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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 342 African VoIP report reveals steady uptake of ip among carriers and grey market persisting despite price fallsThis week sees the publication of Balancing Act’s African VoIP Markets. This 170 page report provides the first overall assessment of the use of VoIP in African markets that looks at both grey market traffic and the steady conversion to IP by incumbent fixed and mobile operators. In order to give as fuller picture as possible of what is happening, the report’s authors have looked at all aspects of how VoIP impacts on African markets including: the structure of the African international wholesale market; the fall in international retail prices; the size of the grey market and the “value-chain” for grey market operators; the impact of legal VoIP on market structures and business strategy; the corporate transition to VoIP; the migration to VoIP and IP networks by carriers and ISPs; and the changing regulatory position on the continent. The key findings of the report are: - Despite considerable falls in international retail calling prices in many countries across the continent and the legalisation of VoIP in key markets, the existence of the grey market remains extensive in all African countries. The report provides retail calling prices for 2005 and 2006 as well as estimates of grey markets on a country-by-country basis. - Grey market operators tend to be young, IT-savvy and capable of reacting to rapidly changing circumstances. In any other circumstances, these would probably be qualities that any business sector in Africa might find attractive. The report looks at how the grey market value-chain works and the ways in which operators divide up their markets. - Where legalisation has taken place, the steady adoption of IP is driving changes in market structures with the entrance of new African VoIP service providers, particularly in Kenya, Tanzania and Uganda. Telco incumbents are seeking to adjust to new competitive circumstances by offering broadband and “triple-play”, both of which will fuel further adoption of VoIP. - The adoption of IP by fixed line and mobile carriers is proceeding more quickly than might immediately be apparent. A significant minority of carriers are now using IP at the trunking level or plan to do so within the next 12 months. The shift at the trunking and local levels has been driven by broadband roll-out, the adoption of “triple-play strategies” and the use of fixed CDMA phones. - There are currently eight countries where VoIP is more or less legal. 36 out of 54 countries and territories in Africa forbid the use of VoIP by regulation or by law. Of these 36 countries, 30 have only one international gateway. In the cases of Benin, Central African Republic, Sierra Leone and Zimbabwe, these countries have returned to a single international gateway licence in an effort to protect the revenues of their incumbents. The remaining six countries have either licensed an international gateway to a Second National Operator (SNO) or have licensed more widely to their mobile operators. - In a section on VoIP Futures, the authors identify VoIP peering, enterprise peering and low-cost IP mobile as areas that will get traction in African markets. During the completion of the report, JINX announced that it would offer South African VoIP operators a platform for peering. To see a full list of the contents of the report and a listing of its 28 tables, go to:
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VIVENDI’S MAROC TELECOM SCOOPS UP GABON TELECOMThe long and winding privatisation process for Gabon Telecom concluded last Friday with Vivendi’s Maraoc Telecom as the winner. There are two parts to the business: Gabon Telecom, the fixed line incumbent and its mobile subsidiary, Libertis. The sale will come as a relief to the Gabon government as the company has been under considerable pressure in the run-up to the sale. Maroc Telecom has bought 51% of the company. Moroccan Moustapha Laarabi has been named D-G of the group and Souah Thomas, currently PDG of Libertis has been named Président, Conseil d'Administration. This is the second successful Vivendi bid in sub-Saharan Africa after its recent purchase of Onatel in Burkina Faso. The company seems prepared to take on failing fixed line incumbents in order to gain lucrative mobile operations. This second purchase seems to signal Vivendi’s return to the region after its sale of its stake in Kencell to Celtel in May 2004. Gabon Telecom is one of three SAT3 Consortium members charging around US$15,000 per mbps per month for international connectivity along with Angola Telecom and Camtel. It will be interesting to see whether the new management will switch from a “high price, low volume strategy” to one of “low price, high volume” on international connectivity. CANADIAN SASKTEL GETS MANAGEMENT CONTRACT TO RUN TTCLCanadian SaskTel has been named as the new management contractor to run TTCL for three years “as a way of preparing Tanzanians to make a smooth and meaningful takeover after that”. Quite what form this privatisation would take was not made clear. Infrastructure Development minister Andrew Chenge told journalists last week that the company got technical score required for qualification. One priority would be investment in human resource development. Elaborating, the minister said: `Only 32 per cent of the 2,200 TTCL workers have an education level of Form Six onwards. There is a need to train the workers,` he said. He said the exercise that ended in the choice of the new managers involved twelve companies, adding: `Two of the companies that showed interest in running TTCL were from within Tanzania. They are Telecom Africa Tanzania Consortium and Rajan Industries Limited.` He noted that SaskTel won what was cut-throat competition and it was the government`s hope that TTCL would from now on perform as efficiently as expected of it `now it has been separated with Celtel Tanzania`. Last week the Telecommunication Workers` Union of Tanzania threatened to sue the government if it allowed the Canadian firm to take over the management of TTCL. Running the company in a financially effective way may well mean cutting the current workforce. (SOURCE: Guardian) MALAWI TO GET SNO AND THIRD MOBILE OPERATORInformation and Tourism Minister Patricia Kaliati last week said government is currently looking for a second fixed phone network operator and a third mobile network to bridge the coverage gap in rural areas. “If you don’t go to rural areas, we will even have a 10th mobile phone network operator because access to information is a fundamental right. If there was competition by now, rural areas should have been well covered,” said Kaliati. The minister gave an example of her home, Nkando in Mulanje along the Robert Mugabe Highway where, she claimed, mobile phone coverage is so poor that people hop around to access the network signal. In his remarks, Malawi Communications Regulatory Authority (Macra) acting director-general Mike Kuntiya, whose organisation hosted the workshop, said the Universal Access Policy is important to Malawi because it will set a framework on how ICT services should be provided in the rural areas and how funding for such services could be achieved. For her part, Macra board chairperson Nellie Nseula said the policy will stipulate the vision and strategies for sustainable provision of ICT services to rural areas. The World Bank through the Public Private Infrastructure Advisory Facility programme funded the process of the draft policy developed by consultants Intelecon. (SOURCE: Nation) SAFARICOM, VODACOM, MTN GO EASTCheaper regional call tariffs could be coming down to Rwanda, Burundi and DR Congo following the launch of Vodacom Tanzania's, MTN Uganda's and Safaricom Kenya's integrated network last week. Mobile communication just got cheaper in three of the five East African Community (EAC) countries after scrapping of the dreaded roaming call surcharges by the three mobile giants. In the new partnership, subscribers to any of the three mobile companies can now make calls when across the borders at local rates and receive free incoming calls. Addressing the media in Kampala during the launch, the top executives of the three mobile telecommunication firms said that they were also interested in partnering with networks in DR Congo, Rwanda and Burundi as individual companies. (SOURCE: East African Business Week) KENYAN PHONE FIRMS WANT TAX CUTS FOR WIDER REACHMobile telephone companies, Safaricom and Celtel are asking the Government to reduce taxes to enable them offer cheaper calling rates and tap the rural market. The two competitors are unanimous that local cost of communication was higher compared to the regional rates. Safaricom chief executive officer, Michael Joseph and his Celtel counterpart, David Murray said attempts to offer low peak-hour calling rates have been thwarted by the taxes, pushing up the cost of doing business. "Let the Government reduce the rates either to five or 10 per cent to make us make up for losses on revenue," said Joseph. Currently, a 10 per cent excise duty is charged on airtime while the Value Added Tax is at 16 per cent. It would prove difficult, said Joseph, to achieve the goals of bringing ICT to the rural areas while the communication costs are headed to the roof. "We in the mobile telephony field feel that we have made important strides in bringing ICT to the rural areas, but of course there is a lot more to be done."They were speaking during the official opening of an ICT development expo