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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 457 5th June 2009 East African mobile operators outsource call centres and HR to concentrate on winning competition battleMore mobile operators keep entering the fray: in Uganda a sixth licence holder (Essar) has just got a licence and in Rwanda a third licence operator (Millicom) will start at the end of the year. Staying alive under this kind of competitive pressure means concentrating on the main task of winning market share and cutting costs. So as the market matures this means outsourcing those things which are not central to that task. This started with network management but will soon include other areas like call centres and HR. Russell Southwood spoke to two industry veterans last week in Kampala who have been providing these services to mobile operators in the region. The argument for outsourcing cost centres within mobile operators at this stage of market development is two-fold. Firstly, management time is precious under pressure and should not be taken up with things that are not central to the success of the company. Secondly, as competition increases, the focus for mobile operators shifts from being just about growing revenues to needing to work on the other side of the equation, controlling or cutting costs. There have been a number of straws in the wind over the last three years. One of Ghana’s smaller mobile operators has a management contract with Chinese vendor Huawei to build and manage its network. In Nigeria Helios builds mobile masts and leases them to operators. But now outsourcing is moving into new functional areas, particularly where the owner is primarily an investor rather than a day-to-day manager in all areas/ Uganda’s NFT Consult was set up four years ago by two people who had already worked for a long time in the industry to offer these kinds of services. Badru Ntege ran one of Uganda’s ISPs and his wife Elizabeth used to work for former incumbent utl. But as Badru says with a smile:”It’s easier to become a service provider to the service provider than being a service provider.” The company was set up to offer something more than the recruitment agency function for the high-value sectors in African economies like telecoms, IT and banking and finance. So when Kenya Commercial Bank set up in Uganda NFT Consult handled all the recruitment from the most senior manager right down to the most lowly security staff. Its service offer is that it can recruit, run payroll and manage staff for large companies, particularly mobile operators. In Uganda it started supplying these services to the market leader MTN. The initial contract included a clause insisting on exclusivity but NFT Consult explained their point and stood their ground. Another example is a Chinese vendor operating in Uganda for whom NFT Consult took on 77 local technicians. Overall, it employs 600 people on behalf of others including banks, IT companies and telcos. The extension of this service was to start supplying staff for a call centre for former incumbent Rwandatel in neighbouring Rwanda. These staff provide cover 24/7 and cost US$1,500 per seat per month at entry level. Rwandatel currently has around 600 staff to handle its 200,000 subscribers which it switched from CDMA to GSM at the end of last year. The call centre handles 300 calls an hour with a 20 person shift. Staff are targeted to either answer the call in 200 seconds or escalate it to back office staff who do not have time targets. The call centre operates in all three languages of the country: Kinyarwanda, English and French. NFT Consult trains the staff and supplies them ready to go. Based on this experience, NFT Consult is looking to set up a call centre for company in the financial sector some time this year. The call centre work attracts students, particularly women. For the difficult night shift, there is an additional 10% allowance and because there are less calls, there are plenty of takers. As Elizabeth Ntege said:”The transformation after the first pay-check is amazing. They come in better dressed than me!” For many of those recruited it’s a chance to earn up to ten times more than they were earning. One of their office’s security guards even applied and is now one of their best workers. In some cases they have taken on the management of staff. When this happened, they installed a fingerprint post to check people in and out so they could track the number of hours worked. As Elizabeth says:”At the end of the first month, the staff were shocked by how little they had worked and they only got paid for the hours they worked.” However the company does pay benefits and wrestles with being hard-nosed about productivity in cultures where this is not the norm. Selling this kind of service has not been easy but one contract has led to another and the business has grown rapidly. It requires trust that the supplier will be as professional as you and not allow mistakes that will tarnish your brand. It requires a shift from running staff to managing contractors, the latter being a skill that is only just developing in Africa. The Nteges also run a separate business, Mobile Payplus that again offers ways to operators of streamlining their processes. The company has a contract with a US company called More Magic selling Electronic Distribution Voucher POS equipment to eliminate scratch card sales. It takes a percentage of revenues which gives it an incentive to increase electronic sales. It has adapted the device to work on PCs with POS software in supermarkets so that you can go shopping and buy airtime. The access codes for the airtime appear on your till receipt for the goods. The same software can also go as a Java application on a mobile phone for street sellers and there’s also a web version. This same web version can be used by the dealers to order up more airtime. The company has a contract with Zain in Uganda to provide this service and it runs a team of people in the field to work with the vendors. Among its clients is a supermarket with 400 outlets. The initial sell to the operators was not easy as Badru Ntege conceded:”The operators do not take responsibility for the physical minutes on scratch cards once they’re sold because anything could happen to them. So initially, they weren’t much interested.” It sold to one one of utl’s biggest dealers, Telchoice and it was sufficiently impressed to recommend them to all its other dealers. More Magic is an ISO approved platform than can interface with banks and credit card companies like Visa and Mobile Payplus is looking at being able to offer this as an option in the future. For years global airlines have offered their customers services that were provided by other contractors. It can be done and for mobile operators it may be one route to controlling costs in ever more competitive markets.
