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MALI'S SOTELMA GIVES SIEMENS USD72.5M ORDER TO EXPAND GSM NETWORK

A contract of USD72.5 million has been given to Siemens Communications by the Malian national operator, Sotelma to expand its nationwide Global System for Mobile communications (GSM).

As part of the project, Siemens added 65 new sites to the network in order to improve coverage in areas such as Bamako, Kati and Kayes and reach new markets like Timbuktu, Koulikoro or Sikasso. Siemens also offered training programme to enable Sotelma's technicians and engineers to perform their own administration, maintenance work and spare parts management for the system. The contract has a total volume of almost 40 million Euros.

Siemens also replaced the current switch with a Siemens D900 MSC/VLR communication platform including a subscriber database (home location register), in addition to a new transmission backbone, the scope of delivery included an Intelligent Network (IN) platform which enables Sotelma to offer its customers prepaid services flexibly and efficiently.

President of Mobile Networks at Siemens Communications, Mr. Christoph Caselitz said "Mali's mobile phone market has huge potential. By 2007, Sotelma plans to expand its subscriber base from now 2 percent to 8 percent of the population; that is then the equivalent of 800,000 people. While this is an ambitious target, the odds of reaching it are good".

Expanding the telecommunications network is one of the top priorities for Mali's government. A 20-year plan was approved in 1992 and since 2002 a separate ministry has handled its implementation.

In 1989 the government-owned Société de Télécommunications du Mali (Sotelma) was founded to develop fixed telephony. In 1999 Sotelma in turn set up Malitel, Mali's first mobile network.

However, the government's aim is a free market environment, and a second operator was granted a license in 2002. To counter this competition and become market leader, Sotelma had since found a strong partner to expand its network.

(SOURCE: http://allafrica.com/stories/200506090314.html)

VIRGIN SET TO PIGGYBACK ON CELL C BRAND IN SOUTH AFRICA

A new cellular network service branded by the Virgin Group should be launched within months, running on the network infrastructure of Cell C. The companies will set up a joint venture operator trading under Virgin's name, chasing more affluent consumers and business users who have shied away from Cell C.

The venture had been under discussion for months and most of the plans were now in place, Cell C marketing head Simon Camerer said on Wednesday. "A lot of the agreements are concluded so it's just the final signatures. Virgin doesn't announce anything until it's done, but there's fire where there's smoke. Virgin needs to decide when to launch, but I don't think it's months away."

The venture should be launched before number portability is introduced, which will let customers switch networks but retain their number. That should happen later this year, letting the new operator capitalise on customer defections.

Virgin operates as a "virtual mobile network operator" in Australia, Canada, the UK and the US by buying airtime and messaging services from an existing player and packaging them under its own name.

That has long been illegal in SA, and nobody has tested the slightly more liberal landscape created by the communications department this year to see if it is now permitted.

Instead, Virgin will work as a glorified service provider, rather than an operator in its own right needing to hold a licence. "Virgin will enter the market as an enhanced service provider by leveraging the capacity and back-end systems from Cell C. It will be a 50-50 split between the two organisations," said Camerer.

Virgin first discussed the virtual network model many years ago with Vodacom, but the talks were canned because of its illegality. Now it has chosen to partner with Cell C, even though Cell C is partly reliant on Vodacom's network to carry its calls in regions where Cell C is yet to build its own facilities.

Camerer said Virgin was keen to work with Cell C for several reasons. "We are similar in attitude and the way we approach the market."

The network was expanding and now carried 75% of its own traffic, with the capacity to handle additional calls generated by the joint venture, he said.

For Cell C the deal could end its problem of failing to win high-end consumers and business clients, who typically sign long-term contracts with MTN and Vodacom. Cell C entered the market chasing young, less affluent, prepaid users.

In the past year it has worked to change that image and woo more contract customers. Camerer said that had paid off, as it had won 23% of all new contract customers in recent months.

Tying up with a world-class partner with a strong brand would let Cell C chase a certain portion of the market that had traditionally gone to Vodacom or MTN, Camerer said.

"It's a great vehicle to go after those subscribers who have been in the market from the start, and who are aware of Virgin Mobile, Virgin Atlantic and Virgin Active and understand the brand."

(SOURCE: http://allafrica.com/stories/200506090083.html)

C3 OFFERS COMMUNICATE KIT CALL-HANDLING PACKAGE FOR TV SERVICES IN NORTH AFRICA

UK supplier of advanced telephony equipment, C3 Ltd, has identified Tunisia, Algeria and Morocco as key regions for the take-up of value-added mobile telecoms services such as TV voting, competitions and games.

Mobile telephone penetration is estimated to have doubled in all three of these countries since 2003 and is believed to have exceeded 40% of the population in Morocco this year.

African countries, which have a history of limited and unreliable fixed phone networks, are bypassing fixed line phone services and rapidly moving ahead with mobile phones and the extra value-added entertainment services they offer.

Apart from voice calls, the applications that generate the most mobile calls for service providers are the voting in Reality TV shows, broadcast SMS competitions and the downloading of popular ringtones and wallpaper pictures.

C3 is offering a new version of its Communicate Kit system in North Africa and the Middle East. It is designed specifically to deliver content to mobile handsets and to run televoting and other added-value services, enabling organisations to enter this exciting market.

Communicate Kit supports TV voting by voice and text message and has a web-based interface so programme producers can monitor voting in near-real-time. In future, it will carry calls for the emerging TV-to-mobile applications.

Says Mike Prymaka, C3's Business Development Manager for Africa and the Middle East:

"We have commissioned detailed market research for these three countries and that has shown a dramatic rise in the need for value-add services to mobile users. This summer, we shall be visiting North Africa to meet with companies and investors that want to enter the growing business of text messaging and TV services for mobile phones".

GUINEA ANNOUNCES IT WANTS TO TRANSFER A GSM LICENCE

The Ministry of Post and Telecommunications announced this week that it was looking to transfer an existing national GSM licence to a new operator. Those interested are asked to buy the licence dossier from the Bureau d’études et Stratégies de Développement (BESD) of the Ministry on the first floor of the l’Office de la Poste Guinéenne (OPG).

The dossiers went on sale from BESD on 10 June and offers need to be submitted to it by 1 August at 10am. There is an ad-hoc Commission in place that is able to answer questions from potential bidders. They can be reached on the following numbers: 224 43 50 01 ou 224 43 53 50.

There are currently three mobile operators in Guinea: Telecel Guinea, Sotelgui and Spacetel Guinee. With the the withdrawal of the Malaysians from Sotelgui, it is likely to be its licence that is up for transfer.

(source: Guinéenews)

LIBERIA'S CELLCOM DEPLOYS NORTEL SOLUTION IN FIRST PHASE OF EXPANSION

Liberian GSM operator Cellcom has chosen a Nortel solution for the first phase of its national mobile Network. The network will offer service to new subscribers in Greater Monrovia, Harbel, Kabkata, Buchanan and Robertsfield, the largest urban areas in Liberia. The first services were launched in November 2004. Cellcom plans to expand its Coverage to the entire country by the end of 2006.

"For the first time Liberians will experience the reliability and quality of a true mobile network," said Willis D. Knuckles, Jr., chairman, board of directors, Cellcom Telecommunications Inc. "Our aim is to connect Liberia nationwide and give the country a 21st century technology.

This mobile network infrastructure marks the single biggest investment in Liberia's economy since the induction of the National Transitional Government of Liberia in 2003." Liberia experienced more than 20 years of civil war until a peace deal was implemented in 2003 when the transitional government was put in place after President Charles Taylor was exiled.

"Affordable wireless services such as those offered by Cellcom will help boost economic activity and have a profound impact by connecting people and narrowing the digital divide," said Steve Pusey, president, EMEA (Europe, Middle East, Africa), Nortel. "Nortel is focused on enhancing individuals' lives. In Africa that means working closely with companies such as Cellcom to provide mobile services that have a critical impact on the local economy." Features offered to Liberian GSM users include a US$0.20 per minute rate for local calls with per second billing, making mobile services more affordable to local users. Cellcom is also introducing a virtual phone system, allowing anyone to access the network either wirelessly or through Wireline services. Individual subscriber identity module (SIM) cards with 100 minutes worth of local calls can be used in any Cellcom public phone to make calls or retrieve messages. Cellcom is also providing a full e-mail service to and from its mobile phones. Mobile subscriber numbers in Africa have increased by over 1000 percent between 1998 and 2003 to reach 51.8 million, according to the International Telecommunications Union (ITU). Mobile user numbers have passed those of fixed line, which stood at 25.1 million at the end of 2003. With the Nortel Cellcom deployment, the Liberian public will now join the more than 1.2 billion GSM subscribers worldwide. Nortel supplied Cellcom with GSM/GPRS wireless core network and radio access equipment, including Mobile Switching Center, Home Location Register (HLR) and advanced Base Transceiver Stations (BTS).

This includes the BTS 12000, which is designed to deliver additional capacity within a GSM/GPRS network while positioning operators to drive lower costs and to offer advanced wireless services based on third generation (3G) EDGE (Enhanced Data for GSM Evolution) technology. Nortel is also providing professional services and support, including project management, commissioning and training. Nortel's experience in Africa spans more than 20 years. Nortel has served leading enterprise and service provider customers including Telecom Egypt and SITA South Africa. In March 2003, Nortel also launched Africa's first CDMA2000 1X wireless network for Nigerian operator Multi-Links. Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only end-to-end provider of all next generation wireless solutions.