in Nairobi on Wednesday. (SOURCE: The East African Standard) NIGERIAN FEC APPROVES N65 BILLION FOR RURAL GSMThe Federal Executive Council (FEC) ordered the release of N65 billion for the provision of infrastructure that would enhance the roll-out of rural GSM in 576 local government areas across Nigeria in March next year. The Minister of Communications, Chief Anibaba said the Rural GSM was part of the National Rural Telephoning System (NRTS) which was initiated by government to support the existing GSM, giving that current providers of the service declined to go into the rural areas because of the cost implications. He disclosed that government is committing N65 billion for the provision of infrastructure for the first and second phases of the three-phased project which have fully commenced in 576 Area Councils while 30 telephone service providers have already shown interest to roll-out in march next year. The first phase, he added, would cover 218 Councils at the cost of $200 million to be handled by two firms while the second phase stretches through 358 Council at the cost of $300 million to be handled by three firms; and the remaining 200 are billed for the third phase that will take-off next year.. (SOURCE: Daily Champion) DAVID TRUMPS AREEBA'S 'GOLIATH 'David Andreas Hesse won his last battle in the Ghanaian courts over his claim that his original 6% shareholding stake in Scancom was wrongfully diluted to 2% by an allegedly illegal capital call issued by Scancom in 1999. Lawyers representing Investcom Consortium and Scancom Ltd, the telecoms Goliaths, last week surrendered in a legal battle with David Andreas Hesse, the small unsung Company lawyer/director since the formation of the company, and opted for arbitration before the London Court of International Arbitration, but found themselves cut down yesterday, in a landmark ruling before an Accra commercial court with cost of GH¢6 million. A sparsely-filled court room heard the judge throw out the nth application for stay of proceedings pending arbitration and award cost of GH¢3 million against both defendants and ordered the companies to open their defence for the substantial case next Friday. With a barely audible voice, Avid Andreas Hesse, represented himself with no lawyer by his side, and proceeded to literally floor the two senior lawyers representing Investcom and Scancom respectively, leaving Benson Nutsukpui of Areeba to make a spirited appeal to reduce the GH¢5 million cost initially awarded him to GH¢3m. Ruling on the application to stay proceedings pending arbitration, the court, presided over by Justice Mrs. Cecilia H. Sowah indicated that looking at the countries chosen for arbitration, the question is whether the United Kingdom (London) is a country declared by the President of Ghana to be a reciprocating country party to the UN convention, and if not whether an application which proposes London as the forum for arbitration can be granted when the applicable law is Ghanaian Law. Continuing, the judge referred to David's contention that Investcom has admitted that the arbitration agreement which it seeks to rely on is a foreign one but they failed to show that the UK is a party to the convention or that that convention is recognised by our laws. Referring to relevant parts of Act 38 (Part 111 sect.36-41), the judge said that the application even under foreign awards as defined in 36(1) falls under a foreign award to be made in a reciprocating state. Then with a cool steady voice, she delivered the coup de grace, ending the multi-billion dollar company's application. 'L1 261 lists the countries recognised by the President of this country to be parties to the UN convention. The UK is NOT recognised as the Law stands now. In effect, an arbitral award obtained in the UK cannot be enforced in Ghana as L1 261 has not been amended to include all current parties to the convention. 1st defendant has therefore failed to bring itself within the ambit of the law'. Turning to David's part, the trial judge averred that the plaintiff, David Andreas Hesse has more than discharged the obligations for the matter to be heard in London. The trial judge further dismissed the application in limine after she noted that the application to stay proceedings ought to be made by one who is a party to the arbitration and Scancom Ltd., providers of Areeba network services are not a party to the Shareholders Agreement and has no locus in filing an application for stay. The bone of contention against the multi-billion dollar telecommunication company and Investcom Consortium Holding S.A. arises from a claim made by Mr. David Andreas Hesse that he is entitled to restoration of a 6% shareholding stake in Scancom as well as restoration of interest in Scancom he holds by virtue of his ownership stake in Scan Construction Limited ("Scan Construction"), another former Scancom shareholder. The internationally renowned lawyer is contending that his original 6% shareholding stake in Scancom was wrongfully diluted to 2% by an allegedly illegal capital call issued by Scancom in 1999 and is seeking for a court order to reverse it. The court which initially awarded a ¢5million cost had to reverse to ¢3million each against both defendants, after counsel for Scancom prayed the court that the cost was excessive. David Hesse is also seeking an order restoring to him, his 6% shares in Scancom or in the alternative an order directed at the multibillion dollar telecommunication company to purchase his 6% shares in the company after a valuation of the company by an independent auditor. Seeking further, he wants an order of perpetual injunction restraining Scancom Ltd., acting by itself, or its shareholders and officers from removing him as a director of the company in breach of the Shareholders Agreement and the law. Other reliefs he is seeking include an order restoring the 3.4% shares of Scan Construction limited in Scancom or in the alternative an order that 914,600 of the ordinary shares of the company representing his 25% interest in Scan Construction Limited be restored to him. Further, Hesse, is seeking an order that the parties go into account to determine the amount of dividends due to him on his shares and an order directed at the defendants to pay such amounts to him and other orders the court deems fit. It was in respect of these claims that Scancom Ltd. filed an application seeking that the court stay proceedings pending the determination of arbitration as the court has power by law to stay proceedings and refer the parties to court arbitration as the agreed means of dispute resolution in the case. According to Scancom, in the affidavit in support of their application, the plaintiff became a shareholder of the company by virtue of a Shareholders Agreement dated January 12 1996, as amended on 18-19 June 1996. "By Clause 13(5) of the Shareholders Agreement, the parties thereto, including the plaintiff herein have agreed to resolve all disputes arising from the agreement by arbitration in London," the application read. (SOURCE: Ghanaian Chronicle)
IN BRIEF:- LG Electronics has won a contract organised by the GSM Association to produce a low-cost handset for third generation mobile phone networks. The handset will cost around $100, breaking through an important price barrier which is expected to boost sales of 3G phones. Most 3G phones are currently much more expensive and slow sales of the devices has held back usage of 3G network services, such as mobile Internet, email and video. - The smallest of Algeria’s three cellular operators, Kuwaiti-owned Nedjma, has revealed that it has signed its three millionth customer after registering 100% subscriber growth during 2006. Nedjma competes with market leader Djezzy, which is backed by Orascom of Egypt, and Mobilis, which is a subsidiary of state fixed line operator Algérie Télécom. - Côte d'Ivoire Télécom has launched a CDMA-based fixed wireless network to allow it to extend its reach to underserved areas. The new system will also boost the quality and capacity of its networks in regions already covered by its copper wire PSTN. Services are available to both residential and business users, with the first phase of the rollout covering the communities of Cocody, Yopougon, Treichville and Marcory. Both pre-paid and post-paid services are on offer. - Moroccan telco Wana, formerly known as Maroc Connect, has launched consumer telephony and internet services under a new brand name, Bayn. Last month the company changed its name from Maroc Connect to Wana to mark its entry into the voice telephony market alongside Meditel and Maroc Telecom. TELECOMS, RATES, OFFERS AND COVERAGE- Globacom has announced plans to introduce to the market Triple Play, a service that offers high speed Internet, television and telephony over a single broadband connection. In the initial launch phase, fixed line services would be available in 13 major cities in Nigeria with a capacity of 300,000 lines. - POSTA Uganda and Celtel have entered a partnership that will let the telecom company sell the whole range of its products and services at all of Posta's outlets countrywide. - Mobile operators in Zimbabwe rejected an overture by the portfolio committee on Transport and Communications to engage in national roaming, saying such a move would have been specified by the regulatory body when it issued operating licences. - 123 rural kebeles in Keffa Zone of SNNP State in Ethiopia have become beneficiaries of wireless telephone services. Efforts are also being exerted to enable seven towns of the zone to become beneficiaries of automatic telephone services this fiscal year.
