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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.

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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.

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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.

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(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

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EFFECTIVE INTERCONNECT - AFRICA'S NEXT LIBERALISATION FRONTIER

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ISSUE NO 160

EFFECTIVE INTERCONNECT - AFRICA’S NEXT LIBERALISATION FRONTIER

Charges to carriers for using the networks of others -otherwise known as interconnect - is a challenge for many African operators. Not a week passes without some African interconnect issues being in the news. This week it’s the NCC’s Ndukwe lashing NITEL for its failure to install equipment to make it happen. Complete interconnection between networks has to be the absolute cornerstone a competitive environment. The problem is two-fold: firstly. a regulatory issue, usually about the level of interconnect costs and a practical issue of installing equipment for allowing interconnect and billing for this traffic. Christian Cuipek, INTEC’s Regional Director in Africa looks at the issues.

One example is the recent difficulties faced in Mali by Soltema, the incumbent telco. Soltema’s wireless wing Malitel is dealing with competition for the first time with the launch of rival mobile operator Inkatel SA. Since going live in January 2003, Ikatel SA has attracted over 50,000 users in Mali for its GSM services. Unfortunately Interconnectivity has not been achieved between Ikatel and SOTELMA, leaving mobile users unable to make calls outside their own network. At the moment, both companies are trying to work out an effective interconnect agreement to overcome the challenges preventing the support of incoming calls. One of the main problems is Ikatel’s use of the pre-fix number "4" in front of each GSM user number, instead of the pre-fix number "6", which is the standard imposed by the country’s committee for telecommunications regulations (CRT). Soltema’s network application does not have the flexibility to identify and rate Ikatel’s calls so they are barred from entry. The company also lacks the technology to gather network usage data to bill for interconnect services.

Operators in countries such as Nigeria have also faced interconnection issues since the launch of rival GSM services. Part of the problem is the cost of the actual interconnection charges, which has a profound effect on the development of wholesale or retail markets in Nigeria, as well as on decisions to invest in infrastructure. Companies such as NITEL have argued that their GSM tariff of N21 per minute can barely support the prevailing interconnect tariff of N18. Furthermore, most companies do not have the network technology to ensure that their future inter-carrier partners are not going to overcharge for their services.

In February 2003, Nigeria’s Communications Commission (NCC) met with operators to smooth out this and other interconnection disputes between NITEL, the National carrier and GSM operators. The NCC warned operators that 60 days after physical interconnection, an agreement would have be executed by the parties to the interconnect. Otherwise, the NCC would step in to enforce the new policy.

NCC’s pressure has yielded some results. In May 2003, MTN Nigeria Communication Limited signed an interconnect agreement with the second national operator and fourth GSM operator, Globacom. This leaves M-Tel Limited (Nitel GSM) as the only mobile operator with whom MTN has no agreement on interconnectivity. The next step is going live with services. Before this can be achieved, however, operators must ensure they have the right Operations Support Systems (OSS) to support the interconnect agreements.

OSS is as vital to network interconnectivity as the agreements themselves. It is the glue that holds the network together, an investment that can be costly upfront but provides long-term benefits that are too great for Africa’s operators to ignore. Of particular importance is a flexible interconnect billing application. Interconnection fees already provide a vital source of revenue for operators in Africa, especially for international calls. Approximately 4 billion dollars (US) are generated each year as a result of interconnection agreements in Africa. Installing a flexible platform can allow companies to increase this revenue stream by 30 per cent. This adds up to an extra billion dollars worth of income that African countries can reinvest into their infrastructure.

The good news is that now is the right time for Nitel, Sotelma and other African operators to buy their software. The overall slowdown of the global telecoms market has meant that OSS vendors have had to slash their prices in a bid to win customers. Many software companies increased product costs in the late 1990s to take advantage of the amount of money carriers had at that time. According to the industry association Telemanagement Forum, today’s prices have fallen so much that OSS vendors are even losing money just to win business. Margins have been cut slim, and some vendors are selling at below cost. Ten years ago carriers were spending anything up to $20 million on massive systems, but now prices around $1 million, and even below that, are common.

Before investing in interconnect billing applications operators must know what to look for when selecting a system. This can seem daunting when one considers there are hundreds of vendors offering various solutions. The first thing to remember, however, is that most carriers have similar billing requirements even if their network priorities are different. To start with, operators want a system that is easy to install and requires the least amount of effort to generate the bill. It should make billing uncomplicated and support other operational support systems such as revenue assurance and fraud management. Scalability to manage growing call volumes is critical, as is flexibility to support new services on any type of network, especially when one considers the competitive advantages of fast time to market. Most importantly, operators need a system that meets its business needs anytime, whether its today or tomorrow - a platform that can be supported for as long as a user plans on running it.

A typical interconnect system collects and provides access to information that is used to produce and verify invoices from other operators, based upon products and services terminating on or originating from the operator’s own network. A flexible interconnect system provides the capability to report on all interconnection activities, such as standard telephony based charging and origin based charging. It also offers the necessary information to support production of revenue and cost reports by operator, product and service as required by middle east or international interconnect agreements.

Complementing any interconnect billing system is the mediation platform, which is the interface installed between the network and other operations support systems (OSS). Mediation allows operators to collect, process and deliver information on the traffic passing through their networks and can help operators support the growth of voice, IP and data for billing purposes without fear of losing vital information or duplicating call records.

African companies have already started to realise the benefits of interconnect, including Senegal’s Sonatel, South Africa’s Cell and Telecom Maroc. They have all recently purchased new systems in response to a growing volume of call traffic. Meanwhile, Egypt Telecom has recently installed new interconnect and mediation platforms to ease interconnect partnership agreements with content and Internet service providers. The company provides the infrastructure for 130 different ISP providers throughout the country and the billing system has helped to handle the growing volume of network traffic generated by these new content-oriented partnerships.

