Gateway Communications increases its contracted satellite capacity ahead of strong forecast growth in demand for bandwidth

19 April 2007 - To meet the rapidly growing demand for bandwidth capacity in Africa Gateway Communications (Gateway), the largest independent provider of satellite services focused solely on the African market, has increased its contracted satellite capacity bandwidth to 555MHz, up by 84%, from 302MHz a year ago. Gateway's network now manages the capacity on 15 satellite transponders on four satellites, servicing over 400 satellite links into 30 African countries.

Gateway hosts Europe's only dedicated Pan-African Network Operation Centre (NOC) based in Brussels, from where they run and manage satellite network services for GSM and mobile operators across Africa. Through a continuous programme of multi million dollar investments in this centre of expertise in African connectivity, Gateway is confident that it now runs the largest and most advanced private Pan African NGN for its customers.

This additional capacity combined with their next generation switch technology, comprehensive network reviews, capacity management and bandwidth allocations systems, will ensure that Gateway not only meet customers' needs but continue to reduce costs and increase efficiency for them.

Demand for satellite capacity has never been higher in Africa and may outstrip supply. Recent research suggests that transponder demand will experience compound annual growth of 6.7% per annum between 2007 and 2010 in the Africa and Middle East region. Supply is only forecast to grow at 3.2% per annum over the same period. The global satellite services industry is now estimated to have revenues of over $50bn and has grown at a compound annual growth rate of 12.8 per cent between 2000 and 2005.

Peter Gbedemah, Gateway Communications' Chief Executive, said:

"Satellite connectivity is central to African development. Many areas cannot rely on terrestrial connectivity and satellite services are the only viable solution to provide communities with access to video broadcasting, broadband internet, telephony and mobile services.

"We are one of the largest providers of contracted satellite capacity over Africa with our focus on the African market, and can therefore offer the best solutions for operators and businesses to proactively address this issue.

"Recently, African operators have expressed their concerns to us about the shortage of bandwidth that is facing the communications industries. By substantially increasing our contracted bandwidth capacity, we are prepared for massive growth in voice and data on the continent as well as offering more flexible services and solutions.”

In the fourth quarter of 2006, Gateway customer's average data increased 69.5% from 208.6Mbps to 353.7Mbps, mainly due to higher backhauling demand. With over 16% cellular backhaul market share,
Gateway is one of the largest operators in sub-Saharan Africa. Total voice minutes are also increasing rapidly with Gateway switching 764.9 million minutes in the year to December 2006 compared to 653.5 million minutes for the comparable 2005 period.

ENQUIRIES

Gateway Communications
Tom Tudor
Tel: + 44 20 7173 1700

College Hill
Corinna Dorward (London)
Tel: + 44 20 7457 2020

Fred Cornet (South Africa)
Tel: + 27 11 447 3030

NOTE TO EDITORS:

About Gateway Communications
Gateway Communications is a leading provider of communications services to telephone operators and corporations across Africa, delivering the highest quality, most comprehensive and affordable international communications services on the continent.

Gateway is dedicated to doing business in Africa and strives to deploy world class communications infrastructure to facilitate pan-African and international communications and trade. With over 15 years operating experience and a network spanning the continent, Gateway Communications has developed the local presence, skills and expertise combined with the global infrastructure and relationships to uniquely meet the voice and data communications needs of local telecommunications operators and businesses operating within Africa.

At present Gateway Communications delivers a comprehensive suite of communications services to over 80 telephone operators and around 900 corporations working in Africa.