A new breed of wireless VOIP providers– mobile operators’ nightmare may be just around the corner

Last week saw South Africa’s Sentech signal its intention to use its T-CDMA network for voice. Initially it will take on incumbent Telkom with fixed wireless but it is looking forward to the moment when it will use the standard’s mobility to take on the mobile operators at their own currently very profitable game, writes Russell Southwood. And as we reported two weeks ago, T-CDMA was the standard used by Cameroonian ISP, Douala1 for its wireless broadband roll-out and it has similar voice plans long-term.

Sentech may be the first to put its head above the parapet using T-CDMA but there are at least two other technology standard contenders: Flarion Technology’s FLASH-OFDM and WiMAX. In the scramble to provide a mobile voice and data wireless standard, T-CDMA seems to have a fractional edge in terms of operating deployments.

T-Mobile has deployed the product in the Czech Republic. Germany’s Airdata is selling a mobile voice service using handsets from UTStarcomm. New Zealand’s Whoosh Wire Wireless is offering a fixed-wireless voice option to compete with that country’s incumbent.

By contrast, although WiMAX is more widely deployed - both in Africa and elsewhere – it is not being used by many operators to directly deliver a fixed voice service. DRC’s Microcom is operating VoIP payphones using satellite connectivity.

And the mobile VoIP element of the WiMAX standard is not due to be delivered before 2008/2009. And the impetus behind the WiMAX standard will not really begin to take off until Intel starts manufacturing WiMAX enabled chips for laptops in the first quarter of 2007.

Meanwhile Flarion Technology’s FLASH-OFDM is far less widely distributed. However the company has been bought by Qualcomm that currently offers CDMA, the main rival to the GSM standard most widely found in Africa. However an increasing number of operators are purchasing CDMA “plug-ins” to offer either fixed wireless or data over mobile and if Qualcomm puts its weight behind this standard, things might change quite quickly.

However, as ever, having a “killer technology” is really only half of the answer to whether success awaits you just around the corner. First, Sentech has to get a licence for voice and in an article in the Financial Mail last week, it seems to be predicting that this will happen by the end of March 2005.

Sentech is talking about offering “unmetered voice products” although like anything unlimited in the South African market is does not mean the same as in the developed world. It will limit the length of phone calls much as South African broadband operators all offer “capped” services.

But there are three more significant obstacles ahead: the cost of handsets, the extent of Sentech’s network coverage and interconnection prices. Fixed wireless handsets are relatively cheap but mobile handsets are significantly more expensive. And they will remain so until the market expands and operators can buy in bulk.

Sentech’s coverage is not really ready yet for a mobile voice offer. The coverage map is limited and there is not enough contiguous coverage of the kind needed to offer mobile voice. But if it wants to do it, rolling out base stations is not exactly a difficult job.

The real business killer could be the morass that is the interconnection regime in South Africa (see Telecom News below). Regulation clearly signals that major operators have to provide interconnection and Telkom in its last annual report clearly said that this was the case. Simple? Not likely. In the first instance, all incumbent operators (both fixed and mobile) will simply play for time, stringing out the appeals procedure. For the bloody-minded, there are always plenty of quality-of-service issues to raise.

Once through that, there are arguments of theological density about the exact cost of interconnecting. The incumbents – both fixed and mobile – will point to the need to protect their network investment and argue that interconnect costs should remain high. With some justice, Sentech will argue that this approach stifles innovation because the point of its network is that it will deliver voice at a much lower operating cost than its fixed and GSM incumbent equivalents.

Therefore in the first instance it will only offer calling between what will probably remain the rather small number of Sentech consumers. The rest will wait for the “break-out” moment when the hugely profitable incumbents actually agree interconnect prices as they will have to do so. And what will be lost in the sound and fury of this dispute is that for the first time there may be some serious competition on the cost of local and national calls.

So what’s so frightening for fixed and mobile incumbents? There are a number of things that should make their blood run cold. Any regulator that is determined to bring high mobile prices down can threaten to introduce just such a contender. The trend towards unified licensing almost begs them to do so. Levels of price competition in Africa’s mobile markets are almost non-existent. Ask about this and operators respond that they make regular price reductions through marketing offers but this obscures rather than makes transparent the actual underlying cost to users.

Once the interconnect is sorted – however much the mobile incumbents tilt the price table in their own favour – this new breed of fixed and mobile IP operators still have a number potentially significant advantages. The capital cost of building a network is comparatively small compared with investment in GSM base stations. They will not be paying high GSM software licensing fees that are set at a minimum 100,000 subscriber baseline. The smaller the CAPEX, the faster the payback. And because return on investment is not calibrated so high, they will be able to achieve profitability with significantly smaller numbers of subscribers.

