collaborating with Texas Instruments to integrate SIGFOX’s technology into TI’s chipsets.Case study: Seacom, Africa This case study was chosen to demonstrate that financial institutions (particularly those that focus on and understand the technology sector) also invest in broadband infrastructure projects.In 2007, a venture dubbed Seacom was established to launch the first submarine cable system along East Africa, linking South Africa, Tanzania, Uganda, Kenya and Mozambique to major Internet connection hubs in Europe and Asia. Seacom’s aim was to bring affordable and high-quality broadband to southern and eastern Africa as an alternative to expensive satellite technology, which was limited in service capability. Since 2009, Seacom has been an open access undersea cable system supporting high-bandwidth connectivity. Seacom provides open access points of presence in various countries, and its global partners provide end-to-end wholesale connectivity for African operators. The resulting broad take-up of broadband across East Africa has largely been attributed to Seacom, which is 100 per cent privately funded.Convergence Partners is a South African investment management company focused on the telcommunication sector in Africa. Its investments typically target ICT infrastructure development. Convergence invested USD 37.5 million of the total Seacom project cost of USD 650 million,87 giving Convergence an equity share of 12.5 per cent of the cable system. Other investors in Seacom included Nedbank (offering long-term commercial loans), and various African economic development funds.Convergence Partners made the investment in Seacom because it expected significant growth in data traffic following the exploding growth of mobile services in Africa. Results have been mixed since Seacom went live in July 2009. According to Remgro, a listed investment fund with a 25 per cent share of Seacom, the cable infrastructure company had lost money from 2011 through 2013. In 2014, though, Seacom’s headline earnings were ZAR 40 million (USD 3.34 million88), compared with a loss of ZAR 32 million (USD 2.67 million) in the previous year89.26 Trends in Telecommunication Reform 2016 Box 1.10: Key lessons: SIGFOX • Investing in more unfamiliar technology fields can raise the risk for investors but can offer an upside with high potential. Investing in new technologies is not Elliot Management’s typical type of investment, but if SIGFOX succeeds as the prevailing technology to enable the Internet-of-Things market, the return on investment could be significant.• Other fixed and wireless operators could consider investment from hedge funds, particularly for the expansion of fixed broadband networks. However, the lack of notable examples suggests that some hedge funds may be hesitant to invest in long-term infrastructure projects. • It is interesting to note that the Series D funding was not made in isolation by a hedge fund alone, but in collaboration with a number of high-profile global partners, which stand to benefit from the success of the technology as it evolves. These “expert” investors can provide financial investors with a higher degree of certainty and reduce the risk. Technology companies looking for alternative sources of investment should consider a combination approach. • Neither the telecommunication regulator nor the government had any direct investment in SIGFOX. However, regulators do still have overall responsibility for ensuring that the market environment is competitive and attractive for investment. In this instance, regulators will also have responsibility for making spectrum available for low-power wireless networks.