Ministry of Communications and Transport, 2009 1

Transcription

Ministry of Communications and Transport, 2009 1
© Ministry of Communications and Transport, 2009
1
Foreword by the Ministry of Communications and
Transport
Welcome to this report produced for the CTO Conference on ‘Connecting Rural Communities’
taking place in our tourist capital, Livingstone, in August 2009. If you are a visitor to the
conference then welcome to Zambia. We trust you will enjoy our Zambian hospitality, the
beautiful scenery, and the stimulus and challenges that the conference will present.
We want to use this opportunity, as the host country, to highlight some of our own work in
bringing improved connectivity to rural areas. We recognise the many challenges involved, and
by sharing those challenges with the conference delegates we hope that we can jointly move
forward to improve the lives of our rural populations through the education, health, agricultural,
democratic, eGovernment and wider information that can nowadays be so effectively delivered
via the internet and modern media, as well as sharing in the economic benefits derived from the
rapidly increasing access to mobile phones. We also want to share some of our successes, and
look forward to learning from others in due course.
I am pleased that we are now implementing our own Universal Access Fund, but there is much
yet to do, and we welcome also the opportunity to work with new investment and cooperating
partners in bringing better connectivity to Zambia’s rural areas.
Hon. Prof. Geoffrey Lungwangwa, (PhD), MP
Minister of Communications and Transport
Lusaka
August 2009
For an online version of this report, and full details of the conference, see www.cto2009.org.zm
Any correspondence to [email protected]
© Ministry of Communications and Transport, 2009
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Table of Contents
Foreword by the Ministry of Communications and Transport...........................................................................2
Geography ...................................................................................................................................................4
Economic situation.......................................................................................................................................4
History of Telecommunications in Zambia .......................................................................................................5
Voice - Fixed................................................................................................................................................5
Voice - Mobile ..............................................................................................................................................6
Internet.........................................................................................................................................................9
Backbone infrastructures ...........................................................................................................................12
Progress Timeline......................................................................................................................................16
Radio and Television .................................................................................................................................16
The Legal and Regulatory Situation...............................................................................................................18
The Challenge of Rural Telecommunications ................................................................................................19
Some Notable Projects Tackling Rural Connectivity and Information Provision ............................................21
LinkNet (www.link.net.zm) .........................................................................................................................21
ConnectAfrica (www.connectafrica.net).....................................................................................................22
AfriConnect’s Connectivity in Namwala (www.namwala.com) ...................................................................22
ZNFU Commodity Price System (www.farmprices.co.zm).........................................................................23
AfriConnect iSchool Project (www.ischool.zm) ..........................................................................................23
Ministry of Health (www.moh.gov.zm)........................................................................................................24
CDC Patient Smart-card system ................................................................................................................24
AfriConnect iHealth Service (www.ihealth.zm)...........................................................................................24
Ministry of Education Schools Broadcast and Associated Services / Equip2.............................................24
World Vision (www.worldvision.org/about_us.nsf/child/aboutus_zambia?Open) .......................................25
Individual Hospitals and Missions ..............................................................................................................25
Celpay / Post Offices .................................................................................................................................25
Chinyunyu Rural Telecentre Project (www.unido.org/index.php?id=6406) ................................................25
Electoral Commission (www.elections.org.zm) ..........................................................................................25
Virtual Doctor Project (www.virtualdoctors.org) .........................................................................................25
Rural Telecentres ......................................................................................................................................25
Camfed Rural Training Centre ...................................................................................................................25
Public / Community Payphones .................................................................................................................26
Mobile Payment Systems ..........................................................................................................................26
Commercial Connectivity ...........................................................................................................................26
E-post (http://www.epost.com.zm/) ............................................................................................................26
Local ISPs in Zambia.................................................................................................................................26
Agritrade (www.agritrade.co.zm) ...............................................................................................................26
Future developments .....................................................................................................................................27
Investment / Partnership Opportunities for Development of Rural Communications .....................................29
Conclusion .....................................................................................................................................................29
Appendices ....................................................................................................................................................30
Zambia‘s General ICT Indicators ...............................................................................................................30
Further Details of Existing Rural Connectivity Projects. .............................................................................31
Connect Africa .......................................................................................................................................31
LinkNet/MachaWorks.............................................................................................................................33
Bringing rural connectivity by VSAT.......................................................................................................34
AfriConnect Zambia: Progress Towards Wider Internet Access ............................................................36
Glossary of Terms Used ................................................................................................................................38
© Ministry of Communications and Transport, 2009
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About Zambia
Geography
Zambia covers an area of some 750,000 sq km (the size of France and the UK combined) and
for the most part enjoys being on an elevated position on the central African plateau, providing it
with a very pleasant climate, with just one rainy season (from November to April). It is
landlocked and bounded by 8 neighbouring countries.
The total population is around 11.8m, with, for Africa, a relatively high urban populace: almost
40% of the total, with a good proportion of those living along the so-called ‘line of rail’ – a band
stretching from Livingstone in the south, via the capital Lusaka, to the mineral producing regions
of the Copperbelt further north.
The country, which gained its independence in 1964, remains stable and peaceful, with multiparty democracy having been reintroduced in 1991, following the initial presidency of Dr
Kenneth Kaunda. The current Government, formed by the majority Movement for Multiparty
Democracy (MMD), has remained in power for some 18 years, with elections next due in 2011.
His Excellency, President Rupiah Banda, was elected to power following the untimely death of
the late Levy Mwanawasa in 2008.
The official language of the country is English, but there are 7 other major languages spoken
and many dialects. 50% of the population is aged 15 or below, and the adult literacy rate is
around 70%.
Economic situation
Since independence Zambia has remained largely dependent upon copper for its generation of
export earning, and mining underpins the economy. Up to 80% of earnings have come from
copper, and although this is slowly reducing it remains a key factor in the country’s
development.
Since economic liberalisation in the 90’s the mines have moved out of state control and there
has been considerable investment both in mining new deposits and extracting more from
existing ones. This appeared to be paying dividends as the price of copper moved to an all-time
high in 2008, with the government enjoying the consequent rise in revenues. However, the
current world recession has led to a rapid decline in the demand for copper (used in the
automobile and electronics sectors) and a consequent price reduction. The currency (the
Zambian Kwacha, which is freely exchangeable) devalued by some 65% as a consequence.
However, there are now signs of an upturn in prices, and optimism remains.
There has been significant investment in the country in recent years, as witnessed by the major
building programmes going on. Zambia is a popular tourist destination, with the Victoria Falls
and the game parks as major attractions, with room still for further development. Zambian
farming land is fertile and there are major water resources around the country (the Congo,
Zambezi, Kafue and Luangwa rivers all rise in the country) and investment in agriculture is being
promoted (only 15% of the country’s 60m hectares of arable land is under cultivation).
All the country’s electricity is hydro generated, with the major dams at Kariba and Kafue Gorge
being augmented by the falls in Livingstone and smaller locations further north. Since up to 70%
of electric power is consumed in the copper mines as the nation expands there is need for
© Ministry of Communications and Transport, 2009
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further electrification (for example, some two thirds of primary schools – mostly in rural areas have no power) and the Government has established a rural electrification authority.
However, although there has been an upturn in the economy over the last few years – GDP per
capita has risen from $350 to $700pa over the last 7 years (with real GDP growth from 2003 to
2008 averaging 5.3% pa and inflation largely being held in single figures) – the country remains
poor. It lies 163rd out of 179 in the UN human development index, and life expectancy at birth is
around 38 years. HIV/AIDS remains a major problem, despite the now widespread availability of
ARVs. The majority of development is taking place in towns and cities, and the migration to
urban areas continues. 68% of Zambians live below the recognised poverty line – that figure
rising to 78% in rural areas.
Tackling rural poverty and underdevelopment remains a key economic and political issue, with
much scope for investment.
History of Telecommunications in Zambia
Voice - Fixed
The first manual phone exchange in Zambia, then Northern Rhodesia, was installed in
Livingstone as long ago as 1913. The network continued to develop, with the main backbone
infrastructure along the line of rail, as seen from the following map.
