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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 458 12th June 2009 Belgacom ICS to launch GSMA approved international M-money services called Home Send for mobile carriers this summerWith national M-money services spreading out across the continent, the time is ripe for a service targeted at the international remittance market. Belgacom ICS is one of three GSMA approved providers and has a service called Home Send. It is currently trialling it with a North African operator and plans to publicly launch it this summer. Meanwhile Zain is seeking to expand its Zap service in a similar way to its One World roaming service but is only in the early stages. Russell Southwood talked to Belgacom ICS last week about its plans. For several years the holy grail of M-money services has been to devise a product that can be used to pay international remittances from those in the diaspora globally to their home countries. The market is currently estimated to be worth US$375 billion globally, a figure which it is estimated will nearly double to US$700 billion by 2012. Among the top ten developing countries receiving remittances are Nigeria (US$10 billion) and Egypt (US$9.5 billion). Current charges are 4-5% of money sent through banks and up to 15% when using money transfer organisations. Because of these charges, it is estimated that 50% of remittances go through informal channels. Belgacom ICS reckons that by lowering the transaction fees to 2-5% it will be possible to address 50-70% of the market. Home Send is one of three initiatives endorsed by the GSMA’s Mobile Money for the Unbanked initiative (the other two being Western Union and RBS/Visa) and is particularly interesting for Africa for two reasons. Firstly, it is mobile-centric and secondly, Belgacom ICS is probably the largest wholesale carrier for operators in Africa. Therefore, in terms of the latter, it has the connections and ability to become the hub through which carriers can interconnect their M-Money services: both between African countries and elsewhere internationally. eServ Global is its technology partner and faciltator for the service. The company already has 80+ MNO customers worldwide in 50 countries. Belgacom acts as the Intermediary Payment Service Provider under the framework of European law. According to Catherine Bals, Head of Marketing Communications, Belgacom ICS:”Home Send enables mobile wallets to talk to each other. It can talk to Safaricom’s M-Pesa, Zain’s Zap, MTN’s M-Money or Orange Money and transfer and receive funds.” The service is currently being trialled with an un-named North African operator. Bals told us that although it had been asked for an exclusive deal by one large African mobile chain, it plans to roll it out across several operators in each market. For as Bals told us:”We are a one to many company.” It has signed a couple of agreements and plans to launch this summer. It offers three key services to operators: airtime exchange (in other words, Kojo in London can send his Dad airtime to ring him); remittances and roaming recharges. The transactions made are transferred to the customers’ bank on a daily basis and the system shows charges transparently to the end user. In practical terms, these charges can also be split between Home Send as the facilitator and the intermediary. As with all systems where a small charge is split between two people, this may prove a temporary sticking point. Nevertheless different percentage charges by country and any variation in national regulatory requirements can also be incorporated. The only other publicly announced contenders in the mobile space are Vodafone’s international version of M-Pesa and Zain’s “roaming” version of its M-money product Zap (see On the Money below). Safaricom’s Pauline Vaughan told us in April this year that its service would be available “later this year.” And the story on the Zain’s ZAP product makes clear that it has only really started the discussions to create a service. Meanwhile, progress is relatively slow for national M-Money systems. MTN Uganda announced that it had got 40,000 customers. The national billboard campaign shows the service helping customers in emergency situations do things like pay their rent before eviction or get money to pay a roadside mechanic. The company is telling people in the industry to watch out for a big push shortly. Zain (see Web and Mobile Data News below) is claiming that 1 million customers have the Zap service on their menu. This figure is fairly meaningless and can only lead a sceptical person to conclude that they do not have enough actual users of the service to make a proper announcement. Nevertheless, Kenya’s M-Pesa service took several months to take off. There are issues of trust and awareness of how the service works to be put in place in cash-using economies that take time. But the combination of connecting national customers to the diaspora looks set to provide some fairly spectacular growth ahead.
