The case of the East African Community (EAC)
Transcription
The case of the East African Community (EAC)
Broadband Deployment and Digital Divide: The case of the East African Community (EAC) Capstone Research Project April 25, 2015 Gilbert Grant Chi-Tai Chen Rugved Bidkar Piyush Kumar Singh Interdisciplinary Telecom Program University of Colorado Boulder Dr. Martin Taschdjian Research Advisor University of Colorado Boulder I. INTRODUCTION Abstract—The evolving digital divide in the East African Community (EAC) poses a serious concern in multiple sectors including education, public services, and economic development. Various studies indicate that the lack of both healthy competition between backbone networks and infrastructure required for broadband deployment are some of the major causes of the current situation. Therefore, this research effort aims to find answers to the question of how broadband deployment in the terrain areas of the EAC can help bridge the digital divide and solve the current socio-economic problems. A. Statement of the Problem There is a growing consensus that broadband should be ubiquitous. The growing digital gap that is taking shape in the East African Community (EAC), however, poses a serious concern [3]. Most of the people in this region of Africa do not have access to, or are unable to afford broadband. As a result, there is a lack of participation in basic services such as eLearning, e-Government, and e-Health which should be taken as key baselines for infrastructure. Looking at the issue from an interdisciplinary perspective, our study strives to subdivide the problem into three different categories: Technology, Economy and Policy. Unlike the current situation where the VSAT (Very Small Aperture Terminal) satellite is the main source of internet access, this study intends to describe a technologically suitable environment that enables a sustainable economic growth pattern while keeping within the policy standards. The primary contribution of our investigation is its focus on broadband deployment in the five countries that make up the EAC: Uganda, Rwanda, Kenya, Tanzania, and Burundi that have come together to improve their global economic and political significance. B. Research Question How can broadband deployment in the terrain areas of the EAC help bridge the digital divide and contribute to solving the current socio-economic problems? In an attempt to find answers to this question, we divide it into three sub-problems: Technology, Economy, and Policy. 1) Sub-Problem 1- Technology To investigate the affordability, feasibility, and policy constraints limiting broadband deployment, the study team developed and implemented a survey questionnaire that was distributed to the public and to professional academics in the targeted region. Furthermore, the study assesses how broadband deployment can improve the lives of people in EAC countries by adding to educational opportunities, providing access to faster communication with the world, and improving levels of awareness and potential to generate employment. Dependency on the VSAT satellite for internet connection hurts efforts to bridge the digital divide in the EAC [4].While internet penetration reaches staggering numbers in the central cities such as Nairobi, Mombasa, Kigali, and Kampala, most rural areas rely on a download speed ranging from 128 kbps to a maximum of 1 Mbps and an upload speed ranging from 64 kbps to 256 kbps. Numerous other small communities and remote villages do not have basic connectivity at all [8]. Hence, we attempt to find out ways in which the diffusion of broadband deployment can support the goal of providing a high-bandwidth internet connection to a wide population base. Keywords—EAC; policy; economy; broadband deployment; VSAT; survey; education; Africa; Internet; 2) Sub-Problem 2- Economy The digital divide and the deployment of broadband networks in the EAC link directly to economic development in the region. This study evaluates the contribution of broadband 1 network penetration to the welfare and the growth of a sustainable economy in the region. three areas of interest categorized by the technology, economy, and policy, and collect the quantitative data needed, we utilized some of the publicly available sources including Google Scholar searches, the International Telecommunications Union (ITU) database, and the African Development Bank (ADB). 