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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 206 AFRICAN TELECOMS INDICATORS - THE STORIES BEHIND THE NUMBERS BEAN-FESTThis week sees the publication of African Telecommunication Indicators 2004 by the ITU which is timed to coincide with Telecom Africa being held in Cairo next week. For a continent that all too often seems bereft of reliable ICT statistics its arrival is always heartening. The headline stories have been about the massive growth of mobile on the continent. But the report looks at more interesting questions including: future growth scenarios, actual levels of usage and return on investment. Russell Southwood digs below the surface to see what answers are being offered to these questions. At the end of 2003, six Africans out of a hundred had a mobile phone, twice the number that had access to a fixed line: six million subscribers in all. Nevertheless this remains the lowest mobile penetration of any region in the world. The report puts forward three scenarios for growth that will be achieved by 2010: low (10.2 million, a 70% increase); medium (15.3 million, an increase of 255%) and high (20.4 million, an increase of 340%). These figures might seem fanciful but as the report shows most of those making predictions in the past have under- rather than over-estimated the likely growth.
So why have those making predictions go it so wrong in the past? Well, the answer is that the income statistics for Africa - especially at the lower end of the scale - have proved to be a very unreliable predictor of mobile usage because of "informal markets and the unreliability of existing income data." In other words, there’s more money out there than the World Bank figures are showing:"The average African expenditure of USD27 per month for mobile service is more than half the average African per capita income...it is difficult to imagine a subscriber (actually) spending such a large portion on their income on mobile services." The lower the reported income, the less reliable the statistics become:"The link between income and mobile density for incomes less than USD500 a year is much weaker than for incomes greater than USD500 per year... National analyses of mobile demand reveal much higher levels of penetration than would be expected by income". What this is actually saying is that in countries as diverse as Nigeria and Kenya there is far greater mobile potential because there is more money in the economy than the available figures have identified. Nigeria is now estimated to have 15-20 million potential subcribers, double what was predicted two years ago. If the average penetration is 6% overall then for all the staggering, vertiginous growth there are not many people who will be affected by it. Not quite true. At present 60% of the population on average is in area that offers mobile coverage and this percentage will (on the basis of our discussions with operators in key markets) go up to 65-70%. Also counting the number of mobile phones does not give an accurate picture of actual usage. The report cites two other reports looking at access to mobile telephony by household rather than by individual. On this basis 32% of households had access to mobiles in South Africa and 31% in Morocco. And it remains important for rural areas as 13.8% of households had access in Morocco as against 2.3% with fixed lines. Admittedly these are two of Africa’s wealthier markets but getting to the bottom of how many people actually have access to using a device is key to making sense of what is happening to the digital divide. To address this issue the ITU is encourage the statistical services of African countries to include questions on this subject when they carry out census work. So who are Africa’s mobile investors and what kind of return are they making on the money they have invested? The top six operators across the continent in order of scale of revenues are: Vodacom, MTN, Orange, Orascom, Celtel (formerly MSI) and Millicom. Interestingly those that are doing best tend to be focused in a relatively small number of countries, usually between 6-8. Will they do so well as they expand their field of operations? Strategically, almost all have chosen to avoid going head-to-head with competitors in all their markets. On the basis of looking at returns in company accounts, profit as a percentage of revenue varies between 10.6% (MTN) and 16.6% (Celtel). The exception is Millicom which is showing a return of 42%. A word of caution needs to be entered. Many of these operators are still investing in their networks and these have not yet become mature markets. Investment yields will go up as markets mature which they must surely do by 2010 if one of the growth scenarios cited above turns out to be credible as well it might.
Africa’s mobile strategic investors
Note: * Subscriber data refer to year end; financial data to year ending 31 March. ** EBITDA instead of profit. *** MISSING ****While the total number of subscribers refers to all subscribers within the countries where the strategic investor has operations, the proportionate number of subscribers are those of the strategic investor. Example: The total number of subscribers in the 5 countries where Vodacom has operations amounts to 10’184. Out of these, 9’666 are Vodacom’s subscribers. Source: ITU adapted from company reports.
Top ten mobile operators in Africa
Source: ITU adapted from company reports.
On slightly older data (2002), the top ten mobile operators operators are showing Average Revenues Per User of between USD11 (Maroc Telecom) and 30% (Cell C - South Africa). Exceptions are USD69 (MTN Nigeria) and USD65 (Djezzy - Algeria). The Nigerian figure only goes to reinforce the point made earlier that Nigeria is a richer country than the official statistics show. Where are the areas for future revenue growth? The world average for SMS text messages is 4 per subscriber month. But in many countries, especially among the young, this cheaper, thumb-operated method of communication has almost taken on the status of a major virus. Relatively speaking, Africa is thus far behind the wave but the signs of "catch-up" are there. Again the data is one year behind but the report shows 17 SMS per month in South Africa and 11 in Mauritius. Ah, but I hear the sceptics carping, these are again the wealthy countries of the continent. Yes but...A more recent breakdown of SMS use by subscriber type shows prepaid subscribers averaging 9 per month in South Africa. Furthermore Togo (on the basis of those 2002 figures) was averaging 6 per month and Cote D’Ivoire 4 and Cape Verde and Burkina Faso 3. The report also makes the case for mobile internet on the basis that people will use mobiles to connect their laptops. This will all rely on operators being able to offer something above the GSM standard of 9600 kbps. Operators in wealthier markets (Egypt, Morocco and South Africa) have already launched GPRS networks but these are unlikely to be rolled out in less wealthy markets. For example, operators in Nigeria have spent (or will spend) USD200 million installing 3G standard CDMA 2000 1x networks for fixed wireless access. One of the Nigerian operators is offering internet access speeds at what it claims will be up to 144 kbps. However this type of network offers limited mobility which may suit certain types of local users but not others. There are also a number of other wireless technologies that might impact on the problem. However as they will tend to cannibalise the revenues of the most probable investor - the incumbent telco - it may well be some time before they are implemented. In our view, e-mail to mobile for the receipt of messages is a service waiting to take off. The mobile is Africa’s device of choice and both texting and e-mails are used partly for that most compelling of reasons: cost. One operator recently reported 50,000 people trying a service of this kind in its first week. The main impediment is whether the mobile user’s phone has the capacity to handle the traffic.