Cheap satellite bandwidth and wireless trunking will allow these new operators to both go down a lower level in the market and reach out to areas previously uncovered. Despite the considerable success of the mobile incumbents, most African countries have between 20-40% of their populations uncovered by GSM networks. Not much of this will be “good business” but there’s enough to add to the significant niche position they might carve out in Africa’s urban areas. Lower prices bring new users and we are nowhere near the bottom of the pricing curve on mobile charges to consumers.

SOUTH AFRICA: OPERATORS HOWL OVER ICASA PROPOSALS TO LOWER INTERCONNECT

Moves by the telecommunications regulator to slash the fees that rival operators charge to route calls from one network to another would not result in a substantial cut in the costs to consumers, the operators claimed on Monday last.

The Independent Communications Authority of SA (ICASA) says Telkom and the mobile operators charge each other too much to interconnect their calls. ICASA believes consumers will benefit if it forces the fees down.

But ICASA was wrong about the net effect, and was also overstepping its powers by proposing to intervene, said Telkom and MTN at public hearings on Monday. ICASA has drawn up interconnection guidelines proposing that the operators charge a fee that reflects the actual cost of terminating a call on their networks.

That could be at least 30% lower than the present fees. At the moment, interconnection fees account for 66% of what consumers pay for a fixed line-to-mobile call and 11% of a mobile-to-fixed line call, according to recent research.

The operators argue that although they pay some fees as well as receive some fees, the rates are negotiated so the players that have invested the most in their networks receive more than they pay, to help them recoup their costs.

Telkom's regulatory affairs executive, Gabriele Celli, said cost-based fees would leave the operators unable to recover the costs incurred in rolling out their networks. MTN's GM of regulatory affairs, Graham de Vries, agreed that cost-based fees would undermine MTN's investment.

"ICASA is on the verge of restructuring the industry through interconnection guide-lines that would probably be the most intrusive regulations deployed for mobile operators anywhere in the world," he said. "High interconnection fees have no impact on retail prices because the operators receive as much as they pay," De Vries said.

What fees did was allow South African operators to earn more money from foreign operators, as local users typically receive three times more international calls than they make, he said.

If Icasa felt there was a problem with the cost of calls, it could take less Draconian steps than intervening in the interconnection fees, he said. "You take a fly swatter to a fly, not a hammer."

Interconnection fees are subject to confidentiality clauses but, according to Genesis Analytics, Telkom charges 31c at peak times and 17c in off-peak periods for mobile-to-fixed calls.

The mobile operators charge R1,25, which was probably at least 30% higher than the actual cost of connecting the calls, Genesis said. ICASA councillor Zolisa Masiza said there had been a 635% rise in interconnection fees over 11 years, up from 20c.

Current laws allow Icasa to impose cost-based inter- connection fees on "dominant" operators and ICASA has declared Telkom a dominant player.

ICASA has also ruled that MTN and Vodacom are dominant companies, which would let ICASA determine their interconnection fees. MTN and Vodacom oppose that view and have gone to the Supreme Court to argue that, although they have big shares of the market, that does not translate into unfair dominance.

(SOURCE: Business Day)

ZIMBABWE PASSES BIG BROTHER LAW TO INTERCEPT PHONE CALLS AND E-MAILS

The Zimbabwean government is working on one of its most repressive laws yet, to enable it to snoop on telephone and e-mail messages in a bid to crush rising opposition and dissent. If passed into law, the bill reverses a Supreme Court ruling in 2004, which declared Sections 98 and 103 of the Posts and Telecommunications (PTC) Act unconstitutional because they violated Zimbabwe's constitution.

The full bench of the Supreme Court upheld contentions by the Law Society of Zimbabwe that the presidential powers provided for in the act to intercept mail, telephone calls, e-mail and any other form of communication were unconstitutional.

Section 20 provides for freedom of expression, freedom to receive and impart ideas and freedom from interference with one's correspondence.

The proposed law will also make Zimbabwe, already reeling from political repression and economic breakdown, a closed society functioning like a police state compared to others in the region.

The proposed legislation -- the Interception of Communications Bill -- will give powers to Zimbabwe's Central Intelligence Organisation, the Commissioner of police and the Zimbabwe Revenue Authority to spy on citizens' phones and e-mails and use the information gleaned through spying for its operations.

The information obtained in this way this will now be admissible as evidence in court. The law is expected to be rail-roaded through parliament soon.It will compel telecoms service providers to install special equipment to help the government to intercept private communications. Government will set up a Monitoring and Interception of Communications Centre.

