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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 408 Mi-Fone seeks to increase handset roll-out with sub-US$17 handset aimed at rural areasAlternative handset manufacturer Mi-Fone has set out to produce low-cost handsets that will enable operators to keep pushing out to a wider range of low-earning users. It is offering everything from a sub US$17 handset without a screen to a US$35 phone with a camera, FM radio and colour screen. Mi-Fone might just be one more unbranded wannabe but its founder Alpesh Patel used to be a senior sales manager for Motorola and knows the territory. Russell Southwood spoke to Alpesh Patel about how he’s trying to break into the market. Mi-Fone has received trial orders from a range of operators including Celtel Nigeria, Tigo Ghana, Cellcom and Orange Madagascar. Celtel Nigeria has approved the handsets for sale. For Alpesh Patel, this is the beginning of a much larger roll-out:”30% of the operators we’ve contacted have said everything is cool and that they will go ahead and list the phone. If that works out, then we will begin to open doors across the other countries in the major networks.” In its first month of operations in April 2008 it received orders for 15,000 units and it is developing a network of dealers in key country markets. It now has several countries with dealerships: Uganda (Cell to Cell), Mauritius (Mauritel, who are also investors in the company); Kenya (Phones Express), Ghana (Melcom Group) and South Africa (XP). The screenless sub US$17 handset came from operator demand for lower price handsets and will be available in July. It seems strange not to have a screen and is hard remembering that this is actually how phones started life. It is voice activated and does not offer SMS and aimed at the very young and the old in rural areas who may lack both the money and the functional literacy to operate a fully featured phone. The target group also includes the elderly with poor eyesight. Mi-Fone also believes that they will probably do best in new roll-out areas where people are unfamiliar with existing phones. Patel admits:”People are baffled by it. They don’t get the idea of a cellphone without a screen. We don’t see millions selling but operators were asking for it so we cut down on all the features.” However, if they are subsidised by the operator, these phones could sell for as little as US$4-5 to users. The rest of the company’s range which is manufactured in China varies in price between US$20-40. Although it has stripped down on a number of features, this approach has allowed it to extend battery life. Its Mi 220F has a VGA camera, FM radio and a colour screen and costs only US$35. This is the other part of the company’s strategy which is to aim its handsets at the young and to provide sufficient design and features at a price to capture their attention. Patel believes university students in particular will be attracted by a low-cost featured phone. He believes passionately that the mobile phone is Africa‘s future and has plans to produce a mobile phone that will offer easy Internet access again at a low-cost. It’s a fine line separating branded and generic handsets. The branded handsets like Nokia, Motorola, Samsung, Apple and others have all spent millions of dollars in creating the intangibles of the dream. The happy white smiling faces that peer down from the billboards of Africa advertising Nokia speak of aspiration. You may not yet have the wealth or style but your handset is a visible advert for who you want to be as an African. But for all their much-vaunted mindspace, the large handset manufacturers are vulnerable in emerging markets like Africa. The large spend on research and development and the developed country overheads make it harder for them to operate with sufficient margins at the bottom of the price range. Therefore this may just (and only just) allow a very small gap through which a canny branded generic handset seller might emerge. Meanwhile at the complete opposite end of the handset price range, Orange said it had agreed a deal with Apple to sell iPhones into its African markets. These include: Guinea, Guinea Bissau, Equatorial Guinea, Senegal, Ivory Coast, Niger, Mali, Kenya, Cameroon, Madagascar, Botswana and the Central African Republic. As noted in previous issues, the iPhone has begun to appear in small numbers in a wide range of countries already. Now whether or not the iPhone sells in any number in Africa, the insights of its screen interface offer lessons in how to produce a handset that can lay some claim to being easy to use for Internet access. The number of data customers in Africa is beginning to take off and those users will almost certainly want a phone that does not rely on having thin fingers and thumbs.
