Balancing Act News Update - African internet developments

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The countries below contain a historic archive of information on the state of the internet that is now three years old. For some countries, the information has remained largely the same whereas for others considerable change has occurred. However it can still be used to identify organisations involved in developing the internet and to understand the historic development of the Internet in Africa. For up-to-date (but "pay-for") information click here: There are special rates for students and universities.

DOWNLOADS ZONE
This is an area where you can download longer articles and reports of interest. These will be updated as new material becomes available.

Download 1
(Word format, 875kb)
This IDRC-supported research study looks at how complaints by African consumers in the telecoms and Internet sectors are dealt with and what input consumer organisations are able to make into policy for these sectors. It is based on a survey of 30 African countries and includes detailed case studies of Kenya, Senegal and South Africa.

Download 2 Word document
(255kb)
This chapter from the ITU's Global Trends in Telecommunications Reform 2005 examines the market and regulatory implications of the shift to IP networks and outlines the different types of responses regulators are making to VoIP calling.

Download 3
(pdf format, 310kb)
Leslie Chan, Barbara Kirsop, Subbiah Arunachalam look at the use of Open Access archiving as a way of improving scientific capacity building.

If you have updates or interesting material to add, please send it to info@balancingact-africa.com

ALGERIA ANGOLA BENIN BOTSWANA BURKINA FASO BURUNDI CAMEROON CAPE VERDE CENTRAL AFRICAN REPUBLIC CHAD COMOROS CONGO COTE D'IVOIRE DEMOCRATIC REPUBLIC OF CONGO DJIBOUTI EGYPT EQUATORIAL GUINEA ERITREA ETHIOPIA GABON GAMBIA GHANA GUINEA GUINEA-BISSAU KENYA LESOTHO LIBERIA LIBYAN ARAB JAMAHIRIYA MADAGASCAR MALAWI MALI MAURITANIA MAURITIUS MOROCCO MOZAMBIQUE NAMIBIA NIGER NIGERIA REUNION RWANDA SAO TOME & PRINCIPE SENEGAL SEYCHELLES SIERRA LEONE SOMALIA SOUTH AFRICA SUDAN SWAZILAND TOGO TUNISIA UGANDA UNITED REP OF TANZANIA ZAMBIA ZIMBABWE

GABON - MARKET GROWS IN THE LONG RUN-UP TO PRIVATIZATION

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ISSUE NO 143

GABON - MARKET GROWS IN THE LONG RUN-UP TO PRIVATIZATION

Gabon has entered the communications era with a bang. As elsewhere in Africa, mobile subscribers exceed fixed lines: a staggering 100,000 to 14,000. The state telco is being prepared for privatization but the climate for external investment is not auspicious. The natural investor in Francophone Africa, France Télécom is struggling to get out from under a mountain of debt. The internet has developed but subscriber numbers are small and in large part focused in the capital. Edgard Mandrault describes what has taken place.

The first internet operator in Gabon was l’Office des Postes et des Télécommunications (OPT) who set up an experimental node in Libreville, the political capital of the country with a 128 kbps with MCI in the USA. From this initial platform came the inaugeration of a full service in May 1998 which was actually composed of two international links of 512 kbps: one with France Télécom and the other with Cable and Wireless.

In the course of developing the internet in the country, these links were connected to secondary nodes in the principal towns in the interior of the country (Port-Gentil, Franceville, Lambaréné) Because of the congestion on these links and as part of OPT’s development framework for modernisation, the Government is providing new investment in the last phase before the company is privatised. These important investment plans include: improvements to the telecoms infrastructure, notably the link to the fibre optic cable (now completed), local radio links, telephone centres and the automating of exchanges. A large part of this investment has been underwritten by a loan from the la Banque Islamique de Développement (BID).

At the same time and as part of a campaign to popularise internet usage in the country, OPT has taken measures to reduce access costs, line charges and the monthly supplement for a dial-up service. So today for example a dial-up subscription costs FF118 (a one-off charge) and users pay FF0.45 a minute for telephone use.

