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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 467 14th August 2009 Zain vs Vodacom row in Zambia hits a raw nerve over Africa’s 3G anxietiesVodacom Zambia has taken out an injunction against the country’s regulator CAZ over a trial 3G authorisation it gave two years ago to Zain. All this might be a storm in a tea cup were it not for changing attitudes to 3G and what it might be used for in Africa. Russell Southwood looks at why 3G matters to operators and why some countries will upgrade, whilst others may be left behind. Two years ago the Communication Authority of Zambia (CAZ) issued a test authorisation to Zain Zambia to conduct trial 3G services. On hearing of this recently, Vodacom Zambia chairperson Enoch Kavindele issued an injunction against the regulator to try and stop Zain making use of the already issued test authorisation. Kavindele, a former Republican Vice President in the country is clearly a man of many opinions and enough lawyers standing by to try and enforce them. He is also threatening to sue the Government over the sale of a 75% shareholding in the financially distressed incumbent Zamtel (see On the Money below). Both legal actions look like a bad case of bluster and if so, why is Vodcom Zambia so wary of either of these things coming to pass? The sale of Zamtel would see Vodacom, MTN and Zain getting more competition from Zamtel’s new owner, something it has clearly failed to give in Government hands. The granting of a 3G authorisation of no commercial value must surely be something that Vodacom could avail itself of rather than rushing off to the courts. Like fixed broadband Internet, 3G (in either WCDMA or HSPA flavours) in Africa went from being something operators would say was “not wanted in my village” to becoming part of an upgrade arms race in a very short period of time. Once one operator started to install 3G, others felt they had to follow. Once one operator had got it in place at the airport and in the business district of the capital, others felt they had to follow. And before long, it began to be rolled out to a wider range of cities in some countries. When 3G started in Europe, licences were sold for humungously large sums of money. Later some of this licence money was refunded when everyone realised that 3G services were not going to generate the kind of revenues required to pay back this kind of down-payment. There are few precedent for valuing 3G licences in Africa. At one end of the continent, several of the North African countries have taken an almost European view and sought to extract the maximum operators will pay. At the other end of the scale, one large West African operator has been trying to persuade its regulator that 3G is simply a natural network transition and should not be licensed separately. So where does the value of 3G lie for the operator? For the latest generation of operators – like QCel in Gambia which launched last week – it offers a way of differentiating themselves from the GSM pack and allowing them to extend their Internet role to offering mobile Internet. But mobile Internet is a comparatively modest part of any operator’s overall revenues. Indeed Vodacom has few countries where data revenues (including SMS) exceed 10% of overall revenues. Nevertheless it has a key role to play in stemming falling ARPUs which will expand as the number of mobile Internet subscribers increases. It has also pitched mobile operators into becoming ISPs and where they have got the pricing right, they have seized the major market share. 3G also creates network efficiencies which are not much talked about but may be another good reason why 3G coverage is spreading. But the competing demands of voice and data on the mobile operator’s network do not make for good bedfellows. It only takes a few heavy Internet users to start eating into the bandwidth available for voice and mobile Internet users (particularly of the post-paid variety) are picky creatures who like to have the service they paid for. So having just got 3G, a number of mobile operators started installing a workaround to this congestion problem, using various varieties of WiMAX which again required more spectrum and more base stations. The thin-pipe creation that is GSM was not designed to be the multi-lane highway for voice and data. That said, it is the mobile operators who are steadily extending their data coverage (through 3G and GPRS/EDGE) and are actually putting in place the network coverage that will be able to offer Internet to a growing percentage of people in African countries. It is not the traditional Government-owned incumbents who talk a good game on universal service but are usually so financially embarrassed that they are unable to match commitments by mouth with their cheque-writing hand. Sadly, it’s also not Africa’s ISPs who have almost without exception stayed put in the capital cities or urban areas. Arguably, mobile operators are the ones who are making this investment. Zain Zambia (see later in this newsletter) are investing in their own fibre network because it will be cheaper than Zamtel’s over-priced national network. But it’s clear that 3G is not something that so far is likely to happen in every African country. If you have a particularly small middle class and/or literacy levels are very low, then there is not much of a case for rolling out 3G. The new smart phone users will be there in lower numbers and will not justify the costs involved. So as in so many fields, Africa is becoming a continent of two speeds: those in the fast lane with 3G (and WiMAX) connected to international fibre and a small number of countries in the slow lane with GPRS/EDGE and no early sign of an international fibre connection. Therefore regulators and operators need to ponder the difficult question of what is a 3G licence actually worth? Those in the slow lane where market potential is low might up their chances of joining a faster lane by almost giving 3G licences away. Whilst those countries who are better favoured will be able to get revenues from one more licence category. However, in the long term, since a new operator would be unlikely to build just a GSM network any more, there is perhaps a grain of (inconvenient) truth in the argument that 3G is simply the natural upgrade transition. 
