among the preferred emerging market destinations in Africa. The three countries in Africa that are best positioned to expand their BPO Sectors are Egypt who are already doing very well (I am surprised the expert you refer to did not even have Egypt- we must always be wary of who the expert is-Egypt has made a name globally), South Africa and Kenya.

Egypt has the infrastructure and numbers, so does SA which is a more developed country in Africa and Kenya now has both the infrastructure and the people.  The locations are also very suitable with Kenya being a hub for Sub-Saharan travel.  Kenya’s geographical location is perfect for both North American and European work.

ABS: How old is the BPO sector in Kenya and how has this changed with the arrival of the SEACOM and TEAMS fibre optic cables?   Are you now seeing an uptick in net revenue for local companies?

Gilda Odera: The BPO Sector is now just over 6yrs old in Kenya. The arrival of the cables is now creating excitement as more players can now join the industry. Local companies are still lacking sufficient work but things are looking up. There is a great upsurge in higher end work like software development ,animation and accounting . These are growing faster than BPO work.

ABS: Are there particular segments of the BPO sector that Kenya should focus and invest in (i.e. Data, Outcall, Incall, IT, Consulting)?

Gilda Odera: Yes!  Both BPO and KPO(Knowledge Process Outsourcing).  Incall/outcall, data, software development, animation, accounting and HR.

ABS: Which cities in Kenya do you think are best equipped to host BPO companies and how big do you think the impact could be for local citizens and the current high unemployment rates?

Gilda Odera: Nairobi, Kisumu, Eldoret, Mombasa, Machakos (there is a techno-city being built in Machakos).

ABS: When I spoke with you last, you mentioned that foreign companies were already setting up shop in the country.  Where are these multinationals coming from and do they pose a threat to Kenyan owned companies or startups?

Gilda Odera: From the US, India, UK. Most of these come here with their own work. Others may pose a threat to local owned companies but I look at it this way.  This is an opportunity for increased knowledge transfer and mergers. Local companies still have their niche.

ABS: Are there training opportunities in Kenya for individuals interested in working in the industry and are there capacity building programs for aspiring entrepreneurs interested in entering the sector for the first time?  What advice would you give to someone interested in entering the BPO sector?

Gilda Odera: Oh yes. There are training companies in Kenya. One of my companies is the Training Partner of BCI certifications in Kenya, Uganda, Tanzania, Rwanda and Nigeria.  BCI as you know is the world’s largest BPO certifications organization.

There are several initiatives for those entering the sector for the first time. For instance, the World Bank has financed a four year program to train youth in various areas and BPO is one of the areas so they are “BPO READY.”   Universities and colleges are also now offering BPO training in their institutions as well.

ABS: You are Founder and Chairperson of the Kenya BPO Society.  Can you tell us what this organization does and how the BPO sector can benefit?

Gilda Odera: I recently stepped down as Chairperson of the Kenya BPO Society.  I was appointed to Chair the BPO/ITES (Business Process Outsourcing/ Information Technology Enabled Service) Working Group in the Office of the Prime Minister. We are a Think Tank of 5 private sector people who advise, monitor and coordinate with the Government on all BPO/ITES matters.

ABS: Finally, what’s next for you?  What would you like to accomplish by the end of this year and this decade?

Gilda Odera: So much. I want to see so much happening- watch this space.

—

Gilda, thank you so much for your time.  We appreciate your openness and willingness to discuss this very important Sector and its implications for the future of Kenya.  We wish you the best of success in your role as Chair of the BPO/ITES Working Group and with your various businesses.  We’ll be watching this space, while others join what seems to be an ICT revolution in Kenya.

The officials are unhappy with the company’s attempt to clean up a recent spill of about 300 barrels of crude from an offshore platform in Southeast Akwa Ibom State. Exxon Mobil which denies the claims is being threatened with Sanctions.

Idris Musa, head of Nigeria’s oil spill response agency, said the meeting was to “call the attention of ExxonMobil, for the last time, to the need to put a stop to the incessant oil spills that we have been having within its operation area”.

“From December to date, we have had three that we can say are of concern… Some of the spills are not large but the frequency is becoming a source of concern and worry to the agency,” Musa added.

“It is the clean-up process that we are not really satisfied with and that is why we are drawing their attention to the fact that subsequently if that kind of situation occurs, they will not escape sanctions.”

