Algeria opens up its voice market to VOIP but sets the bar high

The Algerian regulator ARPT took the brave step of allowing 24 ISPs an experimental licence at the end of April 2004. After the revision its licensing framework, the first VoIP operator (EEPAD) was granted authorization to operate a year later in April 2005. Russell Southwood reports on how this legalisation has begun to transform the market.

The primary impetus behind the opening up of legal VoIP was a desire to increase phone penetration through increasing competition. Algeria’s incumbent Algerie Telecom now has an SNO competitor backed by Egypt’s Orascom. There are two mobile operators, Djezzy (the incumbent’s mobile brand) and Wataniya.

But the regulator wanted to push out competition much further and this has shaped its approach to the legalisation process. In addition to the provision of business plans and network maps showing roll-out, potential VoIP operators have to demonstrate that they have a capitalisation of DA40 million (around US$0.5 million), pay a DA30 million licence fee (about US$300,000) and pay 10% of their turnover to the regulator. The latter compares to the 2% paid by the major operators to the regulator.

In addition they have to commit to serving 5 Waliyas (regions) of their choice, the equivalent of “departments”. This allows them to serve major urban areas but commits them to choosing at least some under-serviced areas.

The terms and conditions of the licence stipulate that operators provide provide solutions for emergency calling numbers and special numbers are designated for VoIP calling: 0820 and 0822 It all also insists that all calling charges and costs are transparent and that operators must supply quarterly information.

The impact of these conditions has been that three original contenders (ICOSNET, VOCALFONE and LAST NET) have withdrawn their applications. Nevertheless, six applications have been approved: EEPAD, Smart Link Communications (SLC), WEBCOM, WebPhone Network and two other companies.

Four of these companies are associated with existing operators. Four more applications are under consideration and there are another ten in the pipeline. One of the operators, SLC, has just completed its network and EEPAD is in the test phase before roll-out. There are currently 100,000 VoIP customers and this is growing rapidly.

SLC is the fruit of a partnership (51/49%) between the French group Telemedia and the Algerian company SLC. The company has launched its service under the brand name Numidia and it has set itself the ambition of becoming the first of a new generation of operators in the fixed market offering wireless, using WiMAX. It is offering both a voice and data service on the national backbone and internationally, utilising its 14 nodes that cover most of the country. It will have a broadband Wi-MAX coverage of 92.7% of the population of the country by the end of April including: Algiers, Constantine, Oran, Blida, Setif and Bejaia with seven nodes in Algiers.

As a new competitor, SLC has entered the market with very competitive prices, giving free calling between all subscribers to the service and high calling quality. It has access to a block of numbers starting 0822. For “taxiphones”, a franchise system is being put in place. These include a WiMAX antenna and a “Numibox” that contains either four or eight phones, a small computer and billing software, with bandwidth of between 128 kbps to 4 mbps. It is also going to offer a similar package shortly to cyber-café partners called Chabaka.

The impact on prices has been considerable. The incumbent Algerie Telecom’s prices to the USA are currently DA47 (US64 cents) compared with prices from the VoIP operators that vary between DA15-30 (US20-41 cents). More significantly given the size of the Algerian diaspora in France, current fixed line rates are DA34 (US46 cents) compared to DA15-25 (US18-34 cents) from the VoIP operators. A similar range of reductions can be found on mobile phone destinations. Savings can be made on both inbound and outbound calls. One company is offering a pre-paid calling card that gives 60 minutes for DA950 (US$13) and another offers more time for DA1000 (US$14).

Most of the operators are offering pre-pay cards for international destinations but both SLC and EEPAD are also offering post-paid services and want to offer “double-play” (voice and broadband).

All this change has not been achieved without the usual high levels of confrontation over interconnection prices. According to ARPT’s Ahmed Bougadoum, there were no less than 14 disputes that went all the way to the Higher Court of Appeal before resolution. But as he noted philosophically:”This is inevitable if you open up virtual services and interconnectivity”.

VIRGIN PLANS US$123 MILLION INVEST IN SOUTH AFRICAN OPERATION

Richard Branson’s Virgin Group is going big. The company, whose well-known brands include Virgin Atlantic, Virgin Active and Virgin Megastores, plans to step up its presence in SA dramatically in the next few years.

First on the cards is an investment of more than R750m (US$123 million) in establishing Virgin Mobile, a virtual cellular service provider, in partnership with Cell C.

“If we get the strategy right,” says Virgin Mobile CEO Sajeed Sacranie, “then, within two or three years, Virgin will be in mobile phones, financial services, health clubs, retail, and possibly even low-cost airlines. We consider SA to be a very important market.” It’s on cellular telephony, though, that Virgin will be focusing much of its attention in the short term.

Virgin Mobile, which already has operations in the UK, Australia, the US and Canada, will invest millions of rand in new infrastructure — billing systems, a contact centre and retail outlets. Millions will also be pumped into customer acquisition programmes and advertising and marketing. In fact, Sacranie says this will form a large portion of the planned R750m investment.

The advertising campaign will, however, be targeted. In a dig at MTN and Vodacom, Sacranie says: “Virgin does not just throw money away. We are not trying to own summer. Our approach is very targeted. The way we will create our brand equity is through experiential stuff rather than big yellow or blue and green banners.” Virgin Mobile will employ about 450 staff in SA. Most of these people will work in the contact centre as well as a dozen or so retail stores in the cities.

Consumers will be disappointed to hear that Virgin Mobile has no intention of engaging in a price war with the incumbent operators. However, Sacranie promises that its prices will be “competitive” and that service levels will be the best in the industry. He says SA’s network operators have not paid sufficient attention to customer service. He believes this opens a gap for Virgin to lure away dissatisfied users.

When mobile number portability is introduced — at the end of June, around the same time that Virgin Mobile hopes to launch — it will have a noticeable impact on churn in the industry, Sacranie says. “We will do everything in our power to mitigate the pain [of moving to Virgin].”

Virgin Mobile’s business model is not predicated on number portability, though, he says. It will simply add a “lubricant” to the market. “It’s a brilliant opportunity for consumers to shake the shackles off.”

Service levels in SA are “pretty inadequate — and I’m using an English euphemism there”, Sacranie says. “Consumers want more and the larger enterprises aren’t delivering it. We know Virgin will be able to deliver. We do not have the legacies [that the other operators] have to cope with. Some of the large and respected players in the market . are encumbered by an enormous infrastructure and legacy which will slow them down.”

Within five years, Virgin Mobile wants to have secured 10% market share. That would put it roughly on par with Cell C’s share of the market.

Despite the partnership with Cell C, which Sacranie describes as “very strong”, Virgin Mobile regards the network operator, SA’s third and smallest, as a direct competitor.

The deal with Cell C is similar to agreements that Virgin Mobile has reached with mobile carriers in the other markets in which it operates. In the UK, it piggybacks on T-Mobile’s network. In the US, it uses Sprint. In Australia, it has a deal with Optus. “It’s a partnership of infrastructure, not of anything else,” Sacranie says of Virgin Mobile’s relationship with Cell C. “The Cell C brand is entirely separate to ours. You will not see the Virgin and Cell C brands next to each other anywhere. That is a categorical statement. We are competitors.”

Other than its own retail outlets, Virgin Mobile will sell its products through third-party retail stores, including New Clicks’ Musica chain. It will not use mass-market retailers as the brand would not “not sit comfortably in that environment”, Sacranie says.

The company will adopt an approach similar to the model it adopted in the UK, where it initially started selling its products only through its own music retail outlets. “That gave us a footprint of about 250 retail stores in the best possible UK high streets. Later, we also sold [our products] through Carphone Warehouse, and other major retailers of mobile phone services.”

Virgin Mobile will target both the postpaid and prepaid segments in SA, though the company won’t go after the mass market of prepaid users — those who spend relatively little on telephony. Rather, it will go after customers who tend to place more telephone calls than they receive. “We are going to target average to above-average users of cellphones,” Sacranie says.

Though it won’t dramatically undercut the call charges of the other operators, the company will reward customers’ loyalty, particularly by giving them easy access to other Virgin brands, including Virgin Active and Virgin Atlantic.

Sacranie stresses, however, that Virgin has no intention of creating a loyalty scheme. “It’s not about that. It’s about ease of use and ease of access.”

It’s all about creating a broad Virgin experience that will make consumers feel good about the brand, Sacranie says. Go to the gym, for example, and you could have your phone charged while you work out. Or someone might show you how to set up your phone to receive e-mail.

Virgin Mobile will also create a strong association with music. “We will use music to reach our customers and we will reward our subscribers with access to great music.”

