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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 427 MobileActive 08: Mobile messaging for the masses – an idea whose time has comeThree hundred and eighty people gathered from all over the world in Johannesburg this week to discuss how mobile phones might be used for social and political purposes in developing countries. The organisers and hosts Sangonet had expected 150 people but the topic clearly touched a nerve. The event crackled with the kind of energy that happens when people gather on a topic for the first time. Russell Southwood looks at the issues raised by the event’s subject. At the core of all this energy was a very simple notion. The technology device of choice for the majority of people in developing continents like Africa is the mobile phone. If you want to deliver messages to people or get them to respond then SMS or voice is an obvious route to go down. But mobiles are not just a delivery channel but are fast becoming a media in their own right. National consumer surveys in Balancing Act’s report African Broadcast and Film Markets showed that between 3-9% of respondents in a variety of countries named the mobile as one of the most used daily sources of information. But like the old Hollywood saying, there were only really five stories at MobileActive 08. These were identified by snappy tags like M-health or M-education: indeed, M- almost any development sector you care to think of. Well, there were actually eight areas of M-something: health, education, rural livelihoods (agriculture), governance (political campaigning), disaster warning and women. Mobiles are now being used to: send out bulk mailings to key target groups (nurses); mobilise supporters; poll people and gather data; to provide answers to enquiries; to offer information support for activities; and raise funds. The majority of this activity is based on the 160 characters available in SMS. In other words, it’s an instantaneous, wide angle media but you can’t say that much using it. But you can send several messages to overcome this limitation. However, as one-long time veteran of using technology for development in Africa told me:”Everyone knows how to use it and most people have access to it.” The sheer inventiveness of many of the different services was impressive. For example, I attended a presentation by Zimbabwe’s Kubatana.net who used the call centre functionality of Asterisk to create Freedom Fone. This was designed to counteract the tight control of media in that country by allowing users to phone in and listen to short radio-style programming. In the example aired musician Thomas Mapfumo talked of a campaign of “tough love” towards the Government. The early pioneers of using mobiles for social purposes go back in Africa to the funding of the agricultural pricing service pioneered by Senegal’s Manobi in 1998. But like a lot of new development-based activity, the use of mobiles seems to operate in a memory-free present tense. The early precursors of this activity were those who gathered at the beginning of the millennium to try and use the Internet as way to break out of seemingly intractable development issues: technology would provide a magic pill that opened up new solutions. On the one side you had the wild-eyed (often American) tech enthusiasts and on the other side, the mumbling choir of African policy makers who seemed to want something called the Information Society. And somewhere in between were the development professionals who were trying to make sense of it all. The hopes for technology as a magic solution were dashed upon the rocks of a lack of infrastructure, a consequent shortage of users and the inability of the mumbling choir to remove the policy blockages to achieve the much-mentioned Information Society. The disillusioned and pragmatic headed in a number of different directions. Some of them moved from focusing on the Internet to thinking about how to use mobile phones. People like Peter Armstrong of One World who set up an SMS jobs service in Nairobi’s Kibera were part of this group. Others started campaigning to change both the fundamentals of price and infrastructure. Whilst others, like Geek Corps founder Ethan Zuckerman (who has been a moving force behind encouraging blogging through Global Voices) moved off in new directions. The absence of those promoting the Internet at MobileActive perhaps reflects these changes. The Internet enthusiasts had to break through the standard development response which might be cruelly summarised as: how can you spend money on technology when poor people need _________ ?(insert the word reflecting your own particular work area). For whatever else, this interest in technology did, it began at the edges to challenge long-established funding patterns and the thinking around it. But it also initiated a debate about the efficacy of different types of media. The Internet was compared unfavourably with radio and in time also with mobile phones: something always had to be the answer to everything. But in reality, no-one thing is ever the answer to everything. People make use of a range of media and any process of communicating with them will be “hybrid”: in other words, it will be sent and received using a range of methods. The same righteous position-taking about what approach was morally superior was also present at the conference, best exemplified by a person who seemed to pop up at almost every session I attended and make the point that voice messages were more effective in communicating with the poor than text SMSs. Whilst the position has a useful grain of truth, it rather ignores the many millions of messages sent by the functionally and completely illiterate every month. And as I learned, the presence of SMS writers (who have sprung up alongside letter writers) in places like Pakistan, who charge the illiterate to send messages they compose for them. Unlike the initial world-changing promises for the Internet, those working with mobiles make more modest claims. Cell-Life which works in HIV-AIDS information says that missed appointments at Themba Lethu clinic in Johannesburg among the 9,000 patients using TxtAlert has dropped from 10% to 3%. SocialTxt which uses the 120 unused characters on the “please call me” message to insert calls to action about HIV-AIDS has driven an increase in people calling national helplines. One call centre reported that over two weeks 41% of users had accessed services following a campaign of this sort. These claims are merely illustrative of the various ways in which mobiles can change social circumstances favourably. Others included: using MIXIT to teach basic maths; mobilising protest by using SMS; “dating” agricultural growers with produce buyers using text alerts (TradeNet in Ghana); getting people to speak out against domestic violence (WOUGNET in Uganda); gathering data using Java-apps to create simple menus; weekly farming tips to farmers (CELAC project in Uganda); using a mobile phone on a table for conference calls with farmers; and many, many others. So whilst NGO professionals now make far greater use of PCs and the Internet in their work (according to the Worldwide Worx survey for 2007, 99% of South African NGOs use e-mail), there is a growing acknowledgement that mobile phones can be used effectively for wider communication. As Peter Benjamin of CellLife told me:”There’s a huge demand for information. Very good information already exists (in the HIV-AIDS field) and there are high levels of cell-phone usage. (For most of the people we want to talk to) e-mails and the Internet are from another planet. The mobile is the device in the hands of the majority and it can do interactions.” So