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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 442 20th February 2009 Financial tide goes out on incumbent telco privatisations - who will buy Africa’s “problem children”?When the Cameroonian Government tried to sell its telco incumbent Camtel only two Indian buyers - Reliance and Essar - turned up and it called off the sale. Was this just a little local difficulty with a Government-owned “problem child” or part of a broader set of difficulties? With the global financial system in a holding pattern, it has become significantly harder for potential buyers to find the money to buy these “problem children”. Many buyers really want access to mobile licences and in times like these maybe it’s simpler to find “green field” licences. Russell Southwood checks the privatisation score card and looks at the dilemmas both buyers and sellers face. Reliable reports reached us this week that two of Africa’s larger mobile operators have put in place a moratorium on further network spending until it’s clear what’s happening in the market. Last week Sudatel said that it had postponed a share offer in the Gulf and this week MTN has postponed its offer of 6% of its shares to its Black employees. The big difficulty is knowing what anyone’s assets are worth. The glib answer is: whatever people are prepared to pay. But as everyone knows, at the height of the market this figure may be several times what they will pay at the bottom of the market. And for valuation purposes, those with assets at the moment are on the downward slope of the market’s roller coaster ride without any very clear idea of where the bottom is. Out of Africa’s 52 countries, over half (29) still have incumbent telcos that are majority government-owned. Selling incumbent telcos is not a straightforward transaction. Governments, their citizens and the employees all have strong feelings about the process. As the one of the largest employers in every country, making these companies more efficient has a direct impact on the number of employees. Even when Government sells a majority stake to a private investor, it often uses its minority position to hover in the background making political demands on the company. If Government doesn’t like the way it’s going, it has ways of taking back ownership and (sometimes) re-privatising it: the examples of Ghana, Guinea, Nigeria, Tanzania and more recently Niger, all show that what’s sold does not always stay sold. Government politicians often have an overly intimate relationship with their telcos. We have credible descriptions for at least four countries of the Government using them as a kind of cash machine through a variety of scams. The ITXC case in the USA demonstrated the level of institutionalised corruption that afflicts a significant number of these companies. Those companies not privatised can be broken down into seven categories that will give some idea of the hurdles that stand in the way of completing this process. There are five companies that are up for sale in the short term: Burundi (Onatel), Niger (Sonitel), Zambia (Zamtel), Nigeria (Nitel) and Guinea (Sotelgui). Burundi’s privatisation is being underwritten by the World Bank’s finance arm IFC as was the recently completed sale of Sotelma in Mali. The Nigerienne Government is re-privatising Sonitel because its Libyan and Chinese (ZTE) owners failed to meet the roll-out targets it was set. Zambia has appointed advisers to sell Zamtel. The Nigerian Government seems to delaying on the Nitel sale, whilst its striking workers ensure that one of its few streams of income (its international fibre) is turned off. Who but the very desperate for a mobile licence would buy this company? Four companies were announced for privatisation but withdrawn before or slightly after the transaction was completed: Cameroon (Camtel), Algeria (Algerie Telecom), Mozambique (TDM) and Gambia (Gamtel). Algerie Telecom withdrew saying that outside investment was “no longer necessary”: the Government is putting in the investment required. A change of Government in Mozambique halted TDM’s sale. Gamtel was privatised personally by Gambia’s President and given to a local Lebanese owner. After a short period of time, the President decided that it had not performed well and took it back into state ownership. Two companies failed to find buyers or investors: Tunisia (Tunisie Telecom) and Tanzania (TTCL). The Tunisian Government tried to sell a 35% stake in its telco but no-one wanted to be a minority at the price offered. The Tanzanian Government’s argument with the managing agent Sasktel is over its failure to find investors for TTCL. There are two companies where there appear to be serious mid-to-long term plans to privatise once the companies have been put in better financial shape: Benin (Benin Telecoms) and Sierra Leone (Sierratel). The Sierra Leone Government re-instituted the international gateway monopoly as a way of putting money into its civil-war damaged incumbent but says it will then privatise it. There are five companies that have announced they will be privatised but where the date keeps receding into the future: Botswana (BTC), Malawi (Malawi Telecom), Angola (Angola Telecom) and Egypt (Telecom Egypt). Botswana’s privatisation was delayed to allow it to set up a mobile operation that would enhance the sale price. The Angolan Government sold its mobile subsidiary Movicel to Chinese equipment vendor in a non-transparent sale process but no date has been set for the sale of its fixed line operations or of the other Government-owned telco, MS Telecom. Two of the incumbent telcos that might be privatised are largely “shell” companies left over after civil wars: DRC (OPTC) and Liberia (LTC). The DRC Government has made several attempts to sell OPTC without success. At one stage, Telkom was an interested buyer if it could be given various monopoly privileges as part of the sale. (We note with interest that Motlatsi Nzeku was recently quoted as saying that the Telkom Board had confidence in him because it wanted him to head up an operation in DRC: seems more like the African version of Siberia to us but what do we know?) The last category is those nine companies where it is highly unlikely they will be sold for reasons of Govermental obduracy or high levels of political risk: Zimbabwe (TelOne), Namibia (Telecom Namibia), Libya (GPTC), Swaziland (SPTC), Ethiopia (ETC), Djibouti (Djibouti Telecom), Central African Republic (Socatel), Congo-Brazzaville (Sotelco) and Chad (Sotelchad). The latter two have minority France Telecom shareholdings. However Libya has announced two new licences, one fixed and the other mobile (see Telecom News below). In a world in which higher levels of competition demand increased capital investment, Government telco owners will either have to keep investing or see the value of their asset diminish. Furthermore increased competition reduces the market share of incumbents because with too many staff on the payroll they will always find it difficult to compete. With mobile companies rapidly spreading out into what was once the telco incumbents core markets, they are rapidly becoming the new incumbents. From the sellers’ point of view, Governments need to believe that the incumbent telcos are valuable assets. One Government civil servant we spoke to about a recent transaction seemed to think that the seller could simply demand a better price and get it. What actually happened was a better price was constructed for external consumption, whilst the Government agreed to take on significant outstanding liabilities. So Governments are caught “between a rock and a hard place”: if they sell now the value will not be at its highest but if they hold on they will need to keep re-investing at a substantial level (US$50-200 million a year, depending on the size of the operation). From the buyers’ point of view, you inherit all the problems of trying to sort out what has been an organisation with an African Government culture, whilst trying to compete. The value of a mobile licence may not outweigh the downside of the long haul to reform a much larger entity. This is why potential buyers need to watch the progress of companies like Vodafone in Ghana (with Ghana Telecom) and Vivendi/Maroc Telecom in Gabon to see what the balance of risk and reward turns out to be.