From here, spy units will operate facilities to pry into messages from both fixed and mobile phones. The bill will also empower state agencies to open mail passing through the post and through licensed courier service providers.

It authorises the minister of transport and communications to issue a warrant to state functionaries to order the interception of information if there are "reasonable grounds for the minister to think that there is a threat to the safety of the country".

Although South Africa and other progressive governments have similar laws, such legislation in the hands of a dictatorship like Zimbabwe could be used to effectively erode freedom of speech and expression. However, the South African law sets out the rules for state- authorised snooping. It clearly states that it is an offence punishable by a fine of up to R2m or jail for a decade for anyone to monitor or intercept any communications unless it is legally sanctioned.

The law, promulgated in SA last year, the Regulation of Interception of Communications and Provision of Communication Related Information Act, allows the police, defence force, National Intelligence Agency and the Secret Service to intercept communications to promote national security, or to prevent or solve offences including terrorism or organised crime. The authorities can only intercept communications if they obtain a court order to do so.

The communications department is creating centres to store store records of e-mail and cellphone messages. Vodacom spokeswoman Dot Field says many crimes have been solved using call records, but the operators only hand over the details if a court order obliges them to do so.

(SOURCE: Business Day)

BENIN LAUNCHES A NEW POST AND TELECOMMUNICATIONS REGULATOR

Finally Benin has moved a step forward towards the deregulation of its telecommunications sector when the Council of Ministers nominated Madame Nina Mahussi Sokè Gbèho Attignon as a new Executive Directrice of the National Council of Regulation of the Post and Telecommunications in Benin. The nomination has been delayed for a long time and happens four years after the first law set the framework for the creation of a regulatory body for the telecommunications industry.

According to Romain Houehou, the President of du Ligue pour la Défense des Consommateurs au Bénin, the government has recently changed by decree the way members are nominated to the new Council of Regulation giving itself more nomination power. Initially only four members out of the nine forming the Council would have been nominated by the government. Now the government has extended its power to nominate five members and the President of Council. The remaining four members will be nominated that the Economic and Social Council and the Chamber of Commerce.

Although Mr Houehou recognises that this is a step forward it also underlines that the new regulator is much more likely to be an extension of the government and therefore he fears that the new organisation will not take care of private interests and in particular consumers rights. So far Ms Attignon, the new Executive Directrice has not hold a public press conference about the role and tasks of the new regulator.

LIBERIA: COURT STAY-ORDER UNABLE TO STOP ZTE WORK AT LTC

Despite a Supreme Court stay-order on the operations of the Liberia Telecommunications Corporation (LTC), ZTE Corporation, a Chinese owned Company is said to be working at the LTC.

ZTE Corporation is one of the many companies that participated in the LTC Bidding Process which was said to have been won by the Universal Telephone Exchange (UTE), a Liberian owned company based in Dallas, Texas, USA.

A provisional Board was set up by President Ellen Johnson-Sirleaf to ascertain the rather deteriorating condition of the company as well as issues surrounding the LTC bidding process and make a report to her within 90 days.

A member of the Board, Cllr. Roland Dahn told journalists following a board meeting over last weekend in Monrovia that the board was not aware as to how ZTE entered the compound of LTC to carry out what it was doing.

Cllr. Dahn said "We can only see ZTE bringing in materials and wires in the building, but we don't know allow them in the compound to work, and as such we have decided to invite to explain to us what is responsible for their presence on the compound." The Liberian legal practitioner said the Board was aware of a Supreme Court stay-order on the LTC, adding they respect the court order and would abide by any decision of the Supreme Court surrounding the LTC bidding process.

When contacted via telephone, LTC Managing Director, who is also Secretary General to the Board, Nathaniel Kelvin said the Board was fully aware of the operations of ZTE at the LTC, adding that ZTE Corporation was contacted to work at the LTC, but did not say by whom the company was contracted.

Kelvin said they were informed about the Supreme Court stay-order on the corporation, but added that they were working toward obeying the stay-order. For his part, the Chairman of the Board, Cllr. Oswald Tweh said he could not comment on grounds that he was tired following the Board Meeting.

Meanwhile, the Chinese Embassy said the Chinese Government is not involved with the operations of the ZTE Corporation in Liberia as it is being speculated.

Speaking to reporters in Monrovia recently, the Public Affairs Officer, Lewis Lin said the Chinese Government respects the laws of Liberia and as such, any of its citizens caught violating the laws should be dealt with in accordance with the law.

