<incom> Fwd: [Fibre-for-africa] OPEN ACCESS EASSy

Sat Oct 21 18:19:25 CEST 2006

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From: Eric Osiakwan <eric at afrispa.org>
Date: Oct 20, 2006 7:12 PM
Subject: [Fibre-for-africa] OPEN ACCESS EASSy
To: Discuss at afrispa.org, AfriNIC Discuss
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OPEN ACCESS EASSy

By Eric M.K Osiakwan

Visiting Fellow and Scholar, DV Program, Stanford University

http://blogs.law.harvard.edu/eric/

In late 2004, I was admitted to the Digital Vision Program @ Stanford
University and around the same time invited by the WorldBank through
its Information for Development Programme (infoDev @ www.infodev.org)
to join other colleagues to conduct a study "Leveraging New
Technologies and Open Access Models: Options for Improving Backbone
Access in Developing Countries (with a Focus on Sub-Saharan Africa)" .
 The study was done under the auspices of Spintrack AB @
http://www.infodev.org/en/Document.10.aspx.

Recent experiences in a number of countries with "open access" models
for the financing and ownership of backbone telecommunications
infrastructure offer interesting insights into how new technologies,
including the migration to Internet Protocol (IP) based networks, make
possible new technical and business models for financing this
infrastructure buildout. Africa can learn from these experiences and
adapt.  In this paper, I look at Open Access in relation to the East
African Submarine System, known by the acronymn EASSy (see http://
www.eassy.org). In the wake of the fallout in moving this project
forward,  I build grounds for commonality, charting the path for
re-engagement by the various constituencies.

Open Access in the context of communication (Open Communication) means
that anyone, on equal conditions with a transparent relation between
cost and pricing, can get access to and share communication resources
on one level to provide value added services on another level in a
layered communication system architecture.

The concept of Open Access to communication resources is central in
the ongoing transformation of the communication market from a
"vertically integrated" market with a few operators owning and
operating everything between the physical medium and the end-user, to
an "open horizontal market" with an abundance of actors operating on
different levels and providing value added services on top of each
other. Put plainly, anyone can connect to anyone in a
technology-neutral framework that encourages innovative, low-cost
delivery to users. It encourages market entry from smaller, local
companies and seeks to ensure that no one entity can take a position
of dominant market power. It requires transparency to ensure
fair-trading within and between the layers based on clear, comparative
information on market prices and services. It seeks to build on the
characteristics of the IP network to allow devolved local solutions
rather than centralized ones.

Open Access is also about broad approach to policy and regulatory
issues that starts from the question: what do we want to bring about
outside of purely industry sector concerns? It places an emphasis on:
empowering citizens; encouraging local innovation; spurring economic
growth and investment; and getting the best from public and private
sector contributions. It is not simply about making micro-adjustments
to the technical rules of the policy and regulatory framework but
seeking to produce fundamental changes in the outcomes that can be
delivered through it.

The study published in August 2005, came at an opportune time, in that
it helped to inform and shape the international debate and planning
for the EASSy project now in the final planning stages. infoDev then
provided follow-up support for this dialogue and planning process both
by supporting the coordinating role of the NEPAD e-Africa Commission
relative to the EASSy project, and by supporting dialogue and joint
planning among civil society groups, and other key stakeholders,
seeking to promote open access approaches within Africa.

This ensured acceptance of open access by the government, incumbent
PTTs, Operators, ISPs, educational institutions, private investors and
more generally by civil society. However at the signing of the EASSy
protocol, which is the political framework for the build-out, there
has been a division among the various constituencies on how Open
Access is enshrined in the protocol.

EASSy in adhering to Open Access must align with the structure and
principles below;
Within the structural framework, the cable must differentiate
"Infrastructure" from "Services" where Infrastructure is seen more in
the "Ownership" realm whiles Service is seen in "Access to capacity".
A set of principle would hold for the ownership of the cable and those
principles would be different from those for access to capacity.

The most distinguishing feature of the Open Access approach is that,
ownership of the infrastructure DOES NOT GUARANTEE any access
(discriminatory or not) to capacity on the value chain for the
provision of service to the market.

Infrastructure ownership principles for the cable include;
The ownership of the EASSy cable must be in a public private
partnership involving Governments, PTTs, ISPs, Educational
Institutions, Civil Society and Consumers.
A fair distribution of these constituencies from the member countries
in an equal sub-regional distribution leading up to the Board of
Directors of the enterprise.
One set of rules must be established to identify the various
shareholders from the various countries in the different
constituencies
For the purposes of this exercise a Special Purpose Vehicle (SPV) must
be a legal entity with an African wide structure, which must must be
majority African owned in order to trade in the various countries.
The SPV must have a public interest combined with a private sector
approach in it's business model in order to ensure a "regulated return
on investment" to ensure cheap and affordable bandwidth to the
end-user.

Value Chain access to capacity for Service delivery principles for the
cable are;
The SPV must sell capacity to all entities who meet the legal and
regulatory requirements in each country directly and without
discrimination.
Service Providers shall be offered Transport Infrastructure Layer
access to different capacities depending on their requirements.
End Users shall be free to choose any local Service Provider connected
to the Regional Network.
The SPV shall not compete with Service Providers (its customers) by
offering services at the Services Layer directly to End Users.
All countries must create a regulatory structure that recognizes the SPV.
The SPV shall be formed, owned and operated in such a way as to
facilitate competition and to foster innovation at the Services Layer,
and where practical and commercially viable at all levels, with a view
to maximizing usage of the network and benefits to the End Users.

This sets out a framework for Open Access as it applies to the EASSy cable.  .

NB: These principles are drawn from the Open Access study conducted by
Anders Comstedt, Eric Osiakwan and Russell Southwood for InfoDEV @ the
WorldBank – http://www.infodev.org/en/Project.80.html

Eric M.K Osiakwan
Executive Secretary
AfrISPA (www.afrispa.org)
Tel: + 233.21.258800
Fax: + 233.21.258811
Cell: + 233.244.386792
Handle: eosiakwan
Snail Mail: Pmb 208, Accra-North
Office: BusyInternet - 42 Ring Road Central, Accra-North
Blog: http://blogs.law.harvard.edu/eric/
Slang: "Tomorrow Now"

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