There were always challenges in serving the more rural areas, not least with undercapitalisation, ageing equipment (for which spares are hard to source), theft, and populations
that made for poor business models, leaving services, despite the good efforts of the authorities,
skewed to the urban areas:
DISTRIBUTION OF FIXED LINES PER PROVINCE
46%
32%
7%
Lu
sa
ka
Co
e
pp
rb
elt
S
t
ou
he
rn
4%
Ce
n tr
3%
al
No
r th
er
3%
n
Ea
s te
2%
rn
W
es
te r
2%
n
Lu
ap
2%
u la
No
r th
W
t er
es
n
In common with most countries Zambia’s post and telecommunications authority (the PTC) split
some 15 years ago, with the formation of Zamtel and Zampost, both remaining in State hands to
the current time. And also in common with elsewhere the infrastructure of the conventional
© Ministry of Communications and Transport, 2009
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PSTN, particularly the copper cabling and older exchanges in rural areas, has led to a decline in
the levels of service and the actual number of lines supported, further aggravated by the
introduction and expansion of the cellular phone service.
Zamtel’s PSTN Customer Base
The total number of exchanges currently in operation is 88 with an installed capacity of 162,500
lines. Of this capacity only 90,600 are working as at July 2009 representing a utilisation
capacity of 56%. It is also noted that in a number of rural areas the PSTN exchanges have to
be powered by their own generators on a 24/7 basis, giving rise to uneconomically high costs on
a per capita basis.
Zamtel also has a significant backbone infrastructure - currently dominated by national
microwave capacity – but now being expanded with the introduction of fibre capacity on the
main north-south routes, and through to Tanzania. Further details are below.
The Government has declared its intention to privatise Zamtel during the current financial year
and an external adviser has already drawn up a valuation and recommendations for the sale.
Zamtel also operates GSM services (CellZ) and an ISP (Zamtel Online), currently within the one
company.
Voice - Mobile
As in many countries in the region the rise of mobile cellular telephony over the last 12 or more
years has been dramatic. The country has moved from a position where less than 5% of the
population would be likely to use a phone in their lifetime to one where almost 50% of the adult
population own a phone, and some 80% of the population is already covered by at least one of
the 3 mobile operators. The rise, even over the last 5 years, has been spectacular:
Year
Subscribers
Per 100 Inhabitants
Growth Rate (%)
2003
204,150
1.9
46.6
2004
413,120
3.73
102.4
2005
949,558
8.3
129.85
2006
1,663,051
14.37
75.14
2007
2,639,026
22.54
58.7
2008
3,539,003
26.95
34.06
2009 (til 31/3)
3,646,909
29.89
© Ministry of Communications and Transport, 2009
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A number of subscribers have more than one SIM card, so the above figures can be slightly
misleading but the distribution amongst the 3 players indicates that they will not be far wrong:
Zain Zambia: over 2.6m subscribers (across all 72 Districts)
MTN Zambia: over 800,000 subscribers (across 67 Districts)
CellZ: over 170,000 subscribers (across 44 Districts)
Maps of the coverage show that all 72 districts have signal in at least the district capital, with
only deep rural areas still to be reached.
© Ministry of Communications and Transport, 2009
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Zain Current GSM Coverage
MTN Current GSM Coverage
CellZ Current and Planned GSM Coverage
Whilst CellZ started offering analogue services, and MTN (formerly Telecel) offered CDMA, all
now operate GSM networks.
© Ministry of Communications and Transport, 2009
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Average Revenue Per User (ARPU) for the three mobile network operators in 2008 were as
follows:
Service Provider
ARPU on air time per year
Zain Zambia
MTN Zambia
Zamtel/Cell Z
US$ 87.15
US$ 61.77
US$ 40.91
ARPU on air time per
month
US$ 7.26
US$ 5.15
US$ 3.41
Some 99.6% of customers operate phones on a pre-paid basis. All networks offer the facility to
transfer pre-paid talk-time to the phone of another customer on that network, such as a relative
in the village.
In addition to the standard GSM, Zain operates GPRS data services across its whole network,
and EDGE in Lusaka and the Copperbelt, which is gradually to be replaced with 3.5G, whose
roll-out is currently in the test phase, under a temporary licence from CAZ. MTN also offer
GPRS/EDGE and have their 3G roll-out planned
Value added services on all networks include SMS, MMS and WAP. Zain also support use of
Blackberry devices.
There remain areas that are not covered by either PSTN or cellphone services. The
Communications Authority, under their universal access scheme, are reviewing incentives that
could be offered to the existing GSM companies to expand their reach to the less profitable
regions. In addition some projects have arisen which provide voice access to some locations
using satellite-based technologies. Further details are found below.
The majority of in-country backhauling on the GSM networks is now done terrestrially via
microwave links, and the use of VSAT for in-country traffic is disappearing. All operators also
share some backbone infrastructure from Zamtel and ZESCO (the power company, which has
its own communications backbone, as below).
At this point in time Zamtel holds a monopoly on international voice traffic, and the two other
cellphone companies have to transit their international calls via Zamtel, keeping prices higher
than might prevail in a competitive environment (a call from Zambia to the UK costing some
$1.50 per minute via the cellular operators). The Government has committed to liberalising the
international gateway during the current financial year. The cellphone companies have long
been ready with the appropriate infrastructure.
Note that costs of calls are held high partly by the fact that all international traffic currently has to
be transited by satellite, as there are no long-distance terrestrial links out of the country, not
least because of the Zambia’s landlocked position. However, this is also changing, and routes
are currently being opened up by fibre to South Africa (via Namibia or Botswana) and thus out to
the west and east coast submarine cables. Costs and reliability are still to be determined for the
longer term.
Internet
Experimentation (focussed around the University of Zambia and the NGO community) had
begun in Zambia by 1991 with dial-up store-and-forward email services, and shortly afterwards
by experimentation with low-earth orbiting satellite technology.
However, a significant step forward was made in 1993 when the Government liberalised the
communications sector and allowed the formation of ISPs who could operate their own
gateways. In 1994, following small grant funding from the World Bank, the University spun-off
the first ISP, ZamNet, as a campus company, 100% owned by the University. This became one
of the first ISPs in SSA, outside South Africa and allowed early development in the sector. Its
leased line link to Cape Town soon proved too slow, and was replaced with early VSAT usage.
A range of ISPs emerged, largely based around dial-up (/WLL) technology, with WiFi
technologies introduced in the late 1990s, and, in due course, WiMAX emerging in 2005 as a
technology able to deliver broadband speeds and introduce 24/7 access. A healthy range of
ISPs now exist, with a large number of dial-up and WiFi clients still in place, but being gradually
replaced by WiMAX, GPRS, 3.5G, CDMA and alternative services. GPRS connectivity (at slow
speeds in many cases) operates wherever there is mobile coverage. 3.5G/EDGE in Lusaka and
the major Copperbelt towns; and WiMAX in all 9 Provincial capitals and other major towns. An
© Ministry of Communications and Transport, 2009
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increasing number of users gain their access to the internet either via WiFi hotspots or internet
cafes.
The following table indicates growth in the internet sector:
Year
Subscribers
Per 100
Annual Growth
Inhabitants
Rate (%)
Dial up
Broadband
2003
10,857
1,143
0.11
3
2004
15,334
954
0.15
36
2005
10,179
703
0.095
-33
2006
10, 067
1,929
0.104
10
2007
12,578
5,368
0.153
49.6
2008
12,586
5,703
0.152
1.9
However, reliable information on actual numbers of people using the internet is hard to estimate,
as in the above table one subscriber may be a dial-up user on a single PC (with a bandwidth of
14k) or may be a corporate entity with 200 computers scattered across 6 locations (with
dedicated bandwidth to Europe of 2Mbps).
Costs of operation of Internet services remains high, as all international traffic has had to be
transited by satellite, with most ISPs paying upwards of $3,000 per simplex megabit per second
per month for access to circuits to Europe. The cost of services, particularly broadband, is thus
high, and last mile delivery cannot be via conventional ADSL style services due to the poor
quality of the PSTN copper infrastructure, thus adding expensive wireless equipment costs to
those of international bandwidth.
However, whilst there are many challenges, more of which are highlighted below, usage of the
internet is now becoming widespread in the country. The number of registered domain names is
increasing rapidly, indicating a greater awareness of the need for an internet ‘identity’ and a
corresponding web presence in order to compete in an effective manner. With the coming of
lower-cost bandwidth over the next few years, and with increased training, awareness and
sensitisation, it is likely that the country will see the kinds of exponential growth seen elsewhere
in the world and will be able to compete on a more level playing field with those elsewhere.
