High Speed Internet for Everyone in Africa
African economic growth has been impeded for many decades by government-imposed restrictions on telecommunications. This was crippling when the continent was underpopulated and competing with the U.S. and Europe. Now that the rest of the world is communicating via Internet, the population of Africa has exploded, and the competition is with India and China, the denial of telecommunications to Africans is an even worse drag on the economies of the region. With an increased population and a fixed amount of land, people in African can no longer remain on their farms, but when they crowd into cities such as Lagos or Nairobi, the results are not happy.
Foreign aid hasn’t worked very well. The majority of the aid is siphoned off by officials, bureaucrats, and NGO staff who live in $5,000/month houses and maintain an upper class American lifestyle in the midst of desperate poverty. Such aid that does get through is often counterproductive (source).
What if instead of sending aid to Africa, we sent a network of telecommunications that was priced competitively with Internet service in the rich world? For $25 per month, any African could obtain 3 Mbits/second. The network would be available everywhere on the continent, thus reducing the pressure on people to move into the crowded cities. A space-based network would be the only way to achieve universal service and bypass the telecom monopolies that plague many of these nations.
With a universal network priced at $25 per month, the monopolies would be forced to cut their prices and improve their service (currently South Africa’s telecom prices transmission through their cable to London at 100X the cost of other undersea cables). Presumably the residents of big cities would be served with faster cheaper service from DSL, fiber, or cable modems. That would not render the satellite-based system obsolete, however, as it would be useful to people in remote areas or in countries afflicted by war.
What would it cost to do this? Iridium, an old and slow network, cost approximately $5 billion to build and launch. http://en.wikipedia.org/wiki/Teledesic promised roughly the same kind of performance that would be required to serve Africa. It was set to cost $9 billion at the time that it was scrapped.
Total foreign aid since 1960, from all the rich countries combined, has been approximately $2.6 trillion, or 260 times the cost of building Teledesic. Building a system like this fits in nicely with the traditional First World concept of foreign aid: we give money to a poor country, but insist that it all be spent on products built in the donor country.
Africans would actually be grateful, I think, for such a system. All of Tanzania, 35 million people, currently share about 30 Mbits of Internet connectivity, the same amount of bandwidth that Verizon offers to American families in their homes via their FiOS service.
Full post, including comments