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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 445 13th March 2009 Cote d’Ivoire: Warid Telecom pays for licence but can’t get enough spectrum to operateYou would think that it would be fairly simple for a mobile operator to buy a licence and be assured that the necessary spectrum would be made available. But matters are not always this straightforward as one of Africa’s newest mobile operators Warid has discovered in Cote d’Ivoire. Russell Southwood seeks to understand the unfolding muddle. Warid Telecom opened its first operation in Uganda and has big expansion plans for Africa. Backed by the Abu Dhabi Group, it wants to roll out mobile voice and data operations. Things seemed to start well in Cote d’Ivoire. On 4 July 2006 it signed an accord with the Ivorian Government to become the country’s 6th licensed operator. It agreed to pay FCFA30 billion for a licence giving it bi-band frequency in the 900-1800 frequency and an international gateway licence. According to this licence agreement, 95% of the sum was to be paid to the Government and 5% to the regulator ATCI. FCFA300,298,789,474 of this was paid immediately as a down-payment and the rest was due for payment in June 2009 when its 10 year licence began, the date also given for launching services. However, Warid needed additional spectrum for its operations so it sought to enter into an agreement with local company Celcom Cote d’Ivoire which since 2005 had had a provisional licence to operate with the overall aim of obtaining the additional spectrum it required. These negotiations were with its Administrative D-G and shareholder Séry Cyriaque who died in a plane crash in Cameroon in May 2007. The D-G of the National Lottery and President of the company’s Conseil d’administration Enerst Dally Zabo took over the negotiations. The hiccup is that it wanted to put money into Celcom on the basis that it would get the additional spectrum it wanted but Celcom did not have enough of the required spectrum. Clearly getting desperate one year later, Warid Telecom found itself listening to Eugène Diomandé who said that for a commission he would be able to find Warid its additional spectrum. But again as yet without results… Faced with this impasse, the D-G of the regulator ATCI, Sylvanus Kla has issued a statement seeking to clarify matters:”The owners (Warid) have indicated that the additional spectrum that it benefited from (through its partnership with) Celcom (is not enough) and it needs additional channels. I have told them that there are no additional channels free. They proposed to buy spectrum from existing operators and I accepted that on the basis that a “secondary market in frequencies” is an effective means of facilitating the optimal use of spectrum and is not against Ivorian regulations.” He also clarified that Warid had contacted Eugène Diomandé:”…to help them as an intermediary on a purely private basis.” He added that the licence fee was fixed by the Ministry of Finance after the allocation of 16 additional channels. He also said the sum was for the licence but not the allocation of spectrum. A “juriste d’affaires” interviewed by local paper Soir Info described this explanation as “astounding and grotesque”. Whatever the rights and wrongs of case, Warid is stuck with the problem of finding additional spectrum to operate and having to go “cap-in-hand” to existing and potential operators to beg spectrum in exchange for money. This might all be a storm in an Ivorian teacup were it not that this is not the first time we’ve heard of this happening, Globacom in Benin found itself with a licence but without adequate spectrum to operate fully. The regulator’s solution? It wanted the operators to give up spectrum and allow the shifting of channel allocation. The flaw in the plan was that the incumbent’s base stations were so old that it was not able to perform the required spectrum shuffle. Again whatever the rights and wrongs of these individual cases, there has to be a better way to organise the allocation of spectrum and those that allocate licences perhaps need to take some responsibility for this part of the process: either by insisting that companies do not “sit” on spectrum allocations by reclaiming them if unused after a reasonable period of time or genuinely offering to create a “spectrum market” that operates transparently without the need for local intermediaries.
