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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 459 19th June 2009 Fibre backbone cables spreading across the continent should lead to cheaper traffic between countriesWith the arrival of six international fibre cables over the next two years, the race is on to provide national fibre backbones and competitive connections between countries. There have been for announcements this week that show that the arrival of these international cables has sparked a wave of fibre build-outs. These new routes should lead to both cheaper national backhaul rates and the switching of inter-country traffic from international to regional routings. Russell Southwood looks at what happened this week and what it means for carriers and bandwidth users. There were four national backbone and inter-country announcements this week affecting Cameroon, the Indian Ocean islands, Rwanda and Togo. All are part of the wider pattern of African carriers gearing up to make the change from having very little fibre capacity to having more than they know what to do with. This week the none-too-effective Government incumbent Camtel announced that it will build a 5,600 kms national fibre backbone across the country. At present there are only two fibre routes with the romantic names D1 (Douala-Edéa-Nkondjock-Matomb-Mbankomo-Yaoundé) and D2 (Douala-Mbanga-Nkongsamba-Bafang-Baham-Bafoussam-Bandjoun-Bangangté-Bafia-Obala-Yaoundé). The first phase of the project is to extend the fibre network to the country’s ten region capitals. The budget for the project is FCFA 76 billion and with contracters Sagem and Alcatel, Camtel anticipates that by 2012 it will have laid 3,000 kilometres. According to Camtel, one of the objectives of the project is to lower its national backbone operating costs. For budget reasons, some of the links will be microwave initially: for example, between Buea and Bamenda, and also between Bafoussam and Ngaoundéré. It aims to lay the cable in trenches alongside roads, particularly as part of the national road building programme. No mention has been made of the existing fibre that the Cameroonian power utility already has that it would like to licence. Why not? In the south, there will be two extensions; one to Mbalmayo and the other to Nyong. These will then link to three other countries: Gabon, Congo-Brazzaville and Equatorial Guinea. The World Bank is providing financial assistance for this part of the work as well also funding links to Chad, Central African Republic (which has thus far been on no-one’s list to connect to) and DRC. This week Orange Madagascar (in consortium with Mauritius Telecom and its parent company) announced that it had completed the Lion cable project that from a landing station at Toamasina will connect the island to several of its neighbours and on to the east coast cable landing stations. The 1,800 km cable offers 1.3 Tbps connects Madagascar, Reunion and Maritius. It is promising to cut existing tariffs by five times. Although essentially a France Telecom cable, it will be forced to be competitive. In Reunion this has been imposed by the French regulator ARCEP which bought down the price of capacity on the SAFE cable to US$410 per mbps and in Mauritius, the Government has said that any licensed landing station will have to be offered on an open access basis. Talks are proceeding in Madagascar as to what basis it will be licensed on. Also this week the Minister in Charge of Science and Technology in the Office of the President in Rwanda, Prof. Romain Murenzi made much hoopla about connecting to Uganda and Kenya to receive the new international capacity from Kenya. There are two routes to Uganda (Rwandatel and MTN) and both will be connected shortly. There is a project (again World Bank funded - US$24 million) to connect to Burundi which will also build a national fibre backbone. Rwanda itself has employed Korea Telecom to build its national fibre backbone.Rwanda is represented in the EASSy consortium by MTN Rwanda and Rwandatel and Altech will be the national POP for the Seacom cable. Finally at the local level Togo Telecom becomes the second telco (after Mauritius Telecom) to implement a fibre-to-the-curb solution: the contractor, ECI Telecom will put in place the network architecture to build out to 300 cabinets across the country. There are also two fibre to the home solutions that are currently building: 21st Century in Lagos and Algerie Telecom. These solutions will take high levels of bandwidth direct to the company and the home, enabling applications like IP-TV. Two things should flow from these kinds of developments. Firstly, with international bandwidth arriving at the landing station, the prices offered must cause both carriers and their customers (particularly the larger ones) to reflect on the strange disparity between the relatively cheap international bandwidth (on a dollar per kms basis) and the much higher cost of national backbone capacity on the same basis. Arguably terrestrial fibre capacity is more expensive to operate than international submarine capacity but not that much more expensive. Secondly, the current default position for traffic routing between African countries- particularly for voice traffic - reflects the reality referred to above. It is cheaper to route via London and New York and the higher your volume of minutes, the better your marginal discounts. However, with an increasing number of cross-border routes and with a small number for which there are competitive operators, it must soon be time to reconsider the default position. For if operators can get regional fibre prices down to the same or below the international level, they will not have to pay for international fibre or satellite capacity in dollars, thus making potentially significant savings for themselves. A stronger US dollar simply reinforces this argument.