Installing better interconnect billing systems creates a new way for operators to generate money instead of alienating end users with higher tariffs for telephony services. Indeed, making telephony accessible is an imperative requirement for many countries in Africa where mobile and fixed-line services are already prohibitively costly for most subscribers. According to the African Telecommunications Indicators report, fixed line access in countries such as Nigeria, Chad and Ethiopia are among the lowest in the world due to cost, while 80% of African mobile users chose to use pre-paid phone cards, twice the world average, because people cannot afford more expensive contracts. Raising rates to support operational expenses will further prevent users from accessing many services, thereby undermining the success of Africa’s telecommunications industry.

Interconnect billing systems can also produce data information that will help identify losses related to fraud - a major problem for operators in Africa. The global telecommunications industry currently loses half a million dollars to common fraud schemes each day, and the numbers are increasing in areas such as Africa. Operators in South Africa, for example, have already experienced major setbacks to innovative services as a result of fraud. In 2001 half a million-fixed lines in South Africa were disconnected, many as a result of fraudulent activities. This caused the country to drop from third to fifth on the list of African countries with the highest level of tele-density. It also cast a shadow over the future growth of the computer and mobile Internet market in South Africa. North African countries such as Morocco, Tunisia, Egypt and Nigeria have also been identified as high-fraud areas for communications companies such as AT&T, which have lost millions to phone scams in the region. As a result, the US based company now offers restricted international calling cards that enable users to call anywhere in the world except these targeted countries.

Billing systems are important, but the role of government legislation is equally vital to ensure effective interconnect billing between partners in Africa. In many advanced telecoms markets, interconnect charges are regulated to encourage competition by making sure that the charge imposed on a carrier is the same as that used internally by the incumbent. Understandably, many PTTs are reluctant to push interconnect agreements that take away their revenue stronghold, but opening the African markets is a crucial requirement for advancing the telecoms industry and governments must be proactive to ensure that interconnect is adopted by all the carriers. Furthermore, the rise in joint ventures in the region is forcing companies to comply with international telecommunications union (ITU) regulations, which call for open markets and competitive interconnect agreements.

Among the countries pushing ahead with reform is Egypt. The government has drafted an important Telecoms Act that outlines the requirements for ensuring a strong and competitive market. Interconnect is one of the topics identified in the legislation as a precursor to developing a strong economy and the country’s leading telecoms operators are preparing for change by upgrading their billing platforms. The lack of telecoms competition in Egypt had kept consumer prices artificially high and subscriber numbers low. The Telecoms Act and a national regulatory body have quickly changed this reality. There are over 3 million mobile phone subscribers today, opposed to 900,000 last year, and over 7 million fixed line users, an increase of 30 percent since 2000.

The telecoms future in Africa looks promising. Foreign operators are continuing to invest including France Telecom, which maintains a strong presence on the continent with its subsidiaries Cote d’Ivoire Telecom, Sonatel in Senegal and Mauritius Telecom. Emerging markets such as Morocco and Nigeria are also moving ahead by adding new GSM operators to help heighten competition. Meanwhile, International IP Telephony wholesaler ITXC has seen an 1111% increase in voice traffic to and from Africa in the past year. The company, which enables operators to interconnect with its Internet-based global network to deliver and receive international traffic, currently has agreements with Zimbabwe PTC, Ghana Telecom, Senegal’s Sonatel, SotelTchad in Chad and Telekom South Africa. Through ITXC’s interconnection capabilities, operators are quickly gaining access to an international network, new revenue and very competitive outbound rates.

By investing in a solid network infrastructure, and by implementing good interconnect policies and the best billing systems, Africa’s carriers can have an opportunity to maximise their earning potential and to increase the continent’s low tele-density numbers. Billing operators have a responsibility to offer a higher level of technical and educational support with reference to the business benefits of the OSS solutions and other products that African operators purchase. There is a substantial knowledge gap between the West and Africa that must be filled and vendors should be willing to transcend the role of supplier to become a teacher as well. Information so gained by the operator, can help enhance overall network performance as well as improve communication with investors interested in new business ventures.

Christian Cuipek is Regional Director in Africa for INTEC
christian.ciupek @intec-telecom-systems.com

ISSUE NO 160 TELECOMS NEWS

INDEX

SA’S SNO BIDDERS NOW DOWN TO TWO AS DETECON JOINS COMMUNITEL

The second national operator (SNO) working committee has short-listed two of the original four bidders for the SNO licence, although only one of the remaining two was not recommended to the minister, writes Rodney Weidemann of ItWeb.

The recommended bids will now be reviewed by the Independent Communications Authority of SA (ICASA) and a decision will then be taken as to which one will be put forward to minister Ivy Matsepe-Casaburri for consideration for the 51% equity stake.

Two Consortium, which includes Scandinavian operator Telenor, SwedTel and local company Mvelephanda, and CommuniTel, which involves Telecom Namibia, the Umkhonto We Sizwe Military Veterans Association, Gateway Communications (UK/South Africa) and Premier Contracts Agency from the UK were the two recommended consortiums.TeleAccess, which operates the SNO in Zimbabwe, was the bidder that was not put forward to the minister.

Deacon Mathe, chairman of CommuniTel, says an agreement was reached between it and fellow bidders T-Systems/Detecon, which will see the two consortiums collaborate in making a single bid.As such, that means the T-Systems/Detecon bid was not rejected, but merely that the bidders chose to fall under the CommuniTel ambit instead.

"We are very happy to hear that we are one of the two recommended bidders put forward to the minister by the SNO working committee, as it has been a long process and a lot of work to get us where we are," says Mathe.

"We are particularly pleased that the bids have been short-listed in their entirety, rather than attempting to have bits and pieces of several bids combined into one Œsuper bid’, as was mooted at one point."

He says that although the minister may yet choose to ask the two recommended bidders to discuss just such a possibility at a future date, CommuniTel is confident it has what it takes to win the licence on its own.

According to Siyabonga Madyibi, a spokesman at ICASA, the regulator can only recommend a single bid; it does not have the power to attempt to combine parts of different bids."We will judge the two applicants based on defined criteria, and the one that scores the highest will then be recommended to the minister, who will then decide whether to award them the licence," says Madyibi.