Nigeria’s Federal Government Revokes Nitel/Mtel Sale to TranscorpBarely two years after the Federal Government forced Transcorp plc to shed 29 percent of its 51 percent shares in Nitel, the government last week revoked the sale of the national telecommunications carrier to the company. Transcorp, owned by ex-president Olusegun Obasanjo and some Nigerian business moguls, had bought 51% of Federal Government holding in the telecommunication companies for $750 million, under the Obasanjo administration. The Minister of State for Information and Communication, Alhaji Ikra Bilbis announced the revocation in Abuja after the National Council on Privatisation (NCP) meeting chaired by Vice President, Dr. Goodluck Ebele Jonathan at the State House. Alhaji Bilbis said Transcorp breached the Shares Sales Purchase Agreement (SSPA) it signed with the government. He listed the breaches as follows: * Exiting of BT contract as technical operator, which was a pre-condition of the sale, * Failure of Transcorp to inject the sum of N8.9bn cash into Nitel within 100 days of its takeover to address the immediate liquidity problem facing Nitel. * Failure to pay interconnectivity debt totaling about N17bn, * Inability to pay staff salaries in the past 11 months, * Failure of Transcorp to maintain Nitelas a going concern, resulting in complete loss of market share from 15 per cent to 0.03 percent. In view of the breaches, he said, "council therefore agreed that Transcorp has vitiated and voided the contract in its entirety." Consequently, the NCP approved the immediate revocation of the sale of Nitel to Transcorp and the constitution of a technical board to manage the companies until a new core investor is engaged by the government. The council also ordered the immediate stoppage of further sale of Nitel's assets to prevent any further asset-stripping. Before last week’s outright revocation of the sale, the Yar'adua administration had in December 2007 had sought to take control again following complaints that Nitel was undervalued before its sale to Transcorp. But the government later reversed itself shortly after the revocation and reached a share reduction agreement with Transcorp. Under the agreement, Transcorp gave up 29 per cent of its 51% shares while the Federal Government parted with 22%. This is to allow the new core investor to be sourced to have a controlling share of 51per cent. (Source: Vanguard) Essar wins network licence in UgandaA unit of India's Essar Group has won a licence in Uganda to build a $200 million cellular phone network. Unlisted Essar Teleholdings, which had got a similar licence in Kenya last year, will own 90% of the venture, the paper said, quoting a group official. "We have paid $3 million for frequency charges to the Uganda Communication Commission and will launch the service in August in a joint venture with Kenyan Telecom Uganda, a local telecom company," it quoted Srinivasa Iyengar, MD of Essar Telecom Kenya, as saying. Uganda has six cellular phone operators, of which South Africa's MTN Group is the market leader with a 45% share, the paper said. Essar Teleholdings has also decided to bid for licences in Tanzania, Congo and Cameroon, the paper said. (Source: ITWeb) Airtime Use Drops By 20.6 Percent in RwandaRwanda's excise tax revenues on airtime sales have dropped by 20.6% in the last quarter. The revenue dropped from Rwf199.7 million in January to Rwf158.48 million in April 2009, putting telecoms operators in jeopardy, according to the Rwanda Revenue Authority (RRA). Rwanda has two telecom operators, MTN and Rwandatel, with over 1.6 million subscribers. A third operator, TIGO, licensed last year, is about to launch. The drop is linked to less liquidity in Rwandan banks and the global economic crisis that have reduced consumer spending. MTN Rwanda registered a shocking 33% quarterly drop in average revenue per subscriber/user (ARPU) from $11 in December 2008 to US$7 in March 2009, according to the MTN Group's quarterly report released this month. (Source: East African Business Week) Zimbabwe: Telephone Usage Still High reports TelOneZimbabwe fixed line telephone service provider TelOne says since announcing the reduction of tariffs for all local calls to US$0.07 from US$0.10 in March, billing units had increased to unprecedented levels. Responding to customers questions regarding the high bills from TelOne, public relations officer Collins Welbesi said telephone usage had not declined since dollarisation. "Kindly note that telephone utilisation has not decreased with dollarisation. In fact the billed units for April 2009 are 25 percent above the November/December 2008 average. In Zimbabwe, we are seeing heavy utilisation levels of about 25,000 units per month for residential customers," he said. Customers have received bills as high US$3 000 and one customer who called alleged that his bill for April was US$4,000. A survey in Harare has shown that TelOne customers are complaining of being given a raw deal. "We feel robbed and disappointed by the billing system TelOne is using. "Honestly, how can a home telephone bill reach a high tariff as US$3 000," said one customer who resides in Dzivarasekwa. According to TelOne, the average local telephone usage per month at household level is 100 units, which translates to 300 minutes per month. "At the local rate of US$0,07 per minute the average bill for a household is U$21. It must be stressed categorically that those customers whose bills are ranging between US$300 and US$700 as stated in your inquiry, did utilise the phone," said Mr Welbesi. Bills for one customer residing in Greendale, Athlone stood at US$447 for January combined with February charges. In March the bills surged up to US$609 and after the service provider announced the reduction of cost per minute for all local calls, the April bill stood at US$914. However, despite these high charges the customer said he only managed to pay what he could afford for all these months above and his phone has not been cut off. "I only managed to pay US$20 for each month from February up to April, luckily my phone has not been cut off," said a customer. (Source: The Herald) In brief:- Senegalese mineral-water producer Kirene is to launch an MVNO in the country under the brand name Kirene Mobile, according to local reports. The Kirene Mobile service, which will be hosted on the network of Orange Senegal, will be only the second MVNO on the African continent, after Virgin Mobile South Africa. Senegal’s telecoms regulator told Informa Telecoms & Media that it had approved Kirene’s partnership agreement with Orange, allowing it to launch services. A specific MVNO license is not required in Senegal. Kirene was advised by France-based MVNO specialist, Transatel. - Nigeria’s Minister of Information and Communication, Dora Akunyili has requested President Umaru Musa Yar’Adua for her ministry to be given supervisory control over the National Information Technology Development Agency (NITDA), the nation’s IT Policy implementing agency and Galaxy Backbone Plc, the government-owned technology company that was set up to wire all Federal Ministries, Departments and Agencies (MDAs). - Namibia’s Information and Communications Technology Minister Joel Kaapanda has introduced the long-awaited 95-page Communications Bill in Parliament which allows 'Big Brother' to intercept all electronic communication - using sophisticated hardware and software. - Fourth largest mobile operator in Nigeria, Visafone, has said that it would spend between $300 million and $400 million in the next two years for its network expansion. Specifically, the network expansion will involve the building of a backbone that will traverse the 36 states of the federation. It will begin from the South-East; navigate through parts of South-South before hitting the Lagos end of South-West. After this, it will move up North via Abuja. On the whole, about 3000 kilometres distance will be covered.