Zain Reported to Be in Talks for $12 Billion Sale of African Networks with VivendiDow Jones (citing Al Qabas newspaper) reported that Zain is in discussions with a French company to sell off its African operations. These same reports say that a sum of US$12 billion is being discussed with an un-named prospective French buyer. The company has been sacking staff across its operations and last week outsourced major parts of its network services to Ericsson. Reports have also reached us that it has been trying to raise capital in local markets to fund expansion. Zain Nigeria spokesperson, Emeka Oparah, told Nigerian e-news service Next: “I am not aware of the development. I only saw it as an alert from Google today, so I cannot say anything on it right now. Hopefully by tomorrow morning more information will start flowing on it.” There are only two obvious candidates if the potential buyer is a French company: France Telecom (branded Orange) and Vivendi. Of these two, Orange has the greater financial muscle to raise the kind of sale price mentioned and might benefit most. It has staked future growth on getting bigger in Africa and most recently bought Hits Telecom, a speculative operation put together by Arab investors. Both its most recent operations - in Kenya and Uganda - have been struggling. In Kenya it claims a million subscribers but these have been bought at the cost of a fierce price war that has seen ARPUs plummet to unsustainable levels. And in Uganda where it has just launched, it is not making speedy progress: informed sources say that its actual subscriber levels may be as low as 100,000-200,000. However, Vivendi has previous form. In 2001 when Zain’s operation was called Celtel, it made a serious offer to buy the company but financial pressures following the dotcom collapse forced it to pull out. Subsequently Celtel claimed damages in the matter and won 500,000 euros. For the moment it seems to be committed to making African acquisitions but none of them have been made outside of francophone Africa. Stop press: Reports as we went to press suggest that Vivendi is indeed the potential buyer and that if a deal cannot be reached Zain will turn to potential Indian and Chinese buyers. (Sources: Various) Uganda’s Telecoms Watchdog to Educate ConsumersThe Uganda Communications Commission (UCC), the country’s regulator is planning to start publishing complaints in the media raised by the public as a means of creating awareness. The move is also aimed at encouraging consumers in the communications sector to speak openly. "This will act as an empowerment tool," said Fred Otunnu, the UCC director of communications and consumer affairs. He was speaking during a workshop on consumer rights last week. It is envisaged that once the frequency of their poor service is exposed, then operators will be forced to improve their service quality. The consumer still faces challenges like slow Internet speed, ambiguous service agreements, unclear call lines and unsolicited e-mail. A lack of consumer rights awareness, strict requirements for complaints, fees for making complaints (in the form of non-toll free complaints line), continue to discourage consumers from airing their grievances and many of them opt to suffer silently. This according to the regulator has led to many years of consumer suffering "and they still have a long way in enjoying the benefits of their full rights." There were calls by industry players that operators like telecom firms also be compelled to publish the complaints they receive from their clients and how they address them. There is an increasing need for operators and regulators to concentrate on the needs of the consumers because market trends and businesses are now consumer-driven. Firms and operators that chose to ignore the consumer usually suffer in the very competitive market. "Owners now design their products according to the changing needs of consumers," said MTN legal and corporate executive, Anthony Katamba. Katamba, speaking for the private sector and citing MTN as an example, said the telecom giant was planning to hire 750 customer service personnel by the end of the year to bolster customer service. Katamba mentioned continuous market challenges as the depreciating shilling, which has increased the cost of doing business, heavy taxation, and bureaucracy in getting key approvals. Otunnu disclosed that the Commission had established a fully-fledged consumer affairs unit, which reviews and analyses consumer enquiries. "We usually handle complaints within 15 days although I appreciate that we have not been up to the point," said Otunnu. "We are planning to use a popular radio station to popularise our activities and try to reach consumers that do not have the technique of Internet." Meantime, a watchdog body, Uganda ICT Consumer Protection Association has been formed. The body will play an advocacy role. It's believed that this will go a long way in ensuring that the consumers get timely hearings in case of major complaints. (Source: New Vision) As LION lands in Madagascar, Orange roars for updated fixed line legislationMadagascar’s largest mobile operator by subscribers, Orange Madagascar, has announced that it has completed its submarine cable project, LION, and has connected the cable at Tamatave in the Toamasina region. Funded by Orange Madagascar, France Telecom and Mauritius Telecom, the 1,800km broadband cable links with the existing SAT3/WASC and SAFE cable and has a capacity of 1.3Tbps. It also connects Madagascar with the islands of Reunion and Mauritius, and Orange maintains the new link will contribute to the development of regional cooperation in the Indian Ocean. However, despite the completion of the development, Orange has complained that the Malagasy government has still not completed the necessary legal framework to allow the ‘full exploitation of the cable’. It has called on the state to regulate so that it can begin to offer commercial services. Incumbent Telecom Malagasy’s (Telma’s) monopoly on the fixed line sector