(SOURCE: The Analyst)

GHANA: ONE DIAL STILL AWAITS LICENSE FROM NCA TO ROLL OUT US$400M TELECOM INVESTMENT

One Dial Communications Limited, a network service provider based in the United States is still waiting a license from the National Communications Authority (NCA) to roll out over $400 million investment into the telecommunication industry since it applied for license in 2003. No reasons have so far been given for not granting One Dial the license to operate as a telecommunication company in Ghana. A further $1 billion investment would be brought in after the first phase of the investment is successful.

According to Mr. Bing Aidoo, Chief Executive Officer (CEO) of One Dial, this investment would create Information Technology (IT) villages comparable to that of the Silicon Valley in California at specific locations in the country to attract companies from within and without the country to cite ICT and other ICT related industries. The company has identified two areas where their investment would go.

The IT Triangular Metropolitan Area, which comprises areas between Cape Coast, Mankessim and Denkyira, would form the " Silicon Valley" for the southern portion of the country, whiles that for the northern half would be located around the Kwame Nkrumah University of Science and Technology (KNUST) to be linked with the KNUST as it exists in California between their university and the Silicon Valley.

The CEO stated that there was a similar proposal for Takoradi and its environs. The project, although not started, has already attracted many companies from the USA, Canada, Europe and China.

He noted that delays and uncertainty in the enforcement of the LI on opening up the industry to private investment passed by parliament is hampering the smooth implementation of the project. He said, "The NCA has received our application and hoped they would process it as soon as possible for us to start work". It is however noted that these delays are making the financial backers of One Dial hesitant about investing into the country.

Aidoo said Nigerians fought for the investment but could not succeed, as most of the technicians involved are Ghanaians. They have however cautioned that with these delays, the company might be forced to move into Nigeria.

Dr. Kwabena Riverson, a Sprint top telecommunication engineer in the US and George Baiden, One Dial telecommunication engineer, are some of the numerous Ghanaians in the US who are involved with the project. "They are coming down to help the country grow".

The country director of the company, Ms. Love Bello, said One Dial's entry into Ghana would create lots of opportunities in terms of employment, development of skills by Ghanaians and taxes to the nation. She therefore urged that Ghana could not afford to let this opportunity pass by. She reiterated that their investment in the country's telecommunication industry is to facilitate communications between individuals, companies and countries to foster improved communication and commerce.

(SOURCE: Ghanaian Chronicle)

TECOM OUTBIDS ETISALAT, SAUDI OGER AND MTN IN TUNISIA

UAE-based telecoms provider TECOM, now under ownership of Emirates Integrated Telecommunications Company, has outbid Etisalat to secure a place in the final round of bidding for Tunisie Telecom. TECOM bid US$1.75 billion for the 35% stake in the Tunisian incumbent, behind Vivendi Universal with US$1.8 billion and France Telecom, which put forward the highest bid of US$1.88 billion. All three now enter the third and final round of the privatisation process, while Etisalat, South Africa’s pan-African operator MTN and a consortium of Saudi Oger and Telecom Italia have been eliminated, submitting lower bids. The Saudi Oger-Telecom Italia partnership was reported to have bid US$1.57 billion.

The move by TECOM may come as a surprise to many, with the company now working within the auspices of EITC having been purchased for US$330 million in February. EITC is the company behind the UAE’s second operator, du, which is due to begin operations in the second half of 2006. Speaking to CommMEA earlier in the year, EITC chairman Ahmad Bin Byat said that the company’s focus would be purely on the domestic UAE market, with no mention of an interest in Tunisia. “This is an emirates company, its main focus is the emirates and I believe we have the world here,” he said.

Tunisie Telecom is the monopoly fixed-line operator in Tunisia and is estimated to control 72% of the country’s mobile market with 3.2 million subscribers at the end of last year. It also holds a 51% stake in Mauritania’s Mattel, which had 250,000 subscribers at the end of last year.

Last October, thirteen players were reported to have pre-qualified for the stake in the Tunisian telco – and included Bahrain’s Batelco, Saudi Telecom Company, Telefonica Portugal Telecom, Bouyges Telecom, and T-Mobile.

(SOURCE: ITP)

SOUTH AFRICA: VIRGIN MOBILE SEEKS 10% MARKET SHARE

Fourth cellular network operator Virgin Mobile planned to win a 10% share of the market within five years by creaming off the most lucrative clients who were discontented with the existing players, its CEO said last week.

The operator would launch in June or July, targeting well-heeled consumers who wanted better service than they got, said CEO Sajeed Sacranie. Virgin Mobile will sell pre-paid and contract cellular services by opening 12 dedicated retail stores in upmarket shopping malls. Discussions are under way to sell its packages through some retail outlets but not in the mass market chains favoured by Vodacom, Cell C and MTN.