Nigeria based Main One Secures $66 Million AFDB Loan For Undersea Cable ProjectOne of Nigeria's telecommunications and broadband infrastructure companies, Main One Cable company, at the weekend, announced that it has secured a whopping sixty six million US dollars from the Board of Directors of the African Development Bank Group (AfDB) as financing to its undersea fibre optic cable connection along the West African coast. The project is estimated at a total cost of USD 240 million and would involve the laying of 7,000 Kilometres of submarine fibre optic cable between Seixal, Lisbon in Portugal to Accra in Ghana, and Lagos in Nigeria, respectively. The system will be based on a trunk-and-branch topology and include branching units to the Canary Islands, Morocco, Senegal, and Côte d'Ivoire. This investment further portrays the Bank as having strong support for African ICT projects after investments in the East African "EaSSy" submarine cable and other two satellites projects, Rascom and New Dawn. The 1.92 Terabits per second of available bandwidth will be leased wholesale to telecom operators and internet service providers on an open access basis, thereby encouraging competitive pricing and a large customer base. The project has already attracted broad interest and MST, the Nigerian based sponsor, is in the process of securing long term contracts with a number of the largest operators in Nigeria and Ghana. The considerable increase in available bandwidth from the Main One cable will provide telecom operators with the additional capacity they require to expand networks and mobilize a broader range of services. The system will contribute to an immediate 50 percent drop in the price of bandwidth in Nigeria and Ghana, and continued price reduction is anticipated over time: According to Tim Turner, AfDB Private Sector Director, "The project's main positive outcomes stem from its strong infrastructure development effects. By dramatically lowering the cost of ICT services, annual cost savings to West African consumers will range from USD 30 million in the early years to USD 160 million within 10 years." The Main One project aligns closely with the Bank's infrastructure orientation and private sector development strategy, and the ICT Strategy for 2008-2010 in particular. Specifically, the project is congruent with the Bank's Country Strategy Papers (CSP) for Nigeria and Ghana, both of which underscore private sector intervention in the infrastructure space. In addition, Main One ties in with the Bank's role as a lead agency implementing the medium- to long-term strategic framework of the New Partnership for Africa's Development (NEPAD). According to Funke Opeke, Chief Executive Officer of Main One Cable Company, "we are elated at the additional impetus which the 66 million USD facility from AfDB brings to the Main One cable project. This tranche of financing again underscores the confidence which key stakeholders repose on the Main One project, and our commitment to conclude the first phase of this project in mid-2010 as promised." The Main One cable project has recorded considerable progress that signposts a clear commitment to on-time project completion. Last December it was the beneficiary of the first ever submarine cable landing licenses to be awarded by Nigeria and Ghana respectively. Last March, following the completion of the 27 Kilometre in-shore survey operation near Portugal, it commenced its main route survey operations. Even while the survey work is ongoing, said Opeke, manufacturing of cable and sophisticated electronics within the submerged repeaters are also proceeding ahead of plan. The various suppliers on the Main One project, she said, are working steadily towards realizing the vital goal of on-time completion of a unique initiative that is expected to breathe a new life of vibrancy and reduced cost into the Broadband penetration regime in West Africa and subsequently, all over Africa. (Source: Vanguard) Internet surfing on mobile phone thriving in KenyaKenya is among the top five countries in Africa where Internet surfing on the mobile phone is thriving. Among the 12 African countries where the technology called mobile Web is used, Kenya lies in fourth position, according to a new report by Opera, a software company with headquarters in Oslo. South Africa leads the pack followed by Nigeria, Egypt, Kenya, Libya, Zambia, Tanzania, Cote d’Ivoire, Mozambique, Namibia, Ghana and Gabon. Opera developed the cross-platform Web browser technology known as Opera, which is nown for performance, standards compliance and small size, while giving users a faster, safer, and more dynamic online experience. The company has two mobile products, Opera Mini and Opera Mobile, the standard for mobile Web browsing on both feature phones and smartphones. According to the report, from April 2008 to April 2009 overall page-views in the top 12 countries listed increased 422 per cent. Overall unique users in the top 12 countries listed increased 169 per cent, and overall data transferred in the top 12 countries listed increased 348 per cent. Since the report’s last highlight of the continent in 2008, Nigeria has jumped from fourth to second position and Zambia from ninth to sixth. Mozambique, Namibia, Ghana and Gabon are, however, new on the list. The report shows that growth rates continue to soar in Africa especially in Libya, with 4,155 per cent user growth since April 2008, and Nigeria, with 2,353 per cent user growth. Kenya leads the top 12 countries in page views, with each user browsing 372 pages on average each month, it said. More mobile subscribers can now access internet through their phones mainly due to the drive by all the telecommunication providers who are now offering bundled services that include data. The other factor is availability of internet enabled handsets, with some manufactures coming up with handsets both at the top end and at the entry level phones. (Source: Business Daily) Online shopping picks up speed in South AfricaDespite disagreeing on its growth rate, companies say online shopping will experience growth as consumers turn to the Internet to cut shopping costs. A survey conducted by Neotel's consumer division reveals consumers are turning to online shopping as it offers significant savings. The report concludes that local online retailing is growing at an average rate of 35% a year and consumers can save an average of 20% by migrating to shopping online. According to the survey, consumers experience savings by reducing driving costs, which include petrol wasted sitting in traffic, as well as vehicle wear and tear. Reduced shopping time also incurs savings, as well as the reduction in impulse buys, usually of items strategically placed to tempt customers. Increased awareness of online shopping and a focus on cost saving measures also led to the growth of online shopping, the survey states. Convenience was also a key contributor, as consumers benefitted from 24-hour delivery times from some suppliers. The survey also states online shopping is becoming increasingly safe and this has attracted new shoppers. As Web sites become fraud-proof, with the latest security technology and encryption techniques, online shopping has become secure for consumers, the survey states. Neotel is encouraging people to shop online, because of the savings, and take advantage of the benefits of the Internet, saying: “The Internet not only allows you to harness global information, but also conduct commerce with the click of a button.” World Wide Worx MD Arthur Goldstuck says online shopping growth rates are lower than the survey says - but there will be a slow but steady growth over the next three years. He notes that a boom in online shopping was