ALGERIAN GOVERNMENT GETS NO TAKERS FOR FIXED LINE LICENCESAccording to a Reuters report, the Algerian government did not receive any bids for the two fixed-line licenses it was attempting to auction, the state regulator ARPT said. Algeria’s market is seen as being uncompetitive and congested and therefore not highly desirable to investors. The failure to sell the licenses, one for domestic service and one for international calling, was a setback to the country’s efforts to privatise the economy. The ARPT had required USD1.0 billion from bidders to pay for equipment and installations. ARPT said there were over five potential bidders. The official reason given for the failure was a lack of offers, but the uncompetitive local market controlled by state-owned Algerie Telecom was also a major factor. The sale has now been postponed indefinitely. "I think foreign investors were not ready to put over USD1 billion in this. Weneed to find a better way to attract them here," ARPT general manager Ahmed Gaceb said. "We are not ready yet. We should review our prices before going forward in calling foreigners to come hereŠOne minute of a local phone call in Morocco costs the equivalent of eight Algerian dinars (USD 0.10), in Tunisia it costs the equivalent of 11 dinars and here in Algeria it costs one dinar," said Algerie Telecom General Manager Messaoud Chetih. Algeria’s fixed-line telecommunications market is congested and unreliable. The monopoly operator, Algerie Telecom, has 2.2 million subscribers and is unable to cope with growing demand in the country of 32 million inhabitants. Oil and gas-rich Algeria has forecast mobile and fixed-line subscribers will reach 5.6 million by the end of the year and eight million by the end of 2005 but it is not known whether these targets are realistic. The country is also in the process of liberalising the mobile phone market, which is also under-served and is experiencing interconnection problems. (SOURCE: Intelecon) KENYA’S SNO BIDDERS DOWN TO THREE - TELENOR, TAIFCOM & AFRICAN BELLBidders for Kenya’s second fixed line license submitted their bids last Friday. Out of the four consortiums interested in the license only three submitted their bids. Communication Commission Of Kenya Director-General Sammy Kirui said that the eventual winner of the bidding process would be the the bidder with the highest financial bid subject only to scoring the minimal pass-mark in the technical/business proposal. To pre-qualify for the bidding process consortia were required to submit evidence of a minimal annual turnover of more than 12 billion shillings, the capability to manage a network of 500,000 subscribers and more, in addition interested parties were required to submit a financial network history of their consortium members including past three years annual financial statements. 30 per cent of the equity also had to be locally owned. The only firms which managed to submit their bids today were Telenor Management Partner, Taifacom, and African Bell. CCK will gazette its intention to award the licence to the winning bidder on 2 July, while the SNO licence itself will be awarded on 3 September. (SOURCE: http://www.kbc.co.ke/story.asp?ID=21739 ) INTEC WINS USD4 MILLION SOFTWARE DEAL IN NIGERIA WITH NITELIntec Telecom Systems has signed a USD4 million deal includes four major Intec products to NITEL.The agreement, which was made possible with the help of Intec’s local Nigerian partner Traffic Network Services Limited (TNSL) and includes the purchase of Intec’s InterconnecT, InterconnecT ITU, Inter-mediatE, and Inter-activatE solutions. Together these software platforms will automate Nitel’s service-provisioning processes and provide regional and global intercarrier billing and mediation support as the company expands its network operations across the country. TWO MORE M-COMMERCE SOLUTIONS - BANKS IN NIGERIA & CINEMA TICKETS IN SATwo new m-commerce solutions were launched this week: one for banking in Nigeria and the other for cinema tickets in South Africa. Exact Mobile has developed SA’s first mobile commerce solution which utilises WAP and credit cards allowing users to purchase movie tickets from Ster Kinekor. Gavin Penkin, Exact Mobile director of portal and entertainment, says Exact Mobile are the first company able to offer such a product as they are the only company, apart from the banks, who have a secure WAP gateway. "Any mobile phone with secure WAP technology can purchase tickets. Its is therefore not restricted to high-end phones, even the Nokia 3330 could be used to purchase tickets. All the user has to do is use their phone to go to Exact Mobile’s site, click through to the Ster Kinekor site, choose the movie, select their seats from a seating plan and enter their credit card details. After receiving the confirmation SMS, they simply pick up the tickets by swiping their credit card at the Ticketline terminal," he says. Penkin says the process is just as secure as interacting with a bank through a cellphone. Exact Mobile also has a leased line directly into Ster Kinekor to provide additional security and does not keep the user’s credit card number. Gary Cousins, Clickatell key sales consultant, says it is very exiting that someone apart from the banks is using a secure WAP gateway enabling them to launch the country’s first credit card m-commerce solution. He says it opens up the opportunity for any other type of m-commerce ticket sale solutions to enter the market. However, Cousins says there are still many barriers for m-commerce to take off in SA. "The utopia of m-commerce is purchasing goods off your cellphone contract or prepaid account. Through this medium, the unbanked people of the country can be reached and be able to purchase goods from their cellphones. However, in order for this to happen, we will have to see networks and service providers taking much lower margins off premium rated SMS numbers," he says. Meanwhile two Nigerian mobile providers, Glo Mobile and Vodacom, have concluded arrangements to introduce mobile banking services to their customers this week. With the service called Mobile Banking, customers of the two telephone networks can, direct from their phones, enquire about their Account balance, loan application status, make transfers, make payments for purchases and load their debit cards. The Mobile banking service is a tripartite arrangement between the banks, the GSM companies and a Switching company which provides the link between the banks and the Mobile companies. InterSwitch, a payment solutions provider, provides switching services for the Mobile banking services of Vodacom and GloMobile. (SOURCE: ItWeb and Vanguard) PRESS CONSORTIUM CONCLUDES REVIEW OF MALAWI TELECOM ASSETSThe Privatisation Commission (PC) has said the Press consortium, the preferred bidder for the Malawi Telecommunications Limited (MTL), has completed its assessment of MTL’s assets. Susan Banda, PC information, education and communications manager, told journalists