Moov Togo’s operations suspended over non-payment of licence renewal feeTogo’s second mobile telephone operator Atlantic Telecom-Togo (owned by Etisalat) which runs the Moov brand has been from 10 August because it has not paid its licence fees. Although it has not been stated publicly, Moov would like to have an international gateway as part of its licence renewal rather than continue to deal with the incumbent Togo Telecom. Togo is one of a shrinking number of African countries with a monopoly international gateway. The Togolese Posts, Telecommunications and ICT Ministry announced in a release that Atlantic Telecom-Togo has been operating without a legal license since 2008. According to the same source, the mobile telephone operator did not fulfill provisions of a decree on the financial conditions of licenses’ renewal. “Discussions undertaken in June 2008 led to negotiations and the signing by the Telecommunications ministry on 22 May 2009 of two decrees determining the financial conditions of licenses’ renewal,” the same source underlined. To date, the very first operator mobile Togo Telecom and its subsidiary Togo Cellulaire started fulfilling the provisions of these decrees. The Ministry’s disagreements with Moov go back to the date when it changed its name from “Télécel” to “Moov”. The Ministry maintains it should have been informed and approved this name change. However, the two parties had thereafter concluded an agreement on the issue. The suspicion must be that the Ministry is either trying to extract additional licence revenue from Moov and/or that it is trying to protect the Government-owned incumbent’s mobile subsidiary Togo Cellulaire, which has seen a large part of its subscriber base desert to Moov. (Source: African Press Agency) Nigeria: Winners of 2.3 GHz licences to be refunded but Mobitel still on for roll-outFollowing Presidency's decision that monies paid into the coffers of the Federal Government by the Nigeria’s regulator NCC on behalf of the winners of the 2.3GHz spectrum licence be refunded to the bid winners, Mobitel, which was at the hear of allegations about not following proper procedures, re-asserted its desire to roll out a GSM network. The Federal Government had on Tuesday ordered the NCC to refund the three companies involved in 2.3Hz spectrum licences. The companies are Mobitel, Spectranet and Multi-Links. But the management of Mobitel last week reaffirmed its long term positive view of its business objectives in the market place, notwithstanding the presidency's order. "We remain unrelentingly committed to our roll-out programme," Adeyemi Akinsanya, Chairman of Mobitel said. According to Akinsanya, Mobitel is indeed perfectly able to roll-out its bouquet of service offerings later this year, on its 2.2GHz licence, and poised to ultimately offer its subscribers nationwide a refreshing experience. Government has also ordered that a fresh round of bids for the 2.3GHz spectrum licence be conducted by the NCC. (Source: Daily Trust) CCK Proposes Fund to support infrastructure in underserved areasIt has taken five years but the CCK Universal Service Fund is finally lumbering into view. It remains sensitive about the speed with which it has moved: one of its staff members at the recent CCK Anniversary Event sought to say that it was not really slow moving on the issue. The Universal Service Fund will be raised by a levy on all broadcasters and telecoms operators 0.5 per cent of their gross annual revenue. The operators have been given up to the end of September 2009 to contribute their views on the setting up of the fund the fund. Operators and broadcasters might reasonably suggest that in the three years that the setting up of the Universal Fund has been on CCK’s agenda that they have done more to create universal access than CCK. To mitigate the impact of the levy on start-up businesses in the sector, CCK has put an annual gross turnover of Sh10 million as the threshold. The money will also probably be used to subsidise the less well-off when broadcasters make the transition from analogue to digital. The migration will require either the end user to invest on new television sets that are technologically compatible with the latest technology, which will be costly, or invest in the top boxes that are able to convert the analogue system into digital. The set-top boxes currently retail at between Sh4,000 and Sh5,000. The country is expected to migrate into the new technology by 2012, and conform to the ITU deadline that require all countries to do so by 2015. CCK also intends to use the money to subsidise the cost of network expansion in under-served areas, offer direct subsidies to needy people to defray the high costs of telecommunication, set up 133 telecentres and electronic cyber labs. (Source: Business Daily) Two New Telecom Operators to Launch in NigeriaTwo new telecom brands, Expresso and O-Mobile, are preparing to launch into the Nigerian market. Business Day reports that Sudatel, the state telecommunications company of Sudan, will operate as Expresso. The company recently bought a 70% stake in Intercellular for US$50 million (then valued at N6.2 billion). Sudatel granted a $10 million loan to Intercellular about a year ago and paid $10 million to the company's shareholders for its 70% stake. It is also reported that Sudatel will inject $500 million into Intercellular within the next five years. Prestel Satellite Communications, which previously had a presence in Edo State, has announced that it will operate as O-Mobile. The two new operators both have Unified Access Licences that allows them to operate across fixed and mobile platforms. Both will also make use of Code Division Multiple Access (CDMA) technology. (Source: TradeInvest Africa) In brief:- All political parties have agreed the issue of South Africa's high interconnection rates will be examined by Parliament's Communications Committee in September. Leader of the Independent Democrats Patricia de Lille proposed the Parliamentary Portfolio Committee on Communications, the legislative's oversight body for the ICT sector, should investigate the issue as it is hampering the use of mobile phones, especially for the poor. - Zimbabwe’s troubled incumbent TelOne is limiting calls to the Econet platform as it emerged last week that the parastatal owed the mobile operator in excess of US$17 million in interconnect charges. For the past month Tel One subscribers have been unable to make calls to the Econet platform while managing to get through to both NetOne and Telecel subscribers. - Zain Kenya announced an increase in investment in data business. According to a statement, managing director Rene Meza said the move was aimed at growing data usage especially among prepaid customers. - The government of Rwanda will sell off its 10 per cent stake in Rwanda MTN - a deal that could be the biggest by the Government this year. "We are looking for a adviser to help us facilitate the transaction. The adviser will be outsourced in an open tender," Finance Minister, Musoni said. - Tanzanian incumbent TTCL has announced it will buy new equipment in a bid to improve its services. According to the company's new chief executive officer, Said Amir Said, the company would seek loans from two Chinese banks and a local bank to finance its operations. - Officials of Gabon Telecom and its mobile unit Libertis have announced that all fixed line, mobile and Internet connections have now been restored following the suspension of strike action by the communications trade union Synatel. However, union leaders stressed that the strike could resume following the conclusion of negotiations with management due to end on 30 August. Synatel said that an agreement on wage levels had been reached, but the core objections of the union to the recent takeover of Gabon Telecom by Morocco's Maroc Telecom had not changed. - The post-paid clients of Rwandan mobile operator Rwandatel will be able to access roaming services with over 500 telecoms operators worldwide, writes local daily The New Times citing the cellco’s officials. The announcement follows an agreement between Rwandatel and Belgian telecoms company Belgacom International Carrier Services (Belgacom ICS), under which Rwandatel’s post-paid subscribers will be able to access voice and SMS services on any roaming network affiliated to Belgacom.