3) Sub-Problem 3- Policy The fundamental building blocks of Information and Communications Technology (ICT) in the context of the EAC are sub-divided into three categories: (a) access – supply or connectivity with the intent to bring networks everywhere and to improve the availability and affordability of broadband; (b) adaptation – demand or usage with the aim to stimulate ICT and to make utilization of deployed networks more effective; and (c) competition – with the objective to maintain a competitive environment, sustain growth of broadband penetration, drive innovation, and deliver consumer benefits such as affordability [4]. A. Technology For the technology aspect of the digital divide, we were interested to know what the most common broadband technologies used by the Internet subscribers in the area (i.e., ADSL, fiber-optics, or cellular - 2G, 3G, or 4G). Thereafter, our focus was to determine the most suitable technology and technically suitable environment for the deployment of broadband access throughout the region. II. LITERATURE REVIEW B. Economy To effectively and efficiently utilize the broadband technology, we figured that it was critical to know the subscribers’ purchasing power and people’s attitudes toward the related technologies and applications, including the Internet. Therefore, we looked at the questions of whether the situation of economic development in the region favored the expansion of broadband technology and if there is any bottleneck in the economy that limits the opportunities and the benefits of using broadband technology. Several researchers have looked at the issue of broadband deployment and digital divide in an effort to help bridge the gap of technological information inequality in developing countries [3], [5]. We began our literature review by subdividing our research question into three sub-problems: technology, economy, and policy. In all three categories, we considered all of the existing parameters in an effort to capture the detected trends appropriately. During the course of reviewing the World Bank’s database and multiple other research reports, one major point that kept on capturing our attention is that, despite the empirical evidence that the digital divide is widening, relative to universalization of technological capacity [5], various obstacles continue to exist throughout the developing world [3]. In the case of the EAC, broadband ICT is closely tied with strategies for economic development; however, the lack of healthy competition between backbone networks and infrastructure required for broadband deployment limits the progress in both sectors [3]. As a result, the price remains high and quality of service remains poor [1]. On the economic side of our research question, we studied the World Bank’s economic information on income in all five countries that make up the EAC and compared it to the data obtained from the survey questionnaires that we deployed to the general public and professional academics in the EAC. The combined data is a valuable contribution to the body of knowledge regarding the creation of a technologically suitable environment, enabling sustainable economic growth in the region. C. Policy In our policy research, we used various Internet searches in an attempt to understand the current telecommunications regulations and policies of EAC countries toward broadband deployment and expansion. III. RESEARCH METHODOLOGY Fig I. Countries Comprising the EAC (shown in yellow) [25] During the course of our research, we learned that investigating the cause of the digital divide requires an approach that not only describes relationships between variables, but also the experiences of people. In this study, we used the mixed-methods research approach, consisting of two components: a quantitative method to examine publicly available data about the digital divide and a qualitative method to seek insights through survey questionnaires. To answer the IV. RESEARCH RESULTS A. Technology With the Internet of Things around the corner, the question is not if, but when the entire world is going to go online. Our 2 investigative analysis has led us to believe that the greatest challenge in bridging the digital gap that exists in the EAC revolves around the “Digital Divide Equation” [11]. In other words, there is a need to plan, design, and implement an intraregional strategy that coordinates all affairs within the telecommunication sector of the EAC. For a long time, satellite-based communications have been the major source of telecommunication linkage between the EAC and the rest of the world [8]. As such, the prices for access have been too high for ordinary citizens who would need it to advertise their products, apply for jobs, study for school, etc. Our research shows that the EAC is one of the regions in the world that suffers from an increasing digital inequality, resulting mostly from scarce, unreliable, and expensive Internet connectivity. The recent introduction of the East African Submarine Cable System (EASSy) project, however, is expected to bring about changes in the near future [9]. This is a multinational effort to lay an undersea fiber-optic cable covering the entire length of the eastern coast of Africa (approximately 10,000 kilometers) [9]. The cable originates from the coast of Mtunzini, South Africa and ends at the port of Sudan, Sudan, landing in several points along the eastern coast of Africa, including Mozambique, Madagascar, Tanzania, Kenya, Somalia, and Djibouti. Figure IV below depicts the geographical area of coverage [9], [11]. Presently, all five countries that make up the EAC rely largely on the old and inadequate terrestrial infrastructure of ground stations that link via