experienced between 2006 and 2008, with a 20% growth rate for 2008 and 10%-15% for 2009. Goldstuck says that, even though consumers are increasingly price conscious, there is no benchmark on how much one can save. That depends entirely on where a consumer shops, he explains. “The saving comes from shopping around. You don't necessarily save money from online shopping. It allows for price comparisons on the Internet, and that's where the savings are,” says Goldstuck. (Source: ITWeb) In brief:- Angolan minister of Telecommunication and Information Technology, José Carvalho da Rocha has reckoned as positive the progress on fibre optic cable project, started two years ago. 400 kilometres of fibre optic cables have rolled out between Luanda and Malanje. - Internet Technologies Namibia (ITN), made history in the country by deploying the first Juniper Network Equipment on its MPLS Backbone. The integration of Juniper Networks technology will enhance ITN's ability to offer corporate customers integrated communication solutions, from secure Internet access to Multi-Media on their virtual private networks (VPN). - The Nigerian Communications Commission (NCC) has partnered with Nigerian WiMAX operator ipNX to bring broadband access to all 36 states in the country through the ‘State Accelerated Bandwidth Initiative’ (SABI). The project has been long-delayed, having been postponed because of government red tape and a lack of budget. - Ethiopian Telecommunication Corporation (ETC) announced that it has made 69 to 98 per cent discount on client subscription fee for broadband internet services and 13 to 66 per cent discount has been made on internet service. Ethiopia telecom According to the corporation, which is the government monopoly telecom service tariff discount has also been made on CDMA services the initial fee to fixed telephone service has been reduced to 144.10 birr (around $12 ) from 283.30 birr ( around $25 ) previously.
Uganda: E-Government - Phase Two Begins This JulyThe information and communication technology (ICT) ministry wants to avoid the errors and challenges experienced in the first phase of installing the national data backbone fibre cables by involving local leaders. The ministry wants local leaders in areas where installation of the optical fibre cables is taking place to appreciate the value of the infrastructure. A pioneer sensitisation workshop was held in Luweero last week, in which local leaders were briefed about the costs, benefits and value of the national backbone and electronic government (e-government) infrastructure. ICT officials reckon that if local leaders own the project and can in turn educate their people, then the sensitive underground optical cables will be safe from hostile tampering by the local communities. It will cost $60.7m (about sh137b). The entire project will cost $106m (about sh250b) "There is need for political will, harmonising the national backbone infrastructure project with other telecom infrastructure projects, road works and local ownership," said Geoffrey Kibuuka, the ICT ministry's director communications and broadcasting. The national backbone and e-government infrastructure will upon completion enhance connectivity for data, voice-and-video communications between schools, health centres, agricultural and administrative centres across the entire country. This should then take advantage of the upcoming sea fibre cables that will start landing at East Africa's coast this month, further increasing and lowering access to Internet services. Alintuma Nsambu, the ICT state minister, estimates that upon the arrival of the sea cables in Uganda, the cost of broadband connection will reduce from $5,000 (about sh11m) to between $200 (about sh455,000) and $300 (about sh682,500). "Lowering the cost of bandwidth will help so many people sell their abilities and potential to the world," said Nsambu. "You can create assets and wealth just from your office. There will be resistance to this project. But stick and you will see the benefits." But leaders have urged the Government to have a comprehensive plan for future projects so that unnecessary damage to roads is avoided. There have been cases where private telecom companies and public electricity and water utilities have had to destroy troad reserves to install their materials. Patrick Samaanya, the ICT ministry's permanent secretary, mentioned that the Cabinet was looking at an all-inclusive proposal that should avoid such wastage. Already 1,684km of the optical fibre has been installed in Kampala, Mukono, Jinja, Entebbe and Bombo. Up to 27 ministries have also been connected and video conferencing is available in these ministries. In total, 2,118.64km will be covered by the backbone project. Huawei Technologies, a Chinese firm, is undertaking the installations. (Source: New Vision) HP announces the winners of the 2009 Innovation in Education Grant InitiativeHP’s Europe, Middle East and Africa (EMEA) region announced the 2009 EMEA winners of the Innovation in Education Grant Initiative, which rewards secondary schools and universities for their innovative teaching and learning projects. This year’s winners include academic institutions from 15 countries across EMEA. The 50 winning schools and universities will each receive a mobile technology solution, such as tablet PCs, laptops, printers, access points, and a cash donation valued at approximately 100,000 USD HP list price (approximately 75,500 EUR). They will also be invited to join a network of educators around the world who are working to design the future of high tech education through which they can share ideas and best practices in areas such as online learning, virtual worlds and simulations. In Africa the following schools and universities won: Egypt - Assiut University, Assiut - Cairo University, Giza - Faculty of Computers and Information, Assiut University, Assiut - Faculty of Computers and Information, Cairo University, Giza - German University in Cairo (GUC), Cairo Kenya - Kenya School of Professional Studies, Nairobi - Strathmore University, Nairobi Nigeria - Obafemi Awolowo University, Ile-Ife - University of Nigeria, Nsukka South Africa - University of Fort Hare, Alice - Osizweni Education & Development Centre, Secunda - Bokamoso Science & Technology Education Centre, Polokwane - Mnambithi FET College, Ladysmith - University of the Western Cape, Bellville - Esayidi FET Public College, Port Shepstone Tunisia - Institut National des Sciences Appliquées et de la Technologie, Tunis A Kenyan University was selected for its project that implements an eLearning platform to distribute digital content, providing training for secondary school students and teachers. This platform will allow students located in marginal areas and lacking source material to access digitally provided content in an efficient and cost effective manner. As part of this project, all participating University students will be required to invest time in the delivery and development of the digital content and to mentor secondary school students. The project will also deploy an interactive eLearning environment that facilitates the teaching and practice of Computer Studies. Bridging the digital divide for developing countriesThe BingBee, a touch pad which was developed four years ago to help bridge the digital divide and give poorer communities access to computer technology, is a success at the site where it was established in Grahamstown say its creators. BingBee was the brainchild of Rhodes Computer Science professor Peter Wentworth. The idea was to provide an information kiosk designed to improve literacy and numeracy skills in children through entertainment. The "computers" are installed behind a secure window in the kiosk but children