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ISSUE NO 281

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FIRST REPORT ON MOBILE HANDSETS IN NIGERIA IDENTIFIES USER PREFERENCES

As far as we know, no-one thus far has produced a publicly available report looking at the state of the mobile handset market in any Sub-Saharan African country: what their users feel about them; how many they have; and what brands they use and why. e-Shekels has put together a sample of 20,000 users using Nigerian omnibus surveys which give the results some robustness in the context of a country with such a large population. It has also surveyed non-phone users and mobile phone distributors.

As with technologies elsewhere in Africa, the growth of mobiles appears in large part to have been driven by the comparatively young (18-34) and its users are predominantly (67%) though not exclusively male. Interestingly, younger women are more likely to have a phone and therefore usage will increase as existing users grow older. Also women are more likely to download polyphonic ringtones than men. Reflecting their age, 74% of all those surveyed earn under N25,000 a year.

Because of the unreliability of networks, 23% of the sample own two or more handsets for different networks. The sight of individuals pulling out another handset when one network is congested is a familiar sight. 1% claim to own a staggering four handsets which must require extremely large pockets. So although there are 13 million mobile subscribers, they may only be 9.1 million users when one allows for this multiple ownership. If network capacity is increased some of this handset ownership will disappear but its loss will be more than balanced by overall growth.

Those questioned for the survey were asked to rate their usage and the status of a number of different devices including ranking the mobile phone alongside radio, TV, the Internet and newspapers. The interesting thing about the responses is that the mobile phone was ranked as most used by half of those interviewed.

In a society where television and newspapers are a minority media, the mobile has become almost a form of media in itself with people using it to keep ahead of what is happening in their world. 33% of respondents would be interested in news delivered to their phone and at least 20% were interested in sport. And at least half of the sample were willing to pay for content of this kind to be delivered to their mobile phone.

Again perhaps reflecting the age of the sample size, the reasons given for having a mobile are largely about keeping informed, saving time and money and organising their social life. Only 4% of the sample saw the mobile as a device that would help them earn more income. No doubt this proportion will increase as the current generation of mobile owners grows older.

Nigeria, like the rest of Africa, is a price-driven market. Over 60% of mobile distributors surveyed put cheapness as the factor that made people buy a phone. After this but all at a much lower level came ruggedness, clarity of calls, elegance and simplicity.

15% of the mobile phone owners in sample were PC owners which is larger than the national average of 7%. They are also owners of a wide range of home electronics including video or DVD; a digital camera and a PDA. Around 15% were subscribers to DSTV.

The two main barriers to mobile phone growth amongst non-users are the linked factors of insufficient income (41%) and the high price of handsets (27%). This finding is in line with research by the global GSM Association that pinpointed the cost of handsets as the single biggest obstacle to affordability in emerging markets. It is working with handset manufacturers (particularly Motorola) to pioneer what will initial be a US$50 handset that over time as demand increases will fall to US$40.

Not surprisingly given these cost issues, 80% of distribution in Nigeria is in the so-called “grey market” where dealers seek to maximise price reductions. The report’s authors’ have estimated that for every appointed dealer there are 30 grey market dealers. Whilst such an anarchic market structure often makes it frustrating for manufacturers in this field to increase sales, it does ensure that competition brings down prices. Doubtless many of the phones sold are either secondhand and refurbished and their sellers have mostly avoided paying import tariffs.

For a full contents list and to order this report go to: http://www.balancingact-africa.com/mobile.html

MUGABE NEPHEW IN TELECEL CONTRACTS WRANGLE

Makonde MP and President Robert Mugabe's nephew, Leo Mugabe, is involved in a multi-billion-dollar bid to force a company hired by cellphone network operator Telecel to cancel its contract and cede it to his engineering firm, IEG, documents reveal.

The company, FM Eiving, which has been building base-station containers for Telecel, was two months ago forced to pay a company called Rigger Holdings about Z$5 billion as "compensation" for allegedly stealing its designs. Oracle Business Intelligence

Documents to hand show that Mugabe has been pushing Telecel to cancel a contract awarded to FM Eiving and give it to his IEG or to a friendly company, Rigger Holdings.

FM Eiving has since instructed its lawyer Irikidzai Mapulala of Mapulala & Motsi to recover the "compensation" money paid to Rigger. The company has also refused to surrender its contract and is building more base-stations for Telecel. Mapulala yesterday confirmed moves to recover the money but could not give details on the amount of the claim saying that was confidential.

Mugabe last week denied any involvement in the alleged arm-twisting, saying his role as a technical partner and director of Telecel was to make sure the two parties did not end up in court as this would delay the network's roll-out programme. Asked if any money was paid to him, Mugabe said: "There is nothing like that. We did not want Rigger to sue FM Eiving as this would have delayed the roll-out plan."

There appears to be a close relationship between Rigger and IEG as Mugabe has written to Telecel raising questions as to why Rigger was not awarded the contract. The documents also show that one Cosmas Gwede is listed as vice chairman of IEG while he is also a director of Rigger.

Officials at FM Eiving last week confirmed that they had paid "about" Z$5 billion to Rigger after the company in August demanded Z$8 billion as compensation for what it alleged was "loss of profit and plagiarisation (sic) of our intellectual property". The money was withdrawn from Premier Bank, Samora Machel branch.

Rigger Holdings contends that FM Eiving stole its designs and used them to execute the Telecel contract. Officials at FM Eiving yesterday said that was the pretext used to scare them into surrendering money to Rigger. They said there was no way they could have stolen designs as they built base-stations as per specifications stipulated by the network operator.

"We have been doing this job since 1998. How can we be accused of stealing designs this year?" an official said.

But Mugabe in letters to Telecel acting managing director Rex Chibesa last month did not hide his interest in the project. In a letter dated October 4, Mugabe said as a local technical partner of Telecel, he must be involved in technical evaluation and "execution of such project works which can be carried out in-house by IEG as well as in selection, appointment and supervision of other specialist local contractors for outsourced project works".

He insisted on Telecel availing to IEG, through its representative Gwede, all information on historical and future technical work.

"We are particularly disturbed by the unprofessional manner in which the Telecel Zimbabwe January 2004 tender for supply and installation of civil works for new base-stations was awarded to FM Eiving at the expense of Rigger Holdings," said Mugabe.

Mugabe in an interview yesterday denied that IEG wanted to take over the FM Eiving contract. However, minutes of a meeting held on September 30, attended by Gwede, Chibesa and Telecel technical director Samuel Duncan, show that Mugabe had intervened in the FM Eiving/Rigger conflict and that FM Eiving had agreed to "cede the outstanding works" (on base-stations) to IEG.

Gwede is quoted in the minutes as having said Telecel would issue a variation order to the FM Eiving contract to effect the changes. Duncan said FM Eiving had not indicated to Telecel that they had reached such an understanding with IEG as they had procured material to execute the contract, according to the minutes.

Contacted to comment on his involvement in both IEG and Rigger and whether FM Eiving had been paid the "compensation", Gwede at first professed ignorance of the whole issue. When told of a letter bearing his signature, he could only say: "Those are confidential documents you are holding. Where did you get those letters from? I have no comment to make." Chibesa refused to comment on the issue.

(SOURCE: Zimbabwe Independent)

NIGERIAN COURT DECISION LEAVES VODACOM/VIRGIN BID FOR VEE MOBILE FROZEN

Last week's Federal High Court decision that it has the jurisdiction to appoint arbitrators in the dispute between shareholders of Vee Mobile, formerly Econet Wireless Nigeria has left the joint Vodacom/Virgin offer to the company's shareholders in limbo.

A Virgin spokesman told the Financial Gazette: "We are awaiting a decision from the owners of V-Mobile over the bid, which has still not been forthcoming, and we will be considering our position over the next few weeks." Virgin has said it would make an announcement soon on the matter, but would continue to cooperate with the South Africans for the time being.

The Nigerian Federal Court has dismissed an application by 14 of the 22 shareholders who claimed that the court could not hear the matter and should instead refer it to the State High Courts.

Econet has spent US$1 million in the case, and Masiyiwa, in describing the ruling as "a major breakthrough" says there would be no let up until his company took control of the Nigerian investment. "I will not rest until I buy the 51 percent stake in Vee Mobile," Masiyiwa said. Econet holds five percent of Vee Mobile.