NCC CEO Ndukwe Advocates "Fibre Without Borders" for AfricaTelecom engineer and current Chief Executive Officer of the Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe, has advocated the concept of "Fibre Without Borders (FWB) as panacea for achieving possible African telecom revolution in terms of seamless telecommunications connectivity, quick, and affordable broadband access to the citizenry. Engr. Ndukwe who put forward this idea during a special press conference at the National Telecom Development series in Lagos last weekend said the idea of an optics fibre networks criss-crossing the African continent without constraints of geography and politics, is the type of initiative that would benefit the continent, immeasurably. "In talking about removing barriers created by geography and politics, I will also advocate encouraging cross border optic fibre links as platform for the next move in Africa and encourage what I call "Fibre without Borders," he said. The conference was presided over by the former President of Sierra Leone, Ahmad Tejan Kabbah who also said that telecommunications has been a natural unifier and a platform on which countries and providers of equipment and services must collaborate for purposes of complementarities across borders and even within borders among operating parties. Engr. Ndukwe said he always had this dream of having an African continent that has optic fibre highways crisscrossing all over the continent and even extend beyond the telecom area to power generation and other areas in order to enable Africa come together and help each other. He also called for a change of focus for the African Telecommunications Union (ATU) which he said is currently not doing much to achieve the objectives of African connectivity. According to him, Africa has achieved a lot in the area as the continent is no longer a laggard as far as ICT is concerned as many nations have liberalized and African companies becoming global operators. He said that Africa is actually giving back something to the world including the concept of 'One Network' where a subscriber can visit another country without roaming but maintaining service on the same network. (Source: Daily Trust) Rwanda: Kigali to Get Interim Fibre ConnectionsKigali City will this week get temporary connections to the fibre-optic backbone through a microwave link from Kampala, according to The Business Times. Peter Matayo, Head of Infrastructure at Kenya Data Networks, a sister company to Altech Stream Rwanda said that the interim connections from Uganda to Kigali are expected within the course of this week. "This will see the current VSAT connections phased out gradually as we wait for the permanent fibre-optical connectivity later this year," he said. Matayo explained that the interim connections have a better performance speed than VSAT access. "There will no longer be a need to go through satellite to communicate across the border as has been the case. This will mean a considerable reduction in internet consumer prices compared to VSAT costs," he added. "Connection costs may drop by about 80 percent, depending on the capacity," Matayo said. According to the Regional Business Development Manager for Altech Stream East Africa, Nick Odero, Altech plans about $2 million (Rwf1.1 billion) investment in the microwave connection "This will remain as a backup to the fibre, which is expected to touch Kigali within three months with an investment of up to $10 million (Rwf5.7 billion)," he explained. Altech Stream East Africa, made up of telecoms operators Kenya Data Network of Kenya, Infocom of Uganda and Altech Stream Rwanda, has completed the installation of the 1,500km fibre backbone from Mombasa to Kampala, Nairobi. The companies are part of a South African investment holding company involved in the telecommunications, multi-media and information technology. Presently, only three East African Community (EAC) are connected; Tanzania, Kenya and Uganda. In a related development, Rwandatel's Chief Executive Officer, Patrick Kariningufu said that the company may be connected by fibre in the next three weeks. "We will be connected through our sister company (Uganda Telecom) as we also consider other options," Kariningufu said. "We are thinking of connections from Tanzania and Uganda covering the whole country with investments worth $20 million (Rwf11.4 billion)," he added. (Source: The New Times) AccessKenya to offer 24 per cent discount on Internet chargesAccessKenya became the latest internet service provider to promise to lower charges following the arrival of international fibre optic cables. The ISP said it was planning to implement an immediate 24 per cent discount on its internet charges and promised higher discounts once connections to international fibre optic links went live by the end of next month. “People have to realise the real differential discount we can give as an ISP provider. All of our 5,000 corporate and residential clients will be on the fibre by the end of September,” said Chris Senanu, managing director of the Internet division at Access Kenya. However, the company warned that it was not in a position to promise significant price cuts as it still had relatively high operational costs to maintain. Although, the operational costs are still high especially with energy costs, Senanu promised clients up to 50 per cent in discounts. The company has already starting offering select clients double the capacity at the same price to begin a weaning process that will see more customers buy more Internet capacity. AccessKenya has purchased a total of 2,500mb of capacity on the Seacom fibre optic cable together with a similar capacity on the TEAMs cable.This gives the company a total of 5,000mb of capacity, a figure that is four times what the entire country already uses. Recently, the company upgraded its network ten times in order to handle the arrival of the Seacom and Teams cables— investing 1000mb to 10000mb at a cost of Sh60 million. Kenya currently uses just 1,200mb of satellite capacity. Access Kenya has also invested in an inland fibre optic network that it will leverage to supply the cheaper connectivity promised by international links. The company’s cable is expected to serve 250 buildings and by the end of the September and already has 173 connected customers. Seventy more will be using the fibre optic by the end of August. (Source: Business Daily) In brief:- Neotel in partnership with Infraco is expanding connectivity into the Southern African Development Community (SADC) region. Fibre rollout into these countries started last year with Lesotho being the first network completed. “We have now also completed Namibia and will complete Botswana and Mozambique in the next couple of weeks,” Imran Abbas, executive head of Neotel’s Business Support Services (NBSS) says. - Electrogaz, Rwanda’s water and electricity utility has announced that it will deploy optic fibre cables along the electricity