Virgin Mobile does not expect a huge migration of discontented customers from the existing networks but it expects to win a material share. By targeting only top-tier consumers it would not rival even the smallest existing player, Cell C, in size "but we expect 10% of the market within five years", Sacranie said. There are about 30-million cellphone users in SA, with Vodacom claiming to have 18-million, MTN 9-million and Cell C 3,2-million. Analysts expect the market to reach 40-million in the next few years. "There is not going to be an avalanche of people saying 'here's Virgin, let's all go'," said Sacranie. He said this was because the other networks were doing their jobs "reasonably well".

The new company is a 50-50 joint venture with Cell C and will operate over the Cell C network. That has allowed the creation a fourth player without a new licence -- no fourth licence is available in SA -- and without building new infrastructure.

That vastly mitigates the financial risk, as Virgin Mobile can debut for less than R700m using network facilities that have cost Cell C upwards of R10bn. The deal gives Cell C a chance to earn 50% of the profits from users who have shunned its cheap and cheerful image. The newcomer has no intention of sparking a price war, and analysts have speculated that Virgin may even charge a premium to capitalise on its brand.

Sacranie said they would take the middle ground by offering easy-to- understand packages at competitive prices. Virgin Mobile's trump card may be the ability to offer customers a range of deals and discounts with its sister companies, the Virgin Active gyms, Virgin Atlantic airline and Virgin Money financial services to be launched in SA later this year. Sacranie would not say exactly how many customers it expects to win, nor how much it expects its users to spend each month.

Cell C's average revenue a user is the industry's lowest at R120 a month, with Vodacom reaping R147 and MTN enjoying the highest at R168. The tie-up with Cell C has been under discussion for more than a year, but Sacranie said the lengthy process was not caused by any concern about the network's quality or capacity. "Cell C has been upgrading its network and it's been implicit in the deal that they met certain minimum standards. They have delivered the desired level of service," he said.

(SOURCE: Business Day)

IN BRIEF:

The decision to lay off 12,000 of Telkom Kenya employees is final, Information and Communications minister Mutahi Kagwe has said. Kagwe ruled out a possibility of suspending retrenchment plans set to begin in May despite requests by the workers' union. He said no amount of resistance from the union would deter the plan. Kagwe said the Government would meet union officials to convince them to embrace the retrenchment, which he said was done "in good faith" following the firm's continued poor performance. The minister added that the parastatal's debts exceeded Sh50 billion.

The Nigerian Telecommunications Limited (NITEL), is to sack 6,000 of its 11,000 workforce in furtherance of the federal government's plan to divest its majority shares from the company. Currently, NITEL's staff strength is more than 11,000, a figure analyst say is too high for a company with less than one million telephone lines. The liabilities of the company currently hovers between N60 billion and N74 billion, pointing out that the engagement of Pentescope in 2002 to manage NITEL largely contributed to the worsening of the company's financial situation. Staff have agreed that retrenchment will probably serve as part of the solutions needed to salvage the company adding that the staff are not against privatizing the company, but that their entitlements should be paid before the exercise is concluded.

TELECOMS, RATES, OFFERS AND COVERAGE

The mobile phone company Telecel in Gabon has announced that it will invest 20 billions CFA to further expand the coverage of its network. The city of Mouila in the centre of the country has been the first to be connected to Telecel mobile network. Telecel is one of the three operator the two others being Libertis, the mobile arm of Gabon Telecom and Celtel that offer mobile phone services.

South African Vodacom is once again the cellular 3G leader with its announcement that their HSDPA offering will be commercially available from 2 April 2006. Both Vodacom and MTN have been trialing HSDPA for the past few months in a race to determine who would come out tops. As was the case with 3G, Vodacom’s customers will again be first to experience the benefits of this high speed mobile broadband service.

Telecom Namibia, announced the introduction of the Flexivoice service that is envisaged to become a value added facility for voice messaging using the company's FlexiCall cards. Current and future holders of valid FlexiCall cards can link their cards to the Flexivoice service through a once-off fee of only N$10. When a FlexiCall card user signs up for this messaging service he or she will be able to make calls to any destination or access voice messages via any fixed-line telephone, including public phones, across the country. Retrieval of messages from the Telecom Namibia network is free. To deposit a message, however, normal call charges apply.

Mozambique’s incumbent TDM introduced a national flat rate for fixed line telephony. There are no more local and long distance calls, there is only a single TDM fixed to fixed national call rate and separate fixed to mobile and international call rates. According to Salvador Adriano, Administrador Delegado, TDM: ”The main objective was to allow customers to make direct comparison between our tariffs and mobile tariffs”.

