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The countries below contain a historic archive of information on the state of the internet that is now three years old. For some countries, the information has remained largely the same whereas for others considerable change has occurred. However it can still be used to identify organisations involved in developing the internet and to understand the historic development of the Internet in Africa. For up-to-date (but "pay-for") information click here: There are special rates for students and universities.

DOWNLOADS ZONE
This is an area where you can download longer articles and reports of interest. These will be updated as new material becomes available.

Download 1
(Word format, 875kb)
This IDRC-supported research study looks at how complaints by African consumers in the telecoms and Internet sectors are dealt with and what input consumer organisations are able to make into policy for these sectors. It is based on a survey of 30 African countries and includes detailed case studies of Kenya, Senegal and South Africa.

Download 2 Word document
(255kb)
This chapter from the ITU's Global Trends in Telecommunications Reform 2005 examines the market and regulatory implications of the shift to IP networks and outlines the different types of responses regulators are making to VoIP calling.

Download 3
(pdf format, 310kb)
Leslie Chan, Barbara Kirsop, Subbiah Arunachalam look at the use of Open Access archiving as a way of improving scientific capacity building.

If you have updates or interesting material to add, please send it to info@balancingact-africa.com

ALGERIA ANGOLA BENIN BOTSWANA BURKINA FASO BURUNDI CAMEROON CAPE VERDE CENTRAL AFRICAN REPUBLIC CHAD COMOROS CONGO COTE D'IVOIRE DEMOCRATIC REPUBLIC OF CONGO DJIBOUTI EGYPT EQUATORIAL GUINEA ERITREA ETHIOPIA GABON GAMBIA GHANA GUINEA GUINEA-BISSAU KENYA LESOTHO LIBERIA LIBYAN ARAB JAMAHIRIYA MADAGASCAR MALAWI MALI MAURITANIA MAURITIUS MOROCCO MOZAMBIQUE NAMIBIA NIGER NIGERIA REUNION RWANDA SAO TOME & PRINCIPE SENEGAL SEYCHELLES SIERRA LEONE SOMALIA SOUTH AFRICA SUDAN SWAZILAND TOGO TUNISIA UGANDA UNITED REP OF TANZANIA ZAMBIA ZIMBABWE

KENYA BEGINS THE COUNTDOWN TO CHEAP INTERNATIONAL FIBRE

Telecoms news

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Digital toolbox/In search of the business model

On the money

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People, events, jobs, contracts...

Parts 1, 2 and 3 of African Internet Country Market Profiles are out now... and web ordering now in place..

The first part of Balancing Act's African Internet Country Market Profiles covers 22 countries in West Africa, the second part covers 15 countries and territories in East Africa and the third covers 12 countries in Southern and Central Africa.

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For country-by-country information on internet, telecoms and computing in English go to: http://www.afridigital.net

L’edition mensuelle en francais: L’edition mensuelle en francais de Balancing Act’s News Update donne des informations sur les derniers developpements en matiere de Telecoms, Internet et Informatique en Afrique. Si vous voulez vous abonner a News Update, envoyez simplement un message en francais "Je veux m’abonner à l’édition en français de Balancing Act’s News Update" a info@balancingact-africa.com. Si vous voulez annuler votre abonnement, il suffit d’envoyer un message en francais "Je veux annuler mon abonenment à l’édition en français de Balancing Act’s News Update" a la meme adresse email.

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ISSUE NO 332

Kenya begins the countdown to cheap international fibre

It’s like waiting for a matatu. You wait for ages and none come along. But just when you’re about to give up hope, three come along at the same time, all trying to come to a screaming halt in front of you. Kenya now has three (or more) potential international fibre projects that could be complete within 12 months. Each one is loudly proclaiming that it will deliver cheap international bandwidth. Russell Southwood took the temperature in the market last week about what the impact of this bandwidth will be upon the market.

The Kenya Government has signed an MOU to build a fibre link to Fujairah in the UAE currently costed at Ksh5.7 billion. The construction and supply contract will be awarded early next year and the project, dubbed The East African Marine System (Teams), will be ready by November, according to a joint statement issued by both parties from Dubai. Many in the sector believe that it will be more like 19 months or more before completion.

The Kenya Government will have a 40 per cent holding in the project, Etisalat 20% and the remaining 40% will go to investors in the East African region. The Government has said it will organise an IPO on the Kenyan Stock Exchange. Several Kenyan companies have expressed interest and one said that the Government had told them it would “guarantee their loan”. The details of the finance package have not yet been settled but it is unclear where the Kenyan Government will raise its 40% from. Will the World Bank simply shift a portion of its EASSy funding to the new project as many think likely?

The Government’s commitment to a 12 month schedule is a bold move but one that must lay them open to a certain amount of scepticism. The tender for expressions of interest was only issued 2 weeks ago and Government timetabling is notoriously slow compared to the private sector. Apparently the Private Secretary has been telling interested parties that the Government wants prices comparable to those to be found in India in 12 months time. This benchmark has been set in order that Kenya will be able to compete in the international outsourcing market.

Apparently a number of interested parties said that they would put up all the money to build it if they could have a monopoly and he sent them away disappointed. But more worryingly one interested party told us that it could only get involved if it also allowed Telkom Kenya to be a shareholder.

The next international fibre project is KDN’s and it has now signed its contract with Flag Telecom. Its link from Mombasa will terminate in an undersea junction in international waters off of the Yemen. It says the link will be fully operational in the first quarter of 2008, just 15 months away. The company believes that it will come to market with capacity at $500 per mbps pm but that the price of bandwidth will go up to those wanting to invest as time passes. In other words, for those who commit early prices will be lowest and for those who come in late, prices will go higher. It also stresses that its landing station at Mombasa will allow other carriers to co-locate there charging only electricity and services at cost.

So this leaves the third project EASSy looking as if it will be the third runner. NEPAD appears to have made little more progress on persuading more African Governments to sign its political protocol. And whilst the members of the EASSy consortium (that still includes KDN and Telkom Kenya) are still moving things forward, there remains a disconnect between the political and commercial ends of the project. If both of the above projects go ahead, there is clearly much less need to build the Mombasa-Djibouti section of the route and it has to be said that both of the above projects have better international connection points.

As if three were not enough, Ethiopia’s ETC has now had its international fibre connection working effectively for two months via Port Sudan and Saudi Arabia. But because it is landlocked and it had endless fruitless arguments with Djibouti Telecom over control of a possible fibre link, it wants to find a second international fibre connection. Therefore it is in serious conversations with both of Kenya’s fibre network operators about connecting to the Mombasa links when they are ready. If this goes ahead, both it and Kenya will then have two international fibre links.

Because the process of getting the international fibre to Kenya has been both confusing and “on-off”, everyone in the market (including customers) have understandably not really grasped the impact of its arrival on their businesses. Until now ISPs and satellite resellers have largely been in the businesses of living on the margin they make between buying and selling bandwidth.

These margins have been kept high as they have concentrated on selling to comparatively few customers. Ironically it has been a high-price, low volume business where their primary commodity – bandwidth – has always been in short supply, not least because some of them increased their margin by contending it as much as possible. This has meant that bandwidth quality is often variable at best for those not paying “top dollar” for a premium service.

If you argue that international fibre prices should be low price, high volume, then the national business model changes: what’s sauce for the goose is sauce for the gander. Bandwidth becomes cheap and plentiful at a sub $1000 threshold. The margins that can then be charged make it difficult for those who are not operating at volume to stay in business.

