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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 403 African Telecoms, Media and Technology Fund to invest US$75 million in its chosen sectors plus an SME fundUS Government investment agency OPIC recently agreed to put US$50 million into the African Telecoms, Media and Technology Fund, the first of its kind on the continent. This funding will be joined by US$25 million from private American and African investors. Within the Fund, some of the money will be allocated to an SME investment fund to encourage entrepreneurs. The Fund is talking boldly of creating the first non-Telco Triple Play offer and of creating a carriers’ carrier within the wider East African region. Russell Southwood spoke to Richard Essex, Chief Financial Officer, African Telecoms, Media and Technology Fund about its plans. Q: How did the idea for a Fund of this kind come about? The original idea was to create an alternative telecoms operation and because of our experience at UPC (now Liberty Media) and NTL (now Virgin Media), the whole idea of Triple Play in emerging markets was something were interested in looking at. Q: So what will the fund own? We’ve acquired a number assets in the last year including Wananchi Online, the Simbanet companies in Kenya and Tanzania, Mitsuminet Cablevision and Trunking Systems. Wananchi is a well-known ISP in Kenya. Simbanet is the largest data services provider in Tanzania. Mitsuminet is a fibre optic cable TV company. Lastly, we’ve agreed to invest in a 10% shareholding in the TEAMS cable. We will use the TEAMS stake as part of our strategy for developing a long-haul carriers’ carrier throughout the region and this is separate from the broadband services at the local loop. We have a strategy in place to connect inland using different cables that will go to all neighbouring countries and as close to South Africa as possible. In terms of the broadband project delivery, we’re already working on Kenya and Tanzania with a view to a mid-year roll-out and have four other countries in our sights if everything is on target. There will be a pilot service in the next few weeks with double play and triple in some areas some time after that. Real triple play will be available more widely in Q3 of this year. Q: So where’s the money coming from? OPIC is putting in US$50 million. It is a US Government agency that provides medium to long term funding through loans and loan guarantees to eligible investment projects in emerging markets. It complements the private sector by providing financing where conventional financing institutions are reluctant or unable to lend. In addition to the OPIC funding, we’ve raised US$25 million from American and African investors. The people involved are myself, Richard Bell (who is well known in East Africa) and Mark Schneider, the former CEO of Liberty Global, the largest pan-European cable company. At the local level, we have the involvement of a respected, long-standing investor in Kenya, James Gacui of Transcentury. Despite this being a huge commitment of cash from a US government agency, this is all about Africa and Africans. There are a total of two Americans involved in management - Mark and myself. Our staff and the people who are making this happen on the ground are African. We are investing with the local community, big and small, to unleash new ideas and the strong entrepreneurial talent that is already there. This isn't just about us making a buck but about being part of the on-going effort to build stable economies that reach even deeper into the wider population. Q: What types of investment will you be looking at? This is the first sector-focused fund of its kind in Africa, covering telecoms, media and technology and it is aimed at all the East African countries and some COMESA members outside of the sub-region. It’s unlikely that we’ll do public-private deals but we’re looking for similar investment opportunities to those we’ve already found in Kenya and Tanzania, elsewhere in the region. We’d like to find opportunities in the media sector where we can develop local content. One important part of the Fund’s activities will be an SPV, a mini VC fund, which will provide real VC funding for SMEs with strategies for technology, media and telecoms. It will be investing between US$10,000-250,000 in equity. We’ll be investing with investment clubs to help seed entrepreneurs in the telecoms, media and technology sectors. At the SME level, we’re talking about enabling people to take their ideas and grow them. We want to be able to provide them with the kit that will enable them to become their own engineers. We want to set up one to two retail opportunities as models that we can create franchises from. We will provide the capital to make the business happen. We’ve been impressed by the entrepreneurial spirit in East Africa, particularly in Kenya. Q: What size of deals will you be looking at? At the big end, it will be deals of between US$10-15 million and at the low end around US$500,000. Q: At what stage will the companies you’re looking be at? In general we’re trying to fund companies that have entrepreneurial spirit where we can help with management to take their companies to the next level. We’re also looking at how we can integrate investments with other assets we already have. Our underlying plan is to grow our assets to create employment opportunities and to be in for the long-term. Q: How will you overcome past pitfalls? There have been funds that have sunk without trace in the past. These industries are poised for growth and the team has a lot of experience, both globally and specifically in Africa. Having worked in and managed publicly created companies, we are very aware of the need for policies and procedures in managing our investments. Q: What’s the timescale for getting going? We plan to be fully invested in Fund One in three years and are looking at a five to ten year horizon to hold those investments. Q: What are the interesting areas that you’re looking at? What’s exciting is that cellular providers showed that Africa could both have its own business models and leapfrog in terms of technologies over what might have been seen as obstacles. So the opportunity for us to be part of the next stage of that revolution is very exciting. There’s more going on in Africa with all its energy than there is elsewhere in the world. Q: What do you see as the second phase of the revolution? Broadband both gives you access and the ability to contribute to global media. It allows African countries to play a much more formidable role in the global economy. It’s not just an economic but also a social impact that it will have in these countries, allowing for a more creative dialogue between citizens. With Nollywood the third largest producer of content in the world, there’s terrific potential to create local content, particularly in East Africa. It’s not only that it should be done but it’s also a good business opportunity. There’s enormous potential for fiction output that in time will have a global potential.
