Balancing Act News Update - African internet developments

Balancing Act home page

Current issue

Full archive

Submissions

Subscribe

Order publications

About

Contact us

Search site

Amend subscription

En français


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

VYKE INTRODUCES VOIP RETAIL CALLS TO AFRICA AT NEAR TO WHOLESALE RATES

Telecoms news

Internet news

Computing news

Digital toolbox/In search of the business model

On the money

Web news

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.

To see the contents:
Part1: http://www.balancingact-africa.com/profile1.html
Part2: http://www.balancingact-africa.com/profile2.html
Part3: http://www.balancingact-africa.com/profile3.html
To order: http://www.balancingact-africa.com/publications.html
You can now order by credit card direct from this web site.

WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday.

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.

2007 RATE CARD AVAILABLE
To see a copy of our rate card for 2007, e-mail a request to: (info@balancingact-africa.com) Don't get left behind. Be seen and known through advertising in our e-letter and on our web-site.

ISSUE NO 360

TOP STORY:

Vyke introduces VoIP retail calls to Africa at near to wholesale rates

A new VoIP reseller called has entered the African market unobtrusively over the last few months and is now selling in some quantity in eight countries. So what you might say? Aren’t they a dime a dozen? Yes, but this one is offering retail prices to key destinations that almost match wholesale prices and claims to be offering high quality calling. Furthermore this is a company that has developed a free SIP plug-in for a Nokia phone and has an ambition to sell minutes to mobile users. Russell Southwood spoke to Havar Bauck, VP-Sales, Africa of Vyke about a company whose plans look like the worst nightmares for the sleepier of Africa’s incumbents and mobile operators.

Vyke offers VoIP calling minutes and the more traditional call-back services. The whole operation is extremely straightforward. The end-user signs up on a web-site, buys a scratch card and then sends an SMS to activate the account. On call-back services, you can send an SMS to get a number to call-back. You can buy credits in small quantities on pre-pay cards or in larger quantities through its reseller network. The calls can either be made using a soft phone on a laptop or PC or using a special VoIP phone or downloading a SIP client on to a Nokia Series 60 V.3 phone. The latter is not the cheapest thing on the market but promises to be the first of several more.

The company is looking for resellers who in the words of Bauck “have a broad network of customers.” These will often be individuals or companies selling to cyber-cafes and call-shops. He is also looking for companies who can get into chains of shops like travel agents who will be able to target incoming tourists going on safaris. “We are very selective about who we take on. Resellers get a significant discount that is built into the pricing structure, typically 30% and above.” The company currently has a presence in Kenya, Uganda, Ethiopia, Angola, Zambia, Nigeria, Burundi and DRC.

In the Middle East, it is a major supplier to call-shops and in some countries it has over 50% of the market. Typically these are small call-shops used by Indian and Bangladeshi migrant workers. It is also very big in the call-shop market in Europe, targeting migrants who are calling home.

What makes Vyke unusual is that its retail prices to major destinations look more like wholesale prices. It costs US1.8 cents to call the USA. Former imperial countries are slightly more expensive but extremely cheap by any comparison: Belgium: US3.3 cents ((US35 cents to mobiles); France: US2.1 cents (US22.9 cents to mobiles); Portugal: US2.8 cents (US29.9 cents to mobiles); UK: US2 cents (US25.9 cents to mobiles).

How do they achieve such low rates?:”We have good agreements with lots of carriers.” But what kind of quality can you get at this price?:”We offer the best quality. We have a team that does active follow-up on quality problems. We track down the weak links and re-route them.”

The company has found that there has been enormous growth since it started selling in Africa and has several countries where it is regularly selling tens of thousands of dollars worth of minutes. According to Bauck:”The demand seems almost bottomless.” The company has an overall turnover of US$35 million but Bauck would not give the turnover share of Africa, only saying “it’s a small proportion of overall turnover but Africa is a strategic market for us.”

Its long-term ambition is the scary bit for existing mobile operators. It wants to be a “leading mobile VoIP operator”. As Africa’s incumbents adjust their international rates to more competitive levels, mobile operators have had to follow suit. But there is still a significant price differential between the two. And this takes us back to the mobile paradox.

Once you’ve more or less built a network, it’s considerably cheaper to connect mobile subscribers than it is on a fixed network. But the cost of calling on a mobile network is more expensive than on a fixed network. Go figure. However, mobile VoIP calls at ever cheaper prices may soon begin to introduce convergence in the kind of practical sense the consumer might want.

For more details: www.vyke.com

ISSUE NO 360 TELECOMS NEWS

INDEX

SOMALI GOVERNMENT SEEKS END TO TAX-FREE BUSINESS FOR TELCOS

Years of tax-free business that have turned anarchic Somalia into a surprising hub of free-market enterprise may be coming to an end as the government targets the lucrative telecommunications trade. Despite violence and disease that have killed thousands since 1991 when warlords toppled dictator Mohamed Siad Barre, business in Somalia has thrived.

The country has three mobile telephone operators that run relatively reliable networks with some of the cheapest rates in Africa. Last week the government ordered Telkom Somalia, Hormuud and Nation Link each to pay US$75,000 a month in tax effective immediately.

Posts and Telecommunication Minister Abdi Mohamed Tarah Tarah was quoted by local radio as telling representatives of three firms over the weekend that "the government needs money".

"You will be required to pay tax from now on. Our country is in ruins. We are the ones who destroyed it with our own hands. Nobody will come to rebuild it for us. It's upon us," he said.

Imposing tax -- a basic government function -- appears to be no small task in Somalia, where businessmen have their own militias to ensure the free flow of trade in a nation that has been an unregulated and violent free-for-all since 1991. Many see it as an acid test for President Abdullahi Yusuf's shaky but internationally recognised government.

"We hope the government will start performing otherwise we will be losing a lot. We hope it's not taxation without representation," Telkom Somalia senior manager Mustaf Abdullahi told Reuters.

Free of taxes for a long time, apart from the cost of paying off local warlords and funding their own militias, businessmen are having to adjust and say they are willing if they get some services from government in return.

"Officials from the ministry told us we are required to pay the money end of the month. It's a bit high," Mohamed Abdullahi Sheikh, president and CEO of Telkom Somalia, told Reuters.

Abdullahi, the senior Telkom manager, said the government must deliver good security and rebuild roads and other infrastructure to cut down on huge costs companies incur. "The business is profitable but comes with its risks," Abdullahi told Reuters. "We are not used to paying taxes since they were zero regulations before this government came."  Gunbattles frequently destroy the company's expensive equipment, he said.

Speaking minutes after pulling a new phone line to a client, one Nation Link technician who declined to be named said the taxes should be based on how much a company earns. "I don't think we even make that much money," he said, shaking his head. "We are ready to pay taxes but I think that's too much. The government should state a reasonable fee."

(SOURCE: Reuters)

THE SH7 BILLION MYSTERY - WHO OWNS MOBITELEA IN KENYA?

The identity of those behind Safaricom's mystery shareholder continues to confound Kenyans many months after a parliamentary investment watchdog began to look into the matter. Nevertheless Nairobi gossip has for months maintained that the mystery shareholder is the son of a well known Kenyan politician.

Mobitelea Ventures Ltd is a shell company registered in Guernsey that in 2003 was allowed by Vodafone to acquire a five per cent stake in Safaricom, the country's biggest mobile operator. The shares, held through Vodafone Kenya, are now worth at least US$100m (Sh6.7 billion).

Mobitelea's real owners are hidden behind two nominee firms, Guernsey-registered Mercator Nominees Ltd and Mercator Trustees Ltd. The directors are named as Anson Ltd and Cabot Ltd, based in Anguilla and Antigua.

The companies are the creation of the Mercator Group, a family of businesses led by David Preston, a chartered accountant who once worked for Deloitte and Touche in London and Guernsey. The group specialises in creating and running international dummy companies, offshore trusts and other services.

When Safaricom sends out dividend cheques for its two main shareholders, Telkom Kenya and Vodafone Kenya, some of the money will find its way to Guernsey where the Mercator Group will forward it to Mobitelea's owners.

According to the Guernsey Financial Services Commission, the Mercator Trust Company Ltd, Anson Ltd and Cabot Ltd were all created at the same time in a joint application. The application also created another 20 dummy companies to be used to keep similar shareholdings secret.