The legal battle over which court had jurisdiction over the case arose after arbitrators appointed by the International Court of Arbitration (ICA) ruled that a Nigerian court, and not the ICA, should have appointed them.

The case has now been adjourned to November 23 when Econet's lawyers will press for the reinstatement of the original team of international arbitrators appointed by the ICA so as to speed up the conclusion of the two-year old dispute.

The battle for Vee Mobile partly contributed to the breakdown of Econet's joint venture with Altech in September. Masiyiwa accused Altech of secretly seeking a settlement with Vodacom, resulting in a public spat that ended with Econet buying out Altech for US$87.5 million.

Meanwhile, Kuwaiti mobile group MTC is considering making a bid for the company, according to Reuters.‘We have an interest in Africa in general and in Nigeria in particular,’ an unnamed official told Reuters. When asked if MTC was interested in Vee Networks, which trades under the brand name Vmobile, the MTC official said: ‘Possibly’.

Vee Networks is 60% owned by private investors and 40% by state-controlled investment companies. Its biggest shareholders are First Bank of Nigeria (20.1%), AKIIPOC (18.1%), Broad Communications (13.1%), Delta State Ministry of Finance (10.7%), Ibile Holdings (10.7%) and O&O Networks (10%).

(SOURCE: Financial Gazette)

UGANDA: MINISTER SAYS NEW TELECOMS POLICY SHOULD FOCUS ON INFRASTRUCTURE ROLL-OUT

The new telecommunications policy is shifting from encouraging investors to compete in provision of retail telephone services to setting up infrastructure that aims at improving services, the communications minister has said.

"In 1999, we were focusing on the need for more mobile phones. What we need now is not to license a third operator for the sake of competition but improved infrastructure," Eng John Nasasira said.

"For example MTN is putting in place an optic fibre network from Kampala to Mbarara and Uganda telecom will extend network to the Rwanda border. It is the infrastructure, which spurs development. We want the small players to provide other services," Nasasira said.

He was speaking last Tuesday at the launch of the National Information Portal at the Grand Imperial Hotel in Kampala. Nasasira said, "In Uganda, information and communications technology (ICT) is dominated by the few educated and primarily urban elite. Use of ICT requires literacy. These are formidable barriers for the large percentage of the population who are low-income earners and illiterate."He said the result would be non-use of services like the telecentres by the targeted local population.

(SOURCE: New Vision)

NIGERIAN GOVERNMENT SETS UP NEW COMPANY TO RUN ITS SAT3 FIBRE ASSETS

The Nigerian Governement has incorporated a holding company, the Nigerian Cabling and Telecoms Network Limited, to manage the international submarine cable (SAT-3) in stopping speculations that it has been sold along with Nigerian Telecommunications Limited (NITEL). A statement signed by Akinloye Oyebanji, the Special Assistant, Media and Publicity to the Communications Minister, Chief Cornelius Adebayo, said the measure became pertinent because of the controversies surrounding the issue in recent times.

According to the Minister, the new holding company is to guarantee the availability of SAT-3, as a asset to all users in the communications industry, rather than it, being the exclusive property of any private company. SAT-3 is a 15,000 kilometers high performance fibre optic cable that links Europe with South Africa and some West African countries.

NAMIBIA'S MOBILE TELECOMMUNICATIONS SIGNS N$9.6M DEAL WITH BUSINESS CONNEXION

Mobile Telecommunications Limited and Business Connexion Namibia (Pty) Ltd are proud to announce that they have signed a deal worth N$9.6 million. The deal is for the provision of an IT solution that would cover modules covering: fraud management, revenue assurance, test call generator, billing verification and quality of Service measurement. An annually renewable maintenance contract will be entered into as part of the deal agreement as well.

Mr Bengt Strenge, Managing Director of MTC commented: “This is our single largest deal with a local service provider enabling us to improve our revenue leakage and fraud management systems to world class levels. It’s a win-win situation for Namibia since we are reinvesting our profits into the local economy while improving MTC’s business performance even further.”

In response, Mr Ferdi Graupe, Managing Director of Business Connexion Namibia, said “this deal represents a vote of confidence in our ability to provide cutting-edge business solutions to demanding service providers such as MTC. We undertake to deliver on time and within the agreed quality standards which our clients have come to expect of us”.

IN BRIEF

- Pan-African operator Celtel has signed a contract with Ericsson to upgrade its mobile networks in Kenya, Uganda and Tanzania. The development has already begun in Uganda and Tanzania and is set to start in Kenya next month. Celtel currently has a customer base of around eight million in the east African region, and it hopes that the upgrade will enable it to double its customer base without experiencing any congestion problems.

TELECOMS, RATES, OFFERS AND COVERAGE

- Around 5,000 direct and indirect work posts have been created throughout the country by the Angolan mobile phone operator (Unitel) since its insertion in the local market four years ago. According to the director general of the firm, Nicolau Jorge Neto, about 4,750 work posts were acquired indirectly, created through the company's sale agents, while the remaining are direct, resulted from work contracts with the operator in diverse facilities spread across the country. Neto announced for this month, the opening of the first Southern regional delegation in the cities of Lubango (Huila), that will cover the provinces of Huila, Namibe and Cunene.

- Nigerian incumbent telco NITEL has contracted ZTE Corp to expand its fixed wireless access (FWA) CDMA2000 1x network to the north-east. The deal is the latest venture between the two companies, which have been working together since ZTE supplied the telco with the a 10,000 line trial FWA network in Maiduguri earlier this year. Under the agreement ZTE will roll out 130,000 lines in Bauchi, Plateau, Taraba, Adamawa, Gombe, Yobe and Borno.

- Orange has unveiled an SMS-based chat service for its customers in Cameroon, the Ivory Coast and Botswana, as well as France Telecom mobile customers in Senegal and Mali. Planet Chat provides SMS chat facilities across the five African markets, and to mobile users on any network in France. The service is charged at the same price as the existing national chat service in African countries, and in France it is charged at a premium SMS rate.

CITY OF JOHANNESBURG SETS UP HIGH-SPEED WIRELESS NETWORK

The City of Johannesburg (CoJ) is in the process of deploying a high-speed wireless network to connect over 500 buildings and locations throughout the metropolis, giving it a highly cost effective and reliable communications infrastructure that carries all of its critical application traffic.

With a land area of 1,644 square kilometres, the CoJ is very large when compared to other cities. With the various service delivery agencies within the city needing to communicate regularly, as well as requiring support for critical business applications, it engaged with its technology partner Sebedisana (a partnership between IBM South Africa and Masana Technologies) and Multisource Telecoms, a specialist provider of advanced technology for low-cost communication systems, for an appropriate solution to meet its needs.

According to Herklaas du Plessis, the City of Johannesburg’s Acting Director: IT (Communication Technology), the CoJ was faced with high communication costs across its wire line Wide Area Network (WAN), which connected just 170 of its buildings. “With wire line networking, the costs were preventing us from extending network connectivity to every site within the CoJ – and we only had 64 kilobit lines connecting these sites. With the SAP enterprise resource planning system, bandwidth consumption is heavy and we were experiencing poor response times on our most important business application,” he says.

Recognising the potential benefits of wireless networking as far back as 2001, du Plessis says the City invested in a two-way smart trunk radio system supplied by Multisource Telecoms, with the idea that links could be established to deliver connectivity across the whole area. However, this system was not activated due to restrictions in the Telecommunications Act which potentially rendered such a system illegal.

Investigations into the Telecommunications Act revealed that there had been no test case of the legality or otherwise of municipalities establishing their own metropolitan area networks. The relaxing of several aspects of the legislation governing the provision of communications services opened up additional possibilities for the CoJ. Du Plessis says it has emerged that the entire city limits is considered a contiguous piece of land in terms of the Telecommunications Act – which restricts the ability for any entity to ‘break out’ of its privately owned territory.

Comments du Plessis: “Ultimately, we discovered that it was legal and, given the technology available, highly feasible to deploy our own network as a self-provisioning private switched network. As such, we approached ICASA (the Independent Communications Authority of South Africa) and were awarded spectrum on which to establish such a network.”