if it’s such an obviously good idea, why can’t I name more successful, long-standing projects that have begun to change the fundamentals of communication or the lives of people? On the fingers of one hand, you have the aforementioned jobs service from One World and Safaricom’s M-Pesa service (which was initially funded by DFID through Vodafone) and errrr…that’s it? Readers may wish to write and tell me what a fool I am for forgetting to mention other long-standing projects but I doubt that I will find myself using the fingers of more than two hands. The immediate and seemingly reasonable response is that many of these projects are in their early stages. There did not seem to be a single project I spoke to at the conference that was not a pilot: in other words it will be funded for a year to three years and then may disappear. However, the early pioneers stretch back further and few have found their financial feet or scaled up in such a way that they have made a significant major impact. Indeed one might ask: with so many pilots around, when are we going to see some flying? An uncomfortable circle of circumstances involving what the service is, who might use and how it is funded chases its own tail to no little or no effect. You need scale to demonstrate effect. Scale takes time and money to establish. SMS itself in Africa did not spring out suddenly newly-formed with millions of users, it took time to develop. With certain notable exceptions, donors and foundations are keen to seed but do not take a long view. Impact only comes with scale. A few hundred users is hopeless, a few thousand users is promising, a few hundred thousand users is suggestive and over a million means you’re actually getting somewhere. For complex systems, like agriculture, you need to have “critical mass” across several countries. Faced with the daunting cliff of “scaling-up” or “rolling-out”, some in the development community go squishy and start saying things like cultures are different and things work differently in different places. But whilst this is undoubtedly true, these are what we know technically speaking as “excuses”. Mobile phones and the practice of using them differs from country to country but that hasn’t stopped them rolling out in every country in the world. The same will be true for services on mobile phones and their use as media: ways will be differ but certain things will be the same and the challenge is to make it so useful that people can’t fail to want it. It’s not about technology, it’s about what makes people’s lives easier. The big abstract concept areas of development (like health) may sound important and “do you good” but they have to fit into how people lead their lives and their sense of priorities. For as Mark Davies of TradeNet (who wrestles with the complicated issues affecting farmers) said:”It’s all about understanding the agents of change and that’s anthropology not technology.” People in development all too often think they know what’s good for people and for all the rhetoric about “bottom-up approaches” simply fail to observe what people are saying or doing. To be fair, that listening process is not as simple as it sounds. Gary Marsden of University of Cape Town ran a session that looked at the important relationship between potential users and developers. The design community’s version of “bottom-up” is “user-centred design”: the user becomes part of the design team in a warm, humane Scandinavian version of co-creation after you show them a prototype. The real difficulty faced by developers, according to Marsden, was that the potential users had no familiarity or conceptual framework to make a useful input. To use an analogy, it would be a bit like showing a pre-automobile, horse-rider a car and asking for design input. Why are there no stirrups? One Mexican group simply watched closely the intended users making use of the tools provided and used paper to sketch out what might happen with them. But this observation probably applies better to more complex apps for computers or menu-driven apps for mobiles, not SMS. But even with SMS simple design flaws can upset the process. One application for data collection using SMS involved using the hash key as separators but the hash key was different when the phone was in SMS mode for some users. From my own experience, African users want to be helpful and will often consciously or unconsciously simply mirror back what the project’s initiators want to hear. The conference had a session on “sustainability” which is one version of development-speak for: how will it pay for itself? I was unable to attend this session as I was speaking in another session but having closely grilled two or three people who attended, there didn’t seem to be a whole lot of answers that were aired. In truth, there are only three broad, long-term answers and none make very comfortable listening for those who want these projects to succeed. The user pays, the Government pays or as with other media, a sponsor or advertiser pays. There is an interesting sub-set of the user pays which is political issues and the campaigning that goes with them: Greenpeace Argentina can use phone calls to find supporters and ask some of them for funds to pay for this work. If it’s important to you and you want it enough, you’ll find a way of paying for it. The development sector usually assumes that if people are poor, then a service will need to be “free-at-the-point-of-delivery”: it costs money to have the service but it comes out of general taxation. But at one level poor people are not so different from the more well-off. The Orange Foundation ran a scheme in a poor part of Mali’s capital Bamako. Mothers would bring their babies to be weighed and the weights of the babies would be mailed to a paediatrician. He or she checked their progress and if and when weight progress fell below a certain level, advice or medication would be provided. There were 300 subscribers paying US$1.05 a month and by any description this is a health insurance scheme. As with using mobile phones, the poor will pay for what they really value. Therefore one challenge is to produce a service that they really value and large number can afford to pay a small amount for: Safaricom’s M-Pesa has 2.5 million users because it is a service that is really valued by its users. No capacity building workshops were run to help users, they taught themselves based on the service’s marketing information. There will be some services that cannot be commercialised because they are simply a public service: these will either need to be fundraised for or ultimately become part of the budget of Government. For the latter, the justification for spending will be two-fold. It communicates more effectively with a group of people and/or it is more cost effective. So for example, collecting data electronically is challenging but almost certainly quicker and cheaper than its paper and physical collection equivalent. But for African Governments, it implies overhauling a sclerotic and often inert civil service by moving money out of existing ways of doing things into new more effective ways of doing them. In terms of advertising and sponsors, the level of activity needs to be at a critical mass to attract interest. Praekelt Foundation’s use of advertising slogans on Call Me messages can reach 13 million people daily in South Africa. But for only 120 characters, the few thousand dollars they charge per million users seems reasonable. Nevertheless nw advertising media take time to establish themselves. But whatever the challenges and limitations of using mobiles as a media, this one will run and run as all those involved wrestle with different ways to make it work.