Nitel is up for privatisation again in NigeriaNigeria’s Bureau of Public Enterprises (BPE) said that the National Council on Privatisation (NCP) has given it the go-ahead to advertise fresh call for Expressions of Interest (EOIs) by a core group of strategic investors to acquire 51 per cent equity stake in the Nigerian Telecommunications Plc (NITEL) and its mobile arm, MTEL. This, the BPE stated, was consequent upon extensive consultations and negotiations between the NCP/BPE and Transcorp on one hand and other stakeholders to begin the process of engaging a new core investor with the requisite technical, managerial and financial resources to take over the management of NITEL/MTEL from Transcorp, its current managers. The BPE's Head of Communications, Chigbo Anichebe said the decision to re-advertise for core investor's 51 per cent stake in Nitel/MTel was taken by the NCP at its 57th meeting in Abuja. Anichebe stated that, to be pre-qualified, prospective investors must be a reputable telecommunications operators with track record in the telecommunications sector. In addition, he said, they should also possess verifiable evidence of "at least two million fixed or GSM lines installed by one or more telecommunications companies that the strategic investor operates or controls; proven track record of expanding a telecommunications network of fixed or mobile lines; a minimum net worth of at least US$500 million; and where the prospective investor is a consortium, the operator must own at least 51 per cent equity in the bidding vehicle." The Federal Government had in 2006, sold 51 per cent stake to Transcorp Plc and retained 49 per cent. The shareholders mutually consented to re-structure the current shareholding and admit a core investor who will buy a 51 per cent stake in the company. The 51 per cent will be contributed by both the Federal Government and Transcorp Plc. To accomplish the government's objectives, the BPE and Transcorp had earlier obtained the services of an advisory consortium comprising financial, legal, marketing, accounting, technical and valuation advisers to advise it on the privatisation process. Consequently, a consortium led by BNP Paribas/Eleda Capital Partners was engaged which Anichebe revealed, is expected to, among others, review the operations of Nitel and MTel and prepare an information memorandum on the company. He added that the consortium would also prepare valuation reports that will give an indicative base price for the enterprise as well as prepare draft contract documents and all other transaction documents required for an open, transparent and competitive bidding process. The BPE spokesman said the consortium would also be expected to market Nitel/MTel to prospective investors and assemble all documents required in hosting a data room for due diligence investigations. Another key task of the privatisation advisers would be to evaluate the technical proposals submitted by prospective core investors and advise the NCP accordingly and prepare a comprehensive post-transaction report for Council. The NCP therefore directed the BPE to work with the Advisers in producing a fresh time table for the transaction. Anichebe also said as part of its decision, the NCP also approved the setting up of an Advisory Committee for the transaction. The Committee, which is headed by the Chairman of its Technical Committee, Mohammed Hayatu-Deen, with membership drawn from BPE, Transcorp and NCP Chairman's Office is expected to make definite proposals to the NCP on modalities for resolving all issues which may hinder a smooth transaction process He revealed that, as part of its assignment, the Advisory Committee was directed by the NCP to work with Transcorp to deploy more human resources in the Accounts Department of Nitel to ensure speedy completion of Nitel/MTel audited accounts in time for the transaction. (Source: This Day) South AfricanTelecoms Companies are Happy With Regulator’s Reduced Licence FeesA drastic slashing of the fees telecoms companies have to pay for the right to operate has been cautiously welcomed, after warnings that the initial hefty fee proposals threatened to drive numerous companies out of business. Fervent objections from a variety of telecoms companies prompted the sizeable cut in the fees proposed by the Independent Communications Authority of SA (Icasa). Operators will now have to pay an annual fee of 1.5% of their gross profit, down from the far more punitive idea of charging 3% of their gross revenue. "In principle we support Icasa's new proposals," said John Holdsworth, the CEO of ECN. "The new fee structure, which is based on 1.5% of gross profit instead of 3% of turnover, is vastly improved." The result worked out at about 10 times less then the original proposal, depending on the profit margin reaped by each operator. Incumbents with a higher gross profit margin would pay appropriately more than smaller, newer entrants, Holdsworth said. Almost 40 companies submitted objections, with ECN saying its fee would leap from R100,000 a year to R3m if Icasa refused to revise its plans. That has clearly happened, and Icasa has given the industry until March 20 to comment on its new fee structure. The Internet Service Providers Association has also welcomed Icasa's change of heart, which will help any Internet specialists that have ambitions to supply a wider variety of services. Start-up businesses will also be satisfied with the new structure, which excludes any