EGYPTIAN REGULATOR TO LAUNCH TENDER FOR TWO INTERNATIONAL VOIP GATEWAYS

The Egyptian regulator NTRA will launch a tender for two international VoIP gateways at the end of month (March 2005). Until recently, the NTRA had only legalised VoIP for PC-to-PC calling and VPNs and this new move represents a major step forward.

The terms and conditions of the tender? Everyone will have to wait for the tender to appear but it is known that the NTRA will be reserving special number ranges for VoIP callers.

At present NTRA filters traffic to try and catch grey market VoIP calling but admits that it’s hard and unnecessary work and that it needs to regulate to allow VoIP. Inevitably lower international VoIP prices – the regulator was unwilling to speculate how low – will trigger a rebalancing of domestic rates which at present are very low.

The grey market is currently worth around EG pounds 100 million ($17.5 million) despite harsh laws outlawing illegal use of VoIP that the Egyptian regulator currently sees as a criminal activity.

Even if it is only two international gateways, the legalisation of VoIP will give a strong fillip to the growth of broadband. There are now around 100,000 broadband subscribers and a 256k connection costs EG pounds 150 ($26) a month. The regulator will shortly consider whether to lower the price again. It is also going to carry out a study in the next few months to look into opening up the 3.5 ghz spectrum for Wi-MAX use.

NIGERIA’S PHASE3 WINS BID TO RUN POWER COMPANY’S FIBRE

Phase3 Telecom, an integrated long distance telecommunications firm has acquired the western axis of the High Voltage Telecommunication Infrastructure (HIVOTEL) belonging to Power Holding Company of Nigeria (PHCN) in a concession deal that is expected to last 15 years in the first instance. This followed a keen competition involving Phase3 Telecoms and 12 other companies after an earlier attempt by PHCN to run the facility in partnership with Eskom of South Africa failed.

The facility, an optic fibre backbone (OFB) embedded in the High Voltage Transmission Towers of the electricity corporation, has been largely dormant over the years but will now be deployed to enable mobile telecommunications firms in the country transmit voice and data across long distances without going through the rigours of buiying their own fibre optic network.

Presently only Globacom has attempted buiding its own optic fibre network by laying underground cables along major highways in the country, but experts say that the PHCN's optic fibre network has the advantage of greater national coverage and less prone to vandalisation because of its aerial location.

The concession granted Phase3 covers the North West, Mid West and South Western parts of the country. Major cities within this region include Kano, Zaria, Kaduna, Abuja, Sokoto, Benin, Ibadan, Lagos and other towns like Shiroro, Oshogbo, Ajaokuta, Akwanga, Keffi as well as a host of other remote locations along these routes.

Under the terms of the agreement, Phase3 is expected to design, build, finance and operate (DBFO) ancillary facilities as well as expand the optic fibre network which currently spans across a distance of about 1,500km. The contract also demands that the operator pay two and a half per cent (2.5%) of its gross earnings to PHCN annually while the concession lasts.

Managing Director of PHCN, Engr. Joseph Makoju at a brief ceremony held at the boardroom of PHCN in Abuja, endorsed the contract on behalf of his organisation while Stanley Jegede, CEO of Phase3 Telecoms signed on behalf of his company.

The development interpreted in the telecom sector as a new dawn in broadband service entails the splitting into two regions of PHCN's High Voltage Telecommunication Infrastructure (HIVOTEL) and leasing same to two different operators to expand and commercialise.

By its nature, this facility will undoubtedly facilitate higher quality service, competitive pricing, increased capacity, flexibility on capacity to cover fluctuating needs as it is designed to deliver cost effective service to supplement mobile operators' coverage and provide end-to-end solution for domestic traffic. Above all it will offer better confidentiality, cheaper bandwidth and security of transmission.

Jegede shortly after the contract was signed, disclosed that presently, over 900 kilometres of optic fibre exists along the Lagos-Ibadan- Oshogbo-Jebba-Shiroro-Minna-Abuja route.

This, he said, will be commissioned within the next 90 days while an aggressive plan to expand the network to 3000 kilometres within the next 18 months has also been launched.

According to Jegede, a fibre optic backbone within Nigeria is an essential need for a nationwide connectivity as it would boost government's universal access drive and improve the capabilities of regulatory and monitoring agencies such as the Nigerian Communications Commision and National Broadcasting Commission. Phase3, he said, would provide a reliable infrastructure for telecommunications operators including the PTOs, GSM and Wireless Operators. Other prospective beneficiaries of the new initiative are broadcast and entertainment outfits, health, education, hospitality, energy, Financial institutions and trans national business organisations.