The 20 include five Mercator Group firms as well as Alex Picot & Company Ltd, AT Nominees Ltd, AT Trust Company Ltd, Chrisalis Trustees (Guernsey) Ltd, Dewsbury International Ltd, Exchange Services Ltd, First Alliance Trust (Guernsey) Ltd, Isis Fiduciary Corporation, MRG Services Ltd, Ormond Ltd, Pearson Fraser Consulting Ltd, Pearson Fraser Ltd, Quill Trust Company Ltd, Saints Bay Trust Company Ltd and Winslow Secretaries Ltd.

(SOURCE: East African Standard)

NCC SANCTIONS MTN NIGERIA FOR POOR SERVICE

The Nigerian Communications Commission (NCC) has slammed its hammer down on MTN Nigeria for poor services on its network after several warnings. Henceforth, MTN should submit to the commission on weekly basis a report of its achievements on quality of service parameters for an initial period of ninety days or until it (MTN) improved service quality, the commission said.

  In a letter dated June 14, 2007 and addressed to the Chief Executive Officer of MTN Nigeria titled: Issuance of direction to MTN Nigeria Communications Limited Pursuant To Section 53 (1) of the Nigerian Communications Act, 2003, NCC said it has banned all new promotions encouraging more call minutes.

"In exercise of its powers contained in Sections 4 (1) (b), 53 of the Nigerian Communication Act, 2003 and Condition 30.3 of the Digital Mobile Licence, the Commission having also considered the appeal of MTN, hereby issues Direction as follows:

That MTN should not embark on any future promotional activities geared towards encouraging more minutes of calls in excess of its current capacity for a period of ninety (90) days in the first instance. "This shall take effect within seven (7) days from the receipt of this Direction".

That MTN should comply with quality of service parameters stated in the said notice of intention to issue a direction and should submit to the Commission on weekly basis a report of its achievements on these parameters for an initial period of ninety (90) days or until the QoS improves. The Commission expects to receive the first report on June 25, 2007;

"The Direction not to embark on future promotional activities above may be subject to a thirty (30) day review so as to monitor improvements in the quality of service level" the commission said. NCC said if MTN fails to comply with this directive, the Commission shall in accordance with the Nigerian Communications (Enforcement Processes etc) Regulations 2005 impose a fine of N5million and a further sum of N.5million per day that such penalty remains unpaid and for as long as the contravention persists.

(SOURCE: Daily Trust)

ETHIOPIAN TELECOMMUNICATIONS AGENCY SIMPLIFIES SPECTRUM LICENSING

The Ethiopian Telecommunications Agency on Wednesday announced a procedural restructuring to enable it to live up to customer demands. The Basic Procedure Restructuring, technically termed as BPR, is said to make the agency 97.5% more efficient by allowing customers and stakeholders to enjoy good and workable access of licensing telecommunication and radio frequency in a much shorter period and with less cost.   Under the new BPR, the 49 steps one is required to go through to be issued the license have been reduced to be just three thereby relieving the customer a significant amount of resource and time said Zewdu Kassa , Customer Service and License Office Head with the Agency.

Moreover, in terms of time that is wasted to get things done in licensing, the new structure will reduce the current 16,800 minutes to 120 minutes. It will also slice the 6,890.55 Birr it normally takes one to just 51.10 birr.

Speaking at a consultative workshop with customers and stakeholders on BPR at Ghion Hotel, the Agency's General Manager, Eshetu Alemu, said the new BPR which he said was the result of a comprehensive research, was primarily intended to boost the agency's capacity to be come compatible with the needs of customers and stakeholders.

"Since the agency started with strategic plan and work management in 1998 E.C fiscal year, the agency has conducted a research that enables implementing the new basic restructuring procedure that would soon be transformed to a practical action," Eshetu said.

The research identifies several drawbacks from the previous procedure that "put some irrelevant requirements on customers" and "greatly limited the rights of citizens." The agency said the new BPR has created a mechanism by which it will work with Custom Authority in inspecting the smuggling of radio tools with out the recognition of the agency.

It said individuals organizations including those 'authorized' ones will be put under strict control. "We have the experience that there has been the possibility that some organizations or individuals smuggle radio tools and programs with out the agency's permission." "To curb this problem, we are working with the Customs Authority in addition to the technology that we will use to monitor and control with a proper inspection method," Zewdu added. He however indicted that there are some conditions which may be out of the Agency's controlling span. It was not clear if the official was referring certain government authorities.

(SOURCE: Daily Monitor)

M-CEL APOLOGISES FOR DEFACING WORLD HERITAGE SITE IN MOZAMBIQUE

Mozambique's main mobile phone company, M-Cel, has apologised for defacing the walls of historic monuments on Mozambique Island, off the coast of the northern province of Nampula.

The island was the first colonial capital of Mozambique, and its unique blend of Africa, Arab and European cultures led the United Nations Education, Scientific and Cultural Organisation (UNESCO) to declare it a World Heritage Site.   Central and local governments have a responsibility to defend the integrity of World Heritage Sites. UNESCO was therefore shocked when huge and garish advertisements for M-Cel began to appear on the walls of publicly and privately owned buildings on the island.

This is the equivalent of a French company daubing slogans on the front of Chartres Cathedral, or of a British one turning the megalithic monument of Stonehenge into an advertising venue.

Local UNESCO representatives approached the Mozambique Island municipal authorities asking them to stop M-Cel defacing the buildings, pointing out that the adverts were unacceptable under the principles for protecting world heritage sites.

It also violated municipal by-laws, and was in sharp contradiction with the declared objective of the Mozambican government to uphold the cultural and architectural integrity of the island.

The Mozambique Island Conservation Office (GACIM) was neither consulted nor informed of the painting. Since the Municipal Council (run by the former rebel movement Renamo) seemed unwilling or unable to end the vandalism, UNESCO called on the Ministry of Education and Culture to step in and repair the damage. But such intervention may not be necessary, since M-Cel itself has now ordered the paintings removed, and the original colour of the walls restored.

The apology published by M-Cel blamed the painting on a company that had been subcontracted locally to run the M-Cel advertising campaign in that part of the country. But M-Cel had apparently not imagined that this company would deface parts of a World Heritage Site.

The way the adverting campaign was implemented on Mozambique Island "is an affront to the values that M-Cel defends as an ethically and socially responsible institution", the M-Cel statement read. It pledged a speedy repair of the damage to the buildings and reiterated its "total commitment to the preservation of the historic and cultural heritage of our country".

(SOURCE: Agencia de Informacao de Mocambique)

Advertisement:
Need to know about African satellite prices' What’s happening in Africa’s VoIP markets' Need to predict traffic for Sub-Saharan African countries or North Africa'
You need Balancing Act’s forthcoming reports and you can get 10% off if you order now: http://www.balancingact-africa.com/publications.html

IN BRIEF:

- Following numerous public complaints regarding poor quality of communication services experienced at certain locations and times within Ghana, the National Communications Authority (NCA) has intensified its monitoring and evaluation and set out clear compliance guidelines for the sector. Deadlines have been issued to all operators to remedy all quality of service impediments by the close of July this year, failure of which the NCA will apply in full all the requisite sanctions.

- In its continuous effort to clean up the telecommunication sector, Benin’s new Minister of ICT, Désiré Adadja has reaffirmed that the change of name/ownership of mobile operators Moov and Areeba has been suspended until both companies have provided the relevant documentation for their licence. Nevertheless, Areeba has carried on advertising the change to MTN all over the country.

- The Nigerian Communications Commission (NCC) has announced a tender for existing Nigerian telecoms licensees to bid for a 3.75MHz allocation in the 800MHz spectrum band covering 26 states and the Federal Capital Territory. The spectrum is being offered by the NCC on a technology neutral basis. The reserve price for the frequencies has been set at NGN400 million (USD3.2 million) and the concession will be valid for a period of five years in the first instance. Based on the number of companies that have already indicated interest for spectrum in the 800MHz band, the NCC has decided to hold an auction. The deadline for the submission of bid applications and an ‘intention to bid’ deposit of NGN40 million is 9 July 2007. The auction itself is slated for 17 July.

- According to Gabonnews, senior civil servants have met to analyse Gabon Telecom’s and its mobile subsidiary Libertis latest financial accounts prior to its privatisation. Since the privatisation of the company in February 2007 and the purchase of a 51% stake in the company by Maroc Telecom, Gabon Telecom has come under the fire of local media which have questioned the privatisation process and revealed mismanagement cases by the previous management team of the company.