(SOURCE: http://www.investors.com/breakingnews.asp?journalid=28105905)

SA'S MOBILE HABITS UNCOVERED: MEN ARE BIGGER TALKERS IN THEIR CARS

It is official: SA men are bigger talkers than women when it comes to cell phones in their cars. 57% of men interviewed in a major new study admitted to talking on their cellphones while driving, compared to 37% of women.

The study forms part of the year-long Mobility 2005 research project undertaken by independent research organisation World Wide Worx, with the backing of FNB, Cell C, Sentech and the Mobile Institute.

In the sixth phase of the study, entitled 'The impact of mobile technologies on the SA consumer', released on Thursday, a nationally representative sample of 2 400 South Africans took part in telephonic interviews over a three-month period during the first half of this year. "The interviews were conducted with landline users who also own cellular phones, resulting in a sample that represents the upper two-thirds income brackets of cellphone users," says Peter Searll, director of Plus Harris 94, which conducted the field work for this phase on behalf of World Wide Worx.

The research unveils fascinating patterns in cellphone usage, and a detailed picture of a very satisfied market. "One of the most significant findings of the consumer research was that South Africans love their cellphones," says Arthur Goldstuck, MD of World Wide Worx. "Across half a dozen dimensions we rated, people were extremely satisfied with the impact of their cellphones on their lives."

This is clearly the market segment that keeps the cellular manufacturers in business: just over half of respondents said they had obtained a new handset in the past year. Of those who obtained new phones, half again said they would again obtain new handsets in the coming year. What happened to their old phones? The biggest proportion - 44% of respondents - passed it on to family members.18% kept it as a spare, 14% sold it, 10% gave it to a friend, and 5% simply threw it away. No less than 6% said their previous phone was stolen.

Age was found to be a major differentiator of the way in which South Africans use their cellular phones, particularly in the choice of contract versus pre-paid accounts. While 33% of all users in this market segment are on contracts and 64% on pre-paid, only 8% of those in the 16 - 19 age group are on contracts, with 90% on pre-paid. This doubles to 17% on contracts in the 20-24 age group, with 78% on pre-paid. Contract use rises steadily through the age groups until it peaks in the 46-49 age group, at 40%, and then begins to decline again.

More than half the respondents cited free or cheap phones as the reason for choosing their form of contract, pointing to a dramatic market shift if current regulatory proposals to scrap contract incentives become law. Average expenditure among contract users was R384 per month, and among pre-paid users R134, again indicating the impact that would be made on the market should there be a further shift to pre-paid. Not surprisingly, expenditure is lowest in the 16-19 age group, rising steadily to a peak in the 35-44 age group, and then dropping steadily as age increases - confirming the old stereotype that yuppies are the most enthusiastic cellphone users.

Nokia is far and away the first choice of cellphone brand for local phone users, with Motorola and Samsung in distant second and third places.

(SOURCE: http://www.ictworld.co.za/EditorialEdit.asp?EditorialID=23060)

IN BRIEF

- Chinese telecom equipment manufacturer ZTE Corporation is said to be planning a new mobile phone production plant in Africa. According to reports on the Xinhua website, ZTE’s country representative in Zambia has confirmed that the company is undertaking a feasibility study on the possibility of launching a new assembly plant there. ZTE has relatively long links with Zambia where it constructed an intelligent network platform covering five out the country’s nine provinces. National operator, Zambia Telecommunication Company (Zamtel), plans to extend coverage the remaining regions. The outcome of the feasibility study is expected later this summer. ZTE has expressed an interest in buying Zamtel.

- MTN Group has reported a 50% rise in subscribers in the six countries in which it operates, to 14.3 million, helping generate a 21% increase in consolidated revenues to ZAR29 billion for the full year ended 31 March 2005. In its home market, MTN’s subscriber base rose to 8.001 million from 6.27 million a year ago and 4.72 million in 2003, although the operator failed to make much impact on its rival Vodacom which reported 12.8 million at the same date. In Nigeria, MTN’s subscriber base leapt 123% to 4.392 million, although a higher proportion of lower-value customers resulted in ARPU dipping to USD40 from USD51 previously. Elsewhere, MTN’s Swaziland operation ended the period with 145,000 and its Cameroon subscriber base rose from 581,000 to 863,000. Ugandan subscribers leapt 45% to 719,000 and its Rwandan operation added around 40,000 users to end the year with 188,000. In the coming financial year MTN says it plans ‘to consolidate its position on the continent and to diversify its investment portfolio’, including the possibility of further international expansion.

TELECOM RATES, OFFERS AND COVERAGE

- Incumbent operator Ghana Telecom (GT) says it will introduce a pre-paid telephony service for home users by December this year, as it attempts to cut down the number of customers defaulting on their bills. The new card-based system will also allow users to make calls at public phone booths and GT has signed agreements with a number of major banks to allow customers to top up airtime at their branches.

- South Africa’s leading mobile operator Vodacom is optimistic about the future of its 3G service – the first in the country – after revealing that it has around 14,000 users of the technology so far. Vodacom received a temporary UMTS licence in June 2004 and has an option to convert it to a full licence for ZAR6 million per annum. It launched commercial UMTS services in Johannesburg, Sandton, Midrand, Pretoria, Durban and selected holiday areas in late December 2004. In an aggressive marketing tactic Vodacom offers video calls at the same price as voice calls to lure customers away from MTN and Cell C. Vodacom’s CEO Allan Knott-Craig says that 3G users currently boast monthly ARPU close to four-times the ZAR163 (USD24.4) reported by its 2G users. Knott-Craig says that he expects 3G customers to account for one tenth of Vodacom’s total user base within three years, and added that the cellco is set to double its number of UMTS base stations to 900 by the end of 2005.

UGANDA'S MTN TO LAUNCH GPRS AT THE END OF THIS MONTH TO PROVIDE MOBILE INTERNET ACCESS

  MTN clients will soon access the Internet after the launch of GPRS by the end of this month. MTN's chief executive officer, Noel Meier , announced this last Wednesday in Kampala.

The new service will also enable clients send and receive electronic mail, and access audio and visual messages off their mobile phones. Meier said, "There is a shift from basic mobile service telephony to more synchronised services like multi-media and other data services." He said the GRPS implementation will cost USD4m.

(source: New Vision)

HACKER ATTACKS ON MAURITIUS GOVERNMENT PORTAL FOILED

Attempts to hack into the Mauritius government's web portal (www.gov.mu) in two days may have been taken extremely seriously by the Government. Police opened an enquiry following a deposition from the National Computer Board that manages the portal. However a Cabinet communique made clear:"service from it has not suffered."

The police enquiry has so far established that the hacking attempts have been made by a person resident in Mauritius who uses a dial-up account. According to police sources, they are are only days away from identifying the culprit. The hacker's attempts were foiled by the security system, according to an engineer from NCB. Under the Computer Misuse and Cybercrime Act, hacking attempts of this kind can attract prison sentences.

(source: L'Express)

SOMALI AND DJIBOUTI DIASPORA USE VANADIAN ISP FOR LOW-COST VoIP CALLS

A Canadian Internet service provider hopes to fill a niche by offering voice-over-IP telephone services to connect Canadians from East Africa with their relatives overseas.

Ottawa-based Filaj Corp. on Tuesday said it will be offering six different voice-over IP (VoIP) pricing plans geared towards the Somali and Djibouti communities in Canada ranging in price from USD29.95 to USD52.75 per month. Besides their home countries, members of these communities will be able to call the United Kingdom and the U.S. Midwest. The company says there are more than 100,000 Somali and Djibouti residents in Toronto and Ottawa alone. (The Midwest is also a popular location for East Africans.)

The FilajNet service will use a network backbone from BabyTel, a Montreal-based provider of land-based telephony services using an Internet connection. BabyTel, which is a subsidiary of unified messaging firm Voice and Data Systems, began offering VoIP about a year ago.

Yassin Mohamed, Filaj’s vice-president and chief technology officer, said the long-distance charges of traditional telephone networks represent a significant barrier for East African people who come to Canada.

“Today you have people in major capital cities paying USD3 a minute. That’s why nobody calls,” he said. “It’s very difficult for these people to stay connected. There is no such thing as market penetration. Imagine what it will be like for these remote areas. This is the only feasible technology that can accomplish it.”

BabyTel vice-president and CFO Jonathan Schacter said the company wants to act as a “provider to providers,” allowing ISPs and cable companies the ability to enter the VoIP market, which is quickly filling up with competitors, within 30 to 60 days. Filaj, he said, is its first customer to be aiming at this kind of niche, but BabyTel is in discussion with potential customers looking at similar VoIP offerings.

“I don’t think it takes a big stretch of the imagination to see VoIP makes a big difference to everybody, but there are segments of the population where the value is that much greater, because of their calling patterns,” he said.

Filaj has been offering ISP services to East African communities in Canada since 2002, but it struggled to find a way of taking advantage of VoIP without BabyTel’s help, Mohamed said.

“We talked to a couple of places and they would not consider the small, energetic company. They would prefer to talk to big players,” he said. “We’re not Bell, we don’t have millions of dollars in our pockets.” 

