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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday.
ISSUE NO 139 KENYA’S JAMBONET BLOCKS THE INTERNET BUT THE PRIVATE SECTOR FIGHTS BACKThe worm has finally turned. In mid-December Kenya Telkom’s monopoly, international internet connection company Jambonet decided to block a number of its ports claiming they "were being used to transmit VOIP traffic." The net result was a near two-day shutdown of internet services in Kenya a week before the elections. Private sector lobby groups TESPOK and the Cyber Café Operators Association of Kenya first protested and then decided to fight back. TESPOK members announced its intention to set up a consortium which will apply for a licence to compete with Jambonet. Meanwhile Kenya’s ruling party for over 40 years - KANU - lost the election. As the dust begins to settle, Russell Southwood looks at what’s happened and what it all means. The shutdown affected nearly all Kenyan Internet service providers (ISPs), which are obliged to use the Jambonet high-speed data link. Private sector lobby group TESPOK and Cyber Cafe Operators Association of Kenya were quick to respond:"In a move that brought corporate communications to a complete standstill and has precipitated losses amounting to tens of millions of shillings, Telkom Kenya on Monday 16th December installed filters in their data network which blocked certain types of Internet services from transitting Jambonet, their Internet backbone service and the only Internet gateway in the country. The blockage caused a total failure of all VPN (Virtual Private Network) communications and also cut off interactive Internet applications such as MSN & AOL Messenger, Netmeeting and a number of other chat utilities". "The interference with VPN communication is the most damaging of all the blockages as many organisations, especially multinational corporations depend on VPN technology for secure transmissions of sensitive information over the public Internet. Kenyan corporations have experienced losses amounting to hundreds of thousands of dollars since the implementation of the blocking filters on Monday 16th December". They were quick to point out that regulating VOIP calls was not Telkom Kenya’s role:"This move by Telkom Kenya is illegal in that it is not their job to regulate or enforce communication policy. This is the sole domain of the industry regulator Communications Commission of Kenya. We have confirmed that permission was not sought from CCK nor were they notified about the blockages". It followed its first statement up with a second that laid down the gauntlet:" The current Jambonet Monopoly is no longer tenable and their actions this week are legitimate grounds for removing this monopoly. The Internet Community is the body that has the technical and commercial know-how to operate an effective backbone and they have voted unanimously that they are not prepared to accept a solution being imposed upon them. The major ISPs have today formed a consortium which is creating an independent company that is applying to the CCK for a license to operate a second International Internet Gateway and Internet backbone". The speed and type of response from TESPOK and the Cyber Cafe Operators Association of Kenya has set an interesting precedent for the rest of Africa. Most lobbying by the new African ICT private sector is either not yet well organised or insists that quiet pressure will yield best results. This is largely because no-one really believes that the political process works and that you should not antagonise those in power. However if governments can change hands, then perhaps occasionally a more "up-front" attitude might yield results. If a government won’t deliver the kind of change everyone can see is needed perhaps the time has come to challenge it publicly on its failures with practical alternatives. (For example, what might be done to overcome the masterful inactivity of the Ghanaian government on ICT issues?) The proposed consortium will offer international connectivity and local internet backbone distribution. Nearly all of Kenya’s main ISPs will be involved in the consortium: ISPKenya, SwiftGlobal, Wananchi Online, UUNet Kenya, Kenyaweb, AccessKenya, Interconnect, NairobiNet. Africa Online (whose service aqppeared not to be affected by the shutdown) is probably the only notable absentee from the list. Initially each of the ISPs will have an equal share in the consortium and the company should be poised for a listing on the Nairobi Stock Exchange by the end of its first year of operation in order, according to a consortium spokesperson,"to give every Kenyan an opportunity to play a part in the development of Kenya’s Internet". The timing of the licence application is unclear. The elections have brought such massive political changes that it will take some time for the new Government to make its intentions known in the ICT sector. However the consortium’s spokeperson is looking forward to a positive response:" We are optimistic that the consortium should receive a license subsequent to the statutory 60 day gazette listing". According to a source close to those involved in the process, Kenya’s regulator CCK has informally given a positive reaction. According to this source:"CCK has had it "up-to-here" with Telkom Kenya and wants to teach it a lesson." Apparently the entire licensing and compliance department has been put on "stand-by" to process the consortium application as quickly as possible. In our last Kenya special (issue 88), key players in the market told us that they believed that without the limitations imposed by Jambonet’s monopoly, the internet subscriber base could grow as large as 60,000-100,000 from its current estimated base of 30,000. Asked what the consortium believed the impact would be, a spokesperson responded:"We should see a quantum leap in the quantity, quality and reach of the Internet as Telkom Kenya have always been a bottleneck holding back true growth and development". And what of Telkom Kenya’s fate? Described as Kenya’s "ruined telecoms company" by the London Economist, its management must now surely await their future with some trepidation. If the Government is decisive it will appoint a new management (either putting in a completely new senior management team or external management contractors) tasked with preparing the company for early privatisation. It will be interesting to see whether the Government has the political courage to do this once it learns the scale of the revenues the "golden goose" produces. However to leave it in place would be to encourage the kind of endemic corruption that the new President has vowed to root out. This will provide a clear first test for the new Government in ICT policy terms. We are watching with interest.