transmission and distribution lines to link all the power plants, substations and Electrogaz's town offices, to the national control Centre. The system will also form part of Rwanda's national fibre backbone. The Netherlands government through a grant of Euros 24,644,553 (Rwf20 billion) has supported this initiative while a balance of 12,795,276 Euros (Rwf10.3 billion) is Netherland's bank loan facility to the Government of Rwanda. - Naspers’ 24.com recently launched Nuus24.com, an Afrikaans version of South Africa’s most popular website, News24.com. - A new study published by the research group Open Net Initiative on Internet content controls in the Middle East and North Africa claims web censorship, both in scope and in depth, is increasing in the majority of countries in the Middle East and North Africa region. Fourteen out of the eighteen countries surveyed in the study censor Internet content using technological means. - Zain Zambia will install an optic fibre network in Lusaka, Livingstone and the Copperbelt aimed at reducing operational costs, managing director, David Holliday has said. Holliday said the micro-link connection currently in use was expensive compared to an optic fibre network which has the additional advantage of reliability. “When we put up an optic fibre in these places, we are investing in the future because the optic fibre is a much cheaper, safer and reliable form of network,” he said.
Ethiopia: Bid Too Small for Oracle, Girma Wake SaysThe American IT firm, Oracle, has been left out from a multimillion dollar IT bid with Ethiopian Airlines, because the company felt the value of the contract would be too small for it to get involved directly, Girma Wake, CEO of Ethiopian Airliners, said on Friday, August 7, 2009. Oracle was one of the two companies short listed out of six by the airline to provide a technology solution for the Enterprise Resource Planning (ERP), one of the two IT components ET issued public tenders for in late 2008. These bids are part of the airline's plan to invest over 300 million Br for the installation of a grand IT project known in the industry as Master Systems Integration (MSI). A controversy over the role of local partners in the bid process led Ethiopian Airline's management to review its contemplation to select the German SAP, which was represented by a local company, Fairfax Global Investment. Oracle has entered into the bid with Trans Computer Technology (TCT), a company largely owned by Wondwossen Mesfin. The airline had informed both companies to re-enter their bids directly without intermediaries. Oracle felt the bid, which is not worth more than 10 million dollars, was not big enough to warrant their direct participation, and would not continue without their local agent here, Girma disclosed. "They have told us clearly that we were too small," Girma said. Oracle was buying time to enter into another bid offered by the Ethiopian Telecommunications Corporations (ETC) which has similar projects alleged Girma. It was then that Oracle came back asking for an extension of the deadline for document submission, while SAP came with its own bid proposal. "We gave them the 10 day extension they had asked for," Girma responded to questions at a press conference held at the Hilton. What brought the disparity with Oracle was when they wanted another extension to the deadline, according to Girma. "This was a joke," he said. Left with a lone bidder, the airline now pursued its negotiations with SAP which has offered a price of US$8.9 million to do the jobs. This is approximately US$90,000 lower than Oracle's offer during the first bid. Girma disclosed ET will sign the deal with SAP when the negotiations come to an end. The airline has hired a Mauritanian national as its Chief Information Officer (CIO) to supervise the implementation of its technology projects. (Source: Addis Fortune) Microsoft South Africa opts for equity equivalencyMicrosoft SA is wrapping up its empowerment strategy and will make an announcement once the plan has been submitted to, and approved by, the Department of Trade and Industry (DTI). An equity equivalency deal, which will see the company spend millions on training instead of selling stock, should be announced in the next two months, if the DTI approves the proposed plan. Vis Naidoo, head of citizenship at Microsoft SA, says the company is finalising its broad-based black economic empowerment strategy. “That strategy... will be publicly announced once it has been submitted to, and been approved by, the DTI.” Addressing delegates at last week's Microsoft Partner Summit, in Durban, MD Mteto Nyati said: “We are right now in the process of getting necessary approval from the Department of Trade and Industry... to do equity equivalency.” He said the company will also make a “huge investment” in South Africa, but could not provide any further details. The company is a level six empowerment contributor and will be at level four by the end of this month, but is ultimately aiming at becoming a level two provider, the second-highest possible level. Level six is two steps above being considered a non-empowered supplier. Nyati added that another aspect of empowerment, separate to the equity equivalency strategy that Microsoft is finalising, is to make three senior posts available for training. He explained the company will hire three empowerment candidates at a time and train them for positions in the company. As the trainees are hired, their slots will be filled by others, who will also receive training. Nyati explained the programme allows Microsoft SA to hire senior previously-disadvantaged people, without threatening existing staff. "We need to start reflecting South African society more," he said. “I have been given an additional head count over and above the normal head count, so I can bring in people at senior level in an environment free of risk, keep them, let them gain an understanding of Microsoft and, once they are comfortable, appoint them into key jobs.” Budget has been made available for this in perpetuity. As many international companies operating in SA cannot easily sell equity to local groups due to the structure of their holding companies, some have applied for exemption. This requires that other areas of the empowerment scorecard, such as training and equity among staff, make up the difference. (Source: ITWeb) Computer viruses slow African expansionAlan Mercer was at his desk in the regional capacity building bureau in Assosa, western Ethiopia, when a man burst into his office, distraught. Right at the end of a four-year master's degree programme, he had lost the only copy of his thesis to a computer virus. Mercer, an IT trainer with Voluntary Service Overseas (VSO), wasn't surprised. "Show me an Ethiopian computer without a virus and I'd ask which foreigner it belongs to," he says. While western countries have partially learned to neutralise the threat of computer viruses, Africa has become