However it does now open up opportunities for new services, content and applications that can be sold to customers who should now be paying European prices for real broadband connections (1-2 meg upwards) rather than the paltry 64 kbps they are currently receiving. There are at least 500,000 households in Kenya that are at an income level that make them potential targets for broadband. It would take only half of those households to sign up for there to be the beginnings of a very different market.

The real sign that the market has not “got it” is that some key ISPs are not passing on the information about these soon-to-be cheap prices but are seeking to protect their high margins by telling customers higher prices. A heads-up, guys. The sector is a village and news will get round quickly and we’ll encourage the circulation of this price information. The market’s about to change, get ready to change with it.

At the national level, there is now a third source of fibre capacity. Jamii Telecommunications has signed an agreement with the Kenya Light and Power Company (KPLC) to sell an STM1’s worth of its fibre capacity in Nairobi and Mombasa, with KPLC saying that it will triple its capacity shortly. Two other companies – CTN and Cable Vision – have been granted a licence to sell KPLC’s capacity and it is telling (in terms of the argument above) that both are in the video download and pay-TV business. Not so far afield, Tanzanian power utility TANESCO is currently building out fibre capacity and has invited bids to sell this capacity. Again KDN is poised to make a fibre connection to Tanzania.

However a recent ping on the Kampala-Nairobi route shows that neither KDN nor Telkom Kenya has got its fibre route operational. KDN is promising it will be operational by the end of first quarter 2007 and that prices will be 20% cheaper.

Elsewhere in the market, the new VoIP operators are finding it difficult to get interconnection agreements and to get proper service from interconnect service providers. Telkom Kenya is charging absurdly high prices but has at least reached interconnect agreements. Nevertheless the new fixed wireless operators – Flashcom and Popote – are having difficulties: customers are unable to receive or make calls to certain countries. Apparently anyone who calls a customer number of these fixed wireless operators from Germany gets a number unobtainable.

Access Kenya’s Yello VoIP service has been aimed at corporates and has attracted 250 customers who generate 120,000 minutes a month. But it has had difficulty getting interconnection agreements with the mobile operators. It made a complaint to regulator CCK in April and became so frustrated that it said it would run an advertisement publicising the position. Safaricom came back to the table but Celtel refuses to enter discussions, saying that it will do so in its own time.

Kenyan ISPs are under heavy pressure from all the new operators. Flashcom and Popote are taking more money from data than voice at the moment as customers are primarily signing up for cheaper Internet access. Also the introduction of EDGE services by Safaricom is eating into their high-end customers: one ISP’s CEO admitted privately that he was losing hundreds of customers a month to these new competitors. The challenge for everyone in the market will be whether they can take the soon-to-arrive cheaper international bandwidth and use it to transform the market.

ISSUE NO 332 TELECOMS NEWS

INDEX

NUMBER PORTABILITY IS LIVE IN SOUTH AFRICA

This week saw South Africa become the first country on the continent to offer mobile users number portability. Predictably some of the mobile operators – most notably Vodacom – were complaining loudly at the cost. Elsewhere portability has been a contributory factor in creating greater competition and lower prices for consumers.

So far few people have used the R300m system designed to let cellphone users hop from one network to another and take their number with them that it has cost Vodacom R1m for each customer to do so.

In the first three days of number portability, Vodacom welcomed 60 new customers and lost 40 to the rival networks. But they are the most expensive customers it has ever won and lost, since Vodacom contributed R100m towards the system, meaning each person had cost the company R1m to handle, said CEO Alan Knott-Craig last week.

The effect was negligible given that Vodacom signed up an average of 29,000 more subscribers every day -- either first-time users or users defecting from another network without taking their number with them.

About 2,300 other people have signalled their intention to port to Vodacom's network within the next 30 days, with 230 planning to leave. Knott-Craig said if those figures did not pick up significantly the whole process would have been "a hell of an expensive exercise in futility".

The advent of number portability went by almost unnoticed and was such a non-event that Knott-Craig had needed to push his managers to compile the statistics for release when Vodacom issued its financial results figures yesterday.

Other networks would not comment on how many customers had applied to port. Virgin Mobile's Nicholas Maweni said the network "had seen huge numbers of people move to Virgin, and this is obviously just the beginning".

MTN said the process was running smoothly, with Bernice Samuels, its GM for strategy and marketing communications, saying: "Customers joining the growing MTN network are doing so comfortably, without glitches."

Number portability was demanded by the Independent Communications Authority of SA (Icasa) to prevent people from being locked into one network because they did not want to relinquish their number.

Virgin Mobile lobbied for the service to be introduced even before it launched in SA so it could sign up higher-spending contract customers unwilling to sacrifice their number. Cell C also urged Icasa to speed up its implementation, believing its smaller customer base gave it more to win and less to lose than its larger rivals.

None of the networks charge customers to join their networks, despite the switch technology costs. Research house World Wide Worx expects fewer than 500,000 people to port their numbers over the next two years as contracts committing them to one of the networks expired.

 (SOURCE: Business Day)

KENYAN GOVERNMENT DARES ECONET TO SUE OVER GSM LICENCE

Differences between the Kenya government and Econet Wireless International, bubbled to the surface when the Permanent Secretary for Information and Communication Dr Bitange Ndemo told the firm's executive director Zachary Wazara to sue if he felt short-changed.

Dr Ndemo, who was meeting Wazara in his Nairobi office, was responding to his complaint over the Communications Commission of Kenya's (CCK) failure to allocate transmission frequencies and network codes to the South-African based firm

According to the PS, the licensing process is guided by certain conditions, including the payment of licence fees.

"In regard of Econet Wireless for a third GSM licence, we have so far received $15 million, with a balance of $12 million. The government cannot honour promissory notes." The outstanding $12 million was paid by Econet's local partners, Kenya National Federation of Co-operatives (KNFC), in a promissory note, underwritten by Econet Wireless International.

The Commission has not demanded the payment of the balance due to a litany of law suits that have surrounded the matter over the past two years, said Dr Ndemo. But according to Wazara, when KNFC failed to honour its part of the bargain, Econet Wireless said it was ready to pay the balance, but it could not do so because the former Minister for Information and Communication Raphael Tuju had cancelled issuance of the GSM licence.

Speaking to The EastAfrican last week, Wazara said his 30-day notice to the CCK to award the firm network codes still stood, failing which it would file a damages claim.

"We'll also be seeking a court injunction to stop the second national operator (SNO) from rolling out both landline and mobile services in Kenya," he said. But Dr Ndemo said, "The SNO licence has nothing to do with the third GSM licence."

The Dubai-based Vtel company was recently awarded a combined licence for US$169.7 million to operate a fixed-line network, a mobile service and Internet services in the country. Econet was issued with the third mobile telephone operating licence, but cannot roll out its network because of a legal tussle between it and CCK.

But Wazara says it is the KNFC and not Econet Wireless that has sued CCK. And he said KNFC is no longer part of the Econet Wireless consortium. "KNFC disqualified itself when it failed to meet its part of the equity bargain. We've already identified another investor who is ready to take up the KNFC shares." KNFC went to court in September, asking CCK to deny Econet Wireless the frequencies over the dispute on local shareholding.

Econet won the licence in 2004, but a court case filed by KNFC barred CCK from issuing the licence. However, last month, the court ruled that CCK could issue the licence if it so wished.

Last week, CCK Director General John Waweru said the commission would be willing to grant network codes and transmission frequencies to Econet immediately they paid the outstanding amount.