Sacranie says that Virgin Mobile could introduce the V Festival, or a similar such event, to SA. The V Festival, often simply referred to as V Fest, is a popular music event held annually in the UK. He also hints that Virgin could launch its Megastores retail chain in SA at some point.

(SOURCE: My ADSL)

NIGERIA STARCOMMS WANTS TO BECOME 3RD NATIONAL OPERATOR

Starcomms Limited, a Private Telecommunications Operator (PTO) has applied to the Nigerian Communications Commission (NCC) to become the country's third national carrier.

The firm's Chief Executive Officer, Maher Qubian made this known during an interactive session with newsmen in Lagos recently. He disclosed that the company is buoyed by the new investments that three foreign investors have invested into the company worth $15million.

Qubain disclosed that the latest investments are those from Actis: a venture capital firm, Emerging Market Programme Africa (EMPA) and the Lababidi Group. He said the three investors are investing US$5million each to strengthen Starcomms limited. "Our shareholders are bringing money into the country, while our competitors are taking foreign exchange out", he said. He pointed out that "the Central Bank of Nigeria (CBN), is already processing the papers with a fine toothcomb but once this is through, we will start drawing from it."

Qubain told journalists that two foreign telecom operators are currently holding talks with his company with a view to buy into Starcomms. "We have been approached by two major players from Africa and the Middle East. The interesting thing is that the major players are looking into the Nigerian telecommunications sector." According to him, the confidence of these operators in Starcomms is so amazingly great that inspite of the current tension in the Niger Delta region of the country, they are still willing to bring their money into the country.

Inorder to fulfill its quest of becoming the third national operator, Starcomms recently issued two cheques worth N520million to the National Communications Commission (NCC) for a unified license.

The money was part of the new conditions for the new licensing regime recently introduced by the NCC. To qualify for a UL under the new regime, an operator must be able to spread and expand its services to the six geo-political zones of the country.

Under the new regime which is similar to the consolidation in the banking and insurance sectors of the economy, an operator can offer more flexible multi-services including mobile and fixed lines, broadband Internet and fixed wireless.

The new regime came into being at the end of the five-year exclusive grace granted GSM operators in the country, which ended last February. The Chief Executive of the telecommunications outfit said then that the funds invested are " in preparation for unified licensing." The US$20 million was a follow up to the US$23million the firm got from China Export Import Bank (China Exim) facilitated by Huawei Technologies and Zenith Bank Plc.

(SOURCE: This Day)

ORANGE IN CAMEROON LAUNCHES SIM CARD WITH TWO NUMBERS

Orange Cameroun has launched a new SIM card that can work with two separate numbers."With this innovation, one can have his or her professional phone number and their private number on the same SIM card," stated Orange Cameroon General Manager, Phillipe Luxcey. The two numbers in one SIM card option better known as Dualism gives the possibility for customers two own two accounts: one mandatory post-paid and the other prepaid joker.

Customers will no longer have to go around with two SIM cards and have the privilege to separate their professional line from their private line. It costs FCFA 5000 and a monthly subscription of FCFA 2000, they explained. Asked why Orange is not investing in permanent structures Luxcey said the priority was to give customers the best services.

He said Cameroon is one of the most expensive countries to cover with the telephony network because of its mountainous topography and forests. Luxcey said in other countries, to have the same network would be two times cheaper. He said it requires microwave links, V-sat or satellite base stations to cover the mountainous and forest areas, which is very expensive. The telephony executives disclosed that Orange has invested FCFA 182 billion in seven years in Cameroon.

As at today, they have 304 operational points in six years which is equal to 25 points every six months. The said they were envisaging an additional 120 new points in 2006. They, however, said Orange was currently investing in permanent structures while expanding its coverage. He disclosed that Ndu is now on the air, Fontem would be in the days ahead and then Eyumojock soon after that.

On the issue of call boxes he said, "Our goal is to satisfy our regular customers. We consider call boxes as rescue or emergency services for low-income earners who can't own a phone but want to communicate."

(SOURCE: The Post)

SOUTH AFRICA’S SENTECH WILL BE USED TO SPEARHEAD INVESTMENT, SAYS COMMS D-G

Government planned to use its state-owned enterprise in the telecommunications sector to drive fundamental infrastructural investments in the industry, Department of Communications Director-General Lyndall Shope-Mafole said on Friday.

Just as Eskom and Transnet are together investing more than R120bn over the next five years in infrastructure, so Sentech, as a state-owned telecommunications company, will be used to develop the necessary infrastructure.

Shope-Mafole's statements to Parliament's communications portfolio committee during a briefing on the department's 2006-09 strategic plan marked a conceptual shift in the understanding of the role of the department. It will not only be a policy-making institution but one proactively involved in development to promote higher levels of investment in the economy. Shope-Mafole said history had shown that where communications were reliable and affordable, this was because they had been developed by the state.

"This is the approach that is increasingly being taken by developing countries. The country cannot be held to ransom while waiting for the private sector to do this thing. Once we create the infrastructure, we will create a market, and this will encourage the private sector to get involved," she said.

Shope-Mafole said investment in wireless broadband systems would be prioritised to ensure broad and affordable access to communication services. Sentech, which has complained that it has not been allocated sufficient money by the state for the migration from analogue to digital broadcasting, would get the funding it required, she said.

Sentech has warned that unless it receives state-funding for the migration soon, SA will not have the necessary systems for televising the 2010 Soccer World Cup throughout the world. But Shope-Mafole insisted: "We are going to be 2010-ready, we are going to be digital-ready. In fact SA will be one of the first in the world to migrate to digital in broadcasting."

Another example of government getting stuck into infrastructure roll out, she said, was the state's participation in the $250m, 22-country east African submarine cable project due to become operational in the first quarter of 2008.

(SOURCE: Business Day)

LIBERIA TELECOMMUNICATIONS CORPORATION  SPURNS SUPREME COURT RULING

Despite a recent ruling by the Supreme Court of Liberia placing a stay order on operations of the Liberia Telecommunications Corporation (LTC), it is observed that the facility is still continuously being operated in violation of the highest court of the land.

ZTE, a Chinese company and ALINK, an Ivorian company are allegedly said to be working at the LTC with the acquiescence of the newly constituted Provisional Board of the LTC.

ZTE Corporation is one of the many companies that participated in the LTC bidding process, which was won by the Universal Telephone Exchange (UTE), a Liberian owned company with branches in Dallas, Texas, USA.

The LTC Provisional Board composed of three prominent Liberian lawyers was recently constituted by President Ellen Johnson Sirleaf to ascertain the causes of deterioration of the corporation and the controversy surrounding the LTC bidding process and report within ninety (90) days.

But under the watchful eyes of these lawyers, Cllr. Oswald Tweh, Chairman; Kofi Woods and Roland Dahn, as members of the LTC Provisional Board, the Supreme Court issued a stay order for the discontinuance of operations at the corporation which is being violated by ZTE Corporation and ALINK.

Some Liberians, who know the gravity of the Supreme Court rulings, are still wondering why Cllr. Oswald Tweh, who is also President of the Liberia National Bar Association and member of the Reconstituted Judiciary Inquiry Commission and Cllr. Kofi Woods, Labor Minister are allowing the violation of the Supreme Court stay order on the activities of the LTC.

Many Liberians, including Independent Human Rights advocate J. Melvin Page, have expressed concerns as to why President Sirleaf, who preaches the respect for the rule of law, anti corruption and good governance would allow a disrespect of the Supreme Court at the LTC.

"Is it because such people who are accused of corruption like Francis Karpeh, former Chairman of the LTC Board is now serving with influence in her government?" Page wondered.

The President has stressed the respect for the rule of law during her administration. So also has the Chief Justice, Johnnie N. Lewis, who said that as Chief Justice of the country justice would not be on sale under his administration. So, Liberians are eagerly watching to see this come to pass in the UP led government, he surmised.

There are reports that Cllr. Tweh, Chairman of the LTC Provisional Board, was a Lawyer for Infotel, one of the companies that bided unsuccessfully for the revitalization of the LTC. As such, there are fears as to whether he will be unbiased in performing his duty as Board Chairman.

Also, there are concerns as to what will the Supreme Court do to put an immediate halt to such violations being perpetrated by foreign companies, in order to maintain the good reputation of the Court.

 (SOURCE: The Analyst)

MAROC TELECOM TO LAUNCH MVNO IN EUROPE

Maroc Telecom, the leading telecoms operator in Morocco, is planning to launch a mobile virtual network operator (MVNO) in Europe, starting with Belgium and France, reported the French daily Les Echos. This operation will be launched “in the coming months,” said Les Echos, quoting a spokesperson of the Moroccan operator.