a hive of trojans, worms and exploiters of all stripes. As PC use on the continent has spread in the past decade (in Ethiopia it has gone from 0.01% of the Ethiopian population to 0.45% through 1999-2008), viruses have hitched a ride, wreaking havoc on development efforts, government programmes and fledgling businesses. "It wouldn't be unreasonable to say 80% of all computers you find in Africa will have some nastiness on them," says Tariq Khokhar, the chief development officer of Aptivate, a non-governmental organisation that focuses on IT. This compares to around 30% in the UK, according to Panda Security. The cost is hard to measure, but ask IT consultants and development workers about the impact, and the stories pour out. Mercer tells of an agriculture bureau employee who lost the multi-year plan for agricultural improvements for the Benishangul-Gumuz region, Ethiopia's fourth poorest area. Jeremy Brown, an IT consultant in Cameroon, says that one client was operating with more than 200 infected files, drastically slowing down its PCs, corrupting confidential information and exposing it over the internet. Even the Congress of South African Trade Unions found in May that its website was spreading viruses to visitors. "Viruses are pretty endemic," says Brown. "All organisations and individuals are affected by them." Viruses spontaneously reboot computers, destroy vital data, and clog Ethiopia's already severely pinched internet connection (it is not unusual to wait 10 minutes to access a single web page). The result: funding applications delayed, small businesses hurt, and hours wasted. "PCs that were bought with limited funds or donated sit collecting dust in the corner of the room because they have been devastated by viruses," says André Mohamed, an IT professional in Ethiopia. "It's a major reduction in productivity and efficiency." "Viruses are our enemy," says Debebe Fikreselassie, the head of ICT at the Benishangul-Gumuz bureau where Mercer is a VSO volunteer. "We are installing free antivirus but the behaviour of the virus is changing [over] time … and developing countries lack money to buy licensed antivirus like Symantec." That hits the nail on the head, agrees Tim Unwin, the Unesco chair of ICT4D, an IT development collective at Royal Holloway, University of London. "The fundamental problem is that institutions in much of the developing world cannot afford the antivirus [AV] protection that those in richer countries can," he says. Khokhar agrees. "For Africa, the cost of AV is pretty damn high. An annual licence of £30 per user per year can get pretty daunting when you've got 1,000 users." Without special pricing, poor countries are forced to rely on free antivirus products, such as AVG. "Writing antivirus software is a fairly brain-intensive task, and AVG just don't have the resources," Khokhar says. "It's not to say something's not better than nothing, but ultimately, the viruses that are going to cause real damage are going to get through." Brand-new PCs are often ridden with viruses from the start when vendors install pirated, infected copies of Windows – Khokhar estimates that around a third of pirated software is already infected. And even when antivirus software is installed, it is almost impossible to keep up to date. The daily update of new virus definitions from Symantec is around 40MB; McAfee's is around 100MB. "On a 56Kb dialup link, we are talking all day to download," Mercer says. Sometimes the update file is removed and replaced by a newer one before the download has had time to complete. "The entire national bandwidth for Ethiopia, I can simulate that in my house," Khokhar says. This keeps Ethiopia off the antivirus software provider Kaspersky's annual list of the top 10 countries both originating and being targeted by viruses; in 2008, China led both categories. The Eastern Africa Submarine Cable System (EASSy) would help Ethiopians download antivirus updates faster, but would also expose them to more attacks. "If you wanted a way to get [African countries] on to that top 10 list of countries affected by viruses, the first step is to install a big internet connection," Khokhar says. The financial and technical problems are compounded by the developing world's dire shortage of IT education. "The IT degrees here are totally theoretical. People do not understand the concept of backups, antivirus and data security in the first place," says Mercer. Computer viruses are not the only reason Africa lags behind the west in IT development. Electricity supply, training, and bandwidth management issues make e-business a pipe dream in most places. But people are fighting back. Mercer does a day of antivirus and power-protection training as part of all his training courses, as do many people at VSO on an informal basis. Unwin says replacing Windows with Linux would help (80% of viruses are written in China, where Windows dominates). The Ethiopian government has, in fact, made open source software central to its IT plans. Khokhar says it's no magic solution. "If you suddenly had an increase in Linux or Mac use in China, you'd find those two platforms are just as vulnerable." Using better software in general, he argues, would be a better place to start. "If you could somehow clobber RealNetworks, Adobe and Microsoft to say, 'Can you please write software that doesn't have that many exploits, or if exploits are identified, have some mechanism for closing them more quickly' – then that would really help." It's a good bet that virus writers devising ever more ingenious ways of sticking a knife between Microsoft's ribs rarely consider where their handiwork ends up. "I'd take them to Ethiopia," says Mercer. "I'd show them the man who lost his agricultural development plan to the virus he wrote. Then I'd show him the kids who will die in two years because the agricultural reforms came too late and the annual harvest failed because the agricultural development plan at the regional agricultural bureau was destroyed by his virus." The sad irony is that Ethiopia's enthusiastic embrace of the computer has made it more vulnerable, as people start dispensing with paper records. "Now, with no backup, and important data on a computer, they are at risk – they have something to lose," Mercer says. Mohamed agrees: "The computer, instead of being an enabler for development, often becomes a hindrance." (Source: The Guardian) In Brief:- With the battle for netbook supremacy heating up Ubuntu is promising to roll out a much-improved interface for the ultra-portable netbook market when it releases Ubuntu 9.10 in October this year. Also known as Karmic Koala the next release of Ubuntu Netbook Remix (UNR) will include a noticeably streamlined interface and some speed enhancements. - Nokia scores first million for Ovi email. The top five countries for subscribers are India, Indonesia, Mexico, Russia and South Africa, five of the highest growth markets for mobile services in general.