NCC’S NDUKWE BLAMES NITEL FOR INTERCONNECT PROBLEMS

The lingering interconnection problem among the GSM operators in the country has been blamed on the Nigerian Telecommunications Limited (NITEL) The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe, said during a media briefing in Lagos yesterday that the inability of NITEL to put its acts together was the principal cause of interconnection problems in the country.

According to Ndukwe, NITEL has not been able to install the necessary equipment to enable mobile to mobile interconnection between its mobile network and other mobile networks.

Adducing sundry reasons NITEL has performed below par in the interconnection issue, Ndukwe said NITEL has had the privatisation burden hanging over its neck since the past two years. He said "this has limited its ability to invest on its network expansion requirements in a timely manner. "

The NCC Boss continued that "the managing Directors have been changed four times since year 2000 and this comes with changes in senior management and board membership," wondering who to really hold responsible for the state of affairs in NITEL.

(source: This Day)

IN BRIEF

- SA Telkom has announced the first roll-out of ADSL in Bloemfontein, Kimberley, Potchefstroom and Welkom.

- The Nigerian Second National Operator (SNO) Globacom may be months, perhaps weeks away from the rollout of its services. After a couple of unfulfilled deadlines which has heightened anxiety among potential subscribers, the company has initiated series of activities in recent weeks which point towards a roll out anytime soon. One of such activities was the meeting recently held with the over 350 dealers who have been selected to market the company’s products and services.

  - Tenders opened last week for the second cellular licence in Namibia and the process will close on September 4 at 12h00. A clarification meeting for prospective tenderers will take place on July 23 in Windhoek. Tender documents can be be obtained from the NCC for a fee of N$2,500.

- SONATEL is rolling out ADSL to the following places: the airport, Diamalaye village, Cite BCEAO, Yoff, Tandian, Cite Air France, Liberte 6, Sacre Coeur 3, Grand Yoff, Patte d’Oie, Scat Urbam, Cite SIPRES, Hann Maristes, Dalifort, Le Mille 8 Sonacos, Cite Elisabeth Diouf and the Espace apartments.

- French phone giant France Telecom said last week it had completely restored telephone communications with earthquake-ravaged Algeria. France Telecom said in a statement it had repaired the undersea Alpal2 cable between the Spanish island of Palma de Mallorca and Algiers. The line was damaged by a severe quake that shook the Algiers and Boumerdes provinces on May 21, claiming close to 2,300 lives.

ISSUE NO 160 INTERNET NEWS

INDEX

SIX E-MAIL SCAMMERS FROM NIGERIA AND BENIN ARRESTED IN HOLLAND

Six men from Nigeria and Benin were convicted of fraud by a Dutch court on Wednesday and received prison sentences of between 301 days and 4.5 years, a court official said. Two of the convicted con men, including the suspected leader of the group, also each have to return 205,702 euros (US$245,000) to one of their victims, the court ruled according to the official, writes Maarten Riejnders of Webwereld.

The six were accused of sending thousands of e-mail messages, faxes and letters to people all over the world and making up various stories to lure people to Amsterdam, from where they operated. The victims were told that their help was needed to transfer money or that they had won a lottery, according to the charges read during a court session earlier this month.

Most Internet users will be familiar with the e-mail messages that the six men from Nigeria and Benin wrote. The "419 Fraud" or "Advance Fee Fraud," as the scams are called, have been around since the early 1980s, but it is only in the past few years that the fraudsters turned to the Internet.

The senders of the e-mail messages often purport to be family members of a former African dictator in need of help to funnel money out of the country. In return for the help, they promise between 10 per cent and 25 per cent of the fortune. In fact, the only people who make money out of the whole operation are the scammers asking for help.

To most Internet users, the fraud is pretty obvious and they delete the messages immediately. Others, however, fall for the fake lucrative proposals, as the Dutch court case shows.

One of the victims, a man from Russia, was lured into paying thousands of dollars after the fraudsters told him he had won an Internet lottery. Not only did he pay a "transfer fee," but also fees for a "non drugs statement" that was required according to the West-African con artists. The victim discovered that he had been scammed only after he was told to pay US$35,000 for a "non terrorism statement," according to the charges.

Another victim, a Swiss professor, gave the scammers US$482,000 after he was told he would receive US$9 million for his help with laundering millions of dollars. The Swiss man paid, among other things, for chemicals that the scammers said were necessary for "cleaning" the bank notes, according to the charges.

Eventually the Swiss professor helped the Dutch police by luring five of the six fraudsters to a train station in Amsterdam, where they were arrested in the summer of 2002. The sixth man was arrested a few months later, it became clear during the court hearing.

Most of the accused did not testify at the trial, but the suspected leader claimed he had nothing to do with the criminal organization. He apparently did not have a convincing explanation for the scam letters found on his computer and the names of victims showing up in his agenda.

How much money the six men made from their operations is still unclear. Dutch police estimate that the scammers made millions of euros.

"Over 20 people informed the police, but we think that is only a tip of the iceberg," a spokesman for the prosecution said.

UUNET FACES CHANGE OF OWNERSHIP BY THE END OF THE YEAR

Internet service provider (ISP) UUNet may be facing a change of ownership towards year-end as its troubled parent MCI (formerly WorldCom) evaluates its investments in emerging markets.

MCI is due to emerge from protection under US bankruptcy (known as Chapter 11 protection) in August, following a plan accepted by 90% of the company’s creditors that will entail the conversion of some of its debt into equity, among other issues. The company has also undertaken a strategic review and has decided to focus on its core telecommunications services.

UUNet MD Dave Meintjies says that while the full impact of MCI’s decisions still have to be evaluated, it could mean that the ISP will be faced with a new shareholder or owner by year-end. The company has had four owners during its lifetime. MCI bought it in 2001 from SA IT group Datatec.