Maroc Telecom is currently negotiating in France with SFR, a subsidiary of Vivendi Universal, which controls the Moroccan operator (51%). The French newspaper said that, for this purpose, the company has been associated with the Moroccan group Saham and hired Cyril Ferrachat, who was responsible for the services and content of SFR's website.

It also added that Maroc Telecom is considering investment in a number of African countries, including the privatisation of national operators in Burkina Faso, Cameroon, and Gabon, as well as the third mobile licence on offer in Egypt. Maroc Telecom said earlier this year that its net income in 2005 rose to MAD 5.809 billion (USD 633.6 million), registering an increase of 12%, compared to 2004. The company also expects a rise in operating profit (12-14%) and in sales (6-8%) in 2006. It has been listed on the Casablanca and Paris stock exchanges since Dec. 2004.

(SOURCE: Morocco Times)

VODAFONE EGYPT SAYS THAT THIRD MOBILE OPERATOR IS NOT A THREAT

The arrival of a third mobile network company in Egypt won't eat into Vodafone's market share, Ian Gray, chief executive of Vodafone Egypt, said."Egypt is a growing market, and there is room for a third company," Gray told Dow Jones Newswires.

Vodafone Egypt Telecommunications, a unit of UK's Vodafone Group, is one of two mobile phone operators in Egypt, the other being the Egyptian Company For Mobile Services, or MobiNil, owned by Orascom Telecom Holdings and France Telecom.

Egypt is currently receiving bids for its third mobile license. Potential bidders include Turkey's Turkcell; Kuwait's MTC; Emirates Telecommunications, or Etisalat, of the United Arab Emirates; Egypt's Raya Holding in an alliance with South African firm MTN and Telecom Egypt.

"It is still not clear who will win the bid, and so it is difficult to tell how much of the market they will win and how they will operate," Gray said.

Gray also said Vodafone Egypt would consider applying for a third generation license, or 3G, when the government made its terms clear. "We are the leaders of 3G globally, but we need to wait and see the terms that the Egyptian government will specify for application and then decide," he said.

(SOURCE: Cellular-news)

IN BRIEF:

- Telenor announced a partnership with National Telecommunications Holding Corporation (NTC) in connection with the third mobile license in Egypt.  Telenor and NTC will jointly deliver an application to qualify for participation in the auction for the Egyptian mobile license. The application is to be handed in before May 4th.

- Telkom Kenya, the troubled State-owned fixed line communication monopoly has started laying off workers in preparation for its eventual privatisation. The parastatal gave some 2,500 workers dismissal letters that told those affected that they had been selected to participate in the retrenchment. The exercise is expected to affect some 12,000 staff as the Government tries to restructure the ailing company.

- The African chapter of Union Network International (UNI Africa), has established an alliance of unions among MTN workers in 10 African countries where the mobile telecoms company operates. The alliance was formally launched in Lagos on 29 March. It aims to strengthen communication workers' unions in African countries and enable stronger bargaining power. The Communications Workers Union (CWU) will chair the alliance.

- The telephony penetration rate in Morocco has reached 45.83% in 2005 against 25% in 2002, minister in charge of economic and general affairs, Rachid Talbi El Alami announced here on Tuesday. Alami, who opened the international telecommunication fair "Telecomp-Maroc-2006," underlined that since 2002, the telecom market growth was very significant since 2002 in terms subscribers and sales figures. The telecommunications services value market has doubled since 2002, reaching USD 224Mn (MAD 24.9Bn) in 2005 against USD 194Mn (MAD 21.5Bn) in 2004, i.e. an increase of 15.81, he added. In late 2005, internet subscribers reached some 263,000, i.e. 131.8% increase in comparison to December 2004, he said adding that the number of internet users increased to reach some 4,000,000 thanks to the growth of cyber-coffees, which stand today at 7,975.

- Algérie Telecom (AT) keeps progressing its turnover, totalling 126 billion DA in 2006 first quarter, the Company's CEO Brahim Ouarets declared. Guest of daily El-Moudjahid forum, the first official of Algérie Telecom pointed out that "during these last three years, its company's turnover doubled, moving from 61 billion DA in 2003 up to 126 billion DA in 2006." In this regard, he stressed that the interconnection market (linkages with the other operators) represented 21% of AT turnover and the roaming market is witnessing "an important progress" since 2003 moving from "2.46 billion DA up to 4.86 billion DA in 2005."

TELECOMS, RATES, OFFERS AND COVERAGE

- Nigerian mobile telephone operator MTS First relaunched its corporate logo in Lagos with a pledge to increase its subscriber base to 500,000 before the end of this year.

- Ethiopian ECT nation wide fiber optics infrastructure development project is taking shape. So far it installed a 4000 km long fiber optics line that connects the regional states. The plan is to lay more than 10,000 km long fiber optics line that connects all the regional states and to link the nation to the international undersea gate way via Djibouti and Port Sudan.

- Zimbabwe EconetWireless has increased its tariffs by between 16 percent and 20 percent with effect from the beginning of this month. This is the second tariff increase this year. In January tariffs went up by 100 percent. A call made during the peak period will now cost $9 883 per minute from $8 189, while an of-peak call will now be $9 191 per minute from the previous $7,370 for Buddie users. Tariffs for Libertie silver, gold and diamond will range from $10 106 to $9 803 per minute during the peak period going down to between $9398 and $9 116 per minute during the off-peak period.

- MTN Zambia has set out a plan to open up as many distribution points for its products as possible. The company was looking at empowering small-scale business enterprises throughout the country and  had started engaging entrepreneurs to open up new distribution channels for sales of talk time and sim cards and other related products. The idea was to extend coverage of the MTN network to up to 74 per cent of the Zambian population by the close of the year.

- Third-generation high-speed downlink packet access (3G HSDPA), promising connection speeds of up to 1.8Mbps, is now available on both the Vodacom and MTN networks. “Vodacom's 3G HSDPA is a 3G technology upgrade to the Vodacom network, using Siemens as the preferred technology partner,” notes Vodacom COO Pieter Uys. Subscribers require a Vodafone Mobile Connect 3G Broadband card, which Vodacom says will entitle the user to download speeds of up to 1.8Mbps – faster than traditional ADSL connection. However, the 3GB cap option will cost the user R1 597 per month – more than ADSL. The 1GB cap option is R599.

EASSY TASKFORCE MEETS GOVERNMENT STAKEHOLDERS

Since 9 March 2006, an informal African ‘open access task force’ – made up of NGOs and small and medium sized ISPs – was initiated to lobby for the implementation of an open access model in internet infrastructure. The task force is currently mobilised to make the East African Submarine Cable System (EASSy) ‘easy’, affordable and open, writes Frederick Noronha of APCNews. Members of the Task Force last week attended a meeting organised by NEPAD between EASSy consortium members and Government stakeholders.

Vincent Waiswa Bagiire, director of the Kampala-based Collaboration on International ICT Policy for East and Southern Africa (CIPESA), says his network is planning national-level EASSy workshops to inform people of what is happening and to allow them to have their say. These workshops will take place on the following dates: Tanzania (20th April 2006); Uganda (28th April 2006); Zambia (10th May 2006); and Rwanda (25th May 2006). For further details contact: Vincent Waiswa Bagiire, CIPESA on: vincent@cipesa.org

"We would like all members of the task force to be active in their respective countries. These [events] again will be held under the auspices of APC, Balancing Act and CIPESA," he told APCNews in an online interview early in April.

It is expected that the members of the ‘open access task force’ will invite national networks and organisations namely; I-Network Uganda, SWOPnet Tanzania, OneWorld, E-brain and the Rwanda Information Technology Authority (RITA). Bagiire anticipates that, in addition, the task force could do some research to determine various perspectives for stakeholders -governments, civil society and the private sector.

Asked about his gut-level feeling of past events he added: "It is too early to judge the shape of the debate, but it's all positive. Whichever model is adopted, we, as civil society, will be happy that we played our role in informing a wider audience." Having said that, Bagiiire recognises that much work is still to be done, “it is important to note that there is a lack of awareness about the cable system."

ISPs are nervous about EASSy since they have received no clear answers about who is allowed in the club and who will be left out of the EASSy consortium. APCNews discussed the issue with Eric M.K Osiakwan, the executive secretary of AfrISPA (www.afrispa.org), a continental Association of African Internet Service Provider Associations.