Libya Invites Bids For Private Telecommunications LicensesLibya announced last Wednesday the launch of an international tender for the North African country's first private licenses for a mobile and landline operator. A spokesman for the state-owned General Telecommunication Authority, which currently controls the phone sector, told AFP the move was aimed at "stimulating the telecommunications market in Libya." A GTA statement said the company would grant one fixed and mobile license for Libyan territory to one service provider. Interested parties are invited to make a bid before May 13, with the winner expected to be announced in June. The tender comes almost two years after Libya announced plans to privatize its mobile phone sector as part of a wider program of economic reforms. Libya has 700,000 land lines for a population of more than 6 million people, with the authorities aiming to upgrade that to 2 million lines. State-owned Libyana and Al-Madar mobile operators have more than 5 million users, according to official figures released in 2008. (Source: AFP) Bahrain-based Bintel wins Gabon mobile licenceBahrain-based Bintel has been awarded a 15-year mobile licence by Artel, the telecommunications regulatory authority of Gabon. The company, which becomes the fourth mobile telecom operator in the country, is expected to roll out its services in the third quarter of 2009. With this award, Bintel estimates its initial investment in 2009 in Gabon to be in excess of $50 million. Under the agreement, the company is licensed to provide the latest voice and data services to customers in Gabon, including high speed data and video conferencing. Following the license acquisition, Bintel has appointed industry veteran Gilles Villenaut as general manager for its Gabon operations. “Bintel’s entry into Gabon would further intensify competition in the highly liberalised domestic market, which would ultimately work to the advantage of end users who would have a wider portfolio of services to choose from and can also benefit from more competitive pricing,” said Alawi Baroum, chief executive of Bintel. Gabon has an estimated mobile penetration of about 90 per cent, which is estimated to grow to 120 per cent by 2011. According to Artel, Gabon currently has about 1.3 million mobile subscribers. Zain’s market share stands at about 58 per cent, Gabon Telecom at 34 per cent and Moov at 8 per cent. Bintel is targeting a 6 to 8 per cent share of the Gabon market within its first 12 months and a 30 per cent share within its first 10 years. (Source: TradeArabia News Service) Liberian Telecommunications Agency mired in corruption allegationsThe Liberia Telecommunications Authority (LTA), the regulatory body of telecommunication companies in Liberia is mired in corruption allegations centred on its Commissioner Albert Bropleh. Investigation conducted by FrontPageAfrica have unearthed how millions have been siphoned off at the LTA through the withdrawal and transfers of funds by Commissioner Albert Bropleh for purchase of goods that were not delivered to the entity. The LTA has a budget of $US8M for a staff of only 25 employees. Commissioner Bropleh has also, according to investigation been engaged in increasing his salaries and per diems on a monthly basis without approval by President Ellen Johnson Sirleaf. In September 2007, Commissioner Bropleh received an amount of US$3291.47 in salary and bonus and by October 2007, his salary and bonus jumped to US$ 16,833 without explanation. On October 19, 2007, Commissioner Bropleh withdrew an amount of US$10,000 from the LTA for relocating his family from the United States of America to Liberia with no records of the travel documents including air tickets to justify the expenditure. It is also not clear whether the President of Liberia approved of the relocation package. According to the Front Page investigation, on 29 October, 2007, the LTA transferred an amount of US$ 24,49. 43 to Commissioner Bropleh while he was in the United States of America accordingly for the purchase of laptop computers, spectrum and analysis, but there were no supporting documents on the purchase. There are also no information that the Public Procurement and Concession (PPC) rules were applied in the purported US$ 24,49. 43 laptop purchase deal and whether Commissioner Bropleh is the rightful person to buy the items on behalf of the entity. Another questionable financial transaction from the LTA by Commissioner Bropleh was done on June 20, 2008 when the Commissioner and his Special Assistant Emma Tokpah received $4,500 and $3,200 respectively, to travel to Germany for the Liberia Poverty Reduction Forum. However, on June 23 he wrote a memorandum that the trip had been cancelled without refunding the per diems received into the account of the Commission. The LTA again made another transfer of US$95,895 to the Liberian Embassy in the United States to buy two cars, but the recipient of the money was not known, and no reason was provided by the LTA for such overseas transfer when the cars bought are sold here in Liberia. Commissioner Bropleh, according to investigation took delivery of the money and purchased from himself and another close friend, the cars to the LTA. Additionally, US$24,000 was again transferred to the United States for the purchase of five laptop computers for the second time after the first transfer of a similar amount for the same purpose. On 22 February, 2008, Front Page alleges that the LTA opened a credit account at ECO Bank Liberia Limited with an initial deposit of US$111,421.25, but in whose favor the account was opened was not mentioned. Investigation backed by highly placed LTA sources has gathered that the head of the Commission, Bropleh has reduced the entity to his personal chiefdom, taking decisions single-handedly without the input of any of his fellow commissioners or other senior staffers of the entity. Commissioner Bropleh according to Front Page’s investigation withdrew US$50,000 from the coffers of the entity to sponsor a trip for merrymaking abroad but when contacted, Jedi Armah the Public Relations Officer of the LTA said, the commissioner had gone to South Africa for a telecommunications conference. While returning from the conference, the head of the LTA flew to the United States of America and when questioned whether the trip to America was also sponsored by the LTA, Armah was very ambivalent saying Commissioner Bropleh might have used his own money to travel to the United States. The LTA Public Relations Officer responding to information of huge withdrawals and transfers by the LTA without proper documentations invited our reporter to meet with those in charge of financial transactions at LTA. The head of the LTA, Commissioner Bropleh, was accused late last year of purchasing vehicles worth around US$ 50,000-60,000, while fellow commissioners were using cheaper ones, a situation that led to other commissioners raising qualms. (Source: FrontPage) Gambia: Telephone Subscribers in four districts still without service, may take another year to repairGamtel telephone subscribers in the Kanifing, Banjul, Lamin and Brikama administrative areas continue to express concern about the lack of service on their telephone lines over the past months. People residing around Serrekunda and the surrounding made a complaint at the Foroyaa office that most of their lines are bad. This reporter has also learnt that up till now departments and institutions within Serrekunda are not enjoying the services of Gamtel telephones. This reporter also made findings in Niumi and Badibou (NBR) and found out that they are also complaining of poor services by Gamtel. Momodou Touray of Fass Njaga Choi said his telephone stopped working since 2004. "They continue bringing me bills every month while my phone is not working. I made several attempts for them (Gamtel) to come and repaid my telephone. They came once to check the problem but when they went back I did not see or hear from them anymore”. Many people contacted in Brikama also showed their dissatisfaction and disappointment with Gamtel. "When the Brikama Gamtel was burnt, most of our telephone lines including some