BSNL drops plan to bid for Tunisian licence while Tunisiana will float soonBSNL has dropped plans to bid for a unified fixed/mobile telecoms licence in Tunisia because it says the potential returns are not high enough. ‘We did not bid for Tunisia...We did not find returns on our investment,’ a senior BSNL official told an Indian newspaper. BSNL has reportedly shortlisted eight consultants, including Ernst & Young, McKinsey, KPMG and PriceWaterHouseCoopers, to assist with its plans for mergers and acquisitions, strategic partnerships and overseas forays. The state-run firm has so far concentrated on the Indian market, but has decided to expand overseas. Sources say BSNL has a cash surplus of over USD10 billion to fund its overseas foray. To date, Turkcell remains the only known bidder for the technology-neutral concession, due to be awarded this month. Meanwhile Reuters reports that Tunisian cellco Tunisiana, a joint venture of Kuwait's National Mobile Telecom (Wataniya) and Egypt's Orascom Telecom, will soon list on the Tunis bourse. According to TeleGeography’s GlobalComms database, Tunisiana had a 50% share of the wireless market at the end of March 2009, with 4.3 million customers. It competes with Telecom Tunisie arm Tunicell which accounted for the other half of subscribers. (Source: Telegeography) Rwanda’s Telcos React to Increase on Airtime TaxThe country's telecommunication companies have given very different reactions to the 2009/10 budget increase of excise duty on airtime which rose from 3 to 5 percent. Khaled Mikkawi, the new MTN Rwanda Chief Executive Officer (CEO) said that he was surprised by the increment. "All I can say is that we were all surprised, this is something we did not expect to happen at this time of the year. We are already in the middle of the year and we did not have this increment planned for in our annual plans," Mikkawi said. Mikkawi in a joint teleconference alongside MTN COO Andrew Rugege and Chief Finance Officer Richard Tushabe said that the tax increment is not well timed and will have a direct impact on the revenues of the company and its expansion plans. "Honestly what all the networks in the country, MTN, Rwandatel and Tigo are thinking about is penetration, reaching out to people in all corners of the country, therefore what we expected are subsidies that would support us in expanding the subscriber base and network coverage but not tax increments" said Mikkawi. During budget reading Musoni said the decision to increase tariff rates had long been agreed upon with telecom operators."It has been decided to increase the excise duty on airtime from 3% to 5% as initially agreed with the players in the sector to progressively adjust upwards the rate rather than a one-off shift in the tax rate," Musoni said. However, Mikkawi said the increment will not only have a negative impact on the company's revenues and targets but also end users will also feel the pinch. "We have not made an evaluation to find out how these extra costs will be covered but am sure end users will also be affected. The 2 percent increment means that there is a two percent increment in the expenditure and a 2 percent reduction in revenues. Generally there is a two percent effect," Andrew Rugege, MTN COO explained. Rugege further said that since 2007, when the government reduced excise tax on airtime from 10 percent to 3 percent, a positive experience has been recorded with a combined subscriber base growing from less than 0.5m to 1.7m in a short period, while the government collected twice, as much revenue as what was collected at 10% excise tax. However Rwandatel CEO Patrick Kariningufu, differed with MTN chiefs. He said the development is a positive one as far as Rwandatel is concerned. "One thing we have to understand is that this is not a bad move. We used to have an 18 percent tax on handsets but this has been slashed. This actually means that many people can now own handsets since they are cheap. It's a win-win situation to me" Kariningufu summed up the development. He said what is more important is that many people can now own handsets and therefore can afford airtime, the 2 percent increment is minimal and can be borne. "What matters now is that people can now have handsets. You are well aware that even MTN doubled its subscriber base in almost one year after introducing low cost handsets in 2007" observed Kariningufu. Rwanda currently has a subscriber base of 1.7m with 2 operators and targets 5m people by 2012. Another operator Tigo is set to join the market. (Source: New Times) Ghana demands permit for telecom mastsGhana’s Ministry of Environment Science and Technology (MEST) has ordered all mobile communication operators to obtain the necessary environmental permits before installing telecommunication masts. Sherry Aryittey, the sector Minister, said each investor was expected to complete an environmental assessment registration form and submit it to the Environmental Protection Agency (EPA), as well as a site plan duly signed by a licensed surveyor, block plan, evidence of neighbourhood consultation and a lease agreement . A statement issued in Accra on Saturday said the directives had become necessary because investigations indicated that most of the installations were done without the necessary permit from the EPA. These had resulted in numerous complaints concerning potential public health risks and the safety of such masts particularly those located in residential areas. The Ministry advised telecommunication companies to avoid locating their masts in areas which are not suitable, particularly densely populated residential areas, to avert possible accidents to life and property. "The Ministry wishes to remind all investors in communication. that under section 29 of the Environment Assessment Registration 1999, LI 1652, all such developments are to be registered and environmental permits obtained before construction commences." It said non compliance with this regulation was an offence, which may evoke the necessary sanctions, which include summary conviction to a fine or imprisonment for a term of not exceeding one year or both. The statement said: "All residents should take note that residential plots are zoned purposely for residences and are not to be leased for the construction of communication masts." The mobile telecommunication companies have been complaining that they were finding it difficult to install masts that would guarantee good quality reception. (Source: PANA) Rural Telephony - Prospective Operators Get Ultimatum On Due Diligence in NigeriaFederal Government weekend gave the five prospective operators for the National Rural Telephony Project (NRTP) two weeks from June 15, to embark on "further due diligence." Authoritative sources told the News Agency of Nigeria (NAN) that the period would enable the operators to ascertain the current state of the network built in 218 locations across the country. There had been speculations that government might review the December 18, 2008 award of the NRTP to the five prospective operators. However, the Permanent Secretary in the Federal Ministry of Information and Communications, Dr Abubakar Mohammed, had at the inaugural meeting of the negotiation between government and the operators on Wednesday, doused that apprehension."I want to assure the winners that government is not saying that we are going to change it (the December 18 financial bid result) because that is not possible. The winners are still the winners but we just want to ensure that certain processes are followed before you are given your letters," he said. Six months after series of follow-up meetings between government and the prospective operators, the project, which was built with a $200m concessionary loan from the Chinese government, has yet to take off. Again, Mohammed explained that: "Government had not concluded the processes but we are all determined to do so because we know what this project means to this country. "The government of course wants to make sure that we agree with you on terms for this project and from the letters we sent to you, we are calling you so that we can schedule how we can carry on with the process," he said. On the due diligence, the permanent secretary gave an assurance that the ministry would cooperate fully with the operators to visit the sites and ascertain the current state of the networks. NAN leant that after the due diligence, formal negotiation with the operators will open from June 29 to July 3. The operators will negotiate on two documents namely: the lease agreement and license from the Nigerian Communications Commission (NCC). Charles Ozodinaobi, the Director of Telecommunications Services of the ministry said negotiations would be "open-ended." He listed regulatory, technical (interconnectivity and upgrade of network) and tariff issues, as some key areas for discussion.In an interview with one of the operators, Mr Nnamdi Ejiogu, the Managing Director of Telefund Ltd., asked government to provide a detailed timetable for the inspection of the networks by the operators.The preferred bidders are: Giicells Wireless Ltd., (Bauchi), Voice Wares Network (Enugu), Key Communications (Ibadan), Hezonic Ltd. (Port Harcourt), and Telefund Ltd. (Abuja and Kaduna).The operators are expected to pay a total of $285.2million (N41.62 billion) to the Federal Government from the bid. (Source: This Day) In brief:- The newly constituted technical board for Nitel and its mobile arm MTel has taken over the affairs of the ailing company under the auspices of the Bureau of Public Enterprises (BPE) as of June 15th. - 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. - According to IT News Africa, Econet Wireless Group (EWG) of South Africa has started moves to block the sale of Kuwaiti-based Zain’s interests in Zain Nigeria until a ruling on a dispute over ownership of the company is passed. - Ghana’s Government is particularity not happy about the proliferation of cell sites, and has thus tasked the regulator - the National Communications Authority (NCA) to enforce co-location. - Gateway Communications, a large supplier of telecommunications services across Africa claimed the prestigious award for “Wireless Network Infrastructure Innovation” in partnership with vendor, Cambridge Broadband Networks Ltd.
