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PESTLE analysis

Political

3air will be providing more equal opportunities to people of Africa by providing them connectivity, identities, financial services and contribute to growing the local economy. There will be a lot of focus on the 3air community government that will have the control over funds to support local projects.

General political instability in African countries is the main risk we are facing. There are numerous countries with corrupt political regimes. Additionally, frequent political changes could potentially mean disruption of our proceedings within a country.

Our advantage lies in those countries needing and wanting broadband. As of now, our technology is the best and only broadband solution for densely populated cities.

With over 10 years’ local experience in this area and good government connections we are confident to navigate through this successfully. After all internet connection counts as one of the most important factors or a countries development.

There is also the field of blockchain community, especially SKALE as the platform we will build upon. The advantage is the truly global and decentralized nature of this communities, so they are quite insulated from local political shocks.

There is a lot of hot debate and political influence in the blockchain industry, but some of them, like Bitcoin and Ethereum, have already been officially declared not-securities even by the US SEC (Hinman, 2018), Ethereum being one of them. Either way the decentralized nature of Ethereum and SKALE makes it harder for political disruption, and the fast adoption by renowned organizations brings additional legitimacy to other projects running on the blockchain.

Economical

Sub-Saharan Africa is home to over 1 billion people. The populations are young with the mean age predicted to be below 25 years by 2050. Africa is the world’s largest free trade area creating an entirely new development path, harnessing the potential of its resources and people.

The regions are composed of low to high income countries. The economic impact of the COVID-19 in Africa is severe and economic activity is estimated to have contracted by 2% in 2020, pulling the continent in the first recession since 25 years. (The World Bank, 2021)

The broadband market in Africa is estimated at $97 billion at current global average broadband penetration rate and up to 4 times this amount once penetration reaches developed world standards.

Also, Africa has by far the highest urbanization growth rate in the world with around 4% growth of urban population annually (The World Bank, 2021). This drives even more demand for broadband connections and therefore means that our market is growing constantly by at least 4% annually.

Urban population growth (annual %) 2020 Figoure 27: Urban population growth (annual %) 2020

Regarding the blockchain community, the Ethereum ecosystem is currently the biggest one in the blockchain space, because of its was dApp ecosystem. Daily turnovers are in the billions of Dollars. More and more traditional businesses and organizations are moving to blockchain. The adoption rate is even faster than that of the internet and mobile phones in their early stages (Levin, 2021). With blockchain on the raise, the outlook for 3air looks increasingly positive.

SKALE might also become the blockchain of tomorrow as it solves the scalability issues of Ethereum in an innovative way and addressing many of the general shortcomings of Bitcoin and Ethereum.

As such SKALE is addressing the economic issues of high gas fees on the most widely spread blockchain, Ethereum. Such high fees are excluding a lot of potential users and reducing revenues of blockchain businesses. SKALE provides a system with the lowest possible fees (effectively zero gas-fees for the end user) and allows for widest possible inclusion of users.

Social/Cultural

The culture of a people is what marks them out distinctively from other human societies. For sure Africa is one of the places where social and cultural differences are not only different from the rest of the world, but also the difference within are immense. There can already be a challenge in communicating as there are many different languages and dialects even within a country. The values differ greatly from the rest of the world causing entry barriers for foreign businesses. Working tightly with locals and having representative offices are a must. Years of working in Africa has thought us how to deal with local socio-cultural challenges.

It is interesting that the blockchain community within Africa is growing faster than the rest of the world. This is probably due to wide adoption of smart phones and a lookout for new opportunities, especially in the financial markets. Blockchain has the potential to fill the gap of the unbanked and provide equal financial services to everybody.

The blockchain community in general, while still in its early stages, is gaining rapid traction. The whole community is still fully engaged and one of the most active communities right now. Such communities tend to promote and adopt good projects but also reject the bad ones quickly. 3air will present itself fully transparent and disclosed, to avoid any rejection form the community.

Technological

K3 technology is proprietary and patented and field tested with presence in 9 countries already. Technologically we clearly have the advantage and the best suitable infrastructure system to provide broadband internet in urban areas of developing countries. As outlined in the competition section we have identifies 2 major upcoming technologies. Although they are not yet ready or are facing big entry barriers to the market, we need to be ready and acquire and solidify our market share before the competition.

Blockchain as a nascent sector will undoubtedly be seeing significant changes and improvements to the technological landscape 3air will be inhabiting. Nonetheless, the levels of funding sought will ascertain that tier one development resources will be hired to leverage any new developments to our advantage.

With building on SKALE, 3air will take advantage of all its superior features. As the whole project will heavily rely on cheap transaction costs, we will be leveraging the unique capabilities of SKALE, that can provide zero-fee transactions for the end user. Additionally, operating in an EVM compatible environment we will be able to access a vast ecosystem of applications and including them in our platform, effectively reducing development costs and security challenges.

As tokens can also be exploited and are prone to hacks, we have thought deeply about this topic. EVM has stood the test of time and although we see exploits and hacks, they are always conducted on the level of dApps not doing thorough testing, code auditing or patching known security holes. Ethereum and their ERC20 token standard is one of the most secure assets to date.

3air has sought expert legal counsel in all its proceedings regarding jurisdiction selection, token launch and distribution. With this counsel we have set up all the required systems for a fully legal and transparent token sale and all ongoing and future operations.

The selection of favorable jurisdiction to operate within and working with a high-level legal partner will provide safe and stable environment for 3air and the exact boundaries of operations.

In accordance with our political analysis the regulatory changes are for sure imminent. For the case these changes will affect 3air operations we will set aside funds for legal counseling and actions, should the need emerge.

Environmental

3air takes environmental challenges very seriously. Our technology has been designed around low power consumption as it is also one of our main operating costs. We will seek out usage of renewable energy sources on local markets to our maximum capabilities.

3air will aim at operating carbon neutral from the start.

Regarding technology, there have been some questions raised about the environmental footprint of the current blockchains especially with regards to Proof of Work (PoW) security mechanism that devotes large energy resources to trivial calculations in order to keep the blockchain safe and secure.

We have therefore been reluctant of building our project on such blockchains as it would go against our core principles. We have chosen the SKALE blockchain that uses a new, secure, and environmentally friendly security mechanism called Proof of Stake (PoS). Additionally, Ethereum as SKALEs settlement layer is also putting all efforts into progressing to a energy efficient PoS.

As a platform provider for internet and TV services we will aim on educating the local society about the environmental issues and responsibilities and make it our mission to care and nurture the world we all live in.