Sudan's Canartel expects mobile licence, expansionSudan's second fixed-line telecom operator said on Wednesday it was confident of securing a mobile operating licence by the end of the year, and was looking to expand its fixed-line operations into Darfur and southern Sudan. The mobile licence will cost "in the hundreds of millions (of dollars)", Mohammed Bouhelal, chief corporate affairs officer for Canartel, told Reuters on the sidelines of a telecoms conference. "It (the decision) is now at a very high level. It should be announced by Etisalat soon," Bouhelal said. Canartel, majority-owned by Etisalat of the United Arab Emirates (UAE), entered the Sudanese market in 2006 as the first direct competition to Sudatel SDTL.AD, in which the Sudanese government retains a 26 percent stake. Bouhelal said Canartel has about 250,000 subscribers and capacity for 1 million. The UAE is the second-largest investor in Sudan, after China, and this has given Canartel a strong bargaining position for the mobile licence. Bouhelal said the company would quickly catch up to the established mobile operators in Sudan by taking advantage of its position under the Etisalat umbrella to offer roaming deals to Egypt, Saudi Arabia and the UAE. "When the Sudanese uses our service, he will be able to take his phone to Haj in Mecca, to go shopping in Dubai and to take his vacation in Egypt," he said. Mobile penetration in Sudan is estimated to be 30 percent, and Bouhelal expects that to grow to at least 60 percent in the next two years. Independent estimates have targeted 8 million users in the medium term. The company's existing fixed-line operations are also set to grow, with the firm looking to invest at least $50 million creating infrastructure and establishing a presence in the Darfur region of western Sudan and the semi-autonomous south. "By the end of the year, we hope to be in El Fasher and Nyala, as well as El Geneina and Zalingei," Bouhelal said, noting that peacekeepers there have a need for better communication. The four towns are in Darfur, where the United Nations and African Union have deployed troops in an attempt to keep peace between the government and Darfuri rebels. "We are in the south, in Rumbek, and will be moving to Wau and then Juba before the end of the year," he said. "The future is going to be there. There is good business in the south, but it is a question of time," he said, noting the large natural resources, including oil, and an expected influx of $2.5 billion in aid. Revenue from wholesale and international services make up 70 percent of Canartel's profits, which have grown by 27 percent this year, Bouhelal said, without giving figures. (Source: Reuters) I-Tel to Launch mobile CDMA service in Uganda with promise of US$0.12 a minuteCompetition in Uganda's telecommunication industry is set to intensify with the entry in December of I-Tel Ltd, a CDMA mobile telecommunication network operator. The company promises call tariffs that can only be matched by land lines at the average cost of Ush200 ($0.12) or less per minute. The lowest tariff on the market currently is Ush249 ($0.15) per minute, charged by Warid Telecom. "Our rates will be better and cheaper. Whatever you say, the costs of running CDMA are lower than any other technology network on the market regardless of interconnection fees charged," said Ronald Kayemba, the company's sales and marketing manager. Although the company was initially frozen out of its preferred GSM option, its officials argue that the low costs of CDMA will bring in the numbers from the downmarket consumer segment, for whom affordability is a prime factor. I-Tel president Augustus Caesar Mulenga told The East African that the first few test calls have shown I-Tel's network signal is already being received within Kampala. Later, the firm will roll out its network across the country. This will bring the number of active telecom operators to five; moreover I-Tel's entry is expected to shake up a market that is awash with low tariff plans. Just last year, call tariff rates were lowered across the sector by 10 per cent as the market's old trio of Zain, Uganda Telecom Ltd and MTN prepared to take on new entrants Warid and Hits Telecom. The firms also offered off-peak call rates discounted by 50 per cent and in other instances, 100 per cent. The promotions, however, were called off for what Uganda Communications Commission termed as poor quality of service as they jammed the companies' switches. After upgrading their switch and network capacity, the telecom firms again introduced various promotions that have seen prices lowered significantly -- from MTN Zone and Zain's "Chacha" to Warid's Mega Bonus and "Bona Bogere," a Uganda Telecom offer on free calls. Because of the entry of Warid Telecom seven months ago, for instance, the highest peak tariff for local calls currently ranges between Ush420 ($0.25) and Ush450 ($0.27), down from about Ush490 ($0.29) previously. Regional call tariffs on the other hand are as low as Ush440 ($0.26) while international calls go for Ush600 ($0.36). (Source: The East African) Nigerian Communication Commission Licenses South Beach Subsidiary to offer mobile e-top up pointsA key subsidiary of the South Beach Company Limited - Universal Payment Systems Limited (UPAY) has been licensed by Nigeria Communication Commission (NCC) to roll out mobile e-top up points sale solutions in Nigeria. Efetobor Osowa , Managing Director/CEO, South Beach Company confirmed to the Vanguard newspaper last week that South Beach Company Limited, through its subsidiary, Universal Payment Systems Limited (UPAY), an e-payment solutions company in collaboration with its international partners will deliver a voucherless top-up solution. This solution will enable mobile agents to sell airtime to telecom subscribers in variable amounts, by directly crediting the subscribers with value of airtime purchased through the telecom networks from any location nation wide. UPAY has already secured the requisite permits for the roll out of its services (that is, the type of approval for the transaction terminals and the sales and installation licence for the service offering). As part of its roll-out plan, UPAY has executed an agreement with a front line Nigerian bank known for its robust ICT infrastructure base and deep domain knowledge, to act as its partner for the purpose of cash collection and escrow agent. Apart from Airtime sales, UPAY will also offer financial services such as money transfer and revenue collection for states and federal government agencies and departments. (Source: Vanguard) Draft Telecommunication Bill Comes Under Scrutiny in NamibiaGovernment has to re-look some of the provisions within the Draft Telecommunication Bill if it wants to have a practical regulatory act in place, the Namibia Economic Policy Research Unit (NEPRU) says in its latest policy brief. Among the highlighted aspects of the draft bill are long skills development strategies and a truly independent and impartial regulatory body to which the Minister of Information and Communication Technology will have no influence over except on purely policy matters. The author of the policy brief and research associate at NEPRU, Dr Christoph Stork, points at various clauses within the bill that, in his opinion, give the minister a role that interferes with the regulator on regulatory process. These include the appointing of board members by the minister as well as allowing the minister to direct the regulator to charge an extraordinary fee for a licence. "The regulator needs to be independent and impartial. The role of the minister is to provide policy guidance and not intervene with the regulatory process. The draft bill needs to be modified to separate these functions clearly," said Stork. He said the board of the regulator would best be appointed by Parliament, as the regulator is not a State-owned enterprise. The Draft Telecommunication Bill intends to create a levelled playing field for communication companies who have been engaged in public spats, price wars and arguments as they fight for market share. The three Namibian communication companies, MTC, Cell One and Telecom, are tussling over interconnection