"Why do investors need a license to invest in the EASSy cable? There is generally no need for a license to make an investment; hence the EASSy consortium needs to decouple investment in the cable from access and operating a landing station in-country."

There was some debate over this issue among key players such as telecommunication majors and national governments, as well as civil society organisations.

The sensitive issue could represent a key to the success of EASSy in terms of affordability and accessibility. If investors such as small ISPs are not granted the right to invest in the cable project, they might not be able to secure service from a landing station (not directly at the source from the submarine cable). This situation could create monopolistic or oligopolistic structures to the benefit of telecommunication companies and thereby, imperil affordable access to the internet, especially in landlocked countries.

Osiakwan had then commented: "This is an opportunity for investment and involvement in the EASSy cable which is trying to respond to the Open Access structure that the World Bank and other constituents have proposed."

He notes that achieving affordable bandwidth "still remains a major concern for Africa". He was part of a workshop in Senegal recently - organised by the Open Society Institute of West Africa (OSIWA) - which called access to telecommunication services such as voice, data and the internet "a basic human right".

In a communication he sent out, a copy of which was made available to APCNews, he said he had met with a Senior Investment Officer from the International Finance Corporation’s (IFC - within the World Bank) East Africa office who had indicated that if a consortium of ISPs can form a Special Purpose Vehicle (SPV) with some equity investment from the players, the IFC would loan them some more money to invest in the EASSy project.

"The reason why we need to come together and have a big share is that it would give us significant say, rather than individual members having small shares," as he put it. Since Osiakwan announced his colours, AfrISPA has engaged in an active process of organising an ISP consortium to invest in EASSy.

“Significant investment in the EASSy cable would give us a stake in making the rules of how the cable is operated; ensure that networks in Africa can trade their portion of the cable on the international market for internet protocol (IP) access, and ensure opening of the market in some countries with landing points, so that members of the consortium with international gateway license can trade their stake locally,” he argues.

(SOURCE: APC News)

TELECOM PLUS CUTS DSL RATES BY 7% AFTER INTERCONNECT PRICE CUT IN MAURITIUS

Following a decrease in the Mauritius Telecom interconnection tariff that was approved by the regulatory authority ICTA, Telecom Plus has decided to apply this decrease on its different Wanadoo ADSL Home and Business packages.

  The new tariffs applicable as from 01 April 2006 are as follows: Home 128  (Rs 950); Home 512 (Rs 1,540); Business 128 (Rs 1,860) Business 512 (Rs 3,550)  and 1 Mega (Rs 6,410). Prices shown exclude VAT at 15%.

Meanwhile ADSL is to be installed in 93 post offices around the island to increase ICT awareness by September 2006 in line with the Community Empowerment Programme launched by the Ministry of IT and Telecommunications

Furthermore there is a plan to train 400,000 Mauritians in 4 years' time on basic skills in IT. This plan was worked out by Dr Appu Kuttan (CEO of National Education Foundation for Cyberlearning in India) and approved at the Cabinet meeting last week.  This plan is known as the Computer Core Certification (IC3).

TELKOM SOUTH AFRICA HAS BIG BROADBAND PLANS

Broadband enjoyed a great deal of attention at Telkom’s Analyst Open Day on Thursday. According to the telecoms giant consumers have a lot to look forward to in the broadband space.

  Papi Molotsane, Telkom’s CEO, said that he expects to see an increase from 15% to 20% in broadband (ADSL) lines within three to five years. His ambitious goal of a million broadband users by 2010 will be easier said than done considering the current growth rate of just over 10 000 new ADSL customers per month.

Wally Beelders, Telkom’s Marketing Executive, said that a key driver for ADSL take up would be to introduce higher speeds, next-generation data services like metro Ethernet, bandwidth on demand services and broadband bundles.

Reuben September, Telkom’s Chief Operating Officer, joined the broadband party by providing an overview about Telkom’s future broadband initiatives.

According to September Telkom will focus on “innovative bundling, branding and positioning of broadband access and value added services and products”. He further pointed out that bundled services, like a complete one stop triple play solution, are in the pipeline.

Telkom are keen to include the next generation of broadband users and have stated that there will be a focus on a younger market and the provisioning of a web portal/page with broadband branded value added services. The portal will have content and self service capability meeting the demand for more interaction between Telkom and customers. September pointed out that Telkom is working on various new broadband offerings.

The new products Telkom are currently working on are Voice over broadband calling plans, Rich content like music, video on demand & gaming, multi choice video on demand, M-net on demand, IPTV, bandwidth on demand, WIMAX products and triple play (data, voice, video).

Telkom does not seem to be too concerned about the threat from wireless broadband offerings like HSDPA, MyWireless and iBurst. September said that the combination of the fixed and WiMax technologies would make Telkom “formidable from a broadband perspective”, Moneyweb reported.

September hinted strongly that Telkom might increase ADSL access speeds without hiking prices. This is a common international practice where users get bumped up to a higher speed at existing rates.

September further introduced EvolutionWare, a consolidated interface for customers and commercial centres on TelkomInternet which will “enable customer self-provisioning, self-administrating services and automated activation processes for services such as Web hosting and DNS.”

In the presentation the need for faster install times and fault repair was highlighted as one of the main customer satisfaction drivers. According to September they will focus on better communication with the customer and will enhance the self-install option to decrease install time.

September also highlighted the need for competitive tariff packages. Telkom ADSL customers in specific feel that significant reductions are needed for Telkom to fall in line with international standards.

Broadband users have eagerly been awaiting word from Telkom regarding ADSL price reductions after Wally Beelders informed Financial Mail that an announcement will be made in this regard by the end of March.

When Telkom was quizzed on this announcement they said that price reductions are in the pipeline, but gave no information about when it can be expected and how much it will be. Maybe September’s planned ‘improved communications with customers’ can start right here.

The telecoms monopoly will be well advised to make pricing the main ingredient of any broadband strategy.

In a recent website poll 86% of consumers said that cost remains the most important component of a broadband offering to them, which gives an indication of where any broadband provider’s main focus should fall.

Telkom’s broadband plans appear positive for consumers but the proof will be in the pudding.

(SOURCE: My ADSL)

KENYA POSTAL CORPORATION ALLOWED TO TENDER FOR VSAT

Postal Corporation of Kenya has been allowed - subject to competitive tendering – to have a licence for a  Sh3.2 billion satellite-link project, claiming it had been wrongly enjoined in the action by Universal Satspace (North America) LLC against the Ministry of Communications.

The High Court last week allowed the corporation that had been submitted by "licensed and legally competent service providers" for the VSAT project. However, the court barred the corporation from awarding the tender to any successful bidder until a case between Universal Satspace (North America) LLC and the Government is heard. Universal Satspace (North America) LLC currently provides Vsat services in the country.

Justice Mathews Emukule issued the orders on March 28 after hearing an urgent application by Postal Corporation of Kenya. He effectively varied the order issued on December 20, 2005, staying any dealings on the Vsat tender pending the hearing of an intended application by Universal Satspace.The order of December 20,2005 had been issued by Justice Leonard Njagi.

Through lawyer Kenneth Kiplagat, the corporation last month told the court that orders issued earlier in favour of Universal Satspace (North America) LLC had prevented it from opening tender submissions it had requested from service providers.

The court heard that the corporation had been wrongly enjoined as the second respondent in the Vsat provider's case against the Minister of Information and Communications.

In an affidavit sworn by the corporation secretary, Julius Shigoli, the corporation says it is not a party to the Vsat contract with Universal Satspace (North America). The Corporation claims the Vsat contract is void and outside the Kenya Communication Act.

(SOURCE: The East African Standard)

46% UGANDANS NOW USE INTERNET, ACCORDING TO UCC SURVEY

Forty six percent of Ugandans, in a survey by the Uganda Communications Commission last year, said they use the Internet on a daily basis.

The survey was carried out in the districts of Kampala, Jinja, Mbale, Lira and Mbarara in October 2005 by random sampling on selected respondents through questionnaires. This is the first kind of survey done by UCC on Internet use in the country so far.

The findings of the survey show that 28 percent of the respondents use the Internet once a month, 11 percent never use it while 14 percent use it once a month.

"The implication of the findings is that there is need to raise awareness of the use and importance of Internet," the survey said.

Eighty percent of the respondents who use the Internet on a daily basis access it from Internet cafes while only 8 perent have home connections.

6.4 percent access the Internet from friends' places while 5.7 percent use hotspot connections. Most of those who use the Internet said they use it for research purposes and for communications (E-mails).