These different incentives combined with a strong demand have contributed to the acceleration of the development of the internet, particularly the number of individual and institutional users. There are about 5,000 individual dial-up subscribers, 40-50 institutional subscribers, and 15-20,000 individuals (largely young) who use the 50 cyber-cafes (of which 90% are in the capital Libreville).

In terms of ISPs, in addition to OPT there are now two other providers: Internetgabon (/www.internet.com) and Solsi (www.solsi.com/).

Without the presence of a dynamic private sector and international organisations and other ambassadors, there is a very big imperative for the Government to take on the role of promoter of ICT. It has been made real by the creation of a ministerial department with responsibilities for ICT. It has launched two projects with UNDP to promote ICT (Projet RDD-Internet and Projet Gabon-Com). It also intends to start linking ministries online (as well as agencies associated with them) and as a prelude is conducting a study looking at how it will approach the process.

In this spirit, l’Université des Sciences et Techniques de Masaku (www.ustm.net), located in Franceville in the south-east of the country is seeking to become the national centre for training engineers and technical personnel for the country. With the support of the American Ambassador it has installed a V-SAT link with Houston, a link that allows the University access to the latest information on technology and related issues.

It is also worth noting that the Government - with the support of the IMF and the World Bank - is in the final phase of restructuring the state telco prior to privatization. This important process has meant that various key pieces of legislation have already been put in place:

- Licences for gsm operators in 1999: three operators, of which two are private (Libertis, Celtel-Gabon et Télécel-Gabon) who have over 100,000 subscribers compared to less than 14,000 fixed line subscribers.

- The break-up of OPT into Gabon Télécoms and Gabon Postes,with two accompanying regulatory agencies.

- The privitization of Gabon Télécoms has been subject to a number of delays and the regulatory body will take some time to find its feet.

The article’s author Edgard Mandrault can be contacted on: ayimambe@inet.ga

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ISSUE NO 143 TELECOMS NEWS

INDEX

GHANAIAN GOVT LOOKS SET TO USE VENDOR FINANCING FOR GT INVESTMENT PLANS

The exact shape of the Ghanaian Government’s deal with Telenor and how it intends to finance its expansion plans are becoming clearer. There has been much adverse comment locally on the cost of the agreement. Telenor is to be paid US$1.8 million, more than the entire local wage bill. Nonetheless the contract will be cheap at any price if the contractors can make the company more efficient and effective at delivering new lines and get it to contribute net profits to its main shareholder the Government.

In terms of its investment plans, the Government appears to be about to rely upon vendor financing to underwrite its expansion plans. Why should anyone worry about vendor financing? Well it means that instead of direct investment by the Government that Ghana Telecom will be saddled with higher levels of debt and unless it chooses wisely, could well be tied into a single equipment path for many years to come. Meanwhile the Minister is presenting this route as investment. However according to Telenor’s Chief Press Spokesman:"The contract with Ghana Telecom is a plain management contract and we have no plans to invest in the company."

Minister Felix Owusu-Adjapong said the government has accepted that it will have to buy the shares the Ghana Telecom shares held by G-Com (a Telekom Malaysia subsidiary) which are currently under valuation. "We expect to fully complete the transaction by the end of the year."

MALI’S IKATEL SIGNS DEAL WITH ALCATEL ON NETWORK

Ikatel, the second GSM operator of Mali and a subsidiary of Sonatel/France Telecom, has announced that it has signed a contract for the delivery of a nationwide GSM-network in Mali with Alcatel. The first phase of the network installation will start in Bamako by end-2002. When completed, the network will be the largest-capacity network in Mali.

EAST AFRICAN BUSINESSES BACK THE FIBRE CONNECTION

East African businesses have taken the first step to fulfil an ambitious plan to have an optic fibre installed in the east coast of Africa to ease communication with the rest of the world. Chief executives drawn from a consortium consisting of Telkom Kenya, Tanzania Telecommunications Company Ltd, Uganda Telecommunications Ltd, MTN, Zantel, mobile telephone providers in the region, the Nation Media Group and other data operators held their first meeting yesterday in Nairobi to brainstorm on proposals made last year.