Zain launches mobile network in Southern SudanKuwaiti Mobile Telecommunications Co (Zain) launched its new network in south Sudan, where it aims to spend up to $150 million expanding in the semi-autonomous region emerging from decades of war. "We have opened our regional office today. For the first time we will directly serve customers," Zain’s Sudan Chief Executive Officer Khaled Muhtadi said. "We now have a vastly improved service ... with 50 antennas across the south." Zain fully acquired Sudan’s former state operator Mobitel in 2006, opening the door to expansion in the south where suspicions after decades of north-south civil war had prevented northern-owned operators from expanding despite a 2005 peace deal. So far very little of Zain’s US$500 million investment in Sudan has been spent on the south where Muhtadi said the company may have around 150,000 customers. Because lines have been sold on the black market it is difficult to know exactly, he said. "(But) we estimate over the next couple of years to spend US$100 to US$150 million, depending on what we find of the ground," he said. With the south’s bad roads and high cost of fuel and transportation, expansion has been hard and it was not clear how much of the population has returned home after the war. South Sudan’s population has been estimated at 10 million. Four national telecoms contracts and two exclusively for the south are valid but no new contracts are allowed until 2010. Other national operators have found it hard to expand in the south, which has acted to protect their own operators against the more established companies working in the north. A memorandum of understanding signed last year between the northern and southern telecoms ministries allowed Zain to enter, Muhtadi said, and over the last months new equipment has been set up. "In one place because of flooded roads ... we had to helicopter in fuel," Muhtadi said. Zain’s move south is key after losing its lion’s share of Sudan’s market in 2007 to fierce competition in the rest of the country from the part-government owned operator Sudani. South Sudan’s Ministry of Telecommunications Undersecretary Juma Stephen said Swedish telecoms group Ericsson would finish the US$17 million infrastructure for south Sudan’s own international gateway by the end of the year, adding his ministry hoped to rent it to all operators. (Source: Reuters) MTN and Celtel Set to Pay N4bn Compensation to Subscribers in NigeriaIn a bid to escape the hammer of the regulator, NCC for poor quality of service on its network, Celtel Nigeria has concluded plans to pay billions of naira as compensation to subscribers on its network as directed by the NCC. NCC sources told This Day that the management of Celtel was ready to pay subscribers and that the officials were negotiating with the NCC to determine the payment plan. The source also said that MTN had requested for a meeting as well with the NCC to negotiate subscriber payments in order to escape punishment by the NCC. The NCC has also stated that a new round of tests that will determine quality of service thresholds by operators will be carried out on a regular basis to ensure that quality of service parameters are kept. NCC emphasized that operators found wanting in their services to subscribers will be sanctioned. Celtel had about 11 million subscribers on its network when the directive on service was given and it will pay a little below 2 billion naira and MTN will pay in proportion similar amounts to its subscribers. At the time, NCC asked the operators to pay subscribers in batches before the May when NCC was to carry out another round of testing to determine quality. But this was stalled due to the fact that Celtel and MTN took the NCC to court and obtained an injunction to stop the NCC from compelling it to pay compensation. But the Commission later got that judgement vacated and won the mandate to compel the two operators to pay compensation. What this means is that a new payment schedule will be negotiated between the parties to determine a new set of batches and time frame within which subscribers will get compensation. It will be recalled that the NCC had in March this year indicted and carpeted Celtel and MTN Nigeria for poor quality service and directed them to pay 4.7 billion naira compensation to their subscribers as at end of January before May or face sanctions. The sanctions if effected will cost the operators N5,000,000 million naira in the first instance and a further sum of N500,000 per day if they refuse or neglect to pay compensation to all active subscribers on their network. The NCC had stressed that the two operators were being asked to pay subscribers because they failed to achieve Traffic Channel Congestion levels below 10% in line with the Key Performance Indicators published by the NCC and issued to the operators on November 20, 2007. The Commission directed the operators to pay compensation to every active subscriber on its network for the month ended January 31, 2008 at the rate of N175.00 per active subscriber for the poor and unacceptable quality of services on their networks. The compensation according to the statement will be paid to active subscribers by way of airtime credit, while no time limitation will be placed by the affected operators on the utilization of the airtime credit. The NCC also reiterated that airtime credit of N175.00 should be paid to all active subscribers on the respective networks as at January 31, 2008, between March 1, 2008 and April 15, 2008. The NCC had disclosed that the payment was to be made by the respective operators in three batches. The first batch representing 40% of the total active subscriber base of the respective network should be credited between March 1, 2008 and March 15, 2008.The second batch representing 30% of the total subscriber base of the respective network will be paid between March 16, 2008 and March 30, 2008, while the third batch representing 30% of the subscriber base of each of the networks should be paid between April 1, 2008 and April 15, 2008. In a detailed analysis of how the operators would be penalized, the NCC had stated then that when Traffic Channel Congestion in any network is above 10%, the operator will be required to pay N175 per subscriber per month, while it will it will pay each subscriber the sum of N100 per subscriber per month if the Traffic Channel Congestion in its network is more than 5% and less than 10 %. Traffic Channel Congestion of more than 2% attracts N50 for each subscriber per month. (Source: This Day) Ghana Telecom strikes deal with Indian operator to offer IP-TVGhana’s telco incumbent Ghana telecom has struck a deal with Indian operator Wisenet to offer an IP-TV service to its broadband subscribers. Ghana Telecom provides the marketing and delivery and Wisenet provides the back-end technology and content, covering the costs of rights for the latter, writes Russell Southwood. According to Redeemer Kwame, Head of Business Development for Fixed Network Services, the company decided “to take advantage of the technology. As we had broadband, we thought why not