Gamtel lines were faulty. We can neither make or receive calls. The Gamcel network is alright now, but the land phones are still bad" said this anonymous speaker. Mustapha Darboe of Busumbala, the Drammeh Kunda family of Bakau, Fatou Camara of Lamin are some of the subscribers whose complaint were published in Foroyaa newspaper last on January the 12. But when this reporter made findings to see if their lines are restored, he found our that their telephone lines are still not repaired. Most of them told this reporter that Gamtel technical staff came to their residence to check the phones but nothing positive is being done yet. Readers could recall that when Foroyaa got in touch with the then managing director of Gamtel, he said 6,000 out of 10,000 faulty lines have been restored. He emphasised then that technicians have been working hard and materials have been ordered to restore the remaining 4,000 lines. When he was asked when they expect to restore all lines, he said by the end of January 2009. However in an interview with this reporter Friday on the phone the new deputy managing director at Gamtel now said all telephone lines will be restored by January 2010. (Source: FOROYAA Newspaper) In brief:-The management of Vodafone Ghana, which owns 70 percent of Ghana Telecom has offered mouth-watering disengagement packages to its workers. The package consists of three month salary for every year of service. As at now Ghana Telecom has about 4,088 staff on its payroll and is seeking to rationalise staff numbers to ensure profitability. - The GSMA mobile phone industry association has announced an agreement among 17 mobile phone operators and major handset makers to standardise chargers by 2012. The move means no matter what brand of phone you buy, the chargers should be interchangeable, making it possible to charge a phone from any available charger even if you leave your own at home. - Reuters reports that the government of Niger is to renationalise the 51% stakes in fixed line operator Sonitel and cellco SahelCom from a Sino-Libyan consortium which the government says has not met its obligations. ‘The privatisation of Sonitel and its subsidiary SahelCom is a failure. Therefore, at zero hours on 19 February, Dataport will no longer be a shareholder in Sonitel or SahelCom,’ Mohamed Ben Omar, communications minister and government spokesman, told state television. Dataport, which includes Libyan group LAAICO and Chinese vendor ZTE Corp, acquired the stakes in December 2001 for XOF17.5 billion (USD34.5 million). Ben Omar said Dataport had failed to meet its obligation, including not meeting a target of 45,000 fixed line subscribers. - The Algerian government has cancelled the privatisation of national fixed line operator Algerie Telecom. The sale, which has been mooted for several years, had attracted the interest of overseas investors such as Qatar Telecom and France Telecom.‘ Algerie Telecom will not be privatised and its capital will not be opened to private investors,’ said the telco’s chairman Foamed Benhamadi at the weekend. He claims that opening up the company to outside investment is no longer necessary and a plan is now under way to pump EUR100 million into the development of fibre-optic networks over the next five years.
Seacom's Cable Reaches Two Ocean Floors on its way to AfricaSeacom has announced that the first portions of deepwater cable are now resting on the seabed of the Indian Ocean and Red Sea. The cable has been laid from the edge of the South African waters to Mozambique and cable laying is also proceeding in the Red Sea from Egypt towards the coast of Yemen. A third ship is currently being loaded with the remainder of Seacom's deepwater cable which will be deployed from India towards Africa, where these three cable segments will be joined. In parallel to the marine installation, Seacom has made significant strides in land-based construction. The high-performance optical transmission equipment, which connects customers to inland terrestrial networks, has been installed in the Maputo, Mumbai and Djibouti cable landing stations. Construction of the cable station in Kenya will be complete in early February followed shortly by the Tanzanian and South African stations. Equipment installation in these locations, and in Egypt, will be complete in April. Seacom has also been preparing to provide services to customers by June and recruited over ten experienced local telecommunications professionals from India, Kenya, Mozambique, South Africa and Tanzania to operate and maintain the cable stations. Many of these personnel have already been trained at the Seacom Network Operations Centre in India and are now participating in the testing of the system as it is being installed. A complementary set of personnel is being recruited and will start training in March. These teams will also work with the landing partners' operators in Egypt and Djibouti. SEACOM is pleased to have been able to tap into the huge resource of talented young African telecommunication professionals, who are now ready to provide customers with the required support from June onwards. Teams cable secures operating permit in KenyaThe East Africa Marine Systems (Teams) has been given the first submarine cable landing operator licence, opening the way for the country to tap cheaper high speed Internet connection. The licence will allow the firm to convey international telecommunications traffic and provide connection to local Internet providers who have already placed cables across the country, said Communication Commission of Kenya Director General, Charles Njoroge. The firm paid an initial fee of Sh15 million, besides making an up front annual operating payment of five million shillings for the current financial year. At the same time, the CCK approved the award of second licence to Seacom, but the firm will only get the green light to connect with local Internet providers upon paying the license fee of Sh15 million. The twin submarine cables are now expected to land in Mombasa mid this year, a development that is set to spur shifts among the local Internet providers who are angling to grow their share of the lucrative Internet market. (Source: Business Daily) What’s the market share of South Africa’s Leading ADSL ISPs ?The number of ADSL subscribers in South Africa recently surpassed the 500,000 mark and is expected to continue its steady growth during 2009. One of the aspects making ADSL an attractive broadband service to consumers is the multitude of ADSL ISP offerings in the market - ranging from uncapped to high-usage local-only and prepaid bandwidth accounts. The consumer ADSL ISP space is still dominated by Telkom Internet and MWEB. Despite the fact that these two ISPs don’t want to release subscriber number figures it can be assumed that they have a significant slice of the ADSL ISP pie. Internet Solutions continues to dominate the business ADSL arena, but is also starting to make inroads into the consumer market. The company has in excess of 60,000 ADSL users, with a large portion using IS’s Business ADSL solutions. Vox Telecom, through its subsidiaries @lantic and DataPro, currently has 34,863 subscribers making it one of the largest players in both the business and consumer ADSL markets. Smaller ISPs are however starting to eat into the market share of the bigger and more established players. Nashua Mobile has, through aggressive pricing and strong marketing, grown its broadband customer base to over 90,000. While the company did not want to divulge exact figures, it said that a growing proportion of these customers were ADSL subscribers. Web Africa with 32,000 ADSL subscribers has grown into a strong player in the consumer ADSL market. Its innovative offerings and easy-to-use systems have attracted many loyal subscribers over the last few years, and with its own network - something which Web Africa announced recently - it is likely to continue its strong grown in future. Axxess, which was recently voted ISP of the year by ADSL consumers, has grown its user base to over 30,000. This is partly due to its easily accessible prepaid vouchers available from outlets like Engen and Pick n