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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 401 The battle for mindspace – Africa’s mobile operators get serious about brandingThis week has seen the launch of the rebranding of Mauritius Telecom’s products under the Orange brand. Branding is ad-men speak for that curious alchemy of emotional and rational responses that we all feel for the products and services we buy. If the coverage and price of Africa’s mobile operators is more or less the same, how do potential users tell the difference between them? The answer is branding that captures mindspace: another whizzy piece of jargon that identifies how many people remember your brand and maybe identify with it. Russell Southwood looks at how branding can define both what you do and how you’re seen. Africa is not a continent that is full of region-wide brands of any kind. There are some that are well known in sub-regions like East or West Africa but beyond the obvious small and short list of things like banks and airlines, the only ones that stand out are mobile companies. Otherwise everything is a mixture of the very international with imported aspirational white faces beaming down at you from the billboards or brands that only really available locally. The latter nearly always seem to lack polish and professionalism. Although mobile operators dominate the ad spending Top 20s in those countries where data is available and consider themselves good at marketing, the truth is that they appear extremely successful because of the very high level of demand in most markets that has not really yet been fully met. Outside of the main mobile brands, a number of companies still run a confusing mixture of names locally. The CEO of one leading (and highly profitable) mobile operator cheerfully confessed to me that he had no pricing strategy: he simply made it up as he went along. The next result in branding terms is not too difficult to see whichever country you are in. There are a bewildering array of tactical marketing offers for both post and pre-pay customers, all of which have different names and are separately branded. The other noticeable thing is that many of the mobile companies and ISPs sell technology rather than use-vale. Whether it’s broadband or GPRS or 3G, they want you to sign up for the latest upgrade largely on the basis that it will be faster and better. As so many services (particularly the Internet) are so poor, this has seemed like a logical way to approach the problem. But as cheaper, better bandwidth becomes available to all operators and the market is more crowded, there needs to be a shift towards explaining what the product or service can do for you. For the vast majority of customers are not techno-savvy and really have no desire to become so. What branding strives to create are brand values that are understood by the customer that influences how they feel about the product or service. For the customer, it’s the summary of all your experiences of dealing with a company and all the perceptions conveyed by others. Like the elephant, consumers do not forget. If you kept them waiting on the phone too long, they remember. If you failed to resolve a complaint satisfactorily, they remember. For the company doing the branding, it’s about understanding how you see yourself as a company and how customers see you and why. It includes all the intangible elements like the feelings you might have about a piece of equipment like a phone. For example, there are no group of technology owners quite so in love with their kit as Apple owners. Of course, it’s only partly rational but the same thing is true for people and their favourite handset. The first African mobile operators to get serious about branding were Celtel (yellow and red) and MTN (yellow and blue). Both poured a lot of resources into their operations becoming not just visible but instantly recognizable wherever you were on the continent. Even some single country operations began to get the message. Zantel’s CEO Noel Herrity entertained GSM Africa 06 with his description of how they came up with an almost luminescent bright green as the brand colour. This was not just vanity spending because more recognizable and understandable branding meant increased market share. In the case of Celtel, it was able to come from behind in some markets so the investment came out directly on the bottom line. Now part of the Zain group (what was Kuwait’s MTC) it is itself about to undergo a second rebranding as with new name Zain which in its Arab country roll-out uses various shades of purple. However, one of the most interesting successes of 2007 was the rebranding of bits of Etisalat’s Telecel holdings into the new brand Moov. In Cote d’Ivoire, it seized an impressive market share from a standing start, startling the more established players. The logo is now being rolled out slowly across its other operations. Finally, if Vodacom succumbs to the charms of Vodafone (and a large cheque), a large rebranding will address the confusing mixture of names and brands operated by the company that includes Vodacom, Vodafone and Safaricom. But arguably the company that started all this was Orange and its founder Hans Snook. Orange was bought by France Telecom and it is rolling out the brand across its African operations. This week saw the second phase of a two-part rebranding operation in Mauritius. Before the rebranding, Mauritius Telecom had no less than 43 individual brands within the company. The first stage of the rebranding was to re-establish a much clearer image for Mauritius Telecom itself. According to Johan Sels, Senior Executive Business Development, who is spearheading the process:”Mauritius Telecom had become a brand among many others. Whatever we did, Mauritius Telecom had lost its status as the ‘institution’ in telecoms in the country. We were spending lots of money of money to maintain 43 brands and had lost a sense of position.” Mauritius Telecom and its mobile subsidiary Cellplus (which is the dominant market player) were suffering badly in the comparison with the contender Emtel. It has bright red branding and plentiful physical presence on the basis of this across the island. Mauritius Telecom needed more dynamic colours to convey certain qualities to key markets. As Sels observed:”We needed to be perceived as much more dynamic, particularly by the corporate sector and young people.” The latest stage of the roll-out is to establish Orange as the brand name for products across the group so Cellplus has become Orange. The relationship between external appearances and what happens internally are important:”The company will be the same but the impression on the customer will be very different. But it’s easy to change the structure of the company if you keep a single brand.” The scale of the change-over even in a small country like Mauritius is enormous. All the stationery, envelopes and fax headers throughout the company have to be changed. The polo shirts that the 1,850 employees wear have to be redone along with the hundreds of maintenance vehicles some of them drive. There are 200 plus billboards across the country that need to be changed and all of the signage at its different buildings. Things like stickers that had been stuck up in all the main towns had to be found and laboriously ripped down. Sels was cagy about the level of investment but observed that:”It’s an investment for the next 10 years. We have a 60% market share in the mobile market but there are now three operators. Emtel is doing a damn good job. If we don’t change, we’ll stay at the same level. We have to change to respond to the dynamics of the market.” Interestingly in the pre-rebranding market research, 25% of its customers did not realise that Cellplus were part of Mauritius Telecom. Losing a much loved local brand is always painful and Orange has suffered criticisms for charging for its logo, particularly in Senegal. However, Sels is a stout defender of the logic of having (in this instance) a global brand:”Orange is international and has no historic links to the island. When asked what brands they related to, people named a range of international brands but only two local ones, Phoenix and Island Rum. People relate to international brands. Orange sponsors football that people on the island see on their TV. You couldn’t really do that with a local brand because you could not afford what it costs to pay the Premier League in sponsorship. That has a monetary value over time.”