(SOURCE: The East African)

VODACOM'S TOUGH CALL AFTER BELATED EXPANSION NOD

There is a bittersweet tinge to the confirmation that Vodacom finally has shareholder approval to go forth and multiply. For years Vodacom has watched in frustration as rivals MTN, Celtel and others enjoyed massive growth by setting up cellular networks in African countries that nobody else had bothered to tackle.

Eventually, CEO Alan Knott-Craig admitted that when its 50% owner deigned to end the constraining shareholder deal that thwarted its ambitions, it would probably be too late. Nigeria, boasting Africa's largest pent-up demand, is already fought over by four players. Every country except Ethiopia has at least two networks, and Middle Eastern predators waking up to Africa's potential have pushed up the cost of acquisitions to unjustifiable highs. Nevertheless, Knott-Craig is still prepared to have a go.

And Vodafone and Telkom clearly believe in his abilities, as his contract has just been extended to 2009.

Whether the belated encouragement to head north will achieve much is debatable. Knott-Craig hankers after buying a regional player, but if such a company is up for sale, oil-rich Arabs will be sniffing around too. And he will not jeopardise sound economics for the sake of glory. This may restrict Vodacom to smaller acquisitions of players in individual countries.

To hedge its bets, Vodacom is paying huge attention to improving its data and mobile TV services, believing that mobile TV will ultimately become the second-biggest revenue generator after voice calls.

Meanwhile, shareholders Vodafone and Telkom have agreed to dilute their stakes so Vodacom can gain much-needed black shareholders Bidders are likely to include a group of black hi-tech professionals led by Nkenke Kekana, a former Telkom official and former chairman of the parliamentary communications committee. Another potential bidder is Telkom's former chairman Nomazizi Mtshotshisa, who just resigned with two years of her contract still to run -- possibly a nicely timed move freeing her to come back as a black investor in Vodacom.

(SOURCE: Business Day)

MUGABE DEMANDS AGENCY, PROFIT SHARE FROM TELECEL

After failing in his clandestine bid to buy a stake in Telecel Zimbabwe, Leo Mugabe is now demanding that the telecommunications company surrenders part of its profits to him. He is also demanding a contract to literally run Telecel Zimbabwe's technical services department which includes base station installations, maintenance and network expansion.

Mugabe, who has been fighting for a share in Telecel Zimbabwe for the past five years, wants the company to surrender 1% of its annual revenue to his company, Integrated Engineering Group (IEG). He also wants a contract to recruit technical staff on behalf of Telecel Zimbabwe. Mugabe's renewed pressure comes after his clandestine bid to acquire 11% of Telecel Zimbabwe from Telecel International collapsed four weeks ago.

His attempt to open negotiations flopped after it emerged that he did not have permission from the Empowerment Corporation which owns 40% in Zimbabwe's third mobile cellular firm to undertake such a deal. Mugabe claimed in his offer letter that he had permission from the Empowerment Corporation to buy the stake from Telecel International.

Telecel International however told Mugabe that negotiations would not start unless he proved that he had permission from Empowerment Corporation. In the latest overtures, Mugabe is threatening to sue Telecel if they refuse to give him the contracts and a share of the profits.

He is citing a 1997 agreement which he said entitles him to part of the profit and a technical management contract. Mugabe's lawyers, Debwe & Partners, wrote to Telecel on July 25 instructing them to stop "recruiting technical staff directly without our client's consent".

"Generally, you have continued to carry out intricate technical services projects including expansion of your telecommunications infrastructure and network without the services of our client, as your appointed technical partner and project manager," said the letter. "You have also failed and/or ignored completely to pay to our client the annual fee of 1% of the total revenue earned." The letter also said Telecel must stop using any other contractor for technical services.

Mugabe refused to comment when contacted to clarify the issue. "Ini shamwari handina comment. I would rather not comment on the issue," said Mugabe before hanging up. Sources at the company said Mugabe's demands came after Telecel Zimbabwe spurned his offer to buy them telecoms equipment for their latest network expansion programme.

In a letter dated July 14, Mugabe said his company IEG had been approached by international companies that wanted to sell network equipment to Telecel Zimbabwe.

He said IEG would be the go-between for Telecel and the suppliers. He also offered to provide financial assistance for the purchase of the equipment. Sources said Telecel refused the offer and went ahead to acquire equipment using internal structures. This, sources said, prompted Mugabe to write the letter of demand.

(SOURCE: Zimbabwe Independent)

NIGERIA WILL BE AFRICA’S LARGEST PHONE MARKET

Nigeria is set to take over from South Africa as the largest mobile phone market in Africa by the end of 2007.

This information was disclosed by Informa Telecoms & Media's World Cellular Information Service (WCIS),a searchable on-line database providing a constantly updated and accurate source of research data on the wireless industry worldwide. .According to the information service, Mobile subscriptions in Nigeria will exceed 30 million at the end of 2006 and 35 million in South Africa. Informa also forecasts 44 million users in Nigeria and 40 million in South Africa at the end of 2007. Nigeria according to the statistics released will then account for 19% of Africa's total mobile users up from 14% at the end of 2006. Nigeria is also expected to add 13 million subscriptions over the year 2006, an increase of 44% compared to the net additions recorded over 2005.

According to Devine Kofiloto, Principal Analyst at Informa Telecom's and Media, "With an estimated 130 million inhabitants, Nigeria is Africa's most populated country. Despite a high yearly growth (181% over 2004 and 96% over 2005), the country's penetration rate was still at 19% in September 2006 compared to 77% in South Africa at the same period. Nigeria is also a very competitive market with 4 GSM players and 5 CDMA networks actively involved in the mobile field".

As of September 2006, Nigeria counted 25 million mobile users. MTN lead the market as it held a 41% share. Globacom and Celtel controlled respectively 29% and 24% of the market, while M-Tel was at 4% and CDMA networks represented 2% of all the mobile users in Nigeria.

(SOURCE: This Day)

COPPER THIEVES CONTINUE TO BE A PLAGUE FOR AFRICAN TELCOS

This week, there are three further reports of damaging copper cable thefts from Namibia Telecom, Uganda Telecom and Telkom Kenya.

Telecom Namibia says it has suffered losses amounting to N$760 000 this year through acts of vandalism and copper wire theft. Telecom's senior manager for communications, Oiva Angula, said copper wire theft was on the increase, resulting in more telephone system failures in some parts of the country.

"In the past 11 months, over 26 copper theft incidents were recorded, and due to this, hundreds of subscribers were left without communication for days," he said. Most of the thefts occurred in the surroundings of Rundu, Dordabis, Swakopmund, Usakos, Otjiwarongo, Okahandja, Okatope and Windhoek's Hosea Kutako International Airport. Telecom Namibia has now joined forces with the Namibian Police to help prevent theft, identify stolen copper wire and arrest criminals, including their accomplices.

"The public too could play an important role in assisting in both the protection of these public assets and apprehension of such criminals to prevent the immeasurable inconvenience brought about when the telecommunication lines are interfered with," Angula said.

He called on members of the public to call the nearest Police station or Telecom Namibia whenever they notice something wrong. "Telecom Namibia pays handsome rewards to any member of the public for information that leads to a successful conviction or the recovery of stolen assets.

In the meantime in Uganda, power and telephone cables worth sh280m were recovered at Mpoma sub-county in Mukono in an operation aimed at curbing power and telephone cable vandalism. Umeme, Uganda Telecom (utl) and the Police conducted the operation. Four tonnes of dismantled cables were found in tightly-guarded and fenced premises.