introduce IP-TV? The challenge is to be sure the copper is working fine but we’re getting much better at doing it.” The deal initially splits revenue 70:30% and there is a two year review breakpoint. Ghana Telecom thinks that it will take four years to break even and it reaches that point with about 10,000 subscribers. Currently Ghana Telecom has around 15,000 subscribers for its DSL service (about 35-40% of the broadband market) but has a target of hitting 50,000 subscribers by 2010. Eighty per cent of current subscribers are in Accra and Tema. The set-top box for the service costs US$250 but they will be giving it away free to subscribers. The service is currently in its pilot stage with eight channels but when rolled out customers will be offered three bouquets: the lowest at US$12 will give 10 channels and 10 movie downloads; the mid-range bouquet at US$27 will offer 20 channels and 20 movie downloads; and the premium bouquet will cost US$35 and will give 30 channels and 30 movie downloads. There will also be several FM radio channels that will be free to all subscribers. The back-end from Wisenet can handle up to 40 channels. So what about Triple Play? According to Kwame:”We haven’t done IP Voice before but we will consider it. We would start with low price or free calls between broadband subscribers then extend this to anyone who is a GT subscriber. We’ll be implementing it in stages.” Content will include the five local Free-To-Air channels, Hollywood, Bollywood, Nollywood and Ghanaian movies, South African musicals and news channels (Al Jazeera, CNN and BBC). It will show Premiership matches 24 hours after the event and classic sport like the recent Africa Cup of Nations. An interactive element will also be announced once the service is fully launched in May 2008. Zimbabwe Operators Seek to Share Network InfrastructureZimbabwe's telecoms trade body, the Telecommunications Operators Association of Zimbabwe (Toaz) has announced that it is working with the mobile operators to permit infrastructure sharing amongst their networks. Toaz chairman, Douglas Mboweni said some were already sharing their infrastructure although some outstanding issues were still to be worked out. "Network sharing is an issue that we have already discussed and some amongst us are already implementing," he said, "There are however issues that have to be worked on and we hope this will be finalised so that things go smoothly." Econet Wireless CEO, Mboweni said that while current legislation prevents the sharing of the active infrastructure, it could be possible for the operators to share towers and some elements of the passive kit. Due to the currency problems within the economy, the operators are facing increased problems expanding their networks. (Source: Cellular News) In brief:- State-owned incumbent Botswana Telecoms Corporation (BTC) has launched mobile phone services, following a successful trial and evaluation period. BTC Mobile will compete with existing mobile operators, Mascom and Orange. - A study on the effectiveness of competition in the telecommunications market will be carried out in Tanzania. The Tanzania Communications Regulatory Authority (TCRA) has said the study will focus on economic, legal and technical aspects. TCRA has floated tenders for eligible consultants to conduct the study. - In Kenya, Safaricom has reached an agreement with DStv to offer mobile TV services. The service which will initially be available in Nairobi will offer a total of 10 selected local and international channels direct to subscriber's mobile handsets. handsets. In order to receive the Dstv mobile service, customers will have to acquire a mobile phone retailed at Sh25,000 (US$402) that is specially configured to receive special kinds of broadcasts known as DVB-H. Subscription to the service will be free until the end of June. Thereafter, a subscription fee of Sh1,000 (US$16) will be charged. - Sierra Leone’s Minister of Information and Communications assured telecommunication companies operating in the country that government would not interfere into their operations. Alhaji Ibrahim Ben Kargbo said mobile companies have the free will to operate in the country as long as they abide by the rules and regulations. - In Nigeria, the Association of Telecom Companies of Nigeria, ATCON has called on the telecoms regulator to formulate plans to force new and existing customers to register their PrePay SIM cards. Citing security issues in a country with limited central services, the association believes that the move would not impact on privacy and would help fight crime. - Serious contenders still in the race to buy Ghana Telecom include France Telecom who are still bargaining and Vodafone/Vodacom who have had a team poring over the company for two weeks. Regulator NCA says that it will shortly allocate spectrum to existing operators for 3G before moving on to allocating spectrum for Wi-MAX. - Apparently 6-8 people on one floor of a leading mobile operator are already using Apple iPhones. Telecoms, Rates, Offers and Coverage- South Africa’s second national operator (SNO), Neotel, has launched its first voice and Internet services for residential users. The SNO is offering a CDMA-based fixed wireless service called NeoConnect to users in parts of Johannesburg and Pretoria. The initial launch is for users who have already registered an interest with Neotel; a full commercial launch is scheduled for next month. The NeoConnect Prime tariff offers 1,000 minutes to Neotel numbers, 50 SMS to Neotel numbers, an e-mail account and up to 10GB of internet access a month for ZAR599 (USD78). Internet download speeds will average between 300kbps and 700kbps on the CDMA2000 1x EV-DO network. - In Uganda Warid Telecom has launched a promotion in which customers will be charged for only the first two minutes and the rest of the time is free. Dubbed 'Bang KB,' the promotion would run day and night unlike in other promotions where such discounts only start at 10pm. - Mobile telephone services provider, Celtel Kenya has adjusted the calling rates for its post-paid subscribers. With the new rates, post-paid customers will be calling for Sh4 all day and night, and enjoy preferential calling of to up to eight numbers within the Celtel network. - Mobile operator MTN is expanding its reduced calling scheme in low traffic zones to Cameroon. The scheme was initially launched in South Africa a couple of months ago. - Onatel, Burkina Faso’s national incumbent has recently launched a pre-paid calling card offering a flat rate across all international destinations. Labelled “Dounia” the card enables Onatel’s fixed and mobile users to at CFA Francs 150 (US$0.37) per minute anywhere in the world. Onatel’s move follows Telecel’s (3rd mobile operator by subscribers) successful launch last year of a flat rate pricing strategy including a flat rate of CFA francs 150 (US$0.37) per minute to any networks in the country and CFA francs 250 (US$0.74) per minute to any international destinations. Celtel, the market leader by number of subscribers has still to follow on what looks like a price war.