satellite to reach the rest of the continent and the world [11]. This connection offers a very limited capacity at a very high cost. The VSAT satellite connection that is used in the region offers a maximum upload speed of 256 kbps and download speed of 1Mbps [1]. As it is shown in the figure II below, the field study that we performed in the two remote villages, one big city, and one university campus in Rwanda showed that 70% of Internet users find the price of Internet access to be too high, while only 11% feel that it is just fine. Figure III also shows that 63.4% of the Internet users live in rural areas, while 36.6% reside in cities. Fig IV. Landing Points of the EASSy Cable [9] This project is perceived by many in the region to be the most appropriate means of closing the existing digital divide. Once complete, EASSy will provide the EAC countries with access to a faster and more affordable means of communication with the rest of the world. Additionally, it will bring about closer inter-regional integration, not only technologically, but also socially and economically. “The total capacity is projected to reach 640 GB/s with a design life expectancy of 25 years” [9]. Although the undersea cable-laying related activities have been completed and the cable has reached the shores of Mombasa and Dar-es-Salaam as of 2008, the majority of the people within these EAC countries still have not seen the benefits of this much anticipated technology [10], [11]. Fig II. Price of Internet Access To respond to the consumers’ needs and ultimately make an effective use of the EASSy, it is imperative that each of the five EAC countries, Burundi, Rwanda, Tanzania, Kenya, and Uganda, plan, design, and implement a methodology to extend (deploy) branches of the EASSy technology to local communities, including rural areas where the overall majority of the ICT consumers reside. Technically speaking, however, we cannot discuss the extension of the EASSy to all countries, cities, towns, and villages of the EAC without pointing out that three out of the five countries of the EAC, Rwanda, Burundi, and Uganda, are geographically land-locked [9], [10]. In essence, these countries don’t have a direct access to the Indian Ocean or Cable System. Therefore, there is a need for a dynamic collaboration by all five member countries to achieve these inter-land connections. This initiative would require a collaboration with the local and regional Power and Oil companies in order to use existing infrastructure. Fig III. Number of Internet Users by Area of Residence 3 We envision that the overall improvement of the ICT in the region is, in part, going to depend on the quality, effort, and commitment of each country’s local politics, although this is outside of the scope of this particular study. To take full advantage of the EASSy and ultimately narrow the digital divide in the region, each country needs to roll out an optimized, internal communication network. This will require extensive funding and the will of outside sponsors. The implementation of all steps mentioned throughout this study will lead to improved competition in the quality of services and improved pricing among the major regional providers, including those using the new fiber-optic technology and those using satellite-based connection. GDP per capita B. Economy 2011 2012 2013 Burundi 259 271 294.2 Tanzania 553.1 650.1 742.6 Uganda 543.4 614.5 633.6 Kenya 868.7 989.3 1055.2 595 644 709.4 625.5 714.2 768.9 Rwanda “There are two key areas that have been particularly important for the economic and regulatory environments of the EAC; they include the improved fiber-optic links between the region and the rest of the world and the expansion of mobile telephony and related services, notably mobile money. In July 2009, the first under-sea fiber optic cable network, SEACOM, reached Kenya, the United Republic of Tanzania and Uganda. It was soon thereafter connected with Rwanda. This marked the beginning of an era of radically faster and cheaper Internet use in the EAC” [12]. In 2010, the other submarine fiber optic cable system, EASSy became operational along the East and South African coasts to service voice, data, video and Internet needs of the region [12]. However, these improvements in backbone facilities do not guarantee the EAC people an affordable access to broadband network and related applications. As aforementioned, the EAC people still heavily relies on satellite and mobile network for communications and the infrastructure in access network is still inadequate in the region. Average mobile penetration in the EAC had reached 40 subscriptions per 100 inhabitants in 2010, with the highest level noted in Kenya (61) and the lowest in Burundi (14) [12]. East Africa Fig V. GDP per capita of the EAC [14] Many forecasts of broadband penetration in developing countries are based solely on the GDP or per-capita GDP. In a recent report, the Organization for Economic Co-operation and Development (OECD) points out that the median monthly subscription charge for low speed broadband in