TANZANIA’S TRITEL SET TO GO BUST?The first mobile company to introduce GSM technology to Tanzania, Tri Telecommunication Company Limited (Tritel) may close according to a report in Tanzania’s Guardian. According to the paper the ailing mobile company is left with about ten days to settle the bills short of which it will be forced to close its shop. The debts, which have resulted from failure by the company to settle various fees, charges and taxes, have been cited as the major reason behind its failure to remain in the market. One of the major creditors of Tritel’s is the communication sector regulator, the Tanzania Communication Commission (TCC). Apparently, Tritel owes TCC billions of Tanzania shillings accrued from unsettled annual fees. Another major creditor is the Tanzania Telecommunication Company (TTCL). According to another source, Tritel has allegedly failed to settle a colossal amount of money owed to TTCL as interconnection charges. The Tanzania Revenue Authority (TRA) is allegedly another major creditor. Tritel has accumulated huge debts to TRA as a result of pending taxes. Creditors have resolved to give Tritel a two-week grace period, to settle the debts otherwise ‘face the consequences.’ NIGERIAN ACTIVISTS CHALLENGE GSM TARIFFS: "UNRELIABLE AND INEFFICIENT"The Nigerian Communications Commission (NCC) has filed a preliminary objection to the suit by the three human rights activists before a Federal High Court in Lagos, challenging the high tariff charged by the three Global System of Mobile Communication (GSM) operators in Nigeria.The trio: Saibu Akangbe, Ebun-Olu Adegboruwa and Tuyi Mebawonde had sued NCC, and the three GSM operators (MTN, Econet and NITEL GSM) over the N50-per-minute call, contending that the tariff is oppressive and contrary to the law regulating telecom services in Nigeria. Consequently, they asked the court for an order directing the NCC to regulate the tariff payable to the GSM companies by subscribers and a declaration that the services being rendered by the GSM operators were generally unreliable, inefficient and substandard, and do not merit the call tariff being collected, among other reliefs. (source: Media in Nigeria) ZIMBABWE’S TELONE WELSHES ON TOLL FREE NUMBER DEALZimbabwean state-controlled fixed telephone operator TelOne has failed to honour a May 2000 agreement signed by its predecessor, the Posts and Telecommunications Corporation (PTC), to allow local firm VASCor to operate a national toll free telephone service, it was learnt this week. VASCor is a telecommunications company created in 2000 to provide toll free telephone facilities, voicemail and other services. After the firm signed the toll free service agreement with the PTC, it proceeded to import and install equipment, but was turned away when it approached TelOne ‹ created after the unbundling of the PTC last year ‹ for connection last October. Sources close to the dispute said TelOne refused to honour the 2000 agreement even though it contained a successor clause stating that after the unbundling of PTC into three business units, TelOne had to implement the deal. Ned Nedziwe, theVASCor chief executive, said TelOne had refused to honour the agreement for what he called "unacceptable reasons", which he declined to disclose. (source: Financial Gazette) ORASCOM TUNISIA LAUNCHES FIRST PRIVATE NETWORKOrascom Telecom Tunisia (OTT), the first private firm to enter the Tunisian communications market, started operations in December 2002, a month ahead of schedule. The network’s cellular services will initially be limited to the capital Tunis, and extend to cover 80 percent of the country’s populated area within 12 months. OTT will launch the North African country’s second GSM (Global System for Mobile Communications) network under a 15-year license, which grants the company four years of exclusivity operations in the Tunisian market. (source: menareport.com) BIDDERS INVITED FOR SA RURAL TELECOMS LICENCESThe Department of Communications has invited applications for licences to operate telecommunications services in 10 rural areas where Telkom does not penetrate effectively. Applications close on April 30. Business Day reports that the non-refundable fee for submitting a bid has been set at R30,000 instead of the expected