Alex Petropouliadis is vice president, Sales Africa, Gilat Satcom, the communication solutions provider that offers satellite and fiber-based connectivity solutions in Africa, Asia and the Middle East.
Petropouliadis joined Gilat Satcom in 2007 as a regional sales director and was appointed VP Sales Africa in 2012.
Prior to joining Gilat Satcom, Petropouliadis worked for Xerox and was part of the management team and has also worked for Creo as a sales director responsible for SADC sales.
Petropouliadis on a recent working visit to Nigeria spoke to peter ugwu on a wide range of issues.

Gilat Satcom’s Mission in Nigeria
Our main target is to become the biggest Internet Service Provider (ISP) Company in the country. I will say Gilat today has become a pan-African company.
What we do as a new strategy is to acquire businesses all over Africa. We are combining them under one brand, which is Gilat.
The idea started about a year ago and became a strategy for the company; since then we have been able to acquire three operations in Zambia, Nigeria and DRC.
Gilat’s core business has always been satellite and we have decided that the core focal area and the strategy should change hence we engage in buying home-grown and developing businesses in Africa. 
We have invested about $20 million in West-Indian Ocean Cable Consortium (WIOCC); the biggest investor in the EASSY cable in East Africa.
With this investment, we became a shareholder in WIOCC. Apart from that we also purchased capacity through this organization on the WIOCC cable.
The route is actually a big ring starting from London, going around the continent (Africa).  The good news is that we have a full redundancy ring with fibre capacity in Africa.
So, basically we engage in the technologies-satellite, which has always been our world business and we are continuing with it and engage in fiber connectivity.

African Focus
We decided to have local presence in Africa, starting with acquiring local presence. In addition to what we already have, we are finalizing the acquisitions of businesses in Niger and Burkina Faso; by end of 2013, we would have five full operational bases in Africa.
Our people oriented strategies will continue in 2014 with the aim to have seven additional ISPs in Africa.
Of course, we are not going to reach every country in Africa; it all depends on the business case of the country we have mapped out to reach out to, just like some countries in Central Africa.
Nigeria is one of our major targeted markets; here we have commenced 100% operation; today we emphasis on aspects of communication in Nigeria, especially in Abuja, Lagos and Port Harcourt.
We are planning to have redundant ring connecting the three cities; you can imagine a triangle moving from Lagos to Abuja, there to Port Harcourt and back to Lagos.
The impact would be that when have a cut, we can reroute the traffic back to the customers.  By this we are achieving full redundancy.
Secondly, we are part of WACS, we see our customers’ needs and the primary need is redundancy.
So, we are solving the challenges local in the country through the range-rings, but still not limited to one infrastructure so that when one network is down we should not be down as well.
We are actually taking capacity from other vendors like MainOne Cables, Glo 1, integrating them into one system; when a provider goes down, the other one comes up immediately.

The Last-Mile Infrastructure
Basically, we are a carrier of carriers. We sell capacities not directly to the home users.
However, we are introducing a latest technology into the market to mitigate some customers’ related challenges.
We supply capacity to other ISPs, cellular operators, among others. Unless a government office, we would not sell directly to the customer.
I understand there are challenges in the country today, eventually, as more competitors enter the market, more fibers laid, they will be solved.
Many countries in Europe, United States, and other developed countries started exactly the same way Nigeria and other African countries are going today.
The last mile is the problem, but the stakeholders-individuals, corporations and the nation at large will overcome that.
If you are to reach everywhere and reduce the price, then solving the challenge of last-mile is paramount in the process.
Taking the capacity from the shore is very cheap, but extending it to Port Harcourt is very high.
This is the biggest challenge that could be solved with more players coming in; Gilat is not the playing this game per say, we are not laying fiber rather we are adopting other infrastructure.

Gilat’s New Product
We have developed a new product and we are introducing them into the African market.
It is something that will basically give people internet connectivity in a very small modem (box) in a size of 20 meters.
There will be an accompanying dish of about 90 meters (the same used for the DSTV). The modem is able to reach high speed internet uplink through a cellular using the cellular modem (uplink) and downlink via satellite.