company that is classified as a small business from paying an annual licence fee. In a position paper explaining its new stance, Icasa said licence fees should support the aims of legislation designed to encourage competition, investment and innovation in the sector, ensure a variety of services at reasonable prices and encourage the growth of small enterprises. The previous monopolistic regime justified high licence fees as operators were guaranteed "excess profits". But the unintended consequence was that the high fees were passed on to consumers, creating some of the world's highest communications costs, Icasa said. Licence fees were still needed to encourage competition, but they could be more modest and should vary according to the size of the operator. This would spare smaller companies the barrier of being forced to pay too much, as they would be if a fixed fee was imposed across the industry. When Icasa staged hearings into its original proposals it was told that demanding 3% of the annual revenue was a disincentive to competition, and other countries charged a mere 0.5%. During the hearings, Icasa's Thabo Makhakhe said the fees were clearly a vexing topic and all serious issues being raised would be studied before fees were finalised. Icasa was particularly concerned by comments that the fees could have a detrimental effect on the development of the telecoms and technology sector. (Source: Business Day) Orange Launches GSM Network in UgandaFrance Telecom, through its Orange brand has launched a new network in Uganda. Last October, France Telecom took over the national GSM license held by Hits Telecom Uganda after buying a 53% stake in the firm. The Orange network will be further expanded, not only in terms of coverage but also in terms of services and technologies. A 3G broadband services will also be offered in the next few months, following the planned upgrade of the network. Commenting on the launch of operations, Orange Uganda CEO, Philippe Luxcey said: "We are very excited to be able to enrich the lives of Ugandans by providing simple, innovative communications products and services, with unrivalled value and a clear focus on customer care. We are also proud to contribute to the economic development of Uganda”. Hits Telecom Uganda major shareholders were based in Abu Dhabi, and the company had been awarded a full telecommunications license, which includes the GSM 900/1800 spectrum, WIMAX broadband, international gateway, mobile virtual network operation and data transmission services. The country has five mobile operators, the two incumbents UTL and MTN while Zain (formerly Celtel) was licensed in 2005. Warid launched its network last February. According to figures from the Mobile World database, the country ended last September with around 7.5 million mobile subscribers - representing a population penetration level of 24.6%. (Source: Cellular News) Ghana’s Glo mobile partners with ZTE on networkGlobacom’s mobile subsidiary in Ghana, Glo Mobile is partnering with Chinese vendor ZTE to deploy additional access network infrastructure including 800 indoor and outdoor Basic Trans-receiver Stations (BTS) for its imminent roll out. The Ghana access network, ZTE, is deploying for Glo is separate from the deployments Alcatel-Lucent and Huawei already handling for Glo. In addition to the 800 BTS, the ZTE deployment also includes three Base Switching Centres (BSCs), 45 NodeB, two RNC, 162 PDH MW links, EDGE and HSPA, OMCs, planning and optimization tools. ZTE will also install for Glo, the Accra metro fibre backbone configuration; spanning Accra-Kumasi-Takoradi, Accra-Ho, Kumasi-Sunyani, and Kumasi-Tamale. Other cities and roads to be covered by Globacom, in its strategic partnership with ZTE, are in the Brong-Ahafo region. A statement by Globacom's Executive Director (Special Projects), Mike Jituboh, said the microwave transmission extension Glo was deploying, would ensure voice and data clarity and eliminate bottlenecks usually encountered with pre-expansion technology. The new network elements, with multi-media components will be linked to the Glo 1 submarine, Optic Fibre Cable, thereby providing a golden opportunity for Ghanaians to establish private call centre operations with attendant economic benefits to the people. The Glo 1 submarine cable will have landing stations in London, New York, Lisbon and major cities in 16 other African countries including Accra, Dakar and Lagos. According to Globacom, the Glo 1 submarine cable will land in Ghana shortly. (Source: Modern Ghana) In brief:- In a clear affirmation of its main focus as the protector of the telecommunications consumer in Nigeria, the Nigerian Communications Commission (NCC) has concluded arrangement on a one day roundtable discussion on the protection of the telecom consumer in the growing global Information and Communications Technology market place. - Rwandatel has fired 120 employees in what was explained to be the restructuring of their human resource base. The move comes after Lap Green's acquisition of 80 percent shares in the state-owned fixed and mobile phone operator and Internet Service. - According to Nigerian paper Daily Trust, former telecoms monopoly Nitel plans to lay off 1,500 employees, representing half of its current workforce. The report states that the decision was reached at a management meeting in Abuja last week, and that the affected workers will be mostly auxiliary staff, including drivers and messengers.