Main One Cable System Project on track following the signing of the supply contract with TycoMain Street Technologies announced the award of the turnkey supply contract for its Main One Cable System to Tyco Telecommunications. The cable system will span 14,000 kilometers and provide the much-needed high capacity for international and Internet connectivity to countries between Portugal and South Africa on the West coast of Africa. The submarine cable project is designed in two phases, both of which are scheduled for completion in May 2010. The dual fiber pair, 1.28 terabits per second, Dense Wave Division Multiplex project will connect Nigeria, Ghana and Portugal in Phase 1 with onward connectivity through Portugal to Europe, Asia and the Americas; and connectivity extending to Angola and South Africa in the second Phase of the project. Main One will provide international capacity into a region that has experienced explosive growth in tele-density in recent years, but which remains constrained with respect to access to international cable capacity for global connectivity. The Main One Cable system will provide open access to regional telecom operators and Internet Service Providers at competitive rates that are less than 50% of current international bandwidth prices in the region available via SAT 3 or satellite service providers. As a business championed by local entrepreneurs, the company will encourage local content development via skills transfer of critical networking technologies and job creation with the location of the Network Operational Centre (NOC) for the entire system in Nigeria. The system will ease the difficulties and reduce the costs of switching traffic between African countries without the need to go through Europe, as well as provide broadband capacity to expand Internet access in the sub-Saharan region, which currently stands at less than five percent. Main Street Technologies Chief Executive Officer (CEO) Funke Opeke stated, “The execution of this contract for us with Tyco Telecommunications is quite timely given the difficulties faced by telecom operators and businesses in Nigeria due to the recently ended strike at incumbent operator NITEL, which shut down SAT 3, the country’s only existing cable access. It demonstrates clearly that African countries such as Nigeria require additional cable capacity and diversity other than SAT3 in order to sustain the growth of their economies and effectively participate in global commerce.” Gambia gets bandwidth boost from Senegal MoUGambian incumbent telco Gamtel, and Senegalese incumbent Sonatel have signed a new Memorandum of Understanding (MOU), a press release from the Department of State for Communications, Information and Information Technology reveals. Under the MOU, Sonatel has agreed to increase The Gambia’s Internet Bandwidth capacity from 34 megabits to 68 megabits by the end of April 2008. This, according to the release, is also envisaged to be doubled by the end of the year to STM1 capacity. The cost of the bandwidth has also been negotiated, and a discount of 28% has been given to Gamtel. The MOU is the outcome of a mission recently embarked upon by Ms Fatim Badjie, Secretary of State for Communications, Information and Information Technology, and Rein Zolsman, Chief Executive Officer of Gamtel, to Senegal. “This increase in capacity will undoubtedly provide greater access and affordable high speed internet services to Internet Service Providers and consumers,” stated the release. “A new microwave link will be installed in three months time to provide connectivity between Banjul and Kaolack, and through Fibre Optic to Dakar for enhancing Gamtel’s network, and also serve as a back-up to the South Bank Optical Fibre in the event of fibre cut or damage. “A technical committee comprising staff of Gamtel and Sonatel has been set up to regulate the spilling signals between Gamcel and the Senegalese GSM operator, Alize, especially around the boarders. This,” the release added, “would help subscribers avoid unnecessary and costly roaming signals in their own territory. “Sonatel and Gamtel have agreed to reduce the charges for roaming by 50% to make it more affordable to the people of the two countries, and the bulk of the reduction would trickle down more to the consumers.” The release further stated that The Gambia and Senegal, through their technical institutions, have agreed to make use of each others’ expertise when the need arises. (Source: The Point) 63.4% of Egyptian households with ADSLIn a new survey of connectivity among Egyptian urban households, the analyst company found that 63.4% of Egyptian households share the connection with their neighbours. In 81.9% of households that share lines the connection is shared with more than three other households. Jawad J. Abbassi, founder and general manager of Arab Advisors Group said: "According to official figures from the Ministry of Communications and Information Technology, Egypt had 427,085 ADSL lines by the end of 2007. The Arab Advisors Group estimates that 75% of those are residential ADSL lines. Based on the survey results, the average number of households sharing one ADSL connection is 2.98. Multiplying the reported number of lines by this figure yields an estimate for households with ADSL connections in Egypt of 956,000 households by end of 2007." The survey also showed that 81.2% of Egyptian Internet users preferred to browse Arabic language websites. Internet cafes remain an important source of connectivity for Egyptians, with 27.8% of Internet users saying they used Internet café services. e-commerce however has had an extremely limited impact, with only 1.3% of respondents saying they have bought products or services or paid bills online. (Source: ITP) In brief:- Ugandans spends US$18m per year on Internet access, the executive director of the Uganda Communications Commission (UCC), Patrick Masambu, has said. "Uganda's Internet costs are the highest in the region. It costs $2,300 for accessing 512 mega bits per second per month whereas in Kenya, the 512 mega bits cost $500," Masambu said. -A new Kenyan website has been launched as a hub for the country’s workshops and seminars. The site, www.webarazascholar.com will list seminars and workshops from more than 20 institutions and training providers in Nairobi. It will cover specialist skills training in everything from etiquette, the winning of marketing wars, customer care and stretching cashflow through to corporate fraud risk, voice and data cabling, Linux basics and world class manufacturing practices. - Users report significant quality issues on the Cote d’Ivoire fibre to Burkina Faso. Similarly Ghana Telecom is still experiencing frequent outages on its IP network over SAT3. The specially negotiated GISPA rate is being offered more widely to other customers and GISPA is trying to negotiate a new lower rate. - Ghana’s mobile operator Kasapa looks set to upgrade its data capacity (which it offers to a number of local ISPs) to EVDO by the end of 2008. - MTN is planning to roll out Wi-MAX in Cote d’Ivoire and there is talk of licensing three more operators in the country.