France Telecom to Invest Sh7bn in KenyaFrance Telecom will inject an additional Sh7 billion into Telkom Kenya during the year, as it gears to roll out its mobile phone service under a new platform. Telkom Kenya offers a fixed wireless service using CDMA technology, but wants to switch to the GSM technology to match its rivals, Safaricom and Celtel, as it seeks to upstage the two in the cellular phone market. Speaking in Nairobi during a country tour, France Telcom chairman and chief executive, Didier Lombard, said the new funding underlines the French firm's commitment to Kenya as an investment destination. "We are investing in Kenya for the long-term because we believe it is one of the fast growing economies in the world," said Mr Lombard. It was his first visit to the country since his company paid Sh26.1 billion in December last year, together with a Dubai-based Alcazar Capital Limited, to secure a 51 per cent stake in Telkom Kenya. Its GSM cellular phone operation will operate under its Orange brand name. About 20 per cent of the Sh7 billion will go towards upgrading Telkom Kenya's international broadband capacity and fixed line network. Asked about the date of the launch, Mr Lombard said, "We will launch the service very soon." Econet Wireless is also slated to launch its mobile phone services by July, adding up to four, the number of companies operating in the rapidly growing sector. (Source: The Nation) Telecom Sector Reform Policy in Full Swing in LiberiaThe Ministry of Post and Telecommunications has urged stakeholders and the public to cooperate fully with the government and the Liberia Telecommunications Authority to adhere to reform within the telecom sector. According to a release Monday evening, the Ministry said "effective mechanism" is in place and takes immediate effect to "drive the regulatory decision and actions of the Liberia Telecommunications Authority (LTA). Within the reform policy measures up to date, "There shall be a cap on the number of national service provider/carriers in the telecom service sector to a fixed number of providers, namely: cellular/mobile, wireline, rural telephony, fixed wireless - WiMax, CDMA, etc." Accordingly, the Ministry indicated that bundled services within the Liberian telecom marketplace will be unbundled in recognition of the need to expand the number of players in the market. (Source: The NEWS) Southern Sudan is still using Uganda's Country CodeThe information and communication technology minister, Dr. Ham Muliira, has affirmed that South Sudan will soon stop using Uganda's 256 telephone code. The minister, who was last week appearing before the parliamentary ICT committee, explained that the use of the code 256 by Uganda's northern neighbour was temporary to facilitate communication between the two countries until the International Telecommunications Union allocates a code to South Sudan. The MPs had questioned the continued use of the code by the Government of South Sudan. Muliira added that the arrangement was agreed upon by the two governments. The minister, who was accompanied by senior ministry officials and others from Posta Uganda and the communications commission, was responding to queries by the MPs for consideration of the mid-term expenditure framework for the ICT sector for the financial years 2008/2009 and 2010/2011. Muliira pointed out that Celtel had expanded its services from Uganda to cover northern and southern Sudan. Muliira said the ministry was reviewing the telecom policy of 1996 and the draft broadcasting policy so as to harmonise the Electronic Media Act with the Communications Act. (Source: New Vision) Telecoms Flourish In Strife-Torn SomaliaTelecommunications is one of the rare business successes in strife-torn Somalia, with three major phone companies. The major companies are Hormuud, Nationlink and Telecom, which compete in the field of mobile and landline phones. Two new phone companies providing mobile telephony, Somfone and Awale, have recently been introduced and are providing the established companies with stiff competition by offering lower charges for international calls. "We charge only 50 US cents for international calls per minute and local calls are free for a monthly fee of just $10 only" Yasin Sharif Hassan, a manager for Hormuud told APA. In Somalia it takes only a couple of days for a landline company and only hours for a mobile service to be launched, whereas it takes several months if not years in neighbouring countries. It is easier to set up a telecommunications business in Somali because there is no need to get a license and there is no state-run monopoly which hinders new competitors from entering the market. Additionally, there are no taxes and hence the low charges. "Telecoms and post services were a monopoly managed by the government before the civil war, but after the regime was toppled, everybody who has money can take part in such businesses," Lutfi Sheriff Mohammed, an economist, told APA. "There is massive demand for telecoms services because of the large numbers of Somalis in the diaspora who still have families and relatives living in Somalia,” he added. (Source: APA)
In brief:- Kuwaiti investment firm Noor Financial Company has confirmed it will bid for Egypt's second fixed line licence. The auction is due to be held on 19 June; six other companies have already expressed interest, including France Telecom, Orascom Telecom, Egypt's Alkan, Giza Systems, Abu Dhabi-based Etisalat and Saudi Arabia's Atheeb group. - Workers at Nigerian Telecommunications (NITEL) have gone on strike and cut off one of the country's primary international telecommunications gateways. The work stoppage is affecting international telephone and data traffic. The employees have blockaded the SAT-3 facility which is Nigeria's international telephony gateway in a dispute over wage arrears. - Incumbent telco Botswana Telecoms Corporation (BTC) will be launching mobile services this month, according to its PR head James Molosankwe. ‘The launch is certainly going to be this month, even though I will not disclose the date but…it will take place,’ he explained. - Global telecoms network supplier Ericsson has received a Sh9.3 billion GSM network order from Econet Wireless Kenya signalling that the long awaited coming into the market of a third mobile phone operator is about to materialise. - Tata Communications, formerly VSNL, has announced the expansion of its Global VPN service to Egypt through a partnership agreement with Telecom Egypt’s TE Data arm. - In Uganda, residents of Kyambogo, Upper Kololo