TEAMS shareholders sign agreement in East AfricaEleven shareholders in The East African Marine Cable (TEAMS) international undersea cable project have signed an agreement to plough USD110 million into the fibre-optic link, while the Kenyan government has pledged another USD20 million. The government, Telkom Kenya and Safaricom each hold 20% in the TEAMS project, while Kenya Data Networks and Econet Wireless have 10% each. Other investors include Wananchi Online (5%) and Jamii Telkom (3.75%). Another five companies plan on buying a 1.25% stake each, while the remaining 5% has yet to be allocated, Reuters reports. The installation of the cable, which will link Mombasa in Kenya to Fujairah in the UAE, is due to begin later this month and is scheduled to be complete by June. (Source: Telegeography) Burkina Faso’s government deployes WiMAX projectBurkina Faso’s Ministry of Posts and Information Communication Technology (Ministère des Postes et des Technologies de l' Information et de la Communication) has chosen Alvarion for the country’s first 802.16e WiMAX deployment in the 2.5 GHz frequency band in the major cities of Burkina Faso. Alvarion initially deployed a network in the capital city of Ouagadougou to connect administrative offices with advanced data and voice services over WiMAX. Based on the successful results, the Ministry of Posts and Information Communication Technology decided to award an expansion contract with full turnkey services to Alvarion. As part of the modernization process in Burkina Faso, the Ministry plans to connect additional cities to broadband Internet starting in Bobo-Dioulasso, and to be followed later in Fada N’Gourma, Kaya, Koudougou, Ouahigouya and Ziniaré. “Our goal is to improve public services across the country and enable efficient and reliable public administration processes,” said Noël Kaboré, The Minister of Posts and ICT. “WiMAX is the best technology commercially available today to overcome lack of infrastructure and enable quick and easy access to all public offices. Alvarion’s technology has proven itself in Ouagadougou and we are confident that its WiMAX solution will enable us to implement the government’s strategy in the best possible way. This network will allow us to connect administration offices and governmental institutions throughout Burkina Faso using the broadband capabilities of the technology for data applications, Internet and VoIP.” ANC expands Internet electioneering efforts in South AfricaIn anticipation of South Africa’s national and provincial elections to be held on 22 April 2009, the African National Congress (ANC) is expanding its online electioneering efforts. The country’s ruling party has started blogs on its official website, www.myanc.org, authored by high-ranking party members, including Jessie Duarte, Janet Love and Cyril Ramaphosa. Says ANC spokesperson Jessie Duarte: “Our blog is a natural extension of the active listening, responding and engagement that the ANC has consistently done throughout its 97 years of existence,” “We see it as a ‘virtual imbizo’. Instead of talking face to face we are talking in a virtual environment. There is such a danger in seeing the online campaign as separate or somehow different. It’s not. It’s an extension of our engagement with citizens. More talking. More listening. And most importantly, more conversation.” Other parties, including the Congress of the People (COPE) and the Democratic Alliance (DA) have also turned to the Internet in an attempt to woo voters. (Souce: IT news Africa) In brief:- The ADSL network of Algerie Telecom (AT), through its three platforms (EASY, FAWRI and ANIS) has witnessed "serious disruption" due to a cable failure in the Mediterranean of the international submarine cable system SMW4, said the State-run company on Sunday. A technical team capable of addressing the issue is already working on the problem. The failure was said by a company spokesperson to have been caused by “the recent atmospheric disturbances witnessed in the region." - The Berkman Center for Internet & Society has published a report on techniques and tools for circumventing Internet filtering: Hal Roberts, Ethan Zuckerman, and John Palfrey, “2007 Circumvention Landscape Report: Methods, Uses, and Tools” (http://cyber.law.harvard.edu/publications/2009/2007_Circumvention_Landscape_Report)
Computerisation of Tax Payments Planned in MozambiqueThe computerization of tax payments will begin in the second half of this year, according to Hirminio Sueia, the director of the Studies, Strategic Planning and International Cooperation Office in the Mozambican Tax Authority (AT). Sueia told AIM that the Mozambican government launched an international tender in mid-2008, to select the company that will provide the software for the "e-taxation" system, and will train staff to operate it. He said the company has now been selected (though he did not name it), and he expected a contract for the supply of software to be signed very soon. In the pilot phase, the system will deal only with companies paying their corporation tax (IRPC). Through the e-taxation system, it will be possible to pay taxes online, or via a commercial bank. The company will no longer have to send a representative to pay the taxes in person at the nearest tax office. Sueia said the AT wants to popularize the use of banks to pay taxes. As the commercial banks gradually set up offices in the districts, he expected an increasing number of companies to opt to use them for tax payment purposes. "When this system is implemented, it will be easier for citizens", said Sueia, "because you can pay wherever you are. It has fewer costs for taxpayers, since they no longer have to travel to the traditional point of payment, and the money arrives more quickly in the state's coffers". Once the computerization exercise is complete, the state will know the tax status of each taxpayer, whether an individual or a company, and can check how much they have paid and how much they