- Mali’s fixed line operator, Sotelma has reported the vandalism of one its switches. The area of Koulouba which includes the presidential building has been cut off of voice and data services for several hours.


TELECOMS, RATES, OFFERS AND COVERAGE

- Mozambique's publicly owned mobile phone company M-cel has announced that it is slashing the cost of calls from the M-Cel network to fixed phones by 50 per cent. This price cut is a serious blow to its competitor, the South African company, Vodacom. Both companies have engaged in an advertising battle the like of which Mozambique has never seen before.

- In Zimbabwe, NetOne subscribers currently burdened by network problems will have to pay more to talk as the service provider has hiked tariffs by more than 1,000 percent to try and stay ahead of rocketing inflation.

- Safaricom, Kenya’s largest mobile operator, last week announced the reduction of its calling rates by 50 percent. In the new calling rates plan, the cost of calls is reduced from 50 shillings per minute to 25 shillings during off peak periods and 30 shillings during peak periods.

- South Africa-based pan-African telecoms company MTN Group has announced it is rebranding its Ghanaian unit Spacefon Areeba under the MTN umbrella, soon. It is also rebranding its Areeba operation in Benin.

- i2, a mobile phone provider has successfully inaugurated its newest service center in Dakar, Senegal.

Everything you wanted to know about interconnection but were afraid to ask:
A new report from Balancing Act: Setting interconnection prices in Africa. For contents see:
http://www.balancingact-africa.com/interconnect.html

Advertisement:
VoIP will be legalised in Africa.
It's not a matter of if but when. Find out where it will happen first in African Internet Country Market Profiles, Part 1: West Africa.

For details and how to order by credit card direct from the site:
http://www.balancingact-africa.com/publications.html

ISSUE NO 360 INTERNET NEWS

INDEX

VODACOM PLANS TO OFFER SOUTH AFRICAN BROADAND USERS A SINGLE ACCOUNT TO COVER MOBILE, DSL AND HOT-SPOTS

Vodacom is working on an innovative new broadband account which may allow their subscribers to have a single account across all broadband services. Vodacom is aggressively targeting the broadband market and will soon add ADSL to its current 3G/HSDPA and iBurst offerings. They are further investing billions in their own fiber network to alleviate their current backhaul bandwidth constraints and cater for future demands.

A valuable addition to their growing broadband product range will be a single account which can be used on any service, independent of the access technology. Good news for consumers is that Vodacom is already working on such a product.

According to Pieter Uys, COO of Vodacom, the last mile access technology used to connect to the broadband network will become insignificant in future. This falls in line with visions of ubiquitous broadband in SA where various access technologies will serve consumers’ needs to stay connected wherever they are.

A typical example is a subscriber with a fixed line ADSL service at home or in the office, with a ‘wireless broadband’ enabled laptop for business trips and an HSDPA smart phone for checking email and surfing the web when away from the office.

Currently most users will have two or more accounts to use with their various broadband services, and a single account is a logical progression to make it easier for consumers to manage multiple broadband connections.

Vodacom is gearing up to become a one-stop broadband shop and have plans to supplement their HSDPA and iBurst services with ADSL and WiMax before the end of this year.

While they will initially only resell ADSL services from Telkom, the company is already looking at using their own network to provide all the bandwidth required for the different broadband offerings.

Vodacom is hence well positioned to launch an all-in-one broadband account in future, something which should make other operators like Telkom and MTN sit up and take note.

(SOURCE: MyBroadband)

TELECOMS SHIFT BATTLE GROUNDS TO INTERNET IN UGANDA

Uganda's mobile telecommunications market is widely acknowledged as having grown at a terrific speed--at least by sub Saharan African standards. From almost insignificant numbers a decade ago, now more than 2.5 million Ugandans have cell phone handsets, a good number of them complete with the slick features and functions like cameras, radio, large memories for video and audio file storage, blue tooth, infrared and suchlike.   It's been all too good, quite an easy ride for the three big telecom companies--MTN, UTL and Celtel. But then, suddenly, it looks as though the end of this mobile phone bonanza is nigh, a reality that has these companies scrambling to break into new areas that will help them secure their own telecommunications market share and also sustain their commercial dynamism.

The differentiation of what the three network service providers offer to their respective clients is increasingly becoming thinner and hazier. It is less a question of what but who did it first. The new area of battle is the Internet. And here, it appears as though the game is already over even before it starts. MTN recently launched WiMAX broadband Internet access service, the world's latest wireless access technology. WiMAX enables the delivery of last mile wireless broadband access as an alternative to wired broadband like cable and Digital Subscriber Line, DSL.

"We are the first to deploy WiMAX on such a large commercial scale in the whole of Africa," MTN's Eric Van Veen said in an interview last week. WiMAX provides wireless broadband connectivity to fixed, nomadic and portable devices without the need for direct line-of-sight with a base station. Soon, the technology is expected to develop compatibility with mobile phones.

WiMAX is a cousin of the WiFi hotspot internet service which is currently offered by UTL and Celtel's Infocom at dozens of locations in Kampala and Entebbe. Currently, MTN has already extended the broadband internet access service to cover over 40 towns in Uganda, from Kampala city to the country's fringes of Kabale, Mbale, Soroti, Gulu and others.

It's not yet clear how the introduction of this technology will spur a revolution in Uganda's Internet and data transmission market. But two of the technology's unique abilities seem to illuminate for us the direction that WiMAX might take us.

For the first time, WiMAX will enable the delivery of Internet services to the most extreme rural and physically isolated parts of the country - something of an extra ordinary achievement by Sub Saharan African standards. It is now easy for instance for schools, hospitals, local administrations, NGO outposts and other institutions to connect to the worldwide informational web without the inconvenience and costs of a cable connection.

Secondly, these rural people will experience some of the best Internet access speeds now found only in a few city cafés and big companies. But even with WiMAX's remarkable speeds, MTN will not find it easy to win the Internet turf battle.

A month ago for instance Celtel launched, GPRS Edge, a wireless technology that transmits data to mobile handsets, PDAs, notebooks and even desktops. In an interview last week, Celtel's Head of Marketing and Corporate Affairs Martin Sebuliba said GPRS Edge was far superior and faster than the GPRS upgrade that MTN has been using. "It's a great service and the speeds are nice," he said.

Comparatively GPRS is also, in a way, more user-friendly. It is delivered over the GSM network and thus allows a person to move anywhere and still be able to access the web as long as you're within reach of the mobile network. "How more convenient can it be; getting the net wherever you find yourself," Mr Sebuliba mused.

UTL's Communications Director Mark Kaheru said that the company has an equally competitive high-speed internet service that its customers can rely on.

"Uganda telecom broadband is an extremely fast internet access, targeted at those that need and appreciate the value of extreme speed," a comment on UTL's website states. Customers, it adds, can experience speeds of up to 128Kbps. The WiMAX though clearly dwarfs this, since it offers speeds of up to 100Mbps, although in practice the speeds delivered to customers are lower.

The WiMAX broadband is bundled in three categories. A download of data of up to 200Mb (for light internet users) costs up to Shs115,000, a ceiling of 500Mb goes for Shs220,000 while a 1GB download, the maximum (suitable for corporate users) stands at Shs395,000. On top of that there's in installation fee of Shs295,000.

Celtel's GPRS Edge, while mobile, also involves considerable upfront costs. To use it on a notebook or desktop, one needs a GPRS Card which costs Shs340,000.

(SOURCE: The Monitor)

HOW DO TELKOM SOUTH AFRICA’S WIMAX OFFERINGS COMPARE ON PRICE?

Telkom announced that they will launch their commercial WiMax offering last week week, and that the prices will fall in line with their current ADSL offerings.  Telkom’s will use WiMax mainly as an ADSL replacement technology which will offer consumers a 512 Kbps broadband service using WiMax as a wireless access method.

‘Stand alone access’ is priced at R 240 per month, while the all-inclusive price for a 1 GB service is R 319. The 2 GB offering costs R 389 while the 3 GB service retails for R 479. These prices are more or less in line with other broadband offerings in the market, but they lag behind on ‘speed versus price’ when compared to HSDPA, iBurst and MyWireless.