was due to end on 30 June 2008, but regulator OMERT has yet to legislate to officially open the market. The regulator itself is supposed to have been replaced by a new body but has been in suspended animation for over two years. The current political uncertainty adds to the difficulties of getting the matter resolved. (Source: Telegeography) Suburban Links Nigeria And Ghana on its terrestrial fibre cable networkNigerian operator Suburban Telecom has announced a successful deployment of an extension to its existing fibre network (Nigeria to Benin) with traffic now able to go to Togo and Ghana. A leading GSM operator with presence in multiple African countries along the route is the anchor customer on this network and is already leveraging the reach the network provides to connect its operations between Nigeria and Ghana. This new terrestrial route offers some relief to those who had been using the SAT3 fibre for inter-country traffic and offers those who wish to avoid the functionally incompetent Nitel two landing station choices in Cotonou and Ghana. Significant parts of Nigeria’s traffic is already going to Benin Telecom’s landing station in Cotonou. Group Chief Executive Officer of Suburban West Africa, Bruce Ayonote while breaking the news, said that "there will be a significant impact on this market due to the deployment of this network; this will not only lead to a reduction in bandwidth costs but also a further reduction in voice tariffs as well. A lot of Africa's largest mobile operators have networks in multiple West African countries and can benefit from the connection that such a network provides. Regional financial institutions and multinationals can also leverage on this same infrastructure to connect their branch networks for improved data services. This network has also connected the incumbent carriers between all the countries back to Nigerian networks for higher quality voice and data exchange." (sources: various including Vanguard) In brief:- The Ghana Telecom University College (GTUC) in collaboration with Rising Data Solutions (RDS) have entered into agreement to provide training for Ghanaian students in Business Process Outsourcing (BPO) to create a special BPO-driven course designed to help schools excel in BPO-based skills. - Galaxy Wireless Communications Limited (GWCL) has denied petitioning President Umar Musa Yar'Adua or any person either directly or indirectly regarding the recent controversial licensing of national frequencies in the 2.3GHz band by the Nigerian Communications Commission (NCC). The statement signed by the manager, media relations of the company, Joy Idoko reiterated that it will not be making any further statements on the issue, because the matter had now been referred to its solicitors. - The issues with number portability have re-surfaced again, one year after they were put in the cooler. This time round, the Nigerian Communications Commission (NCC), the industry regulator, is pushing for its implementation against the collective wishes of telecom operators, who are asking for time to enable them settle issues of interconnectivity, robust infrastructure and billing method before the implementation of number portability. The NCC, which does not believe in further delay in the implementation of the scheme, last week, called for submission of proposals on the regulatory, legal and technical framework for the implementation of number portability in Nigeria. The call was an extension of time for proposals submission, to June 19, 2009, having earlier advertised for the implementation of number portability. - Angola Telecom is rolling out optical fibre cables in stadiums that will host matches of the African Nations Cup (CAN2010) in the cities of Luanda, Benguela, Lubango and Cabinda.
Public-private partnership formed to build international fibre-optic network in AngolaThe Angolan government, through the state-owned telecommunications company Angola Telecom and four other private firms of the sector, formalised on Thursday the public scripture of the creation of a joint-venture dubbed “Angola Cable” to build and manage the optical fibre network. For the conclusion of the optical fibre network, the partnership will invest USD90 million, from which Angola Telecom owns 51 percent and 49% is shared by four private companies, namely Mundo Startel, Unitel, Mercury and Movicel. The optical fibre network will permit Angola to be connected, in the field of telecommunications, to various African countries, as well as to Europe. The Angola Cable joint-venture, with a capital estimated at USD5, will start functioning effectively in 2011. Speaking to the press on the fringes of the agreement signing ceremony, the Angolan Telecommunications and Information Technologies minister, José de Carvalho da Rocha, said that this partnership will define the access to the optical fibre network. (Source: Angop) ACE submarine cable extended to South AfricaFrance Telecom-instigated ACE (Africa Coast to Europe) submarine cable system, which was intially planned to stretch from France to Gabon, will now be extended to South Africa connecting all countries along the West coast of Africa, from Morocco to South Africa. This new cable will provide broadband interconnection to the global telecommunications network to more than twenty-five countries in Africa and Western Europe. The ACE consortium currently comprises seventeen telecommunications operators. Three operators, Mauritano-Tunisienne des Télécommunications, Camtel and Companhia Santomense de Telecomunicações recently joined the original fourteen operators (Benin Telecoms SA, Côte d’Ivoire Telecom, France Télécom SA, Gamtel, Maroc Telecom, Orange Bissau, Orange Cameroun, Orange Guinée, Orange Mali, Orange Niger, Orange Spain, Portugal Telecom, Sonatel and Togo Telecom), which signed the Memorandum of Understanding approved in Dakar on November 27th, 2008. The ACE submarine cable system, which will be more than 14,000 km long, will be switched on in 2011. It will benefit from the state-of-the-art