during a monthly briefing that a report is expected soon. "Following the completion of this exercise, the Government of Malawi, through members of the MTL steering committee also conducted its own due diligence of the consortium team members," she said in a written statement. Press Corporation Limited group Chief Executive Matthews Chikaonda said in March this year the Development Bank of South Africa (DBSA) joined the consortium that also includes Commonwealth Development Commission (CDC) and Germany’s Detecon as a financier. The PC announced last November cabinet opted for the Press-CDC-Detecon consortium on November 10, 2003 as opposed to the other short-listed consortium of Telecommunication Consultants India Limited/Mahagar Telephone Nigam (MTN) Detecon International, which will be the managing partner, is one of Europe’s biggest telephone companies with interests in more than 55 countries in the world including managing ground phone operators in Tanzania, Uganda and South Africa, among other African countries. SOURCE: Nation IN BRIEF- Telephone subscribers in Rivers State owe NITEL N1.2 billion.Territorial Manager, Elijah Akpan said the debt had adversely affected NITEL’s plans for expansion.A NITEL document made available to press showed that Federal and State ministries, as well as their parastatal agencies, owed N117.5 million, while the Nigerian Army owed N6.2 million.The document, also, showed that the Navy owed N9.9 million, the police N34.1 million and the State Security Service 3.7 million.Debts owed NITEL by both private and business subscribers amounted to N1.04 billion. - Last week, the Mozambican government presented a bill intended to liberalise the telecommunications market. - South Africa’s Telkom has emerged as South Africa’s most empowered company in the Financial Mail’s first-ever Top Empowerment Companies (TEC) survey that was released this week.
TELECOM RATES, OFFERS AND COVERAGE- MTN Nigeria Communications Limited last Monday warned the National Communications Commission (NCC) that they would be held liable for contempt of court should the other GSM operators go ahead to implement the new interconnect rates as announced by the NCC. MTN’s contention is that the court has made an order that the status quo should be maintained pending the determination of the substantive suit. But the NCC, which has another interpretation to the same ruling, maintains that no such order exists from any court. - The cost of international phone calls from Kenya is set to go down by a hefty 78 percent or Sh20 per minute over the next two years.The projections are based on a decision by the East African network operators to install a Sh15.6 billion (US$200 million) regional submarine cable system, whose aim is to, among others, combat an escalating communication costs in the region. Under the proposed tariff structure, international calls, currently pegged at Sh94 (US$1.2) per minute, will fall by 78 per cent to an all-time low of Sh20, while lease line monthly costs for international Internet connections will fall by a similar margin to Sh243,360 (US$3,120) from the current Sh312,000(US$4000). - The NITEL territorial office in Taraba is losing N3 million weekly as a result of the collapse of its mast, the Territorial Manager, Mr Adelami Ajibola, has said.He said that if the services were restored, the lost revenue would be recovered within two months. - In an effort to evolve an institutionalized framework for tackling consumer complaints in the telecommunications industry, the Nigerian Communications Commission, NCC, has been urged to establish a Consumers Complaints Tribunal, to offer consumer instant redress and protection against exploitation by service providers. The proposal was one of the recommendations of a recent customer care workshop organized by the Consumer Affairs Bureau of the Commission. The workshop with the theme "Customers as Ultimate Drivers of Telecoms Development in Nigeria," was aimed at offering customer service practitioners an opportunity to develop a harmonized consumers’ code of practice in the industry and ensuring greater efficiency in customer relations management. - Senegal’s SONATEL is set to lower its fixed line tariffs from 1 June 2004: 33% on international calls; and 44% on local and national calls. - Côte d’Ivoire Télécom is putting in place a service to deal with the 100,000 subscibers who still have unpaid bills dating from 1996 to 2003, according to Touré Bruno, Directeur Général Adjoint. LIRE EN FRANCAIS APRES 15.00 GMT, 3 MAY: - Burkina Faso’s ONATEL has announced full details of its price cuts package identified in issue 202. It has announced a 66.7% cut for calls to France, Italy, Canada and the USA. For full details: LIRE EN FRANCAIS APRES 15.00 GMT, 3 MAY:
FUTUREX VISITORS TO GET AN ISP IN JUST 10 MINUTESBranded Internet, a private label Internet service provider, will be offering visitors to Futurex 2004 the opportunity to take home with them a fully operational, tailor-made, branded demonstration version of its Internet Service Provider, ETH. ETH is a product that usually takes several weeks to create. However, branded with the company name, information and logo, these Internet Service Providers (ISPs) will be produced for visitors in just 10 minutes - a first for the local Internet industry, the company says. Designed to give any company the ability to offer its own, low-cost ISP service, the Branded Internet Service Provider (BISP) system aims to enable companies to simply and cost-effectively create new business opportunities, increase revenue streams, improve marketing and cut costs by providing customers with internet services. Says Lance Terner, CEO of Branded Internet: "We see a future where any size or type of organisation that has a need can benefit from having their own ISP. They do not have to go through the operational difficulty of managing one because it is not their core business. These companies can focus on what they do best, service their customer base and promote and market their brand, while we take care of the full ISP service for them. This includes the infrastructure, support, right through to billing." Said to be SA’s largest selling PC brand, Mecer has already teamed up with Branded Internet to launch Mecer Net, a BISP that targets Mecer dealers and end-users. According to Terner, the BISP model enables Mecer to have its own ISP without incurring the costs of setting up a new one. Through the Mecer Net service Mecer says that it is now offering not only an enhanced product range and an additional value-added service, but an opportunity for Mecer dealers to earn rebates by signing up end-users to the service. Terner goes on to say that Mecer is not the only company to launch its own BISP: "Branded Internet has enabled computer stores, dealers, Internet cafés and even a retail clothing chain to launch its own ISP under its own name without having to incur the costs of setting up an ISP. Instead of having to