"Our optic fibre network has been designed to accommodate large increases in demand for bandwidth, allow the introduction of new technologies for more cost effective transport, handle various types of applications with a range of reliability, availability and performance requirements such as voice switching, data connectivity and video broadcasting, while supporting a variety of service platforms such as Ethernet switches, IP routers and Next-Gen SONET/SDH. An estimated US$ 4million has been earmarked for the take off of the project.

"We will be deploying the latest Dense Wavelenght Division Multiplexing (DWDM) and Synchronous Digital Hierarchy (SDH) technologies which will provide an economical and fast way to install end-to-end fibre optic cable network. The unique right of way associated with overhead powerline infrastructure already in place is an important asset and gives a competitive advantage in deploying fibre network within Nigeria," Jegede said.

The Phase3 boss however noted that there were certain challenges which the company needed to tackle urgently.

These include the building of addititonal equipment along its concession routes; the reinstallation of the vandalised portion of the fibre optic cable for about 20kilometres between Lagos and Ibadan as well as the need to close the loop between its route and that of its competitor, Alheri Engineering, said to be a member of the Dangote Group.

Some 13 companies had previously expressed interest in the facility, but only seven were pre-qualified. These included Siemens Nigeria Limited, Suburban Telecom, Phase3, NITEL, Optic Networks Limited, Alheri Engineering and BCN/Wuhan Research Institute. Out of these only four companies met the technical criteria and had their financial bids opened while the two best (Phase3 and Alheri) financial submissions were selected as preferred operators.

(SOURCE: This Day)

GHANA’S ISP ASSOCIATION NEGOTIATES $9500 DUPLEX ON SAT3 WITH GT TO SESIMBRA

The Ghanaian ISP association GISPA has received a letter of confirmation from incumbent Ghana Telecom of the deal it has negotiated for its members. It will allow them to buy an E1 to Sesimbra for $4,500 and an E1 capacity IP link back for US$5,000.

The cost of SAT3 bandwidth has become a political issue in Ghana and there has been discussion at the policy level about separating Ghana Telecom’s SAT3 asset when it is privatised. The letter of confirmation was copied to the Ministry of Communications.

In the past, GISPA has asked the regulator to intervene on its behalf because Ghana Telecom is a monopoly supplier of this international bandwidth. Its national monopoly expires in April 2007. Industry sources say that the regulator NCA questioned Ghana Telecom about price levels and expects prices to come down further.

ALVARION SELLS WIMAX TO DRC’S INTERCONNECT AND HAS TALKS WITH ANGOLA TELECOM ABOUT PARTNERSHIP

Alvarion Ltd a provider of wireless broadband solutions and specialized mobile networks, announced that Inter-Connect, an ISP and broadband provider in the Democratic Republic of Congo, is improving and expanding its broadband wireless network with Alvarion’s system. Their existing network, which operates in central Kinshasa, was deployed using Alvarion’s earlier generation system in 2.4 GHz. By building the new network in the license exempt frequency of 5.4 GHz and adding additional equipment to cover more of the capital city, Inter-Connect will enjoy improved capacity and provide more bandwidth for higher quality data and voice services to more corporate and residential subscribers.

“We have been very pleased with both the cost effectiveness and reliability of our Alvarion wireless broadband network, and so are excited to be moving to a next generation system with higher capacity enabling us to provide both data and voice services to more users,” said Mr. Christian Callens, President of Inter-Connect. “Demand for broadband services has grown tremendously in our region of the world, and wireless broadband is the most cost-effective way for us to provide high quality services to these users.”

Meanwhile the Angola Press Agency reported that Gray Goldstein, Regional Sales Manager for Alvarion met with Angola Telecom to discuss a possible partnership to develop a wireless network which would enable Angola Telecom to link together the different regions in the country and strengthen its current offering.

NITEL PILOTS WHOLESALE BROADBAND SERVICES FOR ISPS IN ABUJA

Nigeria’s state-owned incumbent operator Nitel has launched a pilot project for its wholesale ADSL service in the city of Abuja. The operator aims to sell bandwidth on its broadband network to the country’s internet service providers (ISP), which will be sold on to corporate users. The popularity in broadband services is likely to be limited due to the lack of infrastructure and low GDP per capita in the country, currently at around US$570. Moreover, although the country has some 36 ISPs, the majority have just a handful of subscribers each, which leads BMI to expect that the number of broadband users will not reach 1mn until 2010, a penetration rate of just 0.6%.

The operator’s broadband network has been designed to run over its existing copper line infrastructure. Users wishing to connect to the service will need a Nitel telephone exchange that is enabled for broadband use, and must have a Nitel phone line that allows users to sign up with one of Nitel’s partner ISPs.