submarine cable technology and will benefit from a minimum capacity of 1.92Tbit/s capable of supplying the network connectivity required to meet the needs of many countries and secure international traffic. This brings to four (Glo One, Main One and WACS being the others) the number of cables that will be completed on the west coast of Africa. New Telkom South Africa ADSL wholesale pricing raises questionsTelkom/SAIX launched their new wholesale ADSL pricing model to local Internet Service Providers (ISP). The new pricing model, which kicked in on the first of June, introduces limited price reductions for longer term contracts. The standard per-Gigabyte wholesale price remained at a similar level to previous pricing, but ISPs willing to sign a one year contract will get a discount of over 10%. The discount increases to over 18% for those service providers willing to sign a 5 year contract. Elsewhere, these kinds of deals are described as “lock-ins”. The new ‘term contract option’ discounts create a better profit margin to SAIX reseller ISPs, but not everyone is impressed by Telkom’s discounts for long term contracts. It appears likely that Telkom is keen to lock-in ADSL resellers to a one year or longer contract just before SEACOM becomes operational later this month. One industry expert said that this may be seen as an underhanded tactic by Telkom to stifle competition in the wholesale bandwidth market ‘before it arrives’. Another concern is a new clause which seems to commit service providers to a minimum billed monthly usage limit. ISPs will have to commit to a set usage amount with SAIX which means that there will be no breakage for any usage lower than the committed usage level. Many ISPs sold bandwidth close to cost, hoping for under usage which would then be their profit. A committed monthly usage limit may remove this benefit during lower usage months like February and December. Not all local ADSL resellers knew about the changes when MyBroadband contacted them, but Telkom/SAIX confirmed the new model: “The current SAIX pricing model on ADSL Usage is based on normal month to month pricing. SAIX has introduced term contract discounts as an option on SAIX ADSL Usage should ISP's want to contract on term at a more beneficial per Gig price.” “The committed usage level is determined and negotiated as part of the term contract between SAIX and the ISP,” Telkom said. Despite potential wholesale discounts from other providers like Internet Solutions, after SEACOM becomes operational, many ISPs may decide to take advantage of Telkom’s new ‘term contract option’ to increase their current profit margins. The margin to ADSL resellers who make use of Telkom’s authentication servers - hence reselling standard capped accounts - is less than R 10 per account in some cases. Such a small margin means that an ISP can barely afford to provision an email account and support it before they start to make a loss. This is something which the Internet Service Providers Association (ISPA) tried to address in a 2005 Competitions Commission Complaint in which ISPA accused Telkom/SAIX of margin squeeze in the ADSL market. Telkom’s latest wholesale tariffs look be to be more of the same indicating that that not much has changed. Per GB billing provides ISPs with a more flexible model to build their own products and increase profitability, but it remains to be seen if Telkom’s latest wholesale ADSL pricing will benefit service providers and consumers. (Source: MyBroadband) In brief:- The Kenya Broadcasting Corporation reports that The East Africa Marine System (TEAMS) will be launched on 12 June 2009 as scheduled. Kenya’s permanent secretary of information and communications, Dr Bitange Ndemo, said, ‘From the outset we wish to set the record straight that the landing of the TEAMS cable is right on course and that the launch ceremony will be presided over by his excellency the President Mwai Kibaki.’ - In Nigeria, Information Communication Technology company, ipNX has launched the state accelerated broadband initiative (SABI) project in the ancient city of Kano state. - O3b Networks Limited (O3b) the developer of a new fiber quality, satellite-based, global Internet backbone infrastructure announced that Intersat Africa Limited (Intersat), a leading Value Added, Satellite Capacity Reseller will resell O3b capacity across the African continent. This reseller agreement will leverage O3b’s service offering and Intersat’s market knowledge and presence to extend the reach of O3b’s low latency, high bandwidth Internet access across the African continent. - AfriNIC-10 Public Policy Meeting which was held jointly with AfNOG proved to be a great success! One major outcome of the meeting was the approval of the Global Policy Proposal for the Allocation of IPv4 Blocks to Regional Internet Registries (RIRs). In line with the AfriNIC Policy Development Process (PDP), the policy proposal is now in the 15-day last call for comments period. - An online quest which is underway to “crown” the Face of Nigeria on Facebook has triggered enthusiastic interest among users of the popular social networking site. The Miss Facebook Nigeria is regarded as Nigeria’s first ever online photo beauty pageant/contest that is open only to Nigerian Facebook users to enable them show how photogenic they are. That appears to be paying off as scores of photographs have so far been uploaded and the interest does not look to drop anytime soon as other users cheer the contestants along. - Durban in South Africa has spent R6.5 million on its official 2010 Web site, which will showcase the city's Fifa World Cup developments to the country and visitors. Head of Durban's strategic projects unit, Julie-May Ellingson, says the Web site will initially serve as an information portal for residents and visitors looking for information on the city. While the price for the Web site may be high, she says it will be a “platform to showcase the city and its 2010 developments to the rest of the world” and falls within the city's budget.