EASSy Submarine Project on Target for Completion by June 2010Noel Herrity, the CEO of Zantel said: "The EASSy Project remains on track for completion at the end of June (2010), and the resulting upgrade to telecoms infrastructure in East Africa will bring a welcome boost to the development of our economy and empowerment of the region." The Management Committee of the East African Submarine Cable recently held a meeting in Moroni in the Comoros to review the progress of the construction of EASSy, the undersea cable system that links all Eastern Africa countries to the world-wide undersea fibre-optic networks. The committee noted with satisfaction that the marine survey work that commenced on December 9, 2008 has been fully completed. All the permits at the landing stations have been obtained. Cable manufacture started in February and is well underway with 40% completion. The committee further noted that the terminal stations equipment and repeaters manufacture is going very well. The nine cable landing stations, namely, Port Sudan; Djibouti; Mogadishu; Mombasa; Dar es Salaam; Moroni (in Comoros); Toliary (in Madagascar), Maputo and Mtunzini (in South Africa), are either ready or in final stages of construction. EASSy is a consortium of 27 operators building an open access international fibre-optic submarine cable, comprising Botswana Telecommunications Corporation; Bharti; BT; Comoros Telecom; Etisalat; Neotel South Africa; France Telecom; Mauritius Telecom; MTN International; Saudi Telecom; and Sudan Telecom. Others are: Telecom Malagasy; TTCL Tanzania; Telkom South Africa; Vodacom; Zantel; and WIOCC, a joint venture comprising Botswana Telecommunications Corporation, Dalkom Somalia, Djibouti Telecom, Gilat Satcom Nigeria, Lesotho C.A., Onatel Burundi, Telecomunicaçoes de Mozambique, Telkom Kenya, UCOM Burundi, Uganda Telecom and Zanzibar Telecom. (Source: East African Business Week) Rwanda in Talks With Kenya to Connect to Undersea CableGovernment is currently engaged in talks with Kenya over a possible partnership to connect the country's backbone with the newly launched undersea cable at the Kenyan port of Mombasa. Speaking to The New Times last week, the Minister in Charge of Science and Technology in the Office of the President, Prof. Romain Murenzi, revealed that he had delegated officials from Rwanda Development Board (RDB) to engage in talks with Kenyan authorities to have the cable connected to the Rwandan border. "I have personally visited the landing sites in Dar-el-salaam, Tanzania and in Mombasa, Kenya to assess the possibilities of connecting the fibre optic cable to Rwanda. I am expecting a report from the team anytime soon," Murenzi said. Connection to the undersea cables is one of the country's priorities to become a regional Information Communication Technology (ICT) hub. Rwanda wants to connect to "The East African Marine System" (TEAMS) which docked last week at the Kenyan coastal town of Mombasa. This submarine cable is owned by the Kenyan government. Rwanda recently received a $ 24 million grant from World Bank (WB), under the Regional Communication Infrastructure Program - Rwanda (RCIPRWA), to establish the country's capacity to provide broadband connectivity and access to low-cost international connectivity. The World Bank project is meant to facilitate Rwanda to connect its national backbone to landing sites of any of the three East African coastal submarine cables. Murenzi said the country has already laid groundwork to ensure that the business starts as soon as the cable becomes operational. Rwanda is represented in the EASSy consortium by MTN Rwanda and Rwandatel and Altech will be the national POP for the Seacom cable. (Source: New Times) NIRA sets July 8 deadline for renewal of Nigerian Internet domain namesThe Nigeria Internet Registration Association (NIRA) has announced that all domains registered under the nation's .ng internet name prior to January 1, this year will expire by July 8, 2009 following the recent automation of domain registration flagged off by the group representing the nation's internet community. President, NIRA, Ndukwe Kalu said that with the commencement of automated registration of .ng internet names, it will now be a paid service carried out by 29 registrars that have been appointed by NIRA to ease acquisition. Nigeria's virtual domain in cyberspace had only about 4000 registered domains before the process of automation started. According to Kalu, "all domains registered before January 1, 2009 would expire by July 8, 2009. There would then be a further grace period up to July 31, 2009. By August 1, 2009 any such domains not registered would be suspended and deleted in 7 days thereafter." Following the NIRA announcement to domain name holders, registrars have also followed up with notices to people holding .ng domain names to ensure they are in compliance ahead of the expiration deadline. "Registrations can no longer be done directly and are no longer free but would be at a cost determined by the various registrars. With the wide variety of registrars we believe we are living in interesting times as concerns domain pricing and service", said Ndukwe in an email sent out to technical and administrative contacts for .ng domain names. Ndukwe added that the automatic deletion of domain names will not apply to gov.ng and edu.ng used by government agencies and educational institutions respectively but said that they will remain suspended. NIRA is also reviewing the entire structure and framework on the nation's internet name system that will result in a shift of some levels of registration, auction of some premium names and creation of new domains within the period. "For the gov.ng domains we would be undertaking further reviews within the period. In line with the new policies State Government MDA and local governments have to move to the fourth level of registration under state zones. Only the Federal Government and state executives can be on the gov.ng domain", Ndukwe added. According to him, "new domains have been introduced like sch.ng (registrations is only under state zones as well), mobi.ng, name.ng" while also adding that, "certain domains under the NIRA policy have been designated Premium domains which would be auctioned directly by NIRA to subsidize the low registry fees charged registrars. All owners of such domains would be notified by close of work Tuesday