and Mbuya have complained over the increased number of telecommunication masts put up by Warid Telecom in residential areas. - Moshi’s local authorities in Tanzania are looking at charging fines of up to Tsh. 50 million against the 3 mobile operators Vodacom, Celtel and Tigo in attempt to stop them splashing its town’s buildings with their ads. Citing a number of affected buildings, the authorities pointed out that, Vodacom has been 'generously' splashing town structures with deep-blue paint right from their foundations to the roofs while its competitor Celtel has chosen warm red for the mission while Tigo has been applying both Red and Blue and sometimes throwing in a splash of yellow for maximum effect. - The date set for the identification of anonymous SIM cards holders in Algeria would be deferred "if necessary," asserted Post and Information and Communication Technologies Minister Boudjemaâ Haïchour. The main thing is to identify all the anonymous SIM cards," indicated Haïchour." - Nigeria’s federal government has pledged to assist the telecommunication service providers by providing them with subsidies and other incentives to enable them expand their services across the country. Minister of State for Information and Communication, Alhaji Ibrahim Nakande made the pledge in Abuja, while speaking at the quality of service forum organised by the Nigerian Communications Commission (NCC). Telecoms, Rates, Offers and Coverage- Zain (formerly MTC Group) has launched a free international roaming service across its GSM mobile networks in Bahrain, Jordan, Iraq and Sudan. Under Zain’s ‘One Network’ service, pre- and post-paid customers can make calls and send SMS at local rates in all four countries, and receive incoming calls free of charge. - Kenya’s President Kibaki hinted that the Government is reviewing tax on airtime with the aim of reducing it from the current 26 per cent. The assurance could mean that the Finance minister may effect the proposals in this year's Budget. - Telecom Namibia has announced that its CDMA 1x data service (or 1xRTT) now has the ability to data roam nationwide. According to Paulus Iipinge, Telecom Namibia’s Senior Manager: Internet Services, anyone in possession of a CDMA2000 1x data modem or phone from Telecom Namibia can now connect to the Internet in any town in Namibia, if there is CDMA SWITCH coverage. - Celtel has deepened its presence in Hoima District with a new concept to improve the communications needs of Tullow Oil, the company exploring oil in western Uganda. Celtel has a commissioned a mobile base station, the first of its kind in Uganda, at Butiaba along Lake Albert. The base station, hoisted on a truck will be moving to provide coverage to the new drilling areas. - Telecom Namibia has announced that its CDMA 1x data service (or 1xRTT) now has the ability to data roam nationwide. According to Paulus Iipinge, Telecom Namibia’s Senior Manager: Internet Services, anyone in possession of a CDMA2000 1x data modem or phone from Telecom Namibia can now connect to the Internet in any town in Namibia, if there is CDMA SWITCH coverage. - Celtel Burkina Faso is celebrating its 1 million users. The mobile operator started operations back in 2001 and competes with Telmob, the national incumbent mobile’s arm and Telecel.
Sierra Leone’s ISPs complain about Telecom Regulator BiasSierra Leone's telecommunications regulator, the National Telecommunications Commission (NATCOM) has denied allegation of creating an uneven playing field for ISPs in the country. Some ISPs had earlier accused NATCOM of allowing telecom operators like Celtel and Comium to operate on licensed frequency bandwidth for their deployment to offer internet services though they are paying the same service fee as ISPs which are operating on the International Scientific Monitoring (ISM) band- a non-licensed frequency. Their claim was that as a result of this oversight, telecom operators subsidize their Internet charges for their users. Countering this claim, the Executive Secretary of NATCOM, Bash M. Kamara stated that NATCOM was created to provide a level playing field for all operators be it ISP or GSM service provider and would not encourage any form of unfairness. Kamara told IDG News Service that he would agree with the ISPs if their argument is centered on why GSM operators are offering internet services. "Though we may not want them to do it but can we stop them? GSM operators are just offering this internet as an added service that would entice their users who need the internet. These ISPs are just scared. But I don't think they should be because when you are a specialist, you should not be scared of a generalist. I think if they are really specialized in internet services, they should be able to outplay these GSM operators. And some of them have proved that." Explaining further, he said these operators are not paying the same fees and cited that GSM operators are paying an amount with a wider margin to that of ISPs. He said ISPs were begging when NATCOM told them to be paying for their VSATs. He insisted that the ISPs are panicking because some of them are using some technologies such as Voice over Internet Protocol (VoIP) illegally which "are not going to be allowed henceforth." Kamara said technology is not static and new developments are coming in almost every six months so ISPs should not think their services can be dynamic. He reiterated that NATCOM which came into being in 2006 is poised to ensure that service providers comply with what government wants and encourage a good working relationship with each other. (Source: Concord Times) ISPA expects competition ruling soon in South AfricaThe Competition Commission is about to finalise its investigation into the Internet Service Providers Association's (ISPA's) complaint that Telkom is engaging in anti-competitive behaviour. ISPA expects a ruling in June. ISPA lodged the complaint against Telkom in 2005, stating that Telkom's wholesale and retail pricing structure was squeezing the margins of Internet service providers (ISPs). The association also asked the commission to evaluate the way the South African Internet market is structured, and make sure that ISPs are able to compete fairly to provide reasonably priced services to their customers. The Competition Commission requested four extensions during its investigation, as Telkom did not provide the authority with the information it required, says ISPA GM Ant Brooks. However, things are now speeding up and ISPA expects a ruling soon. "I would be surprised if the Competition