Pay. Cybersmart, well known for its affordable DSL384 offerings, also has over 20,000 subscribers. Company MD Laurie Fialkov expects continued strong growth with new offerings in the pipeline. (Source: MyBroadband) In brief:- Tunisie Telecom has signed a contract for a submarine fibre-optic cable linking Tunisia to Europe. British wholesale operator Interoute, Global Marine and Chinese equipment vendor Huawei, will be involved in the new cable, which will have a capacity of up to 3.2Pbps and will be operational before the end of this year. - The Managing Director, Nigerian Internet Exchange Point (NIXP), Muhammed Rudman has urged the government to mandate all service providers to connect to the nation’s exchange points to reduce the high cost paid by end users of Internet services in the country. - Tunisia's state owned, largest internet and telephone provider, Tunisie Telecom has announced that it is boosting broadband connections, as well as improving the quality of its ADSL connections to enable its new customers to benefit from twice the internet speed they have chosen, at no additional cost. The offer which is valid from February 15 to March 15, offers the possibility for new subscribers to get a 512k for the price of a 256K connection, or that of 1MB for the price of 2MB, that is respectively 20 (US$14) and 30 (US$21) dinars. - Enugu State in Nigeria launched a free city wide wireless Internet service in the main city. The project is a collaborative effort between the state government and Zinox Technologies Ltd.
US$20 Million needed for ICT Task Force in Sierra LeoneThe national information and communication technology (ICT) task force and E-readiness survey officially launched last week by Sierra Leone’s vice president needs a whooping US$20 million for its implementation. Alhaji Samuel Sam-Sumana told his audience at the British Council Hall in Freetown that the ICT would enhance the activities of government and that his government is working with the United Nation Development Programme (UNDP) to facilitate the implementation of the project. The project would provide strategic recommendations on the enabling policies in the ICT sector. The NICT-TF is a public-private-peoples partnership that reflects the President's vision as he adopts information and communication technologies (ICT) as a priority agenda of his government, in recognition of the pivotal role ICT can play in achieving Sierra Leone's aspiration for improved socio-economic status in today's global society. According to the Vice President, information sharing was a vital aspect which would bring success in the aspirations of the government, adding that the sum of US$20 million has been estimated to run the project. "We need support from donors and our international partners for the project to be successful. The ICT has been the priority agenda of the government," he said. (Source: Concord Times) National Smart Cards to Be Issued This Year in RwandaBeginning this year, all Rwandans will be able to access and coordinate various services automatically using the new smart card electronic system. This was announced last week by Pascal Nyamulinda, the coordinator of the National ID Project in an interview at his offices in Kimihurura. "These cards will be multi-purpose. The services offered will include, identification, access to insurance services, bank services and immigration services among others. In this case one will not need to carry many cards to access various services," he said. A British company, De La Rue, globally known for its security systems is working on this project as it did for the national identity project. The production of the cards has already started and they are expected be ready by the end of the year. "As we integrate the services, we will start with institutions that use electronic systems in their operations. So far only the immigration and emigration department are set for this," he added. Citing an example of the immigration and emigration department, Nyamulinda pointed out that this move will enable all institutions involved to offer services quickly as it will be easy to identify citizens with reference to the national data base. Acquiring this card does not necessitate double registration since all biometric data in which a digital picture, electric finger print and signature were captured at the production of national identity cards. According to Nyamulinda over 95 percent of the population, including those in the Diaspora, has already acquired national identity card the remaining 5 percent are mainly include soldiers, students, policemen, prisoners or people who move a lot. "Others also offered inconsistent data, for example some registered as 20 year olds yet they actually look 70. Some pictures were also quite unclear but we are certain that by April this year every Rwandan will have acquired their identity cards," he adds. He added that registration will be a continuous process, saying that each year, over 200,000 people turn 16, an age at which a citizen is eligible to obtain national identification; implying that every Rwandan at that age should register. Over 4.7million cards have been produced against a set target of 5.1million cards. (Source: The New Times) Botswana’s National Archives Goes Electronic to Boost Service DeliveryThe Botswana National Archives and Records Services (BNARS) is embarking on a project that will see all government ministries and departments using an electronic archiving and record management system. At a stakeholders forum this week, BNARS director, Kelebogile Kgabi, said that the system, dubbed National Archives and Records Management System's (NARMS) implementation started last July when Secure Data Content was engaged as a design consultant for the job. The project, which costs P32 million, she said, will be completed by September next year. She said that the project will be implemented in three phases, whence the first phase, which is ongoing, would see the software system being implemented at the BNARS headquarters and the office of the president.The project's second and third phase will be implemented in ministries of sport, culture and labour and home affairs, followed by other government departments.She said the NARMS solution is an integration of three subsystems, based on the functions of the BNARS. "Records Management Unit Subsystem, Records Centre Subsystem and the Archives Subsystem. The solution uses Trim Context Software, which was developed by Tower Software, an Australian company," she said.She added that the software meets international archives and records management standards. According to her the software is used by the National Archives of Australia, Botswana Training Authority (BOTA) and the United States Defence Department. (Source: Mmegi) In Brief:- The long-awaited bill for Namibia's information communication technology (ICT) sector will be tabled in Parliament soon, a Cabinet Minister said. The new ICT bill is expected to open up Internet and cellular communication services and also the broadcasting sector. A preliminary draft is available at www.ncc.org.na - Nigerians seeking professional and specialised health services may no longer have to travel to India before obtaining consultation from an Indian expert, courtesy of a memorandum of understanding (MOU) between the governments of India and Nigeria enabling partnership for providing services in telemedicine and tele-education between both countries. - A memorandum of understanding for establishment of a Francophone Digital Campus (CNF) at the University of Oran in Algeria was signed between this institution and the University Agency for Francophonie (AUF). The agreement aims at connecting the University of Oran to the network of University Agency for Francophonie, said president of the AUF, Bernard Cerquiglini, at the signing ceremony attended by the Sub-Director for Cooperation at Higher Education and Scientific Research Ministry, Abdallah Benzenoun. - Bank M (Tanzania) Limited has commissioned Oracle Financial Services Consulting to assess the bank`s security system in order to enhance information and communication technology (ICT) security of the bank.