Vodafone Offers R19bn for Stake in South Africa’s VodacomThe shake-up in SA's telecoms sector intensified last, with the UK’s Vodafone offering Telkom R18.75bn for a 12.5% stake in Vodacom. The offer follows local black investment house Mvelaphanda saying it wanted to pick up Telkom's fixed-line operations for R90bn. Before that it was MTN and Oger….With this kind of bid traffic, it’s amazing that anyone in Telkom’s senior management team find time to actually run the company. The transactions could see Vodacom being unshackled from parent company Telkom and listed as a separate entity through interlinked bids worth R108bn to sever Telkom's fixed-line assets from its cellular operations. The flurry of activity around Telkom signals further consolidation in SA's telecoms sector after sub-Saharan Africa's biggest mobile phone operator, MTN, said last week it was in talks with India's Reliance Communications over a transaction to create a $66bn emerging markets telecoms group. The government owns 38% of Telkom and the Public Investment Corporation holds 15%. Last week, the Communications Department said it had noted the cautionary from Telkom and awaited details. In October, the department said it "supported in principle" discussions taking place for Telkom to sell some of its assets to MTN. But Communications Minister Ivy Matsepe-Casaburri did not clarify if the government also endorsed a related plan to sell more Vodacom shares to Vodafone, and the potential deals collapsed before the minister was forced to take a stance. Vodafone has long wanted to raise its 50% stake in Vodacom and oust Telkom as the joint owner so it can control the cellular operator's future. It proposes to buy 12,5% from Telkom on condition that Telkom relinquishes the remaining 37,5% by unbundling those shares to Telkom's shareholders. Vodafone does not want to buy 100% of Vodacom as it would quickly have to resell part of the South African operations to black investors in an empowerment deal that would probably happen at a discount. A consortium led by Mvelaphanda has offered a reported R90bn for Telkom's other assets, in a deal that is dependent on Telkom agreeing to shed its stake in Vodacom. Telkom describes the bids as "independent", though they are clearly linked. " I think the Vodafone thing is happening," said one internal source. "Telkom has to do something and the only thing it can do is sell Vodacom to Vodafone, then someone else buys what's left." (Source: Business Day) New Telephone Rates in Cameroon but Status Quo For 'Call Boxes'Since June 1, telephone users in Cameroon have benefitted from a 20 percent drop in call tariffs. The measures follow negotiations between the Telecommunications Regulatory Board and the three telephone operators in the country: Camtel, MTN and Orange Cameroon. Although the 20 percent cut was expected to bring smiles in the faces of telephone users, this however has not been the case. Owners of privately run "call box" facilities have not benefitted from the new price rates. Also, people complain that telephone calls are cheaper at night when most people are already asleep and make fewer calls. This notwithstanding, call box businesses continue operating. Yvette N. who owns a call box in town told Cameroon Tribune that the reduction of telephone rates benefits only people with ordinary sim cards:”Nothing has changed for those of us with business SIM cards," she explained. She went on that the business SIM card from MTN and orange is FCFA 10,000 and the prices have not changed with the reduction in tariffs. As a result the call rates still stand at FCFA 100 per minute. "We don't gain anything from the calls. We only gain from the bonus and the transfer of credits," she said. She regretted the fact that since the 20 per cent reduction, their customers have reduced considerably. "The problem we have now is that many people now prefer the transfer or refill cards because it is cheaper to use their phones to call," she said. Another Call box owner, Atangana, said they were not informed of the new rates. He explained that Orange sent a message recently informing them of the rates for private lines but for the business lines they have not yet received any message from the telephone companies. The mobile telephone company has introduced night and super night tariffs valid from 10:00 p.m. to 5:00 p.m. (Source: Cameroon Tribune) Court Clears Celtel Kenya to Stop Contract With DistributorThe High Court has given Celtel Kenya Limited the go-ahead to cease business transactions with its appointed dealer, Airtime Business Solutions. It will no longer market or distribute Celtel products or represent the mobile phone service. The case throws a little light on Kenya’s struggling second mobile operator as it seeks to increase its sales. High Court Judge, Justice Luka Kimaru, ruling in a civil suit filed by Airtime Business Solutions at Milimani Commercial Court, reiterated that courts cannot force parties, no longer willing to work together, to remain in such a relationship. "Celtel no longer wishes to deal with Airtime Business Solutions. Therefore, the latter cannot seek orders of this court to force them to conduct business together," said Justice Kimaru. Airtime Business Solutions, owned by Nasser Ahmed, had moved to court seeking an injunction to restrain Celtel from abruptly terminating a dealership agreement without prior notice. Airtime Business Solutions also wanted the court to enter a judgment for Sh119.2 million for payments they claimed Celtel owed them. Further, Airtime Business Solutions had sought orders restraining Celtel from interfering with the ownership or operation of their outlets, shops, containers and recalling bank guarantees. Before their dealership was terminated, Airtime was an authorised distributor and marketer of Celtel products in Malindi, Taveta and Voi, Eastleigh Estate in Nairobi, Westlands and Hilton Arcade. Ahmed, in a sworn affidavit, said his company had entered into an agreement with Celtel to distribute their products after giving a bank guarantee of Sh20 million and subsequently renting containers for Sh2 million. However, in a counter claim, Celtel said Airtime owed them Sh21.9 million for goods and credit advanced to them. Celtel's legal officer, Jocelyn Muthoka, had told the court that Airtime agreement was terminated after failing to put in stock sufficient merchandise of Celtel products, thus inconveniencing their customers. Muthoka further said Airtime had failed to meet the monthly targets in the regions it was