Having overcome the legal barriers to deploying a wireless Wide Area Network, the next step for the CoJ was to source appropriate technology. Through its solution provider Sebedisana, Multisource Telecoms was identified as the technology provider of choice. As the distributor for the Alvarion product range, Multisource Telecoms, which specialises in the provision of robust and affordable wireless networks in Africa, had the ideal hardware for the creation of the network.

The network backbone is based on a full-duplex 100 megabyte microwave link which delivers a broadband wireless system to support multiple capacities, frequencies, modulation schemes and configurations for various network requirements.

Providing point to multipoint access, Multisource Telecoms supplied the Alvarion BreezeACCESS VL wireless broadband system. BreezeACCESS VL leverages state-of-the-art OFDM technology to achieve higher performance in Non-Line-of-Sight (NLOS) conditions such as congested urban landscapes, making it ideal for the CoJ’s application. In total, the complete network will consist of some 75 physical hardware units which together provide network coverage across the entire city.

The CoJ calculated that the wireless WAN installation would deliver a full return on capital investment in three months. Says du Plessis: “Despite having just 64kb links – and being restricted to connecting only a third of our buildings, the costs of these leased lines were so high that the wireless network paid for itself in terms of these cost savings in just three months!”

But that was not the only benefit.du Plessis says unprecedented response times have been achieved from the CoJ’s SAP HR system. “With the 100MB links, SAP responds so fast that some users think it isn’t working. Previously, they would wait sometimes minutes for a request to be processed on a remote server – now it happens instantly,” he says.

The significance of this wireless WAN also goes further than improving the delivery of services to the residents of Johannesburg, notes du Plessis. “We have, in effect, set a precedent for other municipalities and metropolis’s. By establishing that it is fully legal to create a wireless network that covers the city limits, we have opened the door for other regions to save time and money by avoiding paying for expensive leased lines, while also increasing their bandwidth and hence improving business services,” he says.

WANANCHI ONLINE, ISP KENYA FINALISE MERGER

Wananchi Online and ISP Kenya, have finally merged after two years of protracted negotiations. Wananchi Online Chief Executive, Njeri Rionge, said the merger would enhance the strengths of the two leading players in the local IT industry.

Rionge, however, declined to disclose the cost of the deal. Wananchi Online is a leader in the mass market, while ISP Kenya is a key player in the corporate segment.

Under the terms of the merger, the new firm is expected to be the largest Internet service provider (ISP) in the local market and would retain the name Wananchi Online Limited.

Two directors from ISP Kenya would sit on the new board. Rionge, however, said the merger would affect the current staffing levels.

She said the new firm would seek to remain lean, with skills taking centre stage in the staff re-arrangement.

The Wananchi Online boss was speaking during the signing of the merger agreement with ISP Kenya at a Nairobi hotel.

She said Wananchi Online's merger with ISP would not only increase client base, but also allow delivery of better services and additional value without losing core value of being the "people's ISP".

Wananchi Online Director in charge of strategy and business development, Joseph Mucheru, said the changing regulatory environment and increasing opportunities in the local market drove the merger deal.

(SOURCE: http://www.eastandard.net/hm_news/news.php?articleid=31983)

BURKINA FASO GOVERNMENT SEEKS TO IMPROVE PUBLIC SERVICES USING TWO-TIER STRATEGY: ONLINE AND OFFLINE

In Burkina Faso, a country with very low ICT penetration, some government services have been put online, but the lack of access by the majority of the population means that e-government must be balanced with traditional means of disseminating public information. “I applied for the job of health agent, and saw the results while searching on the civil service website before these results were broadcast on national radio,” said Marion, an aspiring civil servant, illustrating the two-tier strategy that is a necessity in Burkina Faso.

Access to advanced ICTs in Burkina Faso is very low due to infrastructure limitations and a lack of training and financing for such tools. In less developed countries like Burkina, traditional media such as print, radio and TV are still indispensable for reaching the public and must be part of the government’s information and communication strategy. Otherwise, e-government will result in “two-tier” government, with a large part of the population left with less access to government information, not more.

he perception that Burkina Faso is not totally ready for e-government extends even to DELGI, the informatics ministry responsible for the overall strategy. One official there said that Burkina is responding to outside pressure in instituting e-government: it was “an international imposition. We had to put information [online] because the Westerners did it and asked us to do the same.”

To put the Burkina Faso online presence in context, a UNDP study of 190 countries showed that 169 of them had government websites. Of these, 17 were sophisticated enough to handle electronic payments, 32 of the sites were simply a web presence with information about such things as government ministers, and 55 sites allowed people to download documents and interact with ministries by email.

The Burkina Faso government’s online presence online falls into this intermediate category. Although it is not very interactive and does not include facilities for applying for identity cards and paying taxes, for example, the sites are nevertheless helping to improve transparency and efficiency. The Ministry of Finance has published on its website various useful documents including forms and information about its operations. Mahama, a law student, says “It is easier to get an answer from a government official by email than to visit the office.”

“E-government is in an embryonic state in this country,” says Augustin Coulibaly, a senior staffer at the Ministry of Finance. Complex transactions like online payment and applying for identity require a high level of security, confidentiality, and verification of identity. At the minimum, the information online needs to be absolutely accurate and up to date, or the web site is worthless, says Coulibaly.

DELGI is responsible for putting in place a programme of modernisation of government services. It is installing a public service intranet/extranet and rolling out a national network to respond to the communication and information needs of a public administration that is undergoing a decentralisation process and that therefore requires good information links between the capital and the regions.

The Ouagadougou infrastructure consists of an Internet server allowing 32 phone connections and a dedicated line with a capacity of 512 Kb/s. This permits Internet access, hosting of the government websites, and connections between local networks. Eleven public institutions now have Internet access. The more this resource is used to deliver better quality public services, the more ICTs will be appreciated by the Burkinabè public.

(SOURCE: http://www.iconnect-online.org/Articles/iconnectarticles.2005-11-03.7946944594)

NIGERIA FORMS ALLIANCE WITH UK'S OFFICE OF FAIR TRADING TO FIGHT 419 SCAMS

The UK's Office of Fair Trading (OFT) has teamed with Nigerian officials to warn internet users of fraudulent junk email, known as Nigerian 419 scams, that attempt to con recipients into handing over cash.Although the scams have been a problem for a number of years, the partnership has just issued a statement last week saying people should be wary of emails that "ask for help in moving large sums of money in exchange for a share of the spoils".

Christine Wade, director of Consumer Regulation Enforcement for the OFT, said in a statement: "If you are targeted, recognise the 419 for what it is - an attempt to defraud you. Do not reply and do not give your personal details out. You are not about to become rich. These scams bear the hallmarks of professional criminals - use your common sense and don't become their next victim."

The scams were named '419ers' after the relevant section of the Nigerian Criminal Code. Many, but not all, originate from Nigeria and West Africa. Last month, Microsoft announced a partnership with the Nigerian government to help track down and prosecute criminals involved in the scams and other internet-based fraud originating there.

A statement from Nuhu Ribadu, the executive chairman of the Economic and Financial Crimes Commission (EFCC) of Nigeria, said: "419 and other Nigerian variants of cyber crime, have done unquantifiable damage to Nigeria's image and credibility. The government has resolved to deal a fatal blow to the cyber crime networks operating from Nigeria and the West African sub region." The EFCC said it will be monitoring cyber cafes and taking on a "significant" number of cases against fraudsters based in Nigeria. Nigeria has agreed to work with the other 26 member countries involved in anti-spam group the London Action Plan.

(SOURCE: http://software.silicon.com/security/0,39024655,39153935-2,00.htm)

LIBYA SENTENCES BLOGGER TO 18 MONTHS IN PRISON FOR CRITICISING GOVERNMENT

Libya has sentenced a blogger to 18 months in prison after he criticised the government in his online articles, according to Human Rights Watch. The jailing, which the rights group reported is one of several recent crackdowns on bloggers by authoritarian governments.

The group also confirmed that Egyptian authorities have detained a university student who had criticised the government and Islamic fundamentalism in his blog in what may be the first such case in the country.