R15,000. As part of the ongoing liberalisation of the telecommunications market, small operators are to be established to serve certain areas with a very low penetration of telephones. Government has already identified 29 such areas although Telkom has questioned the statistics in some. While many have questioned the viability of businesses restricted to low-income areas, despite the special privileges expected to be granted to the small operators, there are reported to be many interested parties. It is estimated that each licence will require anything from R15 million to R500 million. (source: http://www.itweb.co,za) IN BRIEF- Alcatel to set up telecom network for Libyan gas project French telecom giant Alcatel has been selected by AGIP GAS B.V., a joint venture between AGIP North Africa and the National Oil Corporation of Libya (NOC) to provide a full turnkey telecommunications network and associated services for AGIP GAS’ internal communication needs. The contract is worth $59.4 million. - Worried by the poor services offered subscribers by operators of the Global System of Mobile Communications (GSM) in the country, the Nigerian Communications Commission has given the companies up to the end of this month to correct their network problems or risk sanction. Ernest Ndukwe, NCCs Chief Executive Officer, read the riot act in a recent letter to the operators. - The Namibian Communications Commission (NCC) has appointed a German consultancy, Detecon, to invite bids and help select a second mobile phone operator next year. - The Zimbabwean Government has reduced licence fees for companies intending to set up public fixed telecommunications services from US$320 million ($17.6 billion) to US$100 million ($5.5 billion). - The "Wezacom" and "Telesel" companies licensed in November this year as new fixed telephone operators have promised to increase the number of telecentres in Angola, according to the National Comunication Institute (Inacom) Director, João Beirão.
SIERRE LEONE POLICE ARREST ALLEGED 419 SCAM GANGFour Nigerians and a Ghanaian national are in Sierra Leone Police custody, and officials were searching for at least three other members of an alleged Œ419’ scam ring thought to be operating in Sierra Leone and a half-dozen other West African countries. The suspects are alleged to have gained access to the internet dialup account belonging to a Freetown business, which they used to send out thousands of email letters to would-be victims with offers of a phony get-rich-quick scheme. The fraud came to light when a Dominican businessman suspected that his would-be Sierra Leonean business partners ­ "James Kakudu," his uncle, former Transport Minister "Hon. Chief Momoh Joe Pujeh," and their lawyer, "Barrister Kunle Cole" ­ might actually be perpetrating an elaborate scam. They were. Under their proposed scheme, the businessman was to help the three to set up a phony gold and diamond business in Freetown. His "partners" would then use the business to smuggle tens of millions of dollars worth of diamonds out of the country. "James Kakudu" (John Edeh) made the initial contact, while Raphael Ajukwara posed as parliamentarian and former Transport Minister Momoh Pujeh. The real Pujeh, who was not involved in the scheme, lost his cabinet post last year after he and his wife were arrested and charged with illicit diamond smuggling. "Ajukwara-Pujeh" assured the businessman he possessed a large stash of diamonds which he had managed to conceal from the authorities. The Dominican businessman turned to the Sierra Leone Web for assistance. The website’s editor in turn forwarded the information to internet expert Sylvia Blyden in Freetown. Just a year earlier Blyden, again acting on information provided by the Sierra Leone Web, used her computer knowledge to track down a pair of Nigerian con men in the Gambia. The two, who had been posing as "Prince Mohamed Camara," the son of the fictitious "King Octopus Mohamed Camara II" of Sierra Leone (Sierra Leone does not have kings), were arrested in Banjul amid a flurry of publicity. The Gambian authorities quietly released them a few days later, citing lack of evidence. This time around, Blyden promised, the scam artists would face an iron-clad case. With the backing of Sierra Leone’s Criminal Investigations