can operate it from outside the building through a touch pad. This means it can be used in areas where such equipment would normally be susceptible to vandalism or theft. Four years ago, the technology was billed as cheap. The touch pads cost just R7 and, unlike most school computer labs, a BingBee site can be left completely unattended. It remains available at all hours, it automatically turns on or off on a programmable schedule, and is centrally manageable via the Internet. It was meant to provide broader access to information technology resources, especially in areas where such access was non-existent. Has it worked? Centre for Social Development (CSD) director Cathy Gush gives an unequivocal: "Yes". But it hasn't been smooth sailing. "We have had our hiccups. But it is really needed and utilised in the community and we fully intend keeping it going." The BingBee was launched in partnership with the CSD and the site of the first information kiosk with 10computers was the Raglan Road Multipurpose Community Centre (MPC). The MPC has a pre-school and serves as a training centre for the surrounding community. Unfortunately, the kiosk hasn’t been as vandal-proof as hoped and those determined enough have managed to do some damage. But the CSD and its partners are not giving up. "We have recently again revitalised and resuscitated the BingBee with the help of Professor Wentworth," says Gush. "We are also working with him and the Rhodes Education Faculty to develop new material." She said it was vital to get the community to buy into the project to cut back on the vandalism that has sometimes bedevilled it. And there are plans to expand the BingBee concept to a multi-purpose centre in Bathurst if funding can be found. "It is a great concept and deserves all the support it can get," says Gush. "It has had its problems but all the stakeholders are doing their bit to make it sustainable." The children clearly agree. The facebrick kiosk at Raglan Road is always a hive of activity with numerous children playing on the 10 computers. The Raglan Road MPC manager Thembakazi Seyisi says the children love it. And teachers in schools in Fingo Village also take their children to the kiosk to play and learn with BingBee. "It's such a useful tool for us," says Seyisi. "Children get tired of being in the library or in the classroom learning about computers without seeing them. This is practical. "They come here where there are interesting games to play and things to see on BingBee." Gush said Unicef and the provincial Department of Social Development were due to visit the Raglan Road MPC this week and would also be looking at the BingBee. (Source: Daily Dispatch) In Brief:- Microsoft Nigeria has launched the language interface pack for Windows Vista in three major Nigerian languages - Hausa, Igbo and Yoruba.
France Telecom takes bigger stake in Mobinil EgyptEuropean carrier France Telecom said Sunday that it has secured commitments from minority shareholders to acquire yet more of leading Egyptian mobile operator Mobinil. Mobinil is at the centre of an ongoing dispute between Egyptian carrier Orascom Telecom and France Telecom, that began in 2007, when Orascom initiated a lawsuit seeking to force the French carrier to transfer its Mobinil shares over to Orascom. However, the court ruled in France Telecom’s favour and required Orascom to transfer some of its stake in Mobinil to France Telecom. Mobinil is about 51 per cent owned by ECMS, a holding company that was jointly owned by Orascom and France Telecom, but under the latest ruling is now owned exclusively by France Telecom. Orascom also owns 20 per cent of Mobinil directly. But since the court order, France Telecom has been trying to pitch an acceptable offer to buy minority shareholders, which hold the other 49 per cent out of ECMS. However, the French firm has seen its efforts rebuffed by the Egyptian Capital Market Authority (CMA) for being too low. So on Sunday, France Telecom said that its mobile subsidiary, Orange, has received expressions of interest from a number of minority shareholders in ECMS, and has secured a commitment to buy shares in ECMS at a price of EGP230 (€29) per share. Orange said it has secured commitments for more than 3 per cent of the issued share capital of ECMS, representing more than 6 per cent of the free float of ECMS. (Source: Telecom.com) South Africa’s Altech Acquires Majority Stake in NuPayAllied Technologies Limited (Altech) today announced the purchase of 50% plus 1 share in NuPayment Solutions (Pty) Limited (NuPay), a payments processing company focused on the automation of electronic debit orders, providing authenticated and non-authenticated managed transactions within the card based and electronic funds transfer environments. Altech signed a share purchase agreement to acquire the majority shareholding in NuPay, together with ancillary agreements from ABSA Bank Limited for a purchase consideration of R53.5 million, on 29 May 2009. “This acquisition perfectly fits Altech’s strategy of growing its annuity revenue, which accounted for 79% of Altech’s total revenue before this transaction. It also grows the critical mass of our IT division, further complementing our existing operations. NuPay processes in excess of 500,000 successful transactions per month, via c. 2,800 points-of-presence. The acquisition allows Altech to supply the switching services, POS devices and related software, as well as provide ongoing maintenance and support to NuPay, which boasts the largest number of installed POS terminals in South Africa outside of the banking industry.” said Altech’s CEO, Craig Venter. NuPay complements Altech Card Solutions’ transaction switching division by providing expansion opportunities into new markets, increased transaction switching volumes and the possibility of exploiting diverse transactional and processing capabilities. NuPay also offers additional services such as a call centre and field support, which will be expanded to include all of the merged products and services within Altech Card Solutions. “The transaction has various positive spin-offs for Altech and NuPay. NuPay, through its extensive presence in the micro-finance payments industry, ensures that increased volumes of transactions will be processed through the combined switching capabilities. These transactions will continue to be acquired by Absa. The transactions are also largely done via Point of Sale terminals, which in future will be supplied by the Altech IT division” said Venter. He added that substantial synergies exist between NuPay and Altech’s other business units, particularly Altech Netstar and Altech Autopage Cellular, which have 500 000 and 1 million subscribers respectively that manage their monthly subscriptions mainly via debit order. NuPay was formed 10 years ago after the Usury Act of 1968 was changed to prohibit micro lenders from retaining borrower’s bank cards and PIN codes as security for payment. This change in legislation exposed an opportunity for an increase in banking automation in the area of loan repayment. The automation of payments increased the success rate of transactions processed through this payment stream, thus reducing bad debts for the major banks. NuPay has capitalised on the above, and has developed an impressive growth and profit profile over this period. The distinguishing and main service offered by NuPay, is Authenticated Early Debit Orders (“AEDO”). AEDO transactions are originated via a Point of Sale (“POS”) device by swiping a debit card and entering a PIN, allowing consumers to repay loans using accredited and payment industry approved pre-authorised debit order processes. NuPay also supplies Non-Authenticated Early Debit Orders (“NAEDO”), where no