tariffs, accusing each other of charging tariffs higher than the recommended tariff by the current Namibian Communication Commission, as well as the awarding of licensing. Stork says a cost based interconnection is the right principle. "Benchmarking countries that introduced it already would be a cheaper and quicker way to implement it. The regulator would need to be required to determine benchmarked interconnection. Operators could have the option to apply for lower or higher interconnection rates based on forward looking long-run incremental costs," Stork said. (Source: New Era) In brief:- The Ministers in charge of Telecommunications and ICT in ECOWAS Member States are meeting this week in Praia, the Cape Verdean capital, to consider the report of a preceding meeting of experts on regional guidelines on curbing cyber crime. The statement said that the ministers would also consider issues relating to the Global Digital Solidarity Fund (DSF) and how ECOWAS Member States can contribute meaningfully to it. - MTN Nigeria and the Zain Group are among 25 GSM companies under the GSM Association now exploring renewable energy sources such as solar, wind or sustainable biofuels to power mobile networks. The project is targeted at powering 118,000 new and existing off-grid base stations in developing countries by 2012. - According to the Lusaka Times, the Communications Authority of Zambia (CAZ) is considering revoking licences of those mobile operators who fail to improve on their quality of service in the next three months. CAZ acting CEO, Richard Mwanza, noted that customers were being charged for calls that were not successfully connected, while the level of calls dropped without warning has also increased. - More than 26 million subscribers to mobile telephony have been identified up to 10 October, the deadline for the end of the identification operation, Post and Telecommunications Regulatory Authority (ARPT) announced. "A total of 26,667,867 subscribers to Algerian mobile telephony have been identified including 25,494,723 prepaid subscribers and 1,173,144 post-paid subscribers. The rate of identified subscribers reached 91 % and that 9% are still unidentified and thus have been deactivated. - Unions opposing a controversial move by Telkom South Africa to outsource a huge portion of its daily operations affecting thousands of workers have won a reprieve, with tenders put on hold for further talks. No deals will be signed with outsourcing firms until April. Telkom said this was decided in consultation with three unions. Telecoms, Rates, Offers and Coverage (briefs)- The pricing war in the Kenyan telecommunication industry went up a notch higher with Safaricom reducing all its charges to more than a third for within-network calls. In its new offer running for next two months, the listed firm's subscribers will enjoy a reduced rate of between Sh3 and Sh8 per minute from the current Sh10 per minute. Calls to its rivals went down by almost half from Sh25 to Sh14 per minute. - In parallel Orange Kenya has launched what it says is the country’s cheapest ever mobile phone tariff, with call prices starting at KES1 (USD0.013) per minute. Text messages will be charged at the same rate of KES1 as part of a two-month promotion by the operator, which launched its first cellular services last month. - Nigeria mobile operator, Zain, is expanding in the South region its new fixed phone service.
Submarine fibre cable project EASSy ups its capacity to 1.4 TbpsThe East African Submarine Cable System (EASSy) has decided to more than quadruple its capacity to 1.4Tbps, a move that will give it slightly more capacity than its rival Seacom. This means East Africa can now look forward to having two submarine cable systems with capacities of more than 1Tbps. It is currently the only major geographic and economic region without an undersea cable to connect it to the world telecommunications grid. In comparison, the Telkom-operated West Coast cable SAT-3 has a total capacity of about 320Gbps. Trevor Martins, head of MTN internal submarine cable investments and chairman of the Eassy management committee, says the increase in capacity is needed due to an increase in broadband demand in the region. When originally conceived, Eassy was expected to cost about $250 million. The latest changes, along with some architectural adjustments, means the cost will increase. “The rise in costs has been met by the investors and there is a sufficient buffer in place to meet any unforeseen events,” he says. Originally, Eassy was supposed to have an initial capacity of 320Gbps. This was increased to 640Gbps, and now that capacity has more than doubled. Rival project Seacom has a planned capacity of 1.28Tbps. A statement issued by cable manufacturer and construction company Alcatel-Lucent yesterday says this means Eassy will have the highest capacity in the region and will satisfy broadband needs for years to come. Martins says history has shown that once a market is freed up, demand for broadband rises exponentially, so he thinks there will still be space for the two projects. He says the Eassy cable will be constructed in time to be in place for the 2010 World Soccer Cup that is due to take place in July that year. This will be achieved by using two ships to lay the cable; one will begin at Port Sudan and the other at Mtunzini, in SA. The ships are expected to start work in December and the first quarter of 2009, respectively. Martins points out that pricing is not an issue for Eassy, as it is operating under a mandate of providing the lowest cost connectivity to the region. “Our investors do not see this as a profit-making exercise; rather it is infrastructure development and so we have been mandated to provide the lowest cost to the region,” he says. (Source: ITWeb) Competition Commission in New Bid to Fine Telkom South AfricaEfforts by the Competition Commission to fine Telkom R3.7bn for anti-competitive behaviour have been revived, with the commission winning the right to appeal against a court ruling that temporarily halted its campaign. The move once again raises Telkom's risk of being heavily punished for behaviour designed to quash rival internet service providers. Telkom still hopes to avoid the fine, however, as the operator was simultaneously granted permission to cross-appeal by the Supreme Court of Appeal last week. The verdict at the heart of the battle came in June, when the Pretoria High Court ruled that the commission could not refer a complaint against Telkom to the Competition Tribunal, sinking its chance of hitting Telkom with the proposed R3.7bn fine. If the court of appeal upholds that verdict, Telkom will escape the fine. But if it rules that the commission can refer complaints against Telkom to the tribunal, the tribunal will reinvestigate the allegations and decide whether Telkom's market-crushing tactics deserves the fine. Accusations that Telkom deliberately abused its dominance to stifle competition were lodged by internet service providers in 2002. They accused Telkom of refusing to supply them with bandwidth and charging them more for its facilities than it charged its own internet division. The commission agreed that Telkom had abused its dominance, recommended the huge fine, and referred the case to the tribunal for ratification. But Telkom derailed the process by asking the court to rule that the competition authorities had no jurisdiction over the telecoms sector, since the territory is overseen by the Independent Communications Authority of SA . (Source: Business Day) Affordable internet cafes coming in TanzaniaVodacom Tanzania, in collaboration with GSMA Development Fund and Qualcomm Company has embarked on project to install high-speed and affordable Internet cafes in the country, to enable more Tanzanians including those in rural areas to access the service. Vodacom through its Wireless Reach initiative has already connected Internet cafes in Dar es Salaam, Dodoma and Arusha, with its HSPA mobile broadband network, enabling locals to gain high-speed access to the vast storage of information and multimedia services on the web. "We are very proud to add to our bid as a total communication solutions provider to