MTN South Africa Shelves Discount Share SchemeMTN's huge black empowerment plan to spread its shares among ordinary citizens has been shelved as most people are too cash-strapped to buy into the business. The cellular network hopes conditions will buck up enough by year's end for it to relaunch the scheme to sell about 6% of its stock to black buyers at a discount to market value. The group said last week its implementation of a new empowerment deal in the first half of this year was postponed in the light of "severe constraints" in financial markets. The directors felt it was not in best interests of MTN, its shareholders and new investors to go ahead right now. The board remained committed to implementing the scheme "at the appropriate time". "It doesn't change the transaction," said MTN representative Xolisa Vapi. "Nothing changes except it's being moved to a time when the conditions are better, because right now the financial markets are tight." MTN was making no further comments as it considered its statement to be sufficient, Vapi said. However, a source said that trying to raise money from potential investors would be difficult because interest rates were high and credit was not easily available. If MTN tried to forge ahead, too few ordinary people would have enough spare cash to invest to create the broad-based shareholding it sought, he said. MTN's scheme was devised to replace its original empowerment deal of 2002, when black managers and about 3200 staff bought 13.1% of the group through a company called Newshelf. When the new empowerment plan was announced in December, their 243.5-million shares were worth R24.4bn, making it SA's most successful empowerment deal in terms of wealth generated for participants. It has turned several employees into millionaires, including some of its top white employees. MTN CEO Phuthuma Nhleko owns 7.92% of the Newshelf shares, while chief operating officer Sifiso Dabwenga and finance director Rob Nisbet each own 5.59%. Newshelf paid an average of R13.90 each for the shares by borrowing R4.3bn. Some of that debt was refinanced by the Public Investment Corporation (PIC), the government pension fund administrator. Newshelf now owes the PIC about R21.8bn, devouring a substantial part of the market value. However, the Newshelf members were still expected to receive R3.1bn to R3.4bn in dividends. The valuations are fluctuating, however, with the shares trading at R90.50 last week, more than 10% down from a month ago, while interest on the loans continues to mount. The Newshelf deal expired technically in December, and MTN is still winding up that investment. It will buy back the shares for a nominal fee and pay off the loans. (Source: Business Day) Monitise Gets Mobile Banking Grant to Expand in East AfricaUK based Mobile Banking provider, Monitise says that it has been awarded US$1.5 million by the Africa Enterprise Challenge Fund (AECF) to help fund the launch of its mobile banking and payments service in East Africa. Monitise East Africa will initially offer services in Uganda and then plans to expand into neighbouring countries, including Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Rwanda, Tanzania and Zambia. The service will enable the provision of banking, payment and money transfer services by both banks and mobile networks, within the regulatory framework of each market. The Africa Enterprise Challenge Fund is designed to fund business enterprises in Sub-Saharan Africa in the field of agriculture, agri-business, rural financial services and media and information services that will have a positive impact on the rural poor by delivering increased employment, reduced costs and improved productivity. It is funded by the UK Department for International Development (DFID), The Consultative Group to Assist the Poor (CGAP), the International Fund for Agricultural Development (IFAD) and the Netherlands Ministry of Foreign Affairs (NMFA). Hugh Scott, director, Africa Enterprise Challenge Fund said: "By helping enterprises to build successful businesses in Africa, we believe that we can make market systems work better and generate wealth that benefits the entire society. Through the extension of the reach of the banks and allowing people to save, make payments and transfer money to their families, we believe that Monitise East Africa has the potential to transform the economic outlook for literally millions of people. I also firmly believe that in due course many of the people who use the service will, through the empowerment that a savings and payments culture delivers, become business people themselves, creating a truly sustainable economy." The news coincides with a recent launch by the UK's Department for International Development of a £1.4 million fund to spur the development of biometric and mobile phone-based banking in emerging economies in Asia and Africa. The project entitled Facilitating Access to Financial Services through Technology (FAST) will explore the options for introducing 'branchless banking' in developing countries and look at how technologies such as mobile phone banking can help the poor to access financial services. (Source: Cellular News) K3bn for telecoms and finance sectors in MalawiA World Bank financing group, the International Finance Corporation (IFC), has earmarked some US$20 million (K2.8 billion) for the improvement of Malawi’s telecommunication and financial sectors. The IFC vice president responsible for Asia, Middle East, and North Africa and Global Infrastructure Rashid Kaldany hoped this would ensure increased access to telecommunication. “You can imagine that at the moment only 19 percent of the population has access to such services. This is very low,” he told reporters when he visited Malawi last week. Speaking at get-together in honour of the IFC Veep and his entourage, Kaldany assured the private sector of their continued support amid the world financial crisis. This was also echoed by World Bank Country Manager Timothy Gilbo, who said the recession should not be taken lightly “but we can assure you of our continued support”. This year’s funding will go into quality improvement in the telecommunication industry by helping the country roll-out fibre optic cables. (Source: The Daily Times) Pinnacle expects mixed results in South AfricaJSE-listed Pinnacle Micro's trading statement this week shows the company expects to crack just over R1 billion in turnover in its interim results. The projection for the interims (six months ended 21 December 2008), shows the turnover has been boosted by around 39% for the company over the same period last year, when it earned R974 million. While Pinnacle is expecting a healthy turnover, its gross profit only realised 15.88%, down from last year's 17.47%. Operating profit margins also took a knock, realising 4.9%, down significantly from last year's 7.3%. As a result, the company expects both headline earnings per share and earnings per share to be down between 15.5% and 9.6%. (Source: ITWeb) In brief:- According to the local newspaper, Daily Trust, the House of Representatives in Nigeria went through a second read of a bill that would require GSM Telecommunications services providers to give 30% of their equity to Nigerians. - South Africa’s SNO, Neotel, has announced Tata Communications has acquired the 30% stake previously held by Eskom and Transnet that it agreed to purchase in January for an undisclosed sum. Tata Communications, in association with Tata Africa Holdings, is now the controlling shareholder in Neotel with a 56% combined direct and indirect