POS, debit card or PIN is required. Additionally, NuPay is a Transaction Service Provider (“TSP”), and apart from processing bulk debit orders for large organizations, also manages debit orders of institutions such as schools, clubs and churches which do not have the capabilities to manage complex systems. The company’s focus has essentially been on micro-financiers, but its services have the potential to extend to any customer that has a need for a collection mechanism. This could include small businesses or large corporates that wish to manage their debtors more efficiently. To preserve current efficiencies and standards, Altech will retain existing NuPay management and staff, whilst providing supporting administration services and strategic direction to the company. AG proposes out of court settlement over Ghana Telecom SaleThe court action by Prof. Agyeman Badu Akosah, a former Convention People’s Party (CPP) presidential hopeful and five others, against the Government of Ghana for the sale of 70 percent shares of Ghana Telecom to UK’s telecom giant, Vodafone International, seems to have come to standstill as the Attorney General Department has proposed a possible out-of-court settlement. This revelation came to light when Bright Akwetey, counsel for the plaintiffs, announced to an Accra Commercial Court that he was not prepared to move a motion before the court, as there were some discussions going on between the plaintiffs and the AG department on the matter. According to him, the plaintiffs and the AG have a common course in the current circumstances of the matter and therefore prayed the court to adjourn the matter for sometime for them to discuss the issue and see if certain agreements could be arrived at. Mr. Akwetey indicated that both parties, after deliberations, would bring the court feedbacks on the matter. A representative from the AG’s Department, Mrs. P.J Naana Dontoh, Principal State Attorney and Counsel for Vodafone, Festus Kayi, associated themselves with submission by Mr. Akwetey when asked about their comments on the submission by the trial judge. The response made the judge adjourn the matter to June 29, 2009. Prof Akosah, Kossi Dede, Dr. Nii Moi Thompson, Naa Kordai Asiedu, Rodaline Imoru Ayarna and Kwame Jantua, as concerned citizens, are suing the government over the sale of 70% of the shares state-owned telecom to Vodafone. The six are asking the court to dissolve the enlarged Ghana Telecom, which was created to effect the sale, because no such company exists and are also praying the court to restore the fiber optic network to the VRA and an order for a true and faithful re-valuation of assets of GT. After a pre-trial of the case on December 23, 2008, a seven-point critical issue was raised and agreed on by the three parties. The issues to be determined by the court include whether the court had jurisdiction to hear the matter, whether or not the plaintiffs have any locus stand in the matter, and whether or not Articles 6(1) (6), 10 (7), 12 and 13 (21) of the Sales Agreement contravenes the country's constitution. (Source: Daily Guide Ghana) Effects of HP's Restructuring, Job Cuts on South African UncertainHP's operations in SA are without a local head after the sudden resignation of country manager Oliver Fortuin last month, after just seven months in the job. A search for a replacement is under way. Nor does the local subsidiary have an official spokesman to disclose any specific information regarding the local effect of the cutbacks. Yesterday HP released a proposed restructuring plan for its Europe, Middle East and Africa region as part of an "ongoing global business transformation". The 5700 jobs to be lost in that region will reduce its 80000 employees by more than 7%. In March, HP's vice-president for the region, Francesco Serafini, said Africa was a potentially huge market for HP since it presented a vast target market for its products. However, any potential expansion plans now seem to have been overtaken by additional cutbacks. A more detailed breakdown of the positions to be lost in each country will be finalised in the coming weeks. Many of the cuts will come in Germany and Scotland, as HP will relocate its production facilities from there to the Czech Republic to reduce its running costs. Last week HP's chief financial officer, Cathie Lesjak, said the company expected to make a 2% cut in its headcount over the next 12 months. That made yesterday's news worse than its employees had anticipated, but the news has been getting progressively worse for several months. In February, HP workers received a memo from CEO Mark Hurd saying he was imposing wide-ranging pay cuts in an effort to prevent further job losses. That followed a first quarter earnings report showing a 13% drop in profit and a double-digit slide in the sales of its printers, servers and PCs. Hurd told employees there would not be any major workforce reductions for the foreseeable future, although there were pockets where restructuring was needed in a "workforce optimisation process". Executive council members had their pay cut 15%, other executives 10%, and other staff took cuts of 5% or 2,5%. While this was implemented in the US, wage cuts in Europe were initially limited to leaders, who were asked to support the measure. "In an environment like this, there's no margin for error and no tolerance for inaction," Hurd said. "My goal is to keep the muscle of this organisation intact but we do have to do something because the numbers just don't add up." In September last year Hurd had announced 24700 job cuts. (Source: Business Day) In brief:- South Africa’s mobile operator MTN's proposed 23bn tie-up with India's Bharti Airtel has won the support of its largest shareholder, the Public Investment Corporation (PIC), although the PIC wants a better offer for its shares. The state-owned asset manager supported the deal in principle, said CEO Brian Molefe, but he believed there was "room for improvement" in the price being offered. - The House of Representatives Committee on Information and Communications has said that it will back Globacom's bid to acquire Nigeria Telecommunications Limited (Nitel). - France Telecom-owned Orange Business Services has decided to increase its South African visibility. While the company could not provide specifics on its strategic plan for its new profile, it did hint at the possibility of growth in the local market through acquisition or partnership. The company also hinted at the possibility of growing its competitive strategy locally, which could give other providers a run for their money. Telecoms, Rates, Offers and Coverage (briefs)- Zain has added its Sierra Leone’s operations in its 'One Network' mobile service. - Rwandatel, Rwanda's second largest telecom company by market unveiled its post-paid package, targeting 5000 customers for the product by December this year. - Econet Wireless, Zimbabwe’s largest telecommunications company, last week launched its range of branded mobile phone handsets. The phones will be sold in a value starter-pack that includes a SIM card and airtime. Two models of the phones will be sold initially, but the company announced plans to launch more models in the near future. - Moroccan fixed-wireless and 3G mobile operator Wana and Chinese equipment provider ZTE have completed what they claim to be the world’s first trial of CDMA2000 1xEV-DO Rev. B technology on a commercial network. According to ZTE’s press release, the trial, which was conducted in collaboration with technology developer Qualcomm, demonstrated the next generation of EV-DO technology in a fully mobile environment by delivering a peak download rate of 8.8Mbps and a maximum upload rate of 5.36Mbps on the application layer.