"Right now it is extremely difficult to predict MCI’s ultimate intensions as they are really focused on their own immediate issues and there is no concrete time frame. However, this will not affect the day-to-day operations of UUNet," he says.

Rand Merchant Bank (RMB) has been appointed by MCI to advise it on its African operations that are conducted in SA, Kenya, Botswana, Namibia and Zambia. It is not known when RMB will submit a report or finding to MCI.

While the MCI saga has affected UUNet in terms of being owned by the troubled telecommunications giant, it has had no real impact on the ISP’s operations or its customer base, which includes 2 000 corporations.

According to Meintjies, UUNet’s 2002 revenue jumped to R650 million from R383 million the year before. Customer churn has subsided substantially, giving the company a more stable client base.

"We are the largest of all MCI’s emerging market operations, however, we only account for about 0.3% of its total revenues. Furthermore, MCI has developed a very adverse risk policy that will almost definitely have an impact on its emerging market operations."

Meintjies says that for the time being, UUNet will continue to develop its client base and focus on expanding its services to the corporate market. This will include offering video conferencing facilities and document imaging facilities.

"What we are looking at is offering a corporate lifestyle service that will meet all the telecoms and Internet needs of companies. Our mobile communications services have shown strong growth," he says.

Other issues facing UUNet in the immediate future include deregulation of the telecoms market, the awarding of a second fixed-line operator licence in competition to Telkom and the maturing of the Internet market.

"A lot will depend on the advice given to MCI by RMB and it is just too early to say what form the possible change in ownership will take," Meintjies says.

(source: ItWeb)

IN BRIEF

- Moneynet, an international money transfer service, has begun to consolidate on its record success by signing on more banks, adding more services to the users and generally expanding its operational network. National Bank of Nigeria Limited was leading in operating the MoneyNet since early last year but the proprietary owners of the technology, Della & Associates Incorporated of United States and their Nigerian technical partners, Broadband Technologies Limited, said that a major bank with expansive branch network in the South-Eastern part of the country has just been signed on to operate the services.

ISSUE NO 160 COMPUTER NEWS

INDEX

ARIVIA.KOM PLANS TO 'CONQUER AFRICA'- "INFATUATED WITH DOMINANCE"

Arivia.kom, which last week reported a 141% increase in full-year net income, says it wants to expand from its South African base and "conquer the entire continent", writes Iain Scott of ItWeb.

New contracts include a driver’s licence system for Namibia, traffic information systems for Malawi and Zambia, a motor vehicle registration system for Tanzania and a national social security fund system and police identification system for Uganda. Arivia’s stated intention is to be the dominant information and communications technology solutions provider in Africa. "We are infatuated with dominance," Malele says.

Revenue for the year to end March rose from an annualised R1.21 billion to R1.52 billion, while earnings before interest, tax, depreciation and amortisation increased from R127.26 million to R173.43 million.

"The revenue performance indicates that we have feverishly been looking for opportunities out there," Malele comments. Net income soared from R26.94 million to R65.02 million.The group has a good base from which to fund its expansion plans, with R118.23 million cash on the balance sheet.

IBM MAY OPEN CALL CENTRE IN SA

Within the next two months, technology company IBM should decide whether to open a massive call centre operation in SA or take its business elsewhere. If SA wins its favour, IBM could become an anchor client to help persuade other global companies to consider SA as their offshore call-centre base.

Virgin and General Electric both conducted due diligence exercises on SA last month with help from the trade and industry department. Now the department is waiting for one, two or possibility all three to sign a deal.

The level of government interest in turning SA into their chosen base goes right to the top, with Trade and Industry Minister Alec Erwin and director-general Alistair Ruiters serving as SA’s travelling salesmen.

"We have about 60000 callcentre agents in SA and we think there is the potential to double that in a short period," Ruiters told members of the Call Centre Networking Group last week.

(source: Business Day)

IN BRIEF

- SA IT solutions integrator, Symetrix announced the acquisition of Cape-based Navision solutions provider, Astral Business Solutions.

ISSUE NO 160 ON THE MONEY

INDEX

ECONET WIRELESS IN "BATTLE OF CONTROL" FOR ZIMBABWEAN TELECOMS BUSINESS

Econet Wireless, Zimbabwe’s largest mobile operator, is negotiating to acquire a yet-to-be-named telecommunications business, which was reported last week as a "battle of control" by founder and major shareholder Strive Masiyiwa, a company spokesman said.

If successful, the spokesman from Masiyiwa’s office said, the deal would give Econet investors full value for their money and earnings leverage from its broad global ventures. "If this particular transaction does go ahead, then each shareholder will have an opportunity to assess its value for them," he said.

"We have a good track record for creating value for our shareholders. Any transaction which Econet does is designed to improve the value of the company for all its shareholders."

The company has since issued cautionary statements advising investors of the potential transaction, which the spokesman could not readily discuss or elaborate on, saying the company was bound by confidentiality and strict Zimbabwe Stock Exchange laws.

The spokesman said while investors were free to buy "as many shares as they could", it was impossible for Econet’s core group of owners to lose control of the company because "they have substantial capacity and we could deal with any threat". More importantly, there was "no danger" of Econet’s Zimbabwe operations "falling outside the control of Masiyiwa", the spokesman added.

He said: "He controls enough stock directly and indirectly to continue to exercise control of the company, and he has sufficient access to resources not to have to battle for Econet Zimbabwe’s operations."

The spokesman said it was fallacy to say a major financial institution wanted to take over Econet because of a huge debt owed by the company.

"There is no major institution in Zimbabwe which has that kind of exposure to Econet. All Econet shareholders know that one of the company’s successes in the last year was debt reduction," he said, adding that Econet, at current capitalisation and worth, was "substantially larger than most financial institutions in Zimbabwe".

(source: The Daily News)

IN BRIEF

- Egypt’s Orascom Telecom is one of the bidders for state-run Pakistan Telecommunication Co (PTCL).