June 9, 2009." Under the plan, he added that "registrants of designated premium domains registered before June 1, 2008 would have the opportunity to pay a First Right Price to retain the domains or forfeit them as they would not be renewed." NIRA said that under its management, the process has now been fully automated and built on a robust infrastructure such that the simplified registration and domain management system can now be registered instantly and visible within one hour. Additionally, NIRA said that the registry now operates a Registry/Registrar model to ensure that domain users receive optimal care and attention adding that, "we have accredited 29 Registrars already and from this month new accreditation would be monthly. We want to ensure that you have a choice from a wide variety of talented and competent Registrars. Therefore all domain transaction would have to be through any of the accredited registrars." According to Kalu, "we are currently redesigning our NIRA website www.nira.org.ng and which would be fully available to the public by June 22, 2009". (Source: Technology Times) In brief:- The Rwanda National Police has put in place mechanisms that will enable Rwandans to process their drivers' licences online. According to Mary Gahonzire, the Commissioner General of Police, preparatory services like scheduling driving exams will be accessed with only a click. - Charity Computer Aid International is turning to Twitter today to source used PCs from UK organisations to help equip education and health projects in Africa. Followers of the charity are being encouraged to use Twitter to publicise the drive for 10,000 PCs to be donated in the next four weeks - with an initial aim of 1,000 PCs in the first four hours of the online campaign. - Shareholders of AccessKenya have taken a major leap in reducing the Annual General Meeting costs. On Wednesday, they voted for use of electronic mails or newspaper adverts to issue AGM notices to cut the huge postage and printing costs.
IBM expands its operations in KenyaIBM is expanding its operations in Kenya from simply sales and marketing offices to a fully fledged operation to capture growth in the East African region. During the press conference to announce the expansion, IBM also unveiled the person who will head the new company’s operations in Kenya in the capacity of a General Manager. Tony Mwai who is slated to head the new nerve centre for Kenya and East Africa is an IBM employee who has been working in the company’s head office in USA for the last 25 years. Speaking to journalists, Mwai said he was happy to be back home. “A lot of Africans have seen that Africa is the next growth continent and are flying back home to help their countries and continent to position itself for growth,” says Mwai. The expansion in Kenya will allow the global technology group to better offer services to its clients, business partners, and government organisations, while supporting the country’s overall development agenda. IBM’s move comes barely a year after CISCO Systems set up shop in Nairobi with its eyes set on the larger East Africa market. The expansion will also mean a change of business model for the global technology company in East Africa. Previously, IBM had maintained a strong presence in Kenyan and East Africa through partners. But now, IBM will combine a direct trading model with the partnership model. “We are looking forward to broadening our partnerships with all stakeholders to create value and growth for Kenya and all of East Africa,” says Mark Harris General Manager, IBM sub-Saharan Africa. “By expanding our operations and deepening our commitment to the local market, we will better serve the needs of our growing customer base,” he adds. (Source: ITNews Africa) Uganda: Citizens Opt for Cloned ComputersUganda Green Computers, an initiative by the Government to enable small and medium size enterprises to buy affordable computers to because of the popularity of cloned computers in the market. The joint venture between the Government of Uganda, United Nations Industrial Development Organisation and Microsoft has yet to deliver to its full potential. Launched in June last year, Uganda Green Computers was meant, first to refurbish and later, start recycling computers. The initiative was born out of the realisation that information and communication technology is a powerful tool in spurring business growth and development around the world. This was, however, lacking in Uganda, where enterprises are the cornerstone of the local economy and the shortage of high-quality, affordable hardware and software has been a barrier to expansion. With a projected annual output of 10,000 computers, the firm churns about 1,000 PCs a month. In a bid to make the computers affordable, each refurbished computer, operating using genuine Microsoft software costs about sh300,000 (US$141). The general manager Simon Nshimye, says "We have a lot of stock that has not gone out yet. The problem is lack of awareness. People opt to buy cheap clones that are dumped in the market." Rachel Asiimwe, the sales and marketing manager, says branded computers such as Compaq, IBM, Dell and HP, are now refurbished and come with an unparralled advantage as compared to the clones. The partnership signed in 2007 between the three stakeholders sought to support business opportunities and entrepreneurship among local enterprises. The aim is to bolster the country's access to affordable PCs and ICT training. However, given the current situation, its objectives may not be realised unless proactive measures are taken. "Our objective is to ensure each home in the country has at least one computer. In light of that, we have gone out to schools, business enterprises and cafes. Parents should disconnect the television set at home and let the children learn how to use the computer. By doing so we will bridge the digital divide," says Nshimye. On average, the firm imports a container of second hand branded 'A' computers (about 2000 PCs). It is these computers that are put through a meticulous checking and refurbishing process, to guarantee quality before being stamped with a Microsoft license and released to the market. And the incredibly low number of complaints, coupled with lots of referrals speaks volumes about the quality of the refurbished computers. According to Bawangaonwala, the technical manager: "Out of about 1,000 