assigned and, therefore, invoking the clause in the agreement which called for automatic termination of the agreement. In one of the letters to Airtime Business Solutions tabled in court, Celtel had complained of the company's failure to deliver monthly targets, thereby denying them business revenue due to stock-outs. "Our customers have also been greatly inconvenienced by your poor market service and this contravenes our distribution contract, which states that you shall be responsible for product availability in your assigned markets," said part of the letter. In his ruling, Justice Kimaru said under the distributorship agreement, either party was at liberty to terminate the contract in the event of breach of terms and conditions. The judge said there was no period specified in the agreement that would entitle either party to six months or one year notice before termination. "I agree with Celtel that a distributorship agreement is akin to a licence which once withdrawn cannot form a basis for enforcement of terms beyond the said licence," noted Justice Kimaru. However, Justice Kimaru said Airtime remedy was pegged on damages "if it is of the view that it was aggrieved by Celtel's decision to terminate the contract." Ahmed had earlier told the court that he had invested heavily in the understanding that he was headed for a long-term business relationship with Celtel. He also claimed to have been one of the best performing distributors of Celtel and was entitled to be paid incentives and bonuses that had been put in place by the mobile phone company. Ahmed further maintained the termination was entirely without provocation or legal justification and was in total breach of the contract. (Source: Business Daily) Algeria Cuts Off Millions of Unregistered SIM CardsAlgeria's mobile operators were ordered to shut down over three million SIM cards at the weekend following a deadline for the users to register their identity with the network operators. A security official told the Reuters news agency that several recent bombings had been traced to detonations by mobile phones using unregistered SIM cards. Algeria's telecoms regulator, the Algerian Post and Telecommunications Regulatory Authority (ARPT) had ordered the clamp-down on the sale of mobile phone connections without proof of identity. Although official outlets still require ID, there has been a growing grey market where SIM cards are sold by street vendors and tobacconists who were more relaxed about complying with the regulations. The deadline for all SIM cards to be registered was the end of April, but it had been extended to the end of last month at the request of the operators. It had been reported that a raid by Algeria's security services of a terrorist camp had found a cache of hundreds of unregistered SIM cards waiting to be used. (Source: Cellular News) In brief:- A year after it won a licence, Nigerian mobile operator Globacom has launched its GSM services in the Republic of Benin. The mobile operator is rolling out simultaneously across the West African country, covering its major cities including Cotonou, Porto Novo, Abomey and Parakou. At that time when the licence was granted, Globacom assured the Benin Government that it would be rolling out services in 60 days and help end the chaos created by the shutdown of the existing mobile networks following a disagreement about retroactive licence fees. - Celtel Malawi, a subsidiary of Kuwaiti Zain Group, says it plans to invest USD90 million in its financial year 2008/09 to improve its network and extend coverage to all parts of the country. The operator also hopes to use part of the monies set aside to enable it to reduce the cost of its handsets. The decision to cut mobile phone costs is a result of the government’s recent initiative to implement new tax measures, it said. In the 2008/2009 national budget presentation, the government announced it was scrapping a 25% customs duty and excise on imported handsets, but introducing in its place a 10% domestic excise tax on airtime. - Nigeria’s National Union of Postal and Telecommunications Employees (NUPTE) has called on the Federal Government to take over the management of Nitel on the basis that Transcorp has shown itself incapable of managing the company. Telecoms, Rates, Offers and Coverage- Mixed reactions have greeted Safaricom's 9pm-6am free calls offer in Kenya with subscribers complaining their calls are not going through after 9pm. Safaricom CEO, Michael Joseph, said in a statement "We advise our subscribers to stagger their calls within the nine hours (9pm - 6am) of the free talk time allocated. These measures will ease the overload and allow our subscribers to enjoy the promotion”. - Vodacom Tanzania has introduced its 3G service in Arusha after an initial launch in Dar es Salaam and Dodoma. - In a renewed drive aimed at market leadership in the Nigerian telecom market space, Reltelwireless, one of Nigeria's telecommunications solutions provider has announced about 50 percent price reductions plus a week free Internet subscription on its premium products, HTC - Touch, HTC - Mogul, Motorola Q and Treo 700P as it promises lower international call rates to subscribers. - Local newspaper the Zimbabwean reports that mobile tariffs have gone up by more than 1,500%. Reflecting the rampant inflation being suffered by the beleaguered country, NetOne subscribers will now have to part with ZWD58 million per minute for a call to other NetOne users during peak periods – a significant sum to locals but just a tenth of a dollar in US dollar terms – while calls to customers on the Econet and Telecel networks will be charged at ZWD60 million per minute and ZWD72 million per minute respectively. Telecel has also reviewed its tariffs, and calls to users on its own network are now ZWD50 million, while to customers on other networks the figure is ZWD63 million. - Cote d’Ivoire cellular operator Moov has launched the country’s first national mobile network after teaming up with satellite phone operator Thuraya. The Moovsatellite service will offer mobile coverage in areas which are not currently served by Moov’s own GSM network. - In Kenya local loop operator, Flashcom, has introduced the lowest network rates yet. Making calls to Telkom wireless or land line using Flashcom is now Sh5, Sh0.50 cheaper than Telkom wireless, which charges Sh5.50 for the intra network calls. The flat rate tariff of Sh40 per day will allow its subscribers to make unlimited intra network calls and Sh10 per minute for cross network calls.