One of the proposals then, was to have a fibre-optic ring around the East African coast, which if implemented, would substantially reduce the high US$400 million annual bill that Africa pays for relaying its intra-continental calls through Europe. The undersea cable, which experts estimate would cost Sh300 million could also trigger lower telephone and Internet costs in a region where lack of basic infrastructure and pervasive state control have severely stifled the take-off of many telecommunications-based businesses.

While opening yesterday’s one-day session at the Grand Regency Hotel, Telkom Kenya managing director Augustine Cheserem said: "Africa is paying huge amounts of money to the West, money which can be used to build the cable. Africa has better connection to Europe and America than within the continent."

(source: The Nation)

MAURITIUS: TELCO LIBERALIZATION TAKING SHAPE

The liberalization of telecommunications in Mauritius continues to take shape. ICTA, Information and Communication Technologies Authority, the regulatory body has published a draft contract for interconnection as a guideline to future operators The final contract will be issued after consultation with all the parties concerned. The interconnection contract is a key element in the process of liberalization, which will have an influence on both operator’s tariff and marketing strategic. For its part, Mauritius Telecom, is working on an interconnection agreement, which will be negotiated with future operators individually.

ICTA plan to issue first licenses around end of January 2003. The process has been slowed up due to missing elements in some applicants projects submitted to the Authority, among them XTS Network, a French company launched in 1999, with presence in territories like Reunion Island and Martinique, offering VoIP service. It has been asked by the Authority to incorporate a local company, as its application cannot be considered if does not have a legal presence in Mauritius. The shortlisting of the 27 applicants continue at ICTA this week for licenses covering, international telephony, ISP, cell phone and VSAT.

(source: www.rufaa.com)

SEVEN BIDDERS FOR 30% STAKE IN MALAWI TELECOMS

According to a Reuters report, the state privatisation agency announced that seven groups submitted bids for a 30% stake in state-owned telecommunications provider Malawi Telecommunications Limited (MTL). One local bid and six international bids came after the withdrawal of Zimbabwean firm Econet from a consortium with Malawi’s Press Corporation that had been selected by the government as the preferred bidder in 2002. The consortium had offered US$ 16 million for an 80% stake in MTL. However, a consultant’s report valued MTL at between US$ 19.8 million and $34.8 million. The company’s average annual profit is approximately 350 million kwacha (about US$ 4.1 million).

The new bidders are Mauritius Telecom, Detecon ­ a unit of Deutsche Telekom ­ South Africa-based Trojan Communications, Telenor, CDC Capital Partners and Telecommunications Consultants India Limited. Press Corporation has also re-submitted its own bid.

MTL recently launched a much needed US$ 28 million expansion project to increase fixed-line coverage and enhance efficiency. There are currently only 70,000 working fixed lines in a country with a population of over 11.5 million. This places Malawi’s fixed-line teledensity among the lowest in the world.

http://www.inteleconresearch.com/regnews/latest.html

IN BRIEF

- Sun Satellite Ltd, of Senegalese Abdoolaye Diagne, one of the applicants for a licence with Mauritius’ Information and Communication Technologies Authority (ICTA) is proposing prepaid cards for international calls. Sun Satellite Ltd, is partnering with Gensat for their international connection.

- Zimbabwean customers using Econet Wireless’ Buddie pre-paid product will soon be able to have their accounts recharged by their relatives and friends living or working outside Zimbabwe in a major technological breakthrough that Econet has been developing during the past two years.

- DAKS Couriers, a mail and package delivery company operating in 56 districts, has entered into a venture with Uganda Telecom, to operate drop-in centres at all Mango outlets.

ISSUE NO 143 INTERNET NEWS

INDEX

ODEBRECHT SELECTS KINGSTON INMEDIA FOR ITS ANGOLAN OPERATION

Kingston inmedia last week announced that it is providing Internet backbone connectivity and VoIP services via satellite to the Odebrecht Group, an Engineering, Construction, Chemicals and Petrochemicals group . The solution will be routed via Kingston inmedia’s Gerrards Cross teleport, allowing fast and reliable voice and data communication between Odebrecht’s Angolan office and its Head Office in Brazil, as well as offices in North America and Europe.