Telecom Egypt reports 41.3% increase in first half net profitEgyptian incumbent Telecom Egypt (TE) has released its financial results for the six months ended 30 June 2009, posting a consolidated net profit of EGP1.75 billion (USD315 million), a 41.3% year-on-year rise. The telco also reported that consolidated revenue rose 8.3% to EGP5.2 billion. Revenue from internet and data services led the way, rising to EGP316 million, a 24% increase on the same period a year earlier, while wholesale revenue was EGP2.18 billion compared to EGP1.89 billion in 1H 2008. Retail voice revenue, however, declined to EGP1.41 billion in the six-month period, a 3% y-o-y drop. Earnings before interest, tax, depreciation and amortisation (EBITDA) before provisions was EGP2.8 billion, a 16.1% annual increase. At the end of June 2009 TE’s fixed line voice subscribers had fallen to 9.84 million, down more than 12% against the same date a year earlier. Sign-ups to the telco’s ADSL services, however, have continued to climb, with the operator reporting a 67.3% annual increase, bringing its broadband customer numbers to 502,157, which it estimated gave it a 59.8% market share. (Source: Telegeography) Zamtel in 17m US dollars annual losses in ZambiaGovernment says Zamtel has an annual operational deficit of US$17 million. This is apart from the telecommunication company having liabilities of over US$125 million as at December 2008. Minister of Communications and Transport, Geoffrey Lungwangwa said this in Parliament last week when he issued a ministerial statement on the intended partial privatisation of Zamtel. Professor Lungwangwa said Zamtel in its current form is insolvent, adding that it owes Government over K300 billion. He said government decided to privatise Zamtel to save it from liquidation. Prof Lungwangwa said Zamtel has lost over 10,000 mobile and fixed line subscribers since 2006 due to the financial and operational challenges that the company is faced with. He said while the two major private operators in the mobile telecommunications industry, namely, Zain and MTN have over 3.5 million subscribers between them, Zamtel has fewer than 200,000 customers. “In spite of its monopoly status, the company has only managed to attract fewer than 100,000 fixed and fixed-wireless subscribers over the last 40 years and, indeed, since 2006, it has lost over 10,000 subscribers,” Prof Lungwangwa said. He said the average subscriber base for sub-Saharan African telecommunication operators is 586per employee while Zamtel has only 110 subscribers per employee. Prof Lungwangwa said despite the poor subscriber numbers, the company has maintained a cost base that is out of proportion with its commercial performance. He said in the 2007-2008 financial year, staff costs generated as a result of the company’s more than 2,500 workforce accounted for over 70 percent of revenues. Prof Lungwangwa said as a result of its disproportionate cost base and inadequate commercial performance, Zamtel’s profitability has declined sharply. He said in its current state, the company cannot compete favourably where other players are enjoying significant market share. “It is for this reason that a committee was set up to evaluate the financial status of the company, and the best solution they came up with was to partially privatise the company,” he said. Prof Lungwangwa said Zambians are at liberty to participate on an equal basis with all other interested parties acquiring the 75 percent shares in Zamtel. He said the majority stake will be offered only to qualified partners who can demonstrate financial capacity and management experience to turn Zamtel into a powerful competitor in the Information Communication Technology (ICT) market. (Source: Zambia Daily Mail) Meditel reports a drop of 16% in ARPU in MoroccoMeditel has reported results from the second quarter of 2009, in which its turnover rebounded by 1% to MAD1.24 billion (USD158 million) on the back of year-on-year customer base growth of nearly 22% to 8.6 million, up from 7.1 million at mid-2008, regardless of a 16% drop in ARPU over the year. The subscriber growth rate was anticipated to be greater than larger rival Maroc Telecom, which by the last published count had 14.6 million users at end-March 2009, up from 14.2 million in June 2008. Meditel broke down its performance by segments for investors, showing post-paid revenues that were up 5.8%, enterprise user sales up 9.0%, internet turnover up 120%, and pre-pay revenues up 2.8%, with only earnings from international and roaming services down 6.4%. (Source: Wireless Federation) Monitise Signs Mobile Banking Partnership in East AfricaMobile banking service provider, Monitise says that it is extending its business further into Africa and the Middle East with a joint venture with Paynet, an electronics payment company. The agreement with Paynet, which has a well-established electronic payment network in Kenya, Tanzania and