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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 434 Nigeria’s Suburban set to operate a Lagos-Abidjan regional terrestrial fibre linkAs the west coast of Africa prepares for cheaper international bandwidth from three possible contenders (Glo One, Main One and WACS), the race is now on to provide terrestrial fibre links to take traffic to the cheapest landing station. Currently Nigeria’s Suburban Telecom is doing good business delivering a significant chunk of the country’s outgoing traffic via Cotonou through Benin Telecom. Nitel’s poor performance and high prices have created a new market in diverting traffic to a cheaper, more efficient exit point. Suburban’s CEO Bruce Ayonote outlined his plans to link Lagos to Abidjan though a mixture of its own assets and commercial deals with incumbents along the route. Q: When was the company started? We started in 1999 by doing services for the Nigerian incumbent Nitel who we supplied services and equipment. We then moved to advisory services, market research and business planning for new entrants. We had the information and skills to help companies develop their investment. We then realised that there were gaps in the infrastructure space and decided to invest in infrastructure. Q: So what services does Suburban offer? We’re organised into two business units. One of those units is a national ISP with an MPLS platform aimed at SME and enterprise customers. On that side we’ve invested in WiMAX assets (Alvarion Breeze Max). It’s a wholesale ISP selling down to tier 2 and tier 3 ISPs and a retail ISP delivering access to enterprise customers. The other business unit is a tier one IP backbone aimed at carriers, ISPs and enterprise customers. It is designed as an all-IP network. Q: So how does the business break down? We have below 1,000 ISP customers – banks, enterprises and embassies – and it exists to connect people to our IP backbone which is the largest part of the business. Q: I understand you’ve built a link to Benin? We tried to acquire that national carrier Nitel three years ago because we wanted to be able to get control of its international and national fibre assets. We didn’t succeed but we now have a two-pronged strategy: buy or build. We saw neighbouring countries as a good option to connect internationally. We negotiated with the (Beninois) Government for over 2 years to get agreement. If you say to Benin Telecom, let me get you more market, it’s interested. If you say we’ll buy your assets, it’s not interested. The traffic over the link to Cotonou is now over 1 gig and we’re about to activate over another gig of capacity. So next week we’ll deliver another 600 meg and in January 2009 we’ll deliver another 600 meg, giving us a total of 2.2 gig at that point. A certain amount of traffic is Nitel diversion traffic (away from its poorly run SAT3 landing station) but there is also new business we’re developing. We want proactively to go to new markets and develop them. Q: So you’ve got plans to connect to other parts of Nigeria and other countries? Yes, we want to build other fibre links. For example from Lagos to Port Harcourt in the South West. We’ve done capacity swaps with other carriers including MTN, Multilinks and Phase3, to take us into the north. We’ve acquired 65% of a Ghanaian company called Fibre Co which is building a fibre link from Accra to the Togolese border. We’re partnering with Togo Telecom to close the gap. Togo Telecom wants access to SAT3 at low prices. Q: Will you go beyond Accra? Yes, we want to go to Abidjan and we’re talking to Orange and Airlink about the possibility of partnering with one of them. We’re lighting up markets that are virgin. I want to be able to buy an STM1 (from Togo Telecom) whereas previously the traffic was 4 E1s. Instead of it going out through satellite and being paid in dollars elsewhere, it will go out through fibre and be paid locally. Q: What’s the price comparison like between your domestic Nigerian routes and the route to Cotonou? Currently Lagos-Port Harcourt is about US$3,000-3,500 per meg and Lagos to Cotonou is about US$2,000 per meg. Q: So presumably the international leg is also cheaper? It’s about US$2,000 from the UK to the landing station in West Africa but prices can vary from below US$1,000 up to US$3,000. Q: Won’t the domestic backbone and international rates come into alignment with each other? It will for the Internet but it might not for private (leased) lines. We want to be able to provide access to Niger, Burkina Faso and other countries but there are currently gaps. We’re creating an MPLS backbone across the region. Our strategy is to penetrate as much as possible in West Africa with the right build-out and costs and depending on the gross potential. Q: Won’t you be competing with Main One, Glo and WACS once they’re completed? For us, we’re moving towards building a platform. This new infrastructure will improve the diversity of our networks. It will reduce prices on infrastructure, moving us more towards service business. The challenge is that global trends will affect the present state (of prices) in about 12-18 months time. Q: What’s the investment been so far? We’ve put in US$75 million for both regional and national backbones and working capital has been an additional US$25 million. 90% of that has been raised locally with the balance from two facilities, Exim Bank and funds out of Dubai. Q: When will household retail broadband arrive in Nigeria? The current major challenge is access to bandwidth. Before we entered the market, there was something like below 3% penetration. We’re now provisioning STM4s and we have one customer who wants to buy an STM16. So this is the kind of capacity we’re addressing. There is also the access and last mile initiative by (the Nigerian regulator) NCC and the only thing stopping it is bandwidth, We had a meeting with NCC looking at existing bandwidth and we estimate the initiative will give a 6-7% spike to the market. This will lead to mass adoption but if not, natural need will make the market increase but much more slowly.