Commission doesn't wrap it up mid-June," he says. Brooks notes that the relationship between ISPA and Telkom Wholesale has improved since the association lodged its application with the Competition Commission. ISPA gets honest answers from the division on its operational queries, he says. “We also want to think that ISPA gives Telkom Wholesale good feedback on what ISPs want,” he says. (Source: ITWeb) Gauteng’s R 35-Billion municipal network digital dreamGauteng’s provincial government plans to build a province-wide telecommunications network at a cost of up to R35bn. Officials want the project, which requires the approval of the national cabinet, to be completed by 2010. But the undertaking, known as Gauteng Link, is already coming under fire from the private sector, with one telecom industry executive labelling it a “waste of money”. The intention is to build a high-capacity network to bridge the “digital divide”, reduce communication costs, especially for broadband access, and give citizens access to an array of online government services. Gauteng’s head of e-government, Warren Hero, says rudimentary estimates show the cost of the project could be anything from R15bn to R35bn. Telecom industry executives are not prepared to comment officially, because of political sensitivities. But the head of a large Internet service provider has labelled the plan “a recipe for disaster” that will undermine planned investments by the private sector. However, Hero says economic value comes from services provided on top of the infrastructure, not in the provision of the network itself. “Once you connect communities, you are laying the basis for commerce to take place,” he says. Besides, the Gauteng government is willing to work with the private sector to build infrastructure. But where private operators won’t build, government will. The project involves big investments by the provincial government and municipalities but will also rely on the support of the private sector. The province hopes companies will get involved in extending the network into homes and businesses. The scale of the project is enormous: Gauteng wants to spend more on this project than Telkom rival Neotel will spend in the next decade on its national network deployment. However, sources in the private sector question whether the project will get off the ground. They say national treasury is likely to block funding in the same way it has questioned planned telecom investments by state-owned companies Sentech and Broadband InfraCo. Gauteng finance MEC Paul Mashatile is championing the project, for which the business plan will be sent to the cabinet in the next few months. The document will not be released publicly before then. Lemmy Chappie, chief information officer at the Gauteng Shared Service Centre, says Gauteng Link will be run as a public-private partnership. “When we get to implementation we will see how we draw it out,” he says. “We intend having the network up and running by 2010 having used all the [telecom] assets that government owns.” He says the province and larger municipalities already have extensive infrastructure. Gauteng’s three biggest municipalities — Johannesburg, Ekurhuleni and Tshwane — have thousands of kilometres of fibre-optic cable in the ground. Johannesburg also has a well-developed wireless network which can be used for “backhaul” — the transport of telecom traffic between different parts of the network, typically from points of access to more centralised locations. In outlying areas, however, infrastructure is barely developed. Chappie says Gauteng plans to bridge gaps in existing infrastructure and extend the network to lesser-served parts of the province. He says commercial telecom operators such as Telkom have shown unwillingness to provide services in economically depressed areas such as Vereeniging, Sebokeng and parts of the West Rand. “Can we ask Telkom to help us? No, because it won’t. Are we going to sit back and wait for Telkom? No, we’re not.” Without adequate telecom infrastructure, Chappie says poorer parts of the province will remain under developed. The funding plan is sketchy, but government may raise debt to build the network. Chappie promises the project won’t become an expensive white elephant despite industry scepticism. “We won’t go with models that have failed,” he says. “We will work with funders and ensure we bring down the cost of broadband in Gauteng while at the same time repaying [the funders].” Access to the network will be subsidised for consumers but it won’t be free. A special investment vehicle, the Gauteng Fund, will be used to finance the network. The provincial government has already contributed R500m. Most of this will be used for the deployment of the network. The fund is expected to grow rapidly if the cabinet approves the Gauteng Link project. Chappie says government’s focus is on building a robust network: providing access to consumers will be left mainly to the private sector. “The distribution network will be operated by different companies that will provide last-mile services to citizens, creating jobs and ensuring the economy grows.” But, Chappie cautions: “It’s too early to go into detail and I don’t want to raise too many expectations in the private sector.” (Source: Financial Mail) In brief:- Allegations that Telkom South Africa abused its dominance to stifle competition in the internet market will be revived in the high court next week, in proceedings that may pave the way for the operator to be fined R3.7bn for anti-competitive behaviour. - Kenyan taxpayers will be able to fill in their tax returns online by June 2009. The new technology, referred to as the Integrated Tax Management System (ITMS), is being undertaken by experts from Chile, contracted by the Kenyan government under a government to government arrangement. It kicked off last November and is expected to be up and running by June next year. - AccessKenya Group, one of Kenya’s leading Corporate Internet Service Provider, has launched a new and dynamic website that provides shareholders and other potential investors with real time information on the company’s share price, joining the list of few Kenyan websites offering this up to the minute service. - South Africa’s airline Comair has diversified into the mobile Internet industry through a joint venture with the listed telecommunications company Altech. kulula.com, the budget airline brand which is a subsidiary of Comair, launched kulula.connect, a mobile Internet service that promises an affordable Internet connection using 3G technology.