Although the government has already licensed a large number of fixed wireless operators to provide high-speed internet services, Nitel is the first of the major operators in the country to start roll out of a broadband service. Globacom, which also has a licence to offer internet services, currently does not offer high-speed data services. Meanwhile, Nitel has said that it already has plans to offer broadband services in the capital Lagos, and is likely to continue rolling out services to other main cities throughout the country over 2006.

(SOURCE: BMI)

MALI: "WIRED" IMAM OF DJENNE CONNECTS TO OUTSIDE WORLD WITH U.S. HELP

Imam Almamy Korobara is reaching out beyond his remote corner of Mali to connect with millions of Muslims and religious leaders worldwide using the web of linked computers called the Internet, thanks to information technology donated by the U.S. government.

Korobara is imam of the Grand Mosque of Djenné, one of Africa's oldest towns. His reputation as an influential religious and spiritual leader now is being spread worldwide after the U.S. Agency for International Development (USAID) recently provided him with a computer and one year of Internet service.

As "one of the most important Muslims in one of Africa's most important Islamic cities," the cleric can now communicate with religious leaders not only in Africa, but worldwide, according to a document provided by USAID.

The Malian cleric and the Internet are a natural fit because of his enthusiastic support for U.S.-government-funded programs aimed at spurring development in Mali, in part through innovative technology programs aimed at connecting sub-Saharan Africa to global information infrastructures like the Internet.

USAID said the imam worked closely with two U.S. ambassadors, "advocating using new technologies to bridge Djenné's information gap," and truly deserves the new sobriquet he has earned as "The Wired Imam" of Mali.

For example, he backed the establishment of a local community radio station and learning center in Djenné-Jeno and is busy using his computer to promote Djenné's historic and cultural past, which dates to 250 B.C.

According to USAID, after Korobara learned to use the computer and access the Internet, he said: "I used to think the Internet was just for people working in offices, but now I realize it is also useful for religious leaders and their communities. I can find information for the Friday prayers and I can help others understand what's going on in the world."

Such understanding is coming to thousands of other Africans who have taken advantage of USAID's Leland Initiative, which for the past 10 years has worked to connect 20 African nations to the Internet. The program -- named for U.S. Representative Mickey Leland (Democrat of Texas), who was killed in a plane crash in 1989 while on a humanitarian mission to Ethiopia -- is a multimillion-dollar effort to bring the benefits of the global information revolution to sub-Saharan Africa.

According to USAID's Leland Initiative Web site, "Africa needs access to the powerful information and communications tools of the Internet in order to obtain the resources and efficiency essential for sustainable development."

The Internet is a good tool, it adds, because it is a "low-cost pathway that allows information to be more accessible, transferable and manageable; ready access to information is becoming the catalyst that transforms economic and social structures around the world and supports fast-paced sustainable development."

After an African nation expresses an interest in the initiative, Leland Initiative officials survey telecom policies to see if commercial Internet service providers (ISPs) already exist in the country or, if not, whether an enabling environment exists for their creation.

The Leland Initiative will help establish the ISPs, whose goal is to provide high-speed, affordable gateway access to the Internet -- which will connect users to billions of pieces of information from universities, libraries and countless databases worldwide.

Even though the initiative does not provide computer or communications equipment to the ISPs, it works with host-country officials and the private sector "to promote Internet-friendly policies oriented towards affordable, cost-based tariffing, nondiscriminating access to the information available on the Internet and the delivery of retail ISP services by the private sector."

In Mali, the initiative helped make an Internet gateway operational, and five commercial ISPs have been connected. USAID also has been busy working with partners to train people who, in turn, can familiarize others with Internet use.

Throughout Africa, the Leland Initiative "will work with the USAID mission and its partners to grow a user base of competent, dynamic individuals and institutions capable of applying the powerful tools of the Internet to the challenge of sustainable development," USAID concluded.

(SOURCE: United States Department of State Washington, DC)

INTERNET MEDICINE FOR AFRICA'S VETERINARIANS

Veterinary schools in sub-Saharan Africa have joined forces to create an internet-based training programme that will allow vets to study for postgraduate degrees while continuing to work, says the Science and Development Network.

The African Universities Veterinary E-Learning Consortium will create online courses for vets unable to attend full-time degrees. African vets urgently need extra training, but few have the necessary time or money, says Keith Sones, a Kenya-based animal health specialist who has worked in Africa for 32 years.

Postgraduate training for vets in Africa is currently limited to traditional full-time, residential courses. The consortium will develop online programmes in collaboration with the African Virtual University and the University of Edinburgh, United Kingdom. These will include masters and PhD degrees, and 'continuing professional development' courses. Initially, courses will be available in Ethiopia, Kenya, Malawi, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.