IN BRIEF

- A Japanese car trading company has introduced a groundbreaking system where by Ugandans can buy used vehicles from Japan over the Internet. Officials of Trust Company Ltd (TCL) on Tuesday told car dealers during a briefing at Grand Imperial Hotel in Kampala that the system is the most convenient way of buying used vehicles from Japan. TCL, which is one of only three authorised used vehicle exporters in Japan, is listed on the Stock Exchange. He said some vehicles cost as low as $1,000 dollars (Shs1.8 million) or even less.

- The bureaux of Angola Press Agency (Angop) in eastern Moxico province is since now connected to the country and world through internet, following the inauguration of the system by the provincial governor, JoÆo Ernesto dos Santos "Liberdade".

- South Africa's Sentech says that it has further expanded its broadband wireless access network with Cambridge Broadband's VectaStar equipment. The network aims to offer a variety of services to government, business and residential customers. The company's goal is to provide a nationwide-accessible broadband infrastructure, with wireless technology forming a major contribution to the network.Sentech's network comprises two main service portfolios: BizNet and 'MyWireless'. The BizNet network uses Cambridge Broadband's VectaStar equipment in the 3,5GHz licensed spectrum band, and aims to provide broadband access services to business customers, both government and non-government. This network will also be used to provide services to Sita. The 'MyWireless' network is already operational, and is currently being further extended. The BizNet network was formally launched this month, with customers in Johannesburg and Cape Town.

SLOW PACE OF SA'S LEGAL SYSTEM AIDS SOFTWARE PIRACY

Antipiracy body the Business Software Alliance (BSA) plans another crackdown in SA to force companies to use legal software.

The alliance has met the trade and industry department to propose legal changes so companies being investigated for any breach of corporate governance are also assessed for software licence evasion.

Beth Scott, the BSA's vice-president for Europe, the Middle East and Africa, met the department this week to call for stricter legal measures.

The penalties for using illegal software must be greater than the cost of buying legal software, otherwise companies have no financial incentive to abide by the law.

"There are laws in place but the whole criminal and civil prosecution system in SA is too slow. It can take two years to process a case and the penalties are not enough at the end. We need faster and more efficient prosecutions and stronger penalties," she said.

One option was for police to work with tax authorities, so inspectors can investigate licence dodging as part of corporate governance probes. "No one wants to run their company illegally, but software compliancy is always number 23 on the to-do list and we'd like to see it in the top five. The perception is that nobody is hurt so it's not a serous crime," Scott said.

This month the BSA will launch a new campaign challenging companies not to take software for granted. "The software industry has spent billions of dollars in research and development to deliver tools that change how we work. For future developments we need more research, which means getting a return on their investment," said Scott.

The most common workplace piracy is when a firm buys a program and a limited number of licences, but supplies it to more users than are licensed. Counterfeit software is increasing. Some fakes are were so good that resellers charged the normal price, making large profits, but end users get no technical support.

A third form of piracy is to download unlicensed software over the internet, exposing companies to the legal risk of not holding licences.

Last year the alliance ran a campaign giving firms indemnity from prosecution if they paid the licence fees on any illegal software. A total of 215 companies reached compliance, and investigations began against 188 others accused of using unlicensed software. Three out-of-court settlements were reported, with Sainsbury Design paying R40000, Multisource Telecoms paying R70000 and Retail Decisions paying R10000.

Research by International Data Corporation accused SA of having a 37% piracy rate, so more than a third of software used by local companies is unlicensed or counterfeit. But The Economist has questioned those statistics, doubting the "jaw-dropping figures" and challenging an assumption that the software industry was losing "a staggering $33bn" a year.

The Economist argued the crime is not as costly as the BSA portrayed, as its figures relied on "sample data that may not be representative, assumptions about the average amount of software on PCs and, for some countries, guesses rather than hard data".

Scott defended the research. "We are not saying that 37% of software on every computer in SA is illegal or that 37% of businesses are running it illegally. But these estimates are based on PC usage and software distribution," she said. "Without manually checking every computer you have to build in some intelligence. Even if there is a 5% to 10% error margin you are still talking about a really significant loss to the industry and the local economy."

For every R1 lost through piracy, up to R2 is lost for local resellers and technicians who are missing out on revenue and on job creation, and through tax evasion on legitimate sales.

(SOURCE: Business Day)

UGANDA SOFWARE INDUSTRY GROWS THROUGH MICROSOFT USER GROUP

A Dot NET user group was launched in Kampala recently. The group, supported by the East African arm of Microsoft but run as a separate and independent entity, brings together professional software developers, students and hobbyists to share knowledge on the Microsoft .NET software development platform.

Over 65 people – including key speakers from www.africadotnet.org – gathered at Makerere University for the inaugural session. “The software industry in Uganda has been longing for a forum where developers could associate and share knowledge through interaction,” says Wilson Kutegeka, the leader of the Uganda Dot NET user group. “We hope this will lead to the ability to positively impact the local economy by exporting the skills of the people developed through the user groups.”

“These groups are an excellent, inexpensive way for people to receive technical content, education and to meet with their peers to get more out of our products, technologies and resources,” explains Lee Mungai, the developer evangelist for West, East and Central Africa at Microsoft. “They also help correct the perception that people cannot follow careers in software development in Uganda – or, indeed, Africa as a whole. By supporting our user groups with software, books and other resources, we hope to help raise skills levels and provide people with a viable opportunity to find work in the local software development arena.” The news comes ahead of the launch of a series of software solutions that developers can use to create software applications for business. The launch of SQL Server 2005, Visual Studio and BizTalk Server in Uganda is slated for early November.

Having development skills here in Uganda is also of significant benefit to the country’s private and public sector. Tapping into local skills not only demonstrates confidence in the local market. It is also far more cost-effective than flying in experts from South Africa, Europe or further afield.

“It’s common knowledge that the software industry is big business worldwide. Companies develop applications, resell them commercially and generate solid revenues. This is not happening a great deal in Africa,” says Mungai. “However, through the user groups, local software vendors can get connected to Microsoft and receive support in terms of assisting with development and then marketing the final products around the region. Our role here is to simply support the creation of a local, regional and continent-wide software industry.”

The launch in Uganda is an extension of a programme kicked off in March last year when the first African user group was formed in Kenya. Initially, it had a membership of around 20 people. One year later, more than 500 people had joined.

Testament to its success was the recent Most Valuable Professional (MVP) award presented to Edgar Okioga, a software developer, database & analyst working for the UNDP in Kenya. The MVP programme celebrates those community members who provide invaluable expertise that enriches the experience had by the people in these Microsoft technical communities.Okioga was recognised for his proficiency in the Microsoft programming language – known as “Visual Basic” – as well as his passion, inspiration and willingness to help other African software develop¬ers. He is now one of only two developers in West, East & Central Africa to be recognised as an MVP.

“Overall, we are very keen to support the formation of this user group in Uganda. While we play a hands-off role, it provides us with an opportunity to connect with the people that really understand our products and are working with them at deep levels,” said Mungai. “This gives us the feedback we need to make those products more efficient. This, in turn, can only deliver more value to existing and potential customer organizations in Kampala and beyond.”

SOUTH AFRICA - BIGGEST SEARCH ENGINE TO LAUNCH THIS MONTH

Dissatisfied with the quality of current South African search engines, Alistair Carruthers has built Jonga which he hopes will become the first stop for South African Web searches when it launches later this month. "Jonga is the result of over two years of development in my spare time as a pet project. It has evolved into something that was never intended to be a commercial or revenue generating venture, but purely an exercise to see whether or not I could create a search engine that would become the first place Internet users would go if they wanted to search for anything South African and also be able to complete with other existing commercial search engine-related sites," says Carruthers. Carruthers, an information systems manager at a large South African transport group, started building Jonga two years ago in his spare time. At launch, Carruthers expects Jonga to be the biggest SA search engine, with 24 million Web pages covering over 85 000 South African websites. He's competing with the golden oldie of South African search engines, Ananzi, as well as Aardvark and the latest addition to the family, Funnel. And let's not forget the all-powerful Google, which recently launched a localised version of its search engine.

Key to the engine is a featured content panel, which displays content applicable to a specific search, which Carruthers refers to as “targeted results”.

"For example, if you had to search for 'tonight on MNet' or 'Sunday night on MNet at 8pm', Jonga will actually show you what is on MNet at what time and what the programme is about, with no need to sift through pages of results in the hope that you may find what you are looking for."