the people of Tanzania our new alliance with the GSMA and Qualcomm to bring high-speed Internet cafes to this country,” said Dietlof Mare, Managing Director of Vodacom Tanzania in a statement last week. He said the three regions is just the beginning of the project, but the aim is to spread the technology throughout the country. He added that the cafes will be run by local entrepreneurs with each Internet cafe equipped with several computer terminals connected to Vodacom’s HSPA network, which can provide download speeds of up to 7.2 megabits per second. (Source: Daily News) In brief:- In South Africa, the SNO Neotel is finalising plans to offer fibre-based services to business customers in major cities. The firm has completed the rollout of fibre rings and the metro access layer in larger markets and is now looking to offer triple-play packages of voice, video and internet services to enterprise users. - Swakopmund’s beleaguered feral cat population now has its "meow" on the World Wide Web, with the recent launch of the Cat Protection Society's website 'The Feral Cats of Swakopmund'. The site, www.feralcats.in.na, gives an overview of the history and current situation of the approximately 65 feral cats living at Swakopmund. - The Tunisian online magazine Kalima (http://www.kalimatunisie) has suffered an attack that has completely destroyed its web content. The site's webmasters have been unable to update or even to access it since the morning of 8 October 2008. According to Kalima editor-in-chief Sihem Bensedrine, "the only people who would benefit from an attack on a website that is already inaccessible to Internet users in Tunisia are the security services."
Acer Computer Voted Number One in NigeriaAcer Computer achieved year-on-year growth of 261.9 % in the Nigerian notebook sector, with the latest research from analyst house IDC positioning the IT vendor as the market leader, with a 35.5% market share for the second quarter of 2008, a statement from the company has said. IDC's latest figures show that in the notebook sector of the Nigerian IT market, Acer Computer is the vendor of choice both for consumers and business users. Overall, for desktops and notebooks, it holds the number three position, with a market share of 13.4% and year-on-year growth of 204.7 %, whereas the market growth has only been 35.9 percent. "Nigeria is a key growth markets for Acer," said Naveen Sethi, Country Sales Manager (Africa) Acer Computer (M.E) Ltd. "Our products have been very well received in the market and Acer is committed to introducing more state-of-the-art product portfolio in 2008 to enhance and help customers appreciate the Acer brand." The notebook sector in Nigeria in Q2 of 2008 grew by 82.4% year-on-year; whereas Acer's growth for the same period was 261.9 percent. "We are extremely pleased to have consolidated our position as a leading IT vendor for the country," added Sethi. (Source: Daily Trust) IT Body to be introduced in Uganda to set up standardsThe Government is to form a body to set standards for the information technology equipment that is imported, procured and installed in the country. Ham Mulira, the Information and Communications Technology (ICT) minister, yesterday said the proposed body would monitor and set standards of acquisition and ensure uniformity in quality of ICT equipment brought in the country. Mulira was presenting the proposed National Information Technology Authority Bill 2008 before the parliamentary ICT committee. He said South Africa, Rwanda and Mauritius were among the countries that have regulatory bodies to oversee the sector. "The proposed body will provide technical guidance for establishment and access of electronic data in government ministries using the Internet," he said. Under the Bill, the ICT minister will have powers to appoint the authority's board of directors and to set academic qualifications for appointment and tenure of the members to the board. The proposed law would empower the minister to suspend or terminate the appointment of members and the authority's functions. (Source: New Vision) Ethiopia’s airlines to Acquire New IT System for $30mThe management of the Ethiopian Airlines (Ethiopian) is in the process of acquiring a state-of-the-art information technology (IT) system, at a budgeted cost of 30 million dollars, reliable sources disclosed to Fortune. The new system, dubbed master systems integration services, is required to automate the airlines' operations in its finance, human resources, supply chain management, data warehousing, and corporate portal areas. "The airlines' operation has reached a stage where it can no longer run without such a system," Kemeredin Bederu, vice president for IT Division, told Fortune. Although the national carrier has an existing IT system, it is not deemed sufficient for its growing operations, said industry sources. Ethiopian has achieved what it sought in its "Vision 2010," a strategic plan that sets targets on revenues and passenger numbers:It has already generated the one billion dollars revenues one and half years ahead of the scheduled time, and the number of passengers have exceeded the two billion mark espoused in the strategic plan. Its profit from operations in the past Ethiopian fiscal year was over 50 million dollars, reliable sources disclosed. And the number of fleets it has under operation has grown from 11 to 27; additional Dreamliner aircrafts, Boeing's highly sophisticated planes, are expected to be delivered next year. These are the type of aircrafts that are fully linked to an IT system on the ground, where technicians can identify any malfunction while they are in flight, and resume maintenance immediately after they land. "This will substantially reduce the time the aircraft would stay on the ground," Kemeredin said. These are the backdrops that prompted the airline to spend close to 300 million Br in acquiring a new IT system, according to industry experts. In fact, no other domestic company is prepared to spend such an amount in automating its operations. Not even the nation's biggest financial institution, Commercial Bank of Ethiopia (CBE), comes close to this; the bank's plans to invest four times lower (70 million Br) to acquire an IT system from foreign firms in its desire to launch an electronic card payment system. "[The] Ethiopian Airlines' philosophy will be to adopt a new airline best practice business process as enabled by the supplied system," the national carrier said, inviting international firms to bid for the contract. The successful bidder will have to develop an IT solution that will also integrate the company's current system, according to the tender announcement issued in the state-owned English daily, The Ethiopian Herald, in September 2008. (Source: Addis Fortune) In brief:- Mozambique is preparing to establish four Science and Technology Parks in the near future, dedicated to research in different areas of activity. The areas to be covered include the development of agricultural technologies, agro-processing, energy and the environment, telecommunications, bio-technologies, bio-medicine and building materials. These parks are to be set up in Maputo, Zambezia, and Nampula provinces. - Rwanda Information Technology Authority (RITA) announced nominees for the first Intego Information Communication Technology (ICT) awards which will take place on October 31st. - Morocco has announced the completion of the 1st phase of the new 300ha technopoles for a global sum of US$ 397 million in Sale (Rabat’s twin city). This new project will promote major sectors, such as "the soft center" which will serve as a basis for software maintenance, engineering, network management, and software development; as well as off-shoring professions with less red tape, and more equipment and skilled manpower. - Students of higher learning in Uganda will access laptop computers on loan basis in a move to increase the use of information communication technology (ICT) in the country. They will access these computers at a cost of $400 to $450 (about Shs652,000 to Shs733,500 which is to be paid during their stay at the universities. A consignment of one million laptop computers is already in the country.