pass customers onto other ISPs, companies can now bundle the Internet with their products and keep the clients." (SOURCE: ICT World) MAURITIUS GETS A THIRD WIRELESS INTERNET PROVIDER: NETWORK PLUSNetwork Plus becomes the third ISP to offer wireless internet access to laptop users, joining DCL and Telecom Plus. Users will have to have a wireless card and need to be within range of a wireless "hot-spot". Started in August 2003, Network Plus will offer pre-paid cards in denominations od Rs50, Rs125, Rs300 and Rs700. An Rs50 card allows you to surf for an hour and a half. (SOURCE: L’Express) LIRE EN FRANCAIS APRES 15.00 GMT, 3 MAY: IN BRIEF- As part of a price-cutting package, Senegal’s SONATEL will reduce its internet rates from 1 June 2004: and 39% on monthly internet subscriptions and 32% on internet subscriptions between 30-50 hours. - Tanzania has emerged the second country in Africa after South Africa to adopt a wireless Internet service known as AXITY 3G broadband through CATS-NET. Speaking at a press conference yesterday in Dar es Salaam, the Managing Director of CATS-NET Limited, Akber Hamer, said that the new wireless Internet service would give consumers access at broadband speeds combined with freedom of a cellular phone. Explaining how customers will be connected, he said it would be made through the simple installation of AXITY 3G modem, a small device that plugs into either the USB port or the ethernet adaptor of the computer. The yearly charge for 64 Kilobytes will be USD 1,000, while for 128 Kilobytes will be USD 1,250.
IMPLEMENTATION OF KENYAN IT PLAN TO COST MORE AND TAKE LONGERThe implementation of the Kenyan government’s comprehensive strategy ICT strategy will cost Sh3 billion, and is scheduled to be completed in 2010.The implementation of the plan is in the early stages, with the first results expected to be seen by June 30 this year. Earlier, a tentative plan gave an estimate of Sh2.5 billion budget for the information and communication technology (ICT) initiative that was previously intended to be completed in five years. The programme document, E-Government Strategy: The Strategic Framework, Administrative Structure, Training Requirements and Standardisation Framework, outlines the most ambitious attempt to introduce ICT in the Kenya government. Already a directorate of E-government has been created. It is also planned that an E-security department will be created within the directorate complete with a programme and a manual for its operations at a cost of Sh12 million. The implementation of the security part of the initiative is among the most sensitive of the ICT strategy. It is being handled by the National Security Intelligence Service, the Government Information Technology Services (GITS) and the E-government team itself. It will involve the setting up of a cyber emergency response team that will rapidly be able to perform trouble shooting functions, as the programme is implemented. The team that is preparing the E-government initiative includes representatives of GITS, National Communications Secretariat, Kenya Revenue Authority, Cabinet Office, Communications Commission of Kenya, Department of Defence, Central Bank of Kenya, Directorate of Personnel Management, ministries of finance, health, and office of the president. It is led by former Economic secretary, Peter Gakunu. For the financial year up to June 2004, the Government will have spent Sh145 million. The money will be used to, among other things, develop ICT standards manual at a cost of Sh0.5 million, develop the security manual at Sh0.5 million, create awareness at all government levels at a cost of Sh3.9 million, define the E-government structure through creating, strengthening and mandating a body to oversee the implementation and management of E-government processes at a cost of Sh68.5 million. The strategy document will be disseminated by printing and circulating it widely at a cost of Sh6.3 million while government representatives are expected to participate at an international conference on ICT to be held in Dubai in the United Arab Emirates on May 24-26 at a cost of Sh9.4 million. Already, local area networks (LANs) have been installed at a cost of Sh147 million in Harambee House, Kenyatta International Conference Centre, Jogoo House ‘B’ and the Ministry of Energy in Nyayo House. The results expected from this are efficiency of information flow and sharing. In the financial year 2004/5, the Government will spend Sh612.6 million on, among other things, research and development to improve capacity, bring in best practices, skills and methods within government. This will be done by the directorate, GITS and NCS. Already there is an ongoing project to reduce bureaucracy by reviewing processes at a cost of Sh21 million. A government website (gov.ke) or portal showing services it provides is to be designed for Sh1.6 million. It is unclear why the project is designated as not having started yet it is supposed to be complete by June this year. It is expected to have achieved its aims if it has ease of access, the E-Government Strategy says. Web-hosting will be done by GITS in the short-term since it has the infrastructure but in the long term it will be a project of the E-Government Directorate set up in the Office of the President. There is however an ongoing project to put functions of ministries and departments of state on websites. On the government portal, there will be announcements, alerts and bulletins, available publications, the Kenya Gazette and other legal notices. Budget statements, the finance Bill, booklets on tariffs and statistical annexes, information on schools, while tender documents will be made available electronically. In the immediate term there is a plan to train 50 core staffers for the E-government team and ministries staff. In the medium term all civil servants will be trained in the new strategy. For civil servants who have never had access to email within their own ministries this will be the first time they will have access although the process will start with the headquarters of 10 ministries. In the long term to year 2010, all civil servants are expected to be computer-literate with the state having spent Sh158 million in the project. It will now be possible for those who are seeking employment in the public sector to acquire application forms and remit them online, a development that is intended to make it easy to get the appropriate employees for state functions. The role of developing this part of the E-government has been given to the DPM and Public Service Commission and the ministry of labour. A process of integrating government records is scheduled to be completed in 2007. It will involve an online system of registration of births and deaths, national identity card registrations, immigration records, registration of assets including land, companies and motor vehicles. This project will be handled by the ministries of finance, transport and communications, attorney