MWEB LAUNCHES WIMAX FOR NAMIBIAWhen it comes to deregulation of broadband, Namibia has scored a significant first by deregulating wireless access and awarding the relevant frequencies for the first commercial application of WiMax technology to a commercial Internet Service Provider (ISP). MWEB Namibia last week launched the first commercial broadband wireless Internet service, which is available to Internet users in Windhoek and will be rolled out to Swakopmund and Walvis Bay shortly. The introduction of this service was made possible by a telecommunications licence awarded to MWEB Namibia by the Namibian Communication Commission (NCC) and Namibian Ministry of Information and Broadcasting. Rudi Jansen, CEO of MWEB, says that the government of Namibia has shown incredible foresight in embracing the new technology, and has proved its commitment to deregulation with this bold move of licensing a commercial operator, rather than just opting for the state telco. “It is amazing that a small country such as Namibia can be at the forefront of deregulating wireless access in the SADC region. It is obvious that it has an efficient and proactive regulator – an essential part of the process.” “In SA, the physical elements are already in place for rolling out WiMax, but regulation is holding back the process. As in the Namibian scenario, it is also important that WiMax licences are allocated to private enterprises, rather than just state enterprises and telcos if end-users are to really benefit.” Speaking at the launch in Windhoek, Namibia’s Minister of Information and Broadcasting, Netumbo Nandi-Ndaitwah, said: “By spearheading technological advances such as the wireless broadband products being launched in Namibia today, MWEB is helping to accelerate the process of converting Namibia into a developed country.” MWEB’s WiMax service in Namibia will be highly competitive with existing fixed line products, and MWEB will offer a number of options tailored to the needs of home and business users. Jansen says: “The entry-level broadband products for home use start at N$ 492 per month (equivalent of R492). These rates include the rental on the equipment installed at the customer’s premises, Internet subscription fees and all MWEB member benefits.” (SOURCE: ICT World) INTERNET ADOPTION BOOSTS ANGOLA TELECOM CAHSFLOWAngola's incumbent telco Angola Telecom collected Akz 80 million from central Huambo province, in 2006, after its customers improved the paying of their bills, an official source told Angop. The Company's provincial director, Jorge Cruz, who would not disclose the amount collected in 2005, said there has been a significant increase in the collection of revenues due to the introduction of Internet, a process that compels clients to have operating fixed telephones. The official noted that in Huambo city and Bailundo town, Angola Telecom is installing fixed networks wireless phones. Clients will also have Internet. "Apart from the main advantage in avoiding underground cables, the installation of wireless telephones is high tech. with less technical work," said the official. Jorge Cruz noted that Angola Telecom has been studying ways to install an optic fibre cable for full coverage of all country's communes. Angola Telecom has a coverage of 3,583 telephone lines active under an installed capacity of 4,000. (SOURCE: Angola Press Agency) NUMBER OF LOCAL BROADBAND USERS CLOSING IN ON HALF A MILLION IN SOUTH AFRICAThe number of local broadband users is continuing to show a significant percentage growth, and is closing in on the half-a-million mark. Telkom’s ADSL service remains that most popular broadband connection with around 220,000 subscribers. The latest official figure released by Telkom was 190,172 at the end of the third quarter 2006, and with an average growth of 7 800 new subscribers per month it will place the current figure at just over 220,000. Vodacom is showing even faster growth with over 10,000 new 3G and HSDPA users signing up each month. The last official figure from Vodacom was 100,700 data card users at the end of September 2006, but if one accepts that the growth remained steady over the last four months this number now sits closer to 140,000. iBurst is another success story in the broadband race, and has nearly quadrupled their subscriber numbers in the last year. Their current user base of over 33,000 subscribers is growing at over 2000 new members per month, and with its continual coverage expansion this figure will surely continue to rise. MTN has not released official data card user numbers recently, but it is widely accepted that this figure is sitting in the tens of thousands. Sentech remains the black sheep of the broadband space with only 4,000 subscribers on its network, but the company is close to introducing faster speeds, expanding coverage and revealing new packages which may change this situation. And then there is the WiFi user base making use of smaller Wireless Internet Service Providers. Nobody has exact figures on the number of WiFi subscribers, but it is widely accepted to be far in excess of 10 000. While there are no exact figures on the total number of broadband subscribers, the figure is definitely well over 400,000 and is closing in on the half-a-million mark. This equates to a broadband penetration rate in the region of 0.9%. (SOURCE: MyADSL) INTERNET COMPANY INCUBETA GETS R15M FUNDINGThe HBD venture capital fund founded by billionaire Mark Shuttleworth has invested R15m in IncuBeta, an internet marketing company. IncuBeta will use the cash to expand its presence in the US and UK and to grow towards its long-term plan of listing on the JSE or the London Stock Exchange. HDB will pump another R10m into the company later. IncuBeta was founded four years ago by entrepreneur Vinny Lingham, based on the placing of advertisements related to the key words used in Google searches. It places more than 50-million targeted advertisements every month, and has grown to employ 50 staff in offices in Cape Town, Johannesburg and London who generate an annual turnover of more than R50m. The investment from HBD would allow several goals to become reality, said its CEO, Giles Douglas. "Our first priority is to open offices in the heartland of technology in Silicon Valley so we can be closer to our major search partners, Google and Yahoo, and our US clients. A physical presence in the States will allow us to build a stronger brand and accelerate our growth prospects." The company would also strengthen its European presence ready for a listing within the next two years, Douglas said. Search engine marketing is growing at more than 40% a year as the internet becomes a method of socialising as much as an information source. In the next few years Douglas expects it to move on to cellphones, television and in-car navigation systems, and the cash from HBD would help incuBeta prepare its technology for that. HBD Venture Capital was very excited about the investment, said its portfolio manager, Eben van Heerden. "This is a truly South African company with no real local competition. It is rated as one of the top three internet marketing companies in the world by Commission Junction, part of the Nasdaq-listed ValueClick." The company's home-grown technology gave it a sound platform for future expansion, and it claimed many of the world's biggest online retailers as its clients, Van Heerden said. "We plan to work closely with IncuBeta to ensure exponential growth happens quickly." (SOURCE: Business Day) NSIMEYONG’S POPULATION IN CAMEROON DRILLED ON INTERNET USEOfficials of a computer training centre have cautioned inhabitants to use its services for academic and research purposes, not illegal adventures. The inhabitants of Nsimeyong neighbourhood in Yaounde have heaved a sigh of relief. A bilingual computer centre, Cameroon Bilingual Centre for Information Technology and Consultancy (Citec) now provides IT literacy and awareness to the population. But officials of the institute are currently carrying out mass education exercises with the population as regards the programmes and pictures available in various websites. The director of the institute, Professor Martin Amin says the Cameroon experience, especially among youths, is a sad one. "Many Internet users spend their time watching pornographic pictures and other immoral activitions on the net, rather than learning and carrying out useful research," he said, adding that the cyber café unit of the structure will be seriously monitored to check such unholy activities. According to Pr. Amin, his centre which will effectively go operational on February 12th 2007, aims to alleviate poverty, especially among young people, as well as foster development within its areas of operation. The centre will also contribute towards income generation through self-employment, drill teachers and educators on new information and communication technolgy, counsel and orientate children of school age on IT assisted operations and offer useful knowledge to candidates sitting in for public examinations. The institute operates five main ICT domains. These include international career certification, Citec certificates and diplomas, accelerated and tailored courses, seminars, workshops and conferences, alongside consultancy. Professor Amin said the institute will offer vital courses such as network engineering, systems administration, database management, programming and web development and maintenance and computer assembly. Such courses are available for holders of at least an "A" level certificate. Other courses requiring "O" levels include international computer driving licence, Microsoft office specialist and the City and Guilds certificate. The centre will also useful to