developed countries was roughly US$26 as of September 2008. (Other significant charges exist based on the volume of data downloaded.) On an annual basis, this subscription rate is equivalent to about 1 percent of income based on the average nominal (current dollar) per-capita income for developed countries—about $31,600 in 2006 [15]. That means broadband affordability is not a material issue for the vast majority of these households in developed countries. However, at the same price, this relative percentage of income may be as high as 10 percent for many developing countries with smaller percapita incomes. To forecast the broadband penetration rate in developing countries, it is necessary to determine which specific subset of the population can actually afford broadband. Generally, when the annual broadband expenditure is priced at more than 2 to 5 percent of a household’s income, broadband is considered unaffordable [15]. Our questionnaires analysis shows that 70% of the people who responded to our questionnaires feel that Internet access is still too expensive and this result echoes Cisco’s findings. a) General Performance and Purchasing Power: The pace of Africa’s GDP rose twice in the 1980s and the 1990s. The overall purchasing power of the people in the EAC is increasing. Telecom, banking, and retail are flourishing, although only Kenya’s GDP per capita is more than US$1,000 per year and all EAC members are still defined as the least developed countries (LDCs) by the International Telecommunications Union (ITU) and the World Trade Organization (WTO) [13]. As Microsoft said, broadband is the oxygen of the digital revolution. We have to recognize the importance of broadband networking and related applications to the regional economic development in each corner of the world, even though it suffered the disadvantage of relatively less development of telecommunications infrastructure. Erickson’s research indicates that the double rise of broadband speed will result in a 0.3 percentage of GDP growth [14]. However, Erickson’s research is mainly based on the data of developed countries, and this correlation between broadband deployment and the economic growth may not be the case in less developed countries (LDCs), including the EAC members. The relatively low per capita GDP of EAC members may result in less affordable income spending on broadband subscriptions. Figure V shows the GDP per capita of EAC members in recent years (2011 – 2013). b) Economic Factors that Influence the Telecommunications Industry: Literature about the digital divide is mainly focused on, but is not limited to, four categories: income, living area (urban or rural), education level, and gender. In the realm of economy, educational level is the other important factor that influences the economic development in the region and then the broadband deployment. Up to 2013, only Tanzania and Uganda’s literacy rates were higher than 70% and only Kenya’s primary school completion rate was higher than 70% [16]. This also results in the bottleneck of broadband development and digital divide in the region. As aforementioned, mobile communications have remarkable growth and are more dominant for broadband applications in the region. Fixed-line communication and fixed broadband 4 connect a call that ‘terminates’ on the latter’s network However, the poor performance of the EAC’s telecommunication operators’ finance was attributed to the low spending power of most subscribers, with research findings indicating low average revenue per user (ARPU), which ultimately affected the profits of the operators. According to the ARPU data released in 2013, “Rwandan mobile phone users spend an average of $2 per month, while Kenya subscribers lead, at $6.2, followed by Tanzania ($4.4) and Ugandan, $3.5. The low ARPU means that majority of mobile phone users in Rwanda are low-end subscribers, with minimal ability to spend on mobile value added solutions, which reduces the effective rate of revenue realization per minute for the operators. With the low propensity to consume telecom products, operators naturally find it difficult to make returns on investments” [20]. It is rational to believe that the gap between the telecommunications infrastructure in urban and rural areas is also a bottleneck of broadband deployment. According to the research and the prediction of the McKinsey Global Institute, there will be a 50% portion of African living in cities by 2030 [21]. However, regarding the fixed-line and mobile communications development in the EAC we just discussed, the difference between urban and rural areas will have no significant impact on the EAC’s broadband deployment. applications are still less developed with few subscriptions although the mobile subscription in all 49 LDCs, including all five EAC members, is just 0.5% compared to that of the rest of the world [17]. Figure VI below shows ITU’s data concerning the number of fixed lines compared to the percentage of the population in the EAC. Only Kenya has an index that is more than 1%. Figure VII shows the global fixedbroadband subscription per 100 inhabitants, by speed, in early 2013. 