pieces sold, we get six complaints and these have not been about hardware problems, but due to people trying to download other software. On the other hand, we have had lots of referrals from customers, directing other prospective clients to us." But outgoing state minister for industry Prof. Ephraim Kamuntu says a number of factors have conspired to ensure a low computer penetration in the country, chief among these being electricity. Currently, he says out of a population of more than thirty million, only one millionUgandans have access to computers, a number which he says is too low to enable the country realise the full benefits of information technology. "Only about 8% of Ugandans have access to electricity and one milllion people have access to computers," Kamuntu says. The figure, he says, rises to 10% when you factor in solar and other forms of energy. He says the poor penetration of computers is compounded by lack of infrastructure and price. However, he hastens to add, that the Government has moved in swiftly with a number of interventions. "There are a number of hydro power stations like Karuma and Ayago that the Government is constructing. These and a number of other interventions should be able to considerably lower the cost of ICT in the country and consequently improve on computer penetration. In addition, he says, a Chinese company, Huaiwei Technologies, has embarked on fibre optic cable in the country that is expected to cut down the cost of running ICTs. The Government's position was strengthened by the signing of a deal with the government of China under which Uganda was to borrow sh230b from the China Export-Import Bank to build the national backbone infrastructure. "The cost of running ICT should be tremendously low, consequently we should have ICTs in the villages," Kamuntu says. (Source: New Vision) Reducing the Cost of ICTs for Kenyan NGOsThere are approximately 4,000 non-profit organisations operating in Kenya today. These organisations make a significant contribution in response to the development and service delivery challenges facing the country. The strengthening of NGOs’ capacity for service delivery increasingly requires that attention be given to their ability to manage, implement and integrate information communication technologies (ICTs) into their work. However, the issue of affordability remains one of the biggest barriers to increased investment by NGOs in their technology infrastructure and capacity. In an environment where the challenge of long-term financial sustainability continues to dominate internal NGO decision-making, the cost associated with technology investment impacts on the importance attached to building NGOs’ technology infrastructure and strengthening their work accordingly. In response to this situation, the Southern African NGO Network (SANGONeT), in conjunction with the Arid Lands Information Network (ALIN) in Kenya, is very pleased to announce the launch of TechSoup Kenya (www.techsoupkenya.or.ke), an online technology donation portal aimed at the Kenya NGO sector. TechSoup Kenya aims to assist NGOs by providing software and hardware for very low or discounted fees in conjunction with ICT donor partners, as well as by supporting NGOs to maximise their ICT purchases and infrastructure. It will present Kenya NGOs with an opportunity to access software and other ICT solutions at discounts of up to 95% of the retail value. According to David Barnard, SANGONeT’s Executive Director, “The introduction of this programme in South Africa and Botswana has already made an important contribution to the local NGO sector, and we are very excited about its potential impact in Kenya.” TechSoup Kenya is a partnership between SANGONeT and TechSoup Global (www.techsoupglobal.org), a San Francisco-based non-profit technology capacity building organisation. TechSoup Global started in 2002 in the United States and currently operates its product donation programmes in 23 countries across the world with a network of local partner NGOs. With 35 donor partners currently, TechSoup Global has provided approximately 4.7 million donated technology products since programme inception to NGOs around the world. The retail price of these donations is roughly equivalent to $1.4 billion. “We’ve grown the TechSoup Global Network by partnering with organisations that share our commitment to providing NGOs with critical technology resources,” said Rebecca Masisak, Co-CEO of TechSoup Global. “Both ALIN and SANGONeT have a track record of outstanding service to the NGO community. Their collaboration to bring technology donations and education to Kenya is a shining example of the power of our network.” ALIN will be responsible for the implementation of TechSoup Kenya. According to James Nguo, ALIN’s Regional Director, “With a wide network among grassroots NGOs and focus on ICT4D, we hope to avail affordable technology to the people who deserve them most”. The first TechSoup Kenya donation partner is Microsoft. Most of the Microsoft range of software will be available to Kenya NGOs at approximately 4% of the retail value. The products include operating system software, productivity software such as Microsoft Office, publishing software and server products. In Brief:- Zimbabwe’s Ministry of Information Communication and Technology has finalised the Information Communication and Technology draft Bill as it moves to meet some of its targets in the 100-day plan. - One Laptop Per Child Global Center has open in Rwanda. The centre which will be based in KIST, will support the ongoing OLPC implementation and create an African laptop network. - Arua local government in Uganda plans to use the newly-introduced electronic banking system to fight corruption, reports Frank Mugabi. The chief administrative officer, Samuel Okot, in whose office the system has already been installed, said it would enable the district to monitor all withdrawals of public funds. "We will watch how our accounts are operating. Where anomalies are detected, we will move in fast to stop the transaction," Okot said. - The Government of Ghana is to set up Ghana National Computer Emergency Response Team (GNCERT) to clampdown the current high incident of cyber crimes in the country. Furthermore, the GNCERT is a national initiative to tackle emerging challenges in the area of information security and country level security risks and vulnerabilities.