Year
2004
2005
2006
2007
2008
Bandwidth Usage
Outgoing (Mbps)
Incoming (Mbps)
8.76
20.316
10.096
24.408
34.79
79.884
46.478
119.96
48.834
197.523
The above figures do not take into account the number of direct VSAT links that provide the only
form of internet access, particularly in rural areas. There are significant numbers of both higherbandwidth/mission-critical C-band and lower-cost Ku-band services being installed and operated
in a range of facilities including schools, colleges, hospitals, NGOs, government offices,
missions, tourist facilities, transport companies and others.
© Ministry of Communications and Transport, 2009
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S/N
1
2.
3.
4.
5.
6.
Year
2004
2005
2006
2007
2008
2009
No. of VSATs licensed
9
24
23
103
11
24
Note that, because of the Government monopoly on international voice traffic, that ISPs are not
allowed to transit VoIP or voice-based services, although an upcoming change in legislation is
likely to transform this.
Current WiMAX Coverage
© Ministry of Communications and Transport, 2009
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Matrix of Coverage for ISPs
Town
Province
UUNet
AfriConnect
ZamNet
Quick
Edge
Lusaka (P)
Ndola (P)
Kitwe (D)
Lusaka
x
x
x
x
Copperbelt
x
x
x
x
Copperbelt
x
x
X
Kabwe (P)
Central
x
Livingstone (P)
Southern
Luanshya (D)
Copperbelt
Chipata (P)
Eastern
Lubwe (D)
Luapula
Mongu (P)
Western
x
x
Mansa (P)
Luapula
x
x
Choma (D)
Southern
Kafue (D)
Lusaka
Solwezi (P)
N/Western
Kasama (P)
Northern
Mazabuka (D)
Southern
Chingola (D)
Copperbelt
Mufulira (D)
Copperbelt
Chililabombwe
(D)
Copperbelt
Namwala (D)
Southern
Key
x
x
x
Zamtel
Online
Coppe
rnet
x
×
x
Microlink
x
x
x
×
x
x
x
Realtime
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x ISP Present
P=Provincial Capital
D=District Capital
Backbone infrastructures
To date ISPs have used satellite connections as their only means of external communications.
Because of the low-availability and high cost of quality terrestrial-based links within the country,
even operations in POPs outside the capital have been provided over separate satellite links,
and thus data traffic from one location to another has been via a double satellite hop transiting
through Europe. The regulatory situation requires any company that transits the data of another
provider to apply for a ‘carrier of carriers’ licence and this has held back the cellular providers
from sharing their developing microwave backhaul systems. Whilst Zamtel does offer DSL links
(in multiples of 64k) between major cities, these are expensive and offered without a service
level agreement.
However, the incentive to reach the new fibre cables along the coasts of Africa, as well as to
drive services to locations out of the capital, has seen some positive developments. The stateowned company that is the sole provider of electric power, ZESCO, has laid fibre optic cable
along the earth wire of its pylon infrastructure on the main grid from Livingstone and Kariba,
along the line of rail, and up to Solwezi and Lumwana in the Copperbelt. It now sells spare
© Ministry of Communications and Transport, 2009
12
capacity on that link, and holds the appropriate licence. Most ISPs and cellular phone
companies are now taking advantage of this facility, albeit that prices are still relatively high.
The current status of the network is as follows, noting the extension of the network to several
border towns:
ZESCO are planning a second phase to the network, as follows, although no timescales are yet
available:
In addition, Zamtel have now started laying fibre optic cables in underground trenches along
their main routes, starting with those already covered by ZESCO and then reaching out to new
areas and towards the borders.
© Ministry of Communications and Transport, 2009
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Timescales for this project are:
Route Segment
Cross birder
town
Design
Length
Executed
length
Expected
Completion
Date
696
690
June-09
143
100.5
July-09
Connecting
Country
Lusaka - Solwezi
Kasumbalesa
DRC
SiavongaBranch
Lusaka – Mongu
via Livingstone
Siavonga
Lusaka -Chipata
Kapiri –
Nakonde via
Kasama
Grand Total
Zimbabwe
Kazungula and
Sesheke
1156
362
Augl-09
Mchinji
Botswana
and Namibia
Malawi
619.5
188
Nakonde
Tanzania
1327.8
698
To be
advised
To be
advised
3942.3
2038.5
In addition, Zamtel have laid a fibre optic metropolitan network around Lusaka, connecting up
the main exchanges and offering last-mile fibre to larger scale clients who can afford the costs.
The Copperbelt Energy Corporation (CEC) which serves electric power to the mines, also has
its own fibre ring around the Copperbelt towns and mines.
© Ministry of Communications and Transport, 2009
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The nationwide optic fibre investment by ZESCO and Zamtel are estimated at US$ 13 million
and US$ 48 million respectively including local taxes. CEC’s optic fibre network is 540
kilometres in extent and the cost of installation of the network, including terminal nodes was US
$ 9million
© Ministry of Communications and Transport, 2009
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Progress Timeline
Year
Event
1994

Telecommunications Act: led to the increase of private participation and significant
liberalization of the sector.

Internet introduced by ZamNet (owned by the University of Zambia)
1995
Cellular telephony introduced by Zamtel
1996
CopperNet start up
1997
Internet launched by Zamtel
1998
Zamcell receives mobile license
1999
Telecel replace CDMA with GSM technology
2000
Mobile subscriber base surpasses the number of fixed subscribers for the first time
2001
Microlink and UUNet begin Internet services
2002
Zamtel migrate to GSM technology
2003
IBA Act; ZNBC Amendment Act
2005
MTN acquires 100% of Telecel
AfriConnect launch WiMAX Broadband Service

National ICT Policy launched
2007
2008

Celtel rebranded as Zain. Subscriber numbers exceed 2.5m
2009

ICT Bill launched

CAZ Universal Access Fund launched

First international fibre reaches Zambia

WiMAX reaches the 9 Provincial capitals
Radio and Television
Broadcasting in Zambia started as far back as 1941 and took various forms until an autonomous
body was formed in 1988 when the Zambia National Broadcasting Corporation (ZNBC) came
into being. It remains the official broadcasting organ of government and it operates both radio
and TV services.
Radio services are provided through Shortwave and FM transmissions. Currently, FM
transmissions only cover the Line of Rail and some Provincial Centres. ZNBC has three Radio
Channels namely Radio 1 (broadcast in 7 vernacular languages, offering news, entertainment
and education 19 hours a day), Radio 2 (an English language version of Radio 1) and Radio 4
(an English language station offering music and advertising 24 hours a day). ZNBC has 1
shortwave transmitter and 10 FM transmitters each (co-located) for radios 1 and 2 nationwide,
and 4 FM transmitters for Radio 4. Radio 4 is listened to by 36% of the adult population; Radio 2
by 49%; and Radio 1 by 29%.
Until 1993 there remained only one national broadcaster. Once liberalisation occurred in that
year private operators began to appear, particular in larger urban areas. By 2008 there were 48
radio stations countrywide and 5 TV stations.
© Ministry of Communications and Transport, 2009
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ZNBC has one TV channel. Until 2006 this was only receivable in the main provincial centres,
as distribution was solely dependent on Zamtel’s Terrestrial Microwave Network. However, in
2005 ZNBC entered into a partnership with Multichoice Zambia. The ZNBC/Multichoice
partnership made provision for ZNBC TV signal to be part of the DSTV bouquet, thus allowing
ZNBC to be received via the standard consumer satellite dish throughout the country, including
in deep rural areas – or at least by those that had both the necessary electric power supply and
the necessary funds.
Following the ZNBC/Multichoice agreement, ZNBC has also been able to expand terrestrial TV
services to the rural parts of the country through the government-funded Rural TV Project,
designed to allow more people access to television, considered to be critical for further
education. ZNBC receives the television signal via satellite in a number of rural districts and
retransmits terrestrially via a local TV transmitter. ZNBC now has a total of 63 television
transmitter relays (up from 12 in 2004), spread around the country as shown in below. 65% of
© Ministry of Communications and Transport, 2009
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Zambians watch ZNBC TV. This growth to the rural areas has coincided with the comparable
growth in GSM coverage, and thus created new interactions and much broader communications
for the populations concerned.