The case for locally manufactured PCs according to MatomoWhen HP partnered with Matomo Technologies in 2003, to manufacture an affordable and reliable desktop computer for small- and medium-sized business (SMB) customers, little did the market know that five years on, HP would become one of South Africa's largest manufacturers of locally assembled PCs. Jason McMillan, HP business unit manager at Tarsus Technologies says that HP's success with local assembly so far is due to them entering this space at the right time. "It's no secret that SMBs are attracted to IT solutions that are known for their quality, yet at the same time, don't necessarily break the bank," says McMillan. "While the more illustrious international brands in the desktop computer market were traditionally able to offer the kind of quality that buyers were looking for, their solutions, however, were slightly more costly to roll out," McMillan continues. McMillan says that when HP approached Matomo, it was looking for a solution, which offered the best of both worlds. Today, HP's local assembly facility is about far more than superior products at a competitive price - it's about driving transformation in South Africa. "There are two types of computer buyers in South Africa," McMillan explains. "You have those companies that support South African products and then you have those who prefer to buy internationally manufactured items. "The international proponents argue that their machines are better due to the fact that their manufacturing quality is superior to that of a local operation. On the other hand, the local supporters argue that South African manufacturers invest in the country where multi-nationals simply channel funds back to their overseas head offices. "By assembling in South Africa, HP has managed to create a scenario where companies seeking the quality of an international brand name can make a positive contribution to their country. On the flipside, companies that are simply looking to support a local assembler gain access to the quality of an HP branded computer - it's a win-win situation," he says. Furthermore, by supporting HP's local assembly operation, Tarsus is able to differentiate itself by offering the same level of service on locally assembled machines as it would offer on an internationally branded computing fleet. "Another benefit for Tarsus is the fact that locally assembled HP machines allow for a greater degree of customisation than their imported counterparts," McMillan adds. "When a company (or individual) has very specific requirements in terms of their HP system, Tarsus can assign a specific part number to that customer. As a result, Tarsus can simultaneously meet the demands of a single user or even 10 000 users. "Through HP's local assembly programme, we are capable of meeting a wider range of customer needs while offering cost-efficiency and reliability - and with the success this venture has achieved so far, there's no reason why HP shouldn't continue to dominate in the coming years," he concludes Kenyan Government to Recruit Trainees for Rural E-CentresThe Kenyan Government will give priority to the disadvantaged in free entrepreneurship training for ICT-related businesses. Speaking during a media briefing, Victor Kyalo, the deputy executive officer of Kenya ICT Board, said the trained entrepreneurs will operate electronic centres which the governments intends to open in the rural areas. The government aims at recruiting about 1,500 trainees but has received more than 4,000 applications so far. About half of them have either a second or first degree yet the minimum qualification is a diploma. Fifty districts have been chosen for the implementation of the project with each district getting 30 trainees. Prospective entrepreneurs who get certified will be eligible for a development loan from the Sh244 million revolving fund set up for the initiative. E-centres are expected to provide essential services to the public in rural areas via computers connected to the Internet, digital cameras, printers, fax machines and other communication infrastructure. The Government intends to spend a total of Sh610 million on the project. Sh366 million will be used in the training, technical support and on a bandwidth subsidy, leaving the rest for the revolving fund. Kyalo said entrepreneurs will be required to raise 10 per cent of the start up costs, while the government will finance the rest through a third party on behalf of the ICT Board. The funds will be repayable over a three-year period with the proceeds earmarked to finance set up costs and the required infrastructure (computers, printers and software) . The training will be offered at the district level to enable easy access for those in rural areas and will be done in modules for three weeks. The induction will include topics on book keeping, starting and successfully managing small businesses, why some business fail, legal aspects of business creation and viable self-employment-the key pillars of entrepreneurship courses. (Source: Business Daily) Task Force Recommends Separate Ministry for ICT in NigeriaThe Presidential task force for the restructuring of government institutions and organisations has recommended the creation of Ministries of Communications and Information Technology (MCIT) and a Ministry of Information. The task force has also recommended for the merger of the Nigerian Communications Commission (NCC) and National Broadcasting Commission (NBC) for effective regulation of the telecommunication and broadcast industries. Speaking at the formal handing of the task force's report to the Secretary to the Government of the Federation, Ambassador Babagana Kingibe, the Minister of Information and Communication, John Odey disclosed that three tiers of industry management have also been recommended for information technology, telecommunications and broadcasting sub-sector. The minister stated that the new MCIT should oversee regulatory and developmental activities in the Information and Communications Technology (ICT) industry while the ministry of information will be responsible for management and dissemination of information for government. According to the minister, the committee has equally recommended that ICT policy should be reviewed to assign appropriate responsibilities. The highlight of the report stated that the new MCIT should be responsible for policy formulation covering information technology, broadcasting and telecommunication, supervision of policy implementation and preparing policy review. The report further stated that NCC should be merged with NBC and the new body should be known as NCC and would be charged with the responsibility of regulating the industry as well as providing the secretariat for the Universal Service Provision Fund (USPF). It recommended that NITDA should be renamed National Information and Communication Technology Development Agency and should be rested with the new MCIT ministry. (Source: Leadership) In brief:- The Egyptian IT sector is poised to become the next regional IT destination, with expectations to increase its value from USD 889 million in 2006 by over 75 per cent to reach USD 1.3 billion by 2011, according to latest studies. - In Uganda, Barclays Bank has concluded the first phase of installation of the new 7m pounds (sh23.5b) Flexcube banking technology at its branches. "The initial two weeks were uncomfortable for customers and staff. We had service interruptions, but this phase is now behind us. The service has stabilised and resumed to acceptable levels," Byarugaba said in an interview. - South African minister of Science and Technology, Mosibudi Mangena has signed a general cooperation accord in the sector with Angola’s counterpart, João Baptista Gandagina, in a ceremony being held at Talatona Conventions Centre, in Luanda. - The adoption of an international standard "ISO IEC 29500: Office Open XML file format" for the local information technology sector will have to wait a bit longer as the Standards Association of Zimbabwe opted to abstain in a recent electronic ballot.