Nigeria’s First Bank and Others Finance US$240 Million for MainOne Fibre CableFirst Bank of Nigeria Plc in collaboration with Skye Bank and African Finance Corporation (AFC), have signed a US$240 million financing deal with MainOne Cable Company, a private sector-led initiative with Main Street Technologies as sponsor. The deal is for the construction of a sub-sea cable to deliver a 1.92 therapy per second capacity bandwidth that will provide international and internet connectivity to countries between Portugal and South Africa on the West coast of Africa. A statement from FisrtBank said the cable which is being built by world renowned telecoms giant, Tyco Telecommunications, will enable more Africans to have access to the Internet. It said the signing ceremony which took place in Lagos last Thursday, commences the installation of undersea fiber optic cable from Portugal to Nigeria to meet the needs of multiple load/lay or fast track programs like the Internet. Tyco Telecommunications' role is to put the appropriate vessel with the necessary tools in the right place at the right time for the installation. The Chairman of MainOne, Fola Adeola, said the project, on completion in June 2010 will increase the country's and indeed Africa's access to the Internet which in itself will spur growth in technological development and increased human capacity. Managing Director of FBN Capital and representative of the FirstBank Group, Mr. Bayo Adeleke, commended the audacity and vision behind the project, describing it as a compelling innovation and a major infrastructure project that will transform lives. He said FirstBank is involved in the project because of its long commitment to the nation's development. The MainOne cable system will have a design capacity of 1.92 Tbps, representing approximately 10 times the current capacity available on the West Coast. With MainOne therefore, international bandwidth prices will reduce, in addition to bandwidth intensive services such as IPTV, HDTV etc being easily provided within the region. (Source: Daily Trust) Mauritius Telecom profit down 5%, listing still onMauritius Telecom said 2008 post-tax profit fall 5 percent to 1.9 billion rupees ($59 million) on increased interest payments. Mauritius Telecom, which dominates the fixed line and mobile markets and is a leading internet service provider on the Indian Ocean island, is due to list on the nation's stock exchange. "The fall in profits is due to payment of interest on loans", chief executive Sarat Lallah told reporters on Thursday. Mauritius Telecom said turnover rose 6.5 percent to 6.8 billion rupees in 2008. "With a growth of 12 per cent, the mobile market has contributed significantly to the performance of the group," Lallah said. In May, the government imposed new taxes on phone firms of 5 percent of profit and 1.5 percent of sales as the Treasury battles to keep its budget deficit in check. The company's proposed listing last year was postponed with markets tumbling as the financial crisis rocked economies around the world. Declining to fix a date, company chairman Thomas Appalsamy said the listing was still on. "The company has completed its due diligence exercise and now shareholders are working on the price and the number of shares that will be floated on the Stock Exchange," he said. Mauritius, a remote island with a population of 1.3 million, has around 970,000 mobile subscriptions, of which more than 577,000 are with Mauritius Telecom. In 2000, the company sold a 40 percent stake to Orange, owned by France Telecom (FTE.PA). The government and the State Bank of Mauritius own 59 percent, while 1 percent is owned by present and former employees. (Source: Reuters) Sierratel secures USD29 million expansion loan from IndiaThe Sierra Leone Parliament ratified a loan agreement of $29,452,856 for the modernization and expansion of the network and telecommunications infrastructure of Sierratel. The loan agreement was provided by the India Government through the ECOWAS Bank for investment and Development for the partial financing of the project for the modernization and expansion of the network and telecommunications infrastructure of Sierratel. This is probably the first time the Indian Governement has made finance of this sort available directly to a telco in Africa and it follows the Chinese practice which is much more widely knowm. Presenting the Government motion before Parliament, the Deputy Minister of Finance and Economic Development, Momodu Kargbo said the objective of the project involved the replacement of obsolete transmission networks made of copper to a fiber optic and to provide the capacity of Sierratel to commence high speed internet. The objective is to also construct high capacity fibre network between Freetown and other areas and to computerize all aspect of the companies operation to include sound delivery and enhance revenue collection and minimize revenue leakage. The loan will also aid staff in the operation and maintainace of the network and to expand capable distribution network in Freetown and Lungi and build new network in Portloko, Makeni, Koidu and Moyamba. The agreement was signed on the 7th May, 2009 and the maturity period of the loan is for 23years with a grace period of 8years with an interest rate of 2.7% per annum. The deputy Minister revealed that the critical aspect of the project was the fiber optic that will be introduced in to the country to match up with the CDMA facility just introduced by Sierratel. (Source: Awoko Newspaper) URA orders permits firm to pay sh5bFace Technologies, the company which issues driving permits in Uganda, has not paid taxes in the past five years, the tax body has said. The Uganda Revenue Authority has consequently demanded over sh5b from the company in tax arrears, interest and penalties. Face Technologies, a South African company, was contracted in 2003 by the Ministry of Works to design, print and supply computerised driving permits. “In execution of the contract, Face Technologies earns income from Uganda and also employs staff. Consequently, income tax, PAYE and VAT liabilities arise,” URA said in a statement. An investigation, URA added, found that Face technologies did not pay any taxes in VAT, income tax and PAYE from August 2005 to September 2008. “As a result, URA under the law assessed and commenced enforcement actions to recover taxes owed by Face Technologies.” The tax body added that the decision of the company to close their office in Mbale district was made in their individual capacity. According to URA, Face Technologies has been deducting PAYE from its staff without remitting it. URA then moved to recover the money from the company’s account in Stanbic Bank but it found only about sh100m which did not cover the total arrears. Sources in URA said the contract for Face Technologies did not provide for any tax exemption. But a manager of Face Technologies, who spoke on condition of anonymity, said URA has been charging VAT on all driving permit applicants. The manager added that under the Build, Operate and Transfer (BOT) arrangement with the Government, they had been charging applicants only to recover their initial investment before handing over the project to the Government. Face Technologies, he