Similarly, a search for “3 bedrooms 2 bathrooms Sunninghill” will display thumbnails of properties that meet that criteria. “These types of searches are possible for a variety of different searches covering everything from South African news through to job listings and travel and accommodation,” says Carruthers.

The targeted results are not paid for - Carruthers grabs the data from South African Web sites, including sites like Pam Golding, Kalahari.net, Private Property and Tectonic through “XML interfaces or advanced custom written content recognition utilities based on already spidered pages - either an RSS feed or custom-made feed for Jonga by the website”. One of his biggest stumbling blocks (second only to time constraints) has been to get site administrators to provide the content he needs for his targeted search feature. Says Carruthers: “Hopefully the response once Jonga has launched will result in more websites being receptive in enhancing Jonga's search capabilities.”

The interface looks a bit like A9, with some of the cleanness of Google. The oversized icons are and fonts are somewhat reminiscent of MSN's new search engine. The search history bar at the top is pretty useful, and the targeted results are well-organised. Other nifty features include a dictionary lookup, a calculator and a currency converter.

Jonga is built on an interesting mix of open source and proprietary software. “These days there is plenty of hype surrounding the use of open source versus commercial development tools in terms of cost and functionality. I like to think of Jonga as a hybrid development using the best of open source and commercial tools. As such Jonga is developed using a combination of Microsoft ASP/VB.NET on a Microsoft Windows Server platform and open source tools, which mainly involves Lucene hosted on a Fedora Linux platform.”

Lucene is an open-source database from the Apache stable. Dissatisfied with the free text search speeds of Microsoft SQL and Oracle, he moved to a .Net implementation of Lucene. After that it was a short jump to Fedora Core 3, which he says has much less overhead than Lucene running on a Microsoft platform.

“Lucene is a truly amazing open source project and Java-based library. In a nutshell it provides lightning fast results to full-text based queries which in my humble opinion cannot be matched by any commercially available product that I've been exposed to. I would not hesitate to recommend Lucene to anyone who requires high speed searching capabilities on extremely large amounts of text data.”

Although a firm date has not been set, Jonga is set to launch this month and is “currently only accessible to various different people who have displayed interest, mostly friends, colleagues and surprisingly a lot of Web masters who have noted Jonga's visits to their websites”. Currently, www.tectonic.co.za is the first result for a search on “tectonic”, which means that Jonga is obviously superior to Google, where we only make position number two.

(SOURCE: http://www.tectonic.co.za/view.php?id=688&s=news)

HP SIGNS CONTRACT WITH CAIRO BANK FOR 24/7 SERVICE BACK-UP

HP has recently been appointed by Cairo Bank to upgrade its IT system to ensure 24x7 oneline service availability through multi-channel call centre, ensuring better service availability and effectiveness. HPAs part of the deal, HP will install and implement an integrated solution for a contact centre based on Cisco's IP telephony infrastructure.

"This project will be beneficial to Cairo Bank as it will drastically improve staff effectiveness, reduce costs and build on previous investments in Cisco products. This suite of solutions will integrate with existing systems to enable Cairo Bank to migrate to full IP communications and protect their technology investments," he added.

"As a global technology leader with strong local presence and as the preferred partner for Cisco IPCC in Egypt, HP will assist Cairo Bank to reduce IT costs and target a wider customer reach. They have a proven track record in delivering end to end solutions to meet our specialized requirements and we value that experience and local knowledge," said Gamil Salem, general Manager and Member of the High Executive committee Cairo Bank.

The solution will be implemented in a phased approach whereby in Phase 1 the IP IVR functionality will be implemented, whilst in Phase 2 the components of the contact centre will be implemented.

Cisco IP communications is a complete enterprise-class system, enabled by Cisco AVVID (Architecture for Voice, Video and Integrated data) that securely integrates voice, video ad other collaborative data applications into intelligent network communications solutions. This system allows unified communications, rich-media conferencing, IP video broadcasting and customer contact solutions, which results in a highly effective and collaborative business environment. Cisco IP communications reduces the cost and complexity associated with managing multiple and remote sites, meet stringent requirements and provide optimal availability and security when deployed as part of a converged network.

(source: Al Bawaba: www.albawaba.com)

IN BRIEF

- The Egyptian Ministry of Communication and Information Technology (MCIT) has selected a comprehensive Juniper Networks routing and security solution to build a nationwide IPv6 network for the Egyptian Universities Network (EUN) and National Research Centers. MCIT is deploying a range of Juniper Networks’ routing, integrated firewall/VPN (virtual private network) and intrusion prevention platforms to create a secure and assured IPv6 network. The network will provide high-speed, secure Internet access and interconnectivity to 26 university and research centers throughout Egypt and will also connect users to the Internet2 community. This is the first native IPv6 network in the region and the first major deployment for Juniper in the Education sector in the Middle East.

- Nigerian computer maker, Omatek Computers, is unloadingselling its 421D 2 plasma televisions.

- Transnet and SAA have renewed their Ariba procurement software support and maintenance agreements with arivia.kom in a deal worth a total of R6.7 million. Transnet and SAA have contracted arivia.kom until March 2006.

MTN BUYS 44% of BOTSWANA'S MASCOM

The rumour we reported last week turned out to be true. Acquisitive African mobile operator MTN has bought an effective 44% holding in Botswana’s largest mobile company, Mascom Wireless Botswana Ltd. According to the South African-based MTN, the deal will cost it around US$D128 million. Mascom has a market share of 70% in Botswana and a reported 440,000 subscribers.

In June of this year the cash-rich MTN informed the South African Stock Exchange of its intention to buy a 51% stake in Ivory Coast’s Loteny Telecom (known as Telecel Cote d'Ivoire); it also bought out the entire share capital of Zambia’s Telecel Zambia. The company has yet to comment on press speculation linking it with Iran, where it is believed by some that it may be invited to take over the mobile company set up by Turkcell.

Telecel Cote d'Ivoire has around 800,000 mobile customers and a market share of 46% and MTN’s purchase has already been cleared by the government of the Ivory Coast. The company’s acquisition in Zambia will not be so straight-forward and is subject to regulatory and competition authorities’ approval. MTN claims to be the largest mobile operator in Africa, with operations in Nigeria, Cameroon, South Africa, Uganda, Rwanda and Swaziland.

The operator has made no secret of the fact that it wants to become the developing world’s leading mobile phone company and says it plans to use the revenues it is generating in its largest markets: South Africa and Nigeria, to fund its expansion. However, it is being challenged by Kuwait’s MTC (among others), which recently bought Celtel, Africa’s third-ranked operator.

(SOURCE: http://www.bwcs.com/)

INTERNATIONAL INVESTORS DO NOT UNDERSTAND AFRICAN TELECOMS MARKETS

Investment analysts need more education about the opportunities in Africa's telecommunications sector, because potentially profitable projects are not getting the funding they deserve.

Fund managers do not recognise the pent-up demand for telecommunications in the continent nor understand the timeline between making an investment and reaping the return, says Gillian Marcelle, the principal consultant for Technology for Development.

Even local fund managers need educating about the opportunities in neighbouring countries, Marcelle says.

"The financial markets still don't understand the industry, so entrepreneurs going to them with fundable proposals are being turned down."

She cites MTN as an example, as the operator struggled for 18 months to conquer Nigeria because investment funds were reluctant to support its venture.

"The financial markets were worried that entering Nigeria was not a wise decision because they didn't do their homework properly on the potential for the market," she says.

MTN Nigeria has now become hugely profitable, and the players who measured the risks have reaped the rewards.

Marcelle, a member of the International Telecommunications Union, was addressing a business forum hosted by the research house Forge Ahead last week.

Local capital markets also need to be stimulated so African operators can win local funding for their expansion rather than depend on foreign currency loans. "It's always better to have a local source of finance so your partner knows and understands where the challenges and opportunities are," she says.

Local capital also needs to play a greater role because of a change in the way foreign investors are treating Africa. Most European operators are shy of emerging markets and will not invest in Africa. And the World Bank is now funding technology education, rather than infrastructure roll-outs, as it believes that market forces or the privatisation of state assets should stimulate private sector investments.