Mohamed said he hopes to see the development of Internet cafes in Africa where users could access VoIP services as well.

“PSTN is long dead,” he said. “We have no doubt it’s going to happen. We want to be the providers of voice-over IP for all of Africa.”

Jon Arnold, an independent VoIP analyst based in Toronto, said some providers in the United States are marketing to Hispanic communities in Florida who want to reach their relatives in South America. 

“In Toronto, you have those markets too – but the calling card community kind of caters to that, because that’s what fits. It’s cash and carry, you pay as you go,” he said. “It’s an easy approach to bring something to the market, but this sounds pretty small potatoes. How many of them are even using broadband?”

The fact that FilajNet will be run by members of the East African community will give the initiative credibility, Schacter said, and show other providers they may be able to follow its lead.

“Second- or third-tier ISPs really need a solution,” he said.

(source: http://www.djibnet.com/)

SA ADSL UPTAKE 'PATHETICALLY' SLOW

On MyADSL 82% of visitors in an online poll thought that the uptake of ADSL in SA can be described as 'pathetic'. Comparisons to international broadband uptake reveal that South Africa falls behind on a daily basis.

South Korea is currently leading the world regarding broadband uptake, with 24,9% of the population in possession of a broadband connection. The UK and Australia are floating around in the middle with 10,5% and 7,7% respectively. In comparison only 0.002% of South Africans have broadband connections.

While Telkom signed up 17,000 new users since its price reductions in March, there were over 200,000 new broadband subscribers in Australia during the same period. The UK signed up more than 700,000 new subscribers during this time. With the current take-up rate it will take SA nearly 50 years to reach the same penetration percentage as that of Australia.

Says MyADSL founder, Rudolph Muller: “It is regrettable that Telkom is displaying classic monopolistic behaviour by showing massive profits, while its ADSL prices remain many times more expensive than its international counterparts. A standard 512 ADSL service in SA costs more than 50% of the average income of a South African. It is not surprising that 85% of broadband users described Telkom's net profit of R6,8bn as 'bad news for SA consumers' in a recent Web site poll on MyADSL.”

President Mbeki described Telkom's prices as unacceptable in his state of the nation address in February. This has not improved much, and the effect of this pricing is being felt by industry. Communications Minister, Ivy Matsepe-Casaburri, has pointed out that the sluggish uptake of broadband in SA is hurting our economy, by prohibiting some significant international investments.

(SOURCE: http://www.ictworld.co.za/EditorialEdit.asp?EditorialID=23058)

NITEL OUT TO WIN FRIENDS AND INFLUENCE PEOPLE WITH ITS IP WHOLESALE STRATEGY

Several months after it announced plans to wholesale Internet service, Nitel is out to provide IP transit and managed modem services to usher in a new level of relationship between it and dozens of ISPs poised to sign up to its new product offering.

At the formal launch in Lagos, Nigeria’s Communications Minister, Chief Cornelius Adebayo expressed optimism that the telco’s IP wholesale service would increase public access to telecommunications services. His words: “Today's event which is the official launch of Nitel's IP wholesale service is another step towards increasing public access to telecommunications services and subsequently bringing down cost of providing such services.”

Adebayo’s optimism is not unduly unrealistic. With most of Nitel’s SAT-3 optic marine access laying fallow, analysts think IP wholesaling by Nitel could potentially increase usage by 60% within a year and enhance the profit margin of the telco, billed for privatisation later this year, by well over 30% in few months. If this happens, Nitel would be given a positive meaning to the SAT-3 sub marine cable running from Europe through West Africa to the south of the continent. The West Africa’s end of SAT-3 has earned notoriety as a wasting investment and is tagged ‘the great elephant sea project’ because much of it has remained unused owing to incumbent operators’ reluctance to let other players access it. With Nitel selling wholesale IP services to other ISPs, SAT-3 “could get the big kick,” said one Lagos ISP.

The plan to wholesale Internet service has not been without its own hurdle in an industry where other players view Nitel’s competency and intentions with suspicion. But with new management, under Chief Executive Officer Albert Mashi, stepping up confidence and appearing to have a more cordial strategy towards winning the market, Nitel may have found its endearing magic among ISPs.

When Nitel first mooted plans to wholesale IP services under the former management team led by the Dutch firm Pentascope, it provoked outrage. Most ISPs considered it a surreptitious move by the state-owned telco to monopolise the Internet industry and get competitors off its SAT-3 access. Pentascope did not help matters. A war of wits with ISPs and pre-paid calling card operators over whether their licence provision allows them to have raw access to SAT-3 which would have cheap unfettered access for VoIP had generated controversy that painted Nitel as a stone age company, too old to be dynamic and too incompetent to act decisively on business issues.

Wholesaling opens great potentials for Nigeria’s difficult Internet sector with higher chances of stepping up data networking in corporate Nigeria as well as the numerous numbers of growing SOHOs. There is hope for improve efficiency in the Internet system since customers could be connected from their remote locations directly to the Internet backbone through an all-cable transmission facility less vulnerable to the vagaries of the weather would have been the case with VSAT. But the benefits of Nitel’s IP wholesale rest on better and faster Internet access as it rests on lower access charges for end-users on more bandwidth.

Would Nitel do well as the ISP for ISPs in a market with high mortality rate where players fade out by the day owing to high operations cost and lower margins? Mashi thinks the new deal for ISPs could re-define their business and make them focus more, in a competitive market, in giving more value-adds to end-users rather than struggling with getting Internet access and desired bandwidth from offshore ISPs. “Today’s event has been the high point of our endeavours as Nitel has been working overtime in recent times to efficiently perform its role as the ISPs’ ISP” said Mashi.

IP Wholesale has strong root in the US where AT&T sells managed modem services to a large number. But the US wholesale IP transit market is dominated by Level 3, Sprint, and MCI while the smaller players include AT&T and Savvis which provides services to call centers, conferencing providers, enhanced service providers such as broadband telephony companies, and long distance and international carrier voice termination. How far Nitel would go with its IP wholesale service would depend on its own capacity to accommodate Nitel dynamics and the propensity of the industry to experiment as had been the case in the US.

For Nigerian ISPs, change is certainly in the offing with cost saving in the offing on the more costly satellite access. “We now get our backbone infrastructure from Nitel’s SAT-3 cable and the speed and capacity is huge which allows us the choice of backing up with our satellite infrastructure” said Phillip Obiora, managing director, DCC satellites. Mr. Seni Williams, CEO of Tara Systems, the first ISP to sign up as Nitel’s IP Wholesale customer described as the remarkable, the difference his business recorded in the almost eight months of test running the platform. Mr. Sylvester Okonkwo, the CEO of Chinto Technology, an international call card operator expressed a similar view. Nitel's network had sufficient strength to change the Internet service landscape but whether it would deliver depends on how it wants to ‘parley the market, particularly ISPs,” said Okonkwo.

(SOURCE: http://www.itedgenews.com/alltm106.htm)

KENYAN FIRM TO LAUNCH SH160M INTERNATIONAL GATEWAY

A new internet gateway firm, UUNet Communications, is set to roll out services at an initial cost of Sh160 million this month. The firm is a subsidiary of UUNet Kenya, and the money is short term financing setup and operations, with more investment planned for later, depending on market growth and the needs of the firm's clientele.

Internet backbone providers are licensed to provide global data services to licensed operators. Besides internet service providers, licensed multinationals can use the backbone to transmit data. UUNet Communications has partnered with other companies, including Intelsat and General Dynamics, which are providing the required technology.

The first roll out of services will be in early June, with the implementation of the Mombasa node. Thereafter, the company will activate its Nairobi earth station in July. It also plans to install an additional antenna in Nairobi, which will use a different satellite and land at a different teleport.

Depending on the demand, says UUNet Communications general manager, Robert Kariuki, there is a possibility of installing a node in Western Kenya in either Eldoret or Kisumu. Reliability of backbone services has been an issue in Kenya, because Telkom Kenya's sister company Jambonet has suffered regular service breakdowns, seriously inconveniencing users.

One of the main problems with Jambonet's service is that it is provided by two earth stations, each with its own problems, says Mr Kariuki. He adds that the connectivity to the Kericho earth station is via multiple microwave links, each of which is a possible point of failure.

The Longonot earth station is connected via fibre optic cable which means the connectivity is good, but the earth station itself is very old having being installed in the 70s. Mr Kariuki says that UUNet has designed its network such that the earth stations are close to major traffic nodes thus reducing the points of failure.

"The earth stations themselves are either fully redundant, or have a full set of spares on site. We also have people stationed at these locations to ensure that a fault gets immediate attention," he says.

The firm will initially use staff from its affiliate company UUNet Kenya who have experience and market knowledge. "As the business expands, we are going to look externally for staff who can bring in skills, knowledge or experience that adds value to our operations," he says.

UUNet Kenya set up UUNet Communications, due to the new regulatory structure, which distinguishes between network service providers and application providers. The company is taking advantage of the liberalised telecommunications business, following the expiry of Telkom Kenya's monopoly in June 2004.

What marks out the firm in the emerging industry is that it has a global communications network of MCI, which is a global provider of internet protocol services. MCI is one of the largest in IP business in the world. "Owning the network allows us to design solutions for customers that are very specific to their needs other than offering them a generic off-the-shelf product," Mr Kariuki says.