MTN Ghana launches mobile TVMTN Ghana has launched its DSTV mobile at an impressive ceremony at Rhapsody’s in the Accra Mall. DSTV mobile from MTN will make it possible for MTN customers to tune in to their favorite DSTV channels on their mobile handsets, which is in collaboration with MTN, DMTV and Nokia. With DSTV mobile, an 11-channel bouquet is available including Africa Magic, Super Sport, Cartoon Network, BBC and CNN, which were only accessible through television sets, can now be easily accessed by MTN customers in Accra & Tema on their mobile phones. The Chief Marketing Officer of MTN, George Andah, said MTN is committed to serving the needs of its cherished subscribers regardless of their locations. “We do not rest on our laurels as we strive to provide nothing less than the best products and services.” He added that with just 12 months to the kick off of the 2010 World Cup in South Africa, subscribers will be able to watch all the exciting matches, and stories making the World Cup headlines through their DSTV mobile. He noted that “in an era where it is becoming increasingly difficult for people to get home on time to watch their favorite programmes on television, DSTV mobile from MTN comes as a big relief to give MTN customers access to TV programs everywhere , anywhere, anytime, right on their phone.” He said MTN will continue to bring excitement to the lives of its subscribers. The Minister of Information, Mrs. Zita Okaikoi in her address stated that the growth of the telecommunication industry in recent times has been phenomenal as it has also witnessed improved service delivery due to active and healthy competition within the sector. She said, “MTN today is not only offering employment to the many qualified youth in our country but also significantly, their contribution to tax, sponsorship of programmes and adherence to their social obligations are of enormous relief to government.” She indicated that while it is the commitment of government to guarantee a congenial environment for the investor to get the worth of his or her investment, government is equally determined not to compromise on customer satisfaction. “In the light of this we will urge players in the telecommunication industry to do more to guarantee customers’ fulfillment and also put in place effective mechanisms to monitor customer feedback for onward action.” Present at the launch was the Minister of Communication, Haruna Iddrisu, some members of the parliamentary select committee on Communications and other government functionaries. (Source: Daily Guide Ghana) Barclays links up with Safaricom to offer m-banking in KenyaBarclays Bank of Kenya has joined the mobile banking race as the number of commercial banks seeking to leverage on the fast penetration of mobile phones in the country increases. This sets the pace for greater access to financial services for the millions of Kenyans without access to financial services while heralding a new age of banking and mobile payment services on a mobile device. With the launch of “Hello Money”, Kenya’s largest bank in terms of assets joins Equity Bank, Standard Chartered Bank, KCB Bank, Post Bank and Consolidated Bank in the mobile banking turf. “The service will give customers the convenience of accessing banking services in the palm of their hands,” said Adan Mohammed, Barclays Bank Kenya’s managing director. Barclays Bank’s mobile phone service is rolling out in partnership with mobile service provider, Safaricom. A unique feature of “Hello Money” as mobile banking platform is the pin or encrypted system it runs on. BBK has introduced built-in security features into “Hello Money” to protect customers through the use of a secure gateway. Customers will use a personalised identification number to prevent unauthorised access. Some of the mobile banking solutions previously rolled out have operated more like SMS banking services which have been deemed unsafe due as issues of security are raised. Ordinary SMS mobile banking can easily be hacked with information technology experts ,raising questions over the service’s reliability and predictability for banking. The user experience is open for interpretation and consumer protection is therefore also difficult. Encrypted SMS deployments that use secure gateways while significantly more complex, solve a number of the above problems. (Source: Business Daily)
People- A day after the Federal Government voided the sale of the Nigerian Telecommunications (NITEL) Plc to Transnational Corporation (TRANSCORP), the Presidency yesterday approved the constitution of a Technical Board of Management for the distressed telecom giant. Members of the board are the Permanent Secretary, Federal Ministry of Information and Communications who would be the chairman, Dr. Christopher Anyanwu, Director-General of the Bureau of Public Enterprises (BPE), Mr. Steve Oronsaye (Permanent Secretary, Ministry of Finance), Acting Managing Director of NITEL (to be appointed), Ibrahim Kashim (Director, Information and Communications, BPE), Mr. Sam Worlu, Senior Special Adviser on Economics to the Vice President (Representative of the Chairman, National Council on Privatisation) and the Managing Director, NIGCOMSAT Ltd. - South Africa’s Teraco Data Environments announced that Guy Willner, co-founder and CEO of IXEurope (now Equinix Europe), has joined its board. - Noel Meier, the Chief Executive of MTN Uganda will retire. Themba Khumalo will replace him. Events:* SALVO GLOBAL: TELECOMS PRICING MASTERCLASS 8th - 9th June, Johannesburg, South Africa The course is designed to give participants a clear understanding of Pricing evolution and objectives, Influences on pricing strategy options, Pricing options & Bundling options. Participants will work themselves on a case study on price management that incorporates all steps in the pricing process. By the end of the two day course packed with real life case studies, participants will be able to learn techniques to deliver distinctive and profitable price models and develop strategies for their customers