Millicom Wins Third Telecoms Licence in RwandaMillicom International Cellular S.A has emerged the preferred bidder for Rwanda's third national telecoms licence against Telecel Globe Ltd (Orasom’s new Sub-Saharan vehicle), Zain and Larrycom-Expresso. The deal has been approved by Rwanda's cabinet after evaluating the technical and financial results of the bids. The cabinet announced that Millicom was preferred because of its highest technical score (83.49%) and best financial offer (US$60,007,000) against Telecel Globe which is the first reserved bidder with 75.87% third technical score and second highest US$55.5million financial offer. Zain (formerly Celtel) emerged the second reserved bidder with the second technical score (80.7%) and the lowest financial offer (US$45million). Larrycom-Expresso's financial offer was not opened due to its lowest technical score which was below the required 70%. Millicom International Cellular S.A is a global telecommunications group with mobile telephony operations in 16 countries in Asia, Latin America and Africa. The group's mobile operations have a combined population under licence of approximately 291 million people. It is currently in dispute with the Senegalese Government over its licence in Senegal. It announced that it will hold 87.5% of equity in a newly created joint venture company in partnership with Marathon Corporation, an established local company with numerous business interests in Rwanda. The joint venture will pay US$60million for the 15 year licence. However, for Millicom to finally sign the 15 year licence, it will have to fulfill terms and conditions of the licence as applied to the existing two licences in the country, namely MTN Rwanda and Rwandatel. Col. Diogène Mundenge, director general of Rwanda Utilities Regulatory Agency told media in Kigali the government was now going to commence negotiations on the licence with Millicom. As winner should be ready to sign a 15-year duopoly licence by the end of this year (December 2008). Rwanda has 10million people but only between 1million and 1.2 million people use mobile communications services provided by MTN Rwanda and Rwandatel. On estimate, this is about 11% of the entire population in which MTN Rwanda leads the market with 1million mobile phone users. (Source: EA Business) Zambia to Privatise ZamtelZamtel will be partly privatised in about four months time to save it from total collapse, Communications and Transport Minister, Dora Siliya said last week. Addressing Zamtel workers at the Zamtel and Zampost staff college in Ndola, Siliya said an asset evaluation company to determine the company's value and liabilities would be announced on Saturday this week in Lusaka. The evaluation is expected to be completed by Christmas and a strategic equity partner will be found after a tender procedure by April next year. Siliya said that Government had realised that even though Zamtel was dealing in a profitable sector, it had been operating at a loss for many years. "I want to assure you that I have your welfare at heart and that you have a partner in me. I am, therefore, asking for your total cooperation on this matter," Ms Siliya said. She said there was hope to get the best deal for the value of the company and also the best deal for the workers even in the face of the current global economic recession. She said the new partner needed to bring in capital and a new structure of doing things at the company as the current business structure and the Government involvement was not helping the company. Siliya said communications and transport was a profitable sector but that the Government was looking for a deal that would ensure that Zambians still benefit from the (monopoly) international gateway. It was also too early, Siliya said, to determine if there would be any retrenchments and hoped for a smooth transition like that of Zanaco. Zamtel managing director Mukela Muyunda assured Ms Siliya of the company's total support. National Union of Communication Workers president Patrick Kaonga said in an interview that the union was in full support of a strategic equity partner as long as jobs and financial security were guaranteed. (Source: Times of Zambia ) MTN Uganda To Introduce Seamless NetworkMTN Group is to introduce a seamless roaming facility for all its 21 operations in Africa and the Middle East by mid-2009, a statement from the group said. The seamless roaming service will allow pre-paid subscribers travelling between participating countries to recharge or top up their accounts using airtime vouchers from the host country, the statement added. "MTN One World is another effort that underscores our commitment to continually provide innovations that improve services to meet our customers' needs," Nozipho January-Bardill, the MTN Group executive of corporate affairs and spokesperson, said. She said calls made by the roamer would be charged at the local rates of the participating country. She said Cameroon, Ghana and Nigeria had already launched the roaming solution, while Benin was scheduled to launch it by the end this month. "We recognise the growing number of travellers within the region and believe this service will offer subscribers an appropriate value proposition." (Source: New Vision) Tanzania predicting 25% growth in telecoms by mid-2009; awards new licencesThe director general of the Tanzania Communications Regulatory Authority (TCRA), John Nkoma, says he expects the country will be home to 13 million fixed and mobile telephone connections by mid-2009, up 25% on the figure reported in mid-2008, with much of the growth coming from cellular connections. Nkoma notes that telecoms is one of the fastest growing segments in the country, increasing subscribers by 20.1% in 2007, up from 19.2% the previous year. The TCRA official notes that barely four years ago Tanzania could only muster two million fixed and mobile lines. ‘We do expect that by the end of this year, we should be hitting maybe 10.5 million or eleven million [subscribers]. It's largely driven by mobile,’ he said. By 30 June 2008 Tanzania had a total of 10.43 million fixed and mobile users, up from 8.48 million at the start of the year. However, with overall penetration of about 25%, the TCRA says there is still ample room for growth in the market, making it an attractive prospect for new entrants. Last week the TCRA issued new licences to two local companies, Egotel and MyCell, for fixed line and mobile networks, among other services. The regulator has also granted Zain Tanzania a concession to deploy an international gateway in the country. Zain is investing USD180 million on its Tanzanian networks and joins four other firms licensed to operate international gateway services. Meanwhile, another company, Smile Communications Tanzania, 65%-owned by Mauritius' Smile Telecoms Holdings, has an application pending to enter the telecoms sector in the future, while recently licensed HITS Telecom Tanzania and Dovetel, are also in the process of rolling out their networks, Nkoma said. (Source: Telegeography) In brief:- Warid Telecom looks set to get a licence in Cote d’Ivoire, bring the total number of operators to seven. - The Independent Communications Authority of South Africa (ICASA) has called for written submissions for its carrier pre-selection draft regulations. Submissions are to be handed in by 9 January 2009, with oral hearings expected to take place on 21 and 22 January. The regulations proposed by ICASA follow the form of pre-selection that requires callers dial a code to select the carrier before placing their call, as opposed to the alternative form which allows consumers to select a carrier during the call. - Angola Telecom plans to complete the digitisation of its fixed line network over the next few years as part of a wider plan to modernise its services, Angola’s incumbent telco would expand its fixed communications network and install a wireless access telephony system and fibre-optic cables. The restructuring work was underway in most of the country’s 18 provinces, as was the integration of a new workforce, whilst a plan had been initiated to link the province of Malanje to the rest of the national network via optical fibre; a first phase of the project connecting the area to Luanda is currently in a test phase. - 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. - Orange has announced the commercial launch of ‘Orange Money’ in Ivory Coast in alliance with BNP Paribas. This is the Orange group’s first mobile-based payment and money transfer service in Western Africa. Orange customers do not need a bank account to subscriber to the service which is activated free of charge and without any minimum deposit. Customers will be able to deposit and withdraw money from the Orange Money account, transfer money from one person to another, purchase call credit 24 hours a day and pay bills. BNP Paribas’ Ivory Coast subsidiary BICICI is in charge of issuing and guaranteeing the electronic money.
