In some countries, several complete or partial backbone networks may exist as well as those of the incumbent. All of these can be considered part of the country’s backbone resource. The following are relevant:
- Competitive network operators (usually the mobile operators) might have built optical fibre links and/or microwave links to avoid relying on connections leased from incumbent network operators. This has been the case for mobile operators in several African countries; most developing countries have at least one mobile operator that possesses an extensive network. Mobile network operators tend to start with microwave links (which can conveniently use many of the towers for base stations), but turn to optical fibre links when capacity requirements grow. This pattern is strong in Nigeria [1]. In fact, in many countries the backbone networks of the mobile network operators are now more extensive than those of the incumbent network operator, even if they do not use optical fibre links in their core networks until justified by their own internal economics [2];
- Some specialised network operators might have constructed optical fibre links or microwave links purely to sell transmission and other network capabilities to service providers and to large companies. In developing countries such network operators are unusual, though there are examples of them of in Kenya [3] and Malawi; and
- Electricity, gas and railway companies increasingly have optical fibre links for their own purposes (or rights of way that permit them to provide optical fibre links), which typically carry important but rather small amounts of traffic. These links could be made available for public traffic if regulation permits. In Algeria, the state-owned oil and gas extraction company, and electricity and gas distribution company, have a joint venture to sell their excess transmission capacity [4]. But because these optical fibre links have usually been designed to satisfy internal company requirements, not national requirements—railway coverage, in particular—geographical limitations to these links may limit the contribution to existing telephony networks to very few routes. Nonetheless, as noted in Section 1.6.3, at the very least, electricity supply and telecommunications can be co-ordinated, as power poles and ducts can carry optical fibres with low marginal costs.
Encouraging and allowing companies to make their networks available for wholesale and public retail business is an important step in enhancing backbone networks because it increases competition and stimulates investment. There might be a need for safeguards, to prevent cross-subsidy, especially when the companies are dominant in their own main markets. However, mobile network operators in particular, may not feel that they would benefit from selling transmission and other network capabilities to potential competitors. In this case, regulators may consider open access regulation to ensure that backbones do become available.
END NOTES
- See MTN Launches 2,500km Fibre Optics Transmission Network (MTN, September, 2006).
- See Options for Terrestrial Connectivity in Sub-Saharan Africa (Anders Engvall and Olof Hesselmark, SIDA, March 2007).
- See About Us (Kenya Data Networks).
- See Sonatrach-Sonelgaz (Sonatrach, July 2007).