Yet private investors naturally focus on wealthier areas where they can generate a 25% return on investment, Marcelle says.

That means too little is being spent on supplying basic infrastructure to remote areas, or on rolling out broadband technologies, she says.

"Foreign support is going to take a long time to come. Capital is scarce, so when entrepreneurs are prepared to take risks they don't have adequate access to capital."

Local lenders must become more sophisticated so African entrepreneurs are not starved of the funds they need and can negotiate favourable terms for equity and debt financing, she says.

Despite phenomenal growth in the cellphone industry, sub-Saharan Africa still accounts for just 1% of global telecoms investments. Of $220bn invested in telecoms in 2003, under $3bn was in Africa.

The sector has high growth potential, as the majority of Africans still have no access to telecommunications. For investors who know how to assess the risks and rewards, the potential rewards are matched only by diamonds and other mineral resources, Marcelle says.

(SOURCE: Business Day)

CORRECTIONS: ISSUE 280 - VARIOUS LESOTHO ARTICLES

The company we named as Telkom Lesotho should have been Telecom Lesotho. The rate that read R57 should have have read R0.57. The Lekomo Flexi product is baesed on a pure GSM service. Apologies. Speed of turnaround allowed these errors to creep in.

UGANDA HOMEPAGES LAUNCHES FIRST OFFICIAL NATIONAL PORTAL

Uganda has opened its first official national portal offering comprehensive information about Uganda, the ugandaweb.co.ug, writes Balancing Act's Uganda correspondent Esther Nakkazi. The portal can also be found at domain names ugandaweb.info, ugandaweb.net and ugandaweb.org.

The Uganda web portal will be used as a point that brings all information to one point at a national level. “This is a gateway to Uganda’s information. It is a site that will bring all information to one point at a national level. Its overall sustainability depends on the end users and local ownership,” said the Minister of Works, Housing and Communication, John Nasasira.

The portal has small news clips on the latest news in the country and allows for glimpses of videos, which show what is happening in Uganda including a virtual tour of Parliament, Kampala, and all Uganda’s national parks. It also has an audio section with traditional songs from various parts of Uganda and a photo gallery portraying the pearl of Africa.

The portal links to individual agencies, government websites, district websites and a directory of businesses in Uganda. “When you create a portal there are items that you want people to read and access information from so it should be functioning. There should also be things that keep bringing readers back to the portal,” said Edward Balidawa, the Managing Director Uganda Homepages.

Uganda Homepages is the company that won the contact to develop the national portal. Uganda Communications Commission (UCC) is supporting this initiative. However, Balidawa said that although they would have wanted to establish ugandaweb.com, as another of the alternative domain names it was bought by a Ugandan in America who is selling at $5,000 to government.

SA'S CELLPHONE BANK WIZZIT AIMS TO BREAK-EVEN WITH 300,000 CUSTOMERS MID NEXT YEAR

SA's cellphone bank Wizzit hopes to break even by the middle of next year and aims to have about 300,000 customers within three years, the bank said. Wizzit, which went live with a test phase a year ago ahead of its official launch in April, said it had processed 180,000 transactions to date. Although it could not give customer numbers, it said it would move into profitability with 100000 customers.

"You need the transaction volumes, and that's our drive out there. If more people do more transactions, it cuts the break-even point," said deputy chairman Charles Rowlinson. Rowlinson said it had taken three years to bring Wizzit to market. The bank operates as a division of The South African Bank of Athens. It is 30% owned by the National Council of Trade Unions, which has 23 affiliate unions representing about 500,000 members.

Wizzit's entry into the market had been kept intentionally low key, Rowlinson said. "Our strategy was that we would rather put money into people than billboards," he said. Rowlinson said instead of investing in expensive advertising campaigns, the group used industrial theatre in communities to market itself. It had a team of about 1400 WizzKids, who were trained to open bank accounts. WizzKids were deployed in communities to sign up customers. A further 50 staff members were employed at the head office and call centre. Rowlinson said all staff were previously unemployed.

Chief operating officer Brian Richardson said the group had also been very selective with its branding to ensure Wizzit was not stigmatised as a poor people's product. Richardson said a lack of permanent branches was a slight drawback, but Wizzit had visibility in communities through portable branches.

Although Wizzit operates in the same segment of the market as the low-cost Mzansi account, which was launched by the four big banks and PostBank in October last year, Richardson said Wizzit offered a full banking service, while Mzansi did not yet offer debit orders.

Apart from the 13-million unbanked South Africans, Rowlinson said Wizzit was also targeting the "underbanked" market, where customers use bank accounts only to receive and draw their salaries. "We try to encourage people to use the account more as it can improve their lives," Rowlinson said.

An estimated R12bn was transferred by migrant labourers around the country each year, Richardson said. Most of this was done through informal means, including taxi drivers, at a large cost. Richardson said transferring money using a Wizzit account only cost R2.99. "Our drive is to bring affordable banking to the unbanked," Rowlinson said.

(SOURCE: Business Day)

IN BRIEF

-   Mobile phones will allow texts to be sent out telling people about HIV/AIDS. Nine million young people in Nigeria are to be sent text messages to raise awareness about HIV/Aids. Unicef is aiming to take advantage of the surge in mobile phone use in Nigeria over the last six years.

- The Government of the Federal Republic of Germany has renewed its support of the Development Gateway Foundation with a pledge of $5 million over the next three years. This is Germany's second round of financing for the Development Gateway, whose mission is to put the Internet to work to improve the lives of people in developing countries.The Development Gateway's services include online public procurementinformation platforms, aid information management tools, e-government grant management, global online knowledge-sharing communities and support of an extensive network of local enterprises providing web-related services for local development needs.

PEOPLE INTERVIEW

MARTIN JARROLD OF GVF ON CHANGES IN THE WEST AFRICAN SATELLITE MARKET

Q: What have the trends been regarding the adoption of Satellite communication solutions in West Africa?

One quite astounding statistic to begin with, though not relevant to West Africa exclusively, but rather to the entire continent, is the fact that twenty full 36MHz satellite transponders on satellites in GEO orbit over Africa are dedicated to GSM (cellular) traffic, either for the international trunking of calls around the world, or for backhauling GSM traffic into the local PSTN (Public Switched Telephone Network). West Africa - by the very nature of the size of the mobile telecoms markets in countires like Nigeria - is responsible for a significant proportion of this satellite transponder demand.  Though not an enormous amount of transponder capacity, compared to that which is over Africa as a whole (see remark below about the Ku-band coverage map), this nevertheless represents an important business and revenue stream for the satellite operators.

The GSM sector is only one example of telecommunications platforms/technologies that have in some large measure become reliant on satellite to provide satellite-terrestrial hybrid, end-to-end, communications solutions.  Other include WiFi, and will increasingly come to include WiMax.

As well as these rather more recent developments, the West African region has a long history of using satellite connectivity, largely because of the other types of industries that predominate in the various national economies of the region.  Most particularly, oil & gas exploration and extraction. This sector is a prime example of an industry which has shown an evolving need for an ever more sophisticated range of communications solutions via satellite.

In term of its legacy needs (e.g. the connection of head offices to remote sites, for telephone, fax, and basic data services) only satellite could usually provide a solution, and where alternatives might have been available they were usually, unreliable, less cost-effective, and required coordination between a range of different providers, whereas with satellite, a single, turnkey, off-the-shelf solution from a single provider could be employed via a single satellite footprint.  More recently, as the data demands of oil & gas exploration have increased, and as companies have increasingly turned to videoconferencing (rather than having executives expensively jetting around the globe trying to reach sometimes very inaccessible places) for internal and external corporate meetings, the demand for bandwidth has greatly increased, and only satellite can deliver this bandwidth over the region as a whole, either in C-band, and increasingly in Ku-band via powerful modern satellites.  Ku-band satellite connectivity provides such clear advantages as smaller, and therefore cheaper, antennas.  In Africa cost is often a key consideration, if not the cost of the equipment itself, but the costs associated with transportation for installation in remote and difficult, inaccessible, places.

In any event, the cost of all satellite ground segment (the earth station, or VSAT equipment) is declining.Other industries, for example distribution, and even more so the financial services sector, illustrate similar needs and demands for reliable,cost-effective, connectivity. This is why at NewCom WAFSAT we have many speakers from exactly those satellite end-user industry sectors.

