The document discusses the evolution of telecommunications, emphasizing the transition from traditional networks to fiber networks as a means of economic development and technological progression in Africa. It highlights the increasing reliance on tablets and mobile devices, overshadowing legacy systems, while also noting the strategic alliances between tech companies and network providers. Furthermore, it underscores the concept of 'creative destruction', emphasizing the need for innovation and adaptation in a rapidly changing market.

1. Digital City
We built a Fiber network
to destroy networks
capitalist economic development arises out
of the destruction of some prior economic
order

2. 29th November 2013
•We went from the board room to the road side.
•Network built and expanding.
•Now we go from road side back the drawing board.

3. 29th November 2013
The scrap heap
The future
Pile them high sell them cheap
Destruction

4. 29th November 2013
Creative Destruction
Destruction of one is the food of the other
PC sales will suffer the “most severe yearly
contraction on record” in 2013, falling more than 10%
as consumers switch to tablets and smartphones
Demand for so-called phablets, or oversized
smartphones, is playing a part in slowing tablet
growth

5. 29th November 2013
We built 2 Fiber networks already
• One to connect Core-to-Core
• Another to Connect Sites-to-Core (Spurs to sites)
Next we will build 3 more networks:
• One Buildings-to-Core (FTTB) (Planning and Implementation Stages and impact
evaluation)
• Public buildings Schools, government entities-to-Core
• Fronthaul Remote Radio Units (RRU)-to-Sites (Planning Stage)
Soon we will build another network:
• FTTH
• And repeat all that above in the rest of Kenya
And beyond the horizon, not very far, National Backbones as no government
operated fiber network will deliver Cost Quality and Scale:
• Did not deliver anywhere, won’t deliver here

6. 29th November 2013
Africans by passed the fixed line and went straight to mobile.
By passed the desktop computer went straight to laptops.
Now Africans will by pass the big screen TV and will go straight to tablets.
What has this to do with SDC you may be asking.
Everything is the answer

7. 29th November 2013
Cooperation and competition among differently partitioned sets of actors
Google wants fiber connected to Google Tablets.
Samsung, LG and Sony will lose.
Google developing upstream to capture the whole ads revenues streams.
Google builds fiber in Uganda. http://ictafrica.info/FullNews.php?id=11666
Overall good to have someone prodding the derrieres of the mobile operators
who have been just milking voice and SMS and 3G has never raised to its
promises.
The smart operators will develop into partners of Google for tablets and
Samsung, LG and Sony for smart TVs.
It is not the network.
It is who you are in bed with!

8. 29th November 2013
Why new networks destroys legacy networks?
There was a time when operators compete based on the network they owned.
You remember that time when RF Planners were the kings of the hill
Subcontractors were called ADC (Acquisition Design Construction).
Not any more. The network don’t matter.
And this is good.
What matters today ins who the operator is in bed with
Cooperation and competition among differently partitioned sets of actors
http://emnet.univie.ac.at/uploads/media/Albers_Schweiger.pdf

9. 29th November 2013
The Survival of the Cutest
We are in the business of making Safaricom look good.
Noticed the Best Network Kenya? Making Safaricom look good.
Why?
Because Safaricom wants this network to survive the destruction
Strategic alliances and networks among firms is one of the most striking
business trends of the last decades.
http://emnet.univie.ac.at/uploads/media/Albers_Schweiger.pdf
The better positioned an operator will be to serve the customers the more
attractive it is for alliance formation.
Like the prettiest girl in the ballroom is never without someone to dance
with…

10. 29th November 2013
Here comes the destruction thing:
It becomes interesting
Next we will build networks to serve EXTERNAL customers:
• One Buildings-to-Core (FTTB)
• Homes to Core (FTTH)
Now read this carefully because this concerns you
Building for INTERNAL customers is a breeze.
We know that.

11. 29th November 2013
Built for the INTERNAL customers
• 4 Project managers
• Three internal handovers
• 4 acceptances visits
• Freeze in December stops for a month
• Takes a year
FTTB FTTH
Built for the EXTERNAL customers:
• They want it now!

12. 29th November 2013
Every site is Point of Presence (PoPs)
We leverage PoPs on a concerted attack over Nairobi Metropolitan area
Consolidate all corporate traffic into the Safaricom Digital City
Traffic that is today spread among the small operators that built on
opportunity
The opportunists do not have PoP spread across Nairobi Metropolitan area
Digital City
The New King of PoP.

13. 29th November 2013
One risk being a champion of the sport that is not going to be in the 2020
Olympics Games.
The site, as we know will be a thing of the past.
Unless they become fiber companies
“The future of the Tower Companies is to become Fiber Companies”
https://www.linkedin.com/pulse/future-tower-companies-become-fiber-osvaldo-
coelho?trk=pulse_spock-articles
Once we are inside the buildings and connected to the PoPs we use carrier
class Wi-Fi, serve the costumers there and offload traffic into the Safaricom
Digital City.
Deloitte: Two-thirds of U.S. consumers prefer Wi-Fi over cellular
Survey also finds that 41% of U.S. consumers willing to pay more for faster
speeds
Usage of Wi-Fi while "out and about" and "at someone else's home" is also
increasing (with 44 percent of respondents indicating use at someone else's
home, compared to 37 percent in 2012), particularly in comparison to "at home"
and "at work.

14. 29th November 2013
Creative destruction refers to the incessant product and process innovation
mechanism by which new production units replace outdated ones.
Creative Destruction permeates very aspect of the business
The microwave is a dinosaur. Fiber is taking over
All skills of microwave will be redundant due to technical obsolescence

15. 29th November 2013
“Osvaldo do you have an advice for us?”
Sure!
Be Afraid. Be very Afraid.