2007 2008 2009 Tanzania 0.40 0.29 0.4 Uganda 0.54 0.53 0.71 Kenya 1.23 1.67 1.67 Rwanda 0.24 0.17 0.33 Burundi N/A N/A N/A Fig VI. Fixed-lines Compared to the Percentage of the Population [17] c) Regulation and Competition in Telecommunications Sector: Regulation is the other reason that explains the lack of competition of the EAC’s telecommunications industry. According to ITU’s database, among 49 LDCs, including all five EAC members, there are 27 whose incumbent fixed-line operator are fully state-owned, including all EAC members’ telecommunications carriers [22]. There is still no robust telecommunications regulation that guarantees the competition and the universal access across the EAC. The East Africa Regulatory, Postal and Telecommunications Organization (EARPTO), which has since been renamed the East Africa Communication Organization (EACO), published “Guidelines on Interconnection and Access for Telecommunications Networks and Services within the Telecommunications Networks and Services within the East Africa Community.” EACO has not as yet been brought into the legal framework of the EAC, but its directives are supposed to guide all of the national regulatory authorities [23]. Fig VII. Global Fixed-broadband Subscription per 100 Inhabitants [17] According to Argent’s research, among all EAC members, Rwanda has seen explosive growth in mobile telecommunications over the past decade [18]. Uptake of mobile communications has grown from less than 100,000 subscribers in 2003 to more than 4 million today, with annual growth in the market in the double digits for most of the past decade. Products offered in Rwanda, especially in the central cities such as Kigali and Huye are now similar with those available in the most developed markets, and prices have declined substantially. But, this decline of mobile device price does not result in the decrease of the EAC people’s cost of mobile communications. As mentioned earlier, the EAC people still feel mobile subscription is expensive in the region. “Fixed line telephony, operated by Rwandatel, makes up less than 1% of all subscribers. The Internet Service Provider (ISP) market is much less concentrated, with six operators currently operational and another three due to begin” [18]. Rwanda’s case is not unique in the EAC. The absence of effective competition and resulting pricing is the most important factor that restricts telecommunications penetration in EAC. This is especially true in the case of Rwanda’s mobile communication in terms of the mobile termination rate and on-net/off-net different pricing [19]. Mobile termination rates are the prices that a mobile network operator must pay to another operator to d) Reciprocal Causation - Economic Development and Broadband Penetration: The growth of GDP and per capita GDP do not account for all economic development. However, it is difficult to establish a mathematical model that explains the correlation between the broadband penetration and the improvement of economic development due to many factors that influence the economic development. Such factors include the improvement of information transparency and gender equality, which are not easily quantified and measured. The lack of quantification of these “spillover” effects may result in the underestimate of the broadband benefits in developing countries including the EAC 5 members. We find that there is a reciprocal causation between EAC countries’ less developed economies and the digital divide, including the relatively poor development in broadband applications, which is a vicious cycle. It is difficult to tell the difference between the reasons and the results of the EAC’s lack of development of the broadband network and related applications. However, as Nwana argued, “ any baby steps are better than none because all African countries must be charting their way to be on the path of knowledge-based economies, and fixed network would be invaluable to such transformation. This is because, ultimately, radio spectrum is limited by Shannon’s law, whilst fiber optic cable can provide virtually unlimited capacity with more fiber.”[23] Technology in general is undoubtedly central to the growth process, but the less developed countries like the EAC members appear illprepared to benefit from the opportunities that the broadband Internet does present—they lack the physical and human capital, along with the institutions required, to exploit the eeconomy [23]. This phenomenon makes the value-added to broadband and related applications deployment in the EAC less than that in the developed countries. The deployment of broadband and related applications will have a positive impact on the EAC’s economic development; however, to enjoy the value-added to broadband and related applications, including e-commerce, e-hospital, e-farming, and e-education, the governments of EAC members and the international organizations including the African Development Bank (ADB) and the ITU also need further cooperation to design a more effective strategy for the EAC’s economic development. ownership requirements from 0 to 35%. For example, Uganda demands zero local equity ownership, whereas Tanzania has a 35% clause [25]. But even before equity ownership is discussed, the licenses need to be awarded. There are differences in the final authority that is responsible to awarding licenses. The authority is scattered between either the National Regulatory Agencies, partner states, or the ministries. Thus, we found that there is a difference in the authority and their criteria in awarding the licenses. 