stake. - South Africa’s Competition Commission has recommended the approval of the proposed merger between the UK mobile group Vodafone and its 50%-owned South African subsidiary Vodacom. Under the terms of the transaction Vodafone will acquire an additional 15% stake in Vodacom from its partner in the venture, Telkom South Africa. Vodacom shares will then be listed on the Johannesburg Stock Exchange and Telkom will dispose of its remaining 35% interest among its own shareholders. The Bill & Melinda Gates Foundation, along with the GSM Association have announced a programme that will expand the availability of mobile banking services in the developing world. The Mobile Money for the Unbanked (MMU) programme, supported by a US$12.5 million grant from the foundation, will work with mobile operators, banks, microfinance institutions, government and development organizations to encourage the expansion of reliable, affordable mobile financial services to the unbanked. Telecoms, Rates, Offers and Coverage (briefs)- As part of its corporate social responsibility, Africell Lintel Sierra Leone limited has provided free toll lines to the national fire force (NFF) to be used by members of the public in case of an emergency - Rwandatel is set to launch its prepaid service up-country this month. According to Cleophas Kabasiita, the public relations officer of Rwandatel, the company is currently putting up base stations up-country to facilitate subscribers' access its network. - Samsung was not the only company showing a solar-powered cell phone at the GSMA World Congress. Chinese manufacturer ZTE launched a green model of its own. Created with Digicel and Intivation, the Coral-200-Solar is designed for emerging markets where electricity may not be readily available. It should be available in June. - Orange Guinea Conakry and Ericsson are deploying more than 100 base stations fully powered by solar energy, connecting remote rural parts of the country. Ericsson's hybrid diesel-battery energy solution replaces one of a site's diesel generators with a bank of specially designed batteries that can handle a large amount of charging and discharging. This self-contained power solution can be set to meet the batteries' optimal charging and discharging levels, extending the lifetime of the battery and the generator, and reducing energy-related costs by about 50 percent. - Mobile-XL, a USA based mobile technology company has announced a collaboration with Nokia to start embedding its SMS based browser in mobile phones for selected African markets. As early as March 2009, a select series of Nokia handsets shipping into Kenya, Uganda and Tanzania will be equipped with the firms XLBrowser software service. - Mobile subcribers in Egypt increased 38% in 2008 and spread of mobile improved about 55%. - Millicom Ghana Limited, operators of Tigo mobile network launched an electronic unit transfer system dubbed; "Top and Go" to offer convenience and flexibility to its retailers and subscribers. The service, which is for recharging of subscriber prepaid accounts allows for all sales transactions to be automated making it possible for subscribers to recharge their accounts without visiting retail sale points
Zain dials up mobile banking in Africa with ZapLeading mobile telecommunications provider Zain today announced plans to bring mobile banking to over 100 million people in East Africa with the launch of its new service, Zap. Zap will be initially available in Kenya and Tanzania prior to launch in Uganda. Zain is partnering with leading international and regional banks including Citigroup and Standard Chartered to launch Zap, which will allow Zain customers in the three countries to use their mobile phone to: o Pay bills and pay for goods and services o Receive money and send money to friends and family o Send and receive money to the bank accounts o Withdraw cash o Top up their own airtime account or top up someone else's o Send airtime to Zain customers in East Africa o Manage their bank accounts The Zap service will also be included as part of Zain’s pioneering One Network service, meaning that customers will be able to send airtime to other Zain customers across Kenya, Tanzania and Uganda. One Network allows travelling customers to move across geographic borders without roaming surcharges, recharge their mobile phones with locally purchased top up cards and receive calls for free. Zain customers can sign-up for free for the new Zap banking and payment services by completing an application form and handing it over to registered Zain agents in tens of thousands of villages, towns and cities across East Africa. Zain will then provide the customer with a mobile wallet, which will allow them to use their mobile phone in much the same way as a bank account debit card and manage their money through their handset. The service is supported on all handsets including ultra low cost handsets (ULCH) which Zain is successfully rolling out across the continent. Zain and its partners are confident that Zap will increase access to banking services in Kenya, Tanzania and Uganda, where formal banking services are largely restricted to urban populations. Eighty per cent of Kenya's and ninety-five per cent of Tanzania's and Uganda's populations do not have currently have access to banking services. Zain, in partnership with Citigroup and Standard Chartered Bank, is ensuring that the services meet all the required in-country banking regulations as stipulated by the central banks for the launch of Zap services. In addition Zain’s banking partners will facilitate payments and settlement processes in accordance with the terms and conditions agreed with the in country banking regulations. Zain plans to roll-out the enhanced Zap service to the rest of its African and Middle East network following the East Africa launch in Kenya, Tanzania and Uganda. During a three month trial phase the service was used by several international companies including Coca Cola who used it to pay their dealers in Tanzania. By using Zap millions of customers will be able to pay their electricity bills in Kenya and Tanzania, while Zain also plans to increase the number of services that can be paid for using Zap as part of its aim to transform the use of money in the Africa. French Company to launch voice activated mobile payment in NigeriaTagattitude France, multiple award winners at the international (GSMA) Global System for Mobile Communication Association event, is set to launch its payment solution in Nigeria. The chief operating officer of the company, Herve Manceron, speaks with Okoegwale Emmanuel on the workability of the solution, its advantages and why Nigeria is considered ready for this means of payment. Q: Your company was selected as a Global winner in the GSMA Innovations Category in 2008, Do you have your eyes on any trophy this year at the upcoming event? You see we have been awarded three different times in various categories, at the Global GSMA event which is the parent association for all GSM standard operators worldwide. And also at the GSMA’s Global Innovation 2009 award competition, we had a good show. So I think we need to allow other guys to also have a chance too. Q: Mobile Subscription is increasing in Africa generally and Nigeria particularly is a leader in this trend. How do you intend to leverage on this success, to bring mobile payments to the lower end of the market? First of all our technology has the advantage to work for any phone on the street and for any network. The innovation, works through the voice channel of any