Tag Archives: liquid telecom

Demand for World Cup Streaming Exposes lack of Local Content

If there is one thing we picked from the 2018 World Cup in Russia is that video streaming of entertainment content in developing countries is approaching mainstream.

As Internet penetration continues to skyrocket and the price of Internet enabled devices and data reduces, more people in developing countries today are live-streaming their entertainment demands.

This has been evidenced by the growing popularity of video streaming services like Netflix, YouTube and Showmax among young people in developing countries.

These platforms appeal especially to young people because of their vast repositories that offer content from across the globe at a few keystrokes. Netflix users alone collectively watch over 1 billion hours of content each week while it would take over 60,000 years to watch everything on YouTube.

These stats were demonstrated during the just concluded World Cup where millions of people across the world plugged in to catch up with the exhilarating action from 64 matches across stadiums in Russia.

Analysis by Internet traffic monitoring site Akamai indicate that it took just ten days to surpass the previous video streaming record set at the 2014 World Cup. By the end of the group stage, Akamai had streamed 65% more data from start to finish than it did in Brazil four years earlier.

Akamai reported the highest number of concurrent streams peaking at 9.7 million during the Mexico v/s Sweden match at the same time as South Korea lined up against Germany on 27 June.

This, compared to the 5 million viewing peak for the entire 2014 World Cup matches indicates an unprecedented rise in the number of online viewers from developing countries. The peak bandwidth for streaming in the first round in Russia was 23.8 Tbps, compared with 6.99 Tbps during Brazil’s World Cup.

Kwese and Kwese iflix, one of the continent’s fastest growing streaming services, has developed video streaming partnerships with mobile network operators across Africa (during the world cup season) and according to Mr. Ben Roberts, CTO of Liquid Telecom, the number of number of video streaming customers has risen as a result.

Telecommunications service provider Liquid Group provides host infrastructure for Kwese and Kwese iflix and Mr. Roberts noted that “Streaming is steadily growing, getting more and more each day”.  “The most popular was the Nigeria vs Argentina (not surprising), but also Germany and Brazil’s last game of the first stage exceeded previous games.”

However Mr. Roberts states streaming among African users has been heavier on matters that touch closer home.

“It’s not the biggest ‘internet event’ in Africa we have seen this year, with the traffic around the coup in Zimbabwe and subsequent resignation of Robert Mugabe being something that turned up the traffic on all channels and links across Africa to a very noticeable degree,” he said.

This means while African consumers demand and are ready to spend on video streaming, the lack of local content is a gap that provides opportunities for developers and creators.

More than 90 percent of African Internet content is hosted outside the continent and this means server request from the continent take much longer because they have to go through exchange points in Europe or North America. Currently more than 57 percent of Kenya’s web content is hosted in North America and 25 per cent in Europe with just 10 per cent in Africa according to data from Alexa.

This implies a longer turnaround for connectivity requests at the same time and slower download speeds.

Some streaming service providers have tried to create local hosting sites. Early last year ShowMax signed a partnership with SEACOM to have its servers hosted in Nairobi to better serve its East African audiences.

This is however only a stopgap measure because the content available to users is still largely North American and European. African content creators need to rise up to the challenge of providing the entertainment needs of a hungry, tech savvy and discerning population.

Read or download our report –  Promoting Content In Africa

Why more is better when it comes to subsea cables and Africa

By Ben Roberts, Liquid Telecom

Between 2009 and 2012, seven major subsea cables were deployed along the east and west coasts of Africa, bringing an abundance of international connectivity to the continent for the first time.

An estimated $3 billion poured into the construction of these undersea networks, which have played an important role in developing Africa’s internet ecosystem.

Today, most of these cables are less than 7 years old – to add some perspective, the average lifespan of a subsea cable is 25 years – and not all of their capacity has been lit.

Meanwhile, a new generation of subsea cables are making their way to Africa.

Earlier in the year, Liquid Telecom announced its first subsea cable project, called Liquid Sea, which will run the length of Africa’s east coast with onwards connectivity to Europe.

We are not alone in this endeavor – other projects in the pipeline include the Djibouti-Africa Regional Express (DARE), as well as the consortium backed Africa-1 and O2Cs. There is even a proposed project to connect Africa to Latin America with a subsea cable link for the first time; the South Africa Cable System (SACS).

This has prompted cynicism from some industry leaders and market watchers, who suggest that all these new systems are unnecessary.

Africa’s phenomenal demand for internet access suggests otherwise – and efforts are currently underway to ensure that 80% of all African internet content is being served from Africa.

Here are six reasons why more subsea cables are beneficial to the market and the continent as a whole:

1)         Connecting the unconnected: Not all African countries were connected by the first wave of subsea cables. Some countries such as Eritrea and Somaliland were overlooked, while there is fresh demand for access to cables from other nations – for example, northern Mozambique requires reliable high-speed internet to support the rise of new oil and gas reserves.

2)         Greater diversity: At the moment, there are a limited number of African landing stations where the major subsea cable systems interconnect, and traffic is sent onwards to Europe and Asia. This enables certain companies to act as ‘gatekeepers’ and charge excessive cross-connect fees, which in some cases can be about 50% of the total cost of bandwidth sold in Africa – just for provisioning a 30 metre piece of fibre optic cable to a landing station. New cables bring diversity and increase choice so that traffic can be switched to the best location, as well as avoid excessive fees.

3)         Increasing competition: More subsea cables and landing stations will bring greater competition and geographic redundancy. Countries such as the Seychelles are currently reliant on one single subsea cable, with satellite as the only back-up. Elsewhere, countries reliant on one landing station owned by one company will always suffer from high bandwidth pricing. Two landing stations will help improve resiliency and pricing, but four or five landing stations will really start to drive pricing down as well as improve reliability.

4)         New players in the market: There’s been dramatic changes in the market since the South Atlantic-3 was built in the early 2000s by a consortium of copper network and fixed-line operators. Today’s telecoms ecosystem is much more diverse and features many more players (including OTTs), which were unrepresented in the first wave of subsea cable systems. These new players require capacity and are investing in new systems accordingly.

5)         Advancements in technology: Technology is advancing all the time, but many of the older cable systems operate using SDH-based networks, with repeater spacing and fibre types that prevent upgrades. More modern systems can upgrade using 100G wavelengths, but new systems can leverage this mega capacity technology from day one.

6)         Keeping engineers in a job: The world has to keep building new cables in order to keep grey-haired engineers employed. Actually, they should hold off retirement just yet as the subsea cable industry is enjoying a major renaissance at the moment. We’ve seen lots of investment worldwide in new projects, and competition is heating up between vendors. In fact, many of them are offering great prices and many projects are also receiving government funding. There’s perhaps never been a better time to be a consultant or an engineer.