Pan-Africa ISP MWEB is up for AuctionOnly nine months after pan-African ISP MWEB bought Afsat and heralded this as the first of several acquisitions, Naspers has put the company up for auction, and a deal might be concluded within nine months. In strategic terms, Naspers is saying publicly that it is getting out of the ISP business. Khulekani Dlamini, media analyst for Renaissance Specialist Fund Management, said the market liked the sale news as it meant a possible realisation of value for Naspers shareholders. He said MWEB had turnover of nearly R1bn a year, and the sale was unlikely to affect Naspers’ prospects much. MWEB CEO Rudi Jansen said transition to a new majority shareholder was "always difficult", but a shareholder with a telecoms network that could also help drive MWEB's existing businesses in 26 other African countries would bring significant new opportunities. Potential bidders had been identified. "We've started contacting them. There's been lots of interest." The aim was to sell MWEB on a "tight schedule", possibly in three to nine months, depending on Competition Board approval, Jansen said. The announcement followed several approaches for MWEB's sale, Naspers said . Jansen said MWEB was making profits and had more than 320,000 dial-up and broadband customers in the home and business market, 5000 corporate customers in South Africa and 24,000 corporate customers in Africa. Its market share in South Africa was more than 25%. Although MWEB’s South African operation has borne fruit in terms of profits after considerable investment, its pan-African operations (particularly Nigeria) have made very slow progress. Over the years, it was one of the on-off potential buyers of the other pan-African ISP Africa Online that was landed by Telkom South Africa. Africa Online is still loss-making and although MWEB’s subscriber base is larger, it is hard to imagine that the pan-African element of the business makes a substantial contribution to Naspers’ bottom line. MWEB was on the verge of investing in a wireless digital broadband network roll-out to exploit its market leadership position in the rapidly growing broadband market. "This strategy, focusing on connectivity, diverges from Naspers's core focus of online content platforms, communities and commerce," Naspers said. The group's core focus is now on online content, communities and commerce. This includes investments in Tradus, the leading e-commerce platform in eastern Europe, Tencent in China, Mail.ru in Russia and Gadu-Gadu in Poland. Ibibo in India, Sanook in Thailand and 24.com and Mxit in SA continue to grow their communities. (Source: Business Day) Google puts South Africa on cyber mapThis week will be a big one in South Africa’s cyber life: a South Africa layer is to be added to the core software of the global satellite tool Google Earth. An offshoot of the giant Internet search engine company Google, Google Earth allows users to navigate 3D images of cities and geographical areas. The more advanced models, which map the US and UK, provide 3D street view images, regular traffic reports and weather notifications. The South Africa layer, which was designed by South Africa and London- based Quirk eMarketing in partnership with South African Tourism, has been designed with international tourists in mind. Quirk eMarketing chief executive Rob Stokes says: “It’s my hope that it will bring more people to South Africa or at the very least get more people talking about South Africa.” According to Stokes, the South Africa layer contains more specific information regarding the 2010 Fifa World Cup. The 2010 sub-layer includes plans for new developments and there are even pictures of the stadiums currently under construction. “It gives a sense of where the stadiums are in relation to where people will be staying as well as nearby attractions,” says Stokes. The layer enables users to search information on 120 place marks around the country logged under specific categories such as urban vibes, culture and heritage and self-drive routes. Stokes says it is a coup to have the South Africa layer incorporated into Google, which will have a potential audience of 300-million users across the world. Go to http://earth.southafrica.net/ to check it out. A Google Kenya map will be launched soon. (Source: The Times) Icasa probes broadband over power linesThe Independent Communications Authority of South Africa (Icasa) has announced it will hold public hearings on the draft regulations governing the technical standards for power line telecommunications(PLT). The draft was published on 7 February 2008. There has been a long debate regarding spectrum interference of PLT, and this is likely to be highlighted at the hearings scheduled for 18 and 19 June 2008. South African Radio League member, Hans van de Groenendaal, recently questioned the suitability of PLT for large scale deployment, saying that there was little or no proof of any successful, large scale, broadband over power line deployments. Van de Groenendaal also said that a recent test carried out by the South African Bureau of Standards, under the auspices of Icasa, at a site in Rooiwal showed significant interference on a wide range of HF