owe. Preliminary studies cited by Sueia indicate that setting up the e-taxation system will cost between 38 and 40 million US dollars. (Source: AIM) Ghana’s Government sold 11,000 computers last year under GAPPGovernment in 2008 sold 11,000 units of Personal Computers under the Government Assisted PC Programme (GAPP) to the public, private, educational institutions and individuals. Dr Kwabena Duffuor, Finance Minister, who announced this in the 2009 budget statement to parliament, said the objective was to increase the use and acquisition of personal computers at affordable prices in the country and also to grow the local PC assembling industry. The project is being implemented by the Ministry of Finance in collaboration with Intel Corporation. Dr Duffuor said to create an effective ICT enabling environment, 2008 saw the passage of four bills, namely the e-Transactions, the e-Communications, National Communications Authority (NCA) and National Information Technology Agency (NITA) Bills. He gave the assurance that effort would be made to combat social exclusion of the disabled and physically challenged persons and promote the deployment of ICT to enhance their social, educational and employment opportunities. “The special needs of disabled people will be specifically taken care of, including the offering of facilities to promote the acquisition of computer and internet skills. “The development of Braille facilities for the visually impaired will be supported,” he said. This year, he said, government in collaboration with the Office of the Head of the Civil Service (OHCS) would pursue the development of a scheme of service for Information Technology and Information Management personnel. “This will enable qualified IT/IM personnel to be attracted into the public service,” Dr. Duffuor said. He said the proposed Technology Park would be developed under Micro Small and Medium Scale Enterprise (MSME) project to complement efforts to create the environment for jobs in the area of ICT/ITES business initiatives. Source: GNA ICT BEE charter in limbo in South AfricaThe ICT steering committee has not yet met to finalise the drafting and adoption of its black economic empowerment (BEE) framework - and no dates for a future meeting have been set. This meeting was supposed to mark the completion of the four-year, troubled process in the drafting of the ICT Sector Codes of Good Practice on Broad-Based Black Economic Empowerment. Industry opened consultations on the development of the charter in 2003, resulting in four drafts and three “final” versions during the last few years, which had subsequently seen additional amendments. Chairman of the steering committee Norman Munzhelele stated in an interview with ITWeb on 20 February that a meeting would be held within a week. He added that following the outcome of the meeting, he would make a decision. Munzhelele spoke to ITWeb again, stating “he has nothing to report” as a meeting of the steering committee had not been held - and no future dates had been set. Thabo Mosumboka, director for BEE at the DTI, states the process could go on indefinitely - and that the ICT industry needs to reach consensus on the sector codes soon. “No timeframes have been set by the DTI for this process. It all depends on how soon stakeholders can reach consensus on the sector codes.” Mosumboka adds that, if the steering committee reports it cannot reach consensus on contentious issues highlighted by the DTI, the department's General Codes of Good Practice will apply to the ICT sector. This, however, is unlikely to happen due to the mandate of the steering committee and political pressure. Munzhelele stated the steering committee has been mandated to sign off on the sector codes - so consensus has to be reached. Communications minister Ivy Matsepe-Casaburri is also likely to be disappointed if consensus cannot be reached on the sector codes. The minister has communicated her expectations to the committee and the DTI - to no end. “Last year, we were given assurances by the minister that we would receive the draft sector codes from the steering committee before the end of the first quarter of this year - and obviously this hasn't happened yet. The urgency of this matter is growing - especially for the industry,” Mosumboka states. While other sectors of the ICT charter are complete, stakeholders have failed to reach agreement on issues surrounding the BEE framework. Munzhelele previously stated the codes were referred back by the DTI over two issues: ownership and social investment clauses. The last draft of the steering committee recommended the inclusion of a R7.5 billion cap on ownership, which would lower the barrier of entry for BEE companies. Deals with a value of at least R7.5 billion would then be judged to be in compliance with the codes. Munzhelele said the DTI requested an economic rationale for this ownership clause and also instructed the steering committee to iron out issues around proposed social investment programmes. Mosumboka states the DTI sent back the proposed draft as the proposed sections did not “speak to the principles set out by the DTI”. He adds that it would be a shame if the years of work done on the charter went to waste over “a single matter”. (Source: ITWeb) In Brief:- South African based company Face Technologies which has been selected by Uganda’s Transport Ministry to implement the switch to computerised driving licences is stuck with over 40,000 driving permits valued at sh200m. According to Nathan Tumushabe, the transport ministry project coordinator "drivers are reluctant to bring their pictures for scanning to be issued with the computerised permits". - A Dutch newspaper Volkskrant reported that police have arrested eight men in connection with the attempted illegal export of toxic waste to Ghana. According to the report, three of the gang members are brothers and police picked them up in Deventer, while the other five were picked up in various parts of Amsterdam.