Up to 43 percent of users access the Internet through a dial-up technology, 35 percent use leased lines on copper and 22 percent use the wireless.

Mr Patrick Mwesigwa, the Technical Manager at UCC, said they want to reduce on the cost of Internet by introducing the East African marine cable, which will bring down prices.

He was speaking during a consultative workshop on the use of Internet industry in the country held at Fairway Hotel on March 24 in Kampala.

 (SOURCE: The Monitor)

IN BRIEF:

- Makerere University in Kampala is to scale down its bandwidth from the current 21 Mbps (Megabits per second) to 6 Mbps due to lack of funds. By December 2005, the debts had accumulated to over Shs630 millions ($ 350,000), until the main supplier (Uganda telecom) threatened to cut off supply thus a proposal by the Directorate of Information Communication Technology Support (DICTS) to have the bandwidth reduced. MTN is the other supplier.

- This summer the Internet Corporation for Assigned Names and Numbers is going to experiment with the use of international characters in domain names, ones that use diacritical marks, like Arabic and some Asian scripts. "The geographic extent of the Internet is constantly expanding, with a corresponding increase in its use by the diverse linguistic groups of the world," said ICANN, an independent, federal agency, in a statement. "Content reflecting this linguistic diversity has long been available online." The multilingual domain names will actually be stored inside of standard Internet characters - but will present images that show the Arabic scripts.

GOVERNMENT TO RUN 'MADE IN NIGERIA' SOFTWARE

The Federal Government has approved a directive that only ‘Made in Nigeria’ software should run on the IT systems of the nation's public offices and institutions.

Technology Times checks reveal exclusively that the directive comes into force following a Federal Executive Council (FEC) approval by President Olusegun Obasanjo that all government agencies and institutions must run only ‘Made in Nigeria’ software.

The approval follows an intense lobby by the Nigeria Software Development Initiative (NSDI), an industry lobby group led by CEO of Zenith Bank Plc, Jim Ovia.

Significantly, the lobby group could not push through its controversial proposal that a 100 per cent tax be imposed on foreign software sold in the country. In a tacit move, the Council directed the Ministries of Science and Technology and Finance to address the implications of the tax levy being proposed by the lobby group.

However, there is a cache to latest directive as senior government officials told Technology Times exclusively that though government agencies have been told to run locally developed programs, they are still allowed to explore foreign alternatives their needs are not met locally.

It is another win for the local software development community as NSDI secured a 10-year lease on a wing of the old Federal Secretariat in Ikoyi, Lagos to house a proposed software park.

But within the NSDI fold, opinion varies on the issue of imposition of taxes on foreign software as some analysts reckon that it is a ‘protectionist’ policy that may actually undermine rather than grow the sector.

CEO, Computer Warehouse Group (CWG), which sells India’s Infosys software to mahor Nigerian banks, says the local software market is ‘not mature’ enough and that such policy proposal actually undermine the growth of the sector in a rapidly globalising market.

CEO, Socket Works, Aloy Chife, wants taxes to be imposed on foreign software to encourage the growth of the local market while adding that local companies ‘like Computer Warehouse who sell foreign software’ are the few kicking against it. It is done in most other markets like India, he adds, citing that it will benefit the overall long-term growth of the Nigerian software market.

A senior official of a multinational IT company told Technology Times that the local IT companies may not grow if they continue to expect policy measures that do not foster competition in the marketplace.

She cites the proposed Computer for All Nigerians Initiative (CANI) where only local PC makers were slated for participation in the PC ownership scheme backed by the Federal Government in alliance with major players like Intel, Microsoft hoped to increase IT usage and penetration across a broader spectrum of Nigerians.

According to her, multinational companies are now to participate in the scheme after they intensified lobby to have stake in the scheme hoped to push millions of PCs into the Nigerian market.

Meanwhile, the news of the government approval has largely received commendations among industry players who expected that it will stimulate the market for locally developed software.

CEO, Infographics Limited, Chinenye Mba-Uzoukwu, who also says it is a positive development for the industry also see the NSDI ‘win’ from a slightly different angle.

“It’s the result of many years of work and dividend of industry harmonisation agenda. The power of One I call it. A single voice, a coherent platform that allows diverse opinion to contend”, Mba-Uzoukwu adds.

NSDI says it is working to establish software as a national priority sector and accelerate the process of creating an enabling environment for the sustainable growth of the software industry.

(SOURCE: Techtimes News)

LAPTOP SALES IN SOUTH AFRICA GIVE LOCAL IT MARKET THE EDGE

The local computer market experienced double-digit growth last year, with the 1,29-million units sold generating revenue of R9,36bn.

Unit sales were up 10,9% from the previous year, but falling prices for imported equipment meant the actual cash value of the market rose a negligible 0,3%.

Analyst Hannes Fourie says that although desktop computer sales were flat, notebook and server sales more than compensated. Notebooks enjoyed a robust 36,9% increase in sales last year and consumer demand was unabated. More companies are buying portable computers as opposed to desktop models.

Although the sale of desktops still grew 9,8% compared with the previous year, the growth rate was less impressive than in previous years due to the shift towards portables and the slowing pace of corporate upgrading activity.

Demand from government and educational institutions dwindled last year, while consumer sales saw a massive leap of 61,4% in year-on-year growth. Fourie expects the consumer market to remain robust this year and the demand for notebooks from consumers and small businesses to continue unabated. "Falling prices will continue to stimulate new purchases and renewals," he says. David Kan, CEO of computer manufacturer Mustek, is even more upbeat.

Mustek declared a healthy interim dividend of 35c a share after its results for the six months to December 31 showed a 10% rise in sales for its best-selling Mecer computers. Kan says the IT industry is in a phase of transformation and growth, with several factors promising strong sales in the coming months.

Microsoft's next operating system should be released later this year under the name Vista. That will lead to a new wave of hardware purchases able to benefit from the better software performance, he says.

Slow but steady growth of broadband technologies in SA should also get a boost from the wireless Wi Max technology, which operators in SA are now exploring.

Intel will soon embed WiMax in its new computers, which will trigger another wave of buying as customers want PCs that automatically connect to wireless networks.

The corporate replacement cycle for computers that were last upgraded for Y2K also appears to be under way, although sales have not yet reached expected levels.

Local PC manufacturers also have a major opportunity to supply computers to thousands of schools in SA and Africa, while the low penetration rate for home computers also offers "huge potential for future sales," Kan says.

He hopes that Mecer computers bundled with educational software in all South African languages will be taken up en masse by the country's primary schools.

(SOURCE: Business Day)

U.S. COMPUTER PROJECT MOVES SENEGALESE MERCHANTS INTO DIGITAL AGE

Africans are finding it easier to buy into globalization, thanks to a U.S. government-funded program that encourages merchants in Senegal to use computers and the Internet to sell their products.

The Digital Freedom Initiative (DFI), a collaboration between the U.S. Agency for International Development (USAID), the Department of Commerce and the Peace Corps, was inaugurated by the White House in March 2003 to help spur use of the Internet among developing nations.

While DFI currently operates partnership projects in Jordan, Indonesia and Peru, its pilot program began in Dakar, Senegal, where USAID representatives partnered with a local merchant organization to establish an Internet café called "Cyber Louma" in Dakar's Sandaga Market.

Merchants and other Senegalese learned that computers and the Internet are not just the domain of scholars and libraries but can be useful tools in researching market prices and costs that have a direct bearing on their livelihoods.

After word got out, curious merchants dropped by to examine the new technology themselves, according to a USAID document.

Souhaibou Diop, a cloth merchant who usually bought his goods from wholesalers in Dubai, became interested in the computer operation. After training, Diop set up an e-mail account, looked for new suppliers and established a more lucrative relationship with a new supplier, Magna Fabrics of New Jersey.

Another enthusiastic consumer of the new electronic business link is Gor Mbaye, a wholesaler in Sandaga Market who does business with many suppliers in Senegal. According to USAID, Mbaye, who once spent hours doing his bills and other paperwork by hand, received training at the U.S.-sponsored cybercafé and now does all his bills and accounting by computer. In addition, he now e-mails suppliers, receives offers and negotiates prices electronically.

The future has especially brightened for Abdoul Fall, USAID notes. A construction-materials wholesaler, Fall was able to use computers at Café Louma to search the Internet and find fans he could buy at a price lower than available locally. Fellow merchant Mamadou Guèye, a dealer in tiles from Italy, also has used the Internet at Café Louma to enhance his business prospects.

Guèye told USAID, "I'm now planning to arrange a space in the shop to build an office and buy a computer to better manage my business."