Mobile Internet Usage On the Rise in NigeriaMobile internet use is growing while the number of people going online via a PC is slowing, analyst firm Nielsen Online has found. Some 7.3m people, according to the analyst firm, accessed the net via their mobile phones, during the second and third quarters of 2008. This, according to Nielsen Online, is an increase of 25% compared to a growth of just 3% for the PC-based net audience - now more than 35m. It also found that the mobile net audience was younger and searched for different things. While Google remains the most popular site for those logging on via the desktop, on mobile internet BBC News is the most visited site, with nearly a quarter of mobile Internet consumers using it. "This highlights the advantage of mobile when it comes to immediacy: people often need fast, instant access to weather or sports news and mobile can obviously satisfy this," said Kent Ferguson, a senior analyst with Nielsen Online. "The fact that weather, sports, news and e-mail sites make up the majority of leading mobile sites shows that mobile internet is mainly about functionality and need at the moment as opposed to the more entertainment and e-commerce-focused makeup of the leading PC-based sites," he added. Perhaps unsurprisingly the mobile net audience is younger than its computer based counterpart. A quarter of the mobile net audience is aged 15-24, compared to 16% for the PC. While 23% of the desk-top based internet population is 55 or over, only 12% of mobile internet audience is. There are several factors for the dramatic rise in mobile net use, thinks Ferguson. "The barriers are finally being lifted thanks to operators offering flat-rate tariffs for data and more user-friendly handsets and improved network technology," he said. It is thought that mobile users spend about 10 minutes online per session with an average of around seven sessions per month. Increasingly mobile firms are encouraging users to venture online via their handsets. Increasingly buttons for Google and popular social networks are being incorporated on handsets. Mobile phone firm 3 has recently launched a so-called Facebook phone, which integrates the networking site with the traditional functions of a mobile. (Source: Vanguard) Will Seacom Enable a sea change?Bandwidth, bandwidth, bandwidth. It is a problem which is as old as the Internet is in South Africa and which is seemingly impossible to solve with an intractable Department of Communications, an obstinate monopoly and an unwilling government as primary obstacles. However, the telecommunications industry in SA is, if nothing else, endlessly optimistic that the situation will change - and so it does, albeit rather slowly - to deliver the bandwidth necessary to enable real broadband services. The latest glimmer of hope comes in the form of Seacom, an undersea cable which will link the pointy part of Africa to the rest of the world. When it is commissioned early in 2009, Seacom is expected to add a whopping great 1.5 terabytes of connection capacity to existing links. With that, believes Louis Yssel, CEO of YSL Group, SA consumers should start seeing the Internet as it should be - along with the benefits that high-speed connectivity enables. "What we have thought of as a fast connection in this country to date, is not even broadband. International access remains the real bottleneck which inhibits the capability of especially voice and video applications to run satisfactorily," Yssel says. He questions how many SA Internet users access multimedia content or connect with friends or colleagues around the world using video communications. "The applications to do so are available, some are even free. But it is the old bugbear of costly or insufficient bandwidth which limits the usefulness of these applications," he says. Scaling out from individuals making calls, he says the many other benefits which are presently curtailed include the ability to deliver lectures or classes by video link, or for doctors or other professionals to render assistance remotely. Or for companies to rapidly exchange important data. "More bandwidth means these and a hundred other scenarios can happen," Yssel says. He draws particular attention to unified communication, which research house Gartner expects to go big in 2009. "South Africans can't afford to be left behind as the rest of the world - with ample bandwidth - forges ahead with improved methods and modes of communication. The real power of unified communications, that of integrating voice, video and every other method of exchanging messages except postal items, depends on bandwidth. More bandwidth will deliver a more satisfying user experience," he states. However, the inevitable fly in the ointment concerns how access to that bandwidth is to be managed. "The best case scenario is that the rights are sold to competing organisations; the worst case scenario is