frequencies. Van de Groenendaal however said that while PLT’s future as a last-mile access medium seems doubtful, there was some potential as an internal broadband distribution medium – typically within high-rise buildings. The hearings will take place at the Icasa offices in Sandton. Telkom, the South African Radio League, Hamnet SA, Motorola, SANDF, Eskom and SANSA are expected to make oral presentations at the hearings. The Icasa panel will consist of Councilor Mthobeli Zokwe, Praneel Ruplal, Eric Winter and Eric Nkopodi. (Source: MyBroadband) In brief:- According to its MD, Engr. Ahmed Rufai, Nigerian Communications Satellite (NIGCOMSAT) is gradually fulfilling its mandate and it has so far implemented 78 community telecommunications centres across the country. NIGCOMSAT is a hybrid and high powered, quad –band geostationary satellite, located at 42.5E and has a life span of at least 15years, while the communications payload contains 40 transponders covering KU-band, C-band and L-band. - Communications minister Ivy Matsepe-Casaburri recently announced that the African West Coast Cable, which is run by Infraco and will connect South Africa to Europe, will be ready in May 2010 in time for the World Cup. - In Egypt, Abdel Kareem Nabil Suleiman, a blogger better known as Kareem Amer, has been getting hundreds of letters in prison from Internet users all over the world as a result of a "Flood the Jail with Mail" campaign (http://www.freekareem.org/2008/03/19/flood-the-jail-with-mail/) launched jointly by the Free Kareem Support Committee (http://www.freekareem.org/) and the Committee to Protect Bloggers (http://www.committeetoprotectbloggers.org). - Angola Telecom is investing in the Internet sector. According to Manuel César, Head of Communications at the national incumbent, Angola Telecom will launch soon 70,416 new lines on its Luanda metropolitan ring. There will be 40,824 normal lines, 11,925 DSL lines and 17,649 SDSL lines
Nigeria’s Federal Government Shelves One Laptop Per Child SchemeThe Federal Government has cancelled the proposed "one laptop per child" scheme initiated by the last administration. The scheme was aimed at providing affordable laptop computers to school children to promote the development of Information and Communication Technology (ICT). Dr Aja Nwachukwu, the Education Minister, told newsmen in Abuja that the scheme was discovered to be a "white elephant" project. "We discovered that the scheme is a conduit pipe to siphon public funds," he said. Nwachukwu said the ministry was working on other options to promote the deployment of ICT at all levels of education. "We are promoting the deployment of ICT based on a top-down approach for human capital and hardware development," he said. The minister said VSAT equipment had been installed in the 72 unity colleges, while laptop computers were supplied to zonal offices of the ministry. (Source: Vanguard) ICT Part of School Curriculum Soon in Sierra LeoneMinister of education, youths and sports last Thursday disclosed his ministry's plan to include ICT as part of school curriculum. Speaking at the launch of the fixed Internet learning centre which was set up by Knowledge Aid Sierra Leone (KASL) Dr. Minkailu Bah said ICT was the way forward for education and development in the country. He said his ministry cannot allow school children to be left behind, adding that as a responsible government it was ready to take up the challenge. "Government is highly interested in programmes of this nature. We have provided funds to promote and sustain such programmes," he revealed. He said plans are already underway to extend the operations of fixed internet learning centres to the east and central school communities while Government was also thinking of establishing a mobile Internet learning centre for students. Dr. Bah encouraged the organization to work with other organizations that have the same initiative so that they can achieve their goals. (Source: Concord Times) Ubuntu announces lightweight version for netbook computersLast week Ubuntu announced a lightweight version of its Linux operating system built for the new wave of ultra-portable "netbook" computers. Called Remix, the customised version of Ubuntu is built to be compatible with the low-power Atom processor from Intel, a miniaturised processor built for smaller notebook chassis. Asus, for example, will use the Intel Atom processor in its upcoming EEE PCs. Remix is based on the standard Ubuntu Desktop Edition but with a launcher that allows users to get on-line more quickly and have faster access to their favourite applications. Netbooks are a new generation of notebooks that are not as full-featured as traditional PCs but give users quick access to the Internet and email while on the road. Canonical, Ubuntu sponsor, says that it is working with Intel as well as other hardware manufacturers to certify Remix for these new platforms. Remix will not be available for download as with the standard Ubuntu desktop but will be made available directly to netbook makers. (Source: MyBroadband) In brief:- As part of the Intel World Ahead Programme, the company announced its collaboration with the Ministry of Education, Science and Sports (MOESS) and the Ministry of Communication (MOC) for the Ghanaian launch of its localised digital education content platform – www.skoool.com.gh. The interactive teaching platform provides advanced learning and teaching technologies to students and educators alike. - Makerere university in Uganda is one of the three universities in Africa that have scooped a grant given by HP to teach mobile computing courses. Each of the faculties of ICT in the three universities will receive $100,000 (about sh170.1m). The other universities are University of the Free State in South Africa and Jos-Jos University in Nigeria. - Plans are ongoing to install the first government-owned school computer centre powered by solar energy in Sierra Leone. Estimated total capital cost of the project is between $60,000 and $70,000. They also plan to extend Wi-Fi capability so that students and teachers who already have their own laptops can access the Internet without going to the computer centre. - Tunisian Higher education, scientific research and technology minister Lazhar Bououni received a delegation from Microsoft led by Mr. Ali Faramaoui, Microsoft executive vice-president for Middle East and North Africa.The talks examined means to boost co-operation relations and partnership in the scientific research field between Tunisia and Microsoft. - Researchers at the Meraka Institute have released a spelling game in all 11 official South African languages. The game, OpenSpell, can also be localised for additional languages. Open Spell will soon be available on rural kiosks throughout South Africa thanks to the Digital Doorway project. - South Africa’s KnowledgeTree document management team signs deal with US-based BitRock to manage subscription services. Using BitRock’s network services, KnowledgeTree users will be able to keep their existing installations up to date with ease. - South Korea's Eximbank will fund in Angola the construction of a higher institute of information technology applied in industries, a project which is estimated will cost USD 50 million.
Vodacom South Africa Faces Court Move From BEE LoserA black consortium that failed to survive the first round of short-listing for part of Vodacom's R7.5bn empowerment deal is taking the cellular operator to court in a bid to halt the process. The Tiger consortium will seek an urgent interdict in the high court on Friday, with Vodacom preparing to defend the action so its long-awaited transformation can continue. Vodacom spokeswoman Dot Field said the company would defend the action, but she did not clarify the nature of Tiger's objection or Vodacom's defence. Tiger apparently includes attorney Mafika Sihlali, a former legal head of the SABC who left the company last year after an audit highlighted irregular spending of R1,8m. It also includes Lester Peteni, chairman of Nulane Investments, which holds 31% in Huawei Technologies SA. Other members include thousands of entrepreneurs who run Vodacom's community service telephones, its Vodashop and Vodacom4U franchises. It also represents some of the black staff. Nobody from Tiger could be reached last week, but spokesman Jacobus van Schalkwyk has previously said its members felt they had been overlooked in the selection process and had voted to take the fight up a gear. Tiger was among 60 bidders for shares allocated to strategic partners who could add value to the business. The strategic partners will take 45% of the empowerment shares, Vodacom's staff will take 25%, and 30% will be sold to black citizens and black business partners. Tiger failed to impress the adjudicators, and was quickly eliminated. "They didn't even make it through the first round, and I have no idea what game they are playing," a source said. Vodacom named Thebe Investment and Royal Bafokeng as empowerment partners. The Communication Workers Union (CWU) is not involved with Tiger, though a few of its members belong to both organisations. The CWU was also unhappy with parts of the empowerment process, said its president, Joe Chauke. The union objected to Vodacom suspending two employees who are in Tiger because they were involved in the legal action against the company. Its other gripes include the fact that staff must be with Vodacom for at least seven years to receive any shares, and that a minimum investment of R2500 is required for any citizen buying its shares. A member of another failed bidding consortium said Tiger had originally asked to be part of his group. His members would have happily worked with the entrepreneurs who ran cellphone booths, he said, but did not want to work with some of Tiger's more prominent members. He said Tiger bore a grudge partly because all staff would receive shares set aside for employees, while Tiger thought only blacks should benefit. "Their core issue is whether empowerment should benefit all employees or just black employees. The bottom line is they have absolutely nothing to lose," he said. (Source: Business Day) Celtel Zambia shares set to trade next weekShares of Celtel Zambia, which recently had Zambia's biggest IPO are set to start trading next week. The IPO for Celtel Zambia, the country's largest mobile phone operator, closed on May 20, and officials