professionals who intend to build, update or enhance their professional skills in IT and others who desire tailored courses for specific needs. That apart, institute will regularly orgainse seminars, workshops and conferences for workers and specialists on various current topics in different fields. The institute spares the inhabitants of Nsimeyong and students of Collège Vogt the pains of going to the Yaounde university students' residential area, Bonamoussadi, for Internet services. (SOURCE: Cameroon Tribune) CYBERCRIME ABOUT TO TAKE OFF' IN SOUTH AFRICAAn initiative by Standard Bank to tighten the safety of online banking has failed, with fewer than one in seven customers bothering to use the security software. The bank launched its security pin pad feature after money was filtered out of accounts by using keystroke logging software, which records the personal identity number (PIN) typed in by customers. The bank's solution in 2003 was to display a small picture of a keyboard on the log-in screen, so users could click on the relevant numbers to enter their PIN instead of typing it. But the feature has been removed because of apathy by the clients it aimed to protect. The apathy shows that while users expect online activities to be secure, they oppose any inconvenience or changes to their own habits. The bank says its transactions are still secure as it has now made it compulsory to use a one-time password, where a unique code is delivered by SMS when a user initiates a banking session. It has also redesigned its banking website, annoying some customers who claimed the new software made it impossible to get online last month. The bank denied that the new interface was at fault, and blamed Telkom line failures. Telkom denied having any problems that would keep people offline. The bank's director of self-service banking, Itumeleng Monale, says the new site supports virtually all internet browsers, and final tests are being done to ensure it is compatible with less common browsers. "The required changes will be implemented as soon as this process is complete." Online fraud has seen some of SA's e-commerce websites die an early death, says William Mellor, CEO of Bigtime Airtime. He says recent PIN security enhancements for MasterCard and Visa card transactions will further boost consumer confidence. Bigtime sells cellphone airtime online, and customers have welcomed the stronger "Verified by Visa" and "MasterCard Secure Code" security, Mellor says. Their security developments have enabled companies like his to grow enormously in a very short time, he says. Last week, SA's largest hi-tech distributor, MB Technologies, opened a new subsidiary focusing on security. NetDefense, headed by Guy Whitcroft, will supply hardware and software security products and is recruiting some of the country's top security experts. It will also train the staff of hundreds of technology resellers to give them stronger security skills. A global lack of skilled security technicians is hurting companies almost as much as their overall carelessness and lack of awareness, Whitcroft says, as networks expand far more rapidly than the security measures to protect them. He estimates that SA's market for network security is worth R1.2bn a year. That will hit R2bn when people take the issue as seriously as they should, he says, since SA is five years behind the UK in its attitude towards cybercrime. Thankfully, the cybercrime rate in SA is also behind the international norm, but that will change. "We have to act now before we get hit hard in this country. The crime rate here has been very low, but it's just over the horizon as it gets tougher for hackers in the US and Europe," he says. In the US alone, identity theft cost companies $80bn and individuals $20bn in 2005, according to the Federal Bureau of Investigation. Gartner analysts estimate that 75% of all companies will have some of their computers compromised this year. Up to 80-million computers are controlled by external hackers every day, and are mostly used to generate spam. Although people think they receive far too much spam, that is only 30% of all the unwanted mail flying through cyberspace, as filtering software catches 70% of the original traffic. Software company McAfee says technology investments to protect sensitive data are undermined by staff putting their own businesses at risk by lax behaviour. Employees take out a massive amount of confidential data, with 132-million documents, including customer records and financial information, leaving UK offices each week on memory sticks, cellphones or by e-mail and instant messaging systems. (SOURCE: Business Day) IN BRIEF:- MWEB has selected Billion's standard, wireless and VoIP ADSL modems from distributor and agent Nology. The devices are intended to deliver reliable, fast Internet access to consumers and business users at a competitive price.
TRAINING BENCHMARK FOR SOFTWARE HOUSES IN SOUTH AFRICAThe Trade and Industry Department is investing almost R1.5m in a programme run by the Joburg Centre for Software Engineering to make local software developers more globally competitive. The aim is to help companies take part in the Capability Maturity Model Integration (CMMI) programme, which is becoming an international standard for assessing the quality of software houses. Yusuf Timol, the electrotechnical director of the department's Trade and Investment SA (Tisa) division, said CMMI was becoming a common feature in tenders from overseas companies. "When offering a multimillion-dollar tender, companies want to know that the company they award the tender to is capable of completing the project. "CMMI provides a benchmark to evaluate suppliers, with most large tenders requiring CMMI level four or five," he said. While a country like India has more than 70 CMMI level-five companies, SA does not have one as yet, and is lagging a good two to three years behind the rest of the world. As CMMI gained momentum internationally, local companies with the qualification would become more globally competitive, Timol said. The challenge for local companies is that the CMMI process has been too expensive, as staff had to be trained overseas or CMMI trainers had to be flown to SA. An introductory course costs R20,000 at the Software Engineering Institute at Carnegie Mellon University in Pittsburgh, US, excluding the travel and accommodation costs. But now CMMI training will be offered by the software centre from its premises at Wits University. An introductory course will cost R7900. Academic director Barry Dwolatzky said the money from the trade and industry department would go towards training the staff who would present the CMMI training and assessment services. (SOURCE: Business Day) COMPUTER POINT ENDS PAPER USE ERA AT UGANDA UNIVERSITYComputer Point has installed an automated academic records processing system worth $861,784 (about sh15b) at Makerere University. The system will facilitate access of student academic records at the click of a button, replacing archaic manual methods. P.K Kuruvilla, the Computer Point chairman, said the system integrates financial, human resource and academic records. "Students will access their academic records promptly, register without queuing and obtain academic transcripts without physical movement of files," Kuruvilla told guests at the commissioning of the integrated academic records, financial system and human resources information system (AFH) at Makerere University recently. The software, developed by Integrated Tertiary Systems of South Africa, also helps the university to immediately access debtor and creditor records compared to the previous method of manually going through piles of files. "It is core business processes have now been radically shifted from tedious manual processes that created a lot of frustration to an instantaneous digital process," Kuruvilla explained. Dr. Ham Mukasa Mulira, the Information and Communications Technology minister, who commissioned the project, said the development showed the university's determination to utilise ICT to match international standards. Mulira called upon the university administration to ensure that the newly-installed system enables students to access their personal records online and get full year time table schedules. He emphasised that the system should create efficiency and transparency in academic, financial and human resource management. Prof. Livingstone Luboobi, the Vice-Chancellor, disclosed that prior to the installation of the system, the university was faced with large volumes of paper work. Luboobi explained that the manual process involved queuing for receipts at the counters, manual writing of receipts, and manual preparation of reports and tedious manual verification of bank slips. "With the installation of the budgeting procurement, counter system, cash book and students debtors modules, there has been a drastic reduction in the queues," he added. Luboobi added that the system aids computerised verification of slips, computerised issuing of receipts for cheques and drafts and online monitoring of bank balances. He said the system was reliable to detect errors and minimise fraud. He pointed out that the system would enable the pension officer to monitor and track the deductions and contributions of each staff member so as to improve the process of paying pension and retirement benefits.Computer Point, operating in Uganda since 1991, has brought landmark developments in data systems as far as ICT is concerned, according to Kuruvilla. The firm also provides disaster recovery solutions in case of loss of business and mission-critical data. The company has provided disaster recovery solutions to MTN, Celtel, DFCU, the World Food Programme, the