"Angola is a key strategic market for Odebrecht so communication between employees in Angola and our Brazilian Head Office is absolutely critical. We required an adaptable, high quality international solution that would happen within days rather than weeks or months," explained Peter Carr, Telecom Manager, Odebrecht. "Kingston inmedia’s reputation in the industry for first-class service delivery and VoIP-via-satellite expertise made them the obvious choice. The project was painless, seamless and up and running just 3 days after contract completion."

Despite improvements in deregulation, connectivity in Angola is still relatively difficult, particularly in areas affected by war and a ravaged economy. In selecting an easily deployed satellite-based solution to transmit voice and Internet data, Angolan based companies such as Odebrecht can overcome the problems associated with the lack of a high quality communications infrastructure.

"We have worked hard to deliver a solution that really gets to the core of Odebrecht’s business needs, and are delighted that the team turned it around so quickly. The end result is another example of Kingston inmedia connecting people in innovative ways - just because a country doesn’t have the best telecommunications infrastructure, this no longer means that it can’t do business with the rest of the world," says Lisa-Jayne Dowe, Sales Manager, International Carriers, Kingston inmedia.

MWEB LAUNCHES ONLINE PRODUCT QQ AS A LIFESTYLE BRAND FOR TEXTERS

Positioned as a lifestyle brand, QQ, M-Web says, has been designed with the SMS Generation in mind and aims to blend entertainment value with online messaging in a single, compelling product that is easy to use and fun to keep on using. Says M-Web CEO Andrew Milne: "Instant messaging is growing at a phenomenal rate worldwide, and adds huge value to online communication. We believe that, over time, IM will become the preferred method of online communications, not just between PCs, but between all networked devices."The QQ offering comprises a variety of elements, from the signature penguin character for a Linux-based product, avatars that allow users to choose their own online personality, message and chat-room emoticons, screensavers, wallpapers, mobile phone graphics to QQ-branded merchandise offered in competitions and as give-aways. The QQ technology was sourced from Chinese company Tencent Computer Systems - one of the world’s Big 4 IM service providers. http://www.qq.co.za

ISSUE NO 143 COMPUTER NEWS

INDEX

BOTSWANA COMPUTERISES COMPANY REGISTRATIONS

The company registration process will be computerised instead of being done manually. Government had commissioned KPMG Consulting to come up with a solution that would replace the manual data collection and registration of companies. It is hoped that this solution will assist in removing the backlog that has characterised the operations of the department in the last two years. It currently takes more than two to three months for a company to be registered in Botswana as the process is manual.

(source: Mmegi Online)

IN BRIEF

- Bytes Technology Networks (BTN), a division of Bytes Technology Group Limited (a member of the Altron Group), has been appointed Glenrand MIB Limited’s Microsoft Licencing Consultant to licence and manage existing desktops, as well as new additions and remote users.

- NamITech Limited has announced it has signed an agreement with Information Security Distributor, Condyn. In terms of the agreement NamITech will become a certified reseller of the ISS product line.

- Digital Links International, is a new UK based not-for-profit organisation that refurbishes second-hand computers in the UK and provides them at low cost to local organisations, (such as schools, charities, community organisations) or international development organisations working in the South. http://www.digital-links.org)

ISSUE NO 143 ON THE MONEY

INDEX

AFRICAN LAKES YEAR END RESULTS SHOW £5.4 OPERATING LOSS

According to the preliminary results announced last week:"Prior to exceptionals the Group operating loss is £5.4 million (2001: £3 million), the £2.4 million difference being primarily due to the £1 million lower gross profit and a £0.9 million increase in goodwill amortisation. Group net operating expenses are higher at £13.2 million (2001:£11.8 million) because they include a full year for Africa Online and Menanet." The latter means that the cuts made in the autumn were made after the end of the company’s financial year 30 September 2002.