Ghana to establish data centre to support BPOThe Minister of Communications, Haruna Iddrisu on Tuesday said government was working to establish a national data centre to support the development of the Business Process Outsourcing (BPO) industry. The BPO industry is an information technology enabled service industry in which clients from other parts of the world subcontract services of which they have low competitive advantage over, to local firms who have high competitive advantage in that area. He said government was working to put up fibre optics across the country to support the activities of the BPO industry to stimulate growth of the economy and make it a destination of choice for outsourcing. The Minister said this during the signing of a Memorandum of Understanding (MOU) between the Ghana Telecom University College (GTUC) and the Rising Data Solutions (RDS), a Ghanaian multinational BPO provider to design and implement a BPO-specific training course to be implemented by the GTUC. As per the terms of the MOU, the RDS would enhance professional skills through training by the GTUC faculty in BPO, staff interactions, exchange of experiences and best practices as well as employ qualified GTUC students to work with it. Iddrisu, whose speech was read on his behalf by Botingna Al-hassan, a Director at the ministry, said the BPO industry had become a fast-developing industry, driving the economies of many countries in the world. It is estimated that the sector could provide over 37,000 jobs for the youth by 2011 in Ghana, with an added value to the country’s economy of over $750 million. He said the country had the requisite human resource that needed to be trained and positioned to enter the industry and earn a decent living. He therefore commended the GTUC and the RDS for signing the MOU saying it would help equip the youth with the needed skills to enter the industry. Dr Osei Darkwa, President of the GTUC, said the industry was currently faced with shortage of manpower, which was restricting its growth. He said it was to reverse this trend that the GTUC signed the MOU with the RDS to develop a talent pipeline in the short and long term, which would ensure continuous supply of trained manpower to feed the industry. (Source: GNA) Tanzania moves to lower ICT costsThe Tanzanian regulator’s Director-General Professor John Nkoma pledged during World Telecommunications and Information Society Day to cut the cost of ICT services to enable more people to use them. “While the main goal is to provide ICT access to all, we should be cognisant of the fact that many people who are within coverage areas of ICT are still not being served because of the high costs of services,” he said. Prof. Nkoma said Tanzania has seen exponential growth in the use of ICT, especially of computers, radios, televisions and more recently mobile phones with a tele-density of over 33% (13 million simcards in a population of 40 million). He said that Internet utilization had increased to about 5% of the population. He added that Tanzania still has challenges in reaching the underserved areas in order to ensure equitable access to ICT to all areas, and that the government is finalizing the implementation of the Universal Communications Access Fund. The TCRA boss also noted that the proliferation of ICT in the country has a positive impact on the economy, with ICT as enabler for economic activities. (Source: National News) US computer firm scores a World Cup deal in South AfricaA computer company based in Birchwood has secured a deal in South Africa ahead of the country hosting next year’s World Cup. J2 Retail Systems, which makes PC-based touchscreens and LCD touchscreens, has secured a deal with Star POS South Africa for the distribution of goods in the whole of southern Africa. And the new geographical market for the Clayton Road company is set to be a success ahead of the tourism boom expected to hit the country when the World Cup starts this time next year. Moray Boyd, co-founder and managing director of J2 Retail Systems, pictured, said: “The South African market is very focused on leisure and hospitality through its extensive tourism industry. “The 2010 hosting of the football World Cup will bring increased demand for point-of-sale systems in both these sectors and in retail.” Christina Fielvard, J2’s business development director EMEA (Europe, Middle East and Africa), negotiated the deal. She said. “We have been impressed by the professional nature of Star’s activities in South Africa and we believe that this new partnership will bring benefits to both parties as well as to the retail industry itself. “Star’s understanding of the local market bodes well for both companies going forward.” Ernie Boardman, managing director of South African-based Star, added: “For some time we have been searching for this type of hardware and are excited about this new relationship.” (Source: Warrington Guardian) In Brief:- Qualcomm Incorporated from South Africa will be showcasing its' Kayak PC alternative that allows for availability and affordability of high-speed wireless internet access at the West and Central Africa forum scheduled for Abuja next week. The Kayak reference design uses Qualcomm's dual-core Mobile Station Modem (MSM) MSM7xxx-series chipsets to provide both computing and connectivity.