general’s office, judiciary and lands and settlement. The move to keep the records will deal a blow to the motor vehicle theft and land grabbing industries that have thrived in an era of dysfunctional record keeping within government. Times will also be quite hard for those who had become accustomed to evading tax as clear records will now be available online with a taxation database and information system put in place by 2007. This is a project being undertaken by the Kenya Revenue Authority and the ministry of finance. The long process of licensing businesses in Kenya has frequently been raised. The E-Government Strategy says that a system will be in place by the year 2007 to speed up the process of licensing through the government portal or web service. The programme will also make available information on recreation facilities, entertainment, exhibitions, festivals, list of day care facilities, the Kenya National Library Services catalogue, details on the election register as well as legal aid and advice. It will also see to the implementation of a project to improve security at a cost of Sh252 million. The E-policing project will aim at providing security alerts, traffic alerts and should be in place by 2007. It will also be possible to buy and sell properties in the net through the E-government initiative. (SOURCE: Nation Media) SAHARA TO INVEST P2 MILLION TO OPEN ICT TO PUBLIC IN BOTSWANASAHARA Computers Managing Director Ashok Narayan who was speaking in an interview to Monitor said that his company is investing P2m over a period spanning two years to meet the needs of the fast-pacing IT market. He said that as part of the company strategic plan to expand services, already economic strides have been put in place to facilitate the opening of a new office in Francistown by October this year. SAHARA Computers, which has been operating in Botswana for the last five years, has supplied 48 schools across the country with SAHARA branded computers, accessories, printers, among other gadgets and was targeting the rest of the schools. SAHARA Computers intends to introduce modern products to the market at competitive prices in the not so far future and has pledged to continue working with the Ministry of Education in many areas, including computer awareness and school curriculum related issues. Narayan added: "We are expanding services to meet the demands of the market at an affordable price. We are the number one IT distributor in South Africa and we plan to set businesses in 14 other African countries". "Our intention is to ensure that we offer computers at affordable prices and make sure that every average Motswana has access to ICT services as this will bring about efficiency in many spheres of life". "We want to work with Microsoft to come up with affordable rates. We want to make the use of ICT part of the lifestyle of the people in line with the National Vision 2016". Currently, SAHARA Computers has offices in South Africa employing 300people, Botswana (17) and Kenya (20). The company is the sole distributor of some of the leading manufacturers of computer components such as Intel, Samsung, Creative, SMC Networks products, Epson Lexmark, Microsoft, Mastor, symantec, MSI, among others. (SOURCE: Mmega) ORACLE SIGNS MOU TO ‘CONSOLIDATE DEVELOPMENT OF ICT IN MOZAMBIQUE’Oracle Corporation last week signed a Memorandum of Understanding (MoU) with the Ministry of Higher Education of the Government of Mozambique, consolidating and further enhancing its national strategies in Information Communication Technology and Higher Education. This MoU provides the framework for a partnership between the Government of Mozambique and Oracle Corporation in a spirit of cooperation and mutual benefit. While the Government of Mozambique wishes to deploy state-of-the-art technologies and solutions, Oracle offers its experience, knowledge, products and solutions to meet the Government’s requirements. "It is important for governments today not only to formulate strategies for ICT and to move towards an e-government framework, but also that they put in place a coherent plan for building skills and competency to support those strategies," said Desi Lopez Fafié, managing director, African Operations, Oracle Corporation. "Oracle is proud to have put in place a number of very specific programmes to help build skills and capacity right across higher education institutions and governments in Africa and we are convinced Mozambique will benefit from this experience. Oracle’s solutions have already enabled a number of governments to build their foundation for e-government, including Mauritius, Uganda, Kenya, Botswana and Namibia. I believe we can make a significant contribution in Mozambique." Oracle will conduct a series of executive workshops with key government officials in the Ministry of Higher Education and the ICT Commission to formulate jointly a roadmap for both sectors, identifying the critical path in terms of approach and solutions. The Mozambican government has already developed its blueprint for a comprehensive e-government strategy and has developed a plan for its phased implementation ­ of which Higher Education is a part. Other aspects of the MoU include eligibility for the Government of Mozambique to participate in specific programmes. These include Oracle’s Campus Licence Programme, which provides significant discounts on software licences, and the Oracle Academic Initiative Programme, which provides higher education institutions with free software, an Oracle-developed curriculum and subsidised training for faculty members anywhere in the world. In addition, Oracle will provide low-cost access to programmes for non-profit, non-commercial research. "We welcome the signing of this Memorandum of Understanding with Oracle," said Mrs Lidia Brito, the Higher Education Minister and deputy Chairperson of The ICT Commission. "We believe it is important to form strategic alliances with world-class ICT players and this can only help to further boost our development in the field of Higher Education and ICT in Mozambique." The focus on e-Government and development in Higher Education in Mozambique reflects a growing trend around the world. Typically, governments are turning to technology to help deliver better social services, greater citizen satisfaction, enhanced access to government services, faster service delivery at lower cost, and increased government revenue. E-government projects allow central and local governments to use technology to deal not only with citizens but also with the business community, suppliers, partners and their own employees. Oracle will contribute significantly to enable similar developments in Mozambique. (SOURCE: IT Web) E-LEARNING WELCOME FOR ZAMBIA BUT TOO EXPENSIVE, CLAIMS ACADEMICElectronic Learning (E-learning) is good for the developing countries like Zambia but it is too expensive for the Zambian people, claimed lecturer Billy Kahota, writes News Update’s Zambia correspondent