Balancing Act News Update - African internet developments

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The countries below contain a historic archive of information on the state of the internet that is now three years old. For some countries, the information has remained largely the same whereas for others considerable change has occurred. However it can still be used to identify organisations involved in developing the internet and to understand the historic development of the Internet in Africa. For up-to-date (but "pay-for") information click here: There are special rates for students and universities.

DOWNLOADS ZONE
This is an area where you can download longer articles and reports of interest. These will be updated as new material becomes available.

Download 1
(Word format, 875kb)
This IDRC-supported research study looks at how complaints by African consumers in the telecoms and Internet sectors are dealt with and what input consumer organisations are able to make into policy for these sectors. It is based on a survey of 30 African countries and includes detailed case studies of Kenya, Senegal and South Africa.

Download 2 Word document
(255kb)
This chapter from the ITU's Global Trends in Telecommunications Reform 2005 examines the market and regulatory implications of the shift to IP networks and outlines the different types of responses regulators are making to VoIP calling.

Download 3
(pdf format, 310kb)
Leslie Chan, Barbara Kirsop, Subbiah Arunachalam look at the use of Open Access archiving as a way of improving scientific capacity building.

If you have updates or interesting material to add, please send it to info@balancingact-africa.com

ALGERIA ANGOLA BENIN BOTSWANA BURKINA FASO BURUNDI CAMEROON CAPE VERDE CENTRAL AFRICAN REPUBLIC CHAD COMOROS CONGO COTE D'IVOIRE DEMOCRATIC REPUBLIC OF CONGO DJIBOUTI EGYPT EQUATORIAL GUINEA ERITREA ETHIOPIA GABON GAMBIA GHANA GUINEA GUINEA-BISSAU KENYA LESOTHO LIBERIA LIBYAN ARAB JAMAHIRIYA MADAGASCAR MALAWI MALI MAURITANIA MAURITIUS MOROCCO MOZAMBIQUE NAMIBIA NIGER NIGERIA REUNION RWANDA SAO TOME & PRINCIPE SENEGAL SEYCHELLES SIERRA LEONE SOMALIA SOUTH AFRICA SUDAN SWAZILAND TOGO TUNISIA UGANDA UNITED REP OF TANZANIA ZAMBIA ZIMBABWE

Ushahidi helps people by tracking what’s happening in a crisis by web and SMS

Telecoms news

Internet news

Computing news

Digital toolbox/In search of the business model

On the money

Web news

People, events, jobs, contracts...

Forthcoming report:

African Telecoms and Internet Markets

Part 1: West Africa covers sixteen countries: Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo. There is a profile of each country. For a detailed breakdown of the contents of each country profile, click: http://www.balancingact-africa.com/atim.html

Over the next two years we will be producing five parts that cover the whole of the continent.

Using data gathered in 2003 and 2007, it gives the growth rates for the following: mobile and Internet subscribers, international bandwidth and the number of cyber-cafes. It also includes information on Internet and cyber-café access rates. Data is supplied in spreadsheet form for cross-comparison purposes and the report opens with a commentary on the overall findings from the data.

In addition, there are two introductory pieces, one looking at IP-TV and the other examining the current state of mobile prices in West Africa. In “IP-TV – Will the pioneers get the arrows or the land?”, we examine the current progress of Africa’s IP-TV pioneers in Cape Verde, Mauritius, Morocco and Senegal. In “Trends in West African mobile prices”, we compare mobile prices in the region with those found elsewhere on the continent. Data is supplied in spreadsheet form for the purposes of cross-comparison.

Out September 2007.

You can order directly from our website: http://www.balancingact-africa.com/publications.html

WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday.

For country-by-country information on internet, telecoms and computing in English go to: http://www.afridigital.net

L’edition mensuelle en francais: L’edition mensuelle en francais de Balancing Act’s News Update donne des informations sur les derniers developpements en matiere de Telecoms, Internet et Informatique en Afrique. Si vous voulez vous abonner a News Update, envoyez simplement un message en francais "Je veux m’abonner à l’édition en français de Balancing Act’s News Update" a info@balancingact-africa.com. Si vous voulez annuler votre abonnement, il suffit d’envoyer un message en francais "Je veux annuler mon abonenment à l’édition en français de Balancing Act’s News Update" a la meme adresse email.

2008 RATE CARD AVAILABLE
To see a copy of our rate card for 2008, e-mail a request to: (info@balancingact-africa.com) Don't get left behind. Be seen and known through advertising in our e-letter and on our web-site.

ISSUE NO 433

Ushahidi helps people by tracking what’s happening in a crisis by web and SMS

All too often African web apps have been pale copies of their Northern cousins and have not really seemed to either have found a real usefulness to their users or acknowledged the presence of the mobile phone. The idea that sparked Ory Okolloh’s Ushahidi site is an interesting and brave one that in a continent trying to make peace with itself may well succeed. Russell Southwood spoke to the women who got the whole thing off the ground on a recent visit to South Africa.

Ushahidi means testament in Swahili and the is about allowing anyone to submit crisis information through text messaging using a mobile phone, email or web form. The idea came to Okelloh when she was visiting her home country from South Africa in the period of the post-election violence:”I was writing what was happening on my blog. After media restrictions in Kenya, the blog became a source of information and people started sending me stuff.”

From this, Okelloh decided to set up a web site where people could say what was happening where they were by web or SMS: crowdsourcing as the jargon has it. This information was then geo-mapped on to Google maps so that things like the date and spread of violence could both be tracked and hopefully addressed:”On 3 January I put the idea out on my blog and asked whether there were any Kenyan techies who were interested. Erik Hershman and David Kobia got in touch and said they were interested in getting other techies together.”

“Initially it was a volunteer thing. Someone donated server space. The blogging community got the word out and someone gave us the short code for the mobile messages.” Eventually having run for several months the Kenyan post-election page was retired but kept as a memorial of those events.