Umeme's investigating officer Fred Masinde said the arrested suspects would help reveal where the cables are sold. "Electric and telephone cable thefts are on rampage since the year began," he said.

In Kenya, there were reports of cables being cut at the northern end of Waikayi Way, leading to service outages. Apparently police managed to detain a gang of copper thieves recently but did not have sufficient evidence to arrest the “Mr Big” who is behind a spate of similar copper cable thefts. A recent case showed that once stolen the copper is shipped by container to China.

(SOURCE: The East African Standard)

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IN BRIEF:

- Airtel Seychelles has set up its second international gateway at its headquarters in Providence, doubling capacity in response to increased international voice and data traffic. The new gateway operates via a different Intel (IS902) satellite than Airtel's existing antenna, and was supplied by India's Bharti Broadband, part of the telco's parent Bharti Group.

- The Bureau of Public Enterprises (BPE)  completed the reform process of the Nigerian telecommunications sector with the formal handing over of the Nigeria Telecommunications Plc (NITEL) and its subsidiary, Mobile Telecommunications Limited (Mtel) to the successful core investor, Transnational Corporation of Nigeria popularly known as Transcorp. The BPE boss disclosed that Transcorp having completed payment of the first tranche of $500m, representing 51 per cent shares of the company and having also met other key conditions for the take-over was being handed over the reigns of management.

- The South Africa government's announced this week that local cellular operators will now be allowed to internationally self-provision – effectively breaking Telkom's stranglehold on international connectivity. However, as cellular operators appear keen to keep international calling prices high, this move may have little impact on the market in the short-term.

- Gabon Telecom’s privatisation is still on the agenda. The tender applications are with the Finance Ministry and should have been opened by 31/10/06. It has been reported that bids came in from Morocco, South Africa and a German company in partnership with BGFI, a local bank.

- Kenya’s Safaricom is to launch an Mcommerce service and has applied for a banking licence.


TELECOMS, RATES, OFFERS AND COVERAGE

- Multi links,Nigeria, a private telephone operator has unveiled the first mobile phone -  the Motorola V3M, RAZR -  to run on a CDMA network in Nigeria. Multilinks stated that the Motorola Razr CDMA phone is expected to give customers, existing and potential style with high tech functionality that is expected to revolutionize phone usage.

- Tariff on telephone calls of the Nigerian Telecommunication Limited (NITEL) have been reviewed. A minute local/urban call on fixed and wireless services is now to attract N13.65 at peak periods andN12.01 at off-peak periods. National calls now attract N16.20 and N14.26 at peak and off-peak periods. This show a decrease in the cost of national calls and an increase in the cost of local calls to reflect the company's tariff rebalancing strategy in response to the dictates of the telecommunications industry"

- Celtel Nigeria, formerly V-Mobile, with vendors Ericsson and Huawei, has launched 3G services in the capital Abuja. The technology has been trialled in Abuja, Lagos and Port Harcourt since June. Celtel says that services including voice, high speed data and live video calls will initially be marketed to high and middle-income earners due to the high cost of handsets.

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ISSUE NO 332 INTERNET NEWS

INDEX

CAPE TOWN WISPS TO FORM INDUSTRY BODY AFTER REGULATOR ASKS FOR LICENCES

Cape Town-based wireless Internet service providers (ISPs) have a new sense of urgency to form their own industry body. This comes after a number of them received letters from the Independent Communications Authority of SA (ICASA).

A letter was sent to eight wireless ISPs by the telecommunications regulator two weeks ago, asking for licence status, such as value-added network services, after complaints had been received about interference within the much used 2.4GHz and 5.8GHz spectrums.

Johann Botha, a director of Amobia, says his company was among those that received the letter, but he did not think it was confrontational. “It is rather an invitation to talk to us, but it has given a new sense of urgency to formulate an industry body, which although is coming out of Cape Town, will operate nationwide,” he says.

The first meeting of the 15 members is due to take place this afternoon, when a committee will be elected and a draft constitution adopted. The body is to be called Wireless Access Providers Association (WAPA). Uninet CEO David Jarvis says more details about WAPA will be released next week and this will include how many end-users the companies have on their books and the value of the industry.

“Although the old Telecommunications Act's licence conditions still apply until the new Electronic Communications Act regulations come into effect, the latter law does make provision for such representative bodies,” he says. Jarvis says complaints, such as those recently made public by iBurst, also prompted the realisation that WAPA was needed. He agrees the ICASA letter was not seen as confrontational. Botha says the industry would prefer to self-regulate. “We want to eliminate some of the cowboy elements without destroying the entrepreneurial spirit,” he says.

(SOURCE: ITWeb)

NIGERIA’S HYPERIA SELECTS MAGNAQUEST’S MQSUBSCRIBE

Nigerian ISP Hyperia has selected MagnaQuest’s Convergent Customer Management & Billing solution (CM&B), MQSubscribe . It will enable Hyperia to manage its Internet and Voice over Internet Protocol (VoIP) billing services and also support the increasing subscriber growth and value added services. MQSubscribe integration with network elements, mail server for provisioning and mediation of services will be a part of the implementation.

Sandeep Jayaswal, Executive Director, Hyperia Ltd said “Rating and billing of multiple services involves a number of challenges. MagnaQuest’s experience in providing such sophisticated solution to similar business models will enable us to handle these challenges. These strengths of MagnaQuest have convinced us that they can provide a cost-effective and customized solution that will suite our existing and future business model.”

POWERLINE TECHNOLOGY SUPPLIER GTS APPLIES FOR SA PAY TV LICENCE

  Live transmission of quality TV and video requires at least 5Mbps, whereas South Africa currently only has 0.5Mbps actual speed — one-tenth of the speed required, says Patrice Lasserre, chief operating officer of Goal Technology Solutions (GTS).

Nonetheless, technology is advancing at such a rate that, notwithstanding the broadband deficit, service providers are preparing pay-TV and video-on-demand services that use broadband, but employ a range of carrier technologies.

GTS has applied to Icasa for a pay-TV licence, which charges users only for the programmes they watch.

The service proposes to bypass the infrastructure constraints of the local market by using electricity cables as the broadband carriers.

Lasserre says: “About 86% of SA homes have electricity, so by using the right injectors we can link homes to genuine high-quality broadband. Our technology has the necessary 5Mbs. We do not use a single technology, but adapt a combination of technologies according to the circumstances.”

For instance, it uses optical fibre cables to get to an electrical substation, and then links to individual homes by the electricity cables from the substation.

The model requires a certain density of homes in an area to justify the connection, and it therefore targets housing estates — and not necessarily high-income ones.

It has already rolled out small networks in the major urban centres, and has close to 1000 homes connected.

Unlike satellite TV, broadband TV will target not only the upper-income groups but also middle income and even lower.

Lasserre says that, at the moment, the bandwidth in some areas is not sufficient for real- time viewing, and people will have to download — “but in future, it will be real-time”.

Telkom is also readying a pay-TV offering and conducting trials. But for such services to make an impact in South Africa will require a complete overhaul of the system of charging by the amount of bandwidth consumed — at least for new services that require large downloads and long periods of continuous throughput.

Whatever speed of connection a network provider promises, the end user is likely to enjoy only 40% to 50% of that speed due to “latency”, according to Nick Keene, country manager for Citrix Systems Southern Africa.