In late 2009 ZNBC plan to launch a second national TV channel. By 2014 all broadcasting is
due to be converted from analogue to digital, which will be a major challenge.
DSTV (Digital Satellite TV), operated out of South Africa, is available on Ku-band throughout the
country. There are some free-to-air channels, with the only cost being the capital equipment.
Multichoice has some 45,000 customers countrywide for their pay-TV service, with the cost
being up to $65 per month if all bundles are taken.
The Legal and Regulatory Situation
The Communications Authority of Zambia (CAZ, see www.caz.zm) was formed in 1994 and is
nominally independent of government. It is tasked with regulating the telecommunications sector
(voice, data, and broadcast media services) and issues operator and radio frequency licences.
Types of licence include voice provider; ISP; carrier of carriers; and VSAT usage.
© Ministry of Communications and Transport, 2009
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The ICT Bill of 2009 will move towards the provision of unitary licences (for voice and data
services) and enhance the role of a restructured Communications Authority to include control of
postal services.
In 2007 the Government launched the National ICT Policy, to be implemented through the
Ministry of Communications and Transport. This includes the drive towards a knowledge
economy by 2030 (as envisioned Internet the country’s ‘Vision 2030’); the encouragement of
public access; the development of all appropriate telecommunications infrastructures; and the
introduction of e-government and e-commerce, with appropriate legislation.
The Government is also committed to developing public-private partnerships in the
telecommunications sector as well as more generally, although few exist as yet.
As regards radio frequency allocation, there is no control of the 2.4GHz STM band, which is in
widespread usage, but all other frequencies are subject to licensing. WiMAX licences in the
2.5GHz were allocated from 2004 and are now fully utilised, with licences in the 3.5GHz
spectrum in the process of being issued.
Under the covering legislation CAZ has been charging a levy, since 1994, of 5% of recurrent
turnover to all companies licensed in the telecomms sector. This is partly set to fund the
operations of the Authority, and partly for the establishment of a universal access fund (UAF) for
the promotion of rural communication in particular. With appropriate additions to the legislation
in 2009 monies from the UAF are now to be released, with spending levels set at US$11.8m for
the next 5 years. See separate details on the UAF below.
Government is considering, as some of its neighbours have done, the benefits of liberalising the
tax regime in order to encourage the growth of the ICT sector, and the general usage of ICTs. At
present,, whilst import duty on computers is set at 5% (there is little local production or
assembly), that on other communications equipment is at 15% or above. VAT (at 16%) is
charged on all telecomms services, including ISP services, and is not reclaimable as an input to
business. There are currently no tax breaks for investors in the sector, and additional customs
levies apply to the mobile sector. The cellular companies indicate that over 40% of user spend
goes to the government in some form, and the ISP sector will be similar.
There are currently no exceptions to the tax / levy regime for rural communications, but again
this is under consideration.
The Challenge of Rural Telecommunications
Almost all measurable indicators point to life in rural areas of the country being harsher than in
urban ones. The overall incidence of poverty in rural areas remains at around 78 percent. Only
54 percent of rural households have access to a health facility within 5km. Only 43 percent of
rural households have access to safe water (less than half the number in urban areas). 57
percent of children have such poor nutrition that they are classified as stunted. Maternal
mortality is on the increase and is over 730 deaths per 100,000 births. Over 70% of these
deaths occur in rural areas. Many teachers remain reluctant to work in rural areas, citing lack of
water, power and communications. Can improved communications and connectivity make a
contribution to improving this imbalance?
There is no doubting the enormous impact upon the rural communities, and the rural economy
in general, of the advent of cellular phone technology. Communities that had traditionally had to
travel long distances to communicate, whether about business or personal matters, now have
instant access either via their own phone (with the price of phones now down as low as US$13)
or one belonging to a friend or the community.
In the time of disasters, such as floods, mobile cellular communication has been able to mitigate
some of the communication barriers that used to exist before. For example if an area is cut off
from the rest of the country as a result of a bridge been washed out, people are able now to
relay messages for relief and or other needs in the times of natural disaster.
The use of phones is not without its challenges, including the need to charge them when mains
electric power is either intermittent or non-existent, and the relatively high cost of usage – much
spending is in small units of US$0.20 – but the rural community that is now within coverage has
gained ‘a voice’ for the first time.
On the back of this coverage information services are starting to emerge, such as the SMSbased service operated by the Zambia National Farmers Union (ZNFU) that allows small-scale
farmers to ascertain the best selling price for commodities that they have just produced,
localised to their District, and thus no longer be at the mercy of passing traders. Similar
schemes are evolving in the health sector, and it is likely that phone-based mobile banking
© Ministry of Communications and Transport, 2009
19
(along the same lines as M-Pesa in Kenya) will emerge in the near future, greatly enhancing the
power of the technology. Further schemes are highlighted below.
However, whilst cellular access has improved there still remain significant pockets of deprivation
on the voice side, and access to the internet is still very sparse outside the main urban areas.
Whilst there is a GPRS service operating wherever there is voice coverage that does not mean
that it is affordable (charging being on the basis of data volume) nor that the population has the
means to access it – having neither computers nor internet-enabled phones. Speeds also
remain slow, and the service less reliable than in urban areas. Whilst 40% of the population lies
within the reach of standard internet access in some form, and almost 30% within existing
WiMAX broadband coverage, the 60% of the population in rural areas remains under-served.
This especially applies to those in the so-called ‘deep rural’ areas, where it is likely that mains
electricity is also scarce.
There are a number of projects that have been aimed at improving rural connectivity in some
areas, or at least understanding the constraints to internet expansion, and some of these are
highlighted in the section that follows.
However, experience shows that the following are amongst the difficulties faced when
introducing broadband (in this case meaning ‘always on and speeds of up to 512kbps’) in rural
areas:
 High per capita cost for capital equipment (VSAT/backhaul/transmission/server/ router etc.).
 Low disposable income (even if operating in a cash economy), and high unemployment,
meaning charges have to be lower than in an urban environment with some facilities for
access by those with no cash.
 Need to operate a communal facility, such as an internet cafe, due to low computer
ownership.
 Low or no ICT-literacy levels. Lack of understanding of the benefits of the internet, meaning
high levels of sensitisation and training needed, which must be offered at no cost.
 Need for specifically built web portals based on locally determined information needs in each
community.
 Lack of access to computers.
 Computers that are found in rural areas may be old (CRT technology) and hard to repair (no
local skills or spares); are high in power consumption; and less suitable for internet use for
capacity reasons. Once they fail subscribers will cease paying subscriptions without warning.
 Major problems with electric power supply and prevention of damage from intermittent
supplies.
 Difficulties in finding local staff to operate services and be sufficiently knowledgeable as to
benefits of connectivity.
 Cost in comparison to SMS and alternative services.
 Lack of any incentive to operate in such areas. Need to charge urban rates of tax, levies and
VAT.
 Lack of eGovernment facilities and thus reasons for people, especially in government, to be
online. A critical mass must first be reached.
 Government users, whilst being present in all districts, may be unreliable with payment for
services.
 The need to buy expensive bandwidth, either terrestrial or satellite based, to reach the urban
areas.
 The non-legality of VoIP services.
 Lack of access, to date, to universal access funds.
All of the above issues can be overcome and government and the private sector are working
together to provide sustainable solutions.
A number of the local ISPs now have a presence in some or all of the 9 Provincial capitals,
some of which are rural by international standards. Some also have presence in major district
capitals. Some towns have an internet cafe, generally VSAT based although with some dial-up
as well, started by a local entrepreneur. A number of ISPs have indicated readiness to reach
certain further district capitals, and it is believed that all 72 could be reached within a relatively
short period of time if the UAF could find appropriate funding. Thus a ‘top down’ approach
© Ministry of Communications and Transport, 2009
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begins to emerge, with provincial and then district levels being served, and connectivity moving
out in a web from there to the deeper rural areas.
However, there are a number of project which are operating on a ‘bottom up’ grassroots basis
and some are highlighted below. These are also amongst the first recipients of the UAF now
being distributed by CAZ.
Some Notable Projects Tackling Rural Connectivity and
Information Provision
The following are amongst those projects tacking rural connectivity in some form, or projects
making use of the new connectivity that is emerging. Further details of the larger ones are found
in the appendix, and details of all are on the website at www.cto2009.org.zm.
