The African Telecom Challenge

One initiative resulting from the meetings was the collaboration between Microsoft and South Africa’s telecommunications group Mobile Telephone Networks (MTN), to provide affordable Internet connection services in Africa.

The program is meant to provide consumers with flexible payment options, including monthly Internet contracts and pay-as-you-go PC purchases.

Mobile phone subscribers in Africa, while only 3 percent of the world’s total, have quickly surpassed the number of fixed-line telephone users. In five years, from 1997 to 2002, the number of cell phone users in Africa grew by 1,600 percent.

Recognizing the need for infrastructure development, the European Commission this week announced it will contribute US$1.25 billion annually over the next six years to various initiatives.

In addition to transport, energy and water projects, funds will also be allocated for IT networks with the goal of improving trade and communication.

The funds will only be a small portion of the continent’s needs, however. Africa currently needs to invest $11 billion per year to reach its tele-density targets, according to Research and Markets. It is expected that private industry will need to fund the majority of those requirements.