Keene explains that the Achilles heel for wireless broadband is its reliance on Internet protocol (TCP-IP) which is approximately 38 years old. “Because it has proliferated worldwide , we are stuck with it. It has not been significantly changed, other than additional service standards in the form of RFC standards. While other technology has a life span of only two to three years, TCP-IP remains the same,” he says.

 (SOURCE: SundayTimes)

DATAPRO ENTERS 3G/HSDPA MARKET TO OFFER BROADBAND INTERNET

Datapro has decided to tap into the mobile broadband market and will now be offering 3G/HSDPA services to its customers. Simon Butler, product manager for broadband solutions at Datapro, stated that, “this move comes as part of the company’s strategy to offer a complete range of broadband services. There exists a big demand for mobile data solutions and this offering perfectly addresses this need.”

Mobile broadband offerings have become a very popular choice amongst South Africans and providers are quickly realizing that the future growth of this market has huge potential.

One of the major reasons why mobile broadband has become so popular in SA is that the price for a fully mobile service is comparable to the fixed line DSL offerings on the market, which is not the case overseas.

Whilst the price quickly jumps for high usage customers using mobile services, for people wanting connectivity for basic online activities, like emailing and web surfing, 3G and HSDPA are good alternatives.

Butler also alluded to the fact that many South Africans are increasingly choosing to avoid Telkom due to poor customer care or poor service delivery.

He added that “while ADSL and other broadband solutions offer similar services, this solution fills the gap where these services are either not available or where customers choose to be completely independent from services offered by the incumbent.”

(SOURCE: MyADSL)

IN BRIEF:

- Côte d’Ivoire Télécom (CI-Télécom) is reportedly planning a XOF1.5 billion (USD2.9 million) investment in ADSL services. Local newspaper Le Patriote quotes the telco’s CEO Bruno Kone who outlined the plans for an expansion of its high speed internet networks. CI-Télécom had 244,000 fixed line subscribers at the end of 2005.

- Djaweb, Algeria-Telecom's subsidiary for the Internet, will launch ADSL before the end of December with a capacity for more than 100,000 lines, CEO Houria Atif told APS Saturday. This platform, with 127,000 ADSL lines, aims "at contributing to reinforce ADSL in our country on the one hand, and that of the company on the national internet market, on the other hand," she said.

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ISSUE NO 332 COMPUTER NEWS

INDEX

FEDERAL GOVERNMENT APPROVES E-PASSPORT FOR NIGERIANS

The Federal Government has approved the production and imple-mentation of the Electronic Passport in the country to meet the standards of other countries of the world.

The approval was given during the weekly Federal Executive Council (FEC), meeting presided over by President Olusegun Obasanjo at the presidential villa, Abuja, yesterday as was requested by the Ministry of Internal Affairs and the Comptroller-General of the Nigeria Immigration Service.

  Briefing State House correspondents, the Minister of Information and National Orientation, Mr. Frank Nweke Jr, said one of the reasons deliberated upon before the approval was given was the fact that the issue has been on the drawing board in the last four years.

According to the minister, Nigerians have been finding it very difficult to be admitted into entry points of some countries where the electronic passport are being implemented hence the approval of the new scheme to be carried out by the Nigerian Security printing and Minting Company and the Irish Technology of Malaysia

(SOURCE: Daily Trust)

SA’S ICT R & D SPENDING IS NOT TURNING INTO PATENTS

While SA is spending on R&D, this is not filtering through to patent level. Dr Andrew Paterson, research director of the Education Science and Skills Development Research Programme at the Human Sciences Research Council, says research and development is happening in SA, but the country lags behind its peers in patented outputs and there is no clear idea of which skills are needed for what type of output.

Paterson, who posted a draft discussion document online in October, says there is also no indication of whether computer science graduates are contributing to research outputs.

In 2003/4, just over R944 million was spent on R&D in ICT, he says. SA intends boosting R&D output to 1% of gross domestic product by 2008. Two years ago, the country spent 0.81% of the country's revenue on R&D.

Just under 20% of all research and development spend by companies in 2001/2 – with a similar figure the following year – was spent on ICT. However, there is no indication of what value is added to the country through this expenditure.

Paterson's analysis “uncovered a disappointingly flat R&D performance in the South African ICT sector as measured in terms of domestic investment and international patent registrations, with some highlights in the sub-field of software development”.

“This performance did not give strong reason to assume heightened demand for skills in the period from the early 1990s to about 2002,” the paper says.

Paterson says there is no doubt that R&D is happening in the sector, but seems to be happening at company level and there is no resultant flow through into patents. “We should look at whether SA wants to encourage R&D that leads to income generation through patents.”

Looking at the European Patent Office, Paterson notes in the paper that ICT-related patents are growing more rapidly than overall applications, with the notable exception of ICT patents locally and in Japan.

Paterson has not ascertained the level of demand for R&D, nor for the level of demand of post-graduate computer science professionals, as a result of most of the research taking place in-house. This, he says, is an area he intends researching further.

While innovation could occur outside of the strict computer science professional arena, the level of post-graduate professionals when compared to those in similar fields such as engineering is not encouraging.

Paterson says for every 100 undergraduate physics degrees, there are 40 post-graduate qualifications. This number drops to 29 in engineering, and only 18 in computer sciences. Looking at conversions from a bachelor's degree to a PHD, Paterson notes that engineering has a conversion ratio of 1.63%, while computer sciences has a ratio of 0.26%.

One conclusion that could be drawn is that R&D potential in local ICT enterprises could be constrained by a lack of suitably qualified professionals. However, investigating this angle was not feasible in the discussion document, it states, because “without reliable information describing demand, there is no means of assessing the adequacy of the supply of R&D skills from higher education”.

Paterson says even through innovation can be derived from different sources, computer science as a discipline, is not contributing to the community of R&D at a level he would like to see.

An explanation for this, he says, is the skills shortage that results in these graduates being “snapped up” by the sector and not having time to continue their studies.

(SOURCE: ITWeb)

KNOWLEDGETREE RELEASES TECH PREVIEW

The Cape Town-based developers of open source document management system KnowledgeTree, have released a technology preview of the forthcoming version 3.3. The team says the new version has significant user interface enhancements to make the system easier and simpler to use.

"KnowledgeTree's ease of use and simplicity are continually identified by our customers and the open source community as one of the product's greatest strengths," said Daniel Chalef of KnowledgeTree developers Jam Warehouse.

"With KnowledgeTree's new AJAX-based dashboard, improved forms handling and other major usability enhancements we want to continue making document management as easy as possible," he said.

Aside from the new AJAX-based dashboard, new user interface layout and improved forms handling, the KnowledgeTree 3.3 Technology preview also ships with a new Workflow Wizard. The wizard assists in what is traditionally a complex admin task to make it more accessible to users not experienced in process design.

The new version also features improvements to the KnowledgeTree authentication scheme, allowing users to be created on first log in from authentication sources such as LDAP directory servers.

All of these enhancements are available in KnowledgeTree Open Source Edition.

KnowledgeTree, built on the popular open source LAMP (Apache/MySQL/PHP) stack, is available in three editions: KnowledgeTree Enterprise, KnowledgeTree SMB and KnowledgeTree Open Source. The commercial editions provide all the functionality of the open source edition and offer additional functionality including a WebDAV integration server and client tools for Windows.

(SOURCE: Tectonic)

IGNORANCE OF E-WASTE PUTS CORPORATES AT HIGH RISK

Many of SA's corporates are apathetic towards the environmental legacy that is being created through incorrect e-waste management.