2) Tariff Regulation: The tariff regulation in the EAC countries can be categorized into two types: Self-regulation and Strictregulation. The Communications Commission of Kenya (CCK) regulations determine how much the tariff should be after considering the cost of providing service and interconnection costs. In Tanzania, there is no regulation of tariffs by the Tanzania Communications Regulatory Authority (TCRA). It is a self-regulating type of environment, and at the same time it upholds the nondiscriminatory approach. The case with Uganda is similar. In Burundi, after the approval from the regulator, the operator fixes the costs. Whereas the suppliers of networks and services determine the tariff in Rwanda [26]. It is evident that there is a clash between selfregulation and strict-regulation in the EAC countries. Kenya and Burundi are more inclined towards strict-regulation, whereas the other countries have adopted self-regulation [25]. 3) Competition: C. Policy Kenya Communications Regulations (KCR) in section 5 and 8, allow the investigation of any license holder who violates and hinders in promoting a fair competition and equal treatment of all telecommunication businesses. Similarly, The Kenya Communications Tanzania’s TCRA Act, Rwanda’s Utilities Regulatory Agency, and Uganda’s Fair Competition Regulations rules (2005) promote competition. Burundi again does not have clear rules stating competition should exist in the communications industry. Through the EAB-BIN project, the National Regulatory Authorities are striving to set up a unified approach to maintain healthy competition in the EAC. Each country in the East African Community has over the years developed its own telecommunication and broadband policy structure. In order to assess why there is a difference between these policies governing the telecommunications sector, we need to look at the history of each country. For example, Kenya and Uganda were ruled by the British, Rwanda was a French colony, and Burundi was part of the Belgian colonial empire [24]. The colonial empires have left a huge mark on the way the government is structured and the approaches they take to instill any laws and regulations. Thus there is a divergence in the regulations and the structure for laws governing the telecommunication sector. 4) Quality of Service (QoS): Kenya, through section 39 of KCR, 2001 hints at the international standards for ensuring QoS [25]. The Tanzania Communications Regulatory Authority states that the customer must know what current QoS standards the provider is following and can challenge it if it goes against the rights of a telecommunications services customer. Uganda’s ‘equality of treatment’ clause allows for similar access and QoS to customers paying the same tariff, thus not allowing special treatment of certain subscribers. Rwanda’s position is not clear in that it states that the "regulator should ensure that the service is up to accepted standards in industry and the QoS parameters could be updated considering the level of congestion and link failures" [27]. In order to find a common ground for establishing new broadband policies, we have sorted out the nuances of the difference between the policies structures of each country. After going through numerous reports, the EAC infrastructure website, ICT documentation, and various conference papers, we have put together a detailed analysis of each component that make up telecom policy, law, and regulation outlines in every EAC country. 1) Licensing: An analysis of licensing clauses of each EAC country shows a divergence in the requirements of the local equity ownership. The license holders may encounter equity 6 possibility of conflicts of interest, inefficient sanctions, opaqueness, and misinterpretation of rules. 