New satellite connectivity model set to empower township/rural entrepreneurs
INTERNETBy BiztechAfrica - Aug. 17, 2012, 9:02 a.m.
Maxwell Technology has launched a new product, Satellite Hot Spot, which it says has the potential to transform the business model for providing connectivity to underserved communities in townships and rural areas.
World Bank research has shown a direct correlation between broadband penetration and gross domestic product (GDP): every 10% increase in broadband penetration increases economic growth by 1.38%.Broadband rollout is thus perceived as a vital driver of desperately needed job creation in South Africa, which is why it is a flagship project of the Department of Communications.
“However, finding the right business model for low-income areas where computers are in short supply has proved to be difficult,” says Kallie Carlsen, technical director at Maxwell Technology. “The problem has always been the high costs of putting in terrestrial infrastructure as against the lower rate of return. Satellite has always seemed to be the best technical alternative but, again, the business model hasn’t been right—until now. When we came across this product we were blown away because it has the potential to turn this sector on its head.”
The Satellite Hot Spot product is offered by Sat-Space Africa, a leading provider of reliable and innovative solutions to Africa’s connectivity challenges. It uses the AMOS 5 satellite to provide connectivity to even the most remote areas — with only onsite satellite dishes and routers required.
The product is aimed at rural entrepreneurs wanting to set up Internet cafes, lodges and hotels situated in remote areas and even wireless operators looking for a stable alternative or addition to their terrestrial infrastructure.
The key, says Carlsen, is the Satellite Hot Spot’s innovative billing model. The traditional per-month billing model means that the client is charged for bandwidth even if it is not sold on to end customers.
By contrast, the Satellite Hot Sport uses a router to connect to the Sat-Space billing system, allowing the entrepreneur to purchase vouchers per end user—in this way, connectivity is only charged for once it is used, effectively creating a prepaid model.
“This billing model is a huge innovation in the satellite business, and we are first to market in Africa,” says Shimri Lotan, the sales director of Sat-Space Africa. “We are creating the conditions to make Internet connectivity a reality for those living in remote areas. Every dollar invested in Internet connectivity has an immediate impact on the education, self-development and welfare of users.”
“The prepaid approach was pioneered here in South Africa and, one could argue, lies behind the phenomenal growth of our mobile market,” Carlsen observes. “I believe that by applying it to satellite connectivity, we are now in a position to change the dynamics of the broadband market in our underserviced areas.
It’s all about removing the risk for the resellers of connectivity, be they township/rural entrepreneurs or tourist destinations. The business is always cash positive and this means that it will be in a position to offer a cost-effective product to its customers—and because the cost is based on time and not bandwidth, the connectivity experience will also be superior.”
MORE INTERNET NEWS
NSE companies under-using social media: reportMost listed companies in Kenya are under-exploiting the power of social media, a new report indicates. Read More
Africa: UN launches 2014 online courses on Finance, Trade, and Intellectual PropertyThe United Nations Institute for Training and Research (UNITAR) has just launched the 2014 edition of the online training courses in financial management, international trade and intellectual property. Read More
AfDB officially unveils Africa Information Highway platformAfrica’s first “one-stop” data centre, the Africa Information Highway, was officially launched this week in Pretoria, South Africa, by the African Development Bank. Read More
Internet Solutions joins Alliance for Affordable InternetIS has become one of the first African network operators to join the Alliance for Affordable Internet. Read More
First African Blogger Awards now open for entriesEnter the continent’s very first awards programme that measures online and social influencers’ reach and influence. Read More
AfDB’s Africa Information Highway in roadshowThe Africa Information Highway Roadshow kicks off in Pretoria, South Africa, this week, to showcase what AfDB describes as the continent’s first “one-stop centre” for development data. Read More
Africa Child Online Protection Summit set for Uganda in AprilThe Africa Child Online Protection Summit will be held from 21 - 23 April at the Speke Resort in Muyonyo, Kampala. Read More
Cape Verde joins the African Virtual University as Member StateThe Republic of Cape Verde has signed the African Virtual University (AVU) Charter to become the 19th Member State. Read More
Fifteen counties targeted in AccessKenya network expansionAccessKenya says more counties have come on stream as the company rolls out its network expansion plan. Read More
FEATURED STORYMACRA demystifies spectrum management
Malawi's regulator explains the issues around spectrum allocation. Gregory Gondwe reports.
BEST READ NEWS
IN DEPTHYouthConnekt launches Mobile Apps for Human Development Challenge in Rwanda
Rwanda’s Ministry of Youth and ICT and the UNDP, in close collaboration with Motorola Solutions, will power a Mobile App Challenge that will be implemented by YouthConnekt.