So why track a crisis like the post-election one in Kenya? “A lot of people ask: did we save lives? I think our main contribution was to assist in directing help. We have a How to help page that lets people know what they can do.”

Having responded to one situation, Ushahidi’s team was bombarded with interest in the idea of turning it into a global web site to allow the gathering of crisis information anywhere globally. In other words, when a crisis hits, an organisation can just download the software, tweak it a little bit and set up their own version. The main challenge to this approach and one that preoccupied Okelloh during the site’s Kenyan post-election period was: how do you verify the information people send in?

But any agency or Government organisation seeking to understand what is happening in a crisis is faced by the same situation. Only this week the Indian security forces declared that they had dealt with the gunmen who had attacked various locations in Mumbai. But it was someone on Twitter who reported that gunfire was still continuing. Information in a crisis is a patchwork of sources and you can only hope to build up a full picture by having as many sources as possible.

The latest crisis addressed by the website has been the unfolding civil war and refugee crisis around Goma in the DRC. It has already partnered with Heal Africa to offer the service and hopes to be able to partner with other organisations. But there are real difficulties for some organisations: in a political situation like this, they don’t want to antagonise people they might have to work. When we spoke to Okelloh about a week after the site went up, about 30 reports had been posted and this number had more than doubled by this week.

Okelloh had her misgivings about setting up for the Goma crisis but felt it was too important not to do it:”The software’s still in the alpha version. We’re also working on a French version and looking at how we can put a translation function in future versions.” In South Africa they also shared the code with UnitedforAfrica.co.za who were tracking racist attacks on non-South Africans in the townships.

From the original idea, it’s now turned itself into an organisation, initially with money from the Net Squared Mash-Up Challenge which it won first prize from. It has now added a grant from Humanity United for US$200,000 which will allow it to realise its ambitions.

It hopes to be able to release the final version of the software by the middle of next years and it is currently testing it with 10 organisations in fields as various as the environment, disease mapping and human rights violations. It is working with Ken Banks of Frontline SMS to integrate use of the software and is also looking at how to integrate smart phones and other phones more typical of those used in developing countries. It will also build in a user feedback mechanism. There will also be mainstream news feeds that will add to the patchwork of information sources. Although it’s early days, it’s already getting around 30,000 individual visits a month.

It’s all based on Open Source software with around 15-20 developers making different contributions. Most of these developers come from Africa and the majority are Kenyans. In approved Open Source fashion, Ushahidi will release the software for free but charge fees for technical optimisation.

African Telecoms and Internet Markets – Part 2: Central Africa is part of a series of five parts that will cover the whole of the continent. If you’ve not already bought Part 1: West Africa which covers 16 countries, click on the link below and scroll down to find details:
http://www.balancingact-africa.com/publications.html

African Telecoms and Internet Markets – Part 3: East Africa will be published in October 2008.

The prices for African Telecoms and Internet Markets – Part 2: Central Africa are as follows:
Full price – Africa: GBP250/USD500
Full price – Rest of the World: GBP320/USD640

Reduced price – Universities and NGOs GBP125/USD250

Click below to order:
http://www.balancingact-africa.com/publications.html

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ISSUE NO 433 TELECOMS NEWS

INDEX

Econet Finally Launches its Network in Kenya

Econet Wireless Kenya (EWK) finally launched last week after five years of delays caused by legal problems and financial woes.

Econet Wireless International (EWI) recently sold a 49% stake in the company to India's Essar Communications Holdings (ECHL). The companies said that the move would significantly benefit Econet Wireless Kenya (EWK), which is 70% owned by EWI, from a rollout as well as product offering perspective.

The company w launched under the Yu brand, and will initially cover the capital city, Nairobi followed by Mombasa - with nationwide coverage expected by April next year.

Econet Marketing Director Anna Othoro said Yu would not engage in a price war. "We are not going to launch with tariffs that we cannot sustain in the long term as a business," said Othoro.

Figures from the Mobile World database subscriber database reports that Safaricom is the market leader with a market share of 86.6% with Celtel coming in at 13.4%. Telkom Kenya (Orange) has also just started as the third mobile operator.

(Source: Cellular News)

Bank to offer Cross-Border Prepaid Airtime in Namibia

First National Bank (FNB) Namibia becomes the first commercial bank in the country to offer cross-border prepaid airtime purchases.

According to a media statement issued by the bank on Wednesday, FNB Mobile and Transact Solutions Head of Expansion Yolande van Wyk said the service is the result of two years of hard work on a pioneering mobile transfer system that allows real-time cross border prepaid airtime using Cellphone Banking from FNB and is available 24 hours a day.

Van Wyk said any Namibian MTC customer can now receive prepaid airtime from relatives and friends in South Africa who are registered with FNB Cellphone Banking.

She said the service allows SA cellphone holders based in Namibia to send prepaid airtime to their relatives and friends in that country.

"This is the first phase of the project, FNB plans to expand the service to a number of other African countries in future phases of the project," Van Wyk said.

"Namibians working in SA can now send airtime to their family in Namibia where at least 80 per cent of cellphone users are prepaid customers.

Our products have been successful in that country, and we are now adding more value to the Namibian people," she said.

She said at present only SA FNB Cellphone Banking customers can make a prepaid airtime purchase for an individual who uses Namibia's MTC.

"Today, banking has played a role in providing services to segments of our society that we could previously not address cost effectively.

Cross-border prepaid airtime top-ups is another example of how FNB in SA is leveraging its base of 4 million registered customers to use interactive financial services from their cellphones," Van Wyk added.

(Source: The Namibian)

Zain and Safaricom scoop African telecommunication awards

Leading mobile service providers, Zain Kenya and Safaricom Limited, have reason to smile after both emerged winners at the Inaugural AfricaCom Awards in Cape Town.