Main Street Technologies signs equity deal with AFC for the roll out of Pan-African Submarine Cable SystemAfrica Finance Corporation (AFC) and other investors have closed an equity financing deal for the Main-One Submarine Optical Fiber Cable System. AFC is one of the largest investors in the USD240million African led project. Debt finance for the project is being provided by a consortium of development finance institutions led by the African Development Bank and by a group of Nigerian banks. The Main-One Cable System is an undersea fiber optic cable system that will provide much needed telecommunications capacity and link countries on the West Coast of Africa to Europe and other parts of the world. The project consists of approximately 7000 km of cable between Portugal and Nigeria with branching units to the Canary Islands, Morocco, Senegal, Côte d’Ivoire and Ghana. The Main-One Cable will deliver 1.92Tbps of bandwidth - equivalent to ten times the available capacity of the existing fiber optic cable serving the west coast of Africa and approximately two hundred times the satellite capacity currently available across Sub-Saharan Africa. The service will operate on an open access basis to telecommunications, internet, and data providers in West Africa. When it comes on-stream in 2010, Main-One will improve access to the internet and vital telecommunications services to over two hundred and fifty (250) million people in West Africa whilst also lowering associated communication costs in the region. A second phase of the project that will extend connectivity to South Africa is anticipated. Low internet penetration rates, poor services and relatively high costs associated with telecommunications services in Africa is made worse by inadequate bandwidth capacity. Main-One will address this issue and contribute to the evolution of the West African telecommunications industry. It will act as a catalyst for business efficiency and competitiveness hence aiding the economic development of the region. Ms. Funke Opeke, the CEO of Main Street Technologies, the Sponsor Company noted that, “AFC brought a combination of technical, institutional, regional and financial skills into the project. The participation of AFC enhanced the ability of the project to complete the necessary financing for its implementation.” Andrew Alli, the CEO of AFC noted that “AFC is proud to be a partner in the Main-One submarine cable system project, an African conceived and driven project which will open and integrate the markets of the continent. The project will provide much needed bandwidth for wider provision of affordable and cost effective telecommunications and internet services in West Africa, with specific focus on Nigeria and Ghana. The second phase to South Africa will ensure that such benefits also accrue to Southern Africa. AFC was formed principally to spearhead infrastructure projects of this nature and the achievement of financing for the project is a manifestation of the vision and objectives of the Corporation” The Africa Finance Corporation (AFC) is an African led financial institution with the mission to improve African economies by proactively creating, developing and financing infrastructure, industrial and financial assets. Zimbabwe: Econet Rakes in U.S.$87.9 Million RevenueEconet Wireless Holdings has raked in a revenue of US$87,9 million since the introduction of the multi-currency system, early this year. In a statement accompanying financial results for the year ended February 28 2009, Econet Wireless said its turnover remained subdued for the first 10 months of the financial year, due to controlled tariffs. "However, the last two months of January and February recorded an improvement in revenues following the approval of the multi-currency systems." Econet executive director Douglas Mboweni said the company had secured the funding to double its capacity. "Through our parent company, Econet Wireless Group (EWG), will expand its capacity, from the current 2,5 million subscribers to 5 million subscribers." Currently, Econet has a connected capacity of about 1.2 million and expects that number to exceed two million by the end of this year. He said that at the beginning of the year, group chairman Strive Masiyiwa had put in place a task force to mobilise resources for the expansion of the Zimbabwe network. The task force comprises executives from the head office, as well as the local company. Mboweni said the team which has travelled around the world has had "spectacular success", and they are now turning away some funders, as they now want to focus on implementing what they have. The company said the network rollout in Matabeleland and Bulawayo was successfully implemented after the commissioning of new equipment. A launch of data services was implemented and the company is now at advanced stage of rolling out the 3G services. The group performed a revaluation of its property, plant and equipment in order to reflect a fair value of the business assets. On its general outlook, the introduction of the use of multiple currencies in the economy, coupled with the pegging on tariffs in real terms, the stability of prices and the drive to expand the network have made the prospects for the group brighter. The company re-valued its assets in US dollars, showing the growth of its balance sheet to have increased to US$176,4 million. However the revaluation in the assets resulted in a depreciation charge of $18,4 million, which contributed significantly to a net loss of US$2,1 million for the year. Management was not unduly concerned with this number, given the turmoil in the first 10 months of trading. Services that had been suspended have all been restored, and new ones have been introduced. The company undertook a major study of salaries in the region of cell phone operators, and is now paying its staff based on that study, as a result the haemorrhaging of staff to other countries has stopped, and many are now coming back to rejoin. Obsolete systems and equipment are being updated, even as the expansion is taking place. Mboweni said whilst the process of mobilising funds, placing orders with suppliers for equipment, as well as local construction, created a lead time on delivery of new capacity, the company has now begun to release capacity for pre-paid lines. In the last two months, the company has been selling about 5,000 new lines per day, and expects this to increase as more equipment is received and installed. (Source: The Herald) Zain Plans Cross-Border Money Transfer Service in East AfricaMaurice Newa, the Zain chief commercial officer, said the mobile company was in discussions with the different central banks about the possibility of transferring money across borders the same way voice is today transferred