that it is monopolized by Telkom. That will result in a rerun of the old challenges and limitations with which the market has had to deal since day one." Yssel retains the optimism common to many ISPs which have been banging their heads against a wall for upwards of a decade. His only concern, however, as Seacom approaches completion, is whether or not the seemingly massive 1.5TB capacity be enough. "We've seen that with hard drives. Once people have access to digital content and the boundless possibilities of the Internet, capacity never seems to be sufficient," he concludes. (Source: Biz-Community) Multi-Links Telkom Begins EVDO Broadband Internet Services in LagosNigerian fixed wireless phone operator, Multi-Links Telkom last week rolled out its broadband EVDO package, an innovative Internet service that would ensure a seamless connection to the worldwide web, to its Lagos customers. EVDO - is a mobile broadband service providing high speed Internet access for a wide range of applications and customers, ranging from professionals, mobile executives to students. Chief Sales and Marketing Officer, Multi-Links Telkom, Dipuo Msimang, while announcing the commencement of the service in Lagos told newsmen that the company's Blue 3Gbroadband offers its subscribers a web browsing experience designed to achieve more no matter who you are or for whatever purpose you are using the Internet. She said that the Blue broadband which is powered by the Rev. A EVDO technology is a personal wireless service designed for a wide range of customers from business people to students. Explaining the uniqueness of the product, she said that this latest offering from the stable of Multi-Links Telkom for the growing tribes of telecommunications consumers in Lagos is always on with seamless roaming and backward compatibility to 1x. "The Blue broadband Service works on same cell sites as cell phones. Blue broadband allows you to be connected to the internet wherever you are. You can download large work files, photos, spreadsheets and email with incredible ease," she said. The CSMO added that the the product allows subscribers to download and run video clips in real time. Blue broadband provides you service outside of cable - modem or DSL areas. You can access your corporate VPN (Virtual Private Network). She stressed that this package is designed especially for professionals who are into heavy file download, 3D artists, Architects, Graphic Artists and other professionals. With the 3G Blue Broadband offering, she said that speed is key. "And that's exactly what Turbo tariff plan offers you. Supersonic speed on the Internet. So you can achieve so much more in quick time. Also cool for anyone who loves to live in the jet age. There is no speed limit on the Blue Turbo," she explained. The special features of the new broadband Internet service, according to her include: highest EVDO data downloads currently available, instant access to the internet, download of streaming media, music, heavy files etc, dual function (EVDO Rev A and 1X data rates) and download speeds of up to 900 kbps. The icing on the cake for the Lagos market is the introductory discount which is to run until the end of first quarter of 2009. "There is a special discount on tariff for the first two months. This special offer lasts till 31st March, 2009," she said. The 24 hour package (Blue Always) costs just N20, 999 during the promo, price at the end of the promo is N25, 999. Those opting for the weekend package (Blue Weekend Bliss) will only pay N7, 999 during the promo and N11, 999 at the end of the promo. Other packages are Blue @ Work going for N15, 999 during the promo and N19, 999 post promo price. Also on offer is the Blue All Night for N11, 499 during the promo and N14, 499 post promo price. This product had earlier been launched in Abuja a couple of weeks back. The new service is planned to be available across Multi-Links Telkom network shortly. (Source: Vanguard) In brief:- Mainstreet Technologies has obtained its landing station licence in Ghana. - MWEB Namibia is offering a free business Internet audit to MWEB Namibia subscribers and Namibian internet users.The free audit will be available until the end of December 2008.It will review organisations' use of internet technology in supporting business for efficiency and effectiveness.The audit will validate the security, reliability, integrity, and privacy of information systems. - Gicumbi Community Telecentre in Rwanda has been operational for the past eight months. It is one of the twelve pilot project telecentres completed so far and will be the first to be officially launched this month.The rolling out of the telecentres is the mandate of the Rural and Community Access (RCA) unit, which aims to bridge the ICT gap existing between the rural poor and the urban dwellers, by implementing the ICT knowledge-based projects such as the said telecentres.