Timothy Kasolo. In a contribution to a monthly debate organised by the Computer Society of Zambia (CSZ) with the title "E-learning for Zambia - is it a dream or reality?", Zambia Centre for Accountancy Studies (ZCAS) Lecturer Billy Kahota said that though E-learning in Zambia has been welcomed it is very expensive for the Zambian people to pay for E-learning. Kahota who is studying a Masters in Internet systems development with University of Portsmouth through E-learning explained that E-learning is new to Africa and it should be made cheaper so that a lot of students are exposed to the latest technology and improve their qualifications through E-learning. And Computer Association of Zambia (CSZ) President Milner Makuni said that Zambia as a country is facing a lot of challenges in training Information Technology (IT) professionals but due to lack of institutions offering IT professional courses the IT industries is lugging behind. Makuni said in Africa there is a Virtual University that is providing online education through the use of E-learning technologies."Senegal, Uganda and Kenya are some of the countries that are proving the use of E-learning education," Makuni explained. Levy Lwesekala, Zambia’s Konkola Copper Mine (KCM) IT department said that the cost of the terminals and computers should made cheaper and that depended on the Zambia government ICT policy direction. He noted that E-learning is more than ready in Zambia and that it will provide a chance for the high school graduates that are denied places in the Universities and Colleges to give them a chance to do their education through E-learning. IN BRIEF- The cost of computers has not reduced in the Zambian market despite Government’s duty reduction on computer products from 15 per cent to five per cent. One World capacity building specialist, Yese Bwalya, said in an interview in Lusaka last week that the ICT equipment prices had not reduced, claiming most companies still have the old stock. - In response to latest figures from BMI-T estimating that 80% of all South African companies experienced IT security breaches in 2003, Faritec last week launched an R8 million security operations centre, from which it is offering its managed security service for a monthly subscription fee. - Symantec has appointed Nanoteq as a First Tier Business Partner in recognition of the company’s depth of skills and standing as one of South Africa’s leading security solutions providers.Nanoteq, together with NetCure, won the largest high-end security deal for Symantec in South Africa during 2003. This was one of the factors that prompted Symantec to upgrade Nanoteq’s status, along with its investment in building its Symantec skills base.
N766M NITEL FUND TRAPPED IN FAILED BANKS, ALLEGES REPORTNITEL has N766.44 million in three distressed banks, a cash position report on the company has shown. The report, which covered March 2003 to March 2004, showed that out of the amount, N12.77 million was in AIB Ltd, N536.53 million in AFEX Plc, while N117.14 was in CTB Ltd. The News Agency of Nigeria (NAN) alleges that the money, lodged in one of the distressed banks, was meant to settle pension payments. The report also showed that the company operated at a loss within the period as its total cash position dropped from N17.67 billion in March 2003 to N540.59 million in March 2004. Details of the cash position showed that the company’s accounts were in the red, having spent over N17.68 billion within 12 months. Apart from the three distressed banks, NITEL operated accounts with the First Bank, Union Bank, FSB, Zenith bank, Prudent Bank and Guaranty Trust Bank. It operated four domicilliary accounts respectively in dollars, pounds sterling, Euro and a domicilliary access account as well as Treasury bills and a Collateral fund. The Naira equivalent of the domicilliary account in dollars showed that in one year, the over one billion Naira NITEL had dropped to N5.88 million dollars, while the Naira equivalent in the Sterling account reduced from N111.87 million to N55.72 million within the same period. Furthermore, the Naira equivalent of the Euro account, dropped from N26.56 million as at March 2003, to a total of N18.84 million by March 2004. From the N13.48 billion it had in treasury bills in March 2003, only N141.75 million remained as at March 2004. While its operating cost per line increased from N13,445 in April 2003 to N14,886 in April 2004, its operating revenue per line dropped from N98,089 in April 2003 to N14,886 in April 2004. On the other hand, capital cost per line which was N200.46 in 2003 has spiralled to N1,164.89. Project level indicators contained in the report, however, showed that total annual capital investment, which stood at N108.70 million as at April 2003 jumped to N628.65 million in April this year. Meanwhile, a report on NITEL in a subscription only publication has alleged that since its current managers took over in Feb. 2003, there had been "pillaging of the institution which used to be the cash cow of the federal government". "There is now very serious liquidity crisis at NITEL, a parastatal that used to be awash with cash", the report said. It also alleged that "for the first time since its inception in 1985, NITEL had to secure a loan of N1.5 billion to pay October salaries" in 2003. (SOURCE: Vanguard) ESKOM TAKES A R804 MILLION LOSS ON ITS FIBRE ROLL-OUTWhile Eskom Enterprises has posted a R804-million loss due to its expenditure in 2003 on telecommunications roll-out, its march into Africa goes on a pace in 33 countries.Its losses arose from an R800-million programme to install a 4,800km fibre-optic cable network in South Africa for the Second National [Telecoms] Operator (SNO), and R154-million in unrecovered expenditure in Telkom Lesotho, where it is the major shareholder. Apart from its large investment in telecoms in South Africa, Eskom Enterprises spent R581 million on this sector in Lesotho in 2003. This included a R100-million investment in Econet EZI-CEL. Now in its second year of operation, Econet has already secured 35,000 subscribers or 40% of the market share. These subscriber figures are unlikely to generate the kind of returns required to repay this investment. Eskom Enterprises’ inability to generate business from its telecoms infrastructure in South Africa is viewed in the telecoms industry as a lost opportunity. The Ministry and Department of Communications has failed to license the SNO over the past three years, while seeking a large international player to take a 51% interest. It has announced two black economic empowerment consortia, CommuniTel and Two Consortium, will take a 13% portion each of this shareholdoing while Government retains a 25% holding. Gcabashe told Business Times this week that the major part of Eskom Enterprises’ expenditure had been the roll-out of "very current technology" using fibre-optic cabling on electricity power lines, to provide voice and data communications. He dispelled any fear