Both companies scooped two awards each with Zain taking the first position for the Best Marketing campaign of the year. Its 'One Network' was recognised along the company's highly successful ads and simultaneous re-branding exercise in 14 African countries.

This was also cited for the Best Pan-African Initiative Campaign of the Year Award, recognising the world's first borderless mobile network, which now links 16 countries across two continents.

The new corporate identity was launched seamlessly on the eve of 1 August, 2008, in a process that linked 14 African countries in one day, being the first time e ver on the continent.

"The renewed vigour and refreshed brand from Celtel to Zain had been affirmed by our existing and many new customers across the countries after the re-brand" noted Chris Gabriel, CEO Zain Africa.

Safaricom, on the other hand, led the pack yet again with its innovative cash transfer service, Mpesa. It scooped the two awards, namely Rural Services Award and Changing Lives Award.

The inaugural AfricaCom Awards were the highlight of Informa Telecoms & Media convention held at the Cape Town International Convention Centre. The event brought together a total of 3,500 participants from 72 countries and a record 221 operator companies who have been attending the convention previously.

(Source: Pana)

New flat rate Phone Service sets out to revolutionise the Kenyan market

Zolatel Telecom, a subsidiary of Kenyan-owned Unicon Corporation, recently launched an all-digital, North America phone service that enables people to make calls to and from Kenya just as they would make a local call. Subscribers use regular phone equipment without the need for cumbersome computer calling, phone card dialing or the fear of high charges.

Subscribers to this new service are assigned Kenyan phone numbers when they register. This number enables them to place and receive low-cost calls to and from any phone network in Kenya. Service connections at both ends of the calls register them as local calls thereby helping subscribers save on phone expenses.

“We initiated service two months ago and are witnessing a growing base of subscribers who represent Kenyan businesses in the United States,” states Fred Arungah, Commercial Director for Zolatel. “One of our current customers is a small Kenyan coffee importer based in Colorado. With our system he now has virtual presence in Kenya and is able communicate with the farmers as if he is right there!”

Zolatel’s service is available for personal and business accounts throughout North America. As an added bonus, the service comes standard with free voice mail, three-way calling, call waiting and forwarding. There are no connection fees and hidden charges often associated with calling cards. Usage is billed at a flat-rate and in one-second increments. Subscribers enjoy unlimited free calling with other subscribers in the Diaspora and the freedom of retaining their service and numbers if they should move to any city in North America or Europe.

“This new phone service promises to change the way Kenyans in the Diaspora communicate, especially as their relatives in Kenya can now call them by placing a local Kenyan landline call” adds Julius Johnson, a recent Zolatel employee.

Zolatel offers competitive rates for calls made to other global destinations. The company is supported by a network of distributors in North America and plans to appoint distributors in Europe early next year.

In brief:

- Mozambique and Brazil agreed to cooperate in the scientific development of telecommunications over the next three years. This was spelled out in a memorandum of understanding signed between the Instituto Nacional das Comunicações de Moçambique (INCM) and Agência Nacional de Telecomunicações (Anatel), of Brazil.

- The 63rd session of the Governing Council of the International Telecommunication Union (ITU), has elected Ghana from the Africa Region as Vice Chair by consensus in Geneva Switzerland. The chairmanship went to Bulgaria from Eastern European region.

- Leading telecom operators such as Brasil Telecom, BT Plc, KPN, Korea Telecom, NTT Communications and Telkom South Africa, have initiated trials between each other to potentially reach over 200 million customers with new global Internet services. Entitled "Open Presence", this initiative lays the foundation for the next wave of service interoperability, enabling users on different global operators' networks to inform each other of their real-time availability and delivering enhanced social networking applications and services.

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

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ISSUE NO 433 INTERNET NEWS

INDEX

O3b Networks Ltd makes inroads into Nigeria’s Internet market

O3b Networks Ltd. announced it will begin deployment of a new high capacity backhaul infrastructure for Galaxy Wireless Communications Limited to provide high-speed, low-cost Internet connectivity to its emerging and fast growing subscriber base in Nigeria. The deal is a multi-year, multi-million dollar contract with Galaxy Wireless Communications that will support its G-MAXTM Broadband service, providing IP connectivity and Broadband Wireless solutions on its WiMAX network.

This contract will enable Galaxy Wireless to deploy domestically and internationally an efficient IP backbone network, known as the G-MAXCLOUDTM, with initial scalable bandwidth in excess of 2 Gbps to serve fixed and mobile operators, enterprises and internet service providers with an ultra low latency, web 2.0 capable internet experience. Galaxy Wireless Communications Ltd. African operations is headquartered in Abuja, Nigeria.

O3b Networks, funded by Google Inc., Liberty Global, Inc. and HSBC Principal Investments, recently announced it will deploy the world’s first ultra-low-latency, Medium Earth Orbit (MEO), Ka-band, fiber-speed satellite network. The network is designed to provide an Internet backbone for Internet Service Providers and Telco’s in emerging markets. Service activation and ground equipment is scheduled for late 2010.

Galaxy Wireless Communications Ltd CEO, Gerald Nwosu, declared that “O3b Networks is providing much needed capacity with a price and quality of service guarantee that will forever change the landscape of affordable internet access in Africa. Combined with our state of the art G-MAXCLOUDTM proposed for the entire country especially un-served and underserved areas, Galaxy Wireless Communications will remain at the cutting edge of secure, ubiquitous, high quality affordable internet access.”

O3b Networks’ EVP of Sales and Marketing, John Finney, added that “innovative and entrepreneurial Galaxy Wireless Communications Ltd is a perfect example of a partner that O3b Networks will be working with to make sure that the benefits of quality and affordability of O3b are implemented with success on the ground”.

In parallel, the company has signed a deal with satellite and wireless broadband equipment supplier Netcom Africa. O3b Networks will provide to Netcom Africa high-bandwidth, low-latency IP services to and within Nigeria.