Since its inception, DFI has expanded beyond Sandaga Market. In 2005, USAID officials working with Peace Corps volunteers and other international organizations helped more than 70 people find jobs while training people in 360 businesses to use computers. More than 300 entrepreneurs in Senegal were also trained to use information technology to manage their businesses better.

(SOURCE: United States Department of State)

ETHIOPIA SEEKS UNESCO SUPPORT TO STRENGTHEN SCIENCE, TECHNOLOGY CONTRIBUTION

Education Minister Dr. Sintayehu Wolde-Michael said Ethiopia needs the support of UNESCO in its efforts to strengthen the contribution of science and technology to socio-economic development.

The Minister said the Ethiopian government allocated 20 per cent of the total annual federal budget for the education sector, while State Governments allocated up to 40 per cent of their budget for the same purpose.

According to the Ministry's Public Relations Service, Dr. Sintayehu made the remark at the 174th Session of the Executive Board of UNESCO in Paris, France, on Tuesday.

In line with the national and sectoral science and technology policy put in place since 1993, Dr. Sintayehu mentioned the establishment of the National Radiation Protection Authority, the Information and Communication Technology Authority, the Ethiopian Intellectual Property Office as well as the National Scientific Equipment Centre.

The Minister said that Ethiopia would realize the MDG to see all school-age children get access to quality primary education by the year 2015.

In 2006 primary school enrolment has reached 89.14 per cent and secondary education has reached 30.9 per cent.

Out of the total enrolment, the Minister said that, the share of girls in primary, secondary and higher education has reached 44 per cent, 37 per cent and 25 per cent, respectively in 2005 and 2006, the Minister said.

The Minister would discuss with UNESCO Executive Board members and other officials on issues related to the development of culture, the expansion of tourism, science and technology as well as the support of UNESCO for the development of telecommunications in Ethiopia, among others.

The Minister also spoke at the Session about the New Ethiopian Millennium, which would be celebrated in one and a half year time.

A series of events would take place in Ethiopia and around the world in connection with the New Millennium where it would be commemorated by the Ethiopian Diaspora and friends of Ethiopia, he said. Ethiopia would continue as UNESCO Executive Board member for the next four years, the Ministry said.

(SOURCE: The Ethiopian Herald)

SOUTH AFRICAN HOME AFFAIRS TAKES OPEN SOURCE SOFTWARE TO HEART

The home affairs department has taken the government's commitment to open source software to heart, with plans to install the Linux operating system at its 635 foreign missions, border posts and local offices.

The department will install Novell's SUSE Linux operating system in one of the biggest Linux projects ever conducted by the government. Novell's GroupWise software will be installed on top, giving its users e-mail, calendaring, instant messaging, task management, and contact and document management features.

Government supports the use of open source as an alternative to proprietary fee-bearing software wherever possible, because open source programs carry no licence fees and can be adapted by users to suit their needs.

"Linux and open source are massive priorities for us," said Kgabo Hlahla, the department's deputy director-general of information systems. "Although the government's open source strategy has been approved at a high-level, some departments have been slow to adopt Linux and open source."

The project should serve as proof of the value of Linux for other departments, he said.

"We need 'follow the sun' technology, since wherever the sun goes, a home affairs official wakes up with the intent of rendering a service," Hlala said.

"Our officials need access to information and communications capabilities at their fingertips. Since we are also dealing with confidential information, security is a key priority."

The project will cover 435 branch offices, 60 border posts and 120 foreign missions. It will connect 7500 employees to e-mail and collaboration services this year, and reach 11000 employees next year. Management and auditing of the system will be centralised to lower costs and strengthen security.

The department will use two companies, NetCB and Shimo IT, to install the software locally. Other Novell resellers will be used for the work abroad.

(SOURCE: Business Day)

ZIMBABWE RANKS LOWEST AMONGST SOUTHERN AFRICAN COUNTRIES DEVELOPING ICTS

Zimbabwe has once again been ranked last among southern African economies that are developing their information communication technologies (ICTs).

According to the World Economic Forum (WEF)'s Global Information Technology Report (GITR) released last week, Zimbabwe ranked a dismal number 105 in a survey that included 115 economies in 2005-2006.

The report, which uses the Networked Readiness Index (NRI), measures the degree of preparedness of a nation or community to participate in and benefit from ICT developments.

The NRI examines an economy's ICT condition on three dimensions: the general macroeconomic, regulatory and infrastructure environment for ICT; the readiness of the three key stakeholders -- individuals, businesses and governments -- to use and benefit from ICT; and their actual usage of the latest information and communication technologies.

Harare's ranking is a considerable slide from its 2004 position, when it was number 94 out of 104 countries, ahead of neighbouring Mozambique, which ranked 96th. In the 2005-2006 report, Maputo is ranked number 101, four places ahead of Zimbabwe.

At position 37, South Africa leads sub-Saharan Africa in terms of networked readiness while Mauritius (ranked 45th) and Botswana (ranked 56th) trail South Africa. Tunisia, which is ranked 36th, leads as the highest-placed African country. In total, Zimbabwe only outmanoeuvred two other African countries, Chad and Ethiopia, which anchor the rankings at positions 114 and 115 respectively.

Overall, the United States climbed four places this year to replace Singapore on the top spot in ICT, confirming its position as an information and communication technology powerhouse.

Singapore, Denmark, Iceland and Finland were next, confirming the ICT dominance of Asia and the Nordic countries.

With record coverage of 115 economies worldwide and published for the fifth consecutive year, the GITR has grown into the world's most respected assessment of the impact of ICT on the development process and the competitiveness of nations.

Zimbabwe's ranking means that there is little or no progress that is being made in the adoption of the latest information and communication technologies.

The crisis-torn southern African country, which is battling its worst economic crisis in 26 years, is currently hitting the headlines following reports that the government is crafting a notorious Bill empowering it to snoop on telephone and individual private emails.

The proposed law, the Interception of Communications Bill 2006, reverses a Supreme Court ruling in 2004 which declared unconstitutional some sections of the Posts and Telecommunications Act.

Harare has been scoring poorly on global economic indices as its economy declines.

Recently, the Global Competitiveness Report gave Zimbabwe the world's worst ranking (117th) for the quality of its macroeconomic environment.

Since its launch in 2001, the GITR has become a valuable and unique benchmarking tool to determine national ICT strengths and weaknesses, and to evaluate progress.

It also highlights the continuing importance of ICT application and development for economic growth.

The WEF said although technological change had always been a central engine of economic growth, what had been significant about the past decade was the acceleration in the pace of change.

As more and more countries made efforts to improve their macroeconomic and policy environments, technology and technological innovation appeared to have entered a "golden age" when they were emerging as the key drivers of growth and development, it said.

John Chambers, the president and chief executive officer of Cisco Systems, co-authors of the report, said: "Networking and communication technologies are enhancing the way people communicate and exchange ideas, opening the next horizon for creativity, innovation, growth and competitive advantage.

"The strong link between the Networked Readiness Index and global competitiveness has increased and is evidence of the critical role that these technologies play in any economy or company's strategic plans. The GITR will provide all of us with greater insight and help to guide our future decisions." said Chambers.

(SOURCE: Financial Gazette)

IN BRIEF

- The Rwanda Development Gateway Group, a Government ICT development project, last Friday, launched a countrywide programme aimed at training senior secondary school teachers on Information Technology.

- The Federal Government has entered into a memorandum of understanding with NEPAD e-Africa Commission and Hewlett-Packard (HP) consortium to provide information and communication technology infrastructure and training to some selected educational institutions in the country under the NEPAD e-school initiative.

DIMENSION DATA BUYS 51% OF ICL EAST AFRICA

Dimension Data has bought 51% of ICL East Africa, an information technology company active in Kenya, Tanzania and Uganda.

The deal is being used by Didata to set up offices in those three countries, with the office in Kenya to serve as its regional headquarters. Didata did not disclose how much it is paying for its stake in ICL East Africa, which is part of Kenya's Sameer Group, a diversified industrial and commercial operator.

ICL East Africa has more than 60 employees, and all of them will transfer to Didata's payroll. It resells hardware and software from suppliers including Fujitsu-Siemens, Sun, IBM, Cisco, Oracle and Microsoft to clients such as Barclays Kenya, Telkom Kenya, Standard Chartered Bank, Coca-Cola, Nestlé Foods and cellular operator Celtel.

For the year to September last year, Didata earned $482m and a profit of $42,5m from its African operations, out of a total global revenue of $2,7bn and a profit of $61,6m. The company enjoys a higher profit margin in Africa because it is supplying more higher-margin services rather than selling low-margin equipment.