- Enterprise solutions provider Baan announced last week that Invensys plc has approved the sale of the company to an investment group consisting of Cerberus Capital Management, LP and General Atlantic Partners, LLC, two private investment firms.

- The privately held MB Technologies group has struck a deal to sell 35% of its storage division StorTech to a black empowerment partner. Its new shareholder will be Sifikile, a company set up to invest in technology businesses by its founders, Sifikile Investment Holdings and Mvelaphanda Strategic Investments.

RESPONSES

ISSUE 158: AFRICAN INTERNET FRAUD BEYOND 419s

Great article as usual - you said all that has to be said ... Nigerian connection, we have our Nima boys too. Again they have their US/Europe connection too. Why blame us? Let them pick up those at the other end (see Internet News above). Quite likely that the many will suffer for the few.

So what ... If they tackle their end on this end with assistance; so much of it coming in, internet security also deserves something practical; people can be arrested and tried quickly (with some assistance?!) and perhaps our version of lock them up and throw away the key.

Sabra Asante

I read the interesting article on cyber fraud in Ghana. As to how prepared the Ghana Police are to deal with the problem, one is not too certain. It is believed there are already plain clothed policemen at (one café), but do step in there at any time of the day you can easily spot these fraudsters. At least I can :) On their part, no form of discretion is employed (not to say I condone this kind of activity) and they are basically telling you "here we are and we are doing so because we can" I really think a lot can be done not only to stop the perpetrators but also round up the other links that form the chain. It will certainly take more than just busting these gangs in cyber cafes. Where do the details coming from? How do delivery service companies tackle the problem on their end? I have a personal contact with the director of national security and he will certainly be of help if called upon. You may ask, why the concern? Well, I am currently working really hard towards the set up of an Internet consultancy, advising businesses on e-commerce solutions, the web as well as other interesting possibilities the Internet and its related technologies offer. It would be in my own and many others interest to see a curb to this ever-increasing problem. I dont want this mail to be forwarded without my permission since if I will play a role in fighting this, I will certainly do it incognito :)

(Name and address witheld)


FastrackInternet Cafes, the trade name for Tin-ifa internet cafes around Ghana experience this problem and we narrowed it down to our Ivorian clients who spend a lot of their time on the tip toe road and just come next door to browse and do these fraudulent things. We confronted them and told them not to use our cafe for such acts since we do not want to be part of their scams.

We actually had a call from our office in the USA that America Airlines security officers had called to inquire about tickets that were being purchased from our IPs with stolen credit cards and this really alarmed us and we took measures from then but blocking a whole store.yahoo.com is a real blow to e-commerce and we have to research quickly on how to utilize other means including powerful firewalls to address this issue. This is one of my main reasons for calling for the creation of the Cybercafe Association since we all could be victims of these scammers which may lead us into serious trouble with security personnel.

Nanayaa Owusu-Prempeh (www.tin-ifa.com)

Another reader e-mailed us with a copy of a mail purporting to come from PayPal asking him to re-confirm his credit card number by sending it to them. He does not have a PayPal account and goes without saying that you should not send your credit card details to people you do not know.

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Reaching the Agents of Change

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ISSUE NO 160 AFRICAN WEB NEWS

INDEX

CYBERSQUATTING: BUSINESS PARKS OF MAURITIUS SUFFERS ATTACK

The cybersquatting of the site Cybercité d’Ebène has caused Business Parks of Mauritius enormous embarassement. No longer holding the legal right to its web site address since the beginning of the year there’s nothing it can do except adopt a .mu address.

The new owner of the address since 10 January 2003, Sham Kumar Missry has acknowledged that he carried out this act of cybersquatting as a challenge to the company. According to BPML:"We have contacted our legal counsel, the ICT authority of Mauritius and Versign Network Solutions with whom we’ve registered our name. They have told us that a legal challenge would be costly and likely to prove ineffective."The only solution seems to be to launch a marketing campaign to publicise the new web site address.

Sham Kumar Missry retorts:"They are pretending to be big professionals but they can’t even control their own shop window". He also says that his company Business Park acquired the site quite legally at the beginning of the year. He is offering to return the site but BPML say they don’t want to negotiate with "such a person."

(source: L’Express)

THE ZAMBIAN SEEKS TO HELP ORGANISATIONS USE THE INTERNET

In 1999 there were only a handful of websites on Zambia and most of the sites lacked the aura of being able to attract potential visitors and investors to the country, writes Leonard Nelson. Furthermore a large number of Zambians residing in other countries were often dismayed by the slow response time and low uptime of other sites. To address these problems, The Zambian was established with the sole purpose of being able to deliver content to anyone interested in the country. At the same time, to encourage Zambian business and other organizations to exploit the power of Internet audiences, all the services such as Yellow Pages, Web Site Design and Banner Advertising were offered free of charge as an incentive to jump start the movement of enterprises establishing an online presence. In the past three years, The Zambian has helped promote a large number of organizations to audiences that typically would not have been accessible. The site has also established strategic alliances with a host of affiliate websites in order to ensure that the services offered are always competitive and comparable to world standards. The Zambian was the first site in Zambia to use Microsoft .NET technology and continues to pave the way forward for other sites in and around Africa. Perhaps the most striking aspect of The Zambian is the fact that the entire site has been built and is continued to be maintained by voluntary efforts - people who believe that Zambia too can be a wired nation.

IN BRIEF

- There is new French-language site offering cultural coverage of the continent: http://www.africinfo.org

- A comprehensive report of the recent Schoolnet conference in Botswana can be found at: http://www.schoolnetafrica.net/IAS2003

- Mike Munetsi’s PAPWEC Solutions has just finished making a documentary about the uses of the Internet in the Gambia. Full details of length and cost: http://www.papwecsolutions.com

- A summary of a recent study on African Distance Learning can be found at: http://www.id21.org/education

- The Science and Development Network have relaunched the new version of its website: http://www.scidev.net

- Fahamu is launching a new series of online courses on effective writing skills, the first of which starts in July 2003. For more details: http://www.fahamu.org/

- Senegalese regulator ART has just launched its site: http://www.art-telecom-senegal.org/

ISSUE NO 160 IN SEARCH OF THE BUSINESS MODEL

INDEX

WORLD TALK DEVELOPS INTERNET VOICE PORTAL FOR RURAL AREAS

WorldTalk gives people in rural areas in developing countries access to information in their own language, over any telephone. It aims to set up self-sustainable enterprises in developing countries, provide them with initial financial and managerial support, and co-ordinate the technological development.