LinkNet (www.link.net.zm)
Collaborative Rural ICT development
Macha Works / LinkNet, in collaboration with the Communications Authority of Zambia, the
University of Zambia, and others, aims to inspire local talent in Zambia's rural areas to support
their rural communities towards sustainable progress, realising their collective and individual
potential, being empowered and enabled by targeted implementation of Information and
Communications Technology. As such LinkNet brings Internet into the rural areas of Zambia via
a purpose-built institute based in a rural area.
Connecting rural communities in Africa is urgently needed as worldwide developments pivot
towards a society where information is available anytime anywhere, with integration of multidisciplinary solutions for global problems, involving rapid technical development. This requires
innovation in rural development and learning. In rural Macha, the community implemented
locally distributed Internet connectivity, and introduced an action-oriented way of learning,
focused on real-life community development in a rural context. This way of progress, bearing
results in Macha, is now being multiplied in at least 10 other rural communities, among which
are Chikankata, Chilonga, Chitokoloki, Kalene, Minga, Mukinge and others in 2009. To do this,
Macha Works built up a broad coalition of partnerships in Zambia, Southern Africa, Europe, and
America to support its endeavours to provide for state of the art and innovative rural ICT
solutions. Developments are extensively published on the internet via http://www.link.net.zm
Innovative approach for rural development
Rural African culture is relationship-based in contrast to dominant ratio-based culture of the
West. Thus Macha Works focuses on sustainable rural development in a holistic and innovative
perspective. The approach is built around the specific needs of the community and puts local,
rural people in the driving seat. Such is guided by its Master plan, aligned with support requests
from rural areas, and in constant communication and interaction with all stakeholders including
the House of Chiefs, Government, and local institutes in health and education. Key ingredients
for progress on the ground are: 1) Internet connectivity; 2) Local talents in driver seat; 3)
Community driven solutions;
Internet connectivity is crucial ingredient for development in rural areas of Zambia. At first it
provides hope for progress coming to the rural community. Such hope motivates talent to stay in
- or come to - rural areas. Furthermore internet provides basic communication tools; connects
and retains talents in different isolated communities and allows them to share best practices;
brings knowledge and online libraries to the place where it needs to be used; mobilises
organisations to add support to their talents, and makes the project execution completely
transparent for all stakeholders.
Local talents drive Macha Works' approach. They stand up for their community, as without local
ownership conditions for sustainable development of the community are not met.
Rural villages are resource limited and lack professional resources and access to finance to
drive development themselves. Macha Works' approach includes engendering building of
solutions in health, education, entrepreneurial, agriculture and public services, after Internet
connectivity is established.
© Ministry of Communications and Transport, 2009
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ConnectAfrica (www.connectafrica.net)
Connect Africa is an innovative ICT initiative that combines entrepreneurship and social
enterprise to bring communication, business and public services to deep rural communities
across Africa.
Using a network of public phones and data terminals, working in tandem with a fleet of service
vehicles that routinely visit these installations , Connect Africa provides an infrastructure and
logistics network to facilitate the delivery of multiple services to deep rural communities.
In April 2008 Connect Africa began conducting a trial of satellite connected public pay-phones in
deep rural Central Zambia.
The success of these first trials resulted in the deployment of an extended trial project,
supported by the Iridium and Thuraya Satellite Networks, in March 2009. Funded by the
Southern Africa Trust and with the approval of the Communications Authority of Zambia and the
Zambian Wildlife Authority, Connect Africa deployed six public pay-phones in and around the
Mumbwa/Kafue region of Central Zambia.
All activity across the trial network was monitored and analysed and a project report with
recommendations for a national network of rural multipurpose service points was submitted to
the Zambian Communications Authority for review in July 2009.
This voice and data supported network will provide the framework for a multi-purpose service
network to deliver public sector e-government, agriculture, health and education services, as
well as multiple private sector services, directly to deep rural communities.
It is proposed that with the support of the Zambian Government, and private sector service
providers, Connect Africa will begin a phased roll out of their ICT based rural service network
across Zambia in late 2009.
The Zambian rural network will then serve as a model for a pan-African rural service network
operating in 10 countries by 2015.
AfriConnect’s Connectivity in Namwala (www.namwala.com)
In 2007 AfriConnect, an ISP that offers WiMAX connectivity in major towns around Zambia, set
up a service, based on the lower-cost WiFi technology and a Ku-band VSAT link, around the
rural District Capital of Namwala, some 7 hours drive from Lusaka in Southern Province. It set
up an internet cafe; trained local staff; offered free training to over 200 local residents; and offers
a full 24/7 (electric power permitting) internet service to those institutions in the local community,
including major government institutions, local schools, and the District hospital. Low-cost
netbooks are now being sold. A local website has been created to engender a sense of local
ownership of the facility. Significant challenges have been encountered, but the Company is
planning to apply the lessons learned to a widespread deployment in other District capitals,
based on joint WiMAX and WiFi connectivity, with funding being sought from the UAF and
outside partners.
© Ministry of Communications and Transport, 2009
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ZNFU Commodity Price System (www.farmprices.co.zm)
The Zambia National Farmers’ Union (ZNFU) operates an information service which is available
by SMS to anyone with a cellphone. It provides details of commodity prices and is aimed at
small scale farmers. Farmers who have produce for sale can find out the best prices that they
would get for it in their particular district. They are given both prices and contact information for
the buyers. This saves the farmers from being at the mercy of transporters and third parties who
would come to a farm and offer any price they chose. A full range of commodities is supported,
arable and cattle. Prices are updated each day, and fuller information is also available via a
website. Some 80% of the population is within reach of the SMS service.
See a fuller description at
http://www.ruralpovertyportal.org/web/guest/country/voice/tags/zambia/shemp
Along related lines, Cropserve, a vendor of inputs to the farming community, with assisted
funding, are trialling an SMS and web-based service for providing pricing and guidance for
inputs such as seeds and veterinary products.
AfriConnect iSchool Project (www.ischool.zm)
For the past two years AfriConnect, in partnership with the Ministry of Education, have been
trialling a project aimed at bringing web-based eLearning to schools in different parts of the
country (rural, urban, high-density). Some 20 schools have been provided with free or low-cost
connectivity, plus teacher training and support. A large website of free learning materials has
been built, based on the Zambian curriculum. The project is now moving to the next phase with
more schools and with a more detailed study undertaken of how teaching and learning can be
improved, and what inputs are needed. The objective is to move from more traditional ‘chalk and
talk’ pedagogies to inquiry-based learning, at the same time as bringing the option of lifelong
learning for people who have already left school (as most children have done after the primary
stage).
© Ministry of Communications and Transport, 2009
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Intel have generously committed to provide teacher training, through their Teach programme,
and science-based web eLearning content, fully contextualised. Cambridge University and the
University of Zambia will be undertaking the educational research. Partners and funders, to
support individual schools and project components, are sought as the project continues, the final
objective being a nationwide roll-out.
Ministry of Health (www.moh.gov.zm)
The Ministry has connected up its Provincial Health Offices to the internet, and is drawing up
plans for further connectivity. It has at least one hospital in every district, and an average of 11
clinics per district.
CDC Patient Smart-card system
The Ministry of Health, working with the American Centres for Disease Control and Prevention
(CDC) are rolling out, in selected areas, a patient smart card system, so that patients can carry
their own medical records with them when visiting clinics. These are then read by smart-card
readers. At present they are not connected to any central service, and data is collected by the
transfer of memory sticks, but there is an obvious application for connectivity as it reaches more
rural areas.
AfriConnect iHealth Service (www.ihealth.zm)
AfriConnect have provided a free website on Zambian health issues at the above URL and are
promoting connectivity to all health-related facilities under WiMAX and other broadband
footprints. Special web portals for teenage sexual health issues, and direct patient contact (via
touch screens) are also in development, and will include access to nutritional and other health
issues particularly pertinent to rural areas.
Ministry of Education Schools Broadcast and Associated Services /
Equip2
The Ministry of Education, in cooperation with USAID partners, are providing connectivity to
teacher training colleges, and then to resource centres. Further information at
www.equip123.net/webarticles/anmviewer.asp?a=367.
© Ministry of Communications and Transport, 2009
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World Vision (www.worldvision.org/about_us.nsf/child/aboutus_zambia?Open)
World Vision Zambia provide VSAT-based connectivity to a number of the villages where their
sponsored children live.