Meanwhile, other South African telcos are preparing their own WiMAX services. Cellular operator Vodacom, in which Telkom owns a 50% stake, is planning to go head-to-head with its parent company by launching a 2.6GHz WiMAX system in partnership with wireless ISP iBurst.

The second national operator Neotel is also planning a WiMAX launch for the end of this year, while local ISP MWeb recently began WiMAX trials with 1,000 users in Gauteng and Cape Town.

(SOURCE: MyADSL)

ZIM ONLINE INTRODUCES WI-FI HOTSPOTS IN HARARE, BULAWAYO AND MUTARE

ZOL, in conjunction with various coffee shops and hotels that have been labelled ZOLspots, is now offering services whereby customers can access the Internet using laptops and hand-held devices (cellphones) while enjoying a meal.

ZOL chief operating officer Caroline Mugwanyo said Wi-Fi has generated a lot of excitement since its introduction."We introduced Wi-Fi in the country two months ago. Initially, the response was slow but now it is overwhelming. We have a large number of establishments requesting to become partners," she said.

Already a number of establishments have taken advantage of Wi-Fi connectivity which are private Wi-Fi networks that run with ZOL's technical support. ZOL applauded Wi-Fi's high download speeds as faster than normal dial-up connections.

"Wi-Fi uses speeds of up to 256K on a high-speed low contention broadband link. This translates to speed eight times faster than a standard dial-up connection," said Mugwanyo.

ZOL account executive Harry Harrison revealed that Wi-Fi was also available to individuals intending to install it in their homes or offices. "Wi-Fi is available to individuals, but the only difference is that they would have to purchase the equipment unlike the ZOLspots with whom we enter into partnership," he said.

Explaining how the system operates, Harrison said: "A browser purchases a voucher at any ZOLspot and gets access immediately. Vouchers are good for anything from 15 minutes to two months," he said. ZOL is also set to access other areas in the country with Bulawayo and Mutare already up and running.

(SOURCE: The Herald)

IN BRIEF:

- Malawi incumbent telco Malawi Telecommunications Ltd (MTL) has launched MTL FreeNET, a dial-up internet service for its fixed line customers in the capital Blantyre, via the company’s own ISP MTL Online. ‘FreeNET is a dial-up service, which will enable MTL customers to have access to the internet with no monthly subscription or registration, and the service connects to your computer via a modem and your MTL line,’ said one company official, adding that MTL was targeting a potential 70,000 internet users.

- There were 3.9 million unique internet users in South Africa in May, according to a report from Nielsen//NetRatings compiled with the Online Publishers Association. That compares to a total population of around 44 million. The number of users is up 121 percent from 1.8 million two years ago. Page impressions grew by 129 percent during the period, to 207 million from 91 million in May 2005. The report found that most interest users in the country are male, aged 25-49 and speak English.

- Arianespace said it had won a contract from Thales Alenia Space to launch Africa's first pan-continental telecommunications satellite.  The launch, at Kourou in French Guiana, is scheduled for the fourth quarter of 2007. The Rascom 1 satellite, built by Thales Alenia Space as part of a contract originally awarded to Alcatel Space in June 2003, will supply telecoms, Internet and TV services to rural areas and cities and will also provide inter-urban and international connections. The original contract was awarded by Mauritius private group RascomStar-QAF.

ADVERTISEMENT

Need to know about the state of the internet in West Africa?

The key issues in each country? Who are the ISP players? What number of subscriptions? The size and state of the international and domestic backbones? The number of cyber-cafes? The state of play with regulation? What content exists?

The long awaited first part of Balancing Act's African Internet Country Market Profiles is now out and covers 22 countries in West Africa. It also contains a summary overview of the internet in these countries and a look at the coming legalisation of VoIP in West Africa: who will be the winners and losers?

To see the contents: http://www.balancingact-africa.com/profile1.html
To order: http://www.balancingact-africa.com/publications.html
You can now order direct from the web site by credit card.

ISSUE NO 360 COMPUTER NEWS

INDEX

FIVE COMPANIES BID FOR GHANA STOCK EXCHANGESE AUTOMATION

Five companies, one local, have submitted bids for the contract to automate the Ghana Stock Exchange (GSE). A team constituted by the Exchange will start the evaluation of the companies very soon to select one to execute the contract.   The World Bank is assisting the Ghanaian bourse with US$1billion to automate trading. Ekow Afedze, the General Manager of the Exchange said the assistance from the World Bank is to automate our trading system, which would generally enhance the operations of the GSE.

"It is expected that automation of trading on the GSE will greatly increase liquidity on the market, lead to increased volumes, enhance competitiveness, and increase investor confidence among other things," he added.

The GSE is presently operating a T+3 settlement system and has 32 companies listed on the Exchange. Some of the challenges facing the Ghana Stock Exchange were on infrastructure, liquidity problem and how to attract companies to list on the Exchange.

The Exchange has provisional listings meant for small-scale enterprises. This listing is targeted at companies that cannot meet full requirements for listing. Already there are four of such companies listed on the Exchange.

Market capitalisation as at May 2007 was ¢114,317.01 million. About 116.73 million shares were traded between January and May 2007. GSE was incorporated in July 1989 as a private company limited by guarantee under Ghana's companies' code, 1963 (Act 179). The Exchange was given recognition as an authorised Stock Exchange under the Stock Exchange Act of 1971 (Act 384) in October 1990, and trading on the floor of the Exchange commenced in November 1990. In April 1994, it was converted into a public company limited by guarantee.

(SOURCE: Ghanaian Chronicle)

NEW TUNISIAN AGENCY SET UP TO BOOST E-COMMERCE

A new agency has been recently set up to supervise, guide and advise small and medium enterprises, as well as other enterprises in their e-trading dealings. The agency which is called the Technical Agency for the Promotion of Electronic Commerce was set up under the aegis of the Tunisian Ministry of Commerce and Handicrafts. It will consist of a one stop shop which will gather all the procedures necessary to the launching of sites, the selling of goods, as well as on line services.

Observers note that the number of on line transactions has strongly increased from 7,658 in 2005 to reach 63,000 transactions in 2006, representing an increase of 800%. However e-commerce remains relatively little developed in the country with only 250 e-commerce sites out of a total of 4566 sites.

(SOURCE:  Tunisia Online)

BANKS, ICT FIRMS, OTHERS TO CONTRIBUTE 1 PERCENT PROFIT TO IT FUND IN NIGERIA

A new law has compelled all banks, insurance, informa-tion and communication technology companies to dedicate one percent of their profits before tax to the National Information Technology Development Fund (NITD Fund).

The money would be channel for the development of information technology in the country, the Director General, National Information Technology Development Agency, Professor Cleopas Officer Angaye has said.   Speaking at the Inauguration of the implementation Committee of the 2007 NITDA Act in Abuja, Angaye said the fund will be deducted out of the tax paid to the federal government by the companies.

He said it is not a new tax on the companies, "It is out of the share of the federal government". According to the new law "a one percent of the profit before tax of companies and enterprises enumerated in the Third Schedule to this Act with an annual turnover of N100,000,000 and above and such paid by the companies shall be tax deductible".

Angaye said the fund is necessary looking at the challenges in the sector, saying the new law would be at immense importance in moving the sector forward. He said IT initiatives are money demanding, therefore requires such fund to survive. He pointed out that government alone can not shoulder the responsibilities.

The new law said the Federal Inland Revenue Service (FIRS) shall assess and collect the levy imposed under section 12 of this Act. "The levy imposed under section 12 of this Act shall be due and payable within 60 days after the federal Inland Revenue Service has served notice of the assessment on a company in such form as the federal Inland Revenue Service may, from time to time, determine".

"Any company, agency or organization that fails within two months after a demand note, to pay the levy or the import duty imposed under section 11 of this Act commit an offence and is liable on conviction to fine of not less than 1,000,000 and Chief Executive officer of the agency or the organization shall be liable to be prosecuted and punished for the offence in like manner".

(SOURCE: Daily Trust)

KILIMANJARO AIRPORT NOW GOES DIGITAL

The Kilimanjaro International Airport is getting more 'cute.' KIA is in the process of becoming the first air terminal in the country to be installed with the state-of-the-art, Common Use Terminal Equipment system, which will reportedly be the ultimate upgrade to the aviation industry's best practice so far.