and businesses. Interested to participate, please go to www.salvoglobal.com/telecomspricing.asp * Mobile Banking & Financial Services Africa 20-22 July 2009, Southern Sun Grayston Hotel, Johannesburg Building on the highly successful inaugural event last year, the conference will again deliver timely insights into the key business, technical and security considerations that all players in the mobile banking and payments industry in Africa must address. For more information and to book your place now, call +44 (0)20 7017 7483 or e-mail your registration to us at registrations@iir-telecoms.com or book online at http://www.iir-events.com/IIR-Conf/page.aspx?id=19296 * INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT - EAST AFRICA 11-13 August 2009, Kilimanjaro Hotel Kempinski, Dar es Salaam, Tanzania The 11th East African Power Industry Convention, as part of iPAD East Africa, aims to address crucial issues within the regional power sector and find solutions to enhance growth, productivity and profitability for business as the need for a stable power supply for industry, business and mining is pivotal to the overall development of the economy of Tanzania and the EAC. Visit: www.ipad-africa.com/east or email: nicole.smith@spintelligent.com * 4th ANNUAL CONNECTING RURAL COMMUNITIES AFRICA FORUM 25-27 August 2009, Livingstone, Zambia The only event in Sub-Saharan Africa to look beyond ICTs and how we can bypass the infrastructure difficulties to achieve connectivity? The only event in Sub-Saharan Africa which can boast 3 full days with 30 Government Ministers and ICT Regulators from over 20 countries for you to learn from and engage with. For further information visit http://www.cto.int/ * Telecoms World Africa 31 August - 4 September 2009, Cape Town international Convention Centre - Cape Town Telecoms World Africa is an established forum for the communications sector in Africa. The only one of its kind, this event provides a platform for key stakeholders to discover the opportunities for growth in Africa, and establish themselves as market leaders… For more information visit website: http://www.terrapinn.com/2009/telecomza/ or email: katia.selibas@terrapinn.co.za * INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT - CONGO DRC 6-8 October 2009, Grand Hotel, Kinshasa, Congo DRC The Infrastructure Partnerships for African Development (iPAD) DRC 2009 conference and exhibition is a platform for sound investment and collaboration in the reconstruction of the DRC - under one roof between governments, the public sector and business. iPAD DRC 2009 is a one-stop-shop for investigating investment opportunities in the DRC and the region, opening up a previously inaccessible but lucrative market. Visit: www.ipad-africa.com/drc or email: nicole.smith@spintelligent.com * MMT 09 - Mobile Money Transfer 26-27 October2009, Dubai. MMT 09 is a 'must attend' event for anyone who is serious about remittances. Over 350 mobile network operators, microfinance institutions, money transfer networks, banks and technology providers will converge at MMT 09 to discuss the best ways to make money from mobile money transfer. Nowhere else in the world will you find so many MMT project leaders all gathered in one place. For more information visit www.mobile-money-transfer.com or email harpreet.sohanpal@clarionevents.com Jobs and Opportunities* Executive Director, Bandwidth Consortium Project The Bandwidth Consortium of African Research and Education Institutions (BWC) is a sub-Saharan Africa Regional Project supported by four major foundations collaborating through the Partnership for Higher Education in Africa (PHEA), among others. Commissioned in 2005, the BWC was previously hosted by the African Virtual University (AVU) and the International Development Research Centre (IDRC) in Nairobi, Kenya. This project has a mission to improve access of African universities, students, lecturers and researchers to knowledge and networking opportunities. The BWC achieves this mission by aggregating bandwidth requirements of various African universities and HEIs using a consortium approach and supplying vastly expanded bandwidth capacity and capability at relatively low cost to academic institutions in Africa, in order to enable them to obtain cheaper and more reliable internet access. The Consortium has about 28 sites in African Research and Education Networks and Institutions located in East and West Africa. To strengthen BWC operations, we are seeking a qualified candidate for the position of Executive Director, who will be headquartered in Abuja and whose salary will be competitive commensurate with experience. The application deadline is 20th June 2009. For further information on the job or to apply click on the following link http://bandwidthconsortium.org/VacancyED Contracts* Rwanda Development Board and Rwanda Civil Aviation Rwanda Development Board/Information Technology (RDB/IT) yesterday signed an agreement with the Rwanda Civil Aviation Authority (RCAA) that will see the two agencies forge a partnership to transform Kigali International Airport, Kanombe into an ultra-modern ICT supported airport. The open ended MoU will see RDB/IT set up a modern Flight Information Display System (FIDS), Aeronautic Message Handling System (AMHS), Vehicle Parking Automation Extension of Satellite Distribution 2G, Capacity Building, E-documents and Closed Circuit Television (CCTV) systems on the perimeter fence of the airport. * Mobitel and Alvarion - Nigeria Nigerian telecoms operator Mobitel has selected Alvarion to provide 802.16e WiMAX services for underserved areas throughout the country. Under the first phase of the deployment, Mobitel will utilise Alvarion’s BreezeMAX solution in the 2GHz, 2.2GHz and 2.3GHz frequency bands to offer voice and high bandwidth data services in the cities of Lagos, Port-Harcourt, Warri and Abuja. Initial rollout of the network is slated for the third quarter of 2009, with 20,000 subscribers expected immediately after launch.
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