Telkom South Africa Agrees to Sell R22,5 Billion Vodacom Stake to VodafoneSA's largest cellular operator, Vodacom, will soon be under British ownership, with the government agreeing that Telkom should divest from the business. Vodacom is 50% owned by the UK's Vodafone and 50% by Telkom. A deal to end that unworkable joint ownership has been negotiated for months, and a breakthrough was reached last night with Telkom agreeing to sell a 15% stake to Vodafone for R22,5bn. Telkom will then distribute the other 35% to its own shareholders, which include the government with a 39% stake in Telkom. They will be gaining shares in a listed entity, as Vodacom will then be listed on the JSE. Vodafone's cash payment will be reduced slightly as a portion of the debt within Vodacom -- estimated at R5bn -- will be deducted from the purchase price. An analyst said:"We don't know yet how much cash will be paid out. Tel-kom is not going to keep that R22bn so it will pay it as a special dividend to shareholders." The deal is subject to conditions including the negotiation of final transaction documents and shareholder and regulatory approvals. But the biggest obstacle has already been cleared, with the government and Telkom's board giving the go-ahead. (Source: Business Day) Kenya’s Banks ask for regulation on Mobile Money TransfersThe banking fraternity is crying foul over what it described as unfair and increasing competition from money transfer operators. The industry says the operators are enjoying privileges similar to those extended to deposit taking institutions despite not being covered by the same regulatory regime. "Currently, there is no legal framework within which these entities provide their services despite behaving like current account institutions," says John Wanyela, executive director of the Kenya Bankers Association. "If these operators want to join the financial sector, they have to be properly licensed." The bankers are calling on the government to subject the services to prudential regulations "for robust and secure movement of funds across the economy." Under the proposed guideline, the services will have to be supervised by a specialised financial regulatory authority that will oversee their financial soundness and stability. Currently, the two leading mobile phone service providers -- Zain and Safaricom -- are offering money-transfer services in the country under Sokotele and M-Pesa brands respectively. Like other deposit takers, the bankers association wants the mobile cash transfer operators restricted on how much deposits they can take. To avert undue competition with the banking fraternity, Wanyela says, M-Pesa and Sokotele services have to meet the capitalisation requirement as stipulated in the Banking Act. According to the Act, a deposit taking institution should maintain a minimum capitalisation of Ksh250 million ($3.5 million). This is however expected to double come December next year before hitting Ksh1 billion ($14.2 million) by 2010 after capitalisation requirements were amended in this financial year's budget. The bankers also say the "digital money" has implications for the conduct of monetary policy by the Central Bank of Kenya. To control inflation levels in the country, CBK continuously monitors the amount of money in circulation, mainly in the hands of people and commercial banks. With the monies in circulation, CBK is in a position to maintain a reserve money target and, therefore, intervene to control inflation. Observers say it is this huge amount of money circulating electronically that has defeated CBK in the fight against inflation. Wanyela says it is time the government stepped in to ensure M-Pesa and Sokotele services are regulated before "something goes wrong." Debate has been rife on who should regulate the mobile phone money transfer operators, with some arguing that the CBK should be party to the issuance of guidelines as "part of M-Pesa and Sokotele services fall under the national payments system." Fundamentally, the two mobile operations are guided by the Communications Commission of Kenya. Early last month, CBK said it had no intention of bringing the mobile cash transfer services under the Banking Act. It claimed that treating the money transfer services under the Act may impede competition in sector that is still at its infancy in a country whose majority population has limited access to financial services. Safaricom statistics show that as at the end of the first quarter of this year, more than Ksh3.1 billion ($44.2 million) had been transferred. From its launch in March 2007 till May this year, the service has facilitated the transfer of more than Ksh23.77 billion ($339.5 million). (Source: The East African) For further information on mobile payments in Africa purchase Balancing Act’s report “M-Money - Finances, Banking and Payments through mobile phones” For a detailed breakdown visit