Electoral Commission, and the Bank of Uganda. The Makerere project, funded by NORAD, builds a strong digital platform on which further substantial IT achievements can be made at the university. In the next phase of the project, Kuruvilla said, students would be able to access their coursework, exam results and financial data on the Internet, with lecturers able to post assignments, coursework and examination results on the university website. Lecturers would also be able to post assignments, coursework and examination results on the university website. (SOURCE: New Vision) WORLD BANK TO FUND ICT BUREAUX IN KENYAThe World Bank will fund the setting up of information communication technology (ICT) bureaux in all constituencies. The establishment of the bureaux or ICT villages is part of a project the bank is funding to the tune of Sh4.3 billion that will result in computerisation of land records, motor vehicle licensing and procurement procedures. The bureaux will be rolled out from July. World Bank country director Collin Bruce said the Government would greatly improve efficiency once the computerisation was completed. "The amount for the ICT villages component is being worked out but it's part of the whole project that will cost $60 million (Sh4.3 billion)," Bruce said. Part of the funding will go to giving credit to entrepreneurs who want to set up the ICT centres. Speaking during the opening of an ICT expo at Kenyatta International Conference Centre last week, Bruce said the country had made a leap in the ICT sector in the past year but added great opportunities still existed. The expo's theme is 'Bridging rural-urban digital divide'. He said he country's teledensity was at 21 per cent which was lower than frontrunners in the continent like Mauritania with 26 per cent. Bruce said studies had showed that an increase in 10 mobile phones per 100 people boosted growth in national wealth (GDP) by 0.6 per cent while one per cent increase in internet users increased total exports by 4.3 per cent. (SOURCE: The Nation) GAMBIA’S NICE PLANS TO ROLL OUT 75 CYBER-CAFES IN RURAL AREASNeneh Macdouall-Gaye, Secretary of State for Communication, Information and Technology, on Monday, formally launched the multi-utility internet café of Next door Internet Communication and Energy service Café (NICE) Gambia Ltd, at the CCF Skill Centre in Brikama Jamisa, Western Region. SoS Macdouall-Gaye added that the drive of NICE Gambia to offer rural Gambian communities with internet services, IT training, television service, among other things, will contribute to the building of an inclusive information society, particularly in implementing the National Information and Communication Policy. "At the same time, NICE is poised to offer banking and micro-finance services, along with the provision of other basic service all under one roof within this magnificent complex which the people of Brikama (I am sure) will cherish", she added. The ICT Secretary of State Macdouall-Gaye then urged the people of Brikama to make full use of the facilities and services provided in order to empower themselves to contribute more to national development. According to her, the initiative compliments Vision 2020 and the Poverty Reduction Strategy, in uplifting the living standards of Gambians. "It is for this reason that the Government of the Gambia supports the establishment of NICE Gambia Ltd as a private sector partner to complement Government's efforts to implement the vision of His Excellency the President, since the government alone cannot do it all," she noted. Omar Njie, Managing Director of NICE Gambia Ltd, said NICE is a concept derived from "two big energy" companies called Econcern and Essent in Holland. Mr Njie said these companies formed the Energy4all Foundation, through which they wish to fulfil their corporate social responsibility and step foot into Africa. He disclosed that NICE plans to establish 20 more cafes in the country this year, before moving to another African country to test the concept. "Our target is to spread over 75 NICE cafes throughout The Gambia," he said. (SOURCE: The Daily Observer) CISCO TO CREATE TWO COMPANIES IN SOUH AFRICAThe global networking giant Cisco is restructuring its local operations to create two new companies that will be 25% black owned. While Cisco's existing operation in SA will not sell any shares to local investors, the new structure will let it spin off equity in the two new divisions to black partners. Black managers will be appointed for those divisions, and a black advisory board is being set up to help the US multinational understand the local requirements and improve its empowerment and social responsibility efforts. "We have decided to open two other companies, Cisco Capital and Cisco Advances Services," said Mark de Simone, Cisco vice-president for Africa and the Middle East. "Both will have a black empowerment component. Setting up two new companies and opening them to external black empowerment is a pretty important departure for us." The exact structure of the black investment has not been finalised, so talks have not yet begun with potential partners. However, De Simone expects the deal to involve passive investors rather than active players in the industry. "We'd like to see pure investment. I think we'd rather separate the operational people from the investment transaction," he said. Shares in the new divisions will be sold at fair market value, and the initial 25% black stake may be increased later. The reshuffle will see Cisco SA's black general manager Clive Fynn resign. The existing core division will be led by Steve Midgley, Cisco's director for the Middle East and Africa, with a new position of general manager for business development created. De Simone said Fynn had done a good job in helping Cisco adapt to the local requirements and in persuading the American powers that be of the need to change. Fynn was leaving as he had other opportunities to tackle and because the new management structure had worked him out of a job. The idea behind the new board of advisers was to have a panel of "wise men and women" to help with its social presence in SA. "We need advice on how we can help the country transform through what we do. We are beginning to meet the ambitions we have for the country in terms of our social investments and to get a better understanding by the likes of Telkom." Cisco has been criticised in the past for a lack of empowerment. In one memorable clash, Telkom accused Cisco of massaging its degree of black management by counting the presence of Barron Cox, a black American seconded to the company. The chairman of the advisory board had been appointed and would be named next month. "It's someone the country will know and feel comfortable with," De Simone said. One of the new divisions, Cisco Capital, will offer financial services to help customers buy or lease equipment and to arrange credit for resellers who instal its equipment. It could have between 10 and 15 staff. The advanced services division will house experts in more complex or newer technologies where there is currently a lack of skills. That would probably see technicians brought in from overseas to pass on their skills and handle projects, with 40 to 50 people in the division. Cisco SA was last in the news for an internal rumpus when a former employee claimed that some managers had awarded a R25m contract to Imvula Con-sulting, then tried to buy shares in Imvula. When the employee's report was not acted on in SA, he escalated his complaint to executives in London, and Cisco appointed a legal firm to investigate. De Simone shrugged the issue off as a personality clash, saying: "We don't comment on internal issues." (SOURCE: Business Day) THIEVES TARGET COMPUTER DISKS IN MOZAMBIQUECriminals are attacking Mozambican state institutions, and stealing the hard disks from computers, reports Tuesday's issue of the Maputo daily "Noticias". Citing sources in the Criminal Investigation Police (PIC), the paper said the latest such raid was on the Ministry of Finance's Notarial Office, in central Maputo. Thieves broke into the office in the small hours of Saturday morning, opened up ten computers and stole the hard disks. The purpose of such a theft is presumably to destroy or corrupt whatever is on those disks. The police assume that the motive of the theft was to hide embarrassing financial information. Similar attacks have occurred previously against computers in the Ministry of State Administration, and in the Pedagogic University (which is the country's degree level teacher training college). This is a new and fairly sophisticated form of crime. It is unlikely that such thefts can occur without the connivance of officials in the institutions concerned, who know which computers store sensitive information. (SOURCE: Agencia de Informacao de Mocambique) MICROSOFT CHARITY GOING BEGGING IN SOUTH AFRICANot enough charities are coming forward with sensible business plans to win donations from Microsoft SA, the company says. Microsoft makes more contributions to social responsibility initiatives than any other hi-tech company, donating $68m in cash and $331m in software to non-profit organisations throughout the world last year. Yet the charities in SA are not professional enough in their approach to win more of that support, says Lungile Lose, Microsoft SA's community affairs manager. Instead of being inundated with requests for cash and free software, Microsoft SA often has to sit with the charities and show them how they could benefit, he says. Those that do seek funding often need help in drawing up a sound proposal. More cash would be available for SA if local worthy causes were better at presenting initiatives that