In poor communities computer access is limited and literacy levels low. Telephones require little maintenance and no training. They are already accessible in the form of fixed and mobile and are affordable to a large number of people in developing countries. They provide on-demand access to information, as opposed to radio broadcasts, which are programmed and fixed.

It works as follows. Callers dial the WorldTalk number and get connected to the WorldTalk internet server. Using the telephone keys callers select what they want to listen to from a cascading menu structure. The server links the caller to the right content and plays it to them in their local language. Content is stored as pre-recorded audio with dynamic elements generated on-the-fly using text-to-speech. Callers can be connected to other phone services (counselling, government services, etc) or directed to a call centre for help. The system allows for other features, like sending out information in SMS-format, callers depositing information, and more.

WorldTalk has carried out a market study in KwaZulu Natal in South Africa. This showed a great need for accessible information on topics like housing, welfare, small business, healthcare. We have developed a demonstration system and successfully tested it with end users in KwaZulu Natal.

SouthAfricaTalk is managed by Professor Sam Zondi, who is working to secure a contract with a first customer to launch the pilot project. WorldTalk is looking for support, both financially and in-kind, to make it happen.

For questions or comments, please visit www.worldtalk.org, or email Nathalie Muller at nathalie.muller@worldtalk.org.

NEW STUDY PROVIDES REALITY CHECK ON UPTAKE OF E-COMMERCE IN AFRICA

Balancing Act’s e-commerce correspondent Cordelia Salter-Nour talks Robin Mansell from the London School of Economics, one of the co-authors of a new study on e-commerce in developing countries. Its conclusions - based on research in the horticulture and garment manufacturing sectors - are fairly down beat. It identifies six obstacles: poor ICT structure; poor transport infrastructure; weak or absent legal and institutional infrastructure; weak trust infrastructure for certification and effective redress; lack of preparedness and the need for training and capacity building and resistance and cynicism.

The conclusions drawn show quite clearly that ICT issues such as connectivity and bandwidth are far less important than previously thought and that old-world barriers are still as powerful as ever. Were these the results you were expecting when you started your study or were you expecting ICT capabilities to have more of an impact on e-commerce?

We approached the study with an open mind in terms of what we might find. It would be reasonable to say that we suspected that the types of B2B e-commerce that we would find in use would fall short of the ‘grand’ models espoused by some proponents of e-commerce. We knew that email was the predominant application in use in poor countries with limited infrastructure access and high costs. The teams of researchers within the three countries and at IDS had a deep knowledge of the two industrial sectors before we started the study.

What we did not know was whether and to what extent the firms in these countries and sectors might be taking advantage of B2B e-marketplaces that had been established when we started the study. Many of these were claiming that they could assist firms in strengthening their international trading positions. We were inclined to expect that a very broad range of capabilities - including ICT capabilities - would influence how and with whom the firms in our sample would be managing their international trading relationships. On the basis of the team’s sector specific knowledge we started the study with an expectation that a firm’s position within its supply chain would be likely to influence its trading arrangements. What we did not know was the extent to which any use of e-commerce, however defined, would be regarded favourably by our sample of firms.

The six obstacles which you have defined as barriers to ecommerce are barriers to development in general. Does this mean that ecommerce has now joined the list of other developmental areas such as health care and education?

This is a difficult question to answer because it suggests that adopting a ‘standard’ model of B2B e-commerce might help to reduce poverty in the same way that investment in improved health care and education may do. We would put the issue somewhat differently. To the extent that some applications of ICTs in support of international trade help to diminish existing barriers in this area, e.g. unequal terms of trade, disadvantageous positioning in supply chains, such that firms in industrial sectors are able to strengthen their trading positions by deepening or extending the scope of their markets or improving their profit margins, then there may be opportunities for economic gains for a given country. Whether these potential economic gains will be distributed in an equitable way throughout an economy is an issue as well in terms of whether the benefits help to overcome poverty and contribute to more equitable development. I would argue that the priorities must be established on the basis of country (sector specific) information and by local leaders so that choices with respect to investment can be assessed and decided.In some cases, investment in improving various aspects of a variety of models of B2B e-commerce may make sense but not as an automatic solution for overcoming barriers to development.

In retrospect it can be seen that the Internet boom years made false promises about the impact of ecommerce on the global economy. How damaging do you think that hype has been to the opportunities that do exist if realistic attitudes are adopted?

In general, the information and communication technology supply industry (including software) is notorious for promising more than it can deliver. In that sense the early expectation that business practices including trade in a wide variety of goods would migrate to B2B e-commerce applications very rapidly and that ‘many-to-many’ trading platforms would take off simply because they could be hosted on the Internet is not out of line with earlier technological developments. Hype is the norm in this industry and the Internet dot.com boom years were a good example of this. The idea that B2B e-commerce using the Internet would rapidly spread globally to provide an equitable and inclusive foundation for firms based in developing countries that seek to trade internationally was a fantasy that took little or no account of the way markets actually function or of the positioning of these firms in their supply chains. The dot.com crash did bring an end to some of the false promises, but sadly there are still plenty of claims being made about how B2B e-commerce should be developed for firms in developing countries.