The group will be relying on the disposal of its non-tech assets to stay afloat:"In the current investment and banking climate the Group has had to rely primarily on its own cash generation both from operations and from asset disposals to fund its working capital needs and its capital expenditure and restructuring costs. The Group’s target is to be cash positive at the Group level within the first half of the non-core businesses to fund itself. The fact that the expected IFC investment did not materialise means that the Group is completing the disposal of its non-core assets as well as exploring other funding routes in order to have sufficient working capital to meet its needs."

The results cast an interesting sidelight on the failed IFC deal:"Entry into both the South African and Nigerian markets were a part of our IFC/AAIF planning and in the absence of the intended funding this has had to be postponed."

African Lakes internet businesses would represent an interesting opportunity for someone with pan-continental ambitions. Possible contenders? Naspers-owned Mweb who have begun to resume their expansion plans after a pause while they saw off ABSA’s "free" internet service. Econet maybe. It probably has the funds and is represented in one of the major African markets, Nigeria.

IN BRIEF

- Communications minister Ivy Matsepe-Casaburri today said she agreed with the regulator’s recommendation that neither Goldleaf Trading nor Optis Telecommunications be awarded a stake in SA’s second fixed-line telephone company. In doing so, she may have triggered a legal battle reminiscent of that which delayed the third cellular licence. Goldleaf immediately said it would turn to the courts to halt the selection process and it could demand a full judicial review of the process to date.

- There is speculation that Johnnic will sell or unbundle its 37% stake in MTN, whose value has been increased by the SA Government’s decision to allow it greater levels of external financing.

- South Africa’s government and international equity partners SBC and Telekom Malaysia have agreed not to sell their shares in phone utility Telkom for six months after it is listed, in what corporate financiers said on Thursday was standard agreement.

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ISSUE NO 143 AFRICAN WEB NEWS

INDEX

NIGERIAN WEB SCAM RIPS OFF RHODES UNIVERSITY

A Nigerian college is using material from the Rhodes University website in South Africa to promote itself. The so-called Sefcody’s International College of Nigeria has even used campus pictures of Rhodes University in Grahamstown, claiming them as its own.

Superimposed over the beautiful face of the clock tower at the Rhodes administration building are the words "Sefcody’s College". The Victoria Island suburb of Lagos in which the college claims to be based bears a remarkable resemblance to Grahamstown.

Beneath all the Grahamstown and East London-based pictures is a map of Lagos and a picture of the woman they claim is the Sefcody’s registrar - a Dr Mrs Philomena Okika PhD.While she bears no resemblance to Rhodes vice-chancellor Dr David Woods, her website message is identical.

The sting in the tail is that if you want to teach at this glorious, upmarket institution based in an "idyllic setting" with its cathedral-like chapel, it will cost you $350 (about R3 150) for a "processing fee", naturally. Rhodes University spokesperson Linda Burton said the university was aware of the website and was taking "appropriate action".

(source: The Star)

TECTONIC OFFERS TOP SOURCE FOR AFRICAN LINUX COMMUNITY

Tectonic is a news site focusing on the use of open source software(OSS) in Africa. Although physically based in South Africa, the site coverage ands its contributors come from all around the continent.

The site, which was originally started as a "hobby" site a few years ago, was formally re-launched in January of this year in response to the growing interest in open source software. Tectonic now prides itself on providing the best possible news coverage of OSS on the African continent. It also strives to add to the growing debate over the use of open source in government and developing countries and to provide the best possible platform for the technology needs of the continent to be articulated.

The site is maintained and financed by owner and developer Alastair Otter. Over the years Tectonic has evolved to include its own home-grown (and open source) publishing engine as well as a growing list of contributors. Material for the site is gathered and written up by volunteer contributors and the editorial team strives to provide as many original and topical stories as possible.

Although traffic to the site is still relatively low at around 2000 page views a month, the growing interest in open source in Africa is ensuring that the number of visitors to the site is growing by close to 100% a month.

