DRAFT
October 22, 1994
To: Colleagues
From: Lloyd Etheredge
Re: Good News (Maybe!): African Internet Connections
May I ask your advice?
Last year, I wrote "Somebody ought to . . ." memos to’several foundations, suggesting they

might research private data networks in Africa (e.g., connected with international tourism,
banking, CNN, etc.) These, I thought, probably were run by knowledgeable people and had
spare capacity. If so, I thought they might add Internet links at marginal cost, less than
building a completely new infrastructure.

Now, since Federico Mayor accepted the vision of the Rockefeller University working
group, and completing Internet connections to Africa is a high priority, I decided to take my
own advice. [I also think we have a responsibility - before turning to scarce philanthropic funds
- to explore private options. ]

Good news - based on a couple of days of calling around, here are my notes. I'm circulating
this very preliminary memo privately, to ask for additional leads and contacts... Who should
I call, that I'm not thinking of?

If the interest in building private-sector Internet nodes continues to look good, perhaps a 1-
day meeting could get things underway. UNESCO and Internet representatives, other
interested government and international organizations (e.g., USIA, NSF, World Bank,
Canadian agencies with an interest in African communications) and foundations, and the
potential vendors, to assess if there is a viable package (to all sites) and what needs to be added?

[Note: Background discussions are important to organize such a meeting. The Internet
Society's (Larry Landweber et al.) vision and leadership have been invaluable in identifying a
new technology of wireless modems. These allow Internet connections from a central downlink
site, without requiring local telephone lines (often, of limited capacity and reliability). Their
proposal is not widely known. But I have found that it gives - to current owners of private data
systems ~ a lowcost option for a key element in providing Internet services in Africa and other

UDC's.]
At this point:

A. There are at least six good prospects. ["Good" means: a.) a system linking sites in all (or
most) of Africa; b.) spare capacity; c.) a preliminary discussion has indicated an interest to
explore adding Internet services. ]

1.) SITA/ITS. SITA (Paris) is responsible for SABRE and other components of the
global airline reservations’ net, which is almost everywhere. They're a voluntary society
without a direct interest in new business. However, it turns out that they sub-contract
operations to ITS (International Telecommunication Services), a for-profit company,
which is interested in the possibility (i. e., given that there is anticipated demand) of
adding Internet services. Status: I've spoken with Mr. Charles Caltagirone in their
NYC office and have sent background materials.

2.) Amalgamated Bank of South Africa Network. The world's major banking network
(SWIFT) carries hundreds of billions of dollars of transactions/day. For security
reasons, they don't want any outside groups to use the system.

However, it turns-out that, with Nelson Mandela's leadership, the dedicated bank
satellite system in South Africa (used, primarily, only in the mornings for video-
conferencing and training) is to be expanded to provide educational links throughout
the country. There is an advisory board of the Presidents of the country's institutions of
higher education, and there have been preliminary contacts in this country (e.g., Black
College Satellite Network) to begin securing programs and other links to educational
resources.

The satellite link probably can cover much of the continent, beyond the borders of
South Africa. Status: I have sent initial material about Internet links to Dr. C. J.
Reinecke, President of Potchefstroomse University of Christian Higher Education, who
represents President Mandela and the Network.

3.) CNN. CNN satellite broadcasts are received by all major hotel chains throughout
Africa. The satellite dishes and personnel are a fixed investment, and if Internet
connections require only adding a black box and wireless modem, the add-on business
might be attractive. CNN's London office (which handles Africa) has offered to explore
the idea with the hotels. [The hotels also rent meeting rooms and, now that the
Internet's ST-II streaming protocol is available & allows reasonable videoconferencing,
the hotel chains also might be especially interested in a package that could allow them
to be sites for World Bank training programs, 2-way participation in international
scientific meetings that are taking place at other hotels in their chain, on other conti-
nents, etc.] Current status: background materials forwarded to Edward Boating,

2
Director of the London sales office. ]**

4.) AFRONET. The International African Communications Network is a private
company that has signed contracts to launch two new private communication satellites
(in 1995) to serve Africa. They are keenly interested in new business, and especially
think there will be a growing demand for Internet connections now that governments,
corporations, and educational institutions are beginning to use it internationally. Status:
background information provided to Dr. Bruce Lusignan, Director of the Communica-
tions Satellite Planning Center/Program for International Cooperation in Space at

Stanford University, an adviser to the project; and also to Edmond Adjovi, President of
AFRONET.

5.) Reuters. Reuters runs a private satellite and data net to almost every country in the
world - every site with a newspaper that subscribes to its service. Status: Senior engi-
neers at Reuter's Haupage Technical Center think a packet-switched Internet system
might make a great deal of economic sense: they will check to find names at the
international management level. [Note: If this doesn't go through, the next step is GTE
SpaceNet in McLean, VA. They are the systems integrator and operator for Reuters’
1,000 VSAT net. GTE SpaceNet is a leading for-profit company in the industry & on
the lookout for new business. ]

6.) General Electric Information Services. GE Information Services is one of several
major systems integrators (operators) who contract for private business satellite chan-
nels. I've started with GE because contacts tell me they operate packet-switched
business systems into Africa. Status: the US headquarters in Rockville, MD is establish-
ing contacts with their headquarters for African services (in Amsterdam).

B. Besides these six good prospects, there are probably twice as many commercial vendors who
should be contacted. For example (beyond GTE SpaceNet, mentioned above):

1.) Comtel-Spar in Santa Maria, CA (they are the system integrators for Liberia,
Mozambique, Zambia and Yemen and also several systems in mainland China);

2.) EDS (which manages internal communications of Marriott hotels, General Motors’
worldwide operations (with 10,000 VSATs), etc.;

3.) British Telecom, Cable & Wireless, and French Telecom (about services to former
colonies) and AT&T (which has an undersea cable around Africa under construction);

4.) BBC and MTV, both of whom are completing pan-African television channels;

3
5.) IntelSat. And PanAmSat (which gave a very attractive offer to the Internet Society
and leases satellite capacity throughout Africa). Either might wish to develop private
packet-switched networks for a wide class of users;

6.) The organizers of the new generation of low-earth-orbit satellites that offer point-
to-point links. There is not much demand over Africa; thus, there is a great deal of
spare capacity that might be sold at low marginal cost in a competitive market. a.)
Iridium (Motorola) has raised the capital it needs and will begin launching soon; and b.)
Microsoft (Gates/McCaw) 480 satellite system probably will have an African capacity
even in its early phase. However, the good immediate prospects include c.) Orbital/-
Teleglobe [Teleglobe is Canada's entry into global satellite & cellular systems] which
will launch 26 satellites in low earth orbit next year ($146 million) and 10 in 1996 for a
system that will allow limited point-to-point text & data services globally; d.) VITA
(Volunteers in Technical Assistance) in Rosslyn, VA.

7.) At least two governments have significant capacity on the continent. The USIA has
a prepaid INTELSAT channel, 24 hours/day, for its WorldNet television channel, plus
downlink sites at each Embassy and Legation. I am continuing discussions with USIA’s
planning groups: part of this capacity probably can be used, at least for the one-way
outbound digital links of startup projects. And the Russian government has announced
the availability (for lease or sale) of a former military satellite over the continent.

C. Most of the operators of these private data networks are truly global, in addition to African
connections. Thus, a "heads up" about what is afoot for global science and education could be
timely and helpful to stimulate their plans to build Internet services on a wider scale.

dy?