That is according to Allan Werth, CEO of African Sky, who says failure to comply with legislative requirements surrounding the secure disposal of electronic waste (e-waste) puts companies at high risk.

  “SA’s e-waste volumes are increasing exponentially, as they have in the rest of the world,” he says. “Legislation, both internationally and in this country, holds organisations accountable for the damage they inflict on the environment, and the penalties can run into millions of rands.”

  Werth will tackle the controversial e-waste issues facing SA’s corporates at the Electronic Waste Management conference taking place at the CSIR International Convention Centre in Pretoria on November 27 and 28. In addition, Ian Watson, operations director of UK-based TES-AMM, African Sky’s international recycling partner, will discuss ways for developing countries to meet legislative requirements.

  As the only ISO 14001-certified specialist e-waste solution company in SA, African Sky says that it is well positioned to provide insight into the recycling and secure destruction of electronic waste – in SA, Africa and globally. A BEE organisation, African Sky says that it has been in operation for the past 24 months, and has all the local and international accreditation to meet the full spectrum of e-waste requirements.

(SOURCE: ICT World)

ISSUE NO 332 ON THE MONEY

INDEX

ORASCOM TELECOM’S REVENUE UP BY 35%

Orascom Telecom Holding (OTH) has announced its consolidated results for the third quarter 2006. It has posted a 37% increase in third quarter EBITDA as its group mobile subscriber base leapt 83% year-on-year to more than 46 million.

Revenues in the three months ended 30 September rose 35% to EGP18.52 billion (USD3.216 billion), pushing EBITDA up to EGP8.295 billion and net income up 12% to EGP3.203 million.

At the end of September its total subscriber base across all operations reached 46.52 million, up from 25.49 million a year earlier. Orascom has stakes in mobile operators in Algeria, Pakistan, Egypt, Iraq, Tunisia, Bangladesh, Africa and the Republic of the Congo (Brazzaville).

Orascom Algeria subscribers base (service brand name Djezzy) grew by  62% from 6.1 million to 10 millions (September 05 – September 06). The company also said that it has acquired an additional 7.91% stake in its Algerian subsidiary from minority shareholders for USD399 million. The deal raises OT’s total stake, directly and indirectly, in Orascom Telecom Algeria to 95.6%.

In Egypt the subscribers base (service branded Mobinil) grew by 35% from 5.9 million to 8.1 million over the same period while in Tunisia, the subscribers base (service branded Tunisiana) grew by 42% from 1.9 million to 2.8 million.

In sub-Sahara Africa, Orascom’s overall mobile operations have declined because the company sold Libertis Telecom in Congo-Brazaville at the end of 2005. It also divested in its Congo DRC subsidiary branded Oasis Telecom.  The remaining activity of Orascom in sub-Sahara Africa is in Zimbabwe where it partly owns Telecel and recorded a growth of 11% from 129,809 to 143,829 subscribers.

BANKS PUT TOGETHER $80 MILLION TO BAIL OUT TELKOM KENYA

Cash-strapped Kenyan incumbent Telkom Kenya has been given the go-ahead to raise a considerable sum to bail it out after Vodafone gave the Kenya Government the go-ahead to offer a portion of its shares for sale. The company claims that it will be able to service the loan once it has got rid of 6,000 employees, considerably less than was originally proposed. Given its existing level of debt, the only strategy the company can have is that it will trade its way out of its current difficulties.

A syndicate of local commercial banks have just concluded the final stages of putting together a $80 million loan to the financially troubled Telkom Kenya to finance the second phase of retrenchment, which is expected to affect some 6,000 employees.

The largest loan by a local bank to a parastatal, the facility will be repayable in one and a half years. Included in the syndicate are Stanbic Bank, Barclays Bank, Standard Chartered and the Kenya Commercial Bank.

It is the second major loan to be advanced by local banks to the telecommunications sector. Last year, a syndicate of local banks advanced $160 million to mobile telephone company Safaricom Ltd to finance expansion and rehabilitation of existing infrastructure.

Since Telkom's balance cannot secure a loan of that size, Telkom has pledged 9 per cent of the shares it holds in Safaricom to guarantee the loan. The arrangers of the loan are convinced that Telkom should be able to service the loan from its cashflow once it sheds the 6,000 employees. It is estimated that once the lay-offs are effected, the company will be able to save an average of $3 million a month, which can then be used to service the $80 million facility.

Whether or not the facility will be disbursed will, however, still depend on a nod from Vodafone Plc, which - under a shareholders agreement signed in the year 2000 - has a first-right-of-refusal over the shares. The EastAfrican has learnt that the locals banks have made it clear to the government that they will not release the money without Vodafone's approval.

Vodafone - currently involved in negotiations with the government for its 9 per cent share, is likely to see an opportunity to press the government for concessions in its bid for more control of the company. A team from Vodafone is expected in Nairobi this week to continue the negotiations.

Although the first set of negotiations between the parties did not yield much, it is unlikely that the British company will want to block the $80 million facility to Telkom and risk bad blood with its partners.

Still, the company will want an arrangement that will allow it to take control of the most profitable business in Kenya.

Thus, its strategy will be to give concessions to the government depending on how much the government is prepared to give in return.

What remains contentious is the price the British company will want to pay for 9 per cent of Safaricom. Lately, the rhetoric coming especially from Ministry of Information and communications officials has been more and more strident, suggesting that the government is prepared to start negotiations with third parties in the event that talks with Vodafone fail.

Communications Minister Mutahi Kagwe has also overruled the possibility of an Initial Public Offer (IPO) by Safaricom. Yet indications are that for progress to be achieved, the parties will need to leave all options open. Experts say that an IPO may just be the best way of resolving the disagreement over the pricing of Safaricom shares.

(SOURCE: The East African)

SOUTH AFRICA TELKOM EARNINGS UP BY 11%

  Telkom posted a 10,6% rise in first-half earnings today - at the top end of forecasts - and said a pact blocking its cellphone unit Vodacom from expanding in Africa had been lifted. Telkom said headline earnings per share - which strips out certain capital, non-trading and one-off items - rose 10,6% to 874,7 cents in the six months to end September. Seven analysts polled by Reuters forecast headline earnings per share of 836 cents, with forecasts ranging from 790 to 909 cents.

Telkom said the UK's Vodafone Group had agreed to allow the companies' jointly owned South African cellphone unit Vodacom to expand anywhere in Africa except Kenya and Egypt, relaxing a shareholder pact that has hamstrung Vodacom's growth.

Profit growth at Telkom is slowing as revenues from its core fixed-line service shrink and rampant growth in SA's cellphone sector also starts to lose steam, leaving investors wondering where growth will come from.

Vodacom has also missed out on a scramble for high-growth African cellphone assets led by local rival MTN, so analysts said news it could now muscle into new markets was very positive for the company, and for shareholder Telkom.

"The results are pretty much in line with expectations at the operating level, although slightly better on headline earnings per share," said one Johannesburg-based analyst. "That's very positive on Vodacom and Vodafone," he said.

Telkom shares have gained 7,6% so far this year, lagging a 30% rise by the Johannesburg Top-40 index of blue-chips, due to murky growth prospects. The stock trades at about 8,6 times this year's forecast earnings according to Reuters data, while MTN trades at about 12,6 times.

Telkom CE Papi Molotsane told a conference call fixed-line revenues would probably fall in the second half of the year versus the first half as tariff cuts bite, although that would be partly offset by stronger sales at Vodacom. He declined to say whether headline profit would keep rising.

