By Tom Arnold
More broadband, cheaper access and VoIP needed to drive Gulf growth says Paul Mountford
A shake-up is needed in the telecommunications regulatory environment in many GCC countries to make broadband services available to more people, the president of Emerging Markets for Cisco has said.
Paul Mountford said the cost of telecommunications and the banning of Voice over IP (VoIP) were also barriers holding back the rate of technological development.
Mountford said in many countries in the emerging markets it was only the top five percent of the population that could afford broadband prices.
“Having a regulatory environment that opens broadband out, makes it competitive and brings the prices down and starts to make it work for everyone means the economic output is tremendous – education improves, healthcare improves, public safety improves and productivity improves and you raise the standard of living,” he said.
It follows Cisco’s signing this week of a multi-million dollar deal to establish an internet data centre based in Bahrain to serve as a regional hub for Cisco’s ICT services.
The hub will support the delivery of multiple services and technologies including Cisco’s TelePresence and Unified Communications solutions to company offices in the region.
Mountford said: “We have made a decision to use Bahrain for our connections around the region and to India, which we’ve got a multi-billion dollar investment in.
"We’ve looked around and we’ve made a decision based around this country and the government, the regulatory body here has made it more attractive than some of the countries you would typically think you would go.
"We have more people in Saudi and UAE than here by a long stretch but as a communications hub this is far more attractive in terms of tariffs and Voice over IP, which is still not legal in some countries in the Middle East.”
Cisco announced that it plans to establish an office in the kingdom and will focus on recruiting new talent to address the growing local and regional opportunities.
It said it is also committed to building ICT capabilities through launching education initiatives and accelerating the deployment of Cisco Networking Academy sites, which provide skills training in ICT. At the moment Cisco has ten networking academies in Bahrain with 350 students.
“These initiatives will strengthen our cooperation with global technology providers through a stronger local presence to grow the ICT industry in the Kingdom of Bahrain and will help pave the way to attract direct foreign investments, a longstanding strategic objective of the government,” Sheikh Ahmed Bin Atiyat Allah Al Khalifa, minister of cabinet affairs, said at the announcement of the initiative.
Well said! Lower price/higher speeds will result in greater total revenue and hence greater profit, and 2nd and 3rd order benefits as noted in the article. Dubai, for instance has great e-government services access, but shouldn't access be affordable so that many can use this service?
As a sales man who represent a vendor for the VoIP technology and associated services what Paul has said is great stuff and no-brainer to anybody. What independent parties in this market/region, led by regulator should assess is the long term implications of opening up the services like VoIP and what comes under it. Primarily we are talking here about the following: 1. Total Cost of Ownership for the infrastructure required to support such services. 2. The current and future state of supply market for the infrastructure, how to address the monopolization & single vendor dominance over market. 3. Economic impact of such shake up according to Cisco? One aspect to such shake-up is where the money will go? 4. What impact such technology would have on national and homeland security? I strongly believe that there are more additional questions to add and answer before Paul's statement and remark about the market shakeup is logically acceptable.