South Africa’s Cell C Makes first Operating ProfitCellular operator Cell C has turned an operating profit for the first year in its seven-year history, reversing a loss of R349m to post a profit of R321m. The main fillip to its figures came from a 44% rise in the number of customers to give it 4,8-million, after it launched two cut-price packages to woo more young and talkative customers. These had been an unprecedented success and a major factor in its turn-around, said CEO Jeffrey Hedberg. But Cell C still has a way to go before it retains a net profit, with new chief financial officer Fabrizio Mambrini refusing to say when it would finally cross that hurdle. The timing would depend on how much cash it pumped into expanding its network, he said. In the coming two years, capital expenditure would hit R2.4bn, up from R1.2bn spent in the past two years. Cell C's revenue of R7,5bn for the year to December was up 17% from R6,4bn, while earnings before interest, tax, depreciation and amortisation topped R1bn, surging 236% from just R310m. The two cut-price deals saw its traffic soar from 400-million minutes a month to 700-million minutes, forcing it to expand its coverage and quality to meet demand. It now carries 87% of its own traffic, but still roams on Vodacom's network in areas where it is not financially viable to set up its own. Hedberg said 2007 was a "defining year" when Cell C stopped trying to emulate its dominant rivals MTN and Vodacom by being all things to everybody. Its new strategy had been to create simple, affordable packages so more previously untapped consumers signed up and existing customers could afford to make more calls. Mambrini said attracting young customers with less money to spend initially gave it a lower average revenue per user, but it was an investment for the future if it could retain their loyalty as they grew older and wealthier. Cell C is 60% owned by Saudi Oger, 25% by empowerment investors CellSaf and 15% by Lanun Securities, another Saudi firm. One potential move that could drastically change its future is if its sister company Oger Telecom bids for a controlling interest in Telkom. Telkom and Cell C would then work closely together to offer combined fixed and mobile services. A tie-up with Telkom would give Cell C scale in distribution, advertising and on its balance sheet, Hedberg said. "I know it could make a good deal of sense and Saudi Oger is very keen on interacting with the stakeholders to see if it can drive a win-win deal." Telkom said this month that Oger had not returned with a firm offer after its initial overture was rebuffed. (Source: Business Day) Telecom Namibia Eyes Billion Dollar GrowthTelecom Namibia (TN) has an ambitious plan to achieve N$1.35 billion in revenue by 2010. According to the latest report of the Telecom Industry Association (TIA), the worldwide revenue growth in the global telecom industry is expected to hit $3 trillion (N$22.5 trillion) in sales by 2010. It is expected to surpass $2.5 trillion (N$18.8 trillion) in 2008, the report adds. Telecom Managing Director Frans Ndoroma said the company should show a fair return despite all challenges. To achieve the N$1.35 billion target, Telecom Namibia needs to cut its operating costs (to preserve margins), reduce churn to minimise loss of revenue, seek opportunities to increase APRU (average revenue per user) for existing customers, acquire new customers and identify new revenue opportunities from the traditional streams, he said. At the same time, the company wants to emerge as a fundamentally strong ICT service provider through its extensive investment in next generation network (NGN) infrastructure. Speaking in Windhoek last Friday at the Telecom Namibia Budget Kick Off meeting, Ndoroma said the country's telecommunications giant, which is looking forward to a speedy all-round growth with special thrust on NGN products and services, has targets to phase out most of its legacy systems and to grow revenue by 27.4 percent within the next three years from the N$1.06 billion recorded in the 2006-2007 financial year. "We have embraced the target of N$1.35 billion for 2010," Ndoroma said. Currently, fixed voice remains Telecom Namibia's cash cow, but the company is innovating and changing to accommodate evolving technologies and the shifting competitive landscape. Ndoroma said to achieve the revenue target, the main thrust is increased spending on public network equipment and higher spending on new services and products in support of enterprise and public network equipment. Priority is being given to broadband technologies such as ADSL, WiMAX, CDMA and Metro Ethernet as well as the rollout of the state-of-the-art IP/MPLS transport network. The deployment of the latter has reached an advanced stage this month with the countrywide migration of ADSL and Infinitum services onto this network. It is predicted that a continued growth in broadband and wireless services will fuel an increase in wireless subscribership and increased average revenue per user from content (entertainment) and other non-voice wireless applications within the next three years. According to Ndoroma, the company is determined to build itself organically as a fundamentally strong and growth-oriented ICT service provider as per its strategic roadmap towards 2010. "The six months to date for the 2007-2008 financial year clearly indicate the potential and extent to which we can bring our multitude of products and services to our customers (present and future) and thereby meaningfully increasing out turnover," he said. He said this would not only go a long way in helping the company to start to gradually rebuild its cash reserves beyond 2010, but also encourage better performance in the coming days with higher motivation. He revealed that Telecom Namibia has seen heavy investments amounting to N$489 million for the year ending September 30 last year. Ndoroma said Telecom Namibia has invested N$346 million in re-engineering the country's network in 2007 to be at the forefront of technological advances. However, the company expects this investment cycle to plateau in 2009 and decrease after 2010. "Now the sowing has been done, the implements have been bought, the network has been cropped up, it's time to harvest and feed the market," he said, adding, "Just like any other expense item, we need to show a meaningful return on the investment." Telecom Namibia has equity in two foreign ventures, namely Mundo Startel in Angola and CommuniTel, which forms part of Neotel, South Africa's second network operator. Ndoroma said the abundant cash reserves of his company have been used to enhance the network grow the market potential and spread Telecom Namibia's wings within the SADC region. "Both ventures indicate heavy investment and operating costs with little revenue to show ... [but] we understand the rationale of all these investments," he said. The investment in South Africa amounts toN$48 million and N$95 million in Angola. Neotel, although still rolling out heavily in infrastructure, is showing strong revenue growth. In Angola, despite challenges that at times seem insurmountable, Mundo Startel is expected to launch its services in the third quarter of this year. (Source: New Era) Tanzania Snub Fails to Dent Safaricom’s IPOStockbrokers have expressed confidence that the non-participation of Tanzanians in the ongoing Safaricom IPO is unlikely to significantly affect the issue's subscription level. The brokers say that though the Tanzanians' move is regrettable, they were not expected to form a significant proportion of the total applicants and therefore their non-participation is not likely to upset the IPO process. The Government is