phone to transmit data. And our target is to get to the bottom of the pyramid target market. So once your phone is still working, you can log unto the service and use it. You don’t need to download any special software, no sophisticated sign on techniques. As long as there is a mobile phone network where you are located, you can log on to the service and pay person to person, person to Point Of Sale (POS) terminal. No issue of my bank is sleeping; it works 24/7 and the transaction is in just few seconds. So through this technology, we are going to offer the easiest payment services available any where in the world as at today. Q: How affordable is this service going to be to Nigerians who want to use it? We have a base line, of which every transaction is as easy as making a phone call. The transaction takes a maximum of three to five seconds to be authenticated and you are charged, just those few seconds of using your phone. So you could see how affordable the service is. Thus it is so affordable that people can use it as many times a day without even thinking of the cost attached to it. Q: There are other major mobile payment systems already in existence, what advantage could you say the Near Sound Data Transfer (NSDT) has in comparison to others? There are many advantages, the technology is extremely secured and has the ability For funds to be stored, extracted, transacted, and managed. Unlike the SMS payment for example, it is not secured in the sense that, it has to be limited to one operator. So the SMS technology works only in one user group. If I am using MTN and you use Glo as a merchant, I cannot pay you. But this payment system is universal and this is a key to the success of this payment system that is to be deployed. Also the simplicity in using this solution is another advantage, even if you don’t know how to read and write, as long as you can make a call you can use this payment solution. It is actually the only mobile banking solution that people in even remote villages, can use as long as there is a phone network there. More so you don’t need an account number in a bank once you have a mobile phone, all that is needed to identify you on the system is your mobile phone number. So even if your phone is stolen, the money is not on your phone, your phone is only a channel, that’s the brilliance of this solution, and the security is unparallel. There are also numerous advantages for even people who have existing bank accounts, because it is so easy to migrate the bank server that has account shake with this solution server, so that not only can you as a bank account owner use this platform, it can actually relate directly to your bank account, so that you receive automatic top ups. It is also customized to allow for a number of different languages, even the Pigin English option can be available at a prompt. So there are so many features and advantages that this solution holds. Q: Are we looking at Tagattitude opening a Nigerian office or working through partnerships? Yes we work with partnerships. Tagattitude France, has always worked in third party countries through partnerships. In Mali and some other countries where we currently operate, local firms are pushing the business model and it is quite a huge success. In Nigeria, we are working in close collaboration with Tagattitude Nigeria Limited. Do you think the Nigerian market is really ready for this mobile payment system? Yes, absolutely. You just show Nigerians the product, and you will be shocked at the rate of the adaptation to the technology. Nigeria holds a unique attraction for us because of the success of mobile penetration across the landscape. The business case here has clearly demonstrated that Nigerians up take of technology is something that just happens at the snap of the fingers. Nigeria has more than 55 million mobile subscribers, under an addressable market of 140 million. The prospect for Nigeria is promising and rewarding. Q: So what will be the role of the Banks and financial institutions in the development of this project in Nigeria? The banking sector is believed to affect growth by improving the access to financial services and improving the efficiency of financial intermediaries, both of which reduce the cost of financing, and in turn, stimulate capital accumulation and economic growth. So by enabling mobiles to make secure transactions, the banking sector is opened, improving cost and efficiency of financing. Presently, developing-world national economies have difficulty accounting for cash transactions. Replacing cash with mobile payment will revitalize economies and generate development. Q: So how will this NSDT address the un-banked population? The unbanked can have their daily purchases in remote areas made in a few seconds by simply dialing a number and placing your phone against the phone of a vendor. No cards or terminals are needed. Local businesses can offer and manage prepaid accounts with their clients and pay their employees. With NSDT, all of the risks and inconveniences of cash are eliminated. Nevertheless, funds can be easily and fluidly cash-in and -out when needed. By enabling easy cash-out and phone to phone transactions, the reluctance to dematerialization of cash is removed. The solution allows anybody with a mobile phone to make withdrawals from any ATM. The only modification on the existing ATMs is software. Microfinance banks can issue and supervise loans using mobile payment, raising the standard of accountability for their clients and facilitating loan distribution and collection. Loans can be sent to phones through the internet, saving loan officers dangerous and time consuming cash-laden trips to each borrower. Alternatively, the money that is electronically lodged "on the phone" can be spent directly from one phone to another-avoiding cash all together. Borrowers can repay their loans to designated agents equipped with their phones "linked" to the micro credit bank or can repay through ATMs equipped with NSDT™ software. By integrating the NSDT™ mobile payment platform into the bank back office, microfinance operations are made more efficient, more secure, and more effective. Q: Is Nigeria the only country in sight for this solution? We are operating in Mali, Ivory Coast and some other African countries where demos and Pilots are currently running. Nigeria holds a unique attraction because of the absence of a nation wide mobile payment systems and the sheer number of the mobile subscription in addition to the very robust banking sector. Q: What is your assessment of the financial sector in Nigeria? Well the financial sector in Nigeria is good, but they still have a limited customer base. So with the technology we have, we can extend the services the banks provide, by expanding their customer base to more people. Therefore only twenty million people have bank accounts due to the inability of many to provide the necessary IDs such as National Passports or Driver’s License only twenty million people have bank accounts. However, a mobile phone has a unique ID which is the MSIDN number. Using this platform, we can bank the unbanked. Q: When is this service going to start in Nigeria? You see it is a road map, and there are many mile stones of the road map. We hope to commence the deployment of pilot systems and demos for a few selected Nigerian banks and one or two PSP providers (switching companies). The next stage will be a full deployment and that I believe will be determined by lots of local factors but like I said, we hope to begin full-scale operations soon.