South Africa’s Communications Department is Recruiting 800 IT GraduatesThe Department of Communications is looking for 800 Information Technology (IT) graduates to be enrolled for the E-Cadre Program to assist with IT technical support within their areas. The E-Cadre Program is the department's flagship program for the National Youth Service. Speaking to BuaNews, department spokesperson Richard Mantu said the graduates would participate in a one year programme which will be deployed in the department's related Information and Communication Technology (ICT) infrastructure sites. "They will provide technical support so that communities can access government services through ICTs and assist by teaching those who do not know how to use the internet," said Mantu. As part of implementation, the rural and urban nodal municipalities will be prioritised in rolling out the programme and graduates within their areas are encouraged to apply and render services in their own communities. Graduates in areas including Alfred Nzo, Buffalo City, Chris Hani, Nelson Mandela, OR Tambo, Motherwell in the Eastern Cape, Alexandra in Gauteng, Umkhanyakude, and Inanda, KwaMashu and Ntuzuma in KwaZulu-Natal, Sekhukhune and Maruleng in Limpopo are encouraged to apply. Mantu said the application forms were available at the post office and Further Education Training Colleges, which are also part of the programme. They will be short listed and called for interviews, said Mantu. Speaking at the inauguration of the E-Skills Academy of South Africa, in March this year, President Thabo Mbeki said ICT has been identified as an important contributor to the growth and development of the country's economy. President Mbeki said it was part of government's Accelerated and Shared Growth Initiative for South Africa (Asgi-SA) aimed at realising higher economic growth. He said ICT also provides for immense possibilities for education, training, skills development, job-creation, basic service delivery and broad-based black economic empowerment. "It also has the ability to brighten the prospects for the youth and offer them opportunities that they would have never had access to before," President Mbeki said. The academy opened its doors in January, four months after being announced at a Presidential International Advisory Council on the Information Society and Development in August last year. "Accordingly, it is important to train as large a number of skilled workers as possible, so that, even in the event of migration of skills to developed countries, the developing countries will themselves be able to maintain a competitive edge," the President said at the time. (Source: BuaNews) Kano State Partners with Malaysian Experts to build ICT ParkThe State Governor, Malam Ibrahim Shekarau disclosed that government is working with Malaysian ICT Professionals toward setting up the proposed ICT Park in the state capital. Towards this end, he said government would use the long-abandoned Ado Bayero House to accommodate the gigantic project, explaining that government has recently approved about N270million for the completion and furnishing of the building to enable the Park start operations early next year. Malam Shekarau also told the Minister that efforts are on to renovate the pioneer Science Secondary Schools in the state as part of the government's concern to enhance scientific development. The Governor assured that his administration would look into the possibility of setting up a Science and Technology Directorate, maintaining that government would contact the Federal Ministry of Science and Technology to identify areas that are not catered for by existing state agencies. Earlier, the Minister of Science and Technology, Mrs. Grace Ekphiwhre requested the state government to set up a Directorate or a Ministry of Science and Technology to ease collaboration with her Ministry in the areas of research and networking with international bodies that are into research and development. (Source: Daily Trust) Computer Software Helping Users to Cut Costs in KenyaThe high cost of doing business has driven out a number of firms from the Central Business District in search of spacious but inexpensive offices outside the city centre. One such investor is Patrick Mathenge who has moved to Mombasa Road's Vision Plaza where he is pushing a new venture in technology. Mathenge is the CEO of Mullard Electronic Limited, a firm that provides hardware and software solutions. The company is bringing in and distributing software that can turn a single computer into 10 workstations to save costs and earn investors maximum profits from their investments. "The personal computer is designed for use by a single trusted user. Instead of buying 10 CPUs, you only need to have the software and duplicate it to 10 CPUs," says Mr Mathenge. There is a choice of two softwares- the Desktop Multiplier, which is suitable for normal office and general use and Discover station for public computing. With the Discover station software, one can control access, enforce usage limits and even apply charges directly to the user's accounts. The software was developed by a Canadian firm and Mullard was appointed by Netsys Computer Inc, the Linux Africa distributor to supply the software in Kenya. "The chance to distribute the software came when I visited an ICT exhibition last year at the Kenyatta International Conference Centre. I met Netsy Computer Inc Company officials who were looking for a distributor and I expressed my interest. After two days they called me to their office and presented the opportunity," the former soldier says. The software divides the CPU resources to the number of the workstations in an office. The CPU resources are shared equally amongst the workstations. "No user can access information, if it is not his or her workstation. Information stored in the hard disk is labelled per monitor. Different users need to have secret password to access information. A user cannot access a colleague's work," Mr Mathenge said in his office at Vision plaza. The 55-year-old electronic engineer says computer users no longer need to worry about viruses, spy ware or unauthorised access. "The recommended retail price for the software is Sh9,000 compared to over Sh 25,000 for a PC if you are using other softwares," said Mr Mathenge. A client is required to