The Kilimanjaro Airport Development Company (KADCO) which manages KIA, has selected SITA for the provision of the latest Common Use Terminal Equipment (CUTE®) system for its check-in and departure desk environment. SITA is said to be the world's leading service provider of IT business solutions and communication services to the air transport industry, with over 55 years experience.   Captain Phillemon Kisamo the Managing Director for KADCO explained that it was high time the airport got latest technology in order to be more competitive in the aviation industry. "KIA may be the first terminal to acquire SITA's IT system in Tanzania but a number of airports in Africa including our neighbor, the Nairobi's Jomo Kenyatta airport have already adopted it."

The Other Air terminals that are operating through SITA's CUTE system on the continent, include, South Africa's Johannesburg International Airport; Egypt's Cairo Airport and Ethiopia's Addis Ababa International Airport. Kilimanjaro International Airport intends to become the fifth.

According to Sam Munda, the SITA's Sales Director for Sub-Saharan African region, his company manages complex communication solutions for its air transport, government and Global Distribution System (GDS) customers over the world's most extensive communication network, using VSAT (Very Small Apparatus Terminal), complemented by consultancy in the design, deployment and integration of communication services. SITA's CUTE systems maximize airport space by reducing the need for dedicated check-in areas, and providing the best facilities for passengers using existing KIA airport buildings. SITA developed the first ever workstations, and its terminals are now used by some 285 customers at over 220 airport locations worldwide, checking-in over 580 million passengers annually.

"By selecting the latest Java based, Internet Protocol (IP) enabled CUTE terminals, the Kilimanjaro International airport, once fully installed, will reportedly reduce costs, increase flexibility, optimize resources and facilitate the flow of passengers through the airport." Added, Marc Lumley the SITA's Airport and Desktop Business Development manager for Africa.

Lumley explained that, SITA's CUTE technology is compatible with the latest Internet protocol standards, preparing the airport for web-based check-in applications, which are increasingly being used by airlines. Once implemented, the system will be running over SITA's CUTE/XP platform and enable airlines and third parties to construct their own CUTE-compliant applications for Windows XP, NT, 3.1 and Java.

This will enhance the number of applications at the airport that can be integrated into the CUTE system - whether new or old - all operating on the most extensive, stable and expandable common use system available.

But won't this make a number of employees at KIA lose their jobs? "Hardly, in fact once we upgrade, the Airport may need to employ even more people." assured John Cassian, KADCO's IT and Communications Officer.

(SOURCE: Arusha Times)

IN BRIEF:

- Algeria’s  Minister of Labour, Employment and Social Security Tayeb Louh called, on to generalise the use of the chip card "Chifa" in all the provinces of the country by 2010. During his meeting with the administrators of the centres of Social Security in five pioneer provinces which have introduced "Chifa" card, Louh stressed that it would be used for the third-party payers in 2012.

- According to local newspaper Fraternité Matin, a group of British businessmen from the West Africa Business organisation have expressed some interest in investing in Côte d’Ivoire free trade technology park project Vitib which is located in Grand Bassan nearby the capital Abidjan.     - The Ubuntu team released details of plans for its next release, Ubuntu Gutsy. New features include a mobile edition, the latest version Gnome and KDE 4.0 and improved hardware support.

ISSUE NO 360 ON THE MONEY

INDEX

SAUDIS UNVEIL US$1BN PLAN FOR AFRICA  

Saudi Arabian company HiTs Telecom is making a major push into Africa, with an acquisition under its belt and a $1 billion investment plan.  HiTs wants to set up eight operators by 2009 and another two in the third year, offering a range of mobile and fixed-line voice, 3G, WiMax, data, and international gateway services.

It's already gone some way towards that goal. HiTs acquired a universal service license in Uganda in March and picked up a 45 percent stake in Liberia's second largest mobile operator, LiberCell, in April, with an option to increase its holding to 75 percent by next year. However, LiberCell is the smallest operator in a very competitive market. The company is also in discussions to acquire licenses in Tanzania and the Democratic Republic of Congo.

The African operations will come under the umbrella of HiTs Africa, a new company it's set up to manage its interests in the continent. The move will be a win for equipment vendor Huawei Technologies Co. Ltd. , which has signed up as a technical partner to provide network rollout and management services, as well as lending its knowledge of local markets.

HiTs has also enlisted the help of Singapore-based MSM to provide project planning and management services, Squire Sanders for legal counsel and advice on regulatory issues, Devoteam for IT consulting, and Palace Venture Capital and Ithmaar Bank to provide financial advice.

HiTs Telecom owns several companies in the Middle East, where it's also in expansion mode. In Saudi Arabia it provides distribution services through its subsidiary Qanawat, retail mobile services through 4Run, and mobile payments via Q Pay. It's also part of the consortium behind Integrated Telecom Co. (ITC) , Saudi Arabia's second fixed-line service provider. In July 2006 HiTs acquired the third GSM license in Yemen, where it expects to launch its HiTs Unitel network in the second half of this year.  The company is set to open two other new subsidiaries: HiTs Distribution Yemen, which will act as a lead distributor for HiTs Unitel, and HiTs Distribution Egypt.

HiTs is among a number of Middle Eastern operators eager to tap into Africa's growth potential. The likes of Mobile Telecommunications Co. (MTC) , Qatar Telecom (Qtel) , and Orascom Telecom have operators in the continent, which has a combined population of 900 million and an average telecom penetration of 20 phones per 100 people.

(SOURCE: Light Reading)  

UGANDAN MPS QUERY CHINESE FIBRE OPTIC LOAN

Members of Parliament are furious that the government has signed a memorandum of understanding with a Chinese firm to construct fiber optic network before the legislature approves a US$30 million loan (about Shs51 billion) deal meant for the work.

According to the chairman of the Parliamentary committee on the National Economy Kaddunabi Lubega (MP Butambala), the ministry of Information and Communication Technology signed an agreement with Huawei Technologies Company Ltd to kick start the Uganda Integrated e-Government project, before a loan to fund it was approved.

"We have all the reasons to wonder. We have not approved the loan but the company is already doing the work, if Parliament does not approve the loan what will happen?" Kaddunabi asked. The MPs on the committee said that although the intention of getting a loan is good and is aimed at improving on the information infrastructure, it is not a concession as government claimed.

"A concession loan according to World Bank standards and national debt strategy is supposed to be 1 per cent interest and this one is 2 per cent. The re-payment period is 20 years not 10, and the grace period of 5 years is short compared to 10 years required," Kaddunabi said.

The government wants Parliament to approve the $30 million loan (about Shs51 billion) to enable it contract Huawei Technologies to connect a fiber optic net work from Entebbe to Jinja.

(SOURCE: The Monitor)

SAFARICOM SETS NEW RECORD WITH SH17 BILLION IN PROFITS IN KENYA

Record profits at Kenya's leading mobile phone company will see Sh4 billion in dividends paid out to its shareholders, even as Sh18 billion is ploughed back into new investments. Safaricom has set new highs for company earnings, raking in Sh17.2 billion in profits before tax, an increase of 41 per cent over the last financial year.

An upbeat CEO Mr Michael Joseph immediately announced further capital investments of Sh18 billion for the coming year, putting the seven-year-old company's total capital investments at Sh65 billion since it was founded in October 2002.

The money will be spent in network capacity enhancement and expansion, with current coverage standing at 60 per cent of the population and 27 per cent of the total geographical area.

The company provided mobile services worth Sh47 billion in the 12 months to March 31 this year. At the same time, its active subscribers rose from 3.9 million to just over 6 million.

Their business has resulted in easy money for Treasury, which took in over Sh18 billion in tax alone. The Government, through Telkom Kenya, will also benefit from a 60 per cent share of the Sh4 billion in dividends recommended by the directors.

Telkom Kenya has in the past failed to share in the company's dividends, which have been offset against debts owed to Safaricom by the cash-strapped parastatal. This year, however, Joseph said that the State-owned firm has paid off all its debts owed to Safaricom and will be taking a significant share of its dividends. Mobitelea Ventures, with a 12.5 per cent stake in Vodafone Kenya (and therefore five per cent of Safaricom) can expect a Sh200 million cheque.

Chief Financial Officer Les Baillie announced that the company has a total long-term debts figure of Sh10.4 billion as at March 31, supported by total non current assets of Sh46.3 billion. The money is mainly owed to a group of local banks and its shareholders and represents an increase of Sh1.2 billion over the previous year.