say it was oversubscribed. The market flotation will come on the heels of a similar move by Safaricom in Kenya, whose IPO was also oversubscribed, and which will launch shares on the market June 9. Twenty percent of Celtel Zambia was offered to the public and investors through appointed agents. The price for shares was 640 kwacha (US$0.19). The stock will start trading June 11 on the LuSE (Lusaka Stock Exchange). Because there was more demand than allocated shares, allotment letters and refunds will issued by Pangaea Renaissance Securities, the joint lead manager and sponsoring broker, on or around June 10. "The selling shareholder will provide preference in the allotment process to the Zambian Public and Zambian institutional investors," said Pangaea Director Ceaser Siwale. But Siwale also noted that the selling shareholder reserves the right to accept applications, either in whole or in part, or to accept some applications in full and other in part, or reject or all applications in such manner as it may determine. Celtel Zambia is part of the Kuwait-owned Zain Group. The primary idea for the IPO was to afford the Zambian public, Celtel Zambia employees and selected financial institutions the opportunity to participate directly in the growth of Celtel Zambia, according to Siwale. Also, there has been a need to enhance the public image, profile, investor and general awareness of Celtel Zambia and to encourage wider ownership of Celtel Zambia shares in general to support the development of the Zambian capital market, Siwale said. (Source: IDG News Service) Mobitelea Probe Hits Brick Wall in KenyaHopes of tracing the true owners of Mobitelea were dashed when the British Government said the case was too difficult to investigate. The British admitted that investigations into dealings between Vodafone UK and Mobitelea, a shadowy firm with a stake in Safaricom Kenya, had hit a brick wall. The Nairobi gossip mill credits ownership of the shares to a Kenyan politician. The Serious Fraud Office (SFO), which tried to carry out an investigation, said hopes of unearthing any dealings between Vodafone UK and Mobitelea were remote. The office also said that it would be a waste of resources to allocate funds for such a mission. SFO press and publicity officer Jina Roe told the Nation: "In light of the age of the allegations and the surrounding circumstances, the case would inevitably entail a lengthy investigation whose prospects of success are uncertain." Ms Roe spoke just days after it was revealed that Mobitelea Ventures will pocket about Sh100 million after Safaricom's sterling performance for the year ending March 31, this year. She said that the SFO had examined the matter and visited Kenya where its officers met members of the Public Investments Committee, which was at the time investigating the ownership of Safaricom. And the SFO director at the time, Robert Wardle, who had the task of allocating resources, decided two months ago against the inquiry. "The director (at that time, Robert Wardle) had the task of allocating resources, taking into account the prospects of success against the demands on resources. It is with some difficulty that he decided that the SFO will not adopt this enquiry for investigation," she said. Roe said the SFO was alerted of the suspected shady dealings between Vodafone and Mobitelea in January 2007 by the Sustainable Development and Business Group of the Foreign and Commonwealth Office. Mobitelea, which holds a 12.5 per cent stake in Vodafone Kenya, owns five per cent of Safaricom through its Vodafone Kenya stake. Mobitelea, registered in Guernsey on June 18, 1999, according to Vodafone, was allowed to invest in Safaricom because of its valued advice. Mobitelea's owners are hidden behind two nominee firms, Guernsey-registered Mercator Nominees Ltd and Mercator Trustees Ltd. The directors are named as Anson Ltd and Cabot Ltd, based in Anguilla and Antigua. (Source: The Nation) Middle East investment firm Opens an Office in JohannesburgOne of the largest telecoms advisory and investment firm in the Middle East has opened an office in Johannesburg as the first step in its planned African expansion. Delta Partners said the increased acquisitive interest that foreign operators were taking in African network operators was a signal of further consolidation in the market in the near future. That should create plenty of business for an advisory firm based in the region, the company believes. The firm is also assessing whether it should create an $80m equity fund to support telecoms operators looking to expand in sub-Saharan African and needing the cash and industry expertise to help them do so. That would be set up within a year if the company decides to go ahead. The South African office will be run by Delta's managing partner, Kristoff Puelinckx, and will initially house about 10 staff, which could double within a year. (Source: Business Day) In brief:- Rumours are out that MTN has purchased Verizon Business for R1.4 billion, beating Altech in a bid for the Internet service provider (ISP). The deal is expected to be officially announced next week. - Egypt's CMA approved Orascom Telecom’s buyback of 12 million of its shares.