pique the interest of its parent company, but they lose out to charities in other countries that are far more professional in their requests for cash. "In this country, we have to work closely with non-governmental organisations to encourage them to come up with proposals," Lose says. This year, Microsoft SA has approved grants of about R1,5m, up 46% from last year because some charities presented better business plans. "The grants are issued on a competitive basis worldwide, so we compete with the Middle East and Africa for grant allocations," says Lose. The firm was pleased to get more funds allocated to SA. "We got a 46% increase because our programmes this year have much more national impact." Last month, Microsoft SA handed over the first R800000 and will donate software to three organisations working to improve their communities. One was Skills Development and Economic Independence of the Disabled, a body helping physically disabled people earn a living by setting up income-generating centres in each province by 2008. Cash also went to the E-community Development Forum, a Western Cape project helping to set up more centres to provide access to government information over the internet in rural areas. The third donation went to a Telecentre "Train the Trainer" project to develop the skills of telecentre operators. Microsoft SA aims to work with local organisations to help at least 775000 people realise their potential through the use of technology over the next three years, says Chose Choeu, its director of law and corporate affairs. (SOURCE: Business Day) IN BRIEF:- The government of Senegal signed a partnership agreement with Microsoft. The signing coincides with the opening of the computer software developer's Dakar office. This will be Microsoft's tenth direct presence in the West, East and Central Africa (Weca) region and it joins offices in Abidjan and Douala from which the Economic Community of West African States (Ecowas) is managed. CORRECTION AND WHAT READERS SAYIn issue 341 we mistakenly referred to New Skies satellite that was destroyed on launch as NSS9. Of course, it should have been NSS8. Issue 340: Four African countries try to turn back the clock by creating monopoly international gateways again The measures announced by the Government of Benin are only provisional and from I what I know are being used to control problems of fraud but you didn’t make that clear in your article. I hope that this measure will be lifted very quickly so that it does not give the country a bad image. Ken Lohento
NIGERIAN MTEL'S MARKET SHARE DROPSBarely three months after Mobile Telecommunications Limited (MTel) was taken over by its new owners, Transcorp, there are indications that the mobile communications firm is yet to find its feet in the increasingly competitive industry. Its market share, investigations revealed, has further declined from its December 2005 rating of five (5 per cent) percent to almost one per cent. This is a far cry from its eleven per cent (11 per cent) market share way back in 2002. MTel, the mobile communications subsidiary of the Nigeria Telecommunications Limited (NITEL) is said to have also depreciated in terms of subscriber base. It is now down to about 70,000 active customers from its December 2005 record of 1.2million active customers on a network hosting a total of 1.4million subscribers. It was gathered that over the past two months only 200,000 customers have made or received calls at least once on their MTel lines. The drop in patronage may not be unconnected with the collapse of most of its base stations in different parts of the country particularly Lagos, Ibadan and Benin-City due to lack of maintenance arising from the loss of some of its key technical personnel in the course of the company's privatisation and transition from a state owned firm to a private sector organisation. Also blamed for the rather stagnated position of the firm is the seeming lack of working capital. MTel and its parent company, NITEL were acquired in a negotiated deal that had Transcorp as core investor, British Telecom as technical partner and until the last minute, Etesalat, the Middle East firm that was initially brought because of its financial muscle. Observers believe that since Etesalat pulled out of the deal, it has been an uphill task for the core investor, Transcorp even to fulfill the primary obligation of paying the $750million bid price. It took the intervention of some privatisation-friendly banks to bail Transcorp out of falling into the same pit that previous bid winners fell in the protracted privatisation history of NITEL. (SOURCE: This Day) ORASCOM SCORES GREEK OPERATORS IN US$4.4 BILLION DEALThe Egyptian billionaire Naguib Sawiris agreed Wednesday to buy TIM Hellas Telecommunications from two buyout firms in a deal that valued the Greek cellphone company at about €3.4 billion and extended his reach in Europe. Sawiris, through his holding company, Weather Investments, will pay €500 million, or $650 million, and take on €2.9 billion in debt. Apax Partners Worldwide and Texas Pacific Group, which bought TIM Hellas two years ago for €1.4 billion, announced the sale in an e-mailed statement. The 3.7 million Greek subscribers will expand Sawiris' investments beyond the Italian phone company, Wind, and Orascom Telecom Holding of Egypt. The two buyout firms are selling after they stopped a slide in sales at TIM Hellas and bought a rival operator, Q-Telecom, which had lured clients away with cheaper calls. Sawiris described the acquisition as a significant step toward putting Weather Investments, the telecommunications investment company that is 97 percent owned by the Sawiris family, at the forefront of the European market. "This is the second asset to be bought by Weather in the Mediterranean, and it is an important step in positioning Weather as a main player in Europe," Sawiris said. Weather Investments bought Wind for €4.8 billion in 2005 from the power company Enel. Sawiris is chairman of Orascom, one of the largest telecommunications operators in the Middle East. TIM Hellas is one of the top three Greek cellphone operators, which also include Cosmote, the mobile unit of Hellenic Telecommunications Organization, and Panafon, the local arm of Vodafone Group. Sawiris said he was still interested in the Italian assets of the Internet service provider Tiscali, should an opportunity come up. (SOURCE: Bloomberg News) DIDATA ASIA UNIT LIFTS PROFIT 47 PERCENTDatacraft Asia, a unit of the South African-based IT group Dimension Data (Didata) -- has delivered a 7% increase in revenue for the first quarter to December to $128,7m, it said on Friday. Pre-tax profit increased 39% to $8,5m, while profit attributable to shareholders leapt 47% to $6,2m, and cash and short-term investments were up 16% at $147,9m. The group attributed the strong growth in revenue to a 13% increase in services revenue to $48,1m and a 3% rise in hardware revenue to $80,6m. However, when compared with the fourth quarter of the 2006 financial year -- traditionally a strong quarter for the group -- revenue declined 2% to $2,2m, the group said. In its 2006 financial year, Singapore-listed Datacraft Asia boosted its parent company's revenues 15,7%. "I am pleased to kick off the new fiscal year with a strong 13% growth in our services business and a gross margin of 19,2% in the first quarter," said Datacraft CEO Bill Padfield. "We also ended the quarter with the highest backlog in five years at $156m, boosted by growth in annuity service contracts as well as hardware orders. "Clearly, our strategy of focusing on more profitable, services-attached business and emphasis on productivity has paid off." Padfield said that the second-quarter outlook remained positive, underpinned by a healthy backlog, although overall gross margin might moderate due to the increase in hardware backlog. "The prevailing market trends look favourable and demand for our solutions and services remains healthy, particularly in the areas of internet protocol convergence and multisourcing. Our priority for the current financial year is to continue to drive services opportunities and build on our solid fundamentals," he said. (SOURCE: Business Day) ECONET SECURES FOREIGN CURRENCY FOR EXPANSION PROGRAMMEZimbabwe’s largest telecommunications company, Econet Wireless Limited, has secured foreign currency to embark on another multi-million-dollar project to further expand its network from 800,000 to 1.3 million subscribers by the end of August this year. The expansion, a sign of confidence by the company in the economy despite the current challenges, is designed to meet the unsatisfied demand for its services countrywide. Econet spokesperson Sure Kamhunga said: "This expansion will be even bigger than the current upgrade, which is nearing completion."Econet started to upgrade its capacity from the then 500,000 to 800,000 subscribers using a US$20 million loan obtained from the Cairo-based African Import Export Bank." He confirmed that Econet had concluded financing facility arrangements for the project and had already placed orders with Ericsson for the supply of equipment. However, Kamhunga said it was premature at this stage to discuss details of the expansion. He added that Econet would build new switches as well as add more base stations around the country. (SOURCE: The Herald) IN BRIEF:- MTC of Kuwait is reportedly interested in bidding for a stake in Algeria’s dominant telco Algérie Télécom via its African subsidiary Celtel, according to Kuwaiti newspaper Al-Qabas. MTC joins firms such as France Télécom, Telefónica, Etisalat, Portugal Telecom and Deutsche Telekom on the list of firms interested in entering Algeria’s fast-growing telecoms market.