The CEO predicted further growth in both profitability and subscriber numbers, with the latter hitting eight million over the next year. He also singled out the Saasa tariff and the M-Pesa money transfer service as key products to the company's future profitability. M-Pesa, Joseph said, has so far been used to send over Sh500 million in small amounts countrywide.

On Tuesday, Finance ministry permanent secretary, Joseph Kinyua, said the State expects to sell half its stake in mobile phone operator Safaricom by December and raise Sh40 billion. "The Government intends to sell 30 per cent to the public by the end of 2007. We expect to raise about Sh40 billion," he said. The operator is to be sold off via an initial public offering, which investors on the Nairobi Stock Exchange are eagerly anticipating.

The Government has previously indicated it would consider listing the company, rated Kenya's most profitable, on a bourse outside the East African country to attract more investment into Kenya. Safaricom's main competitor in the country of 35 million people is Celtel, a subsidiary of Kuwaiti-based operator MTC.

(SOURCE: East African Standard)

NIGERIA’S NASDRA SEEKS $100M TO BUY STAKES IN RASCOM

The National Space Development and Regulatory Agency of Nigeria (Nasdra) has asked for $100 million from the Federal Government to buy shareholding in the Regional African Satellite Communications Organisation (RASCOM), a pan-African satellite organisation that plans to provide Africa with its own satellite for relaying telephone, data and TV signals.

Rascom, which represents the interests of some 38 African telecoms operators and other investors, had in 2000 formed a commercial entity, RascomStar-QAF, which plans to launch the first African satellite covering the whole continent later this year.   Technology Times checks revealed that Nasdra, in justifying the request for the additional funding, has cited a potential threat to marketing capacity on its recently launched Nigcomsat-1 and hopes to assuage this by buying stakes in the pan-African venture.

To achieve this, Director-General, Nasdra, Victor Borroffice, has made the request to government, citing the challenge posed in selling Nigcomsat-1's capacity because of perceived competition from the continental spread of Rascom.

However, Technology Times checks revealed further that Nigeria already participates in the Rascom initiative as the national operator, the Nigerian Telecommunications Limited (Nitel), already holds 6.91 per cent stake in the consortium made up of 38 other African telecoms operators.

Additionally, Nigeria, through Nitel, also owns 7.33 per cent stake in the the South Atlantic Telecommu-nications/West African Sub-marine Cable (SAT3/WASC), the submarine optical fibre cable linking Africa with Europe and the rest of the world.

The RASCOM Project which has been endorsed by NEPAD as the only continental ICT project is billed to participate in the NEPAD e-School project, the Pan African e-Network and the e-Post Africa projects, among others.

The project which is implemeted by Frech company, Alcatel Alenia Space (formerly Alcatel Space), will deliver the communication satellite which has a 15-year life span and enable RascomStar-QAF to provide fixed voice, data telecommunications and Internet access as well as broadcasting satellite services to the whole African continent, with footprint extending to parts of Europe and of the Middle East.

Under an agreement with RASCOM, the Regional African Satellite Communi-cation Organization, had in 2000 formed and incorporated RascomStar-QAF as the project company for the pan-African satellite initiative representing the interests of 38 African telecommunications operators among other investors. Construction of he first satellite which started in 2003 is billed to be launched into orbit this year according to the company.

Nigeria had taken a US$200 loan from the China's EXIM Bank to part-finance the construction of her second satellite built by the China Aerospace Science and Technology Corporation at the cost of $311 million and launched into orbit from the Chinese soil in May, this year. Nigeria is also the first foreign government to buy Chinese satellite and its launch pad service to send its second satellite, the communications satellite codenamed Nigcomsat-1, into space.

However, indications emerged emerged weekend that Borrofice has launched a 'third term' bid as the Director-General of the nation's space agency, Nasdra. Also on a come-back bid is former Minister of Science and Technology, Professor Turner Isoun, with both men citing the continuity of projects they have initiated which they say is in its 'infancy' as a good reason to continue in office and midwife the implementation into maturity.

(SOURCE: This Day)

D50 MILLION NEEDED FOR GAMTEL AIRSPAN PROJECT

Mrs Neneh Macdouall-Gaye, Secretary of State for Communications and Information Technology has revealed to the National Assembly that Gamtel still needs D50 million for the completion of the roll-out of the airspan technology for 350 villages.

Responding to a question from Honourable Abdou FHS Jarjue, Member for Kombo Central on reasons for the delay in the provision of home telephones in areas Gamtel has already installed antennas, SoS Macdouall Gaye said that at the moment, airspan is the technology being deployed to provide telecommunication services for a much wider coverage in both rural and semi-urban areas. She added that work is pending in about 350 villages, 50% of which is the copper network that links the equipment and the subscriber, the other 50% would still need to be equipped.

According to her, due to the high cost of airspan development approximately of D80,000 per line, alternative technologies such as the CDMA is also being planned for Kaur and surrounding villages within a 25 km radius. She maintained that Gamtel still needs D50 Million for the complete rollout of the airspan technology in the villages and is therefore reviewing this project. "To this effect, approval will be sought from government to borrow funds from the local banks.

Nonetheless, all efforts are being made to make sure telephone accessibility is realised either through fixed wire or wireless technology in the shortest possible time," she explained. On the non-operation of the Gamcel antenna at Sickon in Foni Bintang for almost two years, SoS Gaye said that cell site is among ten sites whose operation have been delayed due to the unavailability of equipment. "It is part of an ongoing network extension project and the equipment ordered were diverted to meet the urgent requirements of the last AU Summit."

She said that works are in progress to erect Gamtel antennas in Sabach Sanjal District covering 12 villages. "What is remaining is the network distribution cabling to customer premises. The materials needed for these are cables and other network accessories.

There is a tender process going on with GPPA for the procurement of the additional cables. As soon as these are finalised, outstanding installations, including Sabach Sanjal areas would be completed. The transportation of poles to Chamen has started since 31st May and a project team has also been mobilised to the district to commence work with the available cables in stock. Hopefully, all the villages mentioned above will be connected before the end of the year", she concluded.

(SOURCE: The Daily Observer)

TELEPASSPORT TO LIST ON JSE'S DEVELOPMENT CAPITAL BOARD

A veteran player in a relatively new aspect of the telecoms industry is going public with a listing on the JSE's development capital board. TelePassport is the country's oldest provider of least-cost- routing services, which divert corporate calls off Telkom lines and use whichever cellular network is the cheapest. It also provides call-back services, where users dial an overseas number and are instantly called back, thus avoiding high out- going call fees. It will go to market through a reverse listing into Cenmag, an investment company involved in the manufacture of electro- magnets and the sale of electrical equipment.

TelePassport was formed in 1993 and has offices in six cities in SA and a branch in Namibia. Last year it turned over R280m and made after-tax profit of R12,5m. Its empowerment partner is Mojaho Trading, with 30%. CEO Anton Potgieter said last week the listing would enable the company to take advantage of consolidation in the industry by acquiring rival players.

Its financial director is James Herbst, a former financial director of another listed telecoms company, DataPro. Herbst resigned from DataPro in 2005, and now aims to build up a rival to it. "The space is big enough for a lot of players to compete, but naturally we will be competing for the same potential acquisitions and for the same corporate customers," Herbst said last week.

Several large companies were TelePresence's rivals, including Nashua Mobile and Autopage, and many smaller companies that could be bought out. TelePassport was already a national business with a strong direct sales force and an established channel of dealers. It aimed to become a leader in the R6-billion least-cost-routing market, Herbst said. It would be easier to compete after listing, as it could fund acquisitions in the voice and data markets to augment its growth.

The reverse listing will see Cenmag sell its business to Blaf Investments for R1,36m in cash. It will then increase its share capital from R20m to R300m and acquire TelePassport forR126m. Cenmag will pay for TelePassport by issuing 40-million shares to the vendors at 187c each, and by issuing 20,49-million vendor placement shares at 250c. It received assays from third parties to subscribe to another 29,5-million shares at 250c, raising R75m for acquisitions.