said, has tried to talk to URA to reconcile their accounts but to no avail. They, therefore, decided to close all their up-country stations and might close the main branch if the matter remains unresolved. The company has offices in Jinja, Mbale, Kampala, Mbarara, Gulu and Fort Portal. They employ about 100 people. On the issue of PAYE, Face Technologies says they remit all salaries to Unisis, their employment agency, which is responsible for the deduction and remittance of PAYE. None of the employees, the source added, has a contract with Face Technologies, adding that they were recruited and employed by Unisis on behalf of Face Technologies. Grace Itazi, the director of transport at the works ministry, said the company’s contract is being renewed every two years until it recovers its initial investment. (Source: New Vision) In brief:- Mozambique’s Minister of Transport and Communications, Paulo Zucula, has revealed plans to partly privatise incumbent mobile operator, mCel. According to the plan at least 5% of company shares will be made exclusively available to Mozambicans, with the possibility of further sales to the international investment community. - The newly reconstituted technical board of the Nigeria Telecommunications Ltd (NITEL) has directed that an audit of the assets of the company be undertaken and a status report submitted to verify allegations of asset stripping levelled against the immediate past owner/management of Transnational Corporation of Nigeria (Transcorp) Plc. - South Africa's mobile phone operator MTN said on Wednesday that the strong depreciation of Nigeria's naira against the dollar had increased the cost of doing business at its Nigerian unit. MTN took out a loan worth $2 billion from a consortium of banks early last year to expand its mobile network in Nigeria, with 80 percent of the funds paid out in naira. The naira shed more than 20 percent of its value against the U.S. dollar at the start of the year largely because of declining world oil prices, the main source of foreign earnings in Africa's top oil producer. - Egyptian newspaper Al Borsa reports that Telecom Egypt is studying the possibility of bidding for a stake in Moroccan mobile operator Medi Telecom (Meditel) recently put up for sale by Portugal Telecom, as well as a stake in the company which Spain’s Telefonica is considering selling. The two stakes together represent over 64% of equity in the GSM operator, which also offers corporate fixed line services. - The government of Rwanda is planning to sell its 10% stake in mobile operator MTN Rwanda on the country’s bourse during the next financial year, according to Rwandan daily The New Times. The cost of buying a mobile phone in Kenya has dropped sharply after the government waived the import duty on mobile phones. Kenya's Finance Minister Uhuru Kenyatta cut the 16% VAT on new phone handsets in the government's budget statement. In parallel, ZAIN Managing Director Rene Meza has lauded the Finance Minister Mr. Uhuru Kenyatta ’s move to lower the cost of owning infrastructure by increasing the wear and tear allowance on telecommunication equipment from 12.5% to 20%, terming it as an incentive that will encourage investments as investors will able to depreciate their assets at a higher rate. Telecoms, Rates, Offers and Coverage (briefs)- Zimbabwe’s Zellco Cellular service has introduced "Billtrek", a facility that will enable customers to control their mobile phone bills. The function allows the customer to define maximum planned expenditure limit for their mobile numbers. - MTN Nigeria has secured a new numbering range with the prefix 0813. This will be available in the market next Monday, a statement from the company said. - Incumbent telco Malawi Telecoms Limited (MTL) has invested USD50 million in the upgrade of its network aimed at improving service delivery, writes Malawian online news website Nation Online, citing MTL CEO Peter Zimmer. The chief said that the new infrastructure will have a high bandwidth capacity to enhance the transfer of data and other communications needs at a much higher speed. - Helios Towers Nigeria and CDMA operator Multilink have increased the tempo of co-location services in Nigeria with the attainment of 400 HTN co-location sites milestone last week. Multilink had embarked on massive expansion of mobile telephone services to previously underserved areas. - Nigerian operator GiCell Wireless plans to invest over USD700 million in the next three years to deploy a low cost rural telephony network across the country, according to Nigerian online news source BusinessDay. The operator’s CEO, Usman Gumi, said a CDMA network covering five states is already being rolled out: ‘We intend to cover the country within three years but we are taking off from these five states to meet the World Bank requirement having been selected as the first Universal Access Service provider in Nigeria to provide telecoms to unserved and underserved areas.’ - Egypt Yellow Pages has reported that its recently released Yellow Pages iPhone application is now the Top Free Application download in the Apple Egypt AppStore.
Mobile Phone Towers to Monitor African WeatherA new partnership has been announced that will place weather monitoring stations on up to 5,000 mobile phone towers operated by Zain, and other mobile networks, across the African continent. The initiative is being backed by the Global Humanitarian Forum, Ericsson, the World Meteorological Organization (WMO) and the Earth Institute at Columbia University. Africa has a network eight times below the WMO minimum recommended standard, and less than 200 weather stations that meet WMO observation requirements, compared to several thousand each in Europe, North America, and parts of Asia. The 5,000 weather stations will be installed at new and existing mobile network sites throughout the continent over coming years. Although Zain is the lead mobile network operator, achieving the 5,000 target would require additional operator commitment and external financing. The launch was held at the Global Platform for Disaster Risk Reduction, where former UN Secretary General, Kofi Annan said: "The world's poorest are also the world's most vulnerable when it comes to the impact of climate change, and the least equipped to deal with its consequences. Today you find cell phone towers in almost every part of Africa. We have never been able to establish weather monitoring on that scale, until now. By bringing together the expertise and resources of different public and private actors, this project may help to save lives and improve the livelihoods of communities in Africa living on the frontlines of climate change." Mobile networks provide the necessary connectivity, power and security to sustain the weather equipment. Through its Mobile Innovation Center in Africa, Ericsson will also develop mobile applications to help communicate weather information developed by national meteorological and hydrological services (NMHSs) via mobile phones. Mobile operators will maintain the automatic weather stations and assist in the transmission of the data to national met services. The initial deployment, already begun in Zain networks, focuses on the area around Lake Victoria in