Individual Hospitals and Missions
Several hundred individual health and education institutions, particularly those associated with
missions, have VSAT connectivity. These are used for ordering of medical supplies; liaison with
medical colleagues in Lusaka and abroad; access to medical journals (including under the WHO
HINARI programme); maintenance of equipment; research; referrals, and online training.
Celpay / Post Offices
Coppernet, a Zambian ISP, is providing internet connectivity to Post Offices across the country.
Post offices are also being used as a base for the Celpay electronic payments system, which
uses GPRS and internet-based connectivity.
Chinyunyu Rural Telecentre Project (www.unido.org/index.php?id=6406)
Chinyunyu is a village some 50km east of Lusaka where communications have conventionally
been poor and electric power is an issue. Using funding from UNIDO and elsewhere a
community telecentre has been constructed, which also includes an agricultural storage facility.
Power is provided via solar cells and villagers can also charge up their cellphones and other
low-power devices.
Electoral Commission (www.elections.org.zm)
The ECZ have, during the last 2 national parliamentary and presidential elections used forms of
connectivity for quick collection and confirmation of votes.
Virtual Doctor Project (www.virtualdoctors.org)
The Virtual Doctor Project, in its final fundraising stages, seeks to put mobile clinics in deep rural
areas and provide them with a health worker and a good satellite based mobile internet
connection to allow them to access doctors and skills from Zambia and around the world. This
seeks to overcome the grave shortage of doctors in rural areas which is one of the primary
reasons for poor healthcare.
Rural Telecentres
The Communications Authority under its UAP has embarked on a project aimed at establishing
Multi-purpose Community Telecentres (MCTs) in various rural outposts in Zambia. MCTs are
expected to cater for rural populations by providing access to basic ICTs and
telecommunications service such as computers, printers and scanners, Internet, telephone
access, sending and receiving faxes and other services at an economical fee. Training will also
be provided. The proposed roll-out will be at a rate of 7 MCTs per year over the next 10 years (a
total spend of some US$1.5m).
Existing telecentres, such as those in Mpika and Mporokoso, operated by individuals and
NGOs, provide a working model for the future, but indicate that capital injection is still required.
IICD / Motorola Project at Youth Resource Centers
The Dutch ICT-based NGO International Institute for Communication and Development (IICD),
with funding from the Motorola Foundation, is currently implementing a connectivity programme
to 8 schools and youth resource centres, including some in more rural locations. The theme of
the project is ‘Preparing Zambian Youth for the Future through Shared Connectivity Solutions’.
Camfed Rural Training Centre
The Campaign for Female Education, Camfed, has provided VSAT connectivity to a training
centre in rural Samfya, where girls who have recently left schools are taught trades that will
allow them to become more economically empowered.
© Ministry of Communications and Transport, 2009
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Public / Community Payphones
The main cellphone companies, and Zain in particular, had offered community cellphones (also
capable of being run off car batteries) to rural or high-density urban areas. However, the
availability of very low cost cellphones is causing the need for the community units to disappear,
and this allows more personalised services to be delivered.
Mobile Payment Systems
A number of initiatives are under test aimed at providing a mobile payments system along the
lines of the M-Pesa offering in Kenya. Zain have also announced that they will be offering their
ZAP product to offer the same facilities in due course.
Commercial Connectivity
Commercial banks in Zambia, a number of which have branches in rural areas, at least to
District capital level, are using VSATs for connectivity back to their headquarters, either in
Zambia or abroad. Some shopping chains are now doing the same.
A number of parastatals and those requiring in-country data connectivity to remoter branches
are also using Zamtel’s DSL service, generally at speeds of 64k.
ZESCO also has its own microwave backbone infrastructure, where fibre is not available.
E-post (http://www.epost.com.zm/)
Zampost, the official government-operated postal service, now offers a facility to send physical
letters delivered to PO boxes or direct to buildings via the use of a website. Only 5 urban
locations are currently covered, but the plan is to expand to all Districts in due course.
Local ISPs in Zambia
Local ISPs have all be asked to submit their rural expansion plans to CAZ in order to be
considered for funding under the Universal Access Fund, and all have plans to get to at least
some District capitals, with some planning to get to all 72 Districts, and then to deeper rural
areas in conjunction with local community organizations and NGOs.
Agritrade (www.agritrade.co.zm)
Agritrade is a market information service that can be accessed via mobile phone and via the
Internet by smallholder farmers and agri-produce buyers. It is intended to facilitate transactions
between buyers and sellers by providing updated market information, and also to facilitate
transactions between suppliers of agricultural inputs and smallholder farmers. Agritrade also
provides push SMS-based services such as provision of technical support, including agricultural
extension services, product information and direct marketing.
The service initially focuses on direct buyers and sellers of agri-produce in the horticulture and
dairy sub-sectors. This includes, lodges, hotels, supermarkets, dairy processors, hospitals,
restaurants schools, institutions, agri-processing companies (to mention a few buyers) and small
to large scale farmers who produce and sell vegetables and milk. The service addresses market
failure or malfunctioning resulting from asymmetric information , lack of reliable and up-to-date
market information for all buyers and sellers in these sub sectors. The service goes beyond
provision of market information by linking buyers and sellers in a fast, convenient and affordable
way.
© Ministry of Communications and Transport, 2009
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Future developments
Telecommunications in Africa generally are due to be revolutionised by the coming of the new
submarine fibre optic cables now being laid down the east (for the first time) and west coasts,
and hitting the internet backbone in Europe and elsewhere. Access to these cables is due to
bring bandwidth pricing in the countries along the routes, particularly those cities near the coast,
by an order of magnitude, with access to the fibre being in some cases being in some cases as
low as 2% of previous satellite costs.
So low is this cost that it will inevitably drive demand for access to these new cables, even in
more remote locations and in landlocked countries, such as Zambia, and new players will
inevitably enter the market. International bodies such as the World Bank are pro-actively
promoting the spread of such access, as is the EASSy project, the North-South Corridor project,
and private companies and incumbent operators.
Zambia has just very recently gained access to the existing west coast Sat-3 cable to Europe
via a fibre link using ZESCO to interlink with Namibia, which in turn links with the South African
fibre network, reaching Cape Town. Whilst the prices of the new fibre link to London are only
very little less than existing satellite connections (due to the high cost of transiting through other
regional countries on route), latency will fall and new opportunities for connectivity (such as
video conferencing) will emerge. A reduction in pricing is however likely in the medium term now
that the SeaCom cable is live on the east coast and high-capacity on the new west African
WACS cable comes on stream in a year’s time. Routes are already planned through Zimbabwe
and Botswana (linking with Zamtel’s proposed fibre routes and ZESCO’s expansion, and
schemes in partnership with the cellular operators) and later through Tanzania,
Malawi/Mozambique and Angola.
Coupled with the deregulation of the international voice gateway it is likely that prices for both
voice and internet access will fall significantly (or more bandwidth be made available) and new
markets for triple play (internet, voice and entertainment services delivered together through the
same medium) will be created, at least in the major urban areas of Lusaka and the Copperbelt.
With the introduction of further low-cost computers, such as the current generation of netbooks,
and more sophisticated converged phones, and an increasing market in mobile and nomadic
internet services (CDMA; WiMAX; 3.5G; 4G; LTE) a higher percentage of the population should
find connectivity in some form.
In turn, with schools and community facilities getting connected this will see a much wider
community of internet users. eGovernment and the provision of significant local content will also
drive usage.
However, whilst commercial interests might drive internet usage to much higher levels in the
more urban areas it is likely that rural connectivity will require significant incentivisation and
management well into the medium term. The basic infrastructure will be in place (through
international fibre, and in-country microwave and fibre) to get to District level where meshing
into deeper rural areas can take place. Each rural centre then needs the following facilities and
inputs:
 Internet cafe/telecentre
 WiMAX service covering the District capital (radius 30km+)
 Onward WiFi / backhauls to remoter villages
 All government users connected
© Ministry of Communications and Transport, 2009
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 Local web portal created for the specific community, plus access to a good Zambian gateway
 Free training in ICT skills and internet usage, tailored for the local community
 Services of an internet ‘evangelist’ for at least 3 months to embed internet usage based on the
needs of the community after obtaining buy-in from all necessary parties.
 Access to subsidised bandwidth costs for at least an initial 6 months, and thus low-cost
services to clients whilst they learn to use and appreciate the facilities.