selling 25 per cent of its shares in mobile phone company Safaricom through an initial public offering expected to raise at least Sh50 billion for Treasury. Last week, the Bank of Tanzania (BoT) Governor Benno Ndulu said that the existing market regulations did not provide for Tanzanians' participation owing to existing capital market and foreign exchange restrictions. The Nairobi Stock Exchange (NSE) vice chairman, James Wangunyu, says that they were aware of the existing capital market and foreign exchange restrictions, but were hoping that BoT would temporarily lift these to facilitate Tanzanians' participation. Afrika Investment Bank CEO, Mr Peterson Mwangi, says the robust participation by Ugandan and Rwandese investors was likely to compensate for the Tanzanians' absence. Prof Ndulu wrote to the Dar-es- Salaam Stock Exchange (DSE) stating that he would not be granting the special waiver on existing forex restrictions to facilitate the Safaricom IPO. The Governor said that Safaricom had not made any commitment to cross list at the DSE, which denies Tanzania an opportunity for development of its national bourse. "On this account, the BoT was unable to grant the sought approval but would like to work with all stakeholders in revising the policy framework governing such transactions," he added. The lead Safaricom IPO transaction advisor, Dyer and Blair chairman Jimnah Mbaru, has since written to the BoT governor asking him to reconsider his decision. Apart from the restriction on Tanzanians investing in the IPO, it is emerging that the outcome of applications by international investors through the book building process will take longer to be determined. Under the schedule contained in the prospectus 3.5 billion of the 10 billion on offer were to be bid for directly through brokers and order filed with the sole book runner Morgan Stanley. (Source: Business Daily) Morocco's Wana financial future is uncertainShares in Moroccan conglomerate ONA were suspended from trading in Casablanca on Monday after its board fired Chairman Saad Bendidi due to ballooning costs at start-up telecoms venture Wana. Former civil servant Mouattasim Belghazi takes over from Bendidi at the top of the company, a flagship of Moroccan business that is controlled indirectly by the royal family and has interests in mining, banking, retail, insurance and food. ONA cited serious management failings in its decision to fire Bendidi, who last month announced that Wana would beat a sales forecast for next year but would need additional investment as it rolls out third-generation mobile services. "We knew they'd need extra money but not this much," said a senior analyst in Casablanca who asked not to be named. "If they don't do the additional investment in Wana, payback should still be next year. If they do, it could be as late as 2011." Under Bendidi's tenure, ONA exited or took control of businesses in which it only had a minority interest. Last August he bought out Auchan from ONA's fast-growing supermarket venture after a management disagreement with the French company. ONA stock has risen 19% this year as Bendidi confirmed a target laid out in 2007 for net profit to double to over 2 billion Moroccan dirhams ($275.5 million) by 2009. The shares closed at 1900 dirhams last Friday. Earnings last year were boosted by the sale of a stake in an insurance venture with Axa and strong banking results. Profits have also been growing in retailing and at sugar refining subsidiary Cosumar. Belghazi, who worked in various government departments and has a French economics doctorate, was previously head of ONA's affiliate Morocco-Emirates Development Company (Somed), which shares investments in Morocco with the Abu Dhabi Fund for Development. ONA's board asked Belghazi to devise within three months a new business plan for Wana and a broader programme to overhaul the conglomerate. ONA has poured money into Wana, which enters a highly competitive market domimated by incumbent Maroc Telecom controlled by France's Vivendi and Spanish-Portuguese owned operator Meditel. "Right now is not the time to sell ONA shares," said the analyst. "This company is still looking good and its prospects are still the same. For now there is no big change in strategy." (Source: Reuters) In brief:- A maximum fine of R100,000, some form of private censure and a slap on the wrist were what three directors of Blue Label Telecoms received from the JSE late yesterday after four cases of share dealings not being cleared by the company nor reported to the JSE timelessly. - Actielec Technologies group bolstered its presence in Tunisia with the creation of a new production unit. The firm acquired a 20,000-square-metre site on which a new production unit will be built, the first part of which will create about fifty jobs, and will be set up on 5,000 square metres; It is to enter into operation by late 2009.
MXit goes big in South AfricaMobile instant messaging (IM) service MXit, which is 30% owned by media company Naspers, is not taking its homegrown success lightly and is working hard to remain South Africa's largest mobile social network. At the Ogilvy Verge Digital Africa Conference, Paul Stemmet, MXit's general manager, told Moneyweb that as of last Thursday MXit had 7,5m users, of which 6,5m are in South Africa. This is 43m off its target of reaching 50m registered users by the end of the year, but having found what makes the youth tick it will probably get there. On average users logon seven times a day and spend an hour on the service. Most (60%) users are 18-25 years old and its most active users are under the age of 18, says Stemmet. The IM's success, reckons Stemmet, is built on it not just being a technology but a lifestyle, which MXit is taking advantage of. It has created a virtual economy in which virtual flowers are bought and sold with virtual money and is working with a drinks manufacturer to add its drink to this economy. Stemmet says the network now sells more flowers than NetFlorist and believes that when the drink is launched it could outstrip what it sells physically in South Africa. When MXit launched in 2005 it did not see the point of advertisers but has since created a platform with the capability of serving 12m ads a day, this is being put to good use. Every time a user logs in they get a five second splash ad displayed on their phone. The ad is targeted and aims to be interactive like the Endless Summer campaign for Engen, which MXiT used in the December break to incentivise kids to convince their parents to fill up at Engen stations. Something few advertisers have embraced, say Patou Nuytemans, EAME digital director of OgilvyOne Worldwide and Sello Leshope, strategic planning director, Ogilvy Cape Town. MXit also ensures that only ads that meet its criteria are flighted and up until a few weeks ago this did not include alcohol, says Stemmet. It is such innovation and the human connection that has seen the company generating R3m a month in advertising revenue and it is not stopping there. The service has got the cost of its SMSs below 2c and if you use service providers Cell C and Virgin Mobile they are free, says Stemmet. In November it launched MXit music, on which unsigned local artists can upload their music for other users to download for free. The IM is also in talks to sign up Just Jinger and plans to launch a clothing range, says Stemmet. (Source: Moneyweb) New mobile communication platform launched in UgandaA communication platform that uses SMS and voice broadcast to channel information to mobile phones has been launched by Solutions for Business, writes Vision Reporter. Dubbed Be Mobile, the innovative solution is a partnership between Solutions for Business, Beyonic and UK-based company, Super3. Robert Katuntu, the managing director of Be Mobile, said services to be provided include voice broadcasts and interactive voice responses, call centre solutions and bulk SMS. “We have a constant need to send and receive information,” he told a press briefing. Katuntu said the company had concluded agreements with MTN and uganda telecom and the cost of the service would range from as low as sh80 to sh10,000. (Source: New Vision)