5) Universal Access: Uganda is way ahead of other EAC countries in establishing a Universal Access fund. It also has brought in action other various funds like Rural Communications Fund in the betterment of the infrastructure, introduction, and expansion of newer communication technologies in remote areas of the country. Looking at Rwanda, the Presidential decree and Law N44/2001 governing telecommunications have had key roles in setting up a Universal Access fund. Tanzania and Kenya have set up a Universal access fund through their Universal Communications Service Access Act (2006) and Kenya Communications Act (2009), respectively [25]. Thus, though Kenya, Rwanda, Uganda and Tanzania seem to have amendments for a Universal access fund Burundi does not [5]. • A common competition policy is crucial to maintain a healthy competition in the telecom industry in all five EAC countries. This allows for subduing any monopolistic behavior and the resulting ability to influence the telecom industry by practicing dominance. Universal service also goes hand in hand with maintaining healthy competition. A unified competition policy will allow normalization of rates and service to urban and rural areas, equally. • Another recommendation is that the EAC countries should agree upon a unique legal framework in cases dealing with the violation of antitrust laws. This is essential to bind all the network operators in the EAC countries together to the same legal authority under which any violation will subject them to the same legal action. 6) Interconnection: • A divide in the tariff regulation schemes means that the telecom markets in Kenya, Uganda, Rwanda, Burundi, and Tanzania cannot co-exist. Thus, it is essential for the countries to agree on either self-regulation or strict-regulation. After a detailed analysis of interconnection policies it can be concluded that all EAC countries agree upon nondiscrimination as it is upheld in all of the regulations. The East Africa Regulatory Postal and Telecommunications Organization (EARPTO) needs to consider which interconnection policies work for what kind of networks and how to make the interconnection policies technology neutral [29]. There are some core interconnection aspects, like control of network boundaries, sharing of network facilities, cost structures, core transit networks, and distinguishing the traffic from its origin. • Moreover, all countries need to agree upon amicably coexisting interconnection and Quality of Service (QoS) standards in order to provide an economically feasible and efficiently deployable framework to connect and operate each other’s network providers. • This will provide a common framework to help facilitate efficient implementation of broadband projects joining the EAC countries, better enforcement of rules, improved internet connectivity, and hence bridge the digital divide. A new unified regulation framework is necessary to tap the upcoming opportunities in the broadband sector in the East African Community and to address the challenges that come along with it. Unless an ISP-to-ISP interconnection is established, the internet traffic needs to be redirected to Europe and then re-routed back to a neighboring EAC country. Thus, even though the physical distance between the two countries is finite, the internet traffic needs to be re-routed from thousands of miles. This brings about externalities like fiber costs, transit costs, and maintenance overhead. This is the main reason for the high costs of internet connectivity and the resulting digital divide in the EAC. This shows an urgent need to develop a comprehensive interconnection policy outline and a unified legal and regulatory structure between the EAC countries. It was thus an important task in our research to first point out the differences in order to build common regulation governing all the five EAC countries. If a new comprehensive policy is to be made all 5 EAC countries need to agree on common licensing, tariff regulations, competition policies, universal service rules, and interconnection rules. V. DISCUSSION OF RESULTS A. Existing Conditions: The EAC is a regional inter-governmental organization established in 2000 [30]. The organization has had plans to develop different platforms that would help strengthen their economic and political structures such as: Custom Union, Common Market, Monetary Union/Common Currency, and Political Federation. During the initial phase of the custom union (1997-2000), the EAC tried to create a common denominator based on all five countries coming together and enhancing their political and social relations. The next phase, referred to as the common market (2001-2005), focused on the custom union when the organization started implementing the base for a common market [30], [31]. During the period of a monetary union (2006-2010), the organization strove to implement common market policies; and under the fourth model (2011-2016), all five member countries emphasized enhancing these common market policies and regulations. The overall focus for the rest of the decade (2011-2020) was to allot a larger monetary budget in the areas of technological development, long-term stability in a macro-economic environment, and creation of policies that encouraged healthy The following recommendations showcase the advantages of this new policy: • A common licensing framework will provide for comparable local equity ownership stakes and common authority to grant those licenses. This will allow standardization of the criteria to award the licenses and thus reduce the administrative overhead in terms of time and money. It will also remove the 7 availability of information impacts the lives of many people on a daily basis. Throughout the study, also