 Low-cost connections to local schools and health facilities, as well as the farming community.
 Removal of all levies, duties and taxes on internet services.
 Provision of access to terrestrial backhaul infrastructure, shared towers, and removal of any
licensing restrictions.
 Fully trained local staff
 Access to low-cost netbooks or other forms of low-power, easily maintained computers.
 Provision of electricity to the telecentre and connectivity providers, coupled with further
investment in biofuels, solar power and alternative energy sources.
It is hoped that the Universal Access Fund (plus any external investment) can provide the
necessary incentivisation to allow this roll-out to all 72 District capitals within the next 18
months, to be followed by the extension to deeper rural areas. There is plenty of local capacity
and willingness in country once the appropriate funding is in place.
Likewise deeper penetration of GSM coverage will follow from UAF incentivisation.
Current and Planned Submarine Fibre Routes Around Africa
© Ministry of Communications and Transport, 2009
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Investment / Partnership Opportunities for Development
of Rural Communications
Zambia has witnessed accelerated investment in the ICT Sector over the past 5-8 years or so.
The major growth has been recorded in the mobile telephony and Internet services sub sectors.
The Geographical position of Zambia continues to make the country a natural hub for
investment in the ICT sector. The country’s geographical position is augmented by the citizens’
good educational levels with excellence in English language which ranks the country among the
very best on the African continent. Zambia also enjoys excellent world relations with many
countries making it an investment- friendly destination.
There is a lot of room for investment in the uncovered population particularly in mobile
communications, Internet provision, and manufacture of ICT equipment locally such as
Computers, Telephone handsets and other electronic goods. The country is still seeking a fourth
mobile service provider to cover the whole country and has also established Multi Facility
Economic Zones in the Copperbelt and Lusaka which are ideal for the development of
technology parks for entrepreneur and software development. To accelerate the spread of ICTs
within the communities Zambia has launched a Public Private Partnership (PPP) policy, to
encourage local and international investors to participate in the sector.
Zambia is gearing up to reposition the Zambia Telecommunications Company (Zamtel) in order
to increase the company’s competitiveness in a diversified ICT market. This potentially will
improve the performance of Zamtel as an important operating company as well as remove
constraints it currently imposes on the rest of the sector and the economy at large. A strategic
Equity partner is being sought for this undertaking.
General incentives are provided for in various acts such as the ZDA Act, and Income Tax Act.
Conclusion
There are exciting developments in the arena of internet communications in urban areas,
despite the weak infrastructure that has existed in the past. With a combination of international
fibre and local high-speed wireless the near future will bring lower costs, faster speeds, and
more people connected. This in turn will have a significant knock-on benefit to the economy,
government, education and health.
However, it won’t automatically transfer to the 60% of the population who live in more rural
areas. Whilst there has been a model of profitability for the 80% of the population now covered
by GSM services, to reach the remaining 20% needs carefully planned incentives. And there is
as yet no ‘normal’ business model for provision of internet connectivity to all levels of
government, or schools, hospitals and the farming community, despite the immense need and
potential to overcome poverty, improve education, encourage democracy, and bring more
people into the formal economy.
There is a need for urgent action by Government and the Communications Authority to remove
disincentives to investment in rural telecommunications, and to begin distribution of the
universal access funds via tender process in ways that have been successful elsewhere. In
conjunction with productive public private partnerships things could move quickly. This should
result in a myriad of potential investors and cooperating partners ready to encourage all levels
of a sensitised government and civil society to bring the rural economy into the 21st century.
The technology now exists. The need is proven. The will is all that is needed.
© Ministry of Communications and Transport, 2009
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Appendices
Zambia‘s General ICT Indicators
INDICATORS
DEMOGRAPHICS
Total Population (Estimate)
Population of the capital city (Estimate
Urban Population
LANDLINE/FIXED TELEPHONE NETWORK/(S)
Total network switch capacity
Total Network digital switch capacity
Total number of subscribers (main lines)
Total number of main phone lines in service
Number of direct dialling main lines
Number of main residential lines
Number of telephone lines in service in the capital
Total number of telephone lines in the urban area
Total number of public payphones
FIXED NETWORK INTERNATIONAL INTERCONNECTION
Number of direct links with Eastern and Southern African countries
Number of direct links with other African countries other than Eastern
and Southern African countries
Number of direct international links (outside Africa)
Total number of international circuits.
QUALITY OF SERVICE – FIXED NETWORK
Number of subscribers on the waiting list
Number of faults per line per year
Number of faults per hundred main lines per year
Percentage of daily cleared faults to reported faults
Availability of main terrestrial transmission links
Availability of satellite transmission links
Percentage of disputed bills
MOBILE TELEPHONE NETWORK/(S)
Number of mobile networks
Total number of mobile telephone subscribers
Total number of mobile digital subscribers
Number of waiting demand
Percentage of the population covered by the cellular network
Percentage of the country territory covered by the cellular network
MOBILE NETWORK INTERNATIONAL INTERCONNECTION
Number of direct international links without transiting via the fixed
national network
Total number of international circuits
Number of additional projected links in the following year
Number of countries/networks with operational roaming agreement
Number of African countries/networks with operational roaming
agreement
TELEVISION SERVICE – (TV)
© Ministry of Communications and Transport, 2009
UP TO
31/03/2009
11, 900, 000
2, 600, 000
4, 880, 000
146,260
140,377
90,600
90,600
90,600
43,816
44,977
75,579
5446
5
1
0
1166
4,159
0.05%
49.0%
98.75%
98.9%
99.89%
3.5%
3
3,646,909
3,646,909
NIL
71%
85%
NIL
120
11
182
Networks/82
Countries
53 Networks/
32 Countries
30
Total number of TV receivers
Number of households equipped with TV receivers
Total number of home satellite antennas
INFORMATION & COMMUNICATION TECHNOLOGIES
Number of Internet eXchange points (IXPs)
Number of licenced ISPs
Number of active ISPs
Internet Subscribers
Number of PoPs
Estimated number of internet users
Estimated number of mobile internet users
850, 000
571,983
45, 464
1
17
7
18, 428
49
750, 000
791, 464
Further Details of Existing Rural Connectivity Projects.
Connect Africa
The ‘Local Phone’ in Nalusanga
© Ministry of Communications and Transport, 2009
31
April 2008 - Chief Chibuluma making the first call
Lloyd checking Iridium equipment March 2009
© Ministry of Communications and Transport, 2009
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Lloyd training operator on Thuraya PCO at TBZ March 2009
LinkNet/MachaWorks
Training at Macha
Inside LinkNet Resource Container
© Ministry of Communications and Transport, 2009
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Mrs. Esther Kalambo doing a theology course via the Internet
Otzbert Kasokola, manager LinkNet at the prototype LinkNet resource container in Macha
The connected computer classroom at Macha Girls School
Bringing rural connectivity by VSAT
© Ministry of Communications and Transport, 2009
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Sandra in Macha Malaria Research Trust laboratory
© Ministry of Communications and Transport, 2009
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AfriConnect Zambia: Progress Towards Wider Internet Access
Core Internet Services
AfriConnect began offering services to customers in Zambia in early 2005. The service was
based exclusively around WiMAX technology (no dial-up, leased line or WiFi customers)
operating in the 2.5GHz spectrum band, offering non-line-of-sight connections up to a radius of
30km. Initially the service was offered only in Lusaka, but this has since been extended to the
other 8 Provincial capitals, and several other major towns. Most clients receive shared 512k
connections, with some electing for higher bandwidths, including those with dedicated capacity
to the internet backbone in Europe. International bandwidth is brought in over multiple satellite
links, and there is in-country connectivity provided over the ZESCO fibre cable infrastructure, as
well as some other microwave capacity. In June 2009 the first international terrestrial connection
was created via Namibia, South Africa, and the Sat-3 cable to Europe. A terrestrial microwave
link to Zimbabwe was also initiated for regional peering. The Company plans continued
expansion to more areas using WiMAX technology – getting to larger district capitals and then
smaller towns as the UAF or business models allow. Currently the WiMAX service covers
almost 30% of the population. AfriConnect are now rolling out a separate wireless network in
Lusaka (operating in the 5.4Ghz band) aimed exclusively at the corporate market, offering
higher speeds and dedicated bandwidth. And the WiMAX network will be upgradable for further
nomadicity and then mobility.