Two other companies were licensed before UUNet Communications, but the licence runs for 15 years. A key grievance that gateway firms have is that the start-up costs are made particularly high by the licence fees and taxes.

UUNet Communications spent Sh21 million in licence fees and duties even before it had billed its first customer.

Mr Kariuki opines that the Government should give incentives to investors in this sector, to enable them to build telecommunications infrastructure.

The lack of a comprehensive ICT policy in the country means that everyone is operating on their own rather than working together to leverage on each other's strengths.

(SOURCE: http://allafrica.com/stories/200506070415.html)

NAMIBIAN EDUCATION TO BE REVAMPED BY TECHNOLOGY

To celebrate a pilot project that was started two years ago, His Excellency, President Hifikepunye Pohamba and the regional CEO of Microsoft, Jean-Phillipe Courtois, officially launched the Pathfinder initiative in Namibia on Tuesday.

Born out of a Memorandum of Understanding (MOU) signed with the government of Namibia and represented by its Parliament, Pathfinder supports the efforts of Nepad and focuses on the needs and educational growth of Africa. Having proven its sustainability, Microsoft is ready to replicate and deploy Pathfinder across other regions in Africa.

To date, Pathfinder has been rolled out across 13 schools around Namibia. The initiative aims to bridge the digital divide using Microsoft's nine point model of ICT in education. The model includes access, training, technical support, standards, innovative software, digital content, research, telecom and power and policy development. The project is also in line with Microsoft's broader technology and education initiative known as Partners in Learning (PiL).

Pathfinder has been widely embraced by the Namibian government and this relationship has evolved to create a Public Private Partnership (PPP) between Microsoft and various public and private sector stakeholders. Thus creating a 'project team' responsible for the sustainability and success of this initiative.

"When we started this project, our mission was to introduce information and communication technology (ICT) into the education environment in ways that were locally relevant. We needed to take into account the specific requirements, challenges and opportunities that schools in Namibia face. And we had to design a solution that could serve their needs and provide a platform for rolling out in other parts of Africa," explains Sean Nicholson, the Pathfinder project leader for Microsoft EMEA.

At the outset, many challenges presented themselves. The project team could not just deploy computer hardware and software in schools. Power, security and physical limitations had to be taken into account. As a result, Pathfinder covered the provision of general infrastructure, power supplies, furniture and [other] solutions to Namibian schools.

"To train our Namibian teachers, technology training sessions were arranged. We had allocated these sessions for 26 teachers (two per school), but when 45 arrived for training on the first day, we realised just how enthusiastic the educators here are," says Isabella Wellman, Pathfinder's project leader for Namibia's government.

To support and compliment the use of textbooks, notebooks and encyclopedias the Pathfinder project has provided schools with educational software tools, for example, Encarta, an electronic encyclopedia. Encarta supports teachers when they are preparing lessons and gives students the tools and information needed to complete their homework, while learning how to operate PC technology.

The great success of this project has also seen Microsoft's development of software called Learning Network Manager (LNM). LNM was partly developed and trialed in Namibia and it was designed to assist in the set up of schools.

In order to address access issues the Pathfinder project has created a computer refurbishment centre in Namibia. This creates a scaleable and sustainable model for providing affordable, quality, refurbished computers to local schools and community centres.

By building relationships with corporates, government, NGOs and charities, a supply chain has been established to bring donated PCs from Europe to refurbishment centres in Africa. At the refurbishment centres, the PCs are loaded with licensed copies of Microsoft software and configured for local use. From there, the PCs are deployed into the schools and community centres.

In the ripple effect of the Pathfinder initiative, ICT training courses have been developed and implemented at national vocational training centres. For instance, at the Windhoek Vocational Training centre, a junior PC technician's course has been created where students are given training on how to assemble and maintain PCs. Local Namibian partners are also given the opportunity to run the computer labs. Together, these programmes provide a foundation for making Pathfinder, and its spin-offs, self-sustaining.

The success of Pathfinder indicates that technology is a powerful tool that can help people, communities and nations realise their potential. The proof of this lies in the fact that the projects have been taken over by Namibia and are providing new opportunities for local people to join the global digital society.

"For the Namibian parliament, the project has enhanced our policy of 'taking parliament to the people'. By deploying computers at our schools and community centres, it means that the voting public also has greater access to information about their government, allowing them to make informed decisions about their country," says Dr. Moses Ndjarakana, secretary to the Parliament.

"This has definitely been a learning curve for us. We approached this project with a rather naïve image of what should happen and what we have come away with is a great wealth of experience which we hope to pass on to and help replicate in other African countries," concludes Nicholson.

However not everyone is as pleased with the Pathfinder initiative as the response circulating from SchoolNet Namibia's Director Joris Komen shows:

1. The Namibian PathFinder project has managed to deliver 156 refurbished computers to some 13 Namibian schools to date (in the more than TWO years (not ONE year!) this project has been "active" in Namibia), the majority of which are dysfunctional presently (even Groot Aub had problems two days ago when visited by the recent international MS delegation!);

1a. The non-free software offered at special discounted pricing include MS Windoz server 2003, MS Windoz Class (?) Server, MS Office Pro XP and Encarta. Rumour has it that they'll also be bundling Learnthings soon ... Great News, given the historically fierce debates about this bundle, when it was ported with our product!

2. The precarious technical support services of these school computer labs have been vested in WorldTeach volunteers who intermittently spend between 3-12 months at various sites, and who have, until quite recently, had to phone a call-centre in CAIRO, EGYPT, for troubleshooting purposes (talk about globalisation:-)!!). As I understand the "handover" this week, MS expects the government of Namibia to take full responsibility for technical support at these (n=26) schools - this is also excellent news, since by implication, SchoolNet schools (n=360+) shall then also be expected to benefit from such support!);

3. The Pathfinder project managed to train 40 teachers from some of these schools to use power point presentation in a single two-day workshop in 2004; some of these teachers had to travel 900 kms to attend!

4. The pathfinder project has managed to imitate our SchoolNet Technical Service and Training Centre (open to enthusiastic unemployed out-of-school youth for FREE) by opening up another Refurb Centre at the Windhoek Vocational Training Centre, which expects to recruit refurbishment trainees by asking them to pay a student fee to gain these skills - why not open such a centre at the VTC in Ongwediva? I also hear that this new refurb centre will be entirely "self-sustainable" without any corporate or donor support! I hope so, after hearing that a whole bunch of their recently acquired refurbished computers fell through the false ceiling on which they had been stored at the new refurb centre last week;

5. The one MS Community Technology and Learning Centre (in Gobabis) has been effectively dysfunctional (picture on request!) from the start, dependant on a local prefered commercial dealer (name provided on request) to provide technical service at cost. MS also convinced Telecom Namibia to pay for the internet costs at this centre; SchoolNet (through XNet Development Alliance) was billed for this centre's internet costs from June 2004 to May 2005. The bill was finally settled on behalf of MS by their prefered commercial dealer this week, following some earlier lively debate on this matter:-).

6. Given the apparent desperate shortage of used computers originally promised by the Prince of Wales International Business Leaders Forum, MS has now exploited international refurbished computer agencies (names provided on request), which have traditionally attended to the needs of CSOs in African countries; these (mostly) not-for-profit agencies in Europe, UK and elsewhere have always been very particular about their resources being strictly used for non-commercial purposes! The highly commercial advert for these refurbs (copy on request!) clearly indicates a for-profit purpose by the prefered local dealership to "sustain" the MS pathfinder in Namibia.

7. MS, through their prefered local dealership, is presently engaged with the Ministry of Education to deploy computer labs to another 13 schools throughout Namibia to address a need to replace typewriting with keyboarding and office administration ; using an alpha MS brand of "thinclient"/server configuration (13 Namibian schools will serve as guineapigs to fine-tune this new MS product) which requires a CDROM to boot the workstations (we gave up on such removable boot media some three years ago, given the endless difficulties we experienced with such removable media going astray... CDs make great frisbees!). This project is behind schedule, having apparently completed three schools thus far - a shortage of refurbished computers!!! Two schools earmarked for this typewriter conversion have already requested SchoolNet to remove their computers from the premises (Toivo ya Toivo SS and Ruacana Vocational SS!), and a third school (Putuavanga in Opuwo) will likely be contacting us next week Tuesday.

Do we really need a lost cause like the MS Pathfinder to further confuse African Ministries of Education? I say not. Frankly, you don’t even need a COMPASS to find SchoolNet in Namibia, let alone the rest of Africa!

SchoolNet Namibia has built a strategic implementation plan in line with Namibia’s ICT Policy for Education, and is a leader among SchoolNet initiatives across Africa.

SchoolNet Namibia has raised local standards and promoted digital inclusion by providing affordable flat-rate 24/7 Internet Access (XNet - @ << US$ 50/month, inclusive of technical training, support, maintenance and repair services) and Technical Training (with a large Namibian technical volunteer pool - some 63 young Namibians on our books this year, and many more being trained presently) providing Support (helpdesk, toll-free telephonic support, and roving trainers and technicians).

