Satellite Connectivity Opens Up A Hot New African Market For A European Integrator And Operator

Sonema Creates A Verso Netperformer-based Vsat Solution For Commercial Banks That Practically Sells Itself.

The Opportunity

Sonema is a Monaco-based telecommunications services provider that specializes in delivering fully integrated voice and data networking solutions to enterprise customers and carriers in developing nations. The company has nearly 300 installations in more than 30 countries in Eastern Europe, the Middle East, and Africa, reflecting its commitment to bringing leading-edge communications technology to regions that have been underserved in the past. Sonema's solutions have been instrumental not only in establishing modern services in remote markets but also in spurring economic development in some of the world's most impoverished regions.

In 2001, Sonema executives learned from contacts at Western Union that many of Western Union's commercial bank customers in Africa were constrained in their efforts to expand their money transfer revenues by the poor quality of service provided by local carriers. Many of these banks' retail customers regularly send funds to relatives abroad, but the banks' ability to provide fast, reliable, and profitable execution of the transfers was often stymied by their dependence on expensive but unreliable dial-up connections to a local Point of Presence. It was not unusual for an African bank to experience a 90% call connection failure rate for international voice calls.

For connections to Western Union, the banks typically employed a dialup service provided by a service provider other than the incumbent carrier. The connection had to go through an incumbent carrier just to establish the local call to the POP. If a bank representative needed to speak with a Western Union agent to discuss an issue that could not be resolved over the dial-up data connection, the rep had to use the PSTN, making a costly long distance call that would often require several attempts before a connection could be established.

Recognizing an opportunity to expand their African customer base, Sonema representatives began to approach Western Union's bank customers with a solution already in mind.

Sonema has sold dozens of NetPerformer-based networks in Africa since 1999 and is "swamped" with orders from new customers.

The Solution

Sonema quickly realized it could offer a high-quality, NetPerformer-based VSAT solution to banks throughout Africa that would free the banks almost entirely from their dependence on local service.

Sonema was thoroughly familiar with the sophisticated capabilities and reliability of the NetPerformer product line from previous installations. "We've been working with NetPerformer-based solutions for years, and we have always been impressed with the technology and the support that backs it," said Yves Dollo, director of sales at Sonema.

NetPerformer combines the functionality of a data router, data compression, traffic shaping, and a voice gateway in a single device. Because it offers the highest possible quality of service algorithms for compressing voice and data traffic over a common WAN infrastructure, NetPerformer can optimize bandwidth utilization and reduce telephony costs by bypassing the PSTN on calls between disparate enterprise locations.

The solution offered to African banks by Sonema typically includes a NetPerformer hub at the bank's headquarters location, a NetPerformer unit at each bank branch, and remote VSAT stations interconnected, in some cases, by wireless WAN. The Verso SkyPerformer option provides connectivity with satellite bandwidth leased by Sonema. Calls are linked via satellite to a hub in Monaco or directly from branch to branch. Sonema also established a leased line connection between Monaco and Paris that provides high-quality, low-cost voice and data transmission to Europe and beyond.

Results

Sonema's solution proved to be a relatively easy sell because of its obvious and immediate advantages for the banks. For approximately the same monthly cost of the local dial-up service to access Western Union, a typical bank could have voice and data connectivity with immediate response times. As a result, the bank could serve more than twice as many customers as before, increase its revenue from Western Union services, and nearly eliminate customer service complaints.

Sonema's African bank customers have also benefited from a substantial reduction in their local access charges as a result of the NetPerformer-based solution's toll bypass capabilities. Western Union has also cut its toll charges-an expense it shared with the banks-by installing a NetPerformer unit in its Paris hub.

In addition-and at no extra cost-bank branches acquired Internet connectivity and inter-branch voice and data networking, making possible a wide range of new communications and control applications that have boosted internal productivity. And because of NetPerformer's ease of installation and maintenance, the demands on Sonema's service and support group have been minimal. Most system troubleshooting can be handled remotely, and Verso technicians are always available to Sonema and its customers for expert assistance.

SkyPerformer's SCPC satellite connection provides 100% dedicated bandwidth to each customer. Sonema has capitalized on this by creating an online service that enables each bank's support team to monitor their network utilization.

By lowering their total cost of ownership, the banks have typically achieved payback within six months while substantially increasing the quality of their customer service.

"NetPerformer provides excellent voice quality, it's highly reliable, and it's easy to operate and maintain," said Yves Dollo. "All of our banking customers have been happy with NetPerformer's performance and especially with the low total cost of ownership they experience because of their toll bypass savings and productivity improvements. The banks are also adding revenue and building customer loyalty with the service improvements they've been able to deliver in their local markets."

By early 2005, Sonema had sold and deployed dozens of NetPerformer-based VSAT networks throughout the African continent, with seven more planned for installation by the end of the year. Awareness of the solution's financial and operating benefits has spread rapidly throughout the African banking industry and into other sectors of African commerce as well. Sonema sees no shortage of future clients anxious to take advantage of the technology. According to Dollo, "We're swamped with orders from new customers."

To learn more about Sonema, please visit www.sonema.com.

Note: The Sonema Web site is in French. For an English translation, go to http://www.google.com/language_tools?hl=en and type in "www.sonema.com" under the Translate a Web Page box.