obtain a CPU which has 3.0 GHZ, Duo Core processor, 2GB RAM and an expansion slot to accommodate duo head video cards. "These standards reduce computer dumping in Africa," he says. On the other hand, the CPU cannot support more than 10 workstations, as its may slow up the computer. There is no maintenance cost once the software is installed. "By using the software you will be able to save up to 50 per cent of the money that you would use to buy CPUs . There is one Internet connection, reduced power back up requirement, created work space and reduced heat generation," he said. Mathenge say he has invested Sh5 million which has been spent in market study of the software, equipping, training and purchasing the product. Having started out last year, Mullard have sold out the software to the Ministry of Youth and few individuals. Mullard has been authorised to supply the software to the digital villages. But Mathenge says they are looking for a reseller of the software at the district and provincial levels, who will also distribute them to the digital villages. The Government has bought over 100 workstations to be used in digital villages and has partnered with the Youth ministry to train young people on the business benefits of software. "We are capable of providing software and hardware solutions in line with the one to 10 CPU to schools by opening a software and hardware centre", Mr Mathenge said. But, he wants the government to adopt a modern computer syllabus to open opportunities for to young IT professionals. (Source: Business Daily) In brief:- BMI-TechKnowledge, a South Africa ICT market analyst, has announced the publication of its latest report entitled: ’ICT in National Government’, which reveals that the total ICT spend of the South African government will increase from approximately R6bn in 2005/06 to R8bn in 2010/11 at a CAGR of 2,9%. - Zinox Technologies, a Nigerian computer manufacturer has been initiated into the global champions club of Intel Corporation worldwide. Zinox, described by Intel Executive Director as a company that has in a short time broken all technology matrixes and consciously delivering a strong brand out of Africa, Middle East and Turkey with its Divine series of laptops. - In Uganda, Computer Aid International, a UK-based organisation, has signed an agreement with the Government and local agents to provide schools with computers cheaply. - Mallam Ibrahim Dasuki-Nakande, Minister of State for Information and Communications, has revealed that at least 109 communities will get an internet cafe this year under the Universal Service Provision Fund (USPF) project of the Nigerian Communications Commission. - OpenBSD head Theo de Raadt announced the workers’ day release of OpenBSD 4.3. This is the 23rd release on CD-ROM and 24th via FTP. “We remain proud of OpenBSD’s record of more than ten years with only two remote holes in the default install,” said De Raadt
Kenya Telecom to borrow over Sh 7 billonPlayers in the capital market and banking industry are bracing for a windfall as national telecom operator, Telkom Kenya, prepares to borrow in excess of Sh7 billion from the local market. The cash-strapped Telkom Kenya is seeking a multi-billion funding to modernise Telkom's infrastructure, roll out its mobile telephony business in September and fix its weakening cash position, which is expected to fall in the negative territory from September. Through these plans, the loss-making firm hopes to shake off growing competition in the local telecoms market and enter the profit zone by 2011, says Dominic Saint-Jean, the firm's CEO. The firm has been making losses over the past decade and was expected to make a loss of Sh1.18 billion in 2007. For growth, the new majority shareholder is banking on Telkom's newly minted mobile license to pull it out of the loss-making pit. But for this to happen, Mr Saint-Jean has to move with speed and create the multi-billion funding war chest. Though the firm was reported to be seeking Sh7 billion, Mr Saint-Jean told the Business Daily that they are targeting a higher figure without giving details. "Yes, Sh7 billion has been quoted, but we need to borrow more than the figure," he said. The quest for funds comes shortly after France Telecom paid Sh26 billion - giving them a 51 per cent stake in the State owned firm - to win control of the board and management. Now, the firm has unveiled a fundraising plan that will see its raise the multi-billion debt in three tranches. First, it requires cash from its two shareholders - France Télécom and the Kenyan Government - to cover for its weakened cash flow position over the next three months. Second, it's seeking a short term loan, with a maximum tenure of one year, from commercial banks to fund the mobile telephony roll out and fix its internet business. Third, the firm is going for long term debt to cover that will help its stabilise its networks. "In seeking funding will go for a mix sources that best suits us including banks and bonds," said Saint-Jean. This news is set to excite the banking and the investment banking fraternity. And it comes barely a year after Telkom Kenya raised Sh5.8 billion from a number of banks to fund its restructuring ahead of a sale of the 51 per cent stake to France Telecom. Commercial banks are increasingly targeting the telecommunication industry to grow their lending businesses as indications show that the industry is set to maintain its growth momentum. The industry top dogs including Standard Chartered Bank, Barclays Bank and Kenya Commercial Bank have all cast set their sights on the sector, setting the stage for a bruising battle for control of this lucrative market. The increased focus on lending to players in the telecommunication sector is informed by the increased need for capital among the players as they race to upgrade their services as a way to grow their share in the lucrative telecoms market. Besides the huge capital requirements, banks have been attracted to the sector's growth potential, which has pushed firms in the sector, such as Safaricom, up the profitability ladder across East and Central Africa. In 2007, Safaricom returned a profit of Sh12 billion on revenues of Sh47.4 billion. As a result, the banking fraternity is ready to bet their money on the telecoms industry given their healthy cash position. In the