In the latest edition of Communications Africa Magazine, the technical and commercial benefits of geostationary communications satellites are assessed, contrasting them to both the failed high profile experimental satellite technologies of the previous decade, as well as to other communications technologies in Africa, notably fibre, as it arrives on the continent’s shores in abundance. In particular profiling the New Dawn satellite.

See attached article

On 15 July 2010, Nippon Telegraph and Telephone Corporation (“NTT”) Dimension Data Holdings plc (“Dimension Data” or “DiData”) announced that they have reached agreement on the terms of a cash offer to be made by NTT for 100% of Dimension Data. The offer, totalling approximately GBP 2.1 billion (R24.4 billion), was unanimously recommended by both Boards of Directors.

NTT, one of the largest global telecommunications service providers in the world, has limited presence in certain emerging markets where Dimension Data is very strong, specifically Africa and the Middle East. The transaction is a huge vote of confidence in DiData, South African and Africa, and the rationale of both parties is to capitalise on the significant growth opportunities that are unfolding.

Andile Ngcaba, Chairman of Dimension Data’s Middle East and Africa business (“DDMEA”), as well as of its minority shareholder Convergence Partners, is excited about the deal and how its positions DiData in this region. “With access to the resources, products and R&D of the NTT Group, DDMEA is better positioned than ever to grow its presence and capitalise on new and fast growing market opportunities, such as cloud computing. The deal is great for the country and the company”.

See attached press release

Convergence Partners recently visited Washington, DC and had the opportunity to spend time with New Dawn joint venture partner, Intelsat, and to see the New Dawn craft in advanced stages of construction, at the premises of craft manufacturer, Orbital Sciences Corporation. David Frankel of Altirah Capital, partner in the New Dawn venture, joined Convergence Partners’ Chairman, Andile Ngcaba, and Executive, Idan Segal.

New Dawn is a joint venture between Intelsat, the global leader in fixed satellite services, and an African consortium led by Convergence Partners, to create a new geostationary communications satellite for Africa. This first of its kind venture has a 25% African shareholding and is more than 90% financed by African institutions, including Nedbank, The African Development Bank and the Industrial Development Corporation.

The satellite is due for completion during Q4 2010, at which time it will be delivered to the launch site in French Guiana. Launch is scheduled for Q1 2011, whereafter the satellite will commence operating, providing much needed capacity for the African telecommunications and broadcasting sectors.

After the tour, Andile Ngcaba, said “it is both fascinating and very rewarding to see the physical New Dawn craft, after so many years of conceptualising and planning. I have no doubt it will make a difference to the continuing African growth story”.

See attached photographs of the New Dawn satellite in construction

Having attended the Mobile World Congress, the largest global telecoms conference (attended by 49,000 visitors from 200 countries) in Barcelona this year, the following 10 key trends and developments came to the fore.

The 10 major developments at MWC were:

1. Groupe Speciale Mobile Association (“GSMA”) and about 15 major operators have signed up to create an application planet where there will be a common platform that will allow application developers in the Symbian world to operate across networks and geographies (i.e. a challenge to Apple’s dominance in the apps space);
2. The affordability of smartphones are becoming a reality, with estimates that by 2015 approximately 50% of mobile phones will be smartphones. This will require larger amounts of backhaul bandwidth for the mobile networks. Once smart phones reach 70% of the market, they will be the single largest access device to the internet;
3. Mobile operators see device-to-device connectivity as the next revenue opportunity in the mobile space. These data flows are viewed as a mechanism to bolster declining voice ARPUs;
4. Green technology, especially in the data centre environment and the growth of cloud computing, is a major trend that will accelerate in the coming years;
5. The growth of smart devices on one side and sophisticated cloud computing on the other will drive growth in “intelligent pipes” in between them. This reinforces the case for increased access to fibre optic networks;
6. Here is a thought, as you go to a restaurant to have coffee or food when you pay with your credit card and you are given a receipt. Use your smartphone with high-resolution camera to take a photo of the receipt and store it or send it to your private data vault. Intelligent systems in the cloud will then collate and reconcile receipts and expense claims automatically.
7. In my view LTE is 3+ years away. No handsets are widely available. While people are talking about LTE trials, large scale deployments are still some way off, however, the hype is here. This is another reason why we need backhaul bandwidth now so that when LTE is implemented there are enough pipes to support this infrastructure;
8. Africa will continue to use mobile devices as the primary means to access the cloud;
9. Africa must develop its own applications that are specific to Africa’s needs. Including its own social network platforms that will address Africa’s unique lifestyles;
10. In conclusion, the communications ecosystem is evolving, but it is not clear which organisations will be absorbed by black holes or collide with each other to create new planets in our ecosystem. The ICT ecosystem at one level and the DNA of organisations and companies at another, will fundamentally change in the next ten years.

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