Even if the claims are somewhat more realistic today, the emphasis of those seeking to promote online trading in one form or another continues to be placed first and foremost on the ICTs (networks, software, etc.) and on creating an appropriate legal environment rather than on the practices of firms. Our argument is that it is the latter that must be understood if appropriate choices and investment decisions are to be made with regard to the former. A continuing failure to do so is likely to be damaging and to encourage what has been called ‘ICT strategy fatique’ by observers based in developing countries. This can only lead to cynicism. More realistic attitudes and actions to support and enable developing country firms are likely to flow from careful analysis of how certain ICT applications based on the Internet are likely to affect business practices in a given sector. In some cases these may lead to real benefits for these firms, but in others there may be considerable costs.

Your study shows that e-marketplaces have little to offer b2b commerce as they verify neither buyers or sellers. Also, despite new technology, known and trusted intermediaries are as important as ever and an unknown outside supplier stands very little chance. This sounds very much like the real world of commerce. Are there any differences?

I think the key here is to recognise that B2B e-commerce is generally not something that occurs on its own and entirely separately from a firm’s offline trading practices. Where some elements of B2B e-commerce (broadly defined) are adopted, e.g. the use of email, document exchange for product specification, supply chain integration software, etc., the question is how these affect existing business practices and whether asymmetries between buyers, intermediaries, and product suppliers are reduced or exaggurated as a result. For instance, if buyers insist that firms sell their goods only via closed auction sites this may disadvantage firms without low cost and reliable access to these auctions. Alternatively, greater use of email attachments to exchange information about product specification may cut costs for producer firms.

Trusted intermediaries that make increasing use of some kinds of B2B e-commerce applications are also likely to maintain their relationships with their producers through more traditional means and so the issue is how does electronic networking those relationships over time. This is an empirical question. Because of the complementarity between online and offline activities, it is essential that both be examined to determine the overall impact on the dynamics of international markets.

Your study also shows that in developed economies the people who are benefitting most from b2b e-commerce are buyers who are joining together to drive down producer prices in their own closed e-marketplaces. It also shows that online auctions drive prices way down. This doesn’t sound very good for producers. Do you think this new flavour of b2b commerce could have a negative impact on emerging economies like so many of the other ‘global’ trade agreements?

Our study certainly provides glimpses of this tendency, but we do not have enough evidence to generalise. We highlight this as an area that needs further study. Generally, if buyers are able to find new ways of creating ‘captive’ producers that are locked into trading then there is likely to be downward pressure on producer prices. But this is a reflection of the competitiveness or lack thereof of global markets and at this stage in the development of B2B e-commerce, especially for the firms in the sectors we examined, the overall impact of the ‘new flavour’ of trading is simply not known for emerging economies. The impacts are likely to vary considerably by sector and in this sense the strengths and weaknesses of a given economy have to be taken into account. What I think we can say is that a ‘one size fits all’ approach to B2B e-commerce based mainly on the experiences of producer firms based in the wealthy countries of the world will almost certainly have a negative impact on emerging economies for the simple reason that if investment is made to try to replicate that experience it will most likely be wasted. Whatever approach is taken, it must be based on the local sector and country specific needs of firms.

There seems to be very little understanding of global supply chains with both buyers and producers not willing to make their information public. In some cases this secrecy can be used to hide low wages and poor working conditions in producer countries. Do you think there should be more awareness and openness about how these supply chains work or do you think the power of "traditional" business will keep them closed?

My IDS colleagues are the experts in supply chain analysis. My own view is that complete transparency that might be associated with a perfectly competitive market is very unlikely. To the extent that there are tightly integrated global supply chains, this can only be achieved and maintained through varying degrees of commercial secrecy and confidentiality. Insofar as firms begin to adopt ethical trading standards and make an issue of working conditions and labour practices as a condition for participation in a given supply chain, this could lead to improvements - although not necessarily greater transparency. If greater attention was given to studying how supply chains work with respect to the firms based in developing countries, it is quite likely that many of the factors that contribute to persistent low wages and bad working conditions would begin to come to light. Of course, this is a big issue that goes far beyond the scope of our study. I do not believe that traditional business has the power to keep such information secret, but I do believe that insufficient resources are devoted to the kinds of studies that are necessary to bring injustices to light.

One of the barriers to ecommerce is lack of trained personnel - something that affects all businesses in Africa. Given how difficult it is to find trained IT staff and how expensive technology can be for African businesses, which sectors of ecommerce do you think would be a good investment for a SMEs in sub-Saharan Africa?

I really can’t answer this on the basis of our research. Small sample and only two sectors. It does appear that if SMEs are able to make use of e-mail to reduce communication costs there can be advantages. However, because of the generally high costs of network access, PCs, etc., it would seem more reasonable to advocate that greater efforts be made to find effective ways of sharing the cost burden. Just as it took a very long time for people to realise that the ‘one household - one telephone’ model for residential customers that emerged in the industrialised countries was in many instances not likely to be a good model for very poor regions of the world, so it needs to be acknowledged that shared access through business centres for SMEs may provide a viable means of obtaining some benefits in the short and medium term. Here, the questions of management, governance and sustainability all come to mind by business leaders, intermediaries, etc. in order to find creative solutions.

What’s the single most important piece of advice would you give to an African business thinking of entering the e-commerce arena?

Difficult question! Think about business needs first, set realistic medium term commercial goals, and then consider what aspects of B2B e-commerce (including technology and people) will contribute to meeting those goals.

ISSUE NO 160 JOBS, PEOPLE, EVENTS

INDEX

PEOPLE

* The new Director of ART, the Senegalese regulator in an interview with Sud Quotidien "to strengthen the healthy regulation of the telecoms sector" and he assured its readers:"The course is fixed and tomorrow all those who will work with us in the permanently solicitous radiance of ART as much as at a sub-regional level as at an international level." Perhaps a bit more competition for SONATEL would not go far amiss?

* Albert Kan-Dapaah, Minister of Communications for Ghana,told Parliament that a programme has been launched to increase the switching capacity to address telephone services in Kumasi. The project comprises expansion of the Kumasi Alcatel from 5,000 lines to 40,000 lines, installation of a new Alcatel switch in Tanoso, the UST and Buokrom with 5,000 lines each.