Terrestrial broadband study begins in Africa

The e-Africa Commission has initiated a study on the feasibility of its Umoja terrestrial network – marking key strides in the development of a broadband infrastructure network for Africa.

“The study will determine what the cost of the Umoja network in the various regions will be. This input will then determine what the SPV (special purpose vehicle) will need to make the network a reality,” said Dr Edmund Katiti, policy and regulatory advisor for the e-Africa Commission.

The commission, which is a part of the New Partnership for Africa's Development (Nepad), says the six-month study would focus on the fibre-optic couplings that Umojanet, its terrestrial network, would need to link to the 40,000km Uhurunet submarine cable. The first feasibility study would cover 23 countries in the Eastern and Southern Africa regions.

“The purpose of the study is to determine which fibre-optic links are in existence between cities, the capacity of the lines, their useability, who owns the infrastructure and the value of the infrastructure,” explains Katiti.

The e-Africa Commission was awarded $410,000 of funding by the Development Bank of Southern Africa (DBSA) in September 2007. A contract for the study was supposed to be awarded at the end of 2007 and the study should have been carried out in the first half of 2008.

Katiti attributes the year-long delay to the lengthy process which accompanied the commissioning procedure. “The funding was approved by the DBSA, but we still had to go through a tender process and consult with the companies. We also had to ensure the work that they would be doing would be within our budget.”

The study will be presented to prospective investors in the Nepad Terrestrial SPV that will develop, own and operate the terrestrial broadband network. The SPV would lease or sell Umojanet services to licensed telecom operators in various countries.

The e-Africa Commission is also seeking a range of investors for its Umojanet and Uhurunet projects, ranging from telecoms companies to financial investors who are willing to invest over 15 to 20 years.

Malawi intensifies fibre-optic installation as demand for telecom technology grows

As the demand for communication technology continues to grow in Africa, incumbent Malawi Telecommunications Limited (MTL) is intensifying efforts to speed up laying of underground fibre-optic cables throughout the country with a view to boast free flow of information.

Malawi is keen to ensure that it is easy to connect and inter-link with the world as far as information technology is concerned, and more importantly to enable the country to compete with the rest of the continent and the world at large.

It is estimated that a total of US$30 million would be required for the ambitious project in Malawi in order to replace its VSAT links.

MTL’s Lester Tandwe, said the latest development sought to keep the country moving with the times in the field of information and technology.

“The first part of the capable will be operational by April 2009 while the second part will be operational by 2010 and will connect to international cables to provide international bandwidth,” said Tandwe.

Given growing user demand in technology, Malawi is now laying an average of 50 kilometres of underground capable with a view to provide internet and telecommunication services to both urban and the countryside.

(Source: ITNewsAfrica.com)

In brief:

- The management of Nitel has announced it has fixed and restored the services of the SAT-3 Cable, damaged on October 15, 2008. The damage on SAT-3 has disrupted international calls and Internet connections to and from Nigeria.

- Seven Atlantique Telecom GSM mobile networks in Africa are to be connected via a VSAT network to be installed by Globecomm Systems. The contract follows Atlantique Telecom's programme of consolidation of its African markets.

- Nigeria’ fixed wireless phone operator, Multi-Links Telkom last week has rolled out its broadband EVDO package to Lagos. Its mobile broadband service will provide high speed Internet access for a wide range of applications and customers, ranging from professionals, mobile executives to students.

- Satlink Communications Ltd., announced that it has made it to yet another category of the World Teleport Association (WTA) ranking, by being named among the 'Independent Top Twenty'. WTA is a leading organization that focuses on the business of satellite communications from the ground up.

- A local South African company, MyIsp has launched an initiative aimed at providing free internet access to South African consumers with limited access needs, such as minor email or online banking requirements. It has options available for dialup and ADSL users.

- Two young unemployed Ugandan computer programmers have built Libre-Échange an Internet-based money-making business that could be Uganda’s Google. Libre-Échange is French word for Free Trade now coming into the Ugandan circles as an online trading platform that could either make you filthy rich or damn broke should, it take off. Hosted at www.poundsource.com the trading platform is replicating the buying and selling of real company shares at the Uganda Securities Exchange (USE), by investors.

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

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

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

To see the contents: http://www.balancingact-africa.com/profile1.html
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ISSUE NO 433 COMPUTER NEWS

INDEX

Lagos Shuts Computer Village Over Tax issue

Lagos has shut down its famous computer village in Ikeja over alleged failure of the marketers to pay personal income tax. Officials of the state Board of Internal Revenue on Thursday banded together with the Task Force and the Rapid Response Squad (RRS) to seal up the market that thrives in mobile telephone hand sets and computer accessories.

All the entrances were barricaded with government and police vehicles, including an Armoured Personnel Carrier (APC), in an operation that began at about 5 a.m.

The shops bore signs of "Sealed on the order of Lagos State Board of Internal Revenue pursuant to Section 104 Personal Income Tax Act, Cap 8 Laws of the Federation 2004."

An eyewitness said many of the computer vendors who did not know what had befallen them and had attempted to gain entry into the market were prevented from doing so. They initially resisted the invasion but were overpowered by the combined team of state officials and policemen.

A Revenue Official, Akin Ariyo, confirmed that "the place is shut down because the operators of this village failed to pay their taxes. Fewer than 10 per cent of them have responded, so we are waiting for more than 90 per cent.

"We are here on the directive of Governor Babatunde Fashola, and until he says otherwise, we will be here. There is no room for pleading this time, the government needs money."

Another official, Sunday Ige, lamented that the marketers have failed to respond to several enlightenment campaigns to pay tax. But the spokesman for the operators, Suleiman Kushimo, pleaded for more time, saying: "We have heard the Governor saying he would not borrow money to run the state's affairs, and would depend on internally generated revenue.