(SOURCE: Business Day)

IN BRIEF:

- Mauritius Telecom has announced a Rs 6.3 billion turnover and a  Rc 1.9 billion profit after tax  for 2006, an increase of 19% compared to the previous year. Sarat Lallah, CEO of the company, explains that this good performance is due to Mauritius Telecom moving into providing integrated telephone services. 

- The International Finance Corporation, IFC, the World Bank's private lending arm has endorsed the East African Submarine cable system (EASSy), as a feasible and viable development project that merits critical financial support. In an online interview, IFC's Senior Advisor on Global Information and Communication Technologies, Joseph Solan, said that IFC had accepted to co-fund EASSy cable project on the premise that the cable would operate on the "open access" model.

- MTN Rwanda will invest US$20million this year in its network in order to bring new services and products to the market.

- The Managing Director/CEO, Zenith Bank International Plc, Jim Ovia, has concluded a 100 per cent acquisition of one of the nation's private telecoms operator, Cellcom Communications Limited (Cellcom). Ovia's purchase of the company in a transaction estimated to exceed over N4 billion was routed through Cyberspace Nigeria Limited, an Internet service provider (ISP) also owned by the banker.

- Datatec has announced that its subsidiary, Westcon Africa Middle East (Westcon), has acquired a 51% interest in the Sparnoon-Dynatech Group, an established African ICT distributor.

ADVERTISEMENT

Reaching the Agents of Change

The Big Change is the e-mail newsletter of venture capital, deal-making, and business strategy in the convergent economy. Our team of experts provide regular insights into technology and business trends and strategies. For your convenience, The Big Change compiles a weekly digest of links to news, research, advice, case studies and dealflow trends from around the world. Subscribe at no cost by sending a blank e-mail to:

join-TheBigChange@elist.co.za

ISSUE NO 360 WEB AND MOBILE DATA NEWS

INDEX

UCT’S BUSINESS SCHOOL OFFERS FIRST COURSE ON SHARING BUSINESS INFO ONLINE

Many South Africans have only a vague notion of what wikis, blogs, internet-based social networks and cellphone applications are, but these technologies are changing the way people communicate.

A few South African business schools have joined their international counterparts in using them to present classes -- and even to give classes on how to use them in business. In doing so they are helping to shift people's thinking about doing business and marketing products.   "In the 21st century your biggest competitive advantage is about sharing information instead of keeping it to yourself," says Elaine Rumboll, director of executive education at the University of Cape Town's Graduate School of Business (GSB). The changes are so important that the GSB is offering SA's first crash course , starting on July 17, aimed at executives who want to "engage with the dynamic, global and accessible online market".

What is so powerful about these new technologies is that they have created platforms which enable anyone with internet access to network in an easy manner. These platforms have mostly been used for social interaction, but can be used in business, with great success.

"The use of social media has grown exponentially in the last year. This growth is almost unprecedented and there is suddenly a very real opportunity - which many executives are aware of, but don't know how to capitalise on it," says Dave Duarte, "chief marketing geek" of Cerebra, a consultancy that shows people how to use the new Web 2.0 technologies to their advantage. Duarte is also course director for the GSB's Nomadic Marketing course.

SA has a homegrown, startling example of just how powerful Web 2.0 marketing is.

Stormhoek, a South African winery co-owned by the UK's Orbital Wines and South African wine marketer Graham Knox, went from virtually unknown to annual sales of about 100,000 cases and now accounts for 17% of all South African wine sold in the UK in the over-GBP5 category.

British blogging consultant Hugh MacLeod launched the famous Stormhoek marketing campaign in 2005, offering 100 bottles of Stormhoek to regular bloggers on his website, who were asked to blog their comments and experiences with the wine, says Jon Foster-Pedley, senior lecturer at the GSB.

The wine took off in the UK and the U.S. There are now more than 225000 Google links to it and the www.stormhoek.com website has more than 350,000 hits a month, more than any other wine producer in the world, says www.wine.co.za.

"There's a sense of discovery and of 'Wow! There's something going on here'," says Foster-Pedley, who says that, while it is easy for Web 2.0 to generate hype, he does not foresee the same kind of deflation as that which ruined some fortunes when the dot.com bubble burst.

"It's really an exciting time in education and in industry because of the impact of digital media and the internet on collaboration," Harvard Business School's chief information officer, Stephen Laster, said in an interview with www.cio.com.

While the marketing uses of Web 2.0 tools are obvious, Foster-Pedley says he believes that the big conundrums of the day, such as global warming, will benefit from the kind of mass collaboration these tools enable.

"If you get enough people talking about something, you'll generally end up with a pretty good answer.... People are beginning to understand that massive collaboration could bring back our fish," he says.

On a smaller scale, Greg Fisher, senior lecturer at the University of Pretoria's Gordon Institute of Business Science (Gibs), is using a Web 2.0 application to help students get ready for his entrepreneurship course, which starts in a few weeks.

He's using a wiki - a website that allows visitors to add, remove and edit content - to present his students with the initial coursework, which they have to read ahead of the start. He has asked the students to put their business ideas on the wiki. These are to be developed over the duration of the course for the students to view.

"Usually you would print out the notes (for students to read ahead of the start of the course) and the students would have to come to Gibs to fetch them ... but the course evolves over time. The notes are a static document; on the wiki we can add to them when we like. Usually there is very little room for students to give feedback and contribute, they can on the wiki," he says.

The wiki's second advantage illustrates the mind-shift Web 2.0 technologies are bringing about. The students are beginning to load their initial ideas onto the wiki, where they are out in the open for all on the course to see, and Fisher wants students to encourage and criticise each other's ideas.

He says there was some initial hesitation from students. "I think over time that will improve. Some are still getting comfortable with the idea that others can see their original idea. They don't have to reveal any key intellectual property, it's more the global idea."

Fisher says e-mail will become "a thing of the past" for businesses, which will increasingly turn to wikis and blogs to communicate with their clients and staff.  "Business teams will then have a record of how the solution was reached, and businesses can build up a corporate memory. "I don't think things will change quickly, but we will look back in five years' time and everyone will be using a wiki."

(SOURCE: Business Day)

ZIMBABWEAN EXILES TURN TO THE WEB

Inflation in Zimbabwe is soaring, and its citizens abroad are pitching in to help relatives at home -- giving part of their earnings in South Africa, for example, to Zimbabwean businessmen there, who then truck food, cooking oil and other scarcities across the border.

Now a high-tech solution has arrived, with internet-based companies allowing Zimbabweans across the globe to go online to buy their loved ones everything from fuel and food to generators.

The website Mukuru.com offers an alternative to long queues at petrol stations short of fuel. Once a friend or relative has logged on and paid for fuel, the company sends an SMS to the recipient's cellphone in Zimbabwe containing a 10-digit number the person can exchange for vouchers at a designated coupon office.

They can then fill up their car at stations that import fuel independently and sell at market rates, rather than having to scramble for fuel when it becomes available locally at prices heavily subsidised by the government.

Two other sites, Zimbuyer.com and Zimland.com, offer a virtual shopping centre of Zimbabwean goods. Sitting in front of their computer abroad, people can pay for Zimbabwean staples such as sadza -- corn meal -- and a popular brand of baked beans, or even TVs and power generators, which are then delivered to addresses in the country's three largest cities within 72 hours. Buyers can log on to check the delivery status.

Mukuru.com founder Rob, who gave only his first name out of concern for his family in Zimbabwe -- where criticism of the government and its management of the economy can be dangerous -- came up with the idea when he worked for a multimedia firm. His site is run by eight Zimbabweans based in Britain, home to the second-largest diaspora community of Zimbabweans, after South Africa.

He said cellphone users in the West are fixated on the pictures they can put up on their cellphone screens or take with them, or features like using their cellphones as radios. But in the developing world, he said, "the power of the mobile phone is the SMS".

Africans in general have pioneered the use of cellphones to transfer value by using airtime as a virtual currency. Phone users can sell airtime for real money, or trade it for something else, thereby avoiding the relatively high costs of transferring small amounts of money through banks.

In Zimbabwe, the technology meets a stark need. Thea Fourie, a South Africa-based analyst for independent market-analysis firm Global Insight, said scarce goods and high unemployment in Zimbabwe, combined with salaries not keeping up with the rises in goods and services, mean any transfer of money to Zimbabweans from abroad can help.

Zimbabwean President Robert Mugabe is accused by critics in the West and at home of ruining what was once an African economic success story with a chaotic and often-violent campaign to seize thousands of white-owned commercial farms for redistribution to black Zimbabweans.