past four years, the banking industry has lent Sh23.8 billion to the telecoms sector in three syndicated loan products including the Sh5.8 billion lent to Telkom last May, Sh12 billion to Safaricom in 2006 and Sh6 billion to Celtel in 2004. On the other hand, players in the capital markets have lent Sh8.5 billion to the sector in form of corporate bonds-Sh4 billion for Safaricom and Sh4.5 billion for Celtel. (Source: Business Daily) Celtel Africa to Launch IPOCeltel Africa plans to sell over 20 billion shares in an Initial Public Offer (IPO) in Lusaka, Zambia. David Venn, the Celtel Zambia managing director, said the share sale follows a directive from Celtel International to launch the IPO to international and local investors. He told the media that Celtel Zambia would be the first to launch its IPO, while Celtel networks in other African countries were still working on regulatory requirements. "In Celtel Zambia, Celtel International has provided an offer for the sale of over one billion shares, representing a 20% share capital in Celtel Zambia," Venn said in a statement. (Source: New Vision) Reltel Wireless to Raise N30billion Via Private Placement in NigeriaReltel Wireless, a CDMA operator in Nigeria, is set to raise N30 billion via private placement from investors. Executive Vice Chairman of the company, Kenneth Aigbinode, who disclosed this at the unveiling of a digital partnership between Zinox and Reltel in Lagos, stated that the placement will enable Reltel drive its nationwide expansion plans across 51 cities in the country. Aigbinode who disclosed that 100 percent of the money raised will be invested in the company, added that the company will be listed on the Nigerian Stock Exchange before the end of the year. Aigbinode, who also disclosed that Reltel was getting set to relaunch its brand, stressed that the company's expansion programme will begin in phases with Reltel currently developing six sites in Cross River, Akwa Ibom, Warri, and Kano to be completed within one month. He said other sites have been identified with equipments on ground, all in a bid to meet its target rollout within the year. Aigbinode stated that this was a new dawn for CDMA operators known as Private telecoms operators (PTOs) in the country, following the enthronement of the unified licensing regime which allows operators to offer bundled services of voice, video and data as opposed to the former regime when CDMA operators were restricted to their area code jurisdiction. He stated that the company has paid for a full National Spectrum, covering the 36 states of Nigeria, and the Federal Capital Territory. It currently has coverage across seventeen cities in the federation including Lagos , Onitsha , Port-Harcourt, Abuja , Aba , Owerri, Umuahia, Enugu , Ibadan , Nnewi, Asaba, Awka etc. He disclosed that Hauwei Technologies, as technical partner of Reitel will apart from managing the network of the company also supplies all their equipments and is partnering with Reitel to make it the number one indigenous telecoms company of choice in the country. Chief Leo Stan Ekeh, the Chairman of Zinox Technologies, who is partnering with Reitel to deliver laptops with internet capabilities to Nigerians at affordable prices stated that the partnership is a nationwide scheme set up exclusively for Reitel . The deal according to him, will present Zinox Laptops with USB internet connectivity to Nigerians at the cheapest rate in the sector. The partnership which comes with a free internet training scheme which allows those who purchase the laptops to get free training from any training institution of their choice free he stated will enable Nigerians to acquire skills and get the best from their laptops. (Source: This Day) Ansys makes another buy in South AfricaAltX-listed railway and defence IT company Ansys has made another buy, the fourth in less than a year. The company advised shareholders that it entered into a heads of agreement with Airport interface Technologies (AiT) to buy all its assets and liabilities. The value of the transaction was not disclosed. AiT is a Sub-Saharan value-added reseller and system integrator focusing on the supply, installation, commissioning, flight calibration and long-term support of products within the communications, navigation, surveillance and air traffic management sector. Ansys has a long track record in the design and integration of monitoring and control systems for the transport, aviation and defence sectors, it says. CEO Allan Holloway says the transaction will expand the capabilities of Ansys in the aviation sector. The company was part of the SA Air Force's Rooivalk attack helicopter programme. Its subsidiary Optocon last month won a R20 million contract to supply optronics to Turkey to be fitted to that country's fleet of new Agusta AW129 Mangusta attack helicopters. Ansys acquired Optocon in January for R14.5 million. It bought the entire issued share capital of Quadsoft – a company that develops locomotive in-cab communications – for R16.75 million later that same month. It purchased Emerging Signals, a Transnet Freight Rail-approved railway signalling company, for R15 million in November. Ansys raised R30 million on listing in June last year, which it said it would use to fund acquisitions. (Source: ITWeb) In brief:- Burkina Faso’ Government has announced that it will sell a further 20% of its stake in privatised national incumbent Onatel during the course of 2008. Last year Maroc Telecom acquired a 51% share of the company (fixed and mobile operations) for a total value of 220 millions Euros. - Business Day, Nigerian daily newspaper, reports that Starcomms is seeking to raise NGN30.4 billion (USD260 million) via private placement. The operator hopes that by selling an as yet unspecified stake it will generate enough cash to expand its network coverage from the current eleven cities to 31 by the end of 2008, as well as increasing capacity in locations already covered. - South Africa's Competition Tribunal has given the Saudi Telecom Company (STC), Oger Telecom deal its blessing. The deal, which was heard by the authority earlier this month, sees STC acquire joint control of Oger Telecom for a net price of US$2.56 billion. As Oger Telecom has a stake in local cellular operator Cell C, the transaction had to be approved by local authorities.