People* Messaging company Acision has appointed Tony Morrish as Senior Vice President and General Manager for Europe, Russia and Africa. Morrish joins Acision from Sonus Networks, where he was Vice President and General Manager for the company’s EMEA operations. Events* TECHNOLOGY TIMES OUTLOOK 2009 BUSINESS SUMMIT 24 February 2009, Muson Centre, Lagos, Nigeria The 2009 edition of the forum under the theme, "See...very far ahead" is the second edition of the annual business summit on the ICT industry's roadmap of developments that will shape and define the broader spectrum of the Nigerian economy in 2009 and beyond. For further information visit http://www.technologytimesng.com/outlook2009 * 2009 3G CDMA MIDDLE EAST AND AFRICA REGIONAL CONFERENCE 18-20 March 2009, Pavilion Centre, Cape Town, South Africa Under the theme “Empowering Communities with 3G CDMA", operators will be talking about their challenges and success. One will present a case study on enabling mobile payments, another on tapping into Africa's broadband backhaul network, one on ways to increase ARPU with EV-DO Rev. A broadband services and another on monetizing (the economics of) low-ARPU 1X subscribers, amongst other. On the Friday there is a course on Backhaul Dimensioning and one on Lessons learned from EV-DO deployments in the Middle East and Africa See the full agenda on www.3gafrica.org and register at http://www.3gafrica.org/graphical/CDMA-Evolution-in-Africa-Registration.asp * TELECOMS FRAUD AND RISK 23rd-26th March 2009 Hilton London Tower Bridge, London, UK Telecoms Fraud & Risk is the perfect place to learn about the developments in fraud prevention from the leading operators and solutions suppliers across Europe and beyond. Gain a greater understanding about how to manage the risks that the migration to NGNs is having, thereby securing your network and minimising fraud. Examine the enclosed brochure to see how attending Telecoms Fraud & Risk will enable you to cost-effectively enhance your fraud management strategy and make a measurable impact on your networks and service revenues. For further info http://www.iir-events.com/IIR-Conf/page.aspx?id=17135 * 3RD ANNUAL AFRICAN E-GOV FORUM 24-26 March 2009, Kigali, Rwanda The CTO is honoured that this year the Ministry of Science and Technology, Rwanda will be hosting the 3rd Annual African e-Gov Forum. Join key ICT stakeholders in the region, including Ministers of technology, heads of e-Gov projects, civil society leaders and representatives from IT organisations; mobile operators; infrastructure providers; foundations; development and donor agencies to discuss current issues and witness success stories on e-Gov in Africa. For further information visit www.cto.int * 1ST EURO-AFRICA COOPERATION FORUM ON ICT RESEARCH 25-26 March 2009, Brussels, Belgium For the first time in Europe, sub-Saharan African and European policy-makers and research organisations are being brought together to address the development of research collaborative projects in the ICT field. This 2-day event is co-organised by the European Commission (EC Directorate-General Information Society and Media) and the African Union Commission (AUC) with the support of the EuroAfriCa-ICT project, a FP7 coordination and support action aiming at enhancing ICT research cooperation between Europe and sub-Saharan Africa. More information visit http://euroafrica-ict.org/events/forum.php or email at forum@euroafrica-ict.org *THE WORLD WIDE WEB CONSORTIUM 1-2 April 2009, Maputo, Mozambique Africa Perspective on the Role of Mobile Technologies in Fostering Social Development. Hosted by the Ministry of Science and Technology of the Government of Mozambique. For further information please visit: http://www.w3.org/2008/10/MW4D_WS/ * AFTLD ANNUAL EVENT 13-17 April 2009, Arusha, Tanzania Under the theme "Securing Africa’s Internet Infrastructure”, the AfTLD annual African ccTLD event for 2009 will include a detailed three (3) day technical training workshop on Attack/Disaster Contingency and Recovery Planning(A/DCRP) for technical managers and staff of ccTLDs. AfTLD. The event is jointly organized and generously hosted by the Tanzania Communications Regulatory Authority (TCRA) and the Tanzania Network Information Centre (.tzNIC). For further information visit http://www.aftld.org Jobs and OpportunitiesPROVISION OF CONSOLIDATED ICT REGULATORY MANAGEMENT SERVICES - MALAWI Malawi’s Communications Regulatory Authority (MACRA) has published a request for proposal for the provision of Consolidated ICT Regulatory Management Services. MACRA seeks Technical and Financial Proposals from reputable firms for this appointment. Interested provider or providers must provide information indicating that they are qualified to perform the required services and provide the information, inter alia firm’s profile, qualifications of key personnel, references from other clients, descriptions of similar assignments undertaken, scope and specification of the solution, experience in similar conditions and availability of relevant and appropriate skills. Detailed Terms of Reference (TOR’s) are available from MACRA House, Salmin Amour Road, and Private Bag 261 Blantyre, Malawi from Monday 10th February, 2009. For further information contact MACRA at dg-macra@macra.org.mw or visit www.macra.org.mw ContractsCielux and Alvarion - Congo DRC Alvarion has announced it has been chosen by Cielux Telecom for a full turnkey WiMAX project in the Democratic Republic of Congo (DRC). Using Alvarion’s 802.16e BreezeMAX platform for the 3.5GHz frequency band, Cielux will offer voice and broadband data services to residential and business users in the cities of Kinshasa and Lubumbashi. Initial rollout of the WiMAX network is planned for June 2009, with 10,000 subscribers expected on the network by the end of the year. Cielux Telecom is reported to be planning similar WiMAX networks in other African markets including the Republic of Congo (Brazzaville, in 2009), Cameroon (2009), Gabon and the Central African Republic (both 2010). Atlantique Telecom and Aircom - West Africa Network planning and optimisation consultancy Aircom International has announced that it has signed a deal to provide its suite of network planning tools to Atlantique Telecom, the West African subsidiary of UAE-based telecoms group Etisalat International which operates wireless networks in six countries across West Africa. Atlantique Telecom operates GSM/GPRS/EDGE networks under the ‘Moov’ brand in the Ivory Coast, Benin, Togo, the Central African Republic, Gabon and Niger. Orange and Alvarion - Botswana Orange Botswana, the country’s second largest cellco by subscribers, has contracted service provider Alvarion for a turnkey WiMAX deployment, using Alvarion’s WiMAX 4Motion end-to-end solution. Alvarion will also provide Orange Botswana with project management and implementation services including network planning, network dimensioning, installation, technical support and professional services. Alvarion’s commercial network, which operates in the 2.5GHz frequency band, has already enabled Orange to provide advanced data services to businesses and homes in the country’s two largest cities, Gaborone and Francistown. Unitel and Ericsson - Angola Ericsson has signed a contract with Angolan mobile operator Unitel to expand its GSM/W-CDMA network over the coming three years. The contract includes a comprehensive network performance partnership agreement, to strengthen Unitel's network quality. Under the agreement, Ericsson consultants will perform network improvement and optimisation services for the core, radio and transmission networks. For the continued expansion of Unitel's network, Ericsson will deliver services including network design, network deployment, systems integration and network support. Unitel reported a total of more than 4.5 million subscribers at the end of December 2008. It launched its GSM services in April 2001 and now covers all 18 provinces of the country and more than 100 municipalities. In 2008 the company introduced 3G/3.5G services based on W-CDMA/ HSPA technology. Uganda Telecom and Redknee - Uganda Redknee has been selected by Uganda Telecom to provide its Mobile Money 2.0 solution, enabling Uganda Telecom subscribers to pay for goods and securely store and transfer funds with their mobile phones. Implementation will begin as soon as all requirements for launching the service have been approved.
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