"As a member of the executive of the market, I assure the government that the market task force will work jointly with the government task force to ensure 100 per cent compliance before this month runs out."

Others kicked against the action in a democracy, arguing that those who have paid their taxes should not suffer with defaulters. "Let the fewer than 10 per cent who have complied open for business," one marketer said.

(Source: Daily Independent)

ICTs represent 10% of Tunisia's GDP

Tunisia's Ministry of Communication Technologies is willing to increase the part of the ICT sector in the country's GDP in order to reach a 13.5% share by 2010, against 7.8% at the start of 2007 and 10% now. More than ever, Tunisian authorities consider the ICT sector as a strategic path to generate thousands of new skilled jobs and to attract foreign investments and international operators.

The country is also counting on know-how-transfer to improve its competivity and to maintain its regional position in terms of technological advance, as recently illustrated by the establishment of a "School Technology Innovation Center" in Tunisia by Microsoft. According to UK-based Oxford Business Group, the country now ranks 35th in the 2008 Global Information Technology Report, issued by the World Economic Forum.

"[...] According to ministry statements, the growth in GDP can be attributed to both increased market demand and an improved business environment. Regulatory changes in the ICT sector have "improved the investment climate in the country and accelerated project start-ups", leading to improved competition, network roll-out and service development, the ministry said. [...]

Tunisia was ranked 35th by the World Economic Forum in its 2008 Global Information Technology Report, which assessed its ICT readiness, accessibility and regulation. The country's ranking placed it second in the Middle East and North Africa region, after the United Arab Emirates. Although rankings such as these provide only a comparative sketch of international competitiveness, Tunisia came in well ahead of other regional players such as Jordan (47th) and Morocco (74th). [...] Recent regulatory changes include law No 2007-13, which supported small and medium-sized start-ups by obliging the state to cover up to a quarter of the wages of qualified employees for a period of up to three years, and for five years following the creation of the company. [...]

Employment in the sector has also been a big focus for Tunisian ICT companies. As part of the 11th Development Plan, the government aims to stimulate the creation of 10,000 new IT jobs every year - an ambitious goal, given that there are currently just over 9000 IT positions in the local market. This is in part a response to the more than 13,000 IT students graduating each year, as well as to the 42,000 students currently enrolled in the IT-related programmes. With the country's unemployment rate hovering around 14%, the urgency of these growth initiatives cannot be underestimated."

(Source: Oxford Business Group)

Refurbished PCs make computer ownership more affordable and accessible in South Africa

Six local computer refurbishment partners have joined Microsoft's Secondary PC programme in South Africa to make high-quality PCs more affordable for people across the country.

By participating in the programme – part of Microsoft's Unlimited Potential initiative – Bridgeport Technical Services, Device South Africa, Just PC's, Mico South Africa, Pax Computers and Sylvara Technologies will be able to provide customers with full PC solutions at competitive prices.

The solutions include genuine Microsoft software, access to software updates and downloads and the peace of mind that comes with a six-month warranty, after-sales support and a recycling option for the PCs when they reach the end of their useful life.

“There is a significant market for refurbished PCs in households and small businesses in South Africa,” said Mteto Nyati, managing director of Microsoft South Africa, at a reception held today in Johannesburg for 30 computer refurbishers and distributors from across the country.

It is estimated that tens of millions of still-usable computers are discarded each year by businesses, individuals and organisations around the world. The reuse of computers through donation, refurbishment or resale therefore offers “tremendous promise” for digital inclusion, added Nyati.

“We believe that by encouraging the availability and support of affordable secondary PCs in South Africa, we can provide the technology resources that ultimately improve the community's ICT skills, create jobs and accelerate economic competitiveness.”

The Secondary PC programme will also help refurbishers grow their business by providing marketing support and access to tools that simplify Windows XP deployment on refurbished PCs, including software activation and meeting secure data standards. Two of Microsoft's partners are upbeat about the programme's expansion.

“Many customers are right to be concerned about the quality, reliability, support, and risk of counterfeit or unlicensed software when buying a used computer,” said Fady Gerges, managing director of Device South Africa. “Our participation in the Microsoft Secondary PC programme assures our customers that the refurbished PCs we sell are genuine, high-quality and cost-effective alternatives to new computers.”

“Factory refurbished PCs are of a high standard in South Africa. Microsoft's endorsement of our industry is just reward for the efforts of South Africa's leading refurbishers,” said Andrew Craig, managing director of Mico South Africa. “The tools and resources provided by the programme not only make my business more efficient, but also more competitive.”

The Secondary PC pilot compliments the existing Community Microsoft Authorised Refurbisher programmes which already provide affordable access to high quality technology for refurbishers that resell to schools, non-profit organisations and low income families.

Microsoft will continue its efforts worldwide to foster vibrant local markets around the refurbishment and sale of secondary PCs. This is just part of the goal set by the Unlimited Potential initiative: to reach the next one billion people who are not yet realising the benefits of technology by 2015.

In Brief:

- There appears to be tough time ahead for software pirates as the Software giant, Microsoft Nigeria, in conjunction with the Computer and Allied Products Dealers Association of Nigeria (CAPDAN) have formed a coalition to fight piracy in the Nigerian IT sector said to growing at geometric progression despite regulations. Accordingly, Microsoft will work with CAPDAN and the law enforcement agents to drive anti-piracy efforts across the country through a sophisticated system of business intelligence, forensics and education.

- A university of the Western Cape (UWC) academic is one of a group of five academics worldwide who plan to open a new kind of online university. The Peer2Peer University (P2PU) had no intentions of registering as a university. It saw itself as a "vibrant community in which groups of self-learners and tutors work together to emulate some of the functions of an academic institution in a peer-to-peer fashion".