ONLINE MARKET PLACE LAUNCHES OPERATIONS IN EGYPTTejari, the region’s leading online marketplace, last week announced the launch of Tejari Egypt, a major new operation and gateway into the North Africa market. In partnership with Al Ahly for Development and Investment (ADI), Egypt’s first venture capital company, Tejari Egypt will introduce the benefits of e-procurement and e-commerce services to the country’s government departments and private enterprises. Addressing the media at Cairo ICT 2007 exhibition, Tejari CEO Omar Hijazi said: “Over the next five years, we plan to cater for more than 20,000 Egyptian organizations who will adopt e-procurement through Tejari Egypt, resulting in more than $1 billion worth of trade being transacted through our marketplace. We see enormous potential for e-commerce and e-procurement in Egypt, and with ADI, Tejari has the ideal partner to offer the measurable procurement efficiencies and other benefits that our online marketplace can bring to organizations in Egypt.” Tejari Egypt will introduce e-procurement services to enterprise and government customers in the country, through its Tejari Marketplace service. Tejari customers across the Middle East have realized direct procurement savings of up to 15-20% plus indirect savings of more than 40% through the adoption of e-procurement, and now Tejari Egypt believes that the public and private sector in Egypt is ready to enjoy the same benefits. To head its new operations in Egypt, Tejari also announced the appointment of Ihab Hassib, as General Manager for Tejari Egypt, and the opening of offices for the new online procurement and trading initiative. At a press conference to launch Tejari Egypt, officials highlighted Egypt’s role as the current largest market of Internet users in North Africa, the growth of broadband availability in the country, and the increased focus on e-government as encouraging factors in the creation of the new online initiative. “The Egyptian government has committed itself to leveraging the benefits of new technology, and the ICT infrastructure required for e-commerce is being created in many parts of the country,” said Fouad Sultan, Chairman & managing director, ADI. “Government organizations with large procurement requirements stand to gain many benefits of moving to Internet-based procurement. Many large enterprises in Egypt, particularly in the industrial sector, are well positioned to adopt e-procurement, having deployed ERP systems, and we look forward to seeing them reaping the benefits of e-procurement.” Tejari is participating in Cairo ICT 2007 to showcase live demonstrations of its online procurement solutions and services to some of the country’s senior decision-makers. With the launch of Tejari Egypt, Tejari now has a direct presence in eleven countries, including UAE, Bahrain, Jordan, Kuwait, Oman, Qatar Iraq, Lebanon, KSA, and Pakistan. (SOURCE: Mena Report ) ONLINE PUBLISHING IS THE DEATH OF NEWSPAPERSNewspapers are facing the greatest threat in their 400-year history. The rise of the Internet as a publishing medium is undermining, and could ultimately destroy, print as a news medium. Is that such a bad thing? Retrenchments in the US media industry rose 88% last year, to nearly 18000 jobs, as advertisers continued to shift their spend from print to online media. “With more than 2000 job cuts announced by media companies in the first half of January, it appears that the downsizing trend will continue in the foreseeable future,” says a report by consultancy Challenger, Gray & Christmas In the past month, Time Warner’s Time Inc unit and the New York Times Co both announced deep cuts in editorial and production staff. They follow sweeping retrenchments at major print media houses in developed countries in the past few years as newspaper circulations decline and advertisers follow readers to the Web. “The decline in newspaper and newsweekly subscriptions will continue as more and more people purchase computers and gain access to the Internet,” says Challenger CEO John Challenger Sales of daily paid newspapers in the European Union fell 5,26% between 2000 and 2005, according to data from the World Association of Newspapers. North American papers have shown an even steeper decline. In the developing world, where Internet penetration is significantly lower, newspaper circulations are still rising. The number of paid daily titles was up 4,5% in Africa in 2005, the highest growth of any region. But newspaper publishers in developing markets are living on borrowed time. As the cost of accessing the Internet comes down and more people get connected, fewer people will turn to newspapers — especially those they have to pay for — for their information. Right now, most people rely on their PCs to access online news. But comparatively few, especially in the developing world, have access to the Internet, let alone a PC. Mobile phones, whose penetration is significantly higher than PCs, will change that. It is already possible to have the type of news you specify delivered directly to your mobile phone, free of charge. It’s a matter of time before millions of people receive news this way. Cellphone screens are getting bigger and clearer, making them suitable for reading for longer periods, and the costs of downloading mobile data are falling worldwide. In SA, downloading text to a cellphone is already so cheap it may as well be free. So, with the world’s news resources available at your fingertips, and the information flow fully customisable to suit your tastes, why would you buy a newspaper that contains yesterday’s news anyway? The medium cannot compete with the immediacy of the online world. Newspapers are expensive to print and they’re environmentally unfriendly. That’s not to say they will disappear overnight. For many millions of people, especially those born before 1970, the thought of replacing a newspaper with an electronic gadget or a computer screen does not sit well. But to younger people as comfortable online as they are offline, buying a newspaper is almost a foreign concept. Young people are shunning newspapers and that, ultimately, will lead to their demise. It might take 15 or 20 years, but it will happen. The challenge for newspaper publishers is figuring out how to use the Web to make up for the decline in print revenue. No-one has got the model right yet. Paid subscription models don’t work as people have become accustomed to getting their news free. And advertising is not making up the shortfall. As Challenger says: “Until [newspapers] can figure out a way to make as much money from their online services as they are losing from the print side, it is going to be an uphill battle.” (SOURCE: Financial Mail) IN BRIEF:- According to the latest OPA statistics, Ananzi remains the most popular search engine in South Africa, but its poor search results means that it is fast losing ground against Google and other rivals. - Harare City Council in Zimbabwe has launched an e-bulletin with which it hopes to communicate with Harare residents, ratepayers and other key stakeholders.