* Marlee Norton is leaving the National Telecommunications Cooperative Association. The NTCA was responsible for several pieces of consultancy work on telecoms in rural areas. She has gone to train to be a priest in the Episcopal Church.

* As the new contract managers of the Nigerian Telecommunications Limited (NITEL) settles in, Rein Zwolsman, the company’s new Chief Executive Officer (CEO) has said that attention of the first national operator would shift from provision of basic telecommunications service to modernization and expansion of its network. Some of the innovations in the pipeline include plans to provide value added services such as voice mail, pre-paid calling card service, audio conferencing and mass calling.

* On the anniversary of the closure of Senegalese ISP Metissacana, founders of the first cyber-café in West Africa, its moving force Michel Mavros has issued a forceful press statement on the state of ICT in Senegal. He denounces SONATEL’s monopoly, the complicit laxity of the Government and the games of the private sector. To read the full article in French: http://www.osiris.sn/article474.html

EVENTS

ACT SUMMIT 2003 TO BE HELD IN ABUJA IN AUGUST

AITEC, Africa’s leading organizer of ICT conferences and exhibitions, will be holding its fifth annual African Computing & Telecommunications Summit, ACT 2003, in Abuja over 26-29 August 2003. ACT is established as the continent’s top gathering of ICT users, suppliers, service providers, policy-maker and innovators. The theme of this year’s summit is: "Mobilising ICT applications and projects for effective corporate, national and regional development".

AITEC’s Group Chairman, Sean Moroney, said that no other event draws together such a distinguished and widespread range of decision-makers from all four corners of the continent. AITEC expects over 500 participants. "We are delighted that the Nigerian government has invited AITEC to hold ACT 2003 in Abuja, the Federal Capital of the Africa’s largest and fastest growing ICT market," he said.

ACT will include a number of specialist forums and a major highlight will be the West African Internet Forum (WAIF), which AITEC will be holding in collaboration with the Nigerian Internet Group (NIG), the ISP Association of Nigeria (ISPAN), Balancing Act of the UK and the African ISP Association (AfrISPA). "Following the East African Internet Forum in Nairobi at last year’s ACT and the Southern African Internet Forum which AITEC held in April, it is time for West Africa’s ISPs, regulators and policy-makers to get together in one Forum to accelerate Internet development in West Africa through national and regional co-operation and increased technical knowledge. ACT will provide the platform to catalyse this process," said Moroney.

Another key forum at the event will be the African Open Source Forum, which AITEC is holding in association with the Free and Open Source Foundation for Africa (FOSFFA), which was formed earlier this year. "There is an intense debate currently raging across Africa regarding the pros and cons of open source software as a means of reducing computing costs. The Forum will provide a valuable opportunity for delegates to assess the arguments on each side and enable them to develop their computing strategies on a well-informed basis," said Toyin Ogunseinde, GM of AITEC Nigeria and an acknowledged computer industry leader in Nigeria.

ACT will also include the African Telecommunication Operators Forum, to provide an opportunity for the growing number of operators across West Africa and the rest of the continent to participate in an intensive information and education programme to improve their services and profitability in an increasingly competitive environment.

ACT’s SME Corporate Solutions Forum will be aimed at the enterprise management needs of small and medium-sized organizations across Africa. In addition, AITEC is going to work closely with stake-holders in Nigeria and across Africa to develop an eGovernance Forum at ACT 2003, aimed at briefing legislators and administrators on best ICT practices in government.

Intensive training workshops will cover a range of specialist topics, including:

- VSAT technical implementation

- VSAT business management and marketing

- Value added services for telecommunication operators, including SMS business opportunities

- Technical skills for ISPs

- New wireless frontiers, including WiFi

Keynote speakers will include Andile Ngcaba, Director-General of Communications in South Africa and Mark Davies, founder of the highly successful BusyInternet cyber centre operation in Ghana. Over 70 international and local experts will be speakers or workshop leaders. For further details: http://www.aitecafrica.com

HIGHWAY AFRICA TO FOCUS ON MANISTREAMING MEDIA IN THE INFO SOCIETY

The Highway Africa conference is a major continental event centered on new media issues for journalists. The 2003 conference theme being "Mainstreaming Media in the Information Society" aims to bring African media into the centre of debates about the Global Information Society. The seventh year of this annual meeting of the African journalism community is organised by the Rhodes University Department of Journalism and Media Studies in Grahamstown, South Africa and co-hosted by the SABC. The conference will be held in the historic town of Grahamstown, South Africa from the 8 to 10 September 2003.

The Awards for the Innovative use of New Media in Africa are presented at the conference and aim to recognise the creative, innovative and appropriate use of new media technology in Africa. Judges are looking for innovative applications of new media in African journalism. Awards are given in three categories: individual/student, non-profit and corporate. Ultimately the awards strive to highlight innovations that result in African media benefiting from new ideas and developments in communications technology.

For more information on the conference, registration and award nominations please visit http://www.highwayafrica.org.za

JOBS AND OPPORTUNITIES

- IDRC’s Acacia is offering its first ICT R&D grants. Interested organisations from the developing regions of Africa can apply for the grant now. Small grants of a maximum of $30,000 CAD each will be awarded on a competitive basis to successful institutions from the African region. The deadline for submission of detailed proposals is the 1st of September 2003. A Committee will review all proposals and the results will be announced by December 2003. Criteria for eligibility and more details about this grant programme can be found at our website : www.idrc.ca/acacia under R&D Small Grants Programme. For further details you may contact mladikpo@idrc.ca .

- African organisations are being encouraged to apply for Stockholm Challenge Award 2003/2004 Stockholm´s international Award for innovative use of IT - a challenge. The aim is to diminish the digital divide and to create an information society for all. In 2002 nearly 600 projects from 78 countries entered the Stockholm Challenge. More details: www.challenge.stockholm.se or e-mail: Monica Berneström Programme Manager Info@challenge.stockholm.se

INDEX

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This page last updated on January 28 2004.

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