Mugabe defends the program as a way of righting severe imbalances in land ownership inherited from British colonial rule. He blames food shortages in a country that once was a regional breadbasket on years of crippling drought, and has cracked down on dissenters.

Fourie said that while some Zimbabweans can be helped by money from abroad, it will have only a "marginal" impact on overall economic performance in Zimbabwe, "because the whole problem is so structured around the political aspect".

A Zimbuyer.com spokesperson, who spoke on condition of anonymity for fear for the safety of his family in Zimbabwe, said that the site's most popular items are cooking oil, soap, rice, meat, and corn meal. "Also, people are buying the power generators a lot because there are 20-hour power cuts in Harare now," he said. The company is run by four Zimbabweans in Britain and the United States.

Douglas Siwira, a 41-year-old businessman living in Britain, uses Mukuru.com to buy fuel for his family in Zimbabwe. He praises the "promptness" of the transaction.

In 2005, the most recent year for which figures were available, Zimbabwe had 668 000 cellphone subscribers, a penetration rate of 5,6% -- double that for land lines -- according to the United Nations's International Telecommunication Union, which is responsible for standardisation, coordination and development of international telecommunications.

Mukuru.com started in February last year and now has 6,500 customers all over the world. It also allows those registered on the site to pay for satellite TV for and transfer money to people in Zimbabwe, and plans to offer mobile airtime top-ups by the end of the month.

Zimbabweans are allowed to have foreign-currency accounts in local banks, but the money can only be changed at the official exchange rate. So Zimbabweans living abroad also protect their earnings by keeping them in foreign banks and transferring money only as needed.

The companies may have started with the idea of helping their countrymen. Now they are looking at expanding to other parts of Africa where it is easier to operate. "I think the tragedy of the situation is we're least excited about Zimbabwe," said Rob. "We're out to spend time and money in Africa. We want to be putting billboards up; we want to be sponsoring attractions and music events there."

Mukuru.com has already started offering services to South Africa and now plans to branch out into Kenya and Zambia by July, Malawi by August and Ghana by the end of the year.

(SOURCE: Mail & Guardian)

ISSUE NO 360 CONVERGENCE NEWS

INDEX

Announcement
Balancing Act launched its new fortnightly e-letter, African Broadcast, Film and Convergence on 18 April. From now on, news from this section will appear in that e-letter on a fortnightly basis. If you would like to see the latest issue, go to http://www.afridigital.net or if you would like to have a free subscription, click on the following link: http://www.balancingact-africa.com/mailing_list/subscribe.php

ISSUE NO 359 PEOPLE, EVENTS, JOBS, CONTRACTS

INDEX

PEOPLE

Désiré Adadja has been appointed  Minister of ICT in Benin replacing Venance Gnigla.

Incumbent TelOne managing director Wellington Makamure is leaving after three years at the helm of Zimbabwe's sole fixed telecommunication services provider.

Bruce McGregor, has been appointed as the CEO of MB Technologies with immediate effect. Leo Baxter, founder and CEO, was seriously injured in a polo accident and has moved into the chairman role of the group.

AccessKenya Group, the holding company which owns AccessKenya, an ISP announced the appointment of Eddy Njoroge and Michael Turner as two new Non Executive Directors to supplement the existing five members of the Board.


EVENTS

- SATWIBB AFRICA: AFRICAN SATELLITE & WIRELESS BROADBAND CONFERENCE & VOIP FORUM    

EAST AFRICA: Safari Park Hotel, Nairobi, 11-13 July 2007
WEST AFRICA: Muson Centre, Lagos, 21-23 August 2007
Theme: ”Broadband bridges across Africa: First and last mile solutions”

Local and international industry leaders will make presentations on the following topics:
Efficient bandwidth delivery mechanisms
Next Generation Networks: Selecting the right migration path
Building wireless communities
Fiber optic vs. satellite-based connectivity: Do they compete or do they complete?
DVBS2: Its role in trunking
Rural Wireless: The role of WiMAX, WiFi, CDMA and hybrid technologies
VoIP survival strategies for telcos, ISPs and cyber cafes
Build vs. buy: VoIP solutions for Africa
Providing a VoIP service over a WiMAX network
Maximising international VoIP services

The event also includes a Masterclass on Building Wireless Communities by Paul Munnery, CEO, Wireless Digital Cities, UK

To request full details, email info@aitecafrica.com or log on to www.aitecafrica.com

- 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

- ICT AFRICA 2007

October 1-5, 2007, Kenyatta International Conference Centre, Nairobi, Kenya

ICT Africa is an annual continental information and communications technology conference addressing all aspects of ICT development in Africa. The conference is convened by NEPAD council in collaboration with the NEPAD Kenya secretariat. The 2007 event will be organized by Global Conferences, Cape Town, South Africa.

For further information contact rjacobs@globalconf.co.za

- INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT (IPAD) CENTRAL AFRICA

3rd - 5th October, Kinshasa, Democratic Republic of Congo

iPAD Central Africa 2006 provides an opportunity to network directly with key partners. The event aims to facilitate regional planning and collaborations under one roof between government, the public sector and business. iPAD Central Africa 2006 is a one-stop-shop for investigating investment opportunities in DRC and the Central African region as a whole.

For further information visit http://www.spintelligent-events.com/ipad-central2006/en/


JOBS AND OPPORTUNITIES

SERVICE LAYER INTEGRATOR – CONGO DRC

The company is urgently looking for a Service Layer integrator with knowledge of SUN, Oracle, HP Core and Service layer. For further information please contact advertising@balancingact-africa.com

ARABIC/ENGLISH SPEAKING SALES/MARKETING EXECUTIVE ROLES  -SUDAN

The company seeks English/Arabic speaking Sales/Marketing management staff to drive their marketing and sales efforts in this African fixed/wireless operator which is part of a major regional group. Roles include Indirect Sales Manager, Retail Sales Manager, Sales Operation Support Manager and Residential Marketing Manager.  For further information contact advertising@balancingact-africa.com


CONTRACTS: WHO'S SELLING WHAT TO WHOM?

KENYA WILDLIFE AND UUNET – KENYA

Kenya Wildlife Service (KWS) has signed a Sh65 million agreement with Internet access provider, UUNET, to provide a converged business communications solution for eight national parks. The company will provide infrastructure for the new look KWS Safari Card and e-ticketing. VoIP gateways will also be implemented in all the parks to enable free inter-branch calling and affordable international voice calls. The project is co-funded by United States Aid for International Development (USAID) under its five-year Sh175million ($2.5 million) funding to the organisation.

CELTEL, KDN AND ALCATEL-LUCENT -  KENYA

Celtel Kenya has selected Alcatel-Lucent to supply GSM/EDGE equipment as part of a network upgrade and expansion. The multi-million euro deal will see the vendor deploying EDGE technology to offer advanced mobile services. EDGE-based services will eventually be available to 80% of the population.

Meanwhile, Alcatel-Lucent has also been successful with another Kenyan telco, winning an order for triple-play equipment from Kenya Data Network (KDN). The three-year frame contract is worth EUR14 million (USD18.8 million) and calls for the deployment of Alcatel-Lucent’s triple-play service delivery architecture (TPSDA).

BOTSWANA TELECOMMUNICATIONS AND CERAGON – BOTSWANA

Ceragon Networks Ltd, a  provider of high-capacity wireless backhaul solutions, announced that Botswana Telecommunications Corporation (BTC), Botswana's national and international communications services provider, has selected Ceragon to provide a wireless solution enabling higher transmission capacity to their growing customer base. Ceragon's FibeAir 1500P will be deployed to upgrade existing PDH links enabling better quality, faster performance, improved service and multi-media offerings. The BTC deployment is valued at $1 million.

Advertisement:

African Internet Country Profiles: Part 2
ORDER NOW

To see the contents: http://www.balancingact-africa.com/profile2.html
To order: http://www.balancingact-africa.com/publications.html
You can now order by credit card direct from this web site.

INDEX

If our correspondent is "off the mark" or you have factual amendments, mail them to us and we will include them in subsequent News Updates. If you'd like to contribute, write and let us know.
If you need information about a particular place or issue, just send your questions in. We are always happy to follow up on readers concerns.

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 July 02 2007.

balancing act home page