without any extra charges. "The technology is not a problem. It is the regulatory issues and right now we are talking to the different central banks about how we can transfer money across the borders," Newa said as the company announced its trustee partnership with Standard Chartered Bank Uganda last week. Newa said that coupled with its One Network cross-border service, Zain's mobile banking platform will be the world's biggest cross-border mobile commerce service. "With ZAP, Zain customers will soon be able to make cross-border payments and transfers between Kenya, Tanzania and Uganda with no extra charge," Newa said. One Network allows travelling customers to move across geographic borders without roaming surcharges. Zain is due to launch ZAP, a mobile commerce service that will allow Ugandans transfer money internally. Already operational in Kenya and Tanzania, ZAP offers accessible packages of mobile banking features currently available on the African continent. "We have finalized regulatory issues with Bank of Uganda, which has allowed Zain to use the full suite of mobile commerce services," Mr. Yesse Oenga, the Zain Uganda Managing Director said. "That means that the ZAP service with Zain will not be limited to money transfer but will also include mobile airtime transfer, mobile banking, mobile merchant payment and cross-border money transfer," he added. The partnership will enable Zain customers to use their mobile phone to pay bills, pay for goods and services, receive money and send money to friends, family and business partners. The services also helps one deposit and withdraw money into/from their own bank account, check their account balance and keep track on payments and top up their own airtime or top up someone else's. "We are extremely excited to be partnering with Zain on this ground-breaking initiative," Lamin Manjang, the Chief Executive Officer Standard Chartered Bank said. The ZAP service in Uganda has already been activated with over 1 million Zain customers possessing the service in their phone menus. Zain has enabled all existing SIM cards over-the-air. For those whose service is not yet activated, they will have to register to use the service. "All a customer has to do now is register their details at a registered ZAP agent, Zain outlets across the country and at the Zain headquarters in Kampala," a press statement reads in part. Customers will also benefit from being able to access the service 24 hours a day, seven days a week through their handset menu and enjoy the convenience of having access to cash anytime, anywhere. To register, one only needs their valid ID. Zain will then provide the customer with a virtual bank account, which will allow them to use their mobile phone in much the same way as a debit card and manage their money through their handset. (Source: East African Business Week) South African Paracon expands businessIT recruitment company Paracon is expanding through the acquisition of IC Blue Technologies' resourcing business, for R20.7 million in shares and cash. Mireille Levenstein, group FD, says the acquisition will increase Paracon's exposure to parastatals, especially in Gauteng, where it is not currently strong. IC Blue provides IT resources and services in SA, as well as contracting and permanent placements. Mainly blue chip and parastatal clients, mostly in the Gauteng and Cape Town regions, represent its client base. IC Blue will also give Paracon the potential to grow its market share in Cape Town and Gauteng, because of IC Blue's client base and geographic spread. Paracon will gain access to a larger client and contractor base from IC Blue. Levenstein says Paracon will be able to offer its clients an extended database of candidates, and will also have access to a broader client base with which to work. IC Blue also bolts in nicely with Paracon's existing business, she says. The deal, which became effective at the start of the month, will cost R10.5 million in cash, with the balance to be paid in 9.3 million Paracon shares, at R1.10 a share. Paracon also expects to inject about R7 million in working capital into the company. Levenstein says the company will not be earnings enhancing for the first year, but, as soon as synergies in areas such as shared services and property start coming through, the acquisition will add to earnings. (Source: ITWeb) In brief:- France Telecom has ruled out making an increased offer to buy out minority shareholders at ECMS, Egypt's largest mobile phone operator. The stance of France's leading telecoms company means a bitter dispute between it and Orascom Telecom, the Cairo-based mobile operator, is unlikely to be solved quickly. France Telecom and Orascom are at loggerheads over the French company's attempt to secure full ownership of ECMS, which has 21m customers. The two companies jointly control ECMS via Mobinil a company that owns 51 per cent of the Egyptian mobile operator. - Zimbabwe Cabinet has approved the privatisation of state assets. This will include the national telecommunication incumbent TelOne among other public held companies. Minister of Finance Tendai Biti said that government would assess different state assets and decide on the model which they will use either to commercialise or privatise them. - In Ghana, Vodafone says the long period it takes to clear goods at the entry ports is affecting its projected roll out of key installations to enhance quality service delivery. Briefing the Parliamentary Select Committee on Communications on a visit to the compan, David T. Venn, Chief Executive, said "We have a lot of catching up to do. We cannot catch up if we have to wait three to four months to clear goods at the port in addition to the numerous hurdles associated with it". Telecoms, Rates, Offers and Coverage (briefs)- Multilinks, which was acquired by Telkom South Africa in 2007, said it has invested N65 billion in capital expenses since then to develop the company's network infrastructure in bid to build a robust national telecom network throughout Nigeria . The investment has gone in expanding the network to cover 58 towns and cities across Nigeria, with plans for additional 24, increased subscriber base to 2.5 million and support a five year national fibre optic infrastructure development plan. - Rwandatel has begun the commercial roll-out of its post-paid services, targeting 5,000 clients before this year ends. Rwandatel, owned by Lap Green Networks, a Libyan firm, and the Rwandan government, is the second largest telecom company in the country by market share. -In Zimbabwe, Information and Communication Technology Minister Nelson Chamisa has ordered the government owned Tel One company to slash its high tariff charges and match billing systems used in other countries in the region.