Furthermore, the provision of innovative FLOSS Standards (Direq OpenLab), Educational Content (EDUPACK), ongoing Technical and Educational Research (Bridges Reports and African SchoolNet Toolkit are great examples), affordable nation-wide Telecommunications (wireless internet), Alternative Energy solutions (23 Solar powered schools), have all been crucial “ROAD-PAVING” SchoolNet initiatives justifying its key role in national and sectoral ICT Policy Development.

Achievements by SchoolNet Namibia in 2004 included significant progress by deploying, training and supporting ICTs to 103 schools and the four Colleges of Education, nationwide. Training of Trainers continues at a rapid pace, with volunteer Trainers deployed to more than 40 schools in 2004, on a demand-driven basis.

So great is the interest by schools to gain access to and learn about ICTs that SchoolNet established a satellite workshop and training centre in Ondangwa in 2004. This has made local training and technical service support more cost effective and efficient. Since a huge number of schools served by SchoolNet are in north central Namibia, this centre in Ondangwa saves teachers and learners the time and expense of travelling hundreds of kilometres to Windhoek or Okahandja to gain ICT skills!

Focusing on schools with secondary grades, SchoolNet has deployed ICT solutions scaled to specifications and priorities set by the new Namibian ICT Policy for Education. Such ICT systems typically include a new Pentium IV Server, between 5 and 10 ‘thin-client’ workstations (with new monitors, mice and keyboards!) and an Uninterrupted Power Supply. These PCs are installed on SchoolNet’s innovative round table-tops, with network cabling, switch and internet service equipment ensuring that all computers have secure access to server-based software, applications and locally relevant educational content as well as the Internet. Developed specially for the Namibian education sector by Direq International in collaboration with local and international pedagogues, SchoolNet Namibia’s tailor-made OpenLab solution provides Namibian schools with access to a wide range of educational resources.

The latest release of Direq OpenLab version 3.2.8 includes EDUPACK which is AWESOME! Especially with the new Wikipedia (meeting the demand for a FLOSS copyleft reference encyclopaedia),  and some fantastic learner/learning management and examination tools to complement the existing educational resources. With WWW Internet Mathematics Server (WEMS) and other mathematics and numeracy applications providing is a fantastic interactive resource base for teachers, an upgraded typing tutor, the latest release of Open Office suite and both Schoolnet and EDSNET resource web sites now have icons on the default desktop (The latest EDSNET resource CD produced by Namibia's Institute for Educational Development (NIED) has been integrated in this new version to provide teachers with local curricular guidelines and syllabus resources). The Gutenberg Project provides access to several thousand popular copyleft textbook and classic literature resources in both text-printable and html formats. The teacher-oriented self-guided IT-literacy training modules (EDN) now work without the need to go on the internet (Certification will shortly be available through SchoolNet South Africa and the University of KwaZulu Natal, SA).

Best practices guidelines and lesson plans, developed by local Peace Corps volunteers, are available on our website inclusive of materials for HIV/AIDS awareness. We also have our very first online Oshindonga and Oshikwanyama translation resource material to add to our growing list of localised online materials. And don't forget to READ AND COPY our HAI TI! COMIX! (http://www.schoolnet.na/haiti/)

It is SchoolNet's intention to continue to deploy an ICT solution that can affordably and realistically host ANY generic, platform-NEUTRAL content for the benefit of teachers and learners at schools and their surrounding communities in Namibia. We expect our platform to provide a creative digital commons (see www.creativecommons.org) AND CopyLeft resources to grow with appropriately moderated teaching and learning resources, through easy-to-use localised authoring tools - the wikipedia is a great example of this!

SchoolNet’s Technical Service Centre, which opened at the Katutura Community Arts Centre early in 2003 has refurbished thousands of computers with voluntary help of hundreds of out-of-school unemployed youth, and deployed these computers to schools and other eductionals clients country-wide. More than 1000 computers were refurbished and deployed in 2004 alone. Significantly, these efforts were pivotal to the publication of the widely-acclaimed Bridges.Org Guide “How to set up and operate a succesful computer refurbishment centre in Africa - planning and management guide” and the SchoolNet Africa online Technical Service Centre Managers’ Training programme (http://www.schoolnetafrica.net/fileadmin/1MillionPCsTraining/ Index.htm).

SchoolNet’s toll-free telephonic help desk services, coupled with a locally-developed COPYLEFT help-desk tracking database have signifcantly improved SchoolNet’s operational capacity for troubleshooting, technical service and repair services in the past year. The database is proving to be a powerful monitoring and evaluation tool of the impact of ICTs on the education sector.

2004 milestones included the official launch of the XNet Development Alliance by our former founding President Dr Sam Nujoma, who, as its first Patron, also has a Life membership with the Alliance. Founded by SchoolNet and Telecom Namibia, this Alliance expects to bring together local and international industry stakeholders to support subsidised flat-rate internet access to all bona fide education sector clients, with a view to expanding this service to other disadvantaged sectors of Namibia through the creation of Internet service providers such as SchoolNet.

SchoolNet won the prestigious National Science Award in the special awards category “Best Community ICT Delivery” in 2004, awarded by the then Ministry of Higher Education, Training and Employment, in recognition of SchoolNet’s ICT development efforts in Namibia’s education sector.

SchoolNet co-hosted the first Africa Source Free and Open Source Developers Workshop at NIED in Okahandja in 2004, bringing together nearly 100 FLOSS programmers and think-tankers from all over the world to strategise the future of FOSS development in the context of bridging educational digital divides. This workshop also provided an opportunity for SchoolNet to co-host a critical one-day meeting on the One Million PC campaign for Africa bringing together international stakeholders to determine the role of refurbished computers in education sectors of Africa. The reports and recommendations from both these events have received considerable international attention, with the exciting result that SchoolNet Namibia will receive 5,000 of 10,000 computers donated by KPN, a large corporation in Holland, in mid-2005.

SchoolNet Namibia hosted numerous international fact-finding delegations from countries all over the world, interested in gaining first-hand insights of SchoolNet’s operations. Notably, we hosted delegations from as far away as Tajikistan and Uzerbaijan, Poland, Canada, Sweden, the USA, Brazil and numerous African countries.

SchoolNet Namibia will continue to provide sustainable, low cost technology solutions and internet access, as well as technical support, training services and rich educational content to schools, community-based educational organisations, and educational practitioners throughout Namibia. SchoolNet is strongly committed to the accelerated growth of Namibia’s ICT Sector in line with Namibia's Vision 2030. We are a leading, internationally-acclaimed and innovative not-for-profit ICT service provider to the education sector, committed to fulfilling our educational, social and environmental responsibilities. We are proud of our transparent promotion of free and open source technology solutions and affordable internet access toward Namibia’s educational advancement.

In these contexts, I am hugely pleased that we now have an ICT Policy for Education which mandates a cross-sectoral ICT Task Force to review and advise on ICT development initiatives such as the MS Pathfinder and the MoE typing classroom project; we very badly need greater transparency to address and resolve conflicting interests and duplicative ICT development initiatives in Namibia!

Joris Komen
Director SchoolNet Namibia

INSTITUTE TAKES ICT UP-COUNTRY IN RWANDA

A local institute, CTC-Institute of Information Technology, has finally completed opening up IT centres in all provinces of Rwanda. According to Jaffar Bagonza, a Principle at the Institute, each centre has at least 20 computers connected with Internet for the students.

"These centers will go a long way to spread the level of computer literacy in rural areas. The ultimate long term strategic goal of CTC is to have at least two centres in each province by the year 2006. It is hoped that these centres will improve on information processing, retrieval and dissemination," Bagonza says.

Bagonza says that CTC intends to use the centres to offer Rwandans end user courses such as word-processing, spreadsheets, graphic design, presentations, database management and design, Internet and e-mail. In order to address gender parity in acquiring ICT knowledge, the institute intends to offer many scholarships to females as incentives.

In Kigali, CTC is currently running a number of courses which include Computer applications and operating systems, computer hardware and maintenance, networking and communication system installation and other professional courses leading to International certification.

By the end of 2006, CTC will unveil its state of the art ultra modern computer assembling plant that will assemble computers in Kigali instead of importing them from outside. This will save foreign exchange and revolutionalise ICT for Rwanda, the CTC official said.

(SOURCE: http://allafrica.com/stories/200506060898.html)

ONLY 200,000 COMPUTERS FOR 26 MILLION UGANDANS, ACCORDING TO MAKERERE SURVEY

In an age where people in the developed world can access the internet on their mobile phones, over 70% of Ugandans have never heard of the word.

There are less than 200,000 computers serving a population of 26 million Ugandans, and in addition to that, more than 70% of them have never heard of the internet, a recent research on e-usage in Uganda has revealed.

On average, there is roughly only one computer for every 100,000 people in Uganda.

The research conducted by Makerere University's Directorate for Information and Communications Technologies Support (DICTS) was released last week in Kampala.

Uganda Communications Commission (UCC) Executive Director Patrick Masambu said the research findings have been vital in informing the proposed new Telecom policy making process.

The proposed new policy is expected to feature in parliament this month.

Masambu said UCC injected over USD50,000 for the research while other NGOs like Canada's International Development Research Centre gave over USD75,000. The Uganda Bureau of Statistics was also involved.

The outcome of this research will also be very valuable to the private sector especially the telecom service providers, as it will help them make informed decisions on what services to give Ugandans.