Telkom said it expected its full-year fixed-line EBITDA (earnings before interest, tax, depreciation and amortisation) margin to come in at the top end or slightly above guidance of 37-40%. Group EBITDA margin fell to 40,7% in the first half from 44,5% in the year-ago period.

Molotsane reiterated Telkom wanted to expand in Africa, adding the company would focus on data and on joint fixed and cellphone opportunities with Vodacom. He said Telkom was conducting due diligence on a number of possible acquisition targets on the continent but declined to give details.

Telkom said Vodacom was the main profit driver in the first half, with subscribers up 35% to 25,9 million, while net profit rose 30,4% to R3,1bn.

Vodacom's customer base in its key home market - which is maturing fast with only two more years of strong growth expected - rose 28,1% to 20,2 million, well ahead of its nearest rival MTN, which has 11,16-million customers in SA.

MTN remains the biggest operator in sub-Saharan Africa with 34,8-million subscribers thanks to its recent acquisition of Investcom and bumper growth in Nigeria. Telkom said operating revenue rose 7,3% to R25,147bn.

(SOURCE: Business Day)

PARACON BENEFITS FROM 'STRONG DEMAND' FOR IT SKILLS

Technology staffing supplier Paracon has pushed up its profit by more than a third after enjoying a "significant demand" for the hi-tech skills it places in both permanent and contract jobs.

Paracon's resourcing division generated 79% of its overall R635m turnover for the year to September 20, which was up 19% from R533m a year ago. Attributable profit jumped from R33m to R44m and headline earnings a share of 11,6c were up 36% from 8,6c. Its profit margin rose from 7,3% to 8,6%, triggering a capital distribution of 8c a share, up from 6c last year.

Paracon was the largest supplier of skilled technicians to the private sector and was well positioned to capitalise on growing demand, said CEO Mark Jurgens.

Global trends showed many technicians were looking for flexible contract work to gain wider experience and improve their skills, and Paracon could offer those opportunities, Jurgens said.

The downside was a national skills shortage that could inhibit Paracon's growth, he said, so the company had made some acquisitions to alleviate that.

Last month it had acquired rival recruitment specialist The Personnel Concept to boost Paracon's offerings to existing clients and to enable it to tackle previously untapped opportunities, Jurgens said.

At the close of its financial year Paracon also bought 34,6% of India's Nihilent Technologies so some of its work can be carried out offshore. Nihilent should contribute to Paracon's results next year by giving it access new markets and skills, Paracon said.

Paracon also bought a minority stake in Mondial IT Solutions last month to increase its skills in enterprise resource planning software developed by the German developer SAP.

A strict focus on cash management and strong cash flows has left R115m in cash on hand, despite paying out R23m in a capital distribution to shareholders in March and repurchasing shares for R18,7m. Jurgens expects organic growth to continue as trading conditions remain buoyant.

(SOURCE: Business Day)

IN BRIEF:

- An international satellite reseller is in the market looking to make acquisitions in sub-Saharan Africa.

- Steady improvement in Dimension Data's global operations saw the hi-tech group ratchet up its profit margins, clock up a net profit of $57m and hand out its first dividend. In Africa its operating profit rose from $43,4m to $62,4m. During the year Didata bought the 20% of Internet Solutions and the 51% of Plessey it did not already own, and established a presence in Nigeria and Kenya. Opportunities in emerging African markets and some public sector contract awards justified that expansion, said chief finance officer Dave Sherriffs.

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ISSUE NO 332 WEB AND MOBILE DATA NEWS

INDEX

MTN LAUNCHES INNOVATIVE ALL-IN-ONE VOICEMAIL-EMAIL SOLUTION

MTN has launched an all-in-one mail service called i-Mail (MTN Integrated Mail), a new fully integrated and flexible web based mailbox management service.

  The new i-Mail service is offered for free to all MTN contract subscribers with access to the internet. i-Mail gives subscribers the convenience of listening to, or viewing and managing Voicemail, Faxmail and Videomail online at the click of a mouse.

With i-Mail contract subscribers can also set up message notifications, message forwarding options, message playback modes, change passwords, block callers from leaving voice or video messages, enter numbers for personal assistant and fax, schedule reminder calls and configure “MessageMe” automated delivery options to any email address or MMS capable handset.

In future Enhanced Voicemail customers will also be able to record multiple greetings for different times of the day depending on if they are in meetings in the morning, at functions in the evening or taking a siesta.

By using the new i-Mail service users can personalize their Voicemail as well as “the option to receive your messages via MMS” which allows them to save time to by not having to call 100/111 all the time.

The service further allows subscribers to save messages on their laptop or PC, which is particularly handy for FaxMail users who would like to archive their faxes electronically for future reference.

All customers can now access this feature on the portal by following these steps:

Go to the MTN Portal ( www.mtn.co.za )
Login with your cellphone number and pin
Select ‘MyMTN’ drop down menu
Click on ‘Communicate’ link
Click on ‘i-Mail’

According the MTN their Customer Services and Service Providers will be able to assist with any issues arising from the registration process as well as loading the product and general network issues. This is the first service of this nature in the world, and it is encouraging to see that MTN is pushing the boundaries of service integration.

(SOURCE: MyADSL)

ISSUE NO 332 CONVERGENCE NEWS

INDEX

THE IMPACT OF DIGITAL BROADCASTING ON FILM DISTRIBUTION

Content originators and content distributors agree that a lot more work needs to be done to empower Africa's filmmakers. The emergence of mobile tv, and IPTV have not reduced the scope of filmmakers to earn a living from their creative work. According to various speakers gathering at the Sithengi Film and Television Market in Cape Town, New Media do not pose any threat to the survival of the industry as long as the content produced is of high quality.

In many overseas countries, people can now be lying down in bed but still watch their favourate programs such sports, news and music without switching on the television set. Music clips and news have proved to be very popular with viewers and more and more young viewers are making mobile TV and IPTV part of their entertainment experience. However, music remains the leader in terms of revenue and audience levels.

According to Jennifer Marshall of Vodacom, New Media have the potential to bolster the industry provided content producers keep up with developments in the mobile industry sector. Marshall also pointed out that Vodafone has been experimenting with live sports and news programs in the past months in order to make sure that what they are distributing is what the customers want. Vodafone has ventured into live events such as horse racing and football which have proved to be very popular with viewers.

Existing mobile phone brands are improving their offerings and will in the end prove to be commercially viable as long as people feel that what they are being offered meets their entertainment needs. Age and gender have not been very much the focus of New Media trends. They target all age groups and sexes but what has been apparent in the past few months is that the younger generation and male viewers dominate the use of New Media. In other words content producers must be aware of customer needs to be successful in the content producing sector, and try to target all age groups and sexes to maximize their audience reach.

According to Brennan Babb, Mnet's New Media Manager, developments in Online content distribution has enabled Dstv to reach out to many customers who reside in South Africa and abroad. For example, the KUDU club offers South Africans traveling abroad the opportunity to view South African content be it news or sports wherever they are in the world. Babb told delegates that infrastructure to launch new media broadcasting platforms will continue to improve and people must expect more in the near future. He said that digital playout facilities also need a back up system to become sustainable over a long period of time.

Babb pointed out that the task of distributing content using New Media platforms is a challenge. He said Dstv for example get their content from overseas networks and content producers send their programs via the Internet or via satellite. According to Babb video distribution is dramatically scaling down. He said that Dstv makes use of different techniques to acquire and distribute content. In fact Mnet has implemented a media assest management project to manipulate and repurpose content for New Media and satellite distribution.