- Though approximately 197 million PCs were retired in 2007, just 44 percent of those entering the secondary market will be reused, according to Gartner. Import demand is highest in the Middle East, Africa and Asian/Pacific markets, China in particular. The top exporters of secondary PCs are North America, Western Europe, Japan and Australia.

- The Kenyan Government plans to set up two digital information storage centres by June next year to help support electronic data management both in Government and the private sector. The $200 million project to be implemented through a public/private partnership initiative will see the storage centres put up in Nairobi and Mombasa.

ISSUE NO 433ON THE MONEY

INDEX

Dubai Firm to Invest in South Africa’s Telecom Market

Dubai-based telecoms advisory firm Delta Partners has boosted plans to invest in SA by launching an $80m equity fund. It is now seeking telecoms players in which to invest that R825m, with the typical deal worth between $5m and $15m. It expects to make one or two investments in SA in the next six months before turning its attention to the rest of Africa.

Delta Partners is the largest telecoms advisory and investment firm in Africa and the Middle East, and opened regional headquarters in Johannesburg in July. It would invest in different types of companies, which could include cable layers or infrastructure suppliers, said managing partner Kristoff Puelinckx last week. "That may include established telecoms players, new industry entrants, alternative telecom operators and industry suppliers that have proven track-records, solid business models and existing cash flows."

Investments would not only be in the form of cash, as Delta Partners wanted to be involved with the operations at board level and to use its experience to help grow the business to ensure it achieved the return it expected.

Puelinckx said there was an unprecedented amount of development taking place that would increase Africa's bandwidth substantially over the next five to 10 years.

"With the continued liberalisation of the local and regional telecoms markets, more players are expected to enter this market, giving rise to increased competition and more affordable access to communications technology for businesses and consumers," he said.

"There is substantial investment being made into laying cables and providing infrastructure to enable more bandwidth across Africa. But we are yet to see the boom in this region's broadband market."

Delta Partners operates in 25 countries and has invested in north Africa, the Middle East and Russia.

(Source: Business Day)

Anabel Mobile Signs Music and Video Deal With Storm Records in Nigeria

Anabel Mobile, the latest entrant into the telecommunications industry in Nigeria, has signed a mega Music and Video deal with Storm Records. The deal covers Storm granting Anabel licences to most of its hit tracks, to have them embedded on the Anabel Mobile Smart phones.

Its devices will also come embedded with Storm music videos. The deal includes the African sensational hit "Kini Big Deal," by Naeto C, as well as music and videos by Sasha and Ikechukwu.

This deal is expected to enhance the mobile Professional Series (PS100s and PS200s) handsets as not just an advanced work tool and mobile office, but also a major entertainment device for all ages.

Storm executives were overheard stating that Anabel Mobile devices had the very best sound and production quality available in the world today and with their most advanced MP3 and MP4 components' which will give customers an exciting overall entertainment experience, will maintain the quality of Storm's productions.

Storm is better known for producing major television events as Big Brother Nigeria, Doctor's quarters and most recently, Dragon's Den. They also produced one of Africa's greatest music videos Kini Big Deal and produced the First Lady of Hip Hop, Sasha, amongst others.

(Source: This Day)

New licence fees dreaded by South Africa’s VANs

The proposed licence fee structure for new telecommunications licences could put a damper on the victory celebrations of smaller value-added network service providers (VANs). They could now see themselves hammered by up to a 30-fold increase in their licence fees.

The telecoms industry recently hailed a landmark court ruling, opening the door for VANs to self-provide, as the first real step towards true liberalisation. However, some now fear the new licence structure – under the Electronic Communications Act – could be yet another setback in their drive to compete equitably within the local telecoms industry.

This comes as the Independent Communications Authority of SA (ICASA) proposes that the annual variable licence fee be increased 30 times, to 3% of gross revenue.

The proposed telecommunications licence fee structure, currently being finalised by the regulator, presents a conundrum of balancing out historical legacies and ensuring a fair playing field.

Current draft discussion documents on the new structure could mean some operators may see a huge hike in their annual licence fees and others could see theirs being unaffected, or actually reduced.

For instance, if the current draft documents become regulation, then Telkom could see its licence fee shoot up by 2 500%, while cellular network operator Vodacom could see its annual licence of 0.5% of its turnover be reduced.

This discrepancy is due to Telkom being awarded its licence during its monopoly period, while cellular network operators were awarded their licences far later – at the beginning of the so-called “managed liberalisation” period.

The new licence fee structure will hit the fixed-line operator far harder, as the new licences allow for a far greater ability to choose and select the types of services operators wish to offer and how they wish to do it.

VANs currently pay 0.1% of their annual turnover derived from licensed activities to ICASA, plus another 0.2% to the Universal Service and Access Fund (USAF).

“If ICASA's proposals are turned into regulations, then VANs, who accept I-ECNS [individual electronic communications network service] licences, are likely to see their annual licence fees rise 30-fold. Then there is the possibility the USAF contributions could rise to a full 1%, meaning that up to 4% of their annual turnover from licensed activities will be paid for just participating in the sector,” says an ICT lawyer involved in discussions around the fees.

He says this could put smaller VANs, which often operate on a tight profit margin of around 13%, under severe strain.

John Holdsworth, CEO of ECN Telecommunications, a company that wants its I-ECNS licence, says the increase in licence fees for the smaller VANs that will now enter the market, will mean it is an additional cost that will have to be passed on to customers. This will not bring down the cost of telecoms as it increases the cost of doing business, he notes.

“It is another tax on business. Self-provisioning [the right to build their own networks] is not the only reason for getting an I-ECNS licence. It also gives us the same rights as the incumbents, such as geographic number portability and the right to have our own numbering range,” he says.

ICASA has committed itself to issuing the new licences by 19 January and acting CEO Masie Mamaregane says the fee structure should only be completed by March.

Mamaregane says the proposed licence fee structure is based purely on economics and has nothing to do with the politics of issuing the licences.