Dr. Francis Tusubira, the DICTS Director and head of the research said this house-hold based survey looked into who was using information and communication technologies, where and how users got access, their age and at what cost they bought ICT services, and the rural-urban and gender divides in usage.

The survey's scope covered 58 enumeration areas and 1770 households of which only 1623 interviews were successful out of the planned 60 enumeration areas with 1800 households. For the benefit of UCC, 56 institutional questionnaires were distributed to organisations, schools, health units and businesses including factories.

The survey notes that the national penetration of computers stands at 0.7 % meaning that there are only 182,000 computers serving 26 million Ugandans.

On Internet usage, the survey says, "The typical bill for home internet is about sh85,000, but only 4.2% and 0.1% of the urban and rural populations have electronic mail addresses (e-mail) and about 60% of which are free subscription while the rest are paid for. The national penetration of e-mail is 0.4% or about 104,000 people have e-mails of the 26 million Ugandans."

Tusubira said the use of internet and e-mail in Uganda is insignificant or next to none.

In his brief analysis of the gender and urban-rural divide in computer usage, Tusubira highlighted that more women than men are using computer based tele-facilities and that the underlying factor in accessing and utilising these facilities appears to focus on income.

According to the survey figures, on telephony, 96.3% of urban dwellers and 99.5% of those in rural areas do not have a fixed telephone at home.

The survey found that fixed phones were rarely used in rural areas as compared to 50% of urban dwellers who used them in urban areas.

According to the report 2% of the rural population and 16.6% of urban dwellers own mobile phones.

"In terms of income, 0.9% of people with lowest income; 6.2% and 15.9% in the middle and high income groups own phones. There is significant usage among the lowest income group. Almost all the phones are on pre-paid terms.

Expenditure on public phones in rural areas is typically sh1, 500 per month while that in urban areas is typically sh2, 500," Tusubira said.

Payphone usage is greater in the urban areas but increases with income in the rural areas.

Tusubira observed that the survey had underscored some of Uganda's challenges in achieving equitable access to ICT.

(SOURCE: http://allafrica.com/stories/200506070678.html)

APPLE SET TO EAT INTO SA PC MARKET ON IPOD APPEAL

APPLE is aiming to treble its computer sales to capture 3% of the South Africa market by opening more retail outlets backed up by online sales.

Apple almost rotted away in the 1990s, but is flavour of the month again thanks to its must-have iPod music players, the funky designs of its Apple Macintosh computers and high-end software aimed squarely at the artistic professions.

The change in fortune was vividly demonstrated when demand for its Mini Mac outstripped the most optimistic forecasts fourfold. That left Apple massively short of capacity, but customers proved that they were prepared to wait.

In South Africa, Apple sales have grown 50% a year for the past four years, although it only recently became a blip on the radar screens by winning 1% of desktop computer sales. To achieve 3% it must sell 30,000 computers, up from an expected 10,000 this year.

Two years ago, Apple's revenue in SA was R2m a month. It is now R20m a month and rising, with the online store contributing R1,5m a month, said Rutger-Jan van Spaandonk, a director of Apple's local representative Apple IMC.

That is the new trading name of the Core Group, which has distributed Apple computers in SA for years. It is one of several companies controlled by the Ichikowitz family, with a minority of shares held by the staff. It does not have any empowerment ownership, but Spaandonk said that this would be rectified once the charter governing the hi-tech sector was ratified and the goals were clear.

Spaandonk is confident of reaching his sales targets. "We are going to convert a lot of PC users to Macs and there are a number of reasons people will switch," he said.

He said that design was one reason and security was another. "People who use a Mac find they never have spyware or viruses because the operating system is more secure."

By the end of the year, the company will have opened at least seven franchised Apple centres, with the next opening in Cape Town's V&A Waterfront later this month.

Apple is targeting its high-end, R60000 Power Mac at creative professionals such as graphic designers and video producers.

For consumers, the teenage market is potentially huge, with its Macs allowing people to edit photographs and video clips, add some music and a diary and publish the results in online blogs. "All of a sudden computers are fun, and that's what computers should be for consumers," said Spaandonk.

"We have stopped trying to get an Apple on everybody's desk, and now we are just aiming at the people who should be using one. If you input data at the bank then we can't help you."

The popularity of Apple's iPod music player should fuel that growth, by putting Apple at the top of fans' minds when they shop for a computer. Apple is on track to sell up to 50000 iPods in SA this year.

Macro and Incredible Connection stores are selling the iPod and may soon stock Apple computers. Before the iPod revolution, those stores would not stock Apple models even if the company begged, Spaandonk said.

Although the profit margin on a Mac is generally higher than on a PC, the margins are not particularly good, Spaandonk says. "That doesn't mean it can't be a good business, but you need to manage the inventory well."

Ironically, for all its innovations, Apple makes its best margins on peripheral products, including the iPod carrying case and its computer docking station.

(SOURCE: http://allafrica.com/stories/200506090461.html)

FRAUD: VISA GIVES NIGERIA CLEAN BILL

Visa International, the world's leading electronic payment company has given Nigeria a clean bill of health, saying no incident of fraud has been recorded since it commenced issuance of cards in the country a couple of months ago.

Vice President, Risk Management, Africa, Visa International, Mr. Neil Hawkey made this known in Johannesburg, South Africa at the weekend during a chat with some African journalists.

"There has been no fraud record of any Visa card issued in Nigeria and I think this is a very good development," he said.

Standard Chartered Bank is the only bank that issues Visa Electron (international debit card) in Nigeria. Two other banks, namely Ecobank Nigeria Plc and Standard Trust Bank Plc also issue Mastercard.

Hawkey however, noted that Mozambique topped the list in Africa acquired fraud losses in selected countries during the fourth quarter of 2004 in the Central Europe, Middle East and Africa (CEMEA), with 1.25 per cent fraud to sales losses, followed by Algeria (0.57 per cent), Morocco (0.39 per cent), Cote D'lvoire (0.24 per cent), Tunisia (O.17 per cent), Egypt (0.16 per cent) and South Africa (0.12). The CEMEA average fraud to sales losses was therefore put at 0.11 per cent

During the same period, in terms of Africa issuer fraud losses, he noted that Kenya led the pack with 0.37 per cent fraud to sales losses, trailed by Egypt (0.16 per cent), Mauritius (0.15 per cent), South Africa (0.07 per cent) and Botswana and Tunisia having 0.03 per cent apiece. The CEMEA average fraud to sales losses was therefore put at 0.08 per cent.

But in the first quarter of 2005, he noted that Europe topped the list in terms of counterfeiting by region of card, accounting for 64.1 per cent of the counterfeited cards during the period.

This he said, was trailed by some regions in the CEMEA (10.3 per cent), United States of America and Asia (9.7 per cent each), Canada (4.8 per cent) and Latin America (1.24 per cent).

He however noted that fraud rates on Visa cards are on downward trend worldwide, stressing that Visa and its member banks work closely together to fight fraud.

"Visa has also developed CDs in Arabic, English and French to help intimate the police and other law enforcement agents with the various types of ways used by card fraudsters. We also give them various hi-tech tools to help them read as well as identify fake cards," he added.

Hawkey also maintained that technology would drastically reduce the incidences of card frauds.

Earlier, Visa's Business Development Manager, Nigeria, Mr. Garvin Young, defended the investment made in Valucard, which he described as the largest Visa has ever made in any entity within the sub Saharan Africa. Young who would be permanently based in Nigeria by December, said "there is huge potentials for e-payment transactions in the Nigeria."

Visa International had a couple of months ago bought 30 per cent stake in Valucard Nigeria Plc by committing $2.8 million to secure a seat on the board. Valucard, which is owned by 33 leading financial institutions, has in its consortium 43 banks.

Also commenting on Nigeria, General Manager and Senior Vice President: Sub-Saharan Africa, Visa International, Mr. Robert Clark described the Nigerian market as complex.

"The Nigerian market is complex with lots of banks in the e-payment consortiums using different platforms. The on-going consolidation is also changing the face of banking and there is also pressure to ensure trust and confidence in the banking system," he said.

Specifically, he said Visa is increasing its focus across sub Saharan Africa "because there are huge growth opportunities."

Visa, which has 13,905,452 and $29,796,677,744 card numbers and expenditure value respectively as at December 2004, he said, intends to increase year on year by 31 per cent in card numbers and 50 per cent in expenditure value.

"We want every metric to be doubled in the next two years and also want to be the alternative to cash," he added.

Visa International is the world's leading payment brand generating nearly $3 trillion in annual card sales volume. Visa, which is widely accepted in more than 150 countries, is reputed to play pivotal role in developing innovative payments products and technologies to benefit its 21,000 member financial institutions and their cardholders.

(SOURCE: http://allafrica.com/stories/200506070902.html)

IN BRIEF

- Sahara Computers and Electronics Ltd (SCEL), a joint venture partnership between the South African IT major, Sahara Computers (Pty) Ltd, and Sahara India Pariwar, on Tuesday announced the launch of a wide portfolio of IT products in the Indian market including desktop PCs starting at Rs 9,999. According to the company's Chief Operating Officer, Mr George Van Der Merwe, "SCEL's strategy is to bridge the digital divide and make the best technology available to everyone at affordable prices." The SCEL Desktop PC is in the range of Rs 9,999-50,000. The basic model of desktop PC is a complete multimedia PC with AMD Sempron Processor 2400+, 128 MB Ram, 40GB HDD, 52X CDROM, Linux, mutimedia speakers, fax modem and a one-year onsite warranty.