Mobinil says 3G license not profitable in itselfEgyptian mobile operator Mobinil will make no profit on its third-generation (3G) network and would not have bought a 3G license if the deal had not included an extension of its 2G license, an executive said on Tuesday. Mobinil bought a 15-year 3G license in October 2007 and launched its new network in Egypt in September this year, after agreeing to pay LE 3.34 billion ($602 million). “If it were the 3G license only, definitely it would never have proven to be profitable,” Guillaume Van Gaver told Reuters on the sidelines of a telecoms conference. “The controversial position is that 3G doesn’t pay in Egypt on its own, due to the terms. It only pays if you include the 2G (second-generation) license extension,” he added. Van Gaver, vice-president for Mobinil’s commercial division, said difficulty accessing content and prohibitively expensive handsets had also slowed the development of 3G in Egypt. “Until the cost of the handsets is not so high it will be very difficult in Egypt for us to bring in 3G revenue streams,” Van Gaver said. Third-generation technology allows video calls and access to multimedia content, but coverage in Egypt is patchy. When it signed the contract Mobinil negotiated a four-year payment plan, much longer than was granted to its two competitors, Etisalat Egypt and Vodafone Egypt, which signed 3G licensing agreements up to 18 months before Mobinil. Van Gaver said wealthy 3G customers were very important but Mobinil, which has more mobile subscribers than any other operator in Egypt, would balance investment in its 3G network with the needs of its much larger customer base using earlier and cheaper technologies. “We also need to take care of the millions and millions of our customers who have 2G phones,” he said, adding that about 200,000 Mobinil customers use the 3G network. At the end of June Mobinil had 17.5 million subscribers in Egypt. Investment bank EFG-Hermes has said it expects Mobinil to add 1.4 million subscribers in the July-September quarter and to make net profit of LE 388 million during the quarter, down from LE 472 million in the same quarter of 2007. (Source: Daily News) Belgian Rally Ace to Invest $100 Million in RwandaJean Francois Desmare, a Belgian national, has invested (Frw55 million) in an insurance business and a call centre in Rwanda. Desmare who navigates in several rally circuits in Rwanda said that he has intentions to increase investments in ICT and insurances businesses he holds a stake, to more than $250,000 (Frw137.5 million) and also expand operations to other East African countries. Desmare controls a major stake in AfrikaRisk, an insurance company and UniCall, an ICT call centre. He is also the Chief Executive Officer of AfrikaRisk. UniCall is a provider of telecommunications voice and data products and services for the business community, specializing in telephony, Internet and broadband solutions. Apart from the insurance firm, Desmare has also opened a call centre, UniCall, which he says will help in contacting and accessing the needs of the AfrikaRisk clients on a daily basis. Unicall which has operations in Marrakech, Morocco is expanding into Rwanda, a move which Desmare expects to reap from Rwanda's growing business opportunities. “It is cost-effective and it will ease communications in our insurance firm (Afrika Risk), provide fast, reliable, internet access and high-speed connectivity to our customers," Desmare said. UniCall which has opened its offices at Hotel Milles Collines will also provide Internet services ranging from simple e-mail to web hosting facilities. (Source: The New Times) In brief:- The Algerian government has decided to postpone the privatisation of Algerie Telecom at least in the short term. The state-owned telecom is the country's major fixed line operator, and owns the second largest wireless operator, Mobilis. The government initially planned to sell off 35% of the operator in an initial public offering (IPO) at the end of 2006, but after continued delays the tender was then rescheduled for 2008. - Mobile phone network operator Telekom Networks Malawi (TNM) has said it is pleased with how its initial public offer (IPO) is progressing, according to local paper Nation Online. CEO Werner Schrijver revealed that so far 7,000 people have applied for the shares since 6 October when the offering began. Investors have until this Friday (18 October) to apply. TNM shares are scheduled to be listed on the Malawi Stock Exchange on 3 November. The cellco expects to raise about MWK2.5 billion (USD18 million) from the IPO of 1.29 billion ordinary shares, which will represent 20% of the company’s issued share capital post-IPO. - In Zimbabwe, Econet Wireless signed an agreement with Homelink in which the two companies will partner in the roll out of the International Calling Card (ICC). Last month Econet was awarded a licence under the Foreign Exchange Licensed Warehouses and Retail Shops category to sell recharge cards in foreign currency. - South Africa’s second national operator Neotel is planning to raise USD1 billion of funds, mainly through debt, to finance its network expansion, The telco, which is 56%-owned by Tata Communications of India, has already begun talks with financial institutions, including original investors Nedbank Capital, Investec Bank and the Development Bank of South Africa, Telecom Tiger reports. - South Africa’s technology supplier Square One has reversed a healthy position that saw its profits climb despite a fall in revenue earlier this year, and has been forced to post figures showing that its earnings are now substantially down despite a higher turnover. The dip was expected, the directors said, after a decision to diversify its customer base and guide the company into new markets.