Kano Makes ICT Training Compulsory in SchoolsKano State government has said it would make the teaching of Information and Communication Technology (ICT) mandatory at all levels of education and that it had commenced the training of teachers on its use, as well as upgrading libraries to digital ones. Governor Ibrahim Shekarau, who said this during the commissioning of ICT centres in three the higher institutions in the state, said ICT education was a core aspect of the state's economic development roadmap, which aimed at developing skilled manpower in the sector, to make the state self-reliant. While urging staff and students to make optimal use of the centres so as to have a more fulfilling educational experience, he said government would partner with the private sector to make the state one of the key players in the ICT revolution. (Source: This Day) ICT Students Flock to Polytechnic in NamibiaThe number of young people interested in pursuing a career in Information Communication Technology courses at the Polytechnic of Namibia has grown over the past years. Rector of the Polytechnic Dr Tjama Tjivikua says what started as a one-year National Certificate with enrolment standing at 40 students in 2006, has grown to 700 applications for the 2008 intake. The 700-student enrolment is broken down into 205 students for Basic Computer Studies Diploma; 110 students enrolled in the Business Computing Bachelor Degree; 277 students in Computer Systems and Networks Degree supported by the internationally recognised Cisco Academy; and 76 students in Software Engineering. There are also 12 students that have enrolled for the two-year, full-time Master of Technology qualification. Tjivikua added at first year level, there are 205 students; second year has 288 students; third year 204 students, while fourth-year level enrolment has 71 students. A total of 250 students, or 37 percent, are female. The enrolment rate for full-time and part-time is 382 and 298, respectively. "The intake is limited by classroom and laboratory space. Surely, this indicates the popularity of the courses. The selection process is fair - 25 points in the school leaving qualification (NSSC) plus the passing of an aptitude test," Tjivikua said. Tjivikua regards the enrolment rate as high, the maximum that the institution's resources currently permit. The Polytechnic boasts a modern state-of-the-art infrastructure: a fibre optic network, wireless connectivity, well-equipped facilities (classrooms, laboratories) and e-systems. The demand for ITC is high not only in the country but the entire SADC region. Tjivikua says the Polytechnic intends to expand its intake in contrast to some western countries where university enrolment in computer science and IT is falling. He attributes that trend to the perception that the subject is difficult. Due to the renowned name Polytechnic has created for itself, Tjivikua says, diploma/degree students are in demand by the industry. "Namibia's various telecommunications companies and organisations such as MTC, Telecom, GijimaAst and various ministries request our students to work within their organisations because each of our students gains comprehensive knowledge and experience, which is needed in today's ICT competitive market," he said. Actually, the Polytechnic's qualifications are all designed in partnership with stakeholders and benchmarked against international frameworks. Based on the positive feedback the institution receives from the Curriculum Advisory Committees for the School of IT (which are a group of industry professionals in various IT specialisations), graduates are prepared in accordance with the ICT employment market, without sacrificing academic rigour in the courses. (Source: New Era ) Kelly Eager to Fill Computer Staff Shortage in South AfricaEmployment service provider Kelly Group is upbeat about growth opportunities in some segments of its business despite tough trading conditions and a margin squeeze in other segments in the face of an economic downturn. Opportunities are particularly strong in information and communications technology (ICT), and the group recently bought ICT skills development company Torque IT for R37,9m. It has also set up an ICT placement division. CE Grenville Wilson said the shortfall of ICT practitioners was estimated at 70000, which offered scope for Kelly. The company posted solid results for the year to September, despite the economy taking a turn for the worse. Operating profit rose 28% to R146.9m, while headline earnings increased 30% from 78,46c to 102,3c per share. Revenue rose 12% to R2,2bn. Despite tighter conditions in the second half, the company managed to improve margins from 5,8% to 6,6%. Wilson attributed the performance to productivity gains, technological advances, cost savings and expansion into new sectors. But he cautioned that margins and volumes were set to come under pressure. The slowdown was already evident in lower earnings and slower revenue growth in the second half . The South African operations grew pre-tax earnings 33%, but growth in the second half, while at a robust 29%, was sharply lower than the 40% of the first half. And while its flagship brand, Kelly, grew earnings before interest and tax 18%, most of that came in the first half, with growth slowing to 15% in the latter half of the year. The rest of the brands also showed strong growth in pre-tax earnings, the group said. Kelly Industrial, however, posted an under-par earnings growth of 12%. The division's performance was marred by bad debt write-offs during the year. The group's US operations had a tough year, but managed to maintain earnings at the previous year's $2,8m. Conditions are expected to remain tough, but Wilson punted the ICT market as one segment that could help offset the slowdown in other segments of the business. A dividend of 36c a share was declared, up 20% on the previous year's 30c. (Source: Business Day) In Brief:- Microsoft’s consoles cost around 13% less in South Africa than in America. Recently an article was written comparing the PS3, Xbox 360 and Wii in terms of pricing. It was shown that while the Xbox 360 has become far more affordable over the past year, the Wii’s price has increased by about R700.