MTN '08 Net Up 44%; Continues To Target GrowthMTN Group Ltd, Africa's largest cellphone network operator, said last Thursday it expects to easily pass the 100 million customer mark this year as it continues to invest aggressively and expand in a continent where mobile phone use still remains the lowest in the world. The Johannesburg-based company posted a 44% jump in net profit last year as it grew its subscriber base to 90.7 million from 61.4 million, and Chief Executive Phuthuma Nhleko said MTN conservatively targets an additional 22.6 million customers by the end of 2009. MTN's stock was buoyed by its results, and by 1253 GMT was trading 2.4% higher at 93.70 rand in a lower market overall. Net profit for 2008 increased to 15.3 billion rand ($1.5 billion), or 806.1 cents a share, from ZAR10.6 billion, or 559.2 cents a share, the year before, MTN said. Revenue for the year climbed to ZAR102.5 billion from ZAR73.2 billion in 2007. African economies, initially isolated from the banking crisis that started in the U.S., now feel the sting of the global economic slump as demand for metals and other exports has dries up. South Africa, the economic engine of the continent, could be in recession for most of this year, Moody's Investors Service said Thursday. Despite this, MTN said it is cautiously optimistic about the year ahead. "Mobile telecoms is almost an essential service in countries that have low fixed-line or poor fixed-line penetration," Nhleko said. "The resilience almost approximates a utility." The company has more than doubled its subscriber base over the last two years through acquisitions and by launching operations in countries offering high growth prospects, but which some analysts cautioned were also high risk. Highlighting this, MTN's greatest growth in 2008 came from Iran and Nigeria. Nhleko said the company continued to look for new markets and expected the continued drive for economies of scale, coupled with new entrants in many markets, would spur industry consolidation. "We're still of the view opportunities will present themselves and there will be consolidation," he said. MTN has been looking for a foothold in southeast Asia and last year failed to agree mergers with two of India's largest mobile operators, Reliance Communications Ltd. (532712.BY) and Bharti Airtel Ltd. (532454.BY). Nhleko said MTN, like its rivals, remained keen for Angola and Ethiopia to release operating licenses. The company currently operates in 21 countries in Africa and the Middle East. "This is a business that will always be driven by economies of scale," he said. Finance Director Rob Nisbet said the company has approved an investment of ZAR37.7 billion in existing operations this year, albeit with some of this expected to roll over into 2010. That compares with ZAR28.3 billion in capital expenditure in 2008, much of which went toward expanding and improving infrastructure to handle increasing subscriber numbers. (Source: Dow Jones Newswire) Nigeria’s Government Earned $8.42 Billion From Telecoms in 2008Telecommunications in Nigeria grew 23 per cent last year, and fetched $8.24 billion, according to a report by Pyramid Research. Earnings are expected to climb 5.7 per cent to peak at $11.14 billion by 2013. The report said Nigeria, now with over 61 million lines, has overtaken South Africa which has a subscriber base of 42 per cent. About 83 per cent of the sector's revenue will still come from mobile business over the next five years, the report stressed, and continued growth in the period is expected to trigger more intense competition among networks. "Suppliers of mobile network technologies are likely to benefit from more aggressive rollouts of mobile voice and data services and demand for CDMA and GSM base stations is expected to remain strong over the next several years," it enthused. Figures published by the Nigerian Communications Commission (NCC) showed that Visafone, with 2,205,868 subscribers, ranks the 4th largest mobile telephone operator in Nigeria. (Source: Daily Independent) Batelco closes in on Africa buy, sees flat profitBahrain Telecommunications Co (Batelco) plans to make an acquisition in Africa within six months, its chief executive said, and could spend almost $2 billion. CEO Peter Kaliaropoulos also told Reuters in an interview that he expects 2009 profit to remain at last year's level, as higher profit in Bahrain is offset by investment costs for its new Indian operation. "There are three opportunities we are working on in Africa, they are all existing operators, and ... we are giving ourselves a time frame of six months to make sure we are getting the right opportunity for Batelco," Kaliaropoulos said on Monday. "Our preference is buying into existing companies, or buying into companies that have just started operating," he said without elaborating. Batelco, which operates in six Middle East markets, seeks to diversify by growing in India and South East Asia as well as Africa to offset rising competition at home. In January, Batelco agreed to buy a 49 percent stake in Indian mobile telephone operator S Tel Ltd for $225 million, partnering with