World Bank Africa Chief Economist Launches New BlogThe World Bank Africa region has announced the launch of a new blog from its chief economist, Shanta Devarajan. The blog, AfricaCan.org, will serve as an online forum for the sharing of ideas about the continent's development. The objective of the AfricaCan blog is to create a platform for (1) conversation around the issues of sustainable growth and development in Africa, and (2) outreach to help promote analysis and evidence about what is working and what isn't on the continent. The blog will include guest commentary from Devarajan's colleagues at the World Bank and will feature posts in English and French. "There is no shortage of economics blogs out there, but this is one of the very few you will have to turn to if you are interested in a serious debate on African development," said Dani Rodrik, the Rafik Hariri Professor of International Political Economy at the John F. Kennedy School of Government at Harvard University. Rodrik's own popular weblog features "unconventional thoughts on economic development and globalization." Devarajan invites comments from students, academics, fellow economists and bloggers, members of government and civil society, and anyone interested in ending poverty in Africa. Journalists are encouraged to quote Devarajan directly from the blog. "Africa Can is a place for all those who care about Africa's economic development to gather and comment. The debate on Africa's economic growth and poverty reduction should not just be held in boardrooms and parliament halls but in classrooms, tea shops, and village meetings, where the people who are most affected can contribute," Devarajan said. Devarajan joined the World Bank's Africa Region as Chief Economist in January 2008 after five years in the Bank's South Asia region. While in South Asia, he launched End Poverty in South Asia, a blog aimed at creating a conversation around how South Asia can end poverty in a generation. "The End Poverty in South Asia blog was a great success for the region. It drew together many voices on South Asia's development, voices not just of assent but of discord and debate. It livened up the discussion and drew a whole new audience for the Bank," said Praful Patel, former World Bank Vice-President for the South Asia region. (Source: Biz-Community) Nigeria’s Supreme Court Reports available online soonESCN Publishing Ltd has announced it will publish judgments of the Supreme Court of Nigeria on-line and near real time. The company says its e-reports, ESCN, are a most essential tool for the international modern lawyer practising out of Nigeria and anyone interested in Nigeria. Relying upon current precedents from the highest Nigerian judicial authority, the legal practitioner is thus able to adequately advise clients who need to make quick but sound business decisions about Nigeria. ESCN is published by ESCN Publishing Ltd from its Abuja and London offices in collaboration with Springnet (UK) Ltd and Design-in-Print UK. The company pointed out that the Supreme Court delivered about 114 judgments during the 2007/2008 judicial year which either developed the law in some way or introduced a new point of law. (Source: This Day)
People* Second national operator Neotel has reinstated its CFO, Arun Gupta, following his suspension last month. Events* THE MOZAMBIQUE ICT CONVENTION 2008-08-14 15-16 November 2008, Maputo, Mozambique The Mozambique ICT Exhibition has been initiated by the Ministry of Science & Technology to provide an educational platform for all government ministries, departments and organisations, as well as all major private sector enterprises and SMEs. They will meet together over two days to share knowledge, learn form local and international experts and network with each other in both the conference and the exhibition. For further information contact AITEC Africa, +44(0)1480-880774; info@aitecafrica.com * TELECOMMUNICATIONS SERVICES AND CONSUMERS RIGHTS IN WEST AFRICA 22-24 October 2008, Cotonou, Benin The conference aims at impulsing a new dynamics to the telecommunications sector through taking into account the concerns of consumers regarding quality and services rates at the national and regional level. The conference will also deal with all the aspects related to the regional regulation in term of telecommunication, the settlement of the West African ICT Consumer Associations Network as well as the advocacy techniques to be used during the campaign which will be conducted towards sub-regional institutions. The conference is funded and supported by the Open Society Initiative for West Africa (OSIWA) For further information contact the League for the Consumers Defence in Benin on +229 21 35 24 58 or visit their website at www.ldcb.org * 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/ * UBUNTUNET CONNECT 2008 AND OPEN ACCESS 2008 11-14 November 2008, Lilongwe, Malawi For further information on the 1st UbuntuNet Alliance Annual Conference, visit
For further information on the 6th International Conference on Open Access, visit
* ngNOG 16 – 26 November 2008, Lagos, Nigeria For further information on the 3rd Edition of the Nigerian Network Operators Group Workshops and Meetings, visit http://www.forum.org.ng/ * AFRINIC 9 22 – 28 November 2008, Addis Ababa, Ethiopia For further information on the 9th AfriNIC Open Policy Meeting, visit http://www.afrinic.net/ * TELECOMS COST ALLOCATION AND PROFITABILITY ANALYSIS CONFERENCE 1st – 5th December 2008 Hesperia Hotel, London - UK Over the five day conference delegates will learn & develop techniques to over come the latest developments in European regulatory and management accounting, address vital issues such as NGNs, IP-interconnection, regulatory evolution, convergent services, customer profitability analysis and cost control functions. Learning through a wide range of different formats you will learn how to increase your understanding and benchmark activities through; keynotes, panels, roundtables, workshops, seminars, interviews and open discussion. The formats are tailored to the subject and change the pace each day, helping you to maintain concentration and boost memory of the event. For further information visit www.iir-conferences.com/costprof Jobs and Opportunities* DEVELOPMENT OF A COMPREHENSIVE NATIONAL ICT BILL FOR THE GOVERNMENT OF MALAWI The primary objective of this assignment is to assist the Ministry of Information and Civic Education to draft a comprehensive ICT Bill. However, the overall objective of the assignment is to align the existing ICT legislation and regulations within the Government of Malawi to the environment prevailing in the COMESA common ICT Policy and Model Legislation, NEPAD/EASSY protocol, SADC common ICT and Policy taking into account the technological convergence and a fast changing ICT sector. The application deadline is 24 October 2008 For more detailed information on ToR contact Jane Moeller Larsen at the Danish Management A/S on Phone: +45 70 200 298 and Direct: +45 35 250 655 * SEYCHELLES ICT POLICY ANALYSIS The overall objective is to assist the IOC in defining the relevant markets of products and services within the electronic communications sector, including the relevant geographic markets and carrying out an analysis of such relevant markets. The application deadline is 24 October 2008 For more detailed information on ToR contact Jane Moeller Larsen at the Danish Management A/S on Phone: +45 70 200 298 and Direct: +45 35 250 655 Contracts* MTN and First City Monument Bank - Nigeria Telecommunications company MTN Nigeria, has signed a five year deal for the provision of a Wide Area Network solution to support 89 up-country branches of First City Monument Bank (FCMB). The Wide Area Network solution will improve the quality of services rendered by the bank through the prompt provision of banking services and reduction on the time customers spend in the banking halls. * Six Telecom and Telerix - Tanzania Tanzanian alternative telecoms provider Six Telecoms (6Telecom) has selected business information exchange and interconnect OSS/BSS solutions developer Telerix to supply it with its iXTools ASP service to optimise the telco’s growing global interconnect business. In a press release Telerix said Six Telecoms hoped to leverage its hosted solution for next generation routing, buy and sell-side agreement management and accurate dial code management. The iXTools ASP platform is a hosted interconnect business optimisation and settlement service which enables service providers to reduce costs and increase profitability across their interconnect networks. * Vodacom and Alcatel-Lucent – South Africa South African cellco Vodacom has selected Alcatel-Lucent to design, build and deploy an upgrade of its existing 3G network. The EUR22 million upgrade project will boost the capacity and coverage of Vodacom’s UMTS and HSDPA/HSUPA networks. Alcatel-Lucent will supply its UMTS Terrestrial Radio Access Network (UTRAN) solution, including radio network controllers, node B base stations and a flexible wireless network management system.
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