Division (CID) and cooperation from the Office of the President, Blyden was given 24-hour access to Sierra Leone’s internet "backbone." This allowed her to trace the scam artists to their base at a home in the Freetown suburb of Aberdeen. She also set up a new email account in the name of their intended Dominican victim and took over his correspondence with the scam artists, forwarding to them phony scanned documents and leading them on with the promise of $700 to be sent through Western Union, supposedly so that their lawyer could incorporate the business. Using this set-up the police set their trap and arrested the suspects. (source: Sierre Leone News Online) TUNISIA TO HOST ICANN’S NEXT CONGRESSTunis is to host in 2003 the next congress of the Internet Corporation for Assignment of Names and Numbers (ICANN), it was announced on Sunday in Amsterdam. This international organization in charge of coordination and management of addresses, domain names and internet protocols was set up in 1998 in San Diego (California). The decision of this non-profit-making organization to choose Tunisia, among many candidate countries, to host its annual congress because of the progress it has made im implementing the internet. IN BRIEF- An Egyptian court has granted a divorce to a woman who complained that her husband was "addicted" to the Internet, the government newspaper Al-Gomhuriya reported last week. - Exponant has been appointed to host, service and support South African Comair’s kulula.com e-commerce Web site in a three-year contract. Kulula.com, a low-cost, no frills airline established in August 2001, claims to have attracted the highest volume of e-commerce turnover South Africa. It processes more than 85,000 transactions a month worth more than R25 million, with four million hits per month.
MICROSOFT INVESTS IN EGYPTIAN EDUCATION SECTORThe Egyptian Ministry of Education and Microsoft signed an agreement to provide all Ministry-supervised schools with Microsoft desktop products, giving Egyptian students access to the latest and most innovative technology. In cooperation with the Ministry, Microsoft will invest in major technology projects in the educational sector; including the establishment of the Middle East Educational Center of Technological Excellence and the Junior Developer initiative. UNIVERSITY OF THE WESTERN CAPE RECEIVES BOOST FOR OPEN SOURCE PROJECTThe University of the Western Cape announced today that it was to be the recipient of a small grant of US$ 50,000 from USAID for the establishment of an Open Source component in its Open Initiatives project called the African Virtual Open Initiatives and Resources (AVOIR). For further information contact Derek at dkeats@uwc.ac.za (source: TAD Consortium Newsletter) GLOTEC ASSISTS GAPI IN PROMOTING GROWTH IN MOZAMBIQUEJSE-listed Global Technology Limited has initiated a strong drive into Mozambique, starting with a R2.5 million TEMENOS eMerge implementation for local business and financial development institution, GAPI Sarl. Temenos eMerge, which was developed by Global Technology, is a fully integrated system developed for micro banks, savings and loans companies, credit co-operatives, credit development schemes, managed loan schemes, NGOs, micro finance organisations and other non-bank financial service providers. IN BRIEF- The International Telecommunication Union (ITU) has selected
Makerere University of Uganda as the site for its first women-oriented
Internet training facility programme in developing countries.
Kenya and Zimbabwe are expected to open centres early next year. - The first of the Information Technology Centres which the Nigerian government has promised to establish in the six geo-political zones of the country, has been commissioned in Abuja. - The extension of Zimbabwe’s Tonga.Online project in the Binga area will see the establishment of two satellite centres at Siansundu and Siachilaba schools. - Egypt’s Raya Group has entered several strategic alliances to market its services and software programs in Africa. Raya had previously succeeded in winning contracts for projects in Africa including a project in the mobile phone services company Djezzi in Algeria, and other projects in information technology and telecommunications in Tunisia and Marocco.