Uganda that connects to 35 regional financial institutions, will allow Monitise to further expand its operations in Africa and the Middle East. Uniquely among mobile banking services, Monitise also enables people without a bank account to use its services, as well as providing traditional mobile banking to those with accounts. The technology turns mobile phones into 'mobile wallets' which can be loaded with money and used to pay bills, deposit and withdraw cash, and receive money transfers. Services are expected to start early next year, enabling participating banks and mobile operators to offer banking and financial services to existing customers, as well as opening new markets. Alastair Lukies, chief executive officer of Monitise, said: "Paynet and Monitise share the same vision of the social and economic benefits which mobile money can bring to developing countries." "Paynet's established presence in East Africa and its expansion into the Middle East is a natural fit for our mobile money platform and its continued expansion into these territories with our partners around the region." (Source: Cellular News) In brief: Kenya's Safaricom says that it has signed an agreement to buy local WiMAX operator, Packet Stream Data Networks for an undisclosed amount. The intended acquisition comes on the back of Safaricom's recent appointment of Jamii Telecommunications as its preferred partner in the rollout of it optical fibre network. Telecom Egypt, the local landline operator that owns a 44.95% stake in Vodafone Egypt, has reported an 8% rise in first-half revenues to EGP 5.2 billion (US$942 million). Net profit after tax was EGP 1.75 billion (US$317 million) representing an increase of 41% on H1 2008 and translating to a net profit margin of 34%. The contribution of share of profits from Vodafone Egypt was EGP 632 million (US$114.6 million), up 3.3% on the year before. Telecoms, Rates, Offers and Coverage (briefs)- As power disruptions in the country intensify, Safaricom has joined forces with ZTE to launch a solar-charged mobile phone in the Kenyan market. Zhong Xing Telecommunication Equipment Company Limited-ZTE-is a global provider of telecommunications equipment and network solutions. The solar-charged phone- Simu ya Solar- is made from recycled material, will retail at Sh2,999 and will be locked into the Safaricom network. - MTN Congo and Sicap have launched a new service, marketed under the Sicap product name of Pay4Me. The Sicap solution allows MTN subscribers to bear the cost of a call from loved ones who are momentarily out of credit. Essentially a collect call service, Pay4Me opens up the opportunity for all MTN subscribers to call other MTN numbers, even when out of credit. The subscriber simply dials a short code before their correspondent’s number in order to send a collect call request. The correspondent receives notification and presses 1 to accept the charges. - Zain mobile money transfers will be accessible in all the Western Union outlets across Uganda. This follows the signing of a deal between the two firms. "This partnership will enhance the ZAP service to be more accessible to Zain customers because of the Western Union footprint across the country," said Yesse Oenga, Zain’s managing director. - Managing Director of Starcomms Plc, Maher Quiben has challenged the Nigerian Communications Commission, NCC to reduce interconnection rates between the CDMA operators and their GSM counterparts, to encourage more industry improvements. - Ghana’s telecoms regulator the National Communications Authority (NCA) has published its report on the development of the mobile market as at 31 March 2009, noting that on average, the nation’s mobile service providers recorded average revenue per user (ARPU) of USD5 a month. The per-customer spend includes both voice and data usage, and the sums derived from interconnection fees on incoming calls, the NCA said. - MTN Uganda announced that it had registered over 100,000 customers on its mobile money transfer service, MTN Mobile Money in less than its projected timeframe of 6 months. The money transfer service that was launched only six months ago has seen transactions of over UGX.16 billion go through the system to date and to ensure easy access to the service, MTN has signed up 800 outlets as agents countrywide with the numbers increasing daily. - ZTE Corporation is rolling out a state-of-the-art all-IP mobile phone and data network for a newcomer to Madagascar, mobile operator Madamobil. The network rollout is currently in its final stages, with ZTE supplying the core equipment and the base stations for the first phase of the network construction. Madamobil expects to launch services by August 2009 in Antananarivo, Madagascar's capital, and to expand into other cities in Madagascar. Madamobil, which will offer services under the "Life" brand, is the only mobile broadband network operation in Madagascar operating on CDMA 2000 1X/EVDO.