DSTV TAILORS SERVICES TO CLIENT NEEDS IN UGANDAIt has been quite a hectic time for DStv in Uganda, and is getting even more so as Multi Choice customer services manager, Patricia Sentongo, explained to Kalungi Kabuye. DStv has been in Uganda for quite a while. How are you doing? DStv was launched in Uganda in April, 1997 and, like in every service industry, you face challenges. Sometimes you are not able to address the needs based on the subscribers' perception of the service. The fact that the public initially perceived us as a product for the rich, was also a challenge in itself but over time, that has changed. I think it is important to bridge the information gap and sensitise our customers on our support services. What causes that information gap? What are you doing to close it? Most of the common queries are to do with customer service and our pricing structure. For example, over the weekends, especially if there is a big match, we do experience a high influx of customers. To close this gap, we opened up a branch at the Garden City Shopping Centre. For subscribers with hectic working schedules, we have extended working hours at the Garden City branch from 5:00pm to 7:00pm. We have also partnered with Shell where our subscribers can pay their subscriptions till 11:00pm. The option of bank standing orders is also in place. All these solutions have been tailored to meet subscriber needs. Why do people wait till it is the end of the month or when there is a big game before they pay up? We do not have straight answers to this trend. However, on our part, we regularly send out account expiry messages to our subscribers encouraging them to pay in advance to avoid auto disconnections and the long queues. Can one pay for, say, 10 days or per view? Is it possible for one to pay for just what they want to watch? Presently, we do not offer pay per view services. I am not aware of any Pay TV company that offers such a service as its core business model. There is apparently some discontent with your telephone systems? What is your comment? Based on the feedback that we receive, our customers detest waiting in the queue before we can serve them. However, it's important to note that call centre environments are characterised by multiple in-bound calls hence the queues. To counter this challenge, a while ago, we introduced a cost effective SMS line 0772-777703 which can be used to request for service. Why don't you have a toll-free line? We cannot justify having a toll free line. When people call, what are their major problems? Many of the customer queries relate to billing, account reconnections and technical issues. One could minimise calling into our service centre by ensuring that they update their accounts in time. If they have paid, how long does it take before they are re-connected? Provided we have all the customer's payment details and the decoder is switched on, the reconnection is instant. What about the Dish magazine? The TV guide? Every DStv subscriber is entitled to a free Dish magazine. Additionally, with the help of a remote control unit, subscribers have the option to access TV schedules via Channel 1 on their digital satellite decoders. What is the most reported technical problems? The three most common problems are loss of signal either because of the shift in the antennae or failure of the LNB (unit on top of the dish) or failure of the decoder due to a power surge. What typically happens when a person calls in with decoder problems? All our call centre staff, in addition to customer services and billing, undergo extensive technical training. So they will talk the caller through the problem. If that does not work, maybe you do need a technician to come physically to your house. It happened one day when a customer's decoder was unplugged by a maid who was vacuuming behind the TV. But he didn't know that. So he called in for help. Some people think your services are expensive, and that it is because you are a monopoly? We believe our service is value for money. There are a number of substitutes to our service, for example, cable operators and cinemas. While we screen the English Premier League, Pulse TV and UBC TV also screen some of these matches on a delayed basis. We offer much more than the Premiership. (SOURCE: New Vision) NIGERIAN FEDERAL GOVERNMENT LICENCES 35 BROADCAST STATIONSPresident Olusegun Obasanjo has approved 35 licences for private radio and television stations across the country. The licences are for seven television and 28 radio stations. Minister of Information and Communication, Mr. Frank Nweke (Jnr), dropped the hint in Uyo, Akwa Ibom State while fielding questions from newsmen at the end of his inspection of projects executed in the state. Nweke said it was wrong for anybody to say that some people have been denied application to float a radio or television station in the country stressing that before such approval is granted due process must be followed. He was in the state to commence a nation-wide inspection of state and federal projects executed since 1999, tagged: "Legacy tour: lest the People forget". "I can confirm that in the last three weeks, the President has approved about seven new television stations and twenty-eight new radio stations all over the country", he said. (SOURCE: This Day) IN BRIEF:- Pensioners in Zimbabwe have been exempted from buying radio and television licences while other individuals are now allowed to buy a quarterly licence every three months to spread payments. -The Broadcasting Council will not return the two microwave receivers it confiscated from Nation TV Uganda (NTV) until the 155-metre mast on Kololo Hill is repaired. - Tee Global Media Limited in Nigeria is partnering with Silverbird Television to provide Teletext services, hopes to take the service nationwide soon.
PEOPLE*Lexmark’ South Africa MD, Hans Horn, has resigned after 12 years with the company rather than accept another posting that would have taken him out of the country. *Mobile phone service provider Celtel Kenya has appointed David Murray as its new chief executive to replace Gerhard May, who was recalled to Celtel International headquarters in the Netherlands last year. *Vodacom announces high-profile appointments which will be effective from 1 April. - Peter Matlare, who is currently executive director: commercial of Vodacom SA, will be appointed to the position of chief strategy and business development officer for Vodacom Group, and will continue to serve on the board of Vodacom SA. - Romeo Kumalo, currently the MD of Vodacom Tanzania, will be appointed to the position of commercial director responsible for sales, marketing and new products for Vodacom SA. - Dietlof Mare, currently MD of Vodacom Congo, will become the MD of Vodacom Tanzania for an initial period of three years. - Mervyn Visagie, currently MD of Vodacom Lesotho, will become the MD of Vodacom Congo for an initial period of two years. - Godfrey Mbingo will become the MD of Vodacom Lesotho for an initial period of three years. Godfrey will work alongside Mervyn in Lesotho for an initial period. *Cell C has announced that Simon Duffy, former president and CEO of NTL in the UK has been appointed as the chairman of the Cell C board. *Paul Seaton, general manager for the Middle East and Africa at NewSat, has resigned from the company to pursue personal business projects. EVENTS- 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 - 1stWEST AFRICAN E-CONTENT SUMMIT 4-7 April 2007 – Cotonou, Benin This ICT symposium expects to launch the official discussions to establish the “Panafrican Agency for New Media, advocated to provide training courses in new media management for young people in Africa in to bridge the content gap. For further information visit http://www.icnm.net/ - 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 - ICTS FOR CIVIL SOCIETY CONFERENCE June 2007 – South Africa The conference and exhibition organised by SANGONeT will be aimed at increasing NGOs’ awareness of the strategic importance of their websites and the online environment in general. For further information visit http://sangonet.org.za - TELECOMS WORLD AFRICA 31st July - 2nd August 2007, Johannesburg, South Africa Key decision-makers in South Africa and leading international players will share their expertise and forge invaluable business relationships in a highly interactive environment. For further information visit www.terrapinn.com/2007/telecomza - WI-WORLD AFRICA 2007 27 – 30 August 2007, Michelangelo Hotel, Johannesburg, South Africa. In Africa, fixed-line infrastructure is lacking and there is a major problem with copper wire theft. Wireless communication is therefore a great alternative. For further information visit www.terrapinn.com/2007/telecomza JOBS AND OPPORTUNITIESSENIOR PRE-SALES, MOBILE INFRASTRUCTURE, MESSAGING, SOUTH AFRICA. The company is looking for an experienced Senior Pre-Sales Executive to join this recognised industry leader in Telco Infrastructure Software. As part of a sustained growth plan we are looking to strengthen areas of success with several key hires in Sales and Pre-Sales for the EMEA Region. This Senior Pre-Sales position will focus on supporting the Sales team and their new Clients (tier 1 mobile operator`s across Africa, initially RSA). These are mature and well proven solutions for Mobile Service Providers/ Manufacturers (Security, remote config etc) backed up with great People and a future in one of the hot areas in Telecommunications. The Client is looking for a proven record in the sector, people management experience, with drive, an honest approach, backed up with relevant language skills. Tech skills/experience to include in depth Messaging, GSM, GPRS, UMTS Networks, IP and Unix. For further information contact advertising@balancingact-africa.com COMMON POLICY GUIDELINES AND MODEL BILL ON BROADCASTING IN COMESA PROJECT Application deadline: As soon as possible and at the latest Thursday 15 February Contract duration: Short term Company: Danish Management A/S (http://www.danishmanagement.dk/) for the RICTSP/COMESA. The objective is to develop a COMESA broadcasting policy guidelines and a COMESA Broadcasting Model Bill. Further information can be found at : http://www.comesa.int/ COMESA ICT Policy/Legislation: http://www.comesa.int/ict/policy/doc/view COMESA Model Legislation: http://www.comesa.int/ict/policy/model/view CONTRACTS: WHO'S SELLING WHAT TO WHOM?TERRACOM AND HUAWEI - RWANDA Telecom operatorTerracom signed a US$1million deal with Huawei Technologies Company Ltd. The latter has been contracted by Terracom to undertake its network expansion project. The operator is upgraded its CDMA network to EVDO to improve the quality of its service voice and data. NEOTEL AND MOTOROLA – SOUTH AFRICA South Africa’s second national operator (SNO) Neotel has awarded Motorola a contractfor the deployment of a wireless communications network. Motorola is providing radio frequency planning for Neotel in the run-up to its rollout of WiMAX and CDMA technology. ERICSSON AND MTN - AFRICA Ericsson and MTN sign a Memorandum of Understanding (MoU) worth 388 Million dollars. This agreement will focus and continue the expansion of the network operations for MTN and Ericsson in Africa and the Middle East, and will further strengthen the two companies' positions as the region's leading network operator and vendor of choice respectively.
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This page last updated on February 19 2007.
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