Vodafone Targets Telecoms Market in NigeriaThe largest mobile telecommunications network company in the world, Vodafone Group, has expressed its desire to enter the Nigerian market. Speaking at a conference in Barcelona, Spain, the Chief Executive Officer of Vodafone, Mr. Vittorio Colao, who described Nigeria as an emerging telecoms market, said the firm was still interested in investing in the country's telecoms sector. Vodafone's renewed interest is coming as it beat off Nigeria's Globacom's attempt in acquiring the majority shares of Telkom in Vodacom, South Africa. Colao said: "Despite the fact that Vodafone has expanded its operations tremendously across emerging markets in the past two years with acquisitions in Turkey, India, South Africa and Ghana to make up for slower growth in Europe, the Nigeria telecoms sector is a prized and valuable market that we will be glad to operate in." Commenting on purchases to expand Vodafone's business in established markets, Colao said he was "supportive of potential opportunities" which help create value for shareholders and cut costs. Former CEO of Vodacom, Alan Knott Criag, has said in an interview with journalists before he retired that company had regretted walking out of the Nigerian telecoms market. (Source: This Day) Orange is in talks to buy GSM license in West AfricaFrance Telecom SA, Europe's third largest telephone company, said it's in talks to buy a phone license in Togo in western Africa. The company didn't disclose financial details. The license would give France Telecom the right to operate in the country under its Orange brand. Togo had an estimated population of about 5.9 million in July, according to the CIA World Factbook. France Telecom said about 25 percent of Togolese have a mobile phone. The company expanded in Kenya and Uganda this year as the former French monopoly seeks faster growth than in its home market. France Telecom last month set up a joint venture in Uganda with Hits Telecom Uganda and plans to invest $200 million in a mobile network there in the next three years. Telkom Kenya Ltd., a joint venture between France Telecom and the Kenyan government, started operations in September. (Source: Republic of Togo) Telkom SA Deal 'Boosts COPE War Chest'The South African Communist Party (SACP) has called for Telkom's deal with Vodafone to be cancelled, saying the manner in which it was put together was not illegal but highly unethical. The party also criticised communications department director-general Lyndall Mafole-Shope, now a leading member of the African National Congress (ANC) breakaway group, Congress of the People (COPE), for rushing the deal through. The SACP thought the proceeds of the deal were funding the war chest of COPE, SACP general secretary Blade Nzimande said last week after his party's central committee meeting at the weekend. "We also call on the government to reverse the scandalous Telkom Christmas gift of Vodacom shares to private shareholders at a cut-price rate, and the selling of these to Vodafone. In particular, the role of the director-general in the department of communications, and of the former ANC presidency spokesperson Smuts Ngonyama and his Elephant Consortium, in this ripping off of what was once a national asset, requires close scrutiny. "We believe that some of the proceeds of this hurried fire sale are finding their way into the war chest of the Shikota gang of three," Nzimande told reporters. Last month Telkom posted interim results showing R13bn of its R29.8bn revenue came from its 50% Vodacom stake. The mobile operator contributed almost half of Telkom's R6,6bn operating profit by generating R3.2bn of the total. Once Telkom sells 15% of Vodacom to joint shareholder Vodafone and unbundles the other 35% to its own shareholders, it will post far lower figures. SACP deputy general secretary Jeremy Cronin questioned the haste, saying that the communications department was notoriously slow at transformation. "We have good reason to believe, but cannot prove, that the proceeds will go to the Shikota gang of three. But our concerns are not narrowly confined to Shikota and we are on record about fattening up state-owned enterprises and then rushing through fire sales," he said. But Ngonyama dismissed the SACP's call saying it was nothing but a "smear campaign. They are wasting their time, they can investigate but will find nothing. This is a smear campaign against COPE by the SACP and it is consistent with their destructive campaign about anyone who disagrees with them. " Ngonyama said Elephant Consortium bought the shares at market value from an overseas investment company so it was not even a black empowerment deal. Asked whether the SACP had concrete evidence of the allegations, Nzimande said it was public knowledge that Ngonyama benefited from Telkom shares sold at next to nothing. "Telkom shareholders are not going to benefit. This deal has been done behind the backs of South Africans. Vodacom was the cash cow for Telkom. There is definitely more to this deal than meets the eye," he said. He also said Telkom's sale to Vodafone amounted to selling off the "family silver". (Source: Business Day) Shares in MTN slumped before the market closed last TuesdayShares in African mobile phone giant MTN slumped before the market closed on Tuesday as news of Nigeria's currency free-fall against the dollar stoked concerns about MTN earnings, a fund manager said. Shares in the company closed down 11.63%, or R12.10, to R91.90, under-performing the JSE Top 40 index, which ended down just 2.90%. "It's basically on the devaluation of the Nigerian naira which will hamper MTN earnings out of Nigeria," said Michele Santangelo, a fund manager at Cortex Securities. Media reports suggest that the naira is in free-fall against the dollar after that country's central bank limited the amount of US dollars sold at its fortnightly auction on Monday. (Source: Telegeography) In brief:- Starcomms Plc, the only telecomm company to be listed on the Nigerian Stock Exchange (NSE), has said it is committed to ensure Nigerian Telecommunications Limited (NITEL) comes out of its present predicament no matter what it would cost the company. - Insurers providing cover for NigComSat-1 now parked in space may pay as much as N17 billion in claims.The satellite, built by the China Great Wall Industry Corporation at a cost of $340 million, became the first African geosynchronous communications satellite when it was launched in China on May 13 last year. A consortium of international insurance firms - including SpaceCo of France, Munich Cray of Germany, and the People's Insurance Company of China - reportedly provided cover for the satellite.Local insurance companies, which banded together as co-insurers, may have retained about 10 per cent of the risks and shared an equivalent percentage of the premium. They are now expected to contribute an equivalent percentage of the total claims. Telecoms, Rates, Offers and Coverage (briefs)- Vodacom has cut the out-of-bundle price for its 10 GB data package subscribers to 50c per MB, a 50% reduction on the previous R 1.00 per MB. The out-of-bundle rate for other data packages remain the same.Telkom has recently launched their 7.2 Mbps HSDPA service, undercutting MTN and Vodacom’s data bundle prices and offering an out-of-bundle rate of 30c per MB. Neotel’s out-of-bundle rate of 8c per MB is the lowest in the market, and has been described as ‘way below cost’ by some observers close to the cellular operators. - Mobile networks now reach 109 of Mozambique's 128 districts, compared with 73 in 2004, equating to 85% coverage. The fixed network has also grown, but only slightly. Zucula said that in 2004 there were 75,256 subscribers and this figure rose to 78,324 in the first half of 2008, which was explained by geographical expansion. Fixed line operator TDM’s network currently covers 116 districts, compared to 68 in 2004. - Starcomms had over shot the two million subscriber base mark by hitting 2.2 million in subscriber base.