Current AfriConnect Wireless Broadband Coverage (30km radius from each location)
Broadening the Market
AfriConnect is now expanding the use of the internet to those who have thus far not been able
to afford access or the means by which to gain access. It is in the process of rolling out WiFi
hotspots in all the towns in which it has a presence. Over 100 will be rolled out in 2009. These
will operate on a transferable pay-as-you-go scratch-card system with broadband speeds and at
less than internet café prices. Internet cafes are also being opened in popular locations in all
towns of operation. The hotpots are also being installed in a range of colleges and schools and
a scheme for the selling of the new netbook range of laptop computers has been introduced,
with low-cost computers (around $300) that can be paid for in instalments to encourage more
people to have access to the internet whether for study, work or recreation, and these are
proving popular.
Rural Development
For the last 2 years AfriConnect has been operating a service in Namwala, in Southern
Province. It has been using lower-cost technology (Ku-band satellite link; powerful WiFi
transmitters) and operating an Internet café as well as customer connectivity. Full details,
including challenges faced, are found above.
AfriConnect are now in discussions with projects in deeper rural areas (such as LinkNet and
Connect Africa) as to how they can feed off the links that AfriConnect are installing at District
level via appropriate long-distance backhauls.
SMS
AfriConnect operate SMS value-added services over the Zain network. This is a way of getting
information to those who don’t yet have internet access, including in deep rural locations. The
service can be used for data collection (school statistics; medical supplies procurement; etc.);
dissemination of health information (e.g. reminders of clinic appointments or drug usage);
farming information (e.g. obtaining of best selling prices for commodities); dissemination of
© Ministry of Communications and Transport, 2009
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news, exam results, interaction with government, etc.: both pull and push services. See, for
example, www.farmprices.co.zm.
iSchool
AfriConnect have several projects in the public/development sector which are now operated by
a separate development company within AfriConnect. The major of these is the iSchool project,
outlined above.
iHealth / Zambian Portals
The company is beginning work in the health sector, and has launched a public portal of
Zambian-based health information at www.ihealth.zm.
AfriConnect will be delivering a number of other information portals during the course of the year
in order to create more Zambian content (directory services; news; e-government information;
social networking; Zambian equivalent of Yahoo; etc.) and consolidate international content, so
as to provide more reason to use the internet and to understand its benefits.
Training
AfriConnect Development are now the in-country partner for accreditation of the International
Computer Driving License (ICDL) training and testing. It has begun a major exercise to promote
the use of ICDL in Zambia – especially in government; commerce; and education – amongst all
institutions that use ICT as we believe it important to raise ICT awareness and literacy; promote
its better use; reduce support costs; and improve productivity.
Traditional Government
Internet connections are being provided to 4 of the paramount chiefs in Zambia, using funding
from MCT, and they will be provided with all necessary equipment and training. Websites will
also be created for them, as well as the towns in which they operate. It is hoped that this will
become a model for further connectivity to traditional leaders.
© Ministry of Communications and Transport, 2009
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Glossary of Terms Used
3G/3.5G.
3rd Generation: a family of standards for wireless communications
defined by the International Telecommunication Union, which includes
GSM EDGE, UMTS, and CDMA2000 as well as DECT and WiMAX.
Services include wide-area wireless voice telephone, video calls, and
wireless data, all in a mobile environment. Compared to 2G and 2.5G
services, 3G allows simultaneous use of speech and data services and
higher data rates (up to 14.4 Mbit/s on the downlink and 5.8 Mbit/s on
the uplink with HSPA+). Thus, 3G networks enable network operators
to offer users a wider range of more advanced services while achieving
greater network capacity through improved spectral efficiency.
EDGE
Enhanced Data rates for GSM Evolution (EDGE) (also known as
Enhanced GPRS (EGPRS), or IMT Single Carrier (IMT-SC)) is a backwardcompatible digital mobile phone technology that allows improved data
transmission rates, as an extension on top of standard GSM. EDGE is
considered a 3G radio technology and is part of ITU's 3G definition.[1]
EDGE was deployed on GSM networks beginning in 2003
Fibre
Fibre-optic cables consist of thin filaments of glass (or other
transparent materials) that can carry beams of light. A laser
transmitter encodes frequency signals into pulses of light and sends
them down the optical fibre to a receiver, which translates the light
signals back into frequencies. Less susceptible to noise and
interference than other kinds of cables, optical fibres can transmit data
greater distances without amplification. But because the glass
filaments are fragile, optical fibre must be run underground rather
than overhead on telephone poles. The fibre cables connecting Africa
to the rest of the world are laid under the sea.
GPRS
General packet radio service (GPRS) is a packet oriented mobile data
service available to users of the 2G cellular communication systems
global system for mobile communications (GSM), as well as in the 3G
systems. In the 2G systems, GPRS provides data rates of 56-114 kbit/s.
GPRS data transfer is typically charged per megabyte of traffic
transferred, while data communication via traditional circuit switching
is billed per minute of connection time, independent of whether the
user actually is using the capacity or is in an idle state. GPRS is a besteffort packet switched service, as opposed to circuit switching, where
a certain quality of service (QoS) is guaranteed during the connection
for non-mobile users.
GSM
Global System for Mobile communications (originally Groupe Spécial
Mobile) is the most popular standard for mobile phones in the world.
It is estimated that 80% of the global mobile market uses the standard.
GSM is used by over 3 billion people across more than 212 countries
and territories. Its ubiquity makes international roaming very common
between mobile phone operators, enabling subscribers to use their
phones in many parts of the world. GSM differs from its predecessors
in that both signalling and speech channels are digital, and thus is
considered a second generation (2G) mobile phone system. This has
also meant that data communication was easy to build into the
system. GSM allows eight simultaneous calls on the same radio
frequency.
ISP
Internet service provider.
© Ministry of Communications and Transport, 2009
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LTE
Long Term Evolution is the fourth generation of radio technologies
designed to increase the capacity and speed of mobile telephone
networks. Where the current generation of mobile telecommunication
networks are collectively known as 3G, LTE has been given the moniker
of 4G.
MCT
Ministry of Communications and Transport, Government of the
Republic of Zambia.
MMS
Multimedia Messaging Service is a telecommunications standard for
sending messages that include multimedia objects (images, audio,
video, rich text). MMS is an extension of the SMS standard, allowing
longer message lengths and using WAP to display the content.
Netbook
A laptop computer designed primarily (although not exclusively) for
wireless communication and access to the Internet. Generally lower
cost than conventional laptop / notebook computers.
NGO
Non-governmental organisation.
POP
Point-of-presence (generally in relation to an ISP)
PSTN
Public switched telephone network. The conventional land-line
copper-based system.
SMS
Short Message Service uses standardised communications protocols
allowing the interchange of short text messages of up to 160
characters between mobile telephone devices. SMS text messaging is
the most widely used data application on the planet, with 2.4 billion
active users, or 74% of all mobile phone subscribers sending and
receiving text messages on their phones. Much used in Africa as a low
fixed cost way of communicating.
UAF/USF
Universal access fund / universal service fund. Monies put aside to
promote the extension of electronic communications to deeper rural
areas where there would conventionally be no business model for
doing so.
VSAT
Very small aperture terminal. A two-way satellite ground station with a
dish antenna that is smaller than 3 meters. VSATs access satellites in
geosynchronous orbit to relay data from small remote earth stations
(terminals) to other terminals (in mesh configurations) or master earth
station "hubs" (in star configurations). VSATs are most commonly used
to transmit narrowband data (e.g. point of sale transactions), or
broadband data (for the provision of Satellite Internet access to
remote locations, VoIP or video).
WiFi
Wireless Fidelity. Wi-Fi originally referred to the 802.11b specification
for wireless LANs, but it is now used to describe any of the 802.11
wireless networking specifications.
WiMAX
Worldwide
Interoperability
for
Microwave
Access.
A
telecommunications technology that provides wireless transmission of
data using a variety of transmission modes, from point-to-multipoint
links to portable and fully mobile[citation needed] Internet access. The
technology is based on the IEEE 802.16 standard (also called
Broadband Wireless Access). Operates in a non or near line of sight
mode with a good radius of coverage – up to at least 30km, making it
an good method of delivering last-mile broadband Internet in the
African context.
© Ministry of Communications and Transport, 2009
39