Demand for Satellite Communications and Mobile Backhaul in Africa and Middle East

What do mobile communications carriers think of satellite backhaul and satellite Internet? Do they really care if satellite communication is integrated into their network planning?

Kenya is one of Africa's key rapidly rising markets. It has a population of around 40 million people. Safaricom, the largest mobile phone operator in the country, boasts of 18 million subscribers. While the market currently has a penetration rate of 60-70 percent, market analysts think that the growth in data services sector would be the main driving force for the growth of Safaricom. Commenting on the status of network planning at the company, Nzioka Waita, director of corporate affairs, said the company's 3G wireless broadband services have been in use for the past four years. Wireless broadband connectivity is mainly through the use of mobile phones, dongles and laptops. Waita said that company will continue to encourage the use of such mobile communications devices.

The 4G network is not yet fully developed and still in the formative stage. Whether it will be rolled out soon will depend on the availability of spectrum, he said. Video usage takes up a lot of bandwidth, and as a result, the conventional mobile broadband systems have had to be upgraded or replaced with IP/MPLS systems.

Fiber is a major option for Safaricom, so does satellite communications. Waita says the demand for satellite remains robust. Communication satellites play a critical role in mobile backhaul and wireless network communications in the country, especially in the northern part of Kenya. The high cost of terrestrial infrastructures there can be attributed to the vastness of the area and its low number of network users. Satellite still serve as a reliable back-up system for international service, especially during untoward events that could damage the submarine network systems. Waits expects less demand for satellite communications though as more terrestrial network systems are introduced in areas long served by commercial satellites.

Another major local player in African and Middle East mobile communications market is the MTN Group, which currently boasts of 150 million subscribers, 110 million of whom are Africans. MTN's African customers consume almost 700 Mhz of satellite communications capacity. MTN must rely on satellite and mobile backhaul to serve West Africa. Kamal Fayed, MTN Global Carrier Services general manager, said that satellite communications and mobile backhaul remain critical to its West African operations.

Although mobile phone carriers will deploy more 3G and 4G networks in key cities linked to terrestrial infrastructures, high-speed broadband will remain a big challenge in many remote zones like towns and small villages. In such areas, mobile backhaul via satellite is needed to to cost-efficiently deliver voice and data signals.

Fayed notes that the recent satellite capacity requirements of the company surprised him. There has been a dramatic increase in satellite demand for the past five years, and only recently did the demand stabilize.

The author is a satellite communications blogger. He has been a part of various mobile backhaul contracts in the Middle East and Asia-Pacific. He is an active social media user and satellite broadband forum moderator.

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