Future plans for the site include forums for debating the merits of open source as well as a section dedicated to the many success stories of open source implementations in Africa. But at the end of the day Tectonic is driven by the community of users that visit it and many of the future developments of the site will be determined by community needs.

http://www.tectonic.co.za

IN BRIEF

- Ugandan company Watuwetu has launched an online shopping service for Uganda, Tanzania and Kenya. The online store provides products such as mobile phones, gift vouchers and certificates, flowers and prides itself on being the best in market at delivering. Watuwetu.com requires site registration (user ID and Password) to purchase goods and services. The registration allows the online shop to provide its customers with valuable services like order status and order history that requires some level of security as well as confidentiality. Located in Texas US, Watuwetu works in partnership with Ugandan companies such as Osse Ltd, FedEx Courier Services, Shoprite, Rusadia Florists, Ange Noir, Silk, Silk Royale and Viper Room.

- The Tanzanian Parliament is having trouble as its most likely domain name has been bought (bungetz.org) and is now being used by a porn site operator.

- UNESCO is supporting the DRC’s national youth information centre InfoYouth to create a website. http://portal.unesco.org/ci/ev.php?URL_ID=7471&URL_DO=DO_TOPIC&URL_SECTION=2 01&reload=1044029584

SPECIAL BRIEFING - THE BENEFITS FOR AFRICA FROM CONVERGENCE

Teresa Peters of Bridges.org looks at convergence can affect lives in Africa and how positive changes can be made to affect the this part of the balance of the digital divide.

We tend to think about convergence in terms of technology alone, but convergence in information and communications technology (ICT) does not solely involve technological innovation, it also has a real impact on everyday lives that can potentially create further imbalances in terms of the digital divide, especially in the developing world. As an evolving concept, convergence encompasses a combination of opportunities and challenges, not only for the ICT industry, but also for regulators, policy makers and society at large.

What does it mean? Convergence lacks a generic or universal definition. The term is used interchangeably between and within the contexts of integrating technologies, services and applications, markets, policies and regulations, institutions and their functions; both within and between nations.

In the past, telecommunications, information technology (IT) and broadcasting all operated independently in terms of the technology used, the information transmitted and the networks employed. Television, radio, telephones and computers were used for discrete purposes and the services provided were regulated via separate laws, usually by different regulators, and with no obvious need for coherence between these separate laws and regulators. Technological convergence enables traditionally distinct voice and data transmissions to be transported over the same network and to use integrated consumer devices for purposes such as telephony, television or personal computing. The European Union (EU) defines convergence as "the ability of different network platforms to carry essentially similar kinds of services, including the coming together of consumer devices such as the telephone, television and personal computing. It is also taking place between infrastructures, and at the content, service, and application levels. The term is also used on a broader scale to refer to the harmonisation of telecommunications standards, policies, and regulatory frameworks between member states of institutions such as the OECD, the South African Development Community (SADC), and the European Union (EU).

Technology convergence offers massive opportunities for the development of new value-added services, convenience, efficiency and the expansion of consumer choice. It certainly expands the overall market for ICT and related services, and is likely to be the catalyst for the next stage in the integration of the world economy. Digital technology and convergence now allow both traditional and new communication services to be provided over the same networks, which should lower the price of communications services due to increased efficiency and lower transmission costs.

With these benefits come new policy and regulatory challenges, such as the setting of manufacturing standards, facilitating cyber-trade, controlling emerging cyber-crime, protecting consumer interests, intellectual property rights, and other public issues. Technological innovations are taking place faster than regulatory developments with the danger that regulatory regimes will be unable to catch up, leading to ineffective regulation. If the developing world is to feel the full benefit of convergence then the legal and regulatory environment must develop at the same pace, and new laws must be drafted in such a way as to be technology neutral and to take account of international developments and the needs of a number of different constituencies.

Different nations and institutions are adapting and modifying their policies, regulations, and institutional frameworks to address issues in regulating the manufacturing of and trade in converged IT, media and telecommunications goods and services within and between countries. The issues posed by convergence need to be addressed by updating regulatory frameworks to address emerging industry, market, and public protection issues; aligning national regulatory practices with international agreements; updating compatibility of regulatory institutions to convergence practices; and, informing traditional policy-making to consider convergence trends.