Kenya, Tanzania and Uganda. The first 19 stations installed will double the weather monitoring capacity of the Lake region. Approximately 70 percent of Africans rely on farming for their livelihood, or close to 700 million people, and over 95 percent of Africa's agriculture depends on rainfall. Changing weather patterns due to climate change render obsolete traditional knowledge relating to agriculture otherwise reliable for centuries, creating a great need for meteorological information. Also present at the Geneva launch was Michel Jarraud, Secretary-General of the WMO, the United Nations System's authoritative voice on Weather, Climate and Water, which is coordinating involvement of NMHSs participating in the initiative. Jarraud said "For food production, almost every decision is linked to weather, climate and water parameters. We see the Weather Info for All initiative as a major pan-African effort to empower our 188 Members to provide enhanced weather information and services. Working through NMHSs, WMO will identify weather information needs, advise on technical requirements and help disseminate the information. This initiative may prove to be one of the most important for African meteorology in decades. The project will also therefore support the goals of the WMO-organized World Climate Conference-3, to be held from 31 August to 4 September 2009 in Geneva." The initiative will have an impact far beyond agriculture and disaster preparation as it also includes assistance to national meteorological services in training and technical capacities. Better weather information will also make possible the development of services, such as microinsurance, which can be based on weather data indexes, such as rainfall. The initiative will also increase the volume of information useful for scientists, as well as for the water, transport and energy industries. While the weather information gap is particularly acute in Africa, the initiative would be open to later expansion into other affected regions. (Source: Cellular News) Facebook Swahili version launchedThe social-networking website Facebook has launched in Swahili, targeting more than 110m speakers of the language. A group of Swahili scholars launched the new version with the permission of the California-based Internet firm. Facebook use has spread over the past five years in East and Central Africa, where most Swahili-speakers live. Analysts say a Hausa version could be launched next in West Africa and Zulu for southern Africa. Facebook already exists in Afrikaans. Symon Wanda, one of the project's initiators, said they wanted to launch a Swahili version to safeguard the future of the language. "The youth, the future generation, if you look at the biggest percentage of users on Facebook, they are the youth," he told the BBC's Network Africa programme. "They can easily navigate through when it's maybe a language they understand, which makes it easier to use the Swahili than to use the English." The BBC's Ruth Nesoba, in Nairobi, says the Swahili site has already been on trial for some time and word has spread quickly. Facebook's Simon Wanda says they have been monitoring the take-up and says more than 60% of Facebook users in East Africa are already using the Swahili version. The bulk of Swahili-speakers live in Kenya, Tanzania, Uganda, eastern Democratic Republic of Congo, parts of the Horn of Africa, Malawi, Mozambique and the Indian Ocean islands. Facebook already exists in some 50 language versions. (Source: BBC)
People- Themba Khumalo has been appointed as CEO of MTN Uganda. He previously was CEO at MTN Rwanda. Khaled Mikkawi will replace him at the head of MTN’s operations in Rwanda. - The finance director of landline monopoly Telecom Egypt has resigned to pursue other career opportunities. Tarek Tantawy, also the firm's vice president, will leave on August 13, Telecom Egypt said in a statement on Thursday. Events:* BARCAMP SWAZILAND 27th June, Malkerns, Swaziland BarCamp Swaziland will bring together technology practitioners in the Kingdom of Swaziland to share and learn in an open environment. BarCamps are participatory workshops whose content is provided by participants. The first BarCamp was held in Palo Alto, California, in 2005. Since then, BarCamps have been held in over 350 cities around the world. Building on the momentum of recent BarCamps on the continent of Africa, BarCamp Swaziland will extend the reach of the BarCamp model to engage dialogue on local technology issues." For further information visit http://www.barcampswaziland.eventbrite.com * 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: http://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 OpportunitiesERICSSON 3G OPTIMISATION ENGINEERS - WEST AFRICA The ideal candidate will have strong 3G Optimisation experience ideally with previous experience of working for Ericsson on a live 3G Network. Additional good knowledge of 2G Optimisaiton and experience of Ericsson optimisaiton tools will be a plus. For further information click on the following link http://www.cellular-news.com/recruitment/list_job.php?uid=7803 Contracts* Togo Telecom and ECI - Togo ECI Telecom, a provider of networking infrastructure solutions optimized for next-generation network (NGN) migration announced that Togo Telecom, the incumbent fixed line operator in Togo, Africa, has selected ECI to deliver an end-to-end turnkey solution for a new high-speed IP network in the country. This turnkey project will deliver one of the first fiber-to-the-curb (FTTC) networks in the region, providing residential and business customers with high-speed Internet access and VoIP services. * MTN and VistaInsight - Cameroon Mobile operator MTN Cameroon has chosen to deploy InfoVista’s VistaInsight for Networks and Mobile Knowledge Pack solutions for the end-to-end management of its mobile data services to optimise the performance of its next generation network (NGN). * KDN and Alcatel-Lucent - Kenya Alcatel-Lucent has signed a contract with Kenya Data Networks to upgrade the data carrier’s IP/MPLS network in twelve cities over the next three years. The KES1.6 billion (USD21.4 million) deal includes Alca-Lu’s gigabit passive optical networking (GPON) solution as well as additional IP/MPLS service routers, upgrading networks based on the Alca-Lu triple-play service delivery architecture (TPSDA). The upgrades will give customers higher speeds, quality, and stability for triple-play services, along with guaranteed quality of service for business critical applications and future mobile services. The upgrade deal places KDN at the forefront of the fledgling regional data transport industry in Kenya. * Benin Telecom and Intec - Benin Intec, a provider of business and operations support systems has been selected by Benin Telecoms, Benin’s incumbent telecommunications operator to deploy Intec’s market-leading InterconnecT billing and Total Service Mediation settlement solutions. Intec’s InterconnecT solution will enable Benin Telecoms to maximise revenues through intercarrier billing, previously unachievable due to its legacy, proprietary systems; reduced disputes and shortened resolution times will further facilitate improved cash flow.
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