JOHANNESBURG, South Africa-The Regional African Satellite Communications Organization project to build a dedicated satellite system for Africa is close to becoming a reality. The first of the system’s two satellites is scheduled to be launched in fourth-quarter 2002, according to news released at the recent Satcom Africa ’99 conference held in Midrand, South Africa.
The scheduled launch has become possible through RASCOM’s recent partnership with Alcatel, which was awarded the contract for the RASCOM-Build Operate Transfer project. BOT has the mission of designing, financing, launching and operating the RASCOM satellites. After a determined period of time, Alcatel will transfer BOT ownership to RASCOM.
The total project cost of $500 million includes two satellites, a pilot project, and the design and development of rural terminals. Alcatel and its future partners in the BOT are solely responsible for securing the necessary financing-70 percent debt and 30 percent equity. Vendor financing will be used when available.
African investors are being encouraged to become direct investors in the project through BOT partnership or through a Special Purpose Vehicle. The SPV’s function is to raise funds from African investors. Financial analysts anticipate the internal rate of return on the investment would be higher than 30 percent.
According to the schedule, the first satellite will be launched at the end of 2002, with the second following within three years.
The two geostationary satellites will cover the entire African continent with multiple spot beams in the Ku band and a single spot beam for the C and C-extended bands. The satellites are based on an Alcatel SPACEBUS 3000 B3 platform. The ground segment will include gateways for access to existing telecommunications networks. Low-cost terminals will offer end users access to integrated telephony services.
Background
At the Fourth Interim Assembly of Parties of RASCOM held in May 1997 in South Africa, then South African Minister for Posts, Telecommunications and Broadcasting Jay Naidoo said, “Through RASCOM, the whole of Africa can catapult into the next century by setting into place an information backbone which lets people communicate.”
RASCOM itself is the outcome of a feasibility study between 1987 and 1991 presented to African telecommunications ministers in Abuja, Nigeria, in February 1991. The study illustrated the need for a dedicated satellite, meeting certain well-defined specifications, as the best choice of technology to meet the long-term communications requirements of African countries.
The system, according to the study results, would enable establishing terrestrial stations with diverse applications in rural areas and encourage exchange of television and radio programming among African countries. It also would be economically and financially viable if designed and managed on the African continental level with the minimum identified demand. The objective of the project, therefore, is to provide cheap, rural telecommunications on a large scale and to develop all inter-urban links with the interior of each African country as the main priority.
The final report was adopted by the ministers in May 1992 at their meeting in Abidjan, Ivory Coast, and RASCOM was born.
Gounde Desire Adadja, RASCOM’s director general, in 1997 said, “The situation of telecommunications in Africa remains shockingly at an embryonic state at the era of `information highways.’ Less than 1 main line per 100 inhabitants on average (less than 0.5 per 100 in sub-Saharan Africa) against over 50 per 100 in North America or 44 per 100 in Western Europe (International Telecommunication Union figures).
“On average the penetration in rural areas is 0.06 per 100 (RASCOM figures), and there are very few direct links between African countries, giving rise to transit costs of several hundreds of millions of U.S. dollars.”
The RASCOM satellite project would provide large-scale, low-cost service to rural areas and large-scale development of ground terminals, as well as provide a way for development of national services.
The terrestrial part of the RASCOM network would involve acquiring and installing over a seven-year period very small aperture terminals and telephone booths in each village of African nations, as well as other terminals using combined technologies, including VSAT and wireless local loop. More than 500,000 ground terminals are expected to be deployed during this period. Basic, multimedia and WLL terminals are planned.
The system’s benefits would include low-cost rural terminals-$1,400 maximum with two subscriber lines, meaning $700 per line-and airtime costs starting at only $0.10 per minute because of the Demand Assignment Multiple Access technology to be used. DAMA technology optimizes the space capacity use so trunking is performed through a shared pool of circuits and channels used when and where needed.
The system would be tailored to the specific needs identified by the African countries themselves. RASCOM is envisioned to provide universal, cheap, direct links among all African countries, cut transit costs and provide low-cost national TV and radio coverage in each African country, as well as easy exchange of programs. It would also encourage rapid development and wide use of services such as VSATs and Internet in all African countries, say advocates.
National telecommunications operators could develop a sizable national traffic base and depend less on international traffic for their incomes. It also would facilitate establishing industrial plants for manufacturing or assembling telecom equipment adapted to operational conditions in Africa.
“No wonder it appears day after day as the most appropriate, sustainable and affordable solution to effectively address African telecommunication requirements,” said Adaja at Satcom Africa ’99.