Q: What has driven the rapid adoption of these solutions by corporate and public sector? Why are governments throughout the region helping facilitate the deployment of IP-based satellite services?

It is now widely recognised that access to information and knowledge through affordable communications represents a significant opportunity for social and economic development, for regional cooperation and integration, and for increasing the participation of people in the emerging global information society. Addressing deficiencies in access to low-cost communication services is therefore now regarded as an urgent imperative for improving the quality of life in African communities, especially in remote and rural areas where the bulk of the population still resides.

Africa is fragmented into many small national markets, particularly so in West Africa, and limited economies of scale have combined with low-income levels to reduce the ability of telecommunication operators to provide services. Traditionally compounded by lack of competition in the sector, this has resulted in low levels of investment in infrastructure. As a result, even where access is available, costs often remain extremely high, especially outside urban areas. Although there are a growing number of initiatives to expand terrestrial infrastructure, these are usually confined to the major cities and along trunk routes. As a result, the cost of bandwidth for Internet and other services has generally been 10-100 times higher than in North America or Europe.

Fortunately satellite technology presents an immediate solution to this bottleneck, even in the vast terrain of Africa's regions.  The IDRC Pan-Africa Satellite Survey that provided the basis for the 'Open and Closed Skies: Satellite Access in Africa' report - now widely circulated throughout Africa and globally since its September 2004 publication - confirmed that systems using the new high-power satellites over Africa make it possible to obtain bandwidth anywhere in the region about 10 times more inexpensively than in the past.

The drivers for the corporate/private sector having been covered above in # 1, there is the public sector.  In the public sector, governments have policy objectives that can best be met through use of satellite: (1) Internally, for communications between ministries, and between central government and local government, etc., and increasingly in connection with eGovernment connectivity initiatives for the ordinary population to access government information and services; and, (2) Externally, for communications networks between, for example, hospitals (telemedicine) and schools (distance learning).  In addition, the public sector encompasses the connectivity needs of Non-Government Organisations (NGOs) engaged in development work or participating in disaster relief and mitigation.

Q: What does the conference aim to do?

NewCom is an abbreviation for New Communications, and refers to new communications technologies and strategies to bridge the digital divide. These technologies and strategies originate from and with the global satellite communications industry, together with other sectors of the world of telecommunications which contribute to the development and deployment of communications solutions based on satellite-terrestrial hybrid technology platforms.

The first NewCom conference and exhibition event - NewCom Africa - took place in London in March 2005. It sought to highlight a wide range of communications solutions with one important trait in common: The potential to improve the fortunes of people and organisations throughout Africa. From business and residential networks to vital applications such as distance learning, telemedicine and rural communications, state-of-the-art ICTs have never held more promise.

But potential and promises are not enough. Funding must be secured; regulation and policy need to be optimised; and "sustainable" solutions must be crafted that draw upon the respective competences of numerous "stakeholders". Likewise, the most appropriate technologies must be identified - whether they are fibre or wireless, fixed or mobile or, as noted above, hybrid approaches.

The purpose of the NewCom Africa series of conference and exhibition events is to act as a catalyst in this process, to provide key private- and public-sector players with an opportunity to network, exchange ideas, and develop plans that transform tremendous potential into practical implementation.

For NewCom WAFSAT 2005 specifically, as the latest of these catalysts, I suppose two key themes could characterise the event: (1) promote further dialogue, and (2) generate action.

Dialogue between satellite operators at one end of the supply chain, through vendors of satellite equipment and of enhanced satellite services, through to the actual end-user communities, and including the national Administrations which - either individually, or as a harmonised group - set the regulatory frameworks within which satellite network deployment is facilitated, is vital.  It serves to educate and promote understanding of the "other" point of view.  It also serves to highlight that which satellite is capable of, and the nature of the demand for communications applications that are wanted in the marketplace.

Generating action means identifying the mechanisms to achieve ever-increasing satellite solution sustainability: policy-makers evolve appropriate policy, regulators implement that policy whilst fully apprised of how satellite capabilites meet the demands and expectations implied in bridging the digital divide, and vendors work to achieve greater cost-effectiveness and affordability in the solutions offered to the market in building the Information Society.

Q: How many people are expected to take part in the conference? Representing how my countries?

We expect 100-120 people to attend NewCom WAFSAT, though it may easily be many more, and we have some 50-or-so speakers across the two days of the Conference.  The geographic focus is of course on the whole of West Africa, and we sincerely hope to have delegates from all the countries in the region.  We are pleased to have the official endorsement of the West African Telecommunications Regulators Assembly (WATRA), and have its Chairman, Daniel Seck, providing a Special Address on the second day of the Conference, 24 November.  In this connection we are working with the WATRA Executive to promote the event throughout the countries of the region, which are the members of WATRA.

However, of course within the region, Nigeria has a very large population and is the largest telecommunications market, so we expect a significant proportion from that country.  In addition, Nigeria is, of course, the host nation, and we are very glad to have the endorsement of the Nigerian Communications Commission (NCC) and the participation of its Chief Executive, Engr. Ernest Ndukwe, in providing the Opening Address at the beginning of the Conference on 23 November.

From CEOs to Sales Directors, from information technology managers and system designers to directors of telecommunications services, all are represented within a body of conference panellists who will address the question of how their industries, and individual businesses, can only fully flourish with the fullest possible access to the continuing development of satellite-based applications and technology, together with the continued evolution and development of more favourable national - and, increasingly - regional regulatory environments.

Q: There is a heavy element of regulation-related discussion. What is the aim of this roundtable?

The host nation for NewCom WAFSAT 2005 is Nigeria, a country which has seen dramatic growth in ICT investment since 2001, coinciding with liberalisation and deregulation of the sector.  The regulatory framework is already open, relatively consultative and enabling, and commercial users consider the NCC to have transformed from a highly bureaucratic organisation to one run efficiently along business lines. Other countries within the region have begun moving in the same direction, and there has been a clear recognition in WATRA that there is an opportunity for the region to move further forward in a harmonised way.

The NewCom WAFSAT regulatory roundtable will provide a platform within which National Regulatory Authorities from across the region will be able to put forward their views on how satellite/VSAT service licensing, and all other regulatory matters, can evolve at a coordinated, regional level, in oder to promote the ready accessibility of satellite-based communications solutions for not only domestic, but for cross-border, connectivity.

The WATRA initiative is to be greatly applauded.  As is the similar initiative taken by the equivalent organisation in southern Africa, TRASA. GVF has hopes that these examples will be followed across the rest of sub-Saharan Africa.

The NewCom WAFSAT roundtable provides an exciting opportunity to explore in more detail the recent landmark agreement among the regulators of 15 nations across the region on developing a common regulatory framework for their national ICT markets.  The new harmonised regional framework for West Africa was agreed as recently as this September and covers interconnection, licensing, numbering, spectrum management, universal access and ICT policy and legislation.  It was formally approved by the 3rd Ordinary General Meeting (OGM) of WATRA, which was chaired by Daniel Seck, the Director General of Senegal's Agence de Régulation des Télécommunications (ART), as well as being Chairman of WATRA.  These new guidelines are designed to spur investment and development in the West African ICT sector. Once widely adopted, it is hoped that they will prove instrumental in helping propel some of the world's poorest nations into the Information Society.

The encouragement, evolution and development of such regional regulatory harmonization initiatives is fully part of the GVF's global programme agenda, specifically in terms of its successful development of its abilities to deliver - on a worldwide, rather then only an African, basis - its suite of Regulatory & Policy Capacity-Building tools.  In addition to these tools, GVF has also developed a range of Courseware for Sustainable Network Deployment, which includes the VSAT Installer and Satellite Sustainability training courses which are to be offered by GVF at NewCom WAFSAT on 25 November, the day after the conclusion of the Conference.

Q: What are the regulatory trends in West Africa, especially in view of the agreement by 15 countries to have uniform regulatory measures?