Turning your cellphone into a remote controlIt is this year's science time again, and the universities and technical institutions have pitched tent at Kenyatta International Conference Centre to showcase their innovations. When the Nation team visited the venue, nothing seemed remarkable about a small stall operated by the Mombasa Polytechnic students until the invincibility of determination that built the simple technologies on display was uncovered. One of the two inventions was particularly interesting. Having observed people's obsession with mobile phones over the years, Stanley Otieno Oyugi, 24, an electronic engineering student, says he was determined to make the gadget even a better companion to man. "I began to ask myself, now that mobile phones are part our lives, can it also represent us when we are away attending to other businesses?" By the time he reached high school, his prowess in electronics was already visible. His physics teacher would confiscate all pocket radios smuggled to school and destroy them using a hammer. To his great advantage, the teacher would grant immunity to anyone who was able to pick up the pieces and repair the radio, something Oyugi relished. So by the time mobile phones took the country by storm, Oyugi was old enough and a master of simple circuits. He struggled with technologies until he got a breakthrough. "The technology is very simple. A mobile phone (receiver) which is connected to the circuit translates the calls, SMSs or beeps into on or off commands. So when the technology is connected to the TV cable, the TV set is turned on or off according to command relayed by the circuit." He said. He has also tried the system successfully at home to switch security lights on and off. At the Nation Science and Technology Conference, Mr Oyugi was showcasing how a farmer can rely on the simple technique to feed his animals in case he is busy elsewhere, even out of the country. Each time the receiver mobile phone rings or beeps, animal feed begins to flow out from the funnel attached to the feeds store. Another call or beep automatically stops the system from releasing the food. The farmer only needs to determine the rate at which the funnel discharges feed to ensure that the animals are not underfed. Mr Oyugi says the system can be used anywhere in the country as long as there is a mobile phone network. Besides electricity, the circuit system can use battery and solar power. (Source: The Nation) MTN Nigeria Partners with DSTV for TV On the GoNigeria's leading mobile provider, MTN and Multichoice Nigeria recently took telecommunications partnerships to new heights with the launch of Mobile Television on the MTN network. With the launch, MTN becomes the first cellular network to offer its subscribers an opportunity to watch television, while on the move, from their mobile devices. According to Bola Akingbade, MTN's Chief Marketing Officer, who stood in for the company's Chief Executive Officer, Ahmad Farouche, "MTN is again taking the driver's seat in making mobile television available to our customers as a practical demonstration of its consistent commitment to enabling customers optimize value on the MTN network." Now, he said, MTN customers will no longer be limited by time and place in order to access quality entertainment on television. "Mobile Television from MTN is yet another manifestation of our commitment to delivering added value to customers everywhere they go". MTN customers, he said, can enjoy the most widespread coverage in the country, the best tariffs and in addition, leading edge services. Commenting, Collins Khumalo, Managing Director of Multichoice Nigeria expressed delight at the opportunity to partner with Nigeria's leading telecommunications company. A bouquet of 10 channels spanning movies including the immensely popular Africa Magic channel, news, sports and children's programs (cartoons) will be available on the mobile phones of customers who choose to subscribe to the new Mobile TV service on the MTN network, tagged 'DSTV from MTN'. The new Mobile TV service, which is a first in Nigeria, is currently only available in Lagos and Abuja, but will add other Nigeria locations in due course. MTN, said Akingbade, has been able to launch Mobile Television on account of the increasingly sophisticated technology which it is deploying. Last year, the company paid $150 million for a third generation mobile licence. (Source: This Day)
People* Kenyan Internet consultant, Michuki Mwangi, has been appointed as Senior Education Manager at the Internet Society. - MWeb Nigeria announced recently that it has appointed Paul Ezenwa, MD/CEO Paulsco Electronics Communications Ltd, Owerri to join it's team of dealers across the Federation. Events* 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 * FORUM ON TELECOMMUNICATIONS/ICT PARTNERSHIP IN AFRICA 4-6 June 2008, Dakar, Senegal After consultation with the Steering Committee of the African Telecommunications Regulators' Network, it proved more efficient to combine the Public and Private Sector Partnership Forums (PPPF) and the Forum on Telecommunication Regulation in Africa (FTRA) into a single forum referred to as the Forum on Telecom/ICT Regulation and Partnership in Africa (FTRA), which will be held for three days. For further information visit http://www.itu.int/ITU-D/AFR * 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* Core Project Manager – Western Africa The clien is requesting the services of a Core Project Manager to work in desirable location. It is imperative that the candidate has a strong background working directly for Ericsson or alternatively at an Ericsson based operator. You will be responsible for migrating the Customer's 2G Monolithic, 2G MSS and 3G MSS Core Networks towards One MSS Dual Access Core Network. As Project Manager you will be responsible for cost, quality, and time. This is a highly visible and pro-active role requiring inter-personal skills. It will demand constant interaction with Account Teams and the end customer, in order to understand the operator’s business issues, and to be able to find opportunities for evolving our solutions, thereby creating new business. It also demands good networking capabilities. This role is likely to be suited to experienced project manager with demonstrable Communication and Consultative skills. For further information contact advertising@balancingact-africa.com Contracts* MTN and Motorola - Nigeria Motorola has disclosed that it has won an MTN Nigeria network optimisation service contract. The value of the contract has not bee disclosed but the reason behind the contract was for Motorola to assist MTN Nigeria to improve the performance of its network in the country.
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