Idea behind the Innovation
Today, the market is used to the cellular data spurred by the evolution in mobile devices. 
The user experience about how the devices are connected for surfing the internet actually depends on the download, not the upload. For instance, when you want to get CNN online via Google, to cull up the page you are actually uploading a request to the web.
The internet sees it and downloads the site for your usage. The big content and the user experience depend on the downlink.
When you download you have the picture, texts, video, they are actually big contents; so the bigger the bandwidth is the better the user experience.
It makes people happy; saves time, energy, resources and enhances productivity. What we did is to leverage on the issue cellular companies have ingested on their towers and links.
We expect the product to get to every home. Another feature embedded in the product is WiFi, which allows people to share data or connectivity.
The price will be based on consumption level as well. We are segmenting it, because we are not targeting just home users alone; we are creating opportunities for the small and medium enterprises to benefit from it. Gilat will always be on the forefront of innovation in this regard.

Solutions for Banking and Financial Institutions
We have several banks working with us on deploying primary links for redundancy actualization. We are very well known in the industry.
Essentially, we have an iDirect hub in Lagos where any bank can connect for a capacity it can use for any application.
In the mean time, a number of banks are accepting the offer. The hub serves both for regular and private networks. We have invested about $1 million dollars in this hub just to set it up in the neighbourhood.

Crash of Broadband Internet Price in 2014
It is absolutely possible. However, it depends on the market segment the analysts are talking about. If you are talking about the home user, the answer is definitely yes.
For example, the new product we are introducing to the market has reduced price compared to what is already in the market.
For corporate, depending again on where they are located. Like I said earlier, pricing depends, largely, on the last-mile; that is taking the capacity from Lagos to Abuja, Port Harcourt, Kano and other cities.
As more players enter the market the prices will go down and then the corporate entities will enjoy lower pricing.
The issue will be the time those players will recoup their investment; because if companies after laying fibers and deploying other infrastructure, they could not recoup their investment they will become distressed.
The cost of laying the fibers cost money. Based on the fact that investors are coming into the Nigerian market means it will not be long even the corporate bodies will enjoy bandwidth at reduced prices.
Today, we have Glo1, MainOne Cable, SAT-1, WACS and a new one coming up; the user experience and cost will always get better.
We are talking about terabytes of capacities. It is similar with other markets; when you are growing the prices are usually high, nevertheless more investments brings price down. So, as soon as companies make gains from their investment, new players entering the market, then monopoly has since been eliminated, it will cruise.

Africa and Broadband Ubiquity
I believe, it will not be long, Africa will witness broadband ubiquity. We are all striving towards this initiative.
It is an initiative that Gilat Satcom delights in. We believe that each country and each person should be connected to the world.
There are many challenges in Africa and outside Africa. In each continent there are challenges; Africa has the challenge of the last-mile, US had it, Europe experienced it.
So there may be additional challenge in each country. I truly believe that five years from now, in Africa, there will be full connectivity given the enormous investments going on. If  you remember in some African countries, with exception of Nigeria, five years ago, they had not internet and ill-afford it.
They were only the government and big companies that were connected; people had no access to 3G or cellular connectivity, but look at what we have today. And in five years we can compete with other developed countries of the world. 

Assessment of Government Policies
I am very satisfied with what the government is doing. I had met with several government officials in Nigeria, discussing on the way forward and I could see the passion and willingness to develop the system, give the people the connectivity they want.
Today, everybody has one smart device or the other looking for connectivity and government is interested on that.

Competition among ISPs
My company’s competition is not with the local ISPs. They are my customers; the people that
I will supply my capacities to.They are the ones to distribute my hybrid product. Although, may be some cases customers may approach Gialt directly, we will define what they want and decide to sell directly to them.
But that will be a fraction of business we are doing now. We are carrier of carriers. We are not deploying directly to homes.
If someone wants a gig of bandwidth I will not sell to him, he has to approach the ISPs. There is an aspect that can raise some concerns because the companies we are carrying also deploy the solutions and that is the beauty of competition. But we are not afraid. As many competitors are there, the better for the market. Our uniqueness will give us an edge in the market.