NEW MANAGEMENT TAKES OVER NITEL PRIOR TO GOING PLC IN 2003A new management is expected to take over the running of the Nigerian Telecommunications Limited (NITEL) and the privatisation process will be completed in the first quarter of 2003. Minister of Communications, Dr. Bello Haliru Mohammed, who made the disclosure last week at the commissioning of Starcomms new switch in Lagos, said Federal Government was also set to float the shares of the national telecommunications company in the Nigerian Stock Exchange. Mohammed, who addressed newsmen after commissioning the new Starcomms complex, said: "We expect new management to take over NITEL, that is management contractors employed by Government, the 100 per cent owners of NITEL." He said: "very soon after, perhaps, in the first quarter of 2003, NITEL shares would be floated on NSE. The idea is to sell NITEL shares to the Nigerian public so that the company would remain owned by Nigerians, but in private hands and not in government hands" The consortia which have been shortlisted are: Chua Netcom-2te Consortia (Chinese/Nigerian); BNSL-TCIL Consortium (India); African Consortium made up of Africa Access, BT Telecom and Lucent Technologies (American/British); Sasktel/IBM Consortium (Canada/American); and Pentascope International of The Netherlands. The minister commended the Private Telecom Operators (PTOs) for making the liberalisation efforts of government in the telecommunications sector succeed. "Before the PTOs, when NITEL still maintained its monopoly, we have only about 5,00,000 operational lines. Today, thanks to our liberalisation of the field, with private operators in the scene, the number of lines are now hovering between 1.5 and 2 million. This is a great impact. And from what I have heard and what regulators have reported, the quality of service of most the private operators is very high. On the unresolved interconnectivity issue between GSM operators and NITEL; and between GSM operators and CTOs, he explained that the problem "is an issue we are addressing now," adding that "the regulators, the National Communications Commission (NCC), have given them an ultimatum to sort it out. I think that has already been dealt with. Any operator that has not streamlined his operation to provide interconnectivity with other operators will be sanctioned by NCC," he stressed And on the controversy trailing the issue of tariff negotiations between NITEL and GSM operators, he said his ministry had, given them time to settle and have now agreed. "Where they have not agreed, they have one month to agree. Otherwise, NCC will start issuing sanctions," he maintained. (sources: Vanguard, This Day) IN BRIEF- South African publishing and electronic media group Naspers which owns pan-continental ISP contender MWeb made its debut in the US last week when its American Depositary Shares (ADS) were listed on Nasdaq after the group completed three months of corporate restructuring. - The Israeli multinational communication giant, Gilat Satellite Networks Limited (GFILTF), currently facing liquidation threat, has set up plans to give creditors an 80 per cent stake in the company in exchange for the elimination of 77 per cent of its nearly US$362 million indebtedness. RESPONSESISSUE 138: UTASTARCOM PROMOTES THE PHS WIRELESS STANDARD Key challenge in 2003 I believe is to extract practicality out of the hype surrounding the sector - until we can get a fish out of a router (Cisco or otherwise!) we have still got a long way to go to make most ICT solutions and applications relevant in the everyday life of Africa. At a recent networking conference here in South Africa it was very interesting to note that the delegates were asking for real world "African able" answers while the key note speaker from the global networking multinational was discussing the next frontier of breaking through the 10G barrier - a huge gulf between what is believed to be the next step in the development of the sector thus exists between the developed world and Africa. I think we can learn from the motor industry - Toyota produces a full spec LandCruiser with every electronic bell and whistle for developed markets while also producing the same vehicle with an all mechanical spec for undeveloped markets, the Chinese seem to be getting this right.... Mark Walker
BRITISH HIGH COMMISSION IN GHANA LAUNCHES WEBSITEAt the end of last year the British High Commission in Accra launched its official website at a ceremony at Busy Internet. The purpose of the site is: - to provide information for members of the public about the role and activities of the High Commission as well as the policies of the UK and - to provide information and guidance on issues such as visa applications; and provide links to other websites of interest. Jake Obetsebi Lamptey, Minister of Information & Presidential Affairs in a speech read for him at the ceremony by a chief director at the Ministry said:"I am confident the site will be informative and interesting". He indicated that the Government of Ghana is in the process of establishing a portal to promote e-governance, which will provide various online services including