Etisalat, MTN, Zain in Pay-Buy-Mobile Handsets Trials in NigeriaEtisalat, MTN, Zain and 42 other global GSM network operators are currently carrying out trials that will lead to the commercial use of mobile phones to buy and pay for goods in shops and at other commercial points. The success of the trials and the commercial application of the project will further push the concept of mobile commerce and bring about more closely the much touted cashless society. Other GSM operators, who have joined in the trial covering countries such as Australia, Canada, France, Japan, Korea, Malaysia, Taiwan, Turkey and USA include AT&T, Brasil Celcom, Telecom Chunghwa, Telecom CMCC, Orange, Vodafone, Telecom Italia, Swisscom and TelefÛnica O2. Trials are not taking place in Nigeria yet but Nigerian operators involved in the pilot project are expected to provide the service to Nigerian users once the service is perfected and it is put to commercial use. The trial, currently tagged 'Pay- Buy- Mobile Initiative', is being initiated by the GSM Association (GSMA), the global trade group for the mobile industry. Already the GSMA has called for full Near Field Communications (NFC) functionality - including the standardised 'Single Wire Protocol' interface - to be built into commercially available mobile handsets from mid-2009, in order to ensure that consumers can reap the benefits of mobile payment services as soon as possible. The GSMA's Board - in a meeting in November held in China - fully supports the need for the ETSI endorsed 'Single Wire Protocol' standard to provide the interface between the Universal Integrated Circuit Card (UICC, or SIM card) and the embedded NFC chipset within the handset. The NFC chip can communicate with existing contact less reader to deliver a wide range of secure, interoperable and transparent services, such as credit and debit payments. A series of operator trials - under the GSMA's 'Pay-Buy-Mobile' initiative - have demonstrated that consumers can use UICC-based NFC handsets to quickly, easily and securely pay for goods and services in shops, restaurants and train stations. The Chief Executive Officer (CEO) of GSMA, Rob Conway, said in a statement, "There is no doubt that there is a huge latent demand for a large variety of mobile transaction services, of which there is universal interest in proximity payments, as trials across the world have already shown. We are committed to ensuring that mobile payment services are delivered as efficiently and cost effectively as possible. But this will require device manufacturers to make sure that the vast majority of commercially available handsets incorporate the Single Wire Protocol and Near Field Communications features as standard." "Doing so would enable the industry to leverage significant economies of scale, and ensure greater accessibility of NFC services for mobile users, added Conway." This call for handsets is supported by recent operator trial results, which indicate a growing consumer demand for mobile payment services. Trials are underway across eight countries involving nine mobile operators as part of the GSMA's Pay-Buy-Mobile initiative. Further pilots are planned across 14 countries by 15 mobile operators. In Taiwan, in a trial of over 200 users, FarEasTone found that 90 per cent of people felt positive toward the new service. 80 per cent of people were satisfied that the service is secure, and 40 per cent said they would switch their monthly spending to a mobile credit card service. Seven banks and four mobile operators - including Orange and SFR - involved in the "Payez Mobile" trial in France have announced the results of trials conducted with almost 500 sales outlets and nearly 1000 trial lists. Over 90 per cent of trial lists said they found contact less mobile payment convenient, fast, and easy to use. In addition, 94 per cent declared that they would recommend it to their friends and family. Merchants welcomed the possibility of offering to their customers an innovative payment solution, with over 80% saying they appreciated the speed and cutting-edge appeal of mobile contact less payment. Equally, in Korea, SKT and KTF found that m-transportation was very popular with users, and this is likely to translate to other mobile payment services. Approximately 450,000 users of the "T-money" service were quick to adopt the service as it is convenient and compatible with existing readers. According to KTF's survey, 85 per cent of m-transportation users indicated satisfaction levels were 'very high'. 80 per cent of them believe that using a contact less mobile phone is much more convenient than getting their wallet out to use public transportation, and would continue to use the mobile service. "T-money" attracts users not only for the public metro and bus, but also for small transactions such as buying goods from convenient stores by simply tapping on the contact less reader. In July the GSMA on behalf of operators issued a detailed Device Requirement document to a wide range of vendors and suppliers in the 'Pay-Buy-Mobile' ecosystem. 37 key players responded, giving a clear picture of the core requirements for any SWP/NFC device. According to AT&T Senior Vice President, Architecture and Planning Kris Rinne, one of the first operators to trial mobile payments, "we've seen first-hand, the willingness of consumers to adapt to this new payment channel which is very much dependent on the availability of NFC handsets and the associated ecosystem. We hope that the GSMA's delivery of a consolidated set of minimum requirements will accelerate the worldwide delivery of NFC-enabled handsets to the market." "We observed great potential for mobile payment services through T-money. We believe it is changing the behaviour of users and expect it to see significantly increasing demand over time. Supportive actions and collaborations with banks and especially handset vendors will help to speed up this demand," said Sang Ryul Lee, VP of Transaction Business Group, KTF, a leading HSPA operator in Korea. Mung-Ki Woo, VP Payment and Contact less at Orange, said, "Orange has run trials in France, Spain and the UK which show a consistent appeal to consumers in all countries for SIM-based, operator managed, mobile NFC services. For Orange, mass deployment is now mainly dependent on handset manufacturers providing a large range of adequate handsets." Dr. Nikolai Dobberstein, Head of Products and New Businesses of Maxis Communications, said, "As Malaysia's leading mobile operator, Maxis is very enthusiastic about enabling mobile payments via NFC and leveraging the growing contact-less payment infrastructure in Malaysia. We are collaborating with strong partners on this initiative, Maybank and Visa International and our focus is to establish a mobile NFC eco-system for commercialization which provides Malaysian