Another factor in the debate is that industry is of the view that licence fees should be charged in relation to the cost of regulating the sector, and that ICASA is just acting as another tax collection point.

ICASA's annual report shows that, in the 2008/9 financial year, it collected R2.1 billion in fees that went straight to National Treasury, while it received only R250 million as its budget.

However, ICASA staff say a licence fee charged for covering the cost of regulating would in effect be an administration fee, while, in reality, many other countries treat it as a tax.

The regulator contends that I-ECNS licence conditions are generous as a holder has the right to build a network, choose a frequency from the national spectrum, subject to availability, and participate in the national numbering plan.

“Furthermore, the licence-holders will only have to start paying their fees once they have completed building their networks and are now making money from it,” says an ICASA staff member.

(Source: ITWeb)

South African software company ready for the Worst Or the Best

Software developer UCS is working with two budgets for the coming year: one for business as usual and one housing contingency plans on how to react if the economic turmoil inflicts greater damage than expected.

UCS has already lost a couple of contracts because customers are cutting back on spending, and that might well continue, said CEO John Bright. UCS develops software for the retail industry, and retailers have had a tough time as consumers come under financial pressure.

"The main pain we took was in the first half of the year, where a consulting business which had grown rapidly over the last three years suddenly dried up," Bright said. "We had a look at the business model and tried to reduce fixed overheads. It had a better second half but didn't make up the leeway. The contingency plan was drawn up after examining where the business may be most at risk," Bright said. Nothing too radical was expected.

Despite tough trading conditions, the group showed respectable growth for the year to September 30, with revenue of R1.2bn, up 14.5% from R1bn a year ago. A dividend of 5c a share was declared.

But net profit fell 35% from R166m to R107m and headline earnings per share dipped from 34,7c to 31,9c. Bright said the dip was largely caused by changes in structure last year when UCS spun off a division and gained a once-off profit.

Headline earnings per share were also down because of increased tax expenses and because 7-million new shares were issued for acquisitions and for employee incentives.

Progress was made on developing a value-added services unit by acquiring 51% of 4Life Program for R1.5m and 70% of Computer Software Consultants. Internationally, it acquired Aquitec to give its software division a footprint in the UK and the US, since it can use its lower South African development costs to create international retail solutions.

The global financial crisis had an extremely negative influence on its sales, but a senior executive had been appointed to grow its international retail software offerings. The group also started a new business in Philadelphia to target the mid-tier US market, and the division has won its first order.

Most of its trading units achieved results in line with expectations, although some missed their targets due to the poor external market conditions.

Its software division grew its revenue 26.1% to R475m, but its solutions business suffered as some large retail consulting projects were postponed or cancelled, pushing its earnings down from R126m to R120m.

Bright said those results were acceptable, with the software division showing solid revenue growth and achieving an improvement in its profit margins.

More than 80% of the group's turnover comes from selling its own products and services rather than selling third party products, and more than 60% of its turnover is monthly and annual annuity revenue, creating predictable cash flows at a time when new sales may be scarce.

(Source: Business Day)

In brief:

- The Gambia Chamber of Commerce and Industry, in collaboration with New Technologies Africa (NTA), a registered company engaged in Information Technology is putting finishing touches to the launch of the first ever Business ID card in the country.

- US Communications holding company AT&T announced that the company has expanded its business and operations in the Middle East and Africa (MEA) region. The company has appointed Kevin Maher as regional vice president of Middle East & Africa of the company.

Telecoms, Rates, Offers and Coverage (briefs)

- Zain Ghana launched a drive to pre-register numbers for new subscribers on its network. The launch targeted media personnel, who got their current phone numbers on other networks minus the network code, registered with the Zain 026 code.

- Africell Lintel Sierra Leone has officially opened its cell site in Kabala. Africell has over 600,000 subscribers countrywide and is the biggest GSM operators in the country. By the start of 2009, the company plans to have established 40 cell sites across the country.

- The isolated islands of Agaléga, situated at 1,122 kilometres to the north of Mauritius, is now connected to the world via a new mobile phone network set up by Emtel Ltd.

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ISSUE NO 433 WEB AND MOBILE DATA NEWS

INDEX

Liberian farmers use SMS to get better prices

Farmers in Liberia can now access market pricing information through SMS on their mobile phones. Agricultural Market Information and Linkage System (AMILS) was launched this week by Agro, Inc., a regional agribusiness specializing in linking farmers to markets. AMILS was designed to make agricultural markets work better for Liberian farmers, specifically targeting smallholder farmers in often isolated rural areas.

AMILS involves harnessing modern SMS delivery to mobile phones to empower smallholder farmers with low-cost reliable and timely market information to enhance their bargaining power for better prices in the market place, especially with intermediary buying agents and processors.

Market pricing information is provided on an expanding list of agro-products that currently includes cocoa, coffee, oil palm, rubber, cassava, pepper, plantain, pineapples, corn, and rice.

According to Agro, Inc. president, Tupin K. Morgan, “Our vision of success is of farmers well linked to agribusinesses, with significantly increased incomes through effective and profitable participation in agricultural input and output markets with the help of modern ICT.” By aiming to increase the incomes of farmers and other rural MSMEs, Agro, Inc. will be contributing directly to the Government of Liberia’s Poverty Reduction Strategy and also to Millennium Development Goal No. 1 of eradicating extreme poverty and hunger by half by the year 2015.

Agro, Inc has set up a hotline to allow farmers not currently linked to AMILS to sign up for the service and begin receiving market pricing information directly to their mobile phones. John Kpenieh, a farmer in Koyokah District, Bong County is pleased with the new advantages provided by AMILS. “Information is a very powerful tool and it is the only way that the Liberian smallholder farmer can guard himself or herself against exploitation by middlemen,” he says. The company will also be signing up farmers and farming cooperatives at the Ministry of Agriculture’s Annual Agriculture Fair to be held this year in Voinjama, Lofa County.