Different nations and institutions are adapting their policies, regulations, and institutional frameworks to address issues in an increasingly converging communications sector, both within and between countries. These issues need to be addressed by updating regulatory frameworks and institutions to address emerging industry, market, and public protection issues; aligning national regulatory practices with international agreements; and, informing traditional policy-making to consider convergence trends.

Examples of issues that will need to be addressed include the harmonisation of definitions used in converging equipments, technologies and services so as to improve the regulation of standards and the licensing of converging technologies and equipments. This is needed particularly where separate regulators cover discrete technological areas. Convergence increasingly needs cross-product and cross-platform regulation and licensing. Regulators must be encouraged to cooperate and integrate their regulatory efforts, and should ultimately consider merging regulatory bodies. The formation of a cross-sectional regulator would facilitate the existence and implementation of uniform cross-product standards upon which interoperability and interconnection of services and networks can be regulated. Effective regulation will remain a pipe dream, unless regulators are sufficiently resourced, have complete political independence, and the ability to make unbiased decisions.

Today, national regulators are aligning their regulations to international agreements drawn up by the International Telecommunications Union (ITU) and the requirements in the General Agreements on Trade and Services (GATS). Regulations are also being brought into line with regional economic integration practices, as seen with the OECD in the EU and, to a limited extent, with the Telecommunications Regulators’ Association of Southern Africa (TRASA) in SADC. National regulators will increasingly need to keep themselves abreast of changes beyond their borders if they are to remain effective, because many of the new technologies are not limited by political and geographic boundaries.

An emerging trend is the establishment of cross-sectional regulators that implement regulatory standards and practices that are not sector or equipment specific. The USA was the first to merge technology-specific regulators to regulate across telecommunications, media, and broadcasting services, with similar examples in Austria, Canada and Portugal. The same trend has occurred in developing countries with examples in Bosnia and Herzegovina, Botswana and South Africa.

While these developments may enable uniform and effective regulation across newly converging technology and service sectors, they will be ineffective unless they are accompanied by mutually supportive policies and regulations in a wide variety of related economic and social sectors. And as technology convergence accelerates, nations will need to think and plan differently if they are to maximise the benefit that it offers. Policy formulation needs to be rethought. Instead of stand-alone policies on issues such as telecommunications, healthcare and banking, there is an increasing need to develop and integrate a wide variety of policy initiatives and implementation projects into single coherent strategies. Only then will nations be equipped to succeed and survive in the information era.

Of course, Africa has far more pressing issues and challenges to address than convergence. But the stark reality of the digital divide is that it is growing, and convergence only serves to increase the rate of growth. Dealing with convergence may not be a priority, but developing country governments need to be aware of the opportunities and challenges that it offers, especially if they hope to leapfrog in technology terms. If for that reason alone African governments need to take convergence into account when developing policy.

ISSUE NO 143 IN SEARCH OF THE BUSINESS MODEL

INDEX

ONLINE PAYMENT - THE AFRICAN ECOMMERCE NIGHTMARE POST 9-11

Cordelia Salter-Nour of eShop Africa explains the negative impact of 9-11 security precautions on Africa’s fledgling e-commerce businesses.

If you want to sell something online but are a business based in Africa one of your biggest challenges will be how to take payments. For small transactions there are PayPal (US) or NoChex (UK) but transaction charges are higher if your bank account is in Africa. Also they’re not good for serious e-commerce because both you and your customer must be members and your customer may not be willing to take the time to join just to pay you.

Unless your business already has merchant status (the ability to process credit cards) at first glance there appear to be many credit card services providers (WorldPay, Datacash, Nexus, etc.) offering credit card processing services. When you get down to the small print though your main place of business must be within their geographically approved areas (not Africa) and so must your bank accounts. UK legislation used to allow for loopholes such as using a personal credit card issued in the UK to secure online processing for a business based in Africa. However since September 11 credit card service providers are being forced to implement legislation called ‘Know your customer’ which requires that you declare your main place of business. If it is in Africa they will not support you.