Millenium Private Equity, only days before Saudi Telecoms Co (STC) won Bahrain's third mobile license. Kaliaropoulos reiterated that Batelco is prepared to raise $1.5 billion in debt to finance further acquisitions, and with some additional equity could seek targets with a price tag of up to just under $2 billion. Batelco is open to several options to raise the funds, he said. "We are looking at bonds, we are looking at loans from banks, I think it is going to be a combination. It could be Islamic finance, it could be normal finance," he said. Kaliaropoulos said Batelco is also seeking to compliment its new operations in India by organic growth in broadband Internet. "There is more to do in India, it is not just the mobile business" he said. Kaliaropoulos said he expects Batelco's profit to be flat this year, due to the start-up costs in India. "We don't expect a huge growth in profits, we don't expect a huge decline in profits," he said. "It is a start-up operation (in India), so we will obviously be carrying our share of the operating costs and losses over the first year, because the company is not going to turn positive for another three years," he added. (Source: Reuters) Datatec issues trading updates in South AfricaDatatec, the international ICT group, is today publishing a year-end trading update for the financial year ended 28 February 2009. The financial performance of the group remains in line with the expectations set out in the trading statement and IMS on 15 January 2009. Accordingly, the board expects earnings per share and headline earnings per share to be between 25 and 29 US cents per share, with underlying earnings per share expected to be between 31 and 35 US cents per share. The board plans on paying the same level of annual capital distribution, at 12 US cents per share for the financial year ended 28 February 2009. Further details on the distribution will be included in the results announcement. The group has focused on improving its cash generation, and therefore, the board is particularly pleased that operating cash generation in the second half of the financial year has been very strong within Westcon, well ahead of the group's expectations. At the end of the financial year, Datatec moved to an overall net cash position from a previous net debt position. As indicated in the trading statement and IMS in January, product revenue has recently been following trends seen in many of the world's major economies, and has been tracking between 10% and 15% lower than for the same period last year. However, services and consulting revenue has been less impacted by the current economic climate and some areas, such as annuity services revenue, have improved year-on-year. Separately, it is announced that Dean Douglas will become President and Chief Executive of Westcon Group on 1 April 2009. Dean joined Westcon Group as Chief Operating Officer in June 2008, and has held senior executive roles at Motorola and IBM, as well as being Chief Executive of LCC International. Jens Montanana, Chief Executive Officer, said: “The group completed the year with improved working capital and a net cash position, following strong cash generation in the second half, illustrating both the defensive nature of our business model and the positive actions taken. We plan to pay the same level of capital distribution for the year just completed, reflecting confidence in our financial position, particularly when some parts of the group are performing with relative resilience in the downturn.” (Source: ITWeb) In brief:- MTN Congo has reached an agreement with a group of banks including Eco Bank, Credit du Congo and Banque commerciale internationale en République du Congo for a CFA Francs 20 million loan to finance further network expansion plans. - The French Development Agency (l’Agence française de développement-AFD) has signed a loan agreement with Djibouti Telecom. The loan’s amount is US$30 million over a 12-year period and will be party used by to pay for Djibouti’s stake in the Europe-India-Gateway (EIG) submarine fibre cable. Telecoms, Rates, Offers and Coverage (briefs)- MTN Rwanda customers have experienced some network interruptions last week. According to the group's Chief Executive Officer, Themba Khumalo, the network problems were a result of failure of one of the company's switches, leading to the glitches. - Vodacom Ghana is expanding its network in the Volta area. According to the CEO of Vodafone, the necessary steps were being taken to install SIM phone booths in rural and peri-urban communities, as well as second cycle institutions, to facilitate easy communications. - Sierra Leone’s mobile operator, Africell Lintel has unveiled a new cell site at Lakka community in the west of Freetown. The site installation in Lakka was to enhance the coverage in the township. The company also said that it has now 650, 000 subscribers countrywide. - Seychelles mobile operator Airtel has upgraded its network to 3G with an HSDPA software upgrade. This will enable Airtel to offer high speed data services. The network upgrade and the equipment have been supplied by Huawei.