we discussed a number of obstacles that limit the broadband penetration in the EAC, including, but not limited to the lack of required infrastructure to deploy broadband networks and the scarcity of resources, both in monetary form and human skillsets [32]. competitive environments, thus allowing new entrants into the market [30]. B. Existing Challenges: The tagline of the EAC is “One people, one destiny” [30]. However, the lack of healthy competition in the broadband market still makes it difficult for middle class and low-income people to afford the internet and related applications. Based on our analysis and findings, there is a tremendous opportunity to deploy fiber-optics, particularly, extending the East Africa Submarine Cable System (EASSy) throughout the region. The fact that the EAC is comprised of five countries, each having a different political and economic structure, results in great challenges that hinder the efforts of extending EASSy, especially to the land-locked countries (Burundi, Rwanda, and Uganda). B. Suggested Further Efforts: Our findings as discussed throughout the study influenced us to propose that future research among other things looks into to the possibility of establishing a mathematical model that can help explain the correlation between the EAC’s broadband deployment and the economic growth in the region. For example, one suggested approach follows: GDP per capita = aX1 + bX2 + cX3 + … + C C. Current Efforts: Our study shows that, in rural areas of the EAC, the majority of people are largely dependent on VSAT based connectivity, but this technology has an overly expensive cost. In the 21st century, the Internet is not a luxury but a necessity to everyday activities. In the region, there are multiple projects related to broadband communications, including the East African Community Broadband Infrastructure Network (EACBIN), which enhances cross-border infrastructure and the East African Communication Organization (EACO), which works to strengthen cooperation between all member counties [31]. Despite all existing challenges, we believe there are strong indications including the will of the people that once all necessary steps are implemented, the East African Cable System (EASSy) project will be a boon for the region [31]. As echoed throughout previous sections, some of the most important factors that determine the unaffordability of broadband in the region are: lack of broadband network infrastructure, lack of market competition, and lack of purchasing power. The overall current EAC’s economic structure can also be better positioned to enjoy the benefits of the broadband networking and the related applications, partly through the improvement of primary and secondary levels of education across the region. There is no question that the improvement in the broadband networking space will benefit the commonwealth of the region in terms of increased GDP or increased demand for broadband based services. However, to allow this to happen, EAC members need a robust common strategy for overall economic development both in short and long run planning. Where X1, X2, and X3 are the independent variables, including but not limited to the increase or decrease of investment in network infrastructure and the expenditure in education, then C is the constant that shows the current value of GDP per capita. a, b, and c are the coefficients that show the strength of the impact of the variable on the dependent variable, everything else equal. Such a model could then help the governments of the EAC countries and the interested regional and international organizations to isolate and evaluate the effect of the investment in the broadband networking. The dependent variables could also be the total GDP or equal to employment rate of any single EAC member. In addition to the establishment of a mathematical model, future research should also strive to study the experiences of the European Union (EU) in terms of the integration of cross-border telecommunication regulations as a paragon for the EAC. Other examples that are worth examining are those of the Economic Community of West African States (ECOWAS), the Eastern Caribbean Telecoms (ECTEL), which have attempted to create regional regulatory frameworks. At the time of this study, none of the EAC member countries were inclined to give up their sovereignty over telecommunications and broadband access. Nevertheless, further integration of the EAC’s telecommunications industry and regulation bodies would result in an economy of improved scale for all EAC members. ACKNOWLEDGMENT We wish to acknowledge and appreciate the professional guidance received from Dr. David Reed and Dr. Martin Taschdjian throughout the process of this research. Also, special thanks go to our field research assistants in the EAC; Ms. Janvière Uwurukundo, Mr. Arsene Twizeyimana, and Mr. Gilbert Ngiruwonsanga, for their assistance in gathering primary data used in our statistical analysis. VI. CONCLUSION AND FUTURE RESEARCH A. 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