Woolworths Uses Web to Educate Consumers in South AfricaWoolworths Financial Services has recently started using Internet broadcasting, or podcasting, as a way to help customers make their money stretch in the environment of rising prices and interest rates. It is one of the first local retailers to use Internet broadcasting in this way. " This is only the beginning of a revolution in how corporates provide quality content that, at the same time, enhances their brand," said behavioural change expert Dr Harry Dugmore this week. Dugmore wrote and produced the podcast. Making Friends With Money is a free online series on the www.woolworths.co.za website which consists of eight, 10-minute episodes dealing with conquering the fear of money, ways to save, avoiding debt and effective ways of getting out of it. Dugmore has written other financial education series, but this was the first time he had used this medium. "This has been a very interesting project. My motivation is to get the message out there that financial health is possible whatever your salary. Podcasting has given me a new way of doing that." Woolworths Financial Services head Sam Ngumeni said: "We know our customers are struggling to make ends meet. The Woolworths brand is about making the difference and the new media space seemed a way of doing that. " (Source: Business Day) Media24 to take on Google?Industry speculation suggests that Media24 has been garnishing support for a project which could see it going head-to-head with Google South Africa. According to an industry source Media24 is planning a new search portal with the support of various shareholders from industry. This search portal will most likely not be Naspers-controlled as 24.com is, but rather a separate brand with shareholding and support from the local Internet’s bigger players. Such a project can be seen as an attempt by Media24 and the local online industry to take aim at Google and limit the control which the search giant has in the local online space. 24.com is currently operating its own search service http://search.24.com/ and the 24.com portal. Google has recently established a presence in South Africa, with country manager Stafford Masie promising to significantly enhance the local Internet industry. “You have to ask if there is space for another online player and someone who can compete with Google if Google is already indexing the whole of South Africa. With services like Google.co.za and Google News it is not an easy company to take on,” said one industry player. (Source: MyBroadband)
People* Telkom South Africa announced that Massmart's Mark Lamberti has resigned as an independent non-executive director with effect from June 3. - South Africa’s SNO, Neotel, has appointed Wandile Zote as executive head of external affairs. Events* 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 * EURO-AFRICA ICT AWARENSS WORKSHOP 17 & 18 June 2008, Premier Hotel - 573, Church Street Acadia, Pretoria, South Africa The workshop aims at supporting the involvement of sub-Saharan African organisations in the European Union’s Seventh Framework Programme (FP7) for Research (under the ICT theme). This workshop is organised by the Meraka Institute of CSIR, South Africa (http://www.meraka.org.za/). Participation is free but pre-registrations are compulsory. More information is available at the following link: http://euroafricaict.org/events/awareness_workshops.php * WEST CENTRA AFRICA COM 18-19 June, Abuja, Nigeria Reflecting the region's existing economic and cultural ties, this event will bring together the Western and Central regions of Africa. With over 20 countries represented, West & Central Africa Com will give all participants an opportunity to create and develop partnerships with over 100 operators and service providers in the region. For further information visit http://www.comworldseries.com/newt/l/gsm/events/westafrica * 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 * THE AFRICAN NETWORK (TAN) CONFERENCE 16th August 2008, Accra, Ghana The theme for TANCon Ghana 2008 is “Next Frontier in Business: Propelling Africa to New Heights”, to reflect the growing number of African entrepreneurs in business today, and to showcase to the world Africa's limitless intellectual and economic capital. This year’s attendees will include seasoned, as well as first-time entrepreneurs, business leaders, public policy leaders, venture capitalists and investment bankers interested in learning first-hand how to successfully invest in technology and in Africa. The topics that would be covered at this year’s conference will include Social Entrepreneurship, Women in African Business, Raising Capital, Entrepreneurship in Informal Sector, Infrastructure Development and Creative Partnership Strategies. Attendees will network with the big wigs in entrepreneurship, business, government policy makers and politicians. For further information visit http://www.theafricannetwork.org/tancon/africa/ * MOBILEACTIVE08 SUMMIT 13-15 October 2008, Johannesburg, South Africa SANGONeT and MobileActive.org are pleased to announce that they will be hosting the MobileActive08 Summit. The theme of the event is “Unlocking the Potential of Mobile Technology for Social Impact”. More information about the event is available on the MobileActive08 Summit website at http://www.mobileactive08.org * 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 * TECHNOLOGY: A PLATFORM FOR DEVELOPMENT? 30 - 31 October 2008, Chatham House, London, UK Technology is now recognized as having the potential to transform the lives of millions in the developing world. This major international conference will seek to identify best practice for achieving the successful implementation of new technology. For further information visit http://www.chathamhouse.org.uk/events/conferences/view/-/id/127/ Jobs and Opportunities* Sales Director - West Africa The client is investing heavily in the African Mobile Telecoms market and aims to offer a truly converged service. Currently setting up operations in West Africa, a Sales Director is required for a new start-up which presents an exciting and challenging opportunity. This is a highly competitive market and only sales professionals with a proven track record in telecoms will be considered. The Sales Director will report directly in to the CEO. For further information contact advertising@balancingact-africa.com Contracts* HiTS and Huawei - Tanzania HiTS Telecom has signed a $180 million (Sh216 billion) contract with Huawei Technologies of China. Under the pact, Huawei Technologies will start building HiTS's network to enable it to cover the whole country within 13 months. "We are determined to undertake the fastest roll-out plan in East Africa's mobile communication history," said HiTS Tanzania chief executive officer Gerhard May.
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