The satellite-based system will allow operators to extend their networks to areas with sparse populations, no electricity and low spending power -- factors that discourage investors from investing.
"The GSM unit costs between $25,000-$30,000 compared to normal GSM [Global System for Mobile Communications] base stations that cost $100,000, and the operator is expected to pay costs of electricity; this technology makes investment in rural areas more attractive," said Faraj Elamari, the CEO of RascomStar-QAF.
The system is expected to serve areas with a few subscribers to a maximum of 10,000. The unit can come as voice-only or with broadband capabilities, depending on operator preferences. RascomStar-QAF is a collaboration of 56 African countries and private investors, and operates a satellite beaming to all countries.
ViaSat has been working with RascomStar-QAF on other rural telephony projects and expects to work with operators and regulators to make it easier for single-hop communication between countries.
"The best thing with the GSM unit is that billing is per minute and operators get [an] integrated billing system on the VSAT platform; local operators are able to monitor and manage their network with access provided by RascomStar-QAF," said Harry Stribos, sales director at ViaSat.
The system has already been deployed in Libya and Cameroon, and the partners are working with five other countries to set up. The GSM unit is likely to be popular in landlocked countries that are yet to access fiber-optic cables.
"Fiber is only good for high-density areas; to run fiber to the village is expensive and unlikely to be self-sustaining -- maintenance costs are likely to bankrupt a company," added Stribos.
The project is expected to be embraced because of the low investments, and Stribos feels that satellite will complement fiber in underserved areas.