application for driving licences, visas, passports, payments of fees and fines as well as the submission of tenders. The website address is: www.britishhighcommission.gov.uk/ghana IN BRIEF- A new information and knowledge sharing network has been created in Ghana, drawn from core projects of the International Institute for Communicaton and Development (IICD) in Ghana, Not-for-profit organizations, government, business and academia. The mandate of the group was to propose a workable framework for the Network which is targeted at stakeholders interested in promoting Information and Communication Technologies (ICTs) for Development. More particularly in promoting ICTs as a tool for Ghanas development. For further information please send an e-mail to enquires@iconnectghana.org - CAFRAD, the African Training and Research Centre in Administration for Development has made changes to its site which is available in both French and English. It now offers more documents on a range of subjects: http://www.cafrad.org/ - Mike Chivhanga’s Web Knitter’s Manual is now available on CD-ROM. It offers ways of improving the quality and quantity of locally generated web content for use in developing countries is now out and further on how to order available at: http://www.soi.city.ac.uk/~ck521/contentalive.htm - If you’re involved in creative content, you’ll be interested in a very interesting new web site http://www.creativecommons.org this web site offers a new way for people to share their creativity -while maintaining their copyright rights.
PEOPLE* As the government prepares to sign an agreement with Norwegian telecom giant, Telenor to take over management of the beleaguered Ghana Telecom, John Mahama, MP Bole/Bamboi and the immediate past Minister for Communications has cautioned against the lack of openness in the new take-over bid. "The memorandum of understanding between Telenor and the government was signed about three to four months ago but as at now, (even) as a member of the Parliamentary Select Committee on Communications, I have not seen a copy of the memorandum. We made a inquiries at the ministry and nobody is willing to release anything," Mr. Mahama said. The Business Plan that Telenor presented to government has also not been made public and neither Parliament nor its Select Committee has been briefed. According to News in Ghana, the government has shifted from its earlier position of insisting on a Performance Bond, which would be automatically activated in the event that Telenor fails to deliver on its targets and has gone back to Penalty Clauses. Penalty Clauses are enforceable only after a process of litigation. So if after three or four years Telenor is unable to meet the 400,000 broadband lines target, then the Ghanaian Government has to go through a long legal process to be able to enforce penalties. The sector minister, Felix Owusu-Agyapong had earlier assured parliament that government was going to execute the performance bond. "It is therefore significant and necessary that the minister explains the issues," Mahama said. As at now, it is not even known what the cost of the management consultancy is going to be, Mahama said adding, "it is important to know whether the agreement is worth it." * The chairman of the Gamtel Board of Directors, Momodou Senghore recently launched its new company logo: it involves eyes and ears to represent its changing business. "Communication has moved so far from the original logo, so this new logo holds no symbol that will decay with time," he commented. He used the occasion to point out that Gamtel’s future business is digital telecommunications services provision, information technology, internet and video transmission, with the ultimate aim of bringing voice, data and TV to its customers on a single telephone line. * Eva Lokko has left UNDP in Ghana where she is publicly best known for piloting the internet bus project. She is going to the Ghana Broadcasting Corporation as its first woman Director-General. Has she left ICT behind? Far from it. She is purchasing computers for a range of departments:"We are doing this so that we can communicate with each other online and speed up work."
JOBS AND OPPORTUNITIES- One of Africa’s leading telecommunications companies expects to appoint an internet business and market analyst early in the New Year, based at its corporate headquarters in Europe. The post requires: fluency in English and French strong business and market analytical abilities understanding of internet, wireless and satellite technologies energy and a willingness to travel. Send expressions of interest to info@balncingact-africa.com and we will forward them. - Each year, the Digital Vision program awards twelve fellowships at Stanford University. DV Fellows spend an academic year (Sept-June) on the Stanford campus in Palo Alto, California, designing and building IT solutions for the developing world. For additional information, please click on the "Become a Fellow" link on the Digital Vision web site at http://reuters.stanford.edu/ or write reuters-applicationquestions2003@csli.stanford.edu
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