SOUTH AFRICA'S TELKOM FY PROFIT JUMPS BUT CAUTIOUS AHEAD

South African fixed-line phone company Telkom unveiled a 47.5 percent jump in annual headline earnings per share on Monday and a surge in net profit to ZAR6.8 billion (USD1.1 billion) for its full fiscal year to the end of March 2005. The result comes on the back of operating revenues of ZAR43 billion, up 6.5%.

Headline earnings, which strip out one-off, non-trading and capital items, rose to 1,274.1 cents per share in the past financial year, at the top end of a company forecast for a jump of 35-55 percent, thanks to cost cuts and strong growth at its Vodacom mobile unit.

Commenting on the results, Telkom’s CEO Sizwe Nxasana put the impressive results down to “acceleration in the uptake of data services, robust growth in mobile arm Vodacom’s South African customers and reduced finance charges”.

Telkom, Africa's biggest telecoms company, declared a total dividend of 900 cents per share, including a special dividend of 500 cents, and reiterated it wanted to use its strong cashflow and debt capacity to push into other parts of Africa.

"These numbers are very good, both in its core business and at Vodacom, and people will be very happy with the dividend," said one Johannesburg-based analyst. "I think the share will react very well."

However, the company said its core margins would stagnate this year as it faced tough competition. Telkom Chief Executive Sizwe Nxasana said the good times were over in its key home market, where it had completed a wide-ranging revamp to cut costs and now faced tougher competition as the market liberalised.

"We do not expect our EBITDA margin to increase, it will be flat or even slightly lower in the current financial year," he told a conference call. "There will be competition, there will be price reductions."

One analyst said he believed this was a conservative forecast, and that its earnings before interest, tax, depreciation and amortisation (EBITDA) margin would not fall, given that Telkom had already paid hefty one-off costs to sack thousands of workers.

South Africa opened the telecommunication market to rivals in February this year, which has started to chip at Telkom's monopoly. The much-delayed launch of a second national operator, planned for later this year, will also be a blow.

Telkom shares have gained 21 percent this year to trade at 117 rand, or 13.9 times normalised earnings, according to Reuters data. That makes it cheaper than its closest, rival mobile firm MTN, which is trading at 17 times earnings.

Telkom, criticised for charging high prices, has been slashing charges for international calls and high-speed Internet access to fight nimbler newcomers and would continue to do so.

The company would move to a predominantly Internet Protocol-based network to offer converged services such as voice, data and video and hoped to become South Africa's leading provider of Internet and value-added network services.

Telkom was also keen to exploit untapped markets in the rest of Africa, where growth in demand for telecoms is booming. "Although it is clear that significant potential for growth exists in Africa, Telkom will evaluate any acquisitive opportunities as they arise, using stringent criteria particularly in terms of their value accretive prospects," it added.

Nxasana said the company would not necessarily drop a planned joint bid with Vodacom for a majority stake in Nigeria's Nitel and its cell phone unit M-Tel if Vodacom won a separate bid for the number two mobile operator there, Vmobile. "It doesn't necessarily mean we will pull out. We will look at a number of options," Nxasana said.

Vodacom said last week it was considering a joint bid for Vmobile with Britain's Virgin Group. A source close to Vmobile said the Nigerian firm considered the $8.05 per share bid on Friday. Telkom declined to comment on Monday.

Telkom is also looking at other possible acquisitions and was prioritising Kenya, Tanzania and the Democratic Republic of Congo -- countries where Vodacom already has a foothold.

Vodacom increased annual earnings before interest, tax, depreciation and amortisation by 23.6 percent to 9.6 billion rand, the firm said on Monday. Revenue grew 19.5 percent to 27.3 billion rand.

Vodacom, which is 50 percent owned by Telkom, reported separately a 38 percent jump in subscribers to 15.5 million at the end of March, but said monthly average revenue per user (ARPU) in South Africa fell to 163 rand from 177 rand. Manwhile, Telkom’s fixed access lines in service remained unchanged at 4.8 million subscribers but ADSL subscribers jumped 188% to 58,532.

(SOURCE: Reuters SA)

BID FOR ECONET'S NIGERIAN FIRM HITS MORE SNAGS

The proposed joint offer by Vodacom South Africa and UK's Virgin Mobile to take over a majority stake in the Nigerian mobile firm, Vee Mobile (formerly Econet Wireless), may face further hurdles in addition to the legal challenge by Econet.

This follows reports that some shareholders are beginning to question the motive behind the proposed purchase of the company by the two investors.

Media reports in Nigeria on Wednesday said some shareholders of Vee Mobile, set up by Econet in August 2001, feel that the bid by Virgin and Vodacom may not be in the best interests of the company in which Econet Wireless Limited is claiming pre-emptive rights to increase its stake in Vee Mobile.

One of the shareholders, who was not named, was quoted as saying that the joint bid by the "two strange bedfellows smells of conspiracy which may not be in our interest to move the company forward".

The shareholders believe that there is considerable value in the business and that shareholders should explore other opportunities to realise maximum benefit from any investment by an outside investor. Vodacom and Virgin announced late last week that they had formed a consortium to bid for US$750 million to buy a 51 percent stake in Vee Mobile, departing from their original separate bids to acquire the company currently embroiled in a shareholder dispute with Econet.

The dispute, which was originally referred to the Paris-based Permanent Court of Arbitration (PAC), has since been referred back to the Federal High Court of Nigeria, which is expected to convene an arbitration panel to hear the case.

Through its founder, Strive Masiyiwa, Econet is arguing that it has pre-emptive rights to acquire a larger stake in the firm. The company is also arguing that it owns 5 percent of the company and is contesting the decision by the shareholders and directors to allow outside investors to take a larger stake in the company without giving it first choice of refusal.

Econet this week issued a statement saying that its lawyers have already sent the directors of Vee Mobile formal notification that they would be cited for contempt of court if they attempt to sell any shares in the company before the arbitration process has been completed.

A spokesman said any reported negotiation or offer to sell shares was a flagrant violation of a court injunction issued on January 10 2005, which ordered Vee Mobile to refrain from taking any measures that would prejudice the rights of Econet.

He said the formal notification served on the Nigerian directors of Vee Mobile, known as "Form 48", was sent following media reports that the company was negotiating with Virgin and Vodacom to sell shares in the company, a spokesman said in a statement from Johannesburg.

(SOURCE: http://www.fingaz.co.zw/fingaz/2005/June/June9/8674.shtml)

SALES OF TELECOMMUNICATION SECTOR IN MOROCCO TRIPLED

The sales volume of the telecommunications sector has increased three folds between 1998 and 2004, and it currently represents 5pc of the GDP, said Abdeslam Ahizoune CEO of Maroc Telecom.

The development of telecommunications in Morocco is the result of multiple reforms ushered in the sector, he said on Tuesday, at a conference themed "Maroc Telecom: a national champion."

Maroc Telecom, he said, is the "first operator in the Maghreb and second in Africa. "It is the first investor in Morocco with 3 billion Dhs per year (around $333 millions)," Ahizoune noted, saying the telephone operator provides services to 7 million customers.

Maroc Telecom, which is a main shareholder in Mauritel (Mauritania), intends to explore the European market given the presence of a large Moroccan community that has specific needs in telecommunications, he went on.

He added that the operator contributes to job generation and that Morocco hosts at present half outsourced call centers of France that have created 10,000 jobs.

(SOURCE: http://www.arabicnews.com/ansub/Daily/Day/050609/2005060930.html)

ZIMBABWE'S HARD-UP TELEACCESS COURTS NSSA

FIXED telephone network company, TeleAccess, whose private placement offer was supposed to have closed last Friday, is reported to be frantically courting the National Social Security Authority (NSSA) for a $150 billion capital injection.

In the clearest sign yet that the $150 billion TeleAccess private placement - which opened on May 9 - might not have succeeded, the company is reported to be pinning its hopes on NSSA, which has been offered a 20 percent shareholding in the potentially lucrative telecommunications business.

The funds are expected to be channelled towards the roll-out of TeleAccess' network.

NSSA chairman Edwin Manikai confirmed that TeleAccess had made overtures to the national pensions manager - a major investor across virtually al sectors of the economy. Manikai said his board had sought clarification on the proposal before any commitment could be made.

"There are issues which are being raised and clarification is being sought. The issue is still in the boiler," said Manikai.

"We are looking at the proposal as an investment option and this means that we will release money only at a level we are comfortable with," Manikai added.

TeleAccess' stalled roll-out has forced founder Daniel Shumba to open the company up for other investors, as the financing costs of the project continue to balloon in the face of a weakening dollar and burgeoning inflation.

The private placement was expected to see Shumba's Distinguished Ownership Investments (DOI) - the majority shareholder with 98.5 percent control - and Hirider, an investment vehicle which holds the remainder of the issued TeleAccess shares, ceding a 19.96 percent interest to new investors. Hirider is an investment vehicle also linked to Shumba.

TeleAccess' bankers, CBZ, who are owed billions of dollars by the telecommunications firm, have taken 170 million preference shares in the company, held through Vulya Trading, a nominee firm created to facilitate the debt conversion. The preference shares become convertible in April 2007.