Didata Africa chairman Andile Ngcaba said: "With regional headquarters now established in the northern, southern, eastern and western areas of the continent, we are able to deliver our services more efficiently to many more countries."

The large population bases and the predicted growth of information technology to help the economic and social development of those regions presented significant opportunities for the company, he said.

Sameer chairman Naushad Merali said that the Sameer Group was the largest IT supplier in Kenya, and its partnership with Didata would combine global best practices with local expertise and knowledge to offer customers a service that could not be matched by any other player.

(SOURCE: Business Day)

NIGERIAN CHAMS SEEKS FUNDS FOR TERMINALS DEPLOYMENT

Chams Nigeria Limited, a pioneer operator in the smartcard segment of the Nigerian IT industry, is offering a private placement subscription of 100,000,000 units of shares of N1.00 each at N6.25k per share in a bid to raise funds to instal terminals for business and investment purposes in Nigeria,

This offer is being made to enable the company its widely popular new multi-purpose e-business payment platform.

According to the Managing Director of the company, Demola Aladekomo, this initiative is geared towards raising N3 Billion on 2006 project and N10 Billion towards implementation of terminals in 2007. Three thousand terminals will be located in Abuja and Lagos as a result of the Private Placement.

Aladekomo said "investors should invest in Chams a stable and established company with solid and well - respected brand and pioneering technology. Chams will add value to Nigeria and Nigerians, bring about great Return on Investment and will be listed in stock exchange by 2007".

He disclosed that Chams has been tested stating that "the board as well as competent management has been suportive in th growth. It is innovative and dynamic, convenient and safe. The future of Information Technology is bright and as such investors will relish the growth in the industry through investment"

General Manager of the company, Kazeem Durodoye said Chams Access Terminal is a state-of-the-art public access retail billing and collection system with Internet access backed by a state-of-the-art data center operations.

According to Aladekomo, Chams Nigeria Limited was incorporated in 1985 as a computer hardware maintenance service, It pioneered computer maintenance from 1985-1987, pioneered networking 1987-1992, pioneered ID card and smart-card from 1993 till date, pionered bank smartcard with valucard 1993-- 1996.

It also pioneered the manufacturing of cards locally and the probability of producing the cards before the government decision to ban importation of cards. The company's first successful implementation of the national ID card with one million Nigerians was in 1999. Chams also manufacture cards currently for six PTOs and two GSM companies.

In 2003, the company came up with a new business focus with pioneering technology, filling gaps in IT. By 2004, its business and technology changed strategies.

The various subsidiaries of chams are the Card Centre Limited, Paymaster Limited and Supercard. The Card Centre is responsible for manufacturing of various kinds of plastic cards and PVC.

Paymaster is for building e-transaction, infrastructure with the objective to establish and run a secure, reliable and scalable network. Supercard core activity is to generate a secure, credible and fail-safe information, create data base for pensioneers and system that would be able to create an equally secures, fraud/forge proof students/staff ID card.

In twenty years of the company's operation in the IT industry in Nigeria, it has developed human capital capacity and built alliances with reputable companies abroad and locally to guarantee bits continued existence and relevance.

Taking into consideration its liabilities, using the Net Asset Valuation, the company's unit share is worth about N9.80 for the issued share offer, hence it is heavily discounted in order to attract investments for the deployment of the Chams Access Service.

(SOURCE: This Day)

GHANA TELECOM’S US$40M BOND ISSUE QUERIED

Information reaching the Business Chronicle indicates that the Securities and Exchange Commission (SEC) is not happy with the way Ghana Telecom (GT), led by Databank, raised an amount of US$40 million through the issuance of bonds to expand and upgrade its network.

The capital market regulator, SEC, raised concerns about the way the transaction was shrouded in secrecy during a day's seminar in Accra on Thursday, to develop an 'over-the-counter' market for Ghana.

A source at SEC said in terms of decency and fair play, the Ghanaian taxpayer must know their company raised the money.

The source further said that the raising of the money without the knowledge of SEC is contrary to SEC Regulation, Legislative Instrument (LI) 1728, schedule 5, which borders on disclosures in terms of raising money through bonds. "Nobody knows who was approached to invest into GT," the source added.

"We are the owners of GT because government owns GT in trust of the Ghanaian tax payers and they are entitled to any transaction that GT undertakes." There is however disagreements as to whether the transaction is a private placement because GT is 100% government-owned.

According to SEC, the former CEO, Oystein Bjorge, approached them some two years ago to inquire about how to raise the amount. But he never came back until the new CEO, Mr. Frode Haugen, announced that GT had successfully raised $40 million through the sale of its bonds through Data Bank.

However, the new CEO, Mr. Frode Haugen, in an interview, said it is not illegal for them to raise that amount of money in Ghana through bonds. "I am not aware of any irregularities in raising US$40 million through bond. If they don't understand anything, they should contact me," he reiterated.

GT, in March, announced the procurement of $40 million estimated at ¢360 billion in the form of bonds to expedite its network expansion and upgrading projects.

The amount is the biggest to be raised by a state-owned company in recent times to meet government's target of making telephone services accessible to all, especially those in the rural areas.

It is also to provide the company with additional capital to expand both fixed lines and mobile lines.

53% of the amount, which is $21 million, was raised locally whilst foreign companies acquired the remainder, estimated to be $19 million. According to unconfirmed reports, a letter is being drafted to GT to explain the transaction.

(SOURCE: Ghanaian Chronicle)

SAP LOWERS BAR TO BOOST REVENUE

German software company SAP signed up 200 new clients in SA last year and expects to duplicate that this year by focusing on small and medium-sized businesses.

The company aims to double its revenue and quadruple its customer base globally by 2010, with even higher targets in Africa and SA, says Claas Kuehnemann, its MD in Africa.

"That's a bold statement, but we see Africa as a growth market." SA was a maturing market, but it still presented better opportunities than in Europe where the economies were growing more slowly, he said.

SAP traditionally sells enterprise resource planning (ERP) software to large businesses, with individual projects often costing R100m. As that market becomes saturated it has scaled down its systems for smaller users, giving it a far larger market to tap. The gamble has paid off, with SAP globally winning 10 new customers every day.

SAP is now aiming at a market expected to be worth $70bn in 2010, compared to the traditional market for its software of $30bn.

SAP claims a 62% market share globally. Kuehnemann says that dominance means SAP is becoming the accepted standard for enterprise software.

Kuehnemann is a frequent critic of SAP's main rival, Oracle, which has grown through aggressive acquisitions but still lags in market share. Customers were voting with their wallets and supporting SAP's strategy of extending its software features in partnerships with other developers, rather than by acquiring them, he said. "Customers understand that our competitors who have been on the acquisition trail will now have to spend time and attention on themselves, integrating the different companies and technologies they've bought. By contrast, we can focus on our customers."

(SOURCE: Business Day)

IN BRIEF

- Gabon’s smallest mobile operator Telecel has announced plans to invest XAF20 billion (USD38 million) to expand coverage of its GSM network this year. Telecel remains in third place in the market in terms of subscribers, with around 75,000 at the end of 2005, well behind Celtel and Libertis. Its network rollout progress has fallen short of the national coverage required by its licence, although it was the first of Gabon's cellcos to launch a post-paid contract option.

- South Africa-based payphone operator Du Pont Telecom has entered the Ghanaian market through the purchase of 40% of mobile operator Dial Tone, reports Graphic Ghana. Dial Tone holds a community payphone licence. Du Pont Telecom will invest in a R&D facility in Ghana to develop products and software for the local market. Du Pont claims to be the largest distributor of payphones on the African continent. The company appears to operate through a franchise or licensing scheme whereby local entrepreneurs resell the service anywhere within range of a GSM signal. Du Pont has offices in South Africa, Nigeria, Benin and Tanzania, with satellite offices in Mali, the Democratic Republic of Congo and Togo.

- Is Verizon’s sale of its Latin American assets the sign of wider non-core disposals? If yes, keep your eyes open for who will buy MCI’s UUNet operation. Also as the multinational majors throw the furniture overboard to increase shareholder value, will Cable and Wireless dispose of its international connectivity operation in Africa?

READERS’ RESPONSES – ISSUE 299: AFRICAN ROAMING MOBILE CHARGES

HIGH ROAMING CHARGES ON AREEBA

I have had the experience of prepaid roaming on a GSM network when I used Areeba Ghana's prepaid roaming service in 2004. By the way, Areeba, then known as Spacefon, pioneered prepaid roaming in the west African sub-region.