When asked for comment WorldPay said they regretted not being able to support the African market but the "Know your customer" scheme was too expensive to enforce. In other words, they don’t think the African market is worth it.

Until there is a truly global ecash solution that everyone - including Africans - can use then ecommerce is always going to be a minority sport in Africa. It’s difficult to take credit card payments on your site and your own domestic market has no way to pay online.

IN BRIEF

A Cape Town doctor has dramatically helped the fight against tuberculosis (TB) by introducing a SMS service to remind patients to take their medication. Dr. David Green, a consultant in Managed Care, Disease Management and Information Systems, became so frustrated when his mother constantly forgot to take her medication for hypertension, that he started sending her SMS reminders—and it worked. It did not take him long to make the connection between the effectiveness that his SMS messages had on alerting his mother, the high incidence of TB in Cape Town, and the possibilities that bulk SMS messages could present. Further details: http://www.pambazuka.org/newsletter.php?id=12964

ISSUE NO 143 JOBS, PEOPLE, EVENTS

INDEX

PEOPLE

- Colonel Abihud N. Nalingigwa, Director General, Tanzania Communication Commission made a plea for operators to extend their services to rural areas at the inauguration of Tanzania’s first private-sector commercial Hub: SatComNet (hosted by Intelsat):"We would like to suggest to all data services providers to extend their services to areas close to the economic pillars of the country. We acknowledge the fact that the cost of deployment is higher in rural areas that in towns. We still believe that there are obvious benefits to those who would take initiative to extend the services to rural areas especially those with economic potential".

- At a seminar on " the Development of the information technologies sector in Tunisia and integration into the regional markets" in Tunis held by the Global Technology Network and the Tunisian-American Chamber of Commerce and Industry, Minister of Development and International Co-operation Mohamed Nouri Jouini highlighted Tunisia’s care to boost the sector of modern technologies and draw on the opportunities it offers, reviewing the reforms initiated in order to modernize basic infrastructure which had benefited during the 9th plan period (1997-2001)of an amount estimated at 1.5 billion dinars.

- Mr. E. Zaato, of the Bak of Ghana explained at an "Information Communication and Technology (ICT) for Governance 2003" conference held last week in Accra that, it would be more economical and less consuming for banks to join together to design and produce a common credit and debit card than to do them individually.He pointed out that the cost per bank for the production of the products would reduce, as there would be no duplication of paraphernalia. He suggested, "instead of the numerous banks developing different cards, they could have one card to be used by all banks in the country". He noted that banks could benefit a lot for coming together because terminals would be used at higher levels.

Mr. Zaato revealed that it is the policy of BoG to make the country a cashless society but this is being hampered by certain factors. Poor telecommunication system and unsatisfactory legal framework are some of the problems affecting the smooth development of that vision.In order to solve these problems, Mr. Zaato disclosed that BoG had drafted two bills to Parliament to address these issues.He also said that automated clearing houses with electronic payment modes would be established to transfer messages between banks and this would be for both bulk and small values.

- Mary Evslin has stepped down as Vice President of Corporate Communications at ITXC and has been replaced by Cynthia Artin.

EVENTS

BOTSWANA HOSTS SCHOOLNET’S PAN-AFRICAN CONFERENCE (28 APRIL - 2 MAY 2003)

A Pan-African workshop focused on using information and communication technologies (ICTs) to support the education systems in Africa will be held in Gaborone from 28 April ­ 2 May 2003. An estimated 250 participants from Ministries of Education, schoolnet organizations, development agencies and the ICT-related private sector companies will be participating. The event is being organized by The Ministry of Education (Botswana), Schoolnet Africa and The Commonwealth of Learning, in partnership with other international agencies.

Workshop Website: www.schoolnetafrica.net/IAS2003/index.htm This site will be live from 5 February 2003.

INDEX

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This page last updated on January 28 2004.

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