that convergence legislation would impede this process: "It is an inevitable technical development that you cannot stem". (SOURCE: Sunday Times) TELEKOM MALAYSIA PROTESTS, BUT OK’S LOAN FOR GHANA TELECOMTelekom Malaysia Bhd. said last Tuesday that its appointed directors to Ghana Telecom approved under protest USD130 million of loans to Ghana Telecom after the company said it would face a financial crisis if didn’t get thefunds. In a statement, Telekom Malaysia said the loan will be obtained from a syndicate of lenders under a financing arrangement with Alcatel S.A. (ALA). In other words, it was vendor financing. "The management of Ghana Telecom, Telenor Management Partners AS - a unit of Telenor ASA (TELN) - told the Ghana Telecom board earlier this month that Ghana Telecom would face severe financial distress if the board did not approve the loans," Telekom Malaysia said. Telenor has been managing Ghana Telecom for over a year. Six directors of Ghana Telecom are appointed by the government of Ghana and three directors of the company are appointed by G-Com Ltd., a Ghanaian company in which Telekom Malaysia has an 85% stake. "Ghana Telecom insisted that by virtue of the Ghana Telecom regulations, the G-Com appointed directors should approve these loans," Telekom Malaysia added. G-Com itself, a 30% shareholder in Ghana Telecom, still insists that the loan agreements require some minor amendments, "as the loan purports to dilute certain rights which G-Com states that it has under Ghana Telecom’s regulations," Telekom Malaysia said. "It is unfortunate that Ghana Telecom is entering into agreements to borrow sums in excess of USD100 million which are contrary to its own regulations and proper corporate governance. The fact that Ghana Telecom’s directors were required to act under protest to rescue Ghana Telecom from a severe financial crisis is a worrying development," Jaffa Sany Mohd Ariffin, Telekom Malaysia’s chief financial officer said. Telekom Malaysia is currently pursuing an international arbitration against the government of Ghana which is due to be held in The Hague, Netherlands, in July this year. Under the terms of the World Bank-sponsored privatization of Ghana Telecom, Telekom Malaysia was entitled to have control and management of Ghana Telecom. "The government of Ghana effectively deprived Telekom Malaysia of these rights in 2002," Telekom Malaysia said.As such, Telekom Malaysia is claiming $174 million in the international arbitration. Last month, the government of Ghana admitted liability and said it will pay Telekom Malaysia USD50 million from its foreign currency reserves, though Telekom Malaysia says it has yet to receive the payment or any part of the sum due. (SOURCE: Ghana Web)
SA’S MPUMALANGA PRVINCE CREATES WEB SITEThe Mpumalanga government has launched a new Web site to help it keep in touch with the people of the province as well as provide some of government’s services online. In one of his last duties as Mpumalanga Premier, Ndaweni Mahlangu said last week that the Web site would play an important part in ensuring that people had access to government. Mahlangu says the provincial government’s goal is to put the latest technology at the service of the citizens of the province by providing information that people need when they need it. "We believe that this Web site will be one of the most visited sites on the Web. People in Mpumalanga and the country, indeed worldwide, must be able to find critical information about our government’s response to creating work and fighting poverty," he says. The Web site will make government transactions, information and services much more accessible to all of those who use them as well as provide information on provincial news and projects, Mahlangu says. "This will include being able to apply for a passport, ID document, pension or student loan online. Likewise, businesses can search for business opportunities or submit their names as service providers." The Web site also provides information about the province, government departments, provincial municipalities, links to other provincial governments and national government, business and economics within the province, specialised services, tenders and travel information. (SOURCE: IT Web) IN BRIEF- Another book on how ICT is being used by people in the developing world, including Mexico, Costa Rica and Uganda: Link to the full document: ftp://ftp.fao.org/docrep/fao/006/y5106e/y5106e00.pdf - Mygovlab.org claims to be the first site providing resources for mobile government: http://mgovlab.iuj.ac.jp/ - When the Tazanian Parliament web site domain was bought by a Canadian operating a site selling things beginning with the "p" word, German Eberhard Blocher stepped in and bought back the site. He reports that after a quiet start visits have gone from 20 a day in January to double that in April. Go have a look: http://www.bungetz.org -If you happen to be in Rome on 28th May you’re invited to the eShopAfrica Design Competition Judging and Award ceremony. It is being held at FAO in Rome as part of the UN Africa Week celebrations whose theme this year is "Trade and Opportunities". As well as the judging of the competition and the awards, there will also be an exhibition of antique trade beads collected in Africa with the title "Africa as a Market: The Bead Trade" More details can be found at this link: http://www.eshopafrica.com/events/design2004.html If you would like an invitation, please send an email with your full name to design@eShopAfrica.com
BEGET LAUNCHES MOBILE AS PANIC BUTTON SOLUTIONCommunications software developer Beget Holdings has launched a solution that turns most cellphones into a mobile panic button, alerting family and friends to a distress situation and pinpointing the sender’s location within five seconds. Beget says this first of its kind offering uses cellular location based systems technology and the infrastructure of major cellular network operators to send a distress signal to pre-selected respondents. "At present the SMSOS system operates with any cellphone with speed dialling and caller-ID capabilities on the MTN and Vodacom networks," says Andre Potgieter, Beget MD. "Exactmobile is the service provider for the SMSOS system and will provide 24-hour support through their call centre, as well as contributing knowledge and experience in the field of cellular technology.’ Lize Gerber, SMSOS head, says crime is part of day-to-day living and saw the birth of SMSOS technology, which can be used in any panic situation such as car accidents and medical emergencies. "SMSOS is ideal for any situation in which you can use only one finger." Potgieter says by pressing the SMSOS speed dial or "panic button" on a cellphone, a priority SMS is relayed to each of the preset respondents. "This SMS includes personal and contact information, as well as the location of the person in distress using GSM coordinates. Multi-media messaging enabled phones will also receive a location map and shortly, Vodacom subscribers will also have the benefit of mobile tracking because of the kind of location server used by that network." The system’s ability to locate a cellphone depends on the cell coverage of the network provider, explains Potgieter. "The greater the density of the network’s masts, the greater the accuracy of the location." Gerber says the main subscriber can register up to nine dependents and six respondents as part of the roughly R250 ­ R300 per year subscription package, and can easily maintain personal information through the Internet. "The SMOS system is automatic and can handle 100 calls a second, thereby eliminating the problems of human error and slow response," says Potgieter. "The system also includes a logging facility and can generate complete audit trail reports on every call." Beget has reached an agreement with a French company for European distribution and a company in Australia for distribution there. "Locally, the SMSOS is to be made available through a network of distributors to be appointed in the coming months, providing an excellent marketing and income opportunity for distributors," concludes Potgieter. (SOURCE: IT Web)
PEOPLE* Following elections, the South African government has created a Science and Technology Department and its first new Minister is Mosibudi Mangena. Mbeki said during the announcement of his cabinet last week that the Science and Technology Department will now be a department on its own, split from the former Department of Arts, Culture, Science and Technology. The first step to forming the new department occurred two years ago when minister Ben Ngubane, who originally headed the combined department, appointed a separate director-general for science and technology.Mangena is the president of the Azanian People’s Organisation (Azapo). He has been serving as deputy minister to former education minister Kader Asmal since 2001. * Orange Botswana said last week that its CEO Phil Wilmer is stepping down from the CEO position at the end of his two-year contract. The Orange Board of Directors meeting also confirmed the appointment of Yannick Bourdeu as Phil Wilmer’s successor.The company said that over the past two years Phil successfully oversaw, the return of Orange to a positive cash flow position and the effective rebrand of Vista to Orange.
EVENTSITU TELECOM AFRICA 2004 (3-7 MAY 2004) Telecom Africa 2004, which will take place at the Cairo International Conference Center aims at bringing markets closer to share the growth of the telecom sector. More than 10 000 visitors from 100 countries are expected at the event. Moreover, estimated above 600 high level participants will be at the forum and exhibition representing government, regulatory bodies, funding agencies and the industry at large. Telecom Africa is returning to Cairo after 10 years to explore revolutionary advancements happening in the ICT field, as well as the vast transformations and developments in consumer habits and business trends. Building on this potential, the Government of Egypt will be working on a specific agenda to engage its regional partners assuring a platform for communication between governments, funding agencies, the business community and the ICT society at large. More than 200 exhibitors will occupy over 18000sqm, with more than 6000sqm located in the new annex built specifically for this grand event. The exhibition will house national pavilions showing unique initiatives of ICT for development and related projects from the region, as well as multinational corporations, SMEs working in the ICT business also from the region. 'Advantage Africa' is the theme of Telecom Africa’s forum. Topics debated during the forum will be specific to the region and will include: Digital solidarity; mobile Africa; managing internet resources; ICT for development case studies; using ICTs to achieve NEPAD objectives and fostering local content. The highlight of the event is the Youth Forum, entitled 'Access Africa', which will gather young adults from 53 countries to participate and share their views towards issues related to the advancement of telecom in the region. Remarkably, during the World Summit on Information Society-WSIS in December 2003, H.E. Hosni Mubarak, President of Egypt, Mr. Kofi Anan, UN Secretary General and Mr. Yushio Utsumi, ITU Secretary General, sent an electronic invitation to the World Community to meet at ITU Telecom Africa 2004 in Cairo. The Egyptian Pavilion, 2000sqm, located in Hall 4, is housing the Ministry of Communications and Information Technology, showcasing its national initiatives to promote the use of ICTs and unique projects of relevance to Egypt; Telecom Egypt, the incumbent operator, celebrating 150 years of telecommunications in Egypt at the Fair; the National Telecom Regulatory Authority; the National Telecom Institute; Egypt Post; and Egyptian private sector companies working in hardware, software, telecom service provision and manufacturing. At the MCIT booth, from May 4-7 live presentations on the Egyptian Information Society Initiative and its applications will focus on topics related to the National Post development Plan, e-commerce: Your PC is an ATM, Cultural Heritage in the Digital Age, and e-government. Egypt is, indeed, honored to host and organize the first official event following the WSIS to focus on African telecommunications. In this context, Egypt is planning to facilitate the participation of African small and medium enterprises working in ICT that could benefit from such an exposure. Moreover, organized field trips to ICT factories, software houses, and specialized facilities will take place; as well as special tours to the Smart Village, Egypt’s technology park. Concurrent to the event, the Ministry of Communications and Information technology-MCIT, in cooperation with the National Telecommunications Institute (an affiliate of MCIT) have designed and will implement a training program for ICT professionals from African countries. The program, which concludes during ITU Telecom Africa 2004, aims at building the capacity of ICT professionals within the governmental levels as well as the capacities of technical staff. Prior to the event the Arab Business Forum for ICT, ABFICT, will hold its annual conference on May 2. Egypt’s Minister of CIT, Deputy Secretary General on Economic Affairs at LAS, and Secretary General of the ITU will inaugurate the conference. Over three sessions discussions will embrace topics such Arab Mobile Operators future trends, Outsourcing, and E-Learning.
JOBS AND OPPORTUNITIES- Glotel is looking for a Post-Implementation Billing Consultant. This person will assist with: bill period closing, invoice reconciliation, error analysis and correction, modelling of remaining agreements and advice on the organisation and process design of the new interconnect units. Details from James Peters, Glotel (0044 207 484 3135 or jpeters@glotel.com)
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