MTN Uganda soon to launch Mobile Money service in partnership With StanbicMTN agents who are providing the Mobile Money service are supposed to have accounts with Stanbic Bank, the MTN chief executive, Noel Meier, has said. "MTN has also appointed Oscillyte Limited, a consultancy firm, to define the mobile money strategy and provide general management for effective operation," Meier added. He said MTN had already carried out the necessary tests to ensure a secure service. The money transfer service has been on a test run since October 16, 2008. Meier said after registering for the service, a client gets a new sim card, which allows them to send money via a text message to the recipient including those on different networks. The recipient has to cash the money at the agent by entering a secret code and showing proper identification. "The cash limit has not been set but is expected to be close to sh1m," Meier told reporters. In parallel, MTN has announced that it is set to launch m-banking trials in Benin, Congo Brazzaville, Guinea Bissau, Guinea Conakry and Liberia. The move comes after the company launched its Mobile Money Transfer in Uganda following the completion of a 5-month trial. MTN has partnered with local banks from each of the 5 markets in order to ensure that its MMT services are fully compliant with financial services regulations. The company is currently in talks with relevant authorities in various countries to ensure that all regulatory requirements are met. (Source: The New Vision) The search is on for the Nigerian MobilekingAs Mobile Operators roll out futuristic and Innovative Technologies like the 3G,there had been no corresponding developments in the mobile Value added services with real life Benefits. Mobile Challenge is designed to be an annual mobile Value added services competition to seek out the developers and entrepreneurs that are creating new Value, new revenue and new innovative services for the mobile workforce and mobile lifestyle in Nigeria . M-Challenge will serve as the industry benchmark recognition status for the selected few after meeting the rigorous technical and Business evaluation criteria. The goal is to identify new opportunities and build a sustainable mobile Value added ecosystem with real life benefits, exportable potentials, recognize the dynamics of the market and gather market information for mobile product portfolio decision making process. The contest will focus on m-Banking, m-Commerce, e-govt, infotainment and Mobile marketing within the technology ranges of 2g to 3.5G.Educational institution, Mobile Vas content providers, content aggregates, application developers, and non governmental organization will be allowed to participate in proposal submission. The contest is aimed at Pre commercial mobile services. Visit www.mobilechallenge.org to know more.
People- Aggrey Awori has been appointed as the new Minister for Information and Communication Technology in Uganda. He replaces outgoing minister, Dr Ham Mulira. - Ericsson South Africa has confirmed the death on of Jan Embro who was president at Ericsson's market unit sub-Saharan Africa. Events* 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 visit 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 * WiMAX EAST AFRICA CONFERENCE AND EXHIBITION 24-26 March 2009, Safari Park hotel, Nairobi, Kenya The event will serve as the launch for the East African WiMAX Network. This regional network is intended to stimulate interest and networking among the WIMAX market providers in the region as a whole. This interactive event will focus on WiMAX and its related markets, and will explore and clarify all aspects of what is likely to be the next significant advance in wireless technology. For further information visit http://www.aitecafrica.com/event/view/35 * 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 * EAST AFRICA COM FORUM 1-2 April 2009, Nairobi, Kenya Promoting new models and services for the broadband era in East Africa: The only telecoms event to serve the East African region - promoting new models and services for the broadband era. 600+ attendees, 40 + speakers, 40+ exhibitors - the whole telecoms ecosystem represented. For further information visit www.comworldseries.com/eafrica *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/ * INTERNATIONNAL EXPERT SEMINAR ON POWERLINE COMMUNICATION 2-3 April 2009, Misty Hills Conference Centre, Johannesburg, South Africa PLC is being recognised as of strategic value for African players within telecoms. PLC has gained a high level of maturity and reliability, its versatility enables to design various business models in the broadband arena, but also related to innovative applications and smart grid. ATU wishes to address the various aspects of a PLC implementation within the African context, gathering significant players of the industry, showing successful commercial projects, identifiying current innovations and enabling to exchange directly with involved operators, utilities, regulators and integrators. For further information visit http://www.atu-uat.org/# *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 OpportunitiesTender for the supply and implementation of banking software application - Ethiopia Wegagen Bank S.C. has announced an international tender for the supply and implementation of banking application software for its 47 branches throughout the country. The tender will remain until the end of March 2009. Operational for more than a decade in the banking industry, Wegagen was the first private commercial bank to install the core banking system in June 2001 and to network all its branches, almost half of which are in Addis Abeba, at a projected cost of about 500,000 dollars. For further information on the tender please visit http://www.wegagenbank.com.et/ ContractsMobinil and eServGlobal - Egypt eServGlobal announced that Mobinil has chosen the eServGlobal platform to launch its Missed Call Alert (MCA) service. Mobinil required a solution to notify subscribers of an attempted call when they are out of coverage or when the mobile is switched off. Satconsult and O3B - Ghana Satconsult Ltd, one of Ghana’s Internet Service Providers (ISP) has signed a multi-year, multi-million dollar contract for high speed, low latency Internet Protocol (IP) trunking services with O3b Networks
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