customers with accessible & easy to use mobile payments." "We are pleased to be part of this pioneering and innovative project trial as it will further simplify payment transactions and in the long run, help spur the growth of mobile commerce our country. (Source: Independent Lagos) Standard Chartered Starts Mobile Banking With PompIt's new, it's exciting and it's anywhere and at anytime; but to enjoy it you must be banked with Standard Chartered Bank. This is the new age of mobile telephony usage to interface with your bank. During the grand launch of Mobile Banking otherwise known as M-banking at Kampala Sheraton's Rwenzori Ball Room on November 25, 2008, the head of marketing at Stanchart, Leah Waichungu said the customer can check for his bank balance, transfer funds to another Stanchart customer, pay bills to the national water supply agency (NWSC) and the national electricity supplier UMEME and a host of other transactions that you would normally perform in the banking hall. According to Herman Kasekende, the Head of Retailing Banking; the facility is open to all customers new and old and for all new customers, they will automatically be signed in to M-banking while old ones will fill in a simple form available at all Standard Chartered branches country wide. "You can pay school fees to institutions that bank with us from New York, Nairobi, Dubai or China using your phone. And you do not need a special mobile phone," Kasekende explained. Stanchart's M-Banking is pioneered in partnership with Warid Telecom and it will soon roll out to Zain subscribers. Kasekende explained that all a customer has to do is press *177# and then he/she is onto M-banking. And the customer need not remember any transaction format. The service is available for customers on international roaming at no extra operational cost. The only charge attached to the service is just UShs500 (less than half a US dollar) for each transaction that you perform just as it is on the Automatic Teller Machine (ATM) and Warid Telecom will be charging a flat fee of UShs300 (quarter of a US dollar) to access this banking platform. Lamin Kemba Manjang, the CEO Stanchart Uganda said: "This is a new revolution in banking whereby the bank takes the service to the customer other than the customer going to the bank. This is enabled through his/her mobile phone. And Uganda is the first country under the Standard Chartered Bank Group to launch this product." The idea behind mobile banking is to help the banking customer to transact on his mobile phone without the hassle and bustle of the bank hall environment of requesting for a cheque book statement and bill payment by having to line up. Raheel Ahmed, the regional Head of Consumer Banking for Africa based in Dubai explained that Standard Chartered values customer mobility and therefore, the bank is committed to offer easy, fast, secure and innovative means of interfacing with their esteemed customer. "We are glad that we have partnered first with Warid Telecom in Uganda which has also positioned itself as a giant in innovation and excellence which, at Stanchart we consider a tradition," Raheel said. Raheel said Stanchart has 160 branches in 13 African countries and employees over 6,000 permanent staff. The bank has been in Uganda since 1912 as the first bank to open a branch here while in the rest of Africa; since 1863. The bank has strong bases in Asia and the Middle East and is listed on the London Stock Exchange. Meanwhile, in a separate interview with The East Africa Business Week, Zul Juvaid, the CEO Warid Telecom in Uganda told this reporter that M-banking is not new in their Middle-East stronghold and he confessed that he last interfaced with his banker about seven years ago. He said Warid Telecom family is extremely privileged to pioneer this innovation with a pioneer bank in Uganda. "Because our signal is clear everywhere in Uganda and our roaming service is up to date; you can be sure of 'no dropped' M-banking transactions on our network," he added. (Source: EA Business)
People* The nine-member Board of Gamtel comprises of Katim Touray, former managing director of Gamtel as chairman and Mustapha Njie (TAF), as vice chairman of the new board. Other members of the new board include Foday Ceesay, acting Chief Executive Officer of Gamtel/Gamcel; Ebou Ceesay, acting chief technical officer of Gamtel; Banding Sillah, acting chief financial officer; Muhammed Jammeh of the University of the Gambia (UTG); Lawyer Cherno Marenah of the Attorney General's Chambers; as well as two permanent secretaries from the departments of state for Communication and Finance. * The Minister in the office of the President in charge of Information Communication Technology (ICT), Science and Technology Professor Romain Murenzi on Friday won an Africa ICT achievers award in recognition of his dedication to the proliferation of ICT in Africa. 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 * REVENUE ASSURANCE FOR HIGH GROWTH MARKETS 18th-21st January Mövenpick Hotel, Dubai Revenue Assurance for High Growth Markets is the ideal place to meet the leaders who are developing and implementing solutions to the revenue management, assurance and billing challenges posed by the expansion of new services and proliferation of competition.For further information please visit http://www.iir-events.com/IIR-Conf/page.aspx?id=16215 * TELECOM FINANCE 2009 27th – 29th January 2009, Renaissance Chancery Court Hotel, London, UK Now in its fourth year, the TelecomFinance 2009 Conference and Awards Dinner will gather an exclusive group of the global telecom industry’s leading decision makers and visionaries to debate the challenges and opportunities we face in 2009. Featuring a who’s who of top-ranking investment bankers, corporate lawyers, C-level executives, consultants and private equity professionals, TelecomFinance 2009 is the year’s must-attend event.The conference will deliver insight from industry leaders, present challenging panels addressing the sector’s most significant questions and offer an opportunity to meet colleagues and competitors from across the globe.For further information please visit: www.telecomfinance.com/2009 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* Etisalat Nigeria and Alcatel-Lucent - Nigeria Nigeria's Emerging Market Telecom Services Ltd (EMTS), operating as Etisalat Nigeria, last week appointed Alcatel-Lucent as preferred equipment company for the deployment of its new mobile cellular network.Under the multi-million Euro contract, Alcatel-Lucent is expected to deploy the network in the country on a turnkey basis and as well provide related infrastructure such as towers, masts and power systems. The contract was secured through Alcatel-Lucent's flagship company in China, Alcatel Shanghai Bell.
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