Agro, Inc is a provider of post-harvest services to farmers and farming cooperatives. With operations in Margibi, Bong, Lofa, Nimba, and Maryland counties, Agro bridges the gaps in the value chain to connect producers and users of agri-commodities through origination, processing, marketing and distribution capabilities and services.

Waspa tightens mobile regulations in South Africa

Mobile content service providers will now be required to explicitly notify customers once their service bill exceeds its limit.

The Wireless Application Service Providers' Association (Waspa) has amended its code of conduct to improve its consumer protection measures and tighten the consumer notification standards of its 147 members.

Neil Hutchinson, vice-chairman of Waspa, explains this consumer protection strategy was necessitated by recent trends, saying: “We were finding that people were finding large debits against their accounts at the end of each month – their billing was exceedingly higher than what they thought it was. We came to a conclusion that consumers need to be told about the status of their bill and asked if they would like to continue with the service.”

Waspa has made amendments to the value of account thresholds and reminder messaging for customers. Service providers are now required to notify customers who have joined a service when their billing exceeds R300. The customer will also have to confirm whether they would like to continue with the service or not.

Michael Hainebach, chairman of the code of conduct at Waspa, warns that contravention will be punished. “Service providers will be fined significant amounts or face shutdown if they fail to adhere to these measures.”

A second change introduced by Waspa refers to the reminder messaging system which service providers are required to use to notify customers. “We were finding that some service providers were getting very liberal with their messaging, so we have tightened the requirements to make sure the customer always knows how much they are getting billed and what their current bill is,” explains Hainebach.

He notes that Waspa is continually improving customer protection measures as consumers are exposed to new technologies. “New products always lead to problems as there are always things customers don't understand. By continually improving rules, we will be ensuring there will always be good customer experience.”

(Source: ITWeb)

ISSUE NO 433 PEOPLE, EVENTS, JOBS, CONTRACTS

INDEX

People

* The Chief Operating Officer of Glo Broad Access, Martins Olusola Olowonihi has died from gun shot wounds sustained from a cross fire between the police and armed robbers in Lagos.

* Former Vodacom CEO Alan Knott-Craig has been appointed an independent non-executive director of the Nedbank Group, effective 1 January 2009.

* Chairman of Globacom, Dr. Mike Adenuga Jr., has been adjudged the Pan-African Telecom Investor of the Year by the Nigerian Information Telecommunications Technology Awards (NITTA), the highest telecoms quality and performance award in the country.

Events

* 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

* INVESTING IN ICT SECTOR IN EMERGING MARKETS

11-12 December 2008, London, UK

Organised by the CTO, the conference aims at emerging Markets in Asia, Africa and the Americas present unique opportunities for Telecommunications and ICT Firms, but also Banks, Infrastructure Providers, Private Equity Firms, Technology and Solution Providers, Legal Advisors and other Financial Intermediaries to enhance their business development goals and succeed where the market is.

For further information visit www.cto.int

Jobs and Opportunities

* ISOC Fellowship to the IETF

The Internet Society has announced that it is seeking applications for the next round of the ISOC Fellowship to the IETF program. The program offers engineers from developing countries fellowships that fund the cost of attending an Internet Engineering Task Force (IETF) meeting.

Fellowships will be awarded through a competitive application process. The Internet Society is currently accepting fellowship applications for the next two IETF meetings:

- IETF 74 being held in San Francisco, USA, 22 - 27 March 2009

- IETF 75 being held in Stockholm, Sweden, 26 -31 July 2009

Up to five fellowships will be awarded for each IETF meeting.

Full details on the ISOC Fellowship to the IETF, including how to apply, are located on the ISOC website at : http://www.isoc.org/educpillar/fellowship

Fellowship applications for both IETF meetings are due by 31 December 2008.

Contracts

* Globacom and Acision - Nigeria

Globacom, Nigeria's National Operator, has selected Acision, a leading messaging company, to provide Value Added Services (VAS) for its new mobile network in Ghana. The products deployment will include the Acision SMSC, Acision MMSC, Acision Voicemail, Acision High Speed Proxy for mobile data services and Acision Prepaid System will allow Glo Mobile Ghana to provide compelling value-added services in an increasingly competitive market.

* IMX Software and Travelex – South Africa

Travelex Retail Foreign Exchange South Africa, operated by FX Africa locally, (Travelex) has selected the Travel Money Exchange (TMX) online solution, developed by IMX Software and implemented by Business Edge, to manage its retail foreign exchange outlets throughout South Africa.

* Warid Telecom and Aircom - Uganda

Aircom International has been chosen by Uganda's Warid Telecom to provide network planning and optimisation support for its GSM and WiMAX networks. Warid will use Aircom’s ASSET network planning and optimisation tool to enhance the design, management and performance of both networks, providing improved quality of service to customers while significantly reducing network costs through professional network planning.

* Orascom Telecom and Nokia Siemens Networks - Algeria

Algeria's leading mobile operator Orascom Telecom Algeria (OTA) has announced that Nokia Siemens Networks will be the provider of its Home Location Register (HLR) solution. The Subscriber Data Management Solution from Nokia Siemens Networks will enable OTA to develop a single database for subscriber information, unifying data that is currently fragmented and thereby modernising OTA's installed base of 17 million subscribers, as well as providing additional capacity of 3 million.

* SNCFT and Nokia Siemens Networks - Tunisia

Nokia Siemens Networks has won a GSM-R contract from the Tunisian national railway service, SNCFT. ­Under this turnkey contract, Nokia Siemens Networks will supply an end to end GSM-R solution, including hardware such as base stations, base station controllers, dispatcher equipment, and hand held devices. The project will commence in Q4 of 2008 and implementation will be completed by 2010.

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INDEX

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This page last updated on December 07 2008.

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