In terms of the private placement, TeleAccess will issue 500 million ordinary shares, valued at $305 billion each to the new investors. The transaction values TeleAccess at about $800 billion, with the licence being valued at $600 billion and other assets accounting for the remainder.

TeleAccess won the right to operate the country's second fixed telephonic network after the Supreme Court dismantled the state-owned Posts and Telecommunications Corporation's monopoly in 2000, following a landmark challenge by mobile phone company Econet Wireless.

(source: Financial Gazette)

IN BRIEF

- A black empowerment company has acquired a 26.67 percent stake worth R5.4 million in alternative exchanged (AltX) listed software provider - AllianceData Corporation (ADC). Bafokeng Investment Services (BIS) is a fully empowerment company owned by Peter Maema and provides IT services to customers in the Rustenburg region of the North West of South Africa. The transaction means that ADC is fully compliant with the Broad-based Black Economic Empowerment objectives of the IT Sector and Mining Sector Charters. The computer software solutions designed by ADC provide people- and asset-management solutions to the mining industry with time and attendance access control mechanism, computerised payroll systems, and biometric security. The company has also developed scaled-down versions of its computer software solutions to cater for the entry-level market. Eugene de Kok, chief executive of ADC, said the deal provided the company with an opportunity to add value to its business strategy in the Rustenburg region and other focus areas.

- South African wireless group MTN Group has dropped its legal battle to seize control of rival African operator Celtel, writing off the defence of its defeated USD2.67 billion takeover bid as a waste of time and money. Celtel shareholders accepted a far higher bid of USD3.3 billion from Kuwait’s Mobile Telecommunications Company (MTC) in a deal completed early last month. Lat week MTN’s CEO Phuthuma Nhleko said that the company had decided not to pursue the legal action it had instigated to prove a breach of contract, adding that it was now looking for other, similar opportunities, although there were ‘no specific moves in the pipeline.'

MTN Nigeria Communi-cations Limited (MTN) meanwhile has announced a pre-tax earning of N65 billion on revenue of N199 billion for the period April 1, 2004 to March 31, 2005.

SA SCARED OF MOBILE BANKING

Although South African customers now embrace Internet banking, mobile banking is still a concern. This is according to BMI-TechKnowledge analysts, who gave a South African banking briefing in Sandton on Thursday.

A recent BMI-T study found that, of SA's four million Internet users, 1.7 million use Internet banking, and about 180 000 are registered for mobile banking. However, only about a fifth of them actually use their mobile banking facilities.

“Top three choices for customers are physically going inside the bank, followed by using ATMs, and then Internet banking,” said BMI-T senior analyst, Tertia Smit.

Smit said 83% of cellphone users interviewed use their phone to SMS compared to only 4% who have used it to do mobile banking. The study also showed that 35% of respondents were unaware they could use mobile phones for banking.

“Other issues include not feeling secure about using the phone to transact, inadequate proof that the transaction has been completed, as well as difficulty in performing the banking functions with their mobile device,” said Smit.

However, Smit said certain factors could stimulate mobile banking in the future. “Some of these are higher speeds with GPRS, EDGE and 3G, improved user-friendly interfaces and functionality of devices, as well as an increase in ‘cyber-savvy' clients as the youth mature.”

She said South African banks should constantly educate customers about the benefits that come with multi-channel banking. “Some 85% of corporate businesses have also shown high levels of confidence in Internet banking and they feel secure enough to perform transactions online,” said BMI-T banking division principal analyst Althea Bacchialoni.

“Hacking is a security concern for big corporate companies but the banks' rapid response to attempts, such as the recent ‘phishing' attacks that targeted local bank customers, has helped their confidence in banks,” she said.

(SOURCE: http://www.itweb.co.za/sections/telecoms/2005/0506101139.asp?A=WAG&O=W)

IN BRIEF

- A new business to consumers (B2C & B2B) portal has been unveiled to create a meeting point between consumers and providers of services with products. The portal www.eclemo.com is a platform between sellers and buyers to either sell or buy legitimate goods on the Internet in Nigeria. The portal provides an online window for sellers to advertise their goods at no fee to thousands of people across the globe seeking for such products or services.

ERICSSON UNVEILS MOBILE TRIPLE PLAY VISION

Ericsson has unveiled its vision of a future where telephony, voice and broadcast as well as mobile and fixed-line networks have converged into a single infrastructure that gives consumers and businesses unprecedented levels of mobility and independence.

The company's vision, called "Mobile Triple Play," is underpinned by the rapid evolution of mobile technologies such as WCDMA and HSDPA. Under Mobile Triple Play, the cellphone becomes an indispensable hub connecting home and office devices and providing end-users with rich, multimedia services wherever they are.

Says Pieter van der Westhuizen, Key Account Manager, Global Account MTN, Market Unit sub-Saharan African at Ericsson, "Triple play is when we bring together telephony, Internet and broadcasted media, such as TV, in one common infrastructure. The same high bandwidth services that today are provided in fixed networks are demanded by consumers regardless of time and location - consumers want the independence that mobility offers and the same experience whether being at home, mobile or in the office."

Van der Westhuizen says that Mobile Triple Play will build on existing consumer behaviour, evident in the way that end-users make use of broadcast services and broadband connectivity. Mobile TV is already a reality in the form of broadcasted TV and on-demand TV shows that have been adapted to the mobile screen. Ericsson is currently developing mobile TV products based on 3G, both for broadcast and unicast.

The evolved version of WCDMA and HSDPA, offering mobile broadband with data rates similar to fixed broadband, will enable Mobile Triple Play in the same way as broadband technology enables triple play in the fixed network environment. Ericsson is working with leading operators in Africa to make Triple Play through mobile broadband possible for subscribers by the end of 2005

HSDPA should be launched for commercial use by the end of 2005, and trials are already underway at a number of operators worldwide. By the end of this year, the first HSDPA-enabled consumer devices, PC cards that give notebook users high-speed mobile Internet access of up to 3.6Mbps, should be widely available. HSDPA smartphones should follow in 2006.

"Ericsson's leading position in 3G and technology leadership has enabled an early advantage in HSDPA. Ericsson was the first to showcase live HSDPA over a commercial system and we further confirmed our leadership in HSDPA at the 3GSM World Congress in Cannes held earlier this year, where Ericsson demonstrated HSDPA running at speeds of 11Mbps," says van der Westhuizen.

Ericsson's IP multimedia subsystem (IMS) will form another core component of the Mobile Triple Play networks of the future. Evolution to all-IP service delivery is a natural step of both fixed and mobile communications and IMS is a key component of the long-term network evolution towards all-IP.

IMS provides a dynamic architecture in which new services can be added, expanded or removed in line with demand. It works across multiple fixed and wireless links, and provides a control layer between the transport and services layers, allowing end users to initiate multiple services from within a single communication session.

“Ericsson's mobile softswitch solution is the first step on the way towards an all IP-core network. By introducing mobile softswitch the operators can evolve smoothly towards IMS and all-IP while protecting their investments and cutting operating expenses by half,” says van der Westhuizen.

EVENTS

NIGERIA COMPUTER SOCIETY

8th International Conference & AGM
June 14 -17 2005, Hotel Presidential, Port Harcourt
ICT Capacity Building: The Future of Nigeria's Economic Growth [ICABUILD]
For more information: exesec@ncs.nig.org

THETHA - THE SANGONeT ICT DISCUSSION FORUM

The World Summit on the Information Society (WSIS) comprises two phases. The first phase took place in Geneva, Switzerland, from 10-12 December 2003, where 175 countries adopted a Declaration of Principles and Plan of Action. The second phase will take place in Tunis, Tunisia, from 16-18 November 2005.

The Summit is an important event, symbolising the recognition by the global community that ICTs can play a major role in social and economic development and contribute significantly towards poverty alleviation.

SANGONeT will host a Thetha forum on 29 June 2005 to provide South African civil society organisations (CSOs) with an opportunity to reflect on the focus and objectives of WSIS and related processes. It will also provide a platform to discuss the position of the South African government and civil society in this regard. A similar meeting will be held in Cape Town during July 2005.

The first WSIS Thetha will be held on Wednesday, 29 June 2005 (09h00-16h00) at the Parktonian Hotel, 120 De Korte Street, Braamfontein.

If you are interested in participating in this Thetha, please contact Refilwe Rakhibane or Sandra Roberts at SANGONeT before 27 June 2005: Tel: (011) 403-4935 / Fax: (011) 403-0130

E-mail: thetha@sangonet.org.za / sandra@sangonet.org.za

Participation in the Thetha is free of charge.

JOBS AND OPPORTUNITIES

RESIDENT POLICY AND REGULATORY ADVISOR

The World Bank Group (WBG) is seeking to recruit a Resident Policy and Regulatory Advisor as part of its Technical Assistance to the NEPAD e-Africa Commission.

Complete applications and queries to be submitted by e-mail to Ms. Cecile Thioro Niang and Dr. Philippe Kuhutama Mawoko before Tuesday, 14 June 2005:

Ms. Cecile Thioro Niang, The World Bank, e-mail: cniang@worldbank.org

Dr. Philippe K.Mawoko, NEPAD e-Africa Commission, e-mail: pmawoko@eafricacommission.org