People* Michael Foley is leaving Celtel Nigeria to head up the mobile operator’s activities in Tanzania. * Hits Africa, a subsidiary of KSA-based telecom operator Hits Telecom, has hired key senior managers to support the expansion of its operations in Africa. Macchindra Deokar, a former senior executive with South Africa’s Cell-C, who joined the company as group deputy CEO. Ross Clewley, a seasoned chief financial officer with Tanzanian telecom operators, as CFO. Fouad Dandan, meanwhile, joined Hits as group chief technical officer, and Amr Jaroudi joined as group chief commercial officer. * Ghana Telecom (GT) has announced the appointment of John Benjamin Annoh-Quarshie as the Head of GT Onetouch replacing Philip Sowah who has gone to Celtel’s new Ghana operation. * The Women of Uganda Network's (WOUGNET) Dorothy Okello was announced by the United Nations as one of the new members to the Global Alliance for Information and Communications Technology and Development (GAID). Events* MED-IT@ALGER 2008 22- 23 April 2008, Algier, Algeria The fifth edition of this B2B exhibition will provide plenty of opportunities to develop contacts and relationship with local companies in the IT and Telecoms sectors. The exhibition main topics are: new mobile services, call centre solutions and equipment, VoIP, IT security, banking software, CRM, ERP and storage solutions. For further information please http://www.medit.eu.org/2008/algerie/presentation.htm * AFRICA MOBILE MARKETING FORUM 23-24th April 2008, Lagos, Nigeria Up until recently the only mechanism for delivering advertising messages to mobile devices was via SMS and WAP Push. However, now that 3G phones, with their multimedia capabilities, are reaching critical mass, the opportunities for advertising and brand extension, primarily via mobile video, are greatly increased. For further information visit http://www.mobilemarketingafrica.com/ * THIRD AFRICAN BANKING TECHNOLOGY CONFERENCE 6-7 May 2008, Lagos, Nigeria The event is being hosted by AITEC Africa and will focus on "Competing in a Borderless World". This conference represents an opportunity for financial sector to assess latest technologies, both local and international, that will help increase productivity and profitability and improve clients' service. For further information visit http://www.aitecafrica.com/ * VoIP WORLD AFRICA 12-15 May 2008, Johannesburg, South Africa The world of VoIP is rapidly changing - costs are coming down; more applications are coming into play and new forms of revenue generation are being exploited. For further information visit the website
* ITU TELECOM AFRICA 2008 12 - 15 May, Cairo, Egypt, Cairo International Convention and Exhibition Centre (CICC) Comprising a high-calibre Exhibition, a Forum and a whole lot more, ITU TELECOM AFRICA 2008 will provide a major networking platform for Africa's top ICT names to come together to focus on the core issues relating to ICT expansion across the region. For further information visit http://www.itu.int/AFRICA2008/?050707 * ITU REGIONAL DEVELOPMENT FORUM 2008 "Bridging the ICT standardization gap in developing countries" for the African Region 26-28 May 2008, Accra, Ghana The Forums are intended for executives from National Regulatory Bodies, Telecommunication Operators and Service Providers in the regions who need to be kept abreast of the latest development in telecommunications and who need to be familiar with the future challenges ITU is facing and, therefore, be able to draw up strategies to achieve greater participation in ITU activities, in particular ITU Study Group activities. For further information visit http://www.itu.int/ITU-D/tech/indexDevelopmentForum.html * TELECOMS FRAUD AFRICA 2008 26-29 May 2008, Cape Town, South Africa IIR's Telecoms Fraud Africa conference 2008 brings you case studies, networking, advice and analysis from expects in detecting and managing telecoms fraud. With special attention to roaming frauds and internal frauds, operational issues and the impact of new technologies. For more information please visit, http://www.iir-events.com/IIR-Conf/page.aspx?id=11306 * E-LEARNING AFRICA 29-30 May 2008, Accra, Ghana eLearning Africa 2008 is a conference organised by ICWE GmbH and Hoffmann & Reif that focuses on ICT for development, education and training in Africa. The event establishes and links a Pan-African network of decision makers from governments and administrations with universities, schools, governmental and private training providers, industry, and important partners in development cooperation. For further visit www.eLearning-Africa.com * SEMINAR ON E-GOVERNMENT FOR DEVELOPMENT: STRATEGIES AND POLICIES 13-27 June 2008, Washington DC, USA This intensive face-to-face seminar includes lectures, panel discussions, and interactive workshops presented by leading e-Government experts from USAID, USTTI Board member corporations, private sector firms, universities, NGOs, and multinational organizations. For additional information about the content of the course, how to apply, as well as funding, visit the USTTI website at http://ustti.org * FRAUD PREVENTION AND REVENUE ASSURANCE MEA 1-2 July 2008,Dubai UAE ViB events’ Fraud Prevention and Revenue Assurance MENA will bring together telecoms operators and industry experts to discuss the critical issues, which are faced by revenue assurance and fraud personnel today. For further information visit website
* UNLOCKING THE POTENTIAL OF MOBILE TECHNOLOGY FOR SOCIAL IMPAC August 2008, Johannesburg, South Africa he fourth annual SANGONeT “ICTs for Civil Society” conference and exhibition will be held in August 2008 in Johannesburg. This year’s event will be co-hosted with MobileActive.org and branded as “MobileActive08”. For further information visit www.sangonet.org.za * CAPACITY AFRICA 2008 14-15 Oct 2008, Cape Town, South Africa This unique event features a business-driven agenda that will address the latest market developments and opportunities and equip delegates with strategic information to enable them to grow their businesses. Dedicated networking opportunities throughout the programme will provide you with the optimum opportunity to build profitable partnerships and execute business deals. For additional information visit http://www.capacitymedia.com/conferences-events.asp Jobs and Opportunities* Service Creation & Application Development Manager – Nigeria Results-oriented Systems Integration Consultant with diverse experience in complex software projects. Excellent team leadership, training, and client relation skills, with additional practical knowledge of the methodologies and tools necessary for efficiently plan and run system integration projects particularly in the Telecoms industry with not less than 5 years of GSM experience. For further information contact advertising@balancingact-africa.com Contracts* Wataniya Telecom Algerie and Nokia Siemens Wataniya Telecom Algerie (WTA) has signed an agreement with Nokia Siemens Networks to modernise its core network. Nokia Siemens will deploy its 3GPP mobile softswitching solution for the operator, which will help reduce opex and allow WTA to deploy new services more rapidly.
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