Facebook Lite targets mobile and dial-up users in emerging marketsSocial networking kingpin Facebook is now trialing a new streamlined service dubbed Facebook Lite, with an emphasis on mobile and dial-up users in geographic regions where broadband services are limited, non-existent or simply too expensive for most users. Facebook tells TechCrunch that Facebook Lite simplifies its conventional social networking platform, offering users accelerated loading times and access to basic services like writing on people's walls, sending messages, browsing photos and accepting new friend requests. Facebook Lite is currently in beta trials in India, with launches planned in China and Russia. Facebook did not comment on whether it might eventually introduce the service in existing strongholds like the U.S. and the U.K., offering users the option of faster, more basic experience. (Source: Fierce Mobile Content) Mobile Money and payment Perception Survey in Nigeria ( 2009)Nigeria with 5 Mobile Operators and 7 CDMA operators with total subscription of 62 Million under an addressable market of 140 Million people is the largest market for Mobile telephony in Africa. Despite the successes recorded in the financial sector in recent years and spread of 25 mega Banks with over 9,500 Bank Branches and 11,000 ATM points, Financial Inclusion is still limited and not widely available for Millions that are still left behind. As Potential Mobile Money providers across the Globe eye the Largest Mobile market in Africa for mobile payments technologies, there is a strong compelling need to provide credible and evidence based information and Data for Technology providers, Financial Institutions, Regulators, Researchers, scholars and Investors in the evolving ecosystem. MobileMoneyAfrica, in coming weeks will conduct Perception surveys in selected states across the Federal Republic of Nigeria with a view to understand the potential drivers of Mobile Money, transactional services that will drive uptake, potential users demographics across different social and occupational groups, access, End user costing metrix and other relevant information that are needed for decision support in the industry.This is the first in the series that will take us to other parts of West Africa in the short term. The outcomes of the survey will help Financial Institutions and Mobile payment providers to competitively position their products and services in the evolving ecosystem. Subject matter experts and researchers in the domain area are welcome on board to provide guidance and directions. Institutional support, potential Partners and survey sponsors can email its originator at: emmanuel@mobilemoneyafrica.com or call +234 803 0818 868.
People- Parliament has selected nine candidates, out of a total of 86 nominees, to interview for the vacant Independent Communications Authority of SA (ICASA) councillor position, including the current holder Mthobeli Zokwe. Apart from Zokwe, the other eight candidates who made the shortlist are: Josephine Mabotja, David Vannucci, Dillo Lehlokoe, Zandile Mxaku, Edmund Baloyi, Luthando Mkumatela, William Stucke and Khulile Boqwana. - Telkom South Africa is making changes to its executive, starting with the promotion of group executive for information operations Bashier Sallie. Sallie has been appointed as the company's new senior managing executive of the wholesale and network division. Sammy Gumbe will, for the time being, act in the position of executive for information operations. The company has also promoted Marena Janse van Rensburg to head of finance for Telkom SA. She has been at Telkom since 2002. - Telecom Egypt has also announced that its current CEO, Eng. Akil Beshir will resign with immediate effect, although he will retain a position on the board of directors. He is to be replaced by Tarek Tantawy, Telecom Egypt's current Vice President & Chief Financial Officer. He has been with Telecom Egypt since 2002. Events:* 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 facing 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 * INTERCONNECTION COURSE 24-27 August 2009, Sandton, South Africa Good interconnection regime will help businesses boost their competitiveness in an increasingly competitive and globalised telecommunications market. This 5-day course will provide an insight into various interconnection issues including implementation, pricing models, and challenges faced by operators and regulators. For further information about this course download the brochure here http://www.cto.int/Portals/0/docs/courses/2009/interconnection%20brochure2.pdf * 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 * BROADBAND AFRICA SUMMIT 28-29 September 2009, Dakar, Senegal Broadband Africa is the leading conference and exhibition for the entire broadband ecosystem in Africa. This must attend event will bring the industry together to define the future of both fixed and mobile broadband. The comprehensively researched agenda will cover the most topical and timely issues, and will serve as a platform for discussion and debate at the highest level. For more information visit the conference’s website http://www.broadbandglobalsummit.com/africa/home/home * 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* Distribution channel needed – South Africa Derdack GmbH, a software development company based in Germany, is looking for a well connected South African company to represent them and sell their Enterprise Alert software. This software allows for the Automated Communication of Alerts in Emergency Situations (see our website – http://www.derdack.com ). Ideally the chosen company will have connections and inroads into Corporates and Government Departments, and will have a proven track record in the IT and/or Communications industries. Derdack GmbH will be available in Cape Town on the 9th September 2009 to meet potential and interested partners. Please contact Ebrahim Khan at Wesgro directly should you wish to schedule time with Derdack - Ebrahim@wesgro.co.za * Call for paper for UbuntuNet-Connect 2009 This is the second announcement and call for papers for the 2009 annual conference of the UbuntuNet Alliance, UbuntuNet-Connect 2009 which will be held in Kampala, Uganda from 12th to 13th November, 2009. This year’s conference will be hosted by the Research and Education Network for Uganda, RENU. We are calling for abstracts and papers under the following sub-themes, the focus in each case being an exploration of current opportunities and challenges, and creative methods that have been used or are proposed to seize opportunities and address challenges. (Papers that dwell on the routine will not be accepted - we are looking for creativity, innovation, and thinking outside the box). Sub-themes include: - Network deployment and operations (Regional and National). - How NRENs are addressing policy and regulatory challenges. - Capacity building. - Content networks. For further information visit http://renu.ac.ug/uconnect2009 * Masters scholarships and doctoral research grants – Eastern and Southern Africa IDRC is providing competitive training grants - Masters' scholarships and PhD research grants (via Nairobi University, but tenable in any University within Eastern and Southern Africa) in the field of ICT4D. The deadline is 30th September 2009 For further information on the grants programme visit http://www.ict4dgrants.org ContractsWana and Huawei - Morocco Huawei Technologies of China has been chosen as the sole supplier of Moroccan operator Wana’s new GSM/UMTS mobile network, under a contract of undisclosed value. The vendor is exclusively contracted to provide a 2G/3G wireless access network, core network and value added services (VAS) network, and phase one of the project will involve deployment of 1,500 base transceiver stations (BTS) by December this year.
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