“ExxonMobil needs to show more caution in terms of the management of oil spills,” Environment Minister John Odey told reporters after the meeting.

Speaking to reporters, Mr. Musa told the media that his agency had since 2006 recorded about 2,405 oil spills involving all the oil companies operating in Nigeria.

“We are concerned about the operation of ExxonMobil because once it is offshore, any spillage will, of course, affect the shorelines and it could go far beyond the area of operation,” said the minister.

ExxonMobil Safety and Environment Manager, John Etuk, admitted that although there was a spill in May, it was promptly reported to the relevant agencies.

Etuk disputed the official charge that the oil group did not carry out the clean up to specification.

“We cleaned up the environment to the agreed portion but along the line two agencies out of the four wanted it to go up the Calabar River,” Etuk said.

“ExxonMobil takes very seriously the issue of environment in its operation and would also live up to its responsibilities on the issue”, he said.

ExxonMobil has the largest stake in Nigerian Oil Fields.

The global impact of the economic downturn has sparked the need for new ways to network and do business. The conference mission also aligns with President Obama’s new National Export Initiative program, which calls for doubling exports within the next 5 years.

The conference is presented by Diversity Restoration Solutions(DRS), Inc., a Virginia-based international trade development firm along with multiple sponsors including Diaspora Interactive Media, the parent company of AfricaBusinessSource.com.  DRS is a Virginia based international trade development and cultural diversity training consulting firm specializing in linking together U.S., Africa and African Diaspora businesses and organizations with trade, commerce and cultural relationships on the African continent.   This is their second annual business conference.

The line up of speakers include a good mix of very knowledable Africa and trade experts and high ranking officials in the Obama administration and African Union.  Keynotes include The Hon. Florizelle Liser, Assistant U.S. Trade Representative for Africa, Her Excellency Amina Salum Ali, African Union Mission Ambassador to the United States,  Anthony Newton, Bureau of African Affairs-U.S. Dept. of State, Watchen Harris Bruce, Vice President, PNC Bank, Janee Louis-Pierre, U.S. Export Assistance Center, Mauricio Vera, Director, USAID Office of Small and Disadvantage Business Utilization and Dr. Gail Kettlewell, George Mason University, International Community College Project, Sierra Leone.

Professionals across the business spectrum - manufacturing, financial investment, agriculture, fisheries, professional services, textiles and fashions - from both the U.S. and Africa who are seeking new opportunities have registered as participants for the three day conference.

African embassy trade representatives from Ghana, Malawi, The Gambia and other countries will participate. College students with an interest in international affairs have been invited to attend a special Foreign Service careers forum.

“What we do is unique in the United States,” said Eric Sheppard, President of Diversity Restorations, “Other conferences focus on large corporations already doing business internationally. We focus on helping small and minority businesses to restore trade and cultural relationships with Africa. ”

Traditionally, these types of conferences have priced out small business owners by charging exorbitant attendance fees.  This is the second year this conference has been put together, opening the doors to business owners and entreprenuers with interests in expanding into some of the worlds fastest growing markets.  The conference which runs from June22-24, is a great opportunity for small business owners to discover new opportunities in new markets as well as find out how to position themselves as an export ready business.  For more information, visit their website.

Kenya’s economy is recovering steadily and is forecast to grow at 4.0 percent in 2010, according to the Kenya Economic Update, a biannual report that can be accessed on the World Bank Kenya website. The East African country even has the potential to improve further to 4.9 percent in 2011, if no shocks occur.

The Kenya Economic Update describes the Kenyan economy as “running on one engine” since growth is imbalanced, predominantly driven by domestic consumption fuelled by imports. Exports, it explains, are weak — shrinking from 40 percent of total output in the 1960s to 26 percent in 2009 — due to the underperformance of the agriculture and manufacturing sectors. This import-led growth has also created a large current account deficit.

On the „Kenya Can End Poverty‟ blog, Wolfgang Fengler, Lead Economic Specialist for Kenya, discusses strategic ways to improve Kenya‟s exports. The specialist points out that exports will only increase if the infrastructure deficit is improved, specifically the port of Mombasa. “Mombasa is the most important single piece of infrastructure in East Africa, and it remains a key bottleneck for trade,” said Fengler.