He said that some of their files come via Telkom links from content providers and episodes are captured via satellite and then edited in line with the needs of Mnet. He cited an example of Fox and Disney world as two of the players who are driving many content giants to look to Online distribution mechanism for maximum returns on their investment. Furthermore, Mnet and Dstv create their play list for the week Online, and Dstv has made the viewing experience more entertaining by allowing viewers to skip advertisements by using the PVR which can fast forward or rewind programs. According to Babb, Multichoice is now busy doing tests with DVBH.

However, when content producers create content for mobile Tv and IPTV they must keep in mind the size of the text. Images for mobile TV and IPTV must be slightly larger than the images for traditional television. The coming of High Density Television (HDTV) and High Density Cameras will also improve the quality of content produced.

Jeremy Nathan also said that content is key and digital broadcasting has not shrunk the market but has made it more lucrative provided you have the right content that audiences want to see. Even though the uptake of New Media is faster than expected there isn't enough high quality content. That is why many content distributors are looking to home or personally produced content to distribute provided it has the right impact on the audience.

  However, there is a feeling among some customers that digital content distribution is not reaching them with the correct content and a need has arisen to come up with a new revenue model.

The youth are considered the future of mobile TV since they have now turned the tables against 50-60 year olds who were traditionally richer than the youth of their days. Today's youths have mobile phones and they attract a lot of advertising than their adult counterparts. To succeed in the mobile TV environment, product placement is the way to go not conventional advertising because viewing on the mobile phone is slack and people watch only for 7 minutes and as a result you can't put advertisements but place your product in the program, otherwise consumers will have to face higher viewing costs or more and more advertising.

Even though there is hope for success in the long term the only threat that remains is that of piracy. According to industry analysts billions of dollars are lost through piracy. Digital warehousing is the only guarantee that will make end-users account for using content that is not theirs and the warehousing model is likely to make sure that every part of the content that is downloaded and the identity of those downloading the content is recorded.

(SOURCE: Highway Africa News Agency)

In Brief

- Multichoice is now offering KBC Channel 1 and NTV all over Kenya on Dstv.

ISSUE NO 332 PEOPLE, EVENTS, JOBS, CONTRACTS

INDEX

PEOPLE

* The International Telecommunications Union (ITU) meeting in Antalya, Turkey has elected Dr. Hamadoun I. Toure of the Republic of Mali as its next Secretary-General, while Mr. Houlin Zhao of the Peoples Republic of China was elected Deputy Secretary-General.

* Steve Brookman and John Weyr have replaced Albert Mashi, Managing Director, NITEL and his counterpart in Mtel, Edwin Momife respectively. Both men are on secondment from British Telecom (BT), the technical partners to the Transcorp Consortium. Funke Opeke, former Chief Technical Officer at MTN Nigeria is now to take charge of NITEL as Chief Operating Officer while Gbenga Olulade is the new Chief Executive Officer of Mtel.

* MTN Nigeria Communications Limited has appointed Karl Olutokun Toriola as Chief Technical Officer. Before moving to MTN, Toriola was Chief Operations/Regional Officer for Vmobile Nigeria, (now Celtel) from June 2003 till July 2006.

* Maanda Manyatshe quit as MD of cellphone company MTN over a scandal involving allegations that he approved a tender without following proper procedures during his tenure as CE of the South African Post Office.

* Telnet Nigeria Limited has appointed Gbenga Odujinrin as the new group managing director. Odujinrin, currently managing director of iTeco Nigeria Limited, enterprise infrastructure and e-security solution arm of Telnet, will assume office as GMD in January, 2007.


EVENTS

- WIRELESS BROADBAND AFRICA –EAST AFRICA

29 November –1 December 2006, Hilton Hotel, Nairobi, Kenya

AITEC Africa is hosting the first Wireless Broadband Forums in Nairobi. Leading developers and suppliers of wireless technology are sending top experts to share knowledge with telecommunication operators, ISPs, network engineers and regulators in East and West Africa.

For full details, log on to www.aitecafrica.com

- WIRELESS BROADBAND AFRICA –WEST AFRICA

4-6 December 2006, Eko Meridien Hotel, Lagos, Nigieria

The West African Wireless Broadband Forums will provide a marketing and education platform to promote effective roll-out of wireless technology throughout Africa.

For full details, log on to www.aitecafrica.com

- BROADBAND SUMMIT 2007

26-27 February 2007, Southern Sun, Grayston, South Africa

South Africa faces a huge broadband demand, from all sides. However, the broadband access media and business strategies in South Africa still do not resemble the international standards. In order to reach these standards you as ISPs, mobile and/or fixed operators, need to assess the current and future potential of the African broadband market.

For further information visit http://www.iir-conferences.co.za/eventInfo.php?e=1202

- SMB ROADSHOW 2007 - MIDDLE EAST AND AFRICA

26th March 2007, Nile Hilton, Cairo, Egypt.

IDC's SMB Roadshow provides a comprehensive and trustworthy platform for discussing strategic IT issues directly impacting the SMB sector. Debate led by recognised experts and based on best practices and sound technology analysis provide objective and critical insights required by leaders in this sector. This event will target IT decision makers – by vertical industry sector - within SMBs across the region.

For further information visit http://www.idc-cema.com/events/smbeg07

- eLEARNING AFRICA 2007

28-30th May 2007, Kenyatta International Conference Centre, Nairobi, Kenya

The subject is Building Infrastructures and Capacities to Reach out to the Whole of Africa, reflecting the significant efforts of African countries to set up their national and regional ICT infrastructures to create access to education, training and services for all.

For further information visit www.icwe.net or call +49-30-327 6140


JOBS AND OPPORTUNITIES

* MGW R4 ENGINEER - MADAGASCAR

The company is looking at an engineer that has at least 5 years proven Network Management with emphasis on MGw R4 activities for the past 9 months in Telecom operation's environment, particularly Ericsson equipment. The person requires a highly developed latest technology experience on 3G networks. Mandatory skills, values and behaviours: Responsible, Accountable, Ownership, able to effectively work in teams, process oriented, excellent communication and relationship. Other required skills: Proven record on 3G MGw Fault finding, Configuration, Performance, Security Management. Capable to interact in different organizational levels of customer organization (from C level to Engineer level). Ericsson infrastructure experience and is a must.

For further information contact advertising@balancingact-africa.com

* 3G CPM ENGINEER - MOZAMBIQUE

The company is currently looking for a Senior 3G CPM with expertise in the following fields; 3G rollouts, Core, Radio. Applicant to be fluent in English and Portuguese.

For further information contact advertising@balancingact-africa.com

*CALL FOR PROJECT FROM THE COMMONWEALTH SECRETARIAT

The Commonwealth Secretariat is inviting governments, NGOs and academic institutions to submit project proposals that can help bridge the digital divide.

The call for projects comes on behalf of the Commonwealth Connects Programme, an initiative to improve information and communication technology (ICT) skills in the Commonwealth and use them as tools for development.

Projects can be submitted no later than 5 January 2007. For details and to download applications forms, visit http://www.commonwealthconnects.com/ and click on the 'Project Marketplace' link.

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INDEX

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News Update is a free e-letter produced by Balancing Act that covers African internet content and infrastructure developments, It goes out to government, the private sector, education and NGOs. To subscribe, send a message saying "I want to subscribe" to info@balancingact-africa.com


This page last updated on November 26 2006.

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