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The countries below contain a historic archive of information on the state of the internet that is now three years old. For some countries, the information has remained largely the same whereas for others considerable change has occurred. However it can still be used to identify organisations involved in developing the internet and to understand the historic development of the Internet in Africa. For up-to-date (but "pay-for") information click here: There are special rates for students and universities.

DOWNLOADS ZONE
This is an area where you can download longer articles and reports of interest. These will be updated as new material becomes available.

Download 1
(Word format, 875kb)
This IDRC-supported research study looks at how complaints by African consumers in the telecoms and Internet sectors are dealt with and what input consumer organisations are able to make into policy for these sectors. It is based on a survey of 30 African countries and includes detailed case studies of Kenya, Senegal and South Africa.

Download 2 Word document
(255kb)
This chapter from the ITU's Global Trends in Telecommunications Reform 2005 examines the market and regulatory implications of the shift to IP networks and outlines the different types of responses regulators are making to VoIP calling.

Download 3
(pdf format, 310kb)
Leslie Chan, Barbara Kirsop, Subbiah Arunachalam look at the use of Open Access archiving as a way of improving scientific capacity building.

If you have updates or interesting material to add, please send it to info@balancingact-africa.com

ALGERIA ANGOLA BENIN BOTSWANA BURKINA FASO BURUNDI CAMEROON CAPE VERDE CENTRAL AFRICAN REPUBLIC CHAD COMOROS CONGO COTE D'IVOIRE DEMOCRATIC REPUBLIC OF CONGO DJIBOUTI EGYPT EQUATORIAL GUINEA ERITREA ETHIOPIA GABON GAMBIA GHANA GUINEA GUINEA-BISSAU KENYA LESOTHO LIBERIA LIBYAN ARAB JAMAHIRIYA MADAGASCAR MALAWI MALI MAURITANIA MAURITIUS MOROCCO MOZAMBIQUE NAMIBIA NIGER