A growing number of African Administrations have begun to implement policies and regulations that seek to open telecommunication markets to varying degrees of competition. These policies are being applied to telecommunication structures that, on one level, have traditionally been remarkably uniform. Without exception, the sector of each African country has been organised on the principle of national operating entities having responsibility for providing telephone service. In some cases, international links were - and in some countries still are - the responsibility of a separate entity. Government ownership of operating entities has been the norm.

In some African countries that have adopted a liberalised regulatory framework, private satellite/VSAT networks are allowed to function under the authority of the incumbent operator, while the latter still retain a formal monopoly. There is also usually a limitation on the provision of voice services.

Another common restriction in Africa involves limiting private satellite/VSAT networks only to domestic use. Satellite/VSAT network operators may be required to route their private network transmissions through the national hub of the incumbent operator, regardless of the financial or even the technical disadvantages this may have for private satellite/VSAT network operators. In some cases, obtaining a satellite/VSAT licence may require a bilateral arrangement with the incumbent operator with a "landing-rights fee" or tariff to be paid to the operator, even if the incumbent does not participate in the service chain. In other monopoly jurisdictions, the incumbent is the only entity that may install and service VSATs or the only entity that may own, operate and maintain satellite earth stations.

A commercial/legal presence is typically required in Africa as a pre-condition for licence issuance. This can be an obstacle to the effective roll-out of satellite/VSAT services in the countries concerned, because it increases overhead costs to the private VSAT operators and inflates prices to the end-users.

And finally, in a number of African countries, rules are often not transparent and are inaccessible to the general public. The licence-application process can be extremely complicated, including processing periods that require up to two years, payment of a wide variety of fees - including additional taxes, annual operator fees, landing rights, etc. Added to licensing fees are customs duties, which are often so high as to prevent cost-effective access to satellite/VSAT equipment.

Q: Is the agreement not going to create too many challenges because of the unique needs of each of the country? How is this conference going to contribute to the process of having uniform regulatory measures, or is the event one of the results of that agreement?

The real challenge has already been met and overcome, as is evidenced in the actual adoption of the regional Regulatory Guidelines, and - I repeat - WATRA is to be heartily congratulated for having achieved this.  The next stage in the process involves the transition of the adopted Guidelines into actual Directives, in which process the ITU and ECOWAS will be involved, as will the European Union (EU) which is to be approached to provide the funding for implementation.

The needs of each country party to the agreement on the Guidelines are fully respected therein.

In its work with national governments throughout Africa, and beyond, the GVF totally respects national sovereignty and fully recognises that there are no necessary one-size-fits-all solutions.  Our work with WATRA has always exemplified this.

But WATRA is a body of the National Regulatory Adminiatrations, not separate to them.  These nations have identified the opportunities arising from ther development of a pan-regional ICT market, and have taken a boldest step yet to realise the reality of such a market through the defining necessity of harmonising the rules that affect the successful deployment of communications networks, networks largely dependent on satellite and satellite-terrestrial hybrid solutions.

In this context, a context of positive moves towards regional regulatory harmonisation, it is timely to bring together representatives of all the key players and stakeholders.

GVF has been, and will continue to be, one of these stakeholders.  It's history of working with WATRA, and within the Catalysing Access to ICTs in Africa (CATIA) programme - which has significantly contributed to the processes leading to the adoption of the Guidelines by WATRA - will continue. GVF look forward to working with WATRA in ever-more productive ways in the immediate future and beyond.

PEOPLE

* Egypt's GSM network operator, Mobinil has elected Iskander Naguib Shalaby as the new Chief Executive Officer of the Company. The Board says that it has reached this decision after the mutual agreement between the two major shareholders of Egyptian Company for Mobile Services (which trades as Mobinil); Orange and Orascom Telecom, on the nomination of Mr. Iskander Shalaby for this position.

* Intelsat has appointed Dianne VanBeber as the company's Vice President of Investor Relations and Corporate Communications.Before joining Intelsat in 2001, VanBeber was Vice President, Investor Relations at Gilat Satellite Networks Ltd., where she established Gilat's investor relations office and was heavily involved in its broadband satellite initiatives. From 1994 to 1998, VanBeber served in a variety of business development and marketing roles at GE Capital Spacenet Services, ending as Vice President, Marketing, and during that time was also responsible for key business development initiatives in Europe and India.

* BMC Software, a supplier of enterprise management solutions, has announced that Cesare Capobianco will join its sales team as vice-president of sales for EMEA, reporting to Cos Santullo, senior vice-president, worldwide sales and services.

* Albertus Aochamub has joined Namibia's Mobile Telecommunications as Senior Manager: Corporate Services.

EVENTS

- Workshop on Information and Knowledge Man
Organised by TzDG and AITEC, 28 November-2nd December 2005, Arusha, Tanzania
For more information contact: ikm@esrf.or.tz

- Capacity Building in Engineering Towards Achieving Millennium Development Goals
Organised by the Nigerian Society of Engineers, 5th – 9th December 2005, Royal Tropicana Hotel, Kano, Nigeria
For more information contact: nsehqr@linkserve.com

- Africa Source II, eight days workshop aimed at building the technical skills of those working with and within NGOs on the continent.
Venue: Kalangala Island on Victoria Lake during the beginning of January 2006.
For more details visit http://www.tacticaltech.org/africasource2

JOBS AND OPPORTUNITIES

TOP DOGS POORER THAN THEIR PEERS

Executive of SA's top information technology companies are generally taking home smaller salaries than their counterparts in other sectors of the economy. Although IT has a major effect on the economy and improves the performance of practically every company in every sector, the salaries are not reflecting that importance. IT directors are relatively lowly paid, according to the Director's Remuneration Report from Mabili, a human capital management company.

However, the top dogs in the telecommunications sector are enjoying "staggeringly high" packages that, not surprisingly, are triggering concern that consumers are being exploited.The average telecoms CEO reaps a remarkable R12,5m, says Mabili CEO John Shaw. Other executives enjoy an average of R5,9m, while their chief financial officers earn an average of R4,8m, making telecommunications "one of the most lucrative" sectors.

In the less glamorous IT industry, the average executive chairman's package seems hefty at R5,9m -- but Dimension Data chairman Jeremy Ord skews that figure single-handedly with his R9,6m. The only other executive chairman of a listed IT company is Gary Morolo of Datacentrix, earning R2,2m. The average CEO is reaping R2,8m, again pushed up by Didata, with CEO Brett Dawson earning $690000. Datatec's Jens Montanana also bumped up the average with a total of $1,1m.If their figures are stripped out, the average drops to a much more modest level.

When the figures are broken into different sectors, it is clearly less rewarding to head a hardware company, where the average executive earns R1m. The sexier software and computer services sector sees its executives pulling in R3,1m on average. "The IT sector is made up of a large number of companies but is sustained by only a few," says the report. "Many companies seem to be underperforming and, as a result, these executives tend to be earning relatively low packages."

In general, executive packages in SA are not out of line with international trends.SA's top bosses earned an average of R4,3m last year, or 139 times more than the average minimum wage of R34500. Shaw -- whose own earnings are not disclosed -- says the top salaries have been boosted by globalisation and increased market competitiveness.A shortage of skills has also pumped up the wages for executives with experience.The report quotes Reserve Bank governor Tito Mboweni as saying executive pay has "gone completely bonkers". Shaw argues directors have a huge responsibility and should be remunerated accordingly, but even that does not justify some of the packages, he says. "By any standard, many of today's local executive compensation packages are excessive.

(SOURCE: Business Day)

- SANGONeT is currently recruiting for the following three positions: ICT Advocacy Manager, Senior Web Designer andInformation Coordinator. Visit the SANGONeT website - www.sangonet.org.za - for the requirements and qualifications related to each of these positions.

- Position: Telecoms Project Manager
Location: Nigeria
Duration: 6 months
For further information contact Eric.Dossetter.0A149.CC7B5@mail.jobserve.com

- VSO, the international development charity that works through volunteers, is urgently seeking ICT teachers to volunteer as IT teacher trainers in the developing world. The charity is recruiting professionals with a teaching qualification and at least three years experience, who are willing to spend two years sharing their skills with some of the poorest communities in the world. The government of Tanzania has asked VSO to help it create a workforce of highly skilled teachers to improve the quality of education.

For more information about these and other placements please contact VSO on +44 (0)20 8780 7500, e-mail enquiry@vso.org.uk

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