MTN Mobile Money Service Moves Sh5 Billion in UgandaThe MTN mobile money transfer service has moved over sh5b in about 180,000 transactions since its launch in March. The telecom giant disclosed that over 40,000 people mostly those doing upcountry transactions had subscribed to the service. Richard Mwami, the head of mobile money, indicated last week that the subscriber numbers for the service were steadily growing. This, he said, was because the service offers an easy payment mechanism akin to traditional banking, which many people did not have access to before. "The educative part is critical and it takes time for people to understand that their mobile phones can act as a bank and that they can make payments immediately with their monies safe all the time," said Mwami. At the time MTN launched its money transfer service, uganda telecom also announced a partnership with Redknee Solutions Inc. to provide mobile money solutions. ZAP, a mobile money product of Zain, already operational in Kenya and Tanzania, is also set to become active in Uganda in days. According to telecom experts, the mobile money transfer service should in the future be able to have a regional platform especially if the East African Common Market takes shape. In countries where the mobile money transfer service pioneered, the facility has transformed the telecommunication landscape because of its convenience and ability to tap the un-banked population. It has also spurred rural economies by making more money available to the rural population especially farmers and small scale traders who previously found it difficult to improve their businesses due to delayed payments. "In Kenya, a similar service (M-Pesa) has been instrumental in accelerating rural economic growth by between 4-5%. "We expect that MTN mobile money will also help accelerate Uganda's economy by similar margins" said Mwami. MTN mobile money charges a smaller percentage compared to what other conventional service providers charge. Mwami explained that to transfer sh10,000 and above, traditional money transfer providers charge sh13,000, while the MTN mobile money service charges sh800. MTN has over 7,000 mobile money outlets countrywide. Less than 20% of the entire Ugandan population is involved in formal banking. This has left telecoms with a great opportunity to cash-in on the huge gaps left by the formal banks through innovative products like mobile money transfers. (Source: New Vision) Congo-Brazzaville: Dial 115 and save a child's lifeThe public and private sectors in Congo have joined forces to use near-ubiquitous mobile phones in an effort to save the lives of thousands of children who die of treatable conditions every year. About 125 of every 1,000 children in Congo die before their fifth birthday, with half of this number not making it to the age of one. In eight out of 10 cases, easily curable conditions - malaria, diarrhoea, respiratory infections, malnutrition - are to blame. With the introduction of a 24-hour toll-free medical hotline set up by the Congolese government, UNICEF and a mobile telephone network operator, professional health operators will be on call to respond to queries about paediatric emergencies. Despite its lack of development and endemic poverty, almost all of Congo is covered by mobile phone networks and most of the population has easy access to a phone. "This is a welcome permanent service, which will provide people with free information on how to handle emergency infant health conditions and provide childcare tips," Koen Vanormelingen, the UNICEF representative in Congo, said. The service "will provide immediate information in moments where ignorance causes anxiety and uncertainty,” said health minister Emilienne Raoul. "Our policy is to prevent disease and prolong children’s lives as much as possible. This strategy will complement other conventional strategies in place," she said. Callers will receive counselling on how to identify and address the diseases affecting their children and advice about the suitable medical facilities in their vicinity. (Source: IRIN)
PeopleThe following people have joined AfriNIC Board: Southern African Region: Mark J. Elkins (of South Africa): Primary; Silvio Almada (of Angola): Alternate; (2), Eastern African Region: John Walubengo (of Kenya): Primary, Lillian Wambui Karanja (of Kenya): Alternate. The term of the newly elected Board members start on 01 July 2009 and for a three-year period. Events:* 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 * 11th EAST AFRICAN POWER INDUSTRY CONVENTION 11-13 August 2009, Kilimanjaro Hotel Kempinski, Dar es Salaam, Tanzania Tanzania is proud host of the 11th EAPIC, which is the strategic regional event for all stakeholders in the East African power industry. EAPIC highlights new opportunities, provides attendees with the opportunity to renew and build relationships and bring knowledge and solution to the challenges facng sustainable development in the East African power sector. For further information please click on the following link www.esi-africa.com/eapic * 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
ContractsZain and Ericsson - Nigeria Ericsson says that it has won a five-year network management contract with Zain Nigeria. Under the agreement, Ericsson will be responsible for the network operations, field operations including optimization, third-party vendor management for Zain's GSM/WCDMA networks, and business support systems. Ericsson will serve more than 4000 sites across Nigeria on behalf of Zain. As part of the agreement, about 450 employees will be transferred, under their existing terms and conditions of service, from Zain to Ericsson, where they will undergo further training in the latest wireless technologies.
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