With this in mind, the latest edition of the Kenya Economic Update pays special attention to the port of Mombasa, Kenya‟s most concentrated infrastructure asset. Despite recent improvements, port reforms have not kept up with the momentum witnessed in other countries. Singapore, the busiest port in the world, ships 50 times more goods than Mombasa. It also takes on average 20 days for a container to reach Nairobi after arriving at the port.

The Kenya Economic Update is produced twice a year (June and December), and aims to inform and stimulate debate on topical policy issues to improve Kenya‟s economic management. Periodic updates can be found on the World Bank Africa Region‟s Twitter Feed.

The three-day event dubbed GBASE 2010, will bring stakeholders, policy makers and business leaders from all over the world for discussions on shaping the future of sustainable business on the continent.

The Summit will provide business leaders at all levels with insight on developing and enhancing profitable and sustainable business enterprises and practices.

Successful peers and experts in the field will speak on the many current and future green and sustainable opportunities for businesses in Africa while improving their bottom line. Visit their website for more information.

 Pretty much anyone who used the Internet regularly knew that reliance on satellite connectivity was the cause of high prices for internet access and telephony for countries relying either exclusively or mainly on satellite connectivity. On average, accessing the Internet cost Africans 50-100 times more than what it cost consumers in Europe, Asia and North America. What wasn’t as widely known was that local (in-country) connectivity was as expensive if not more expensive than international connectivity over satellite in most countries. If you have tried renting a “leased line” or dedicated circuit in-country in Africa then you know that the prices were astronomical and dependent on distance from the capital city. The intra-country connectivity is important because connecting to the internet or making international phone calls involves three important network elements: the connection from the user to the local service provider’s node or office (the “local loop” or “last mile”), the national or regional high speed backbone that aggregates traffic from all the providers and users and the international link which connects to the outside world.

The situation has changed quite dramatically in the last one to three years. First off, the east coast of Africa now boasts three, yes three cables (Seacom, EASSY and TEAMS) in just 12 months! The West African coast that has long had the SAT3 cable, infamous for its sky high prices, now has another four cables in the process of being laid or activated (MainOne, GLO1, ACE and WACS). Most of these new cables will be active in 2011. The excitement in East Africa with the landing of these fiber cables a few months ago was incredible. Telecom companies involved in the fiber roll out were promising “affordable” high speed bandwidth with prices pegged to drop by 90%. The East African operators, governments and the international development funding agencies vowed that the new cables would not go the way of the monopolistic SAT3 cable with its super expensive prices. Optimism was high, the Promised Land had arrived. Local telecommunication companies and governments have been investing heavily in in-country fiber network backbones; the latter with soft Chinese money. Most African countries now boast of a fiber backbone network or one on the way in a year or so. Despite all the initial excitement that greeted the landing or announcement of new cables and backbone networks in Africa, disappointment is setting in. Prices for Internet access have gone down by a factor of 2 rather than 10 as expected. Indeed prices are still high in most of Africa outside a few North Africa countries and others like Senegal. South Africa is a most puzzling case where prices are still higher than even East Africa with its new found fiber. 

So with most African countries now boasting of fiber in the backbone and fiber available on all the African coasts, why are prices still high? Why do countries like South Africa and Namibia with world class intra-country fiber networks and good external connectivity (at least for South Africa) still have some of the highest connectivity costs in Africa? Why has all the fanfare and promises of low connectivity costs in East Africa not materialized with two fiber cables already operational and a third on the way?

The main reason advanced by most operators is that fiber investment costs are very high and prices have to be high in order to recoup their investments. This is the reason given by East African operators in places like Kenya and the SAT3 operators in West Africa. Others point to a high demand-low supply as the cause.  In other places, like South Africa and Namibia, prices are high simply because of a monopoly or duopoly. Further examination reveals at least two other reasons for these high prices: the largest fiber owners in-country, have until recently, not been allowed to sell or provide services and most importantly, African service providers are still beset with archaic business models and anti-customer mindset! Let’s examine these two factors in some detail.