Signing-up for the service cost me the cedi equivalent of US$30 and I had to purchase call credit worth US$40. In my opinion  the charges by the GSM operators for roaming are rather exorbitant.

While roaming on Areeba, I had to pay US$1 per minute for making calls and US$0.50 per minute for receiving calls! Forwarding calls whilst roaming on Areeba cost US$2 each time the call forwarding is activated, and one does not receive text messages on the number to which calls are forwarded. Areeba's Pay Monthly (post-paid) roaming service is even more bizarre. A subscriber has to deposit a massive US$1,500 before being able to roam with his/her mobile phone number!

I recently had a debate with a staff of Areeba, about this very issue and she tried to make her point based on the fact that the US$1,500 is justifiable. Why? Some unscrupulous individuals had in the past ran-up a high bill on Areeba's post-paid roaming service and then disappeared into thin air. Well, I also made my point to her, a subscriber should be allowed to deposit the amount of money he/she wants to, and simply cut the subscriber off, after the deposit has been exhausted. US$1,500 is capital for business. Leaving it with a cellco is simply out, for me.

It has always been because of the high deposit on Areeba's post-paid roaming that I have kept away from their Pay-Monthly package. One can only hope that they would do something about this.

David Ajao
Ghana

STICK TO BUYING LOCAL SIM CARDS?

I believe roaming charges are ridiculously high everywhere, not only in Africa. I am very annoyed whenever I travel anywhere WITHIN Europe.

Also, I did acknowledge that "Last week the European Commission announced that it will force mobile companies to lower their excessively high international roaming charges and scrap all roaming charges for receiving calls abroad." But this is simply not going to happen, I believe. The European Commission does not have the power to do this.

So what is the solution ? I guess for Africa, we should all do as the Africans do. Buy a local SIM card for everycountry you travel to, and use short messaging (SMS).

Eberhard Blocher
East African Home Pages KG

CORRECTION: Last week’s story in issue 299 headlined “SNO launches residential WiMAX broadband offering” was an April Fool’s spoof story from Myadsl.com. Yes, we were taken in but it was one of those stories that had the ring of truth about it.

KENYA’S POLICE DEPARTMENT GOES ONLINE

The police department has set up a website to enhance service delivery and combat crime. According to Police headquarters, the website, www.kenyapolice.go.ke, is yet to be officially launched. It is, however, functional.

Information posted on the site includes names of senior officers, crime statistics, how to report crime and make a complaint and when one needs to call 999 emergency line.

Also available is a list of wanted persons and their pictures, telephone numbers of most of the police stations across the country, status of police reforms, a section of traffic updates and services offered by the force. The department has also explained how to hire its services, which include police officers, vehicles and dogs.

In his message, the Commissioner of Police, Maj-Gen Hussein Ali, says dynamics of security worldwide call for diligence in keeping abreast with current communication technology, which is crucial in exchanging views, experiences and information pertaining to law enforcement.

(SOURCE: The East African Standard)

EAST AFRICA COMMERCE BODY ACQUIRES WEBSITE

The recently-launched East African Chamber of Commerce, Industry and Agriculture (EACCIA) has gone another step forward by acquiring a website that will provide the latest information and papers on East African business issues, writes James Odomel in Arusha.

EACCIA's chairman David Githere said, "Our website, www.eastafricanchamber.com, is rich in content especially on the investors forum.

The content includes country information, roadmap for investment, tariff rates for the community, agricultural commodity prices, weekly currency rates, investment opportunities and major investments among others." Githere said the website has an online database.

(SOURCE: New Vision)

BOTSWANA ENDS MONOPOLY ON DIGITAL TV

The good news has come. The monopoly in the Botswana digital satellite pay TV market is over. Black Earth Communications (BEC) has entered the fray after its application passed muster at the National Broadcasting Board (NBB) last week.

The company has won the rights to operate Black Entertainment Satellite Television (BEStv) out of Gaborone and in competition with long time player, Multichoice.

So far Multichoice-DSTV enjoys not only a monopoly in the pay TV market in Botswana but Africa and the entry of BEStv is likely to heighten competition. When contacted, BEStv spokesman, Andrew Jones said they are delighted by the development and they look forward to operating in the African market. "With the offer comes terms and conditions which we will begin negotiating shortly. We are very optimistic that these matters will be settled very quickly and that we will be up and running as licensed operators this year," he said.

He reiterated that BEStv is going to give Mutlichoice stiff competition. "The days of monopoly rule are over and I take Multichoice's words at face value when they say that they welcome competition. I think we both agree that with competition comes many benefits for the market and for the consumer. I believe that most consumers will opt to add on our service to whatever service they already have, rather than eliminate one service for the other. But they do need a choice of different options and that is what we are going to bring," Jones said.

He added that BEStv will be targeting the emerging black middle class. He emphasised that they are not really concerned with race but lifestyle. "We want the black middle class and we are confident that they will want us once they see what we have to offer, which is really good information, entertainment and service. But that doesn't rule out the white market because let us face it, black people have been watching and enjoying white entertainment forever. So why can't the opposite be true. We are not pointing to race so much as lifestyles in defining our market and these days and times, many different lifestyles are emerging," Jones said.

He expressed gratitude that they have made progress in getting the licence. He said that his company can start the next level of building the infrastructure and finalising the service provider management team and entertaining offers from the capital market. He hopes that the Independent Communications Authority of South Africa (ICASA) will give BEStv fair treatment. "In a short while, there will be two players operating as licensed broadcasters out of Botswana, BEStv and Multichoice. What we are saying is that if Multichoice got permission from ICASA to operate in the South African market, as licensed operators outside Botswana why can't we," he said.

BEStv-BEC applied for a pay TV licence with NBB in November to end the 10-year monopoly of Multichoice. BEC applied for the licence on behalf of BEStv. A few weeks ago, the applicants were thoroughly grilled by NBB in Gaborone. BEStv had promised to give good competition to Multichoice and start by offering viewers between five and 10 channels at less than P100 a month. Once in place BEStv promises to scale up very quickly to a service that will offer between 100 and 300 new channels not currently available on the Multichoice DSTV with no significant rate increase.

(SOURCE: Mmegi/The Reporter)

IN BRIEF:

- The Botswana branch of Multichoice Africa, has joined the fray and increased its subscription fees for its Digital Satellite TV (DStv) service. Multichoice increased its prices on April 1, blaming the move on escalating operating costs. Tshepo Maphanyane, spokesperson for Multichoice Botswana confirmed the adjustments, but defended the move, saying they had been able to cushion the costs of the BWP devaluation last year. "It is however encouraging that Multichoice Africa absorbed substantial costs in delaying the price increase so long after the 12.5 percent devaluation", Maphanyane explained. Under the new price adjustments, DStv customers in Botswana will now pay P335 from P305 for the premium bouquet, while they pay P170 for compact bouquet.

- A Lagos-based firm, Hydra Entertainment, has instituted an action against Multi Choice Nigeria Ltd, at a Lagos Federal High Court over alleged infringement on the plaintiff's copyright. In the suit, the plaintiffs, Hydra and Mr Akinwumi Sydney (the second claimant), had claimed that the copyright of the literary work entitled; Big Brother Nigeria belonged to them.

PEOPLE

* Tracey Newman, managing director of FrontRange Solutions South Africa, is to leave the company at the end of April for personal reasons. Newman has been with FrontRange Solutions South Africa for eight years, five as managing director, in which time it has become the strongest-performing region of all the company's global operations.

* Vincent Waiswa has been appointed the chief executive officer of Bridges.org. He has been working in the same organisation as Africa programmes director for this  leading ICT organisation based in the United States.

* As part of its plan to expand its activities and coverage in developing countries, the World Dialogue on Regulation has named regional correspondents for Africa, Asia and Latin America & the Caribbean. Robertine Tankeu has become the regional correspondent for Africa. Robertine Tankeu is a researcher active with  Research ICT Africa (RIA!), ENDA's ICT and Gender Network based in Dakar, Senegal, and the Euro-African ICT network. Robertine is based in Yaounde, Cameroon.

* Frikkie Grobler  has been appointed as General Manager of Digica. He joins the local operation to lead the roll-out of the Digica Transformational IT Outsourcing Services Model throughout the region. Since opening its Cape Town office in 2002, mid-market IT outsourcing specialist, Digica, says that it has been making substantial gains.

* Ndi Two and Paul Wilde have left Arrivia.kom and their division has been merged into its Face Technologies subsidiary that is headed by Serfies Serfontein.

EVENTS