As we saw above, intra-country connectivity costs are high and contribute to the overall high cost of Internet access. With fiber now available in-country in many countries, one should expect that prices would come down. The problem is that those with the largest amount of fiber are not allowed to sell or offer services! You may not know but the largest fiber base in most African countries is held by the electricity companies and in some cases by oil and gas pipeline companies or rail and train operators. These companies need and laid fiber for monitoring and control of their networks. Until very recently, these electricity companies (dubbed “alternative infrastructure providers”) were not allowed to sell, lease or operate services on their existing fiber in many countries by the telecommunications regulators. The situation is changing, rapidly in some cases, with electricity companies in Uganda, Kenya, Zambia and other countries now allowed to sell their existing fiber capacity mainly to telecommunications companies. The second National Operator in South Africa benefited from purchasing and acquiring fiber from these alternative infrastructure operators. As this fairly large fiber capacity has been brought into play, intra-country capacity has been greatly boosted and prices have come down. African governments and regulators need to keep up with this deregulation trend and allow all the existing fiber in the hands of non-telecommunication entities to be made available for telecommunications services. Aside from making more capacity available, this new fiber also increases competition thus further lowering prices.

The second factor which I consider to be even more important is what I refer to as an archaic business model and business mindset. Telecommunication companies such as Internet Service Providers (ISPs) in Africa overwhelmingly rely on a small base of customers that they charge high prices. These customers (banks, large companies, multi-nationals, -collectively dubbed the “corporates,” large educational institutions, government agencies, development agencies and NGOs and a tiny number of high net worth individuals) need connectivity and are willing to pay these high prices.  This mindset still pervades the ISPs and thats why prices are still high as they “need to recoup their investments” from a small customer base. But this business model is flawed: there are millions of individual customers and small business that also need connectivity but cannot afford to pay the current high prices. The success of mobile phone companies has taught us (and any ISP that is awake) that communication services are not the preserve of the rich and powerful. Unfortunately, the typical African ISP is unable to shift to a “large customer base, low margins” business model: drop the prices and attract a lot more customers. This is the main cause of recurring high prices. Fortunately for the consumer, the mobile phone companies with their understanding and masterly of the large-customer-base-low-margins business are getting into the act. These mobile phone companies understand that there is a killing to be made in providing data and internet services. They are investing in fiber networks, purchasing most of the available capacity from alternative infrastructure providers like electricity companies and they have a tried and test last mile solution. By overlaying their 3G networks with fiber networks, they are capable of providing decent connectivity services at an affordable price. The traditional ISPs and telecommunication companies in Africa are in for a rude shock if they stick to their existing business models. I would dare say that they will soon be extinct. And that’s a good thing too for they surely deserve what is coming to them! And we the customers can take solace from the fact that we have cheaper internet connectivity coming to us soon. Now African governments and regulators only have to ensure that the mobile phone companies do not become new monopolies and forget the lessons learned on their meteoritic rise.

A non-profit organization known as DotConnectAfrica is going to hold responsibility for overseeing the operation and management of the “.africa” domain registry, and some employees are hopeful that this new option will provide a much needed boost to a variety of African businesses. In some cases, it is believed that this action might help struggling businesses or organizations to cement their identities and improve their operations overall.

It is anticipated that the new domain name will become available sometime in 2011. Organizers whole-heartedly believe that there are going to be a great deal of customers who are interested in buying a domain name that includes “.africa”. In fact, some experts believe that the new domain option will encourage greater participation on the internet, which should in turn increase profits for the DotConnectAfrica organization.

Previous reports have indicated that any increases in profits that are realized by the organization will be reinvested in a variety of different projects that would ultimately provide benefits to all African citizens. While unrest and corruption tend to muddy the waters throughout different regions in Africa, this type of positive news is encouraging to many.

A possible drawback to these grand plans includes the fact that specialized domain names tend to cost quite a bit more than the more traditional ones. Some critics believe that even if there are a number of Africans who would like to purchase a “.africa” domain name, many of them may not be able to afford it, and might simply view the option as a luxury that they cannot realistically afford.

The DotConnectAfrica organization is hoping to come up with some plans that will offset this possibility. For example, they are currently considering making some second level names available in order to make at least a portion of the new names more affordable. They are also hoping to fund an advertising campaign that will help to promote the African identity to citizens who might be a bit reluctant to spend the money on one of the new domain names.

The implementation plan for the “.africa” domain should be able to move forward without incident, as it has already been approved by the leaders of the African Union. With some strong organization and the funding to back the launch of the project, officials see no reason why this particular new domain name shouldn’t be a success.

This may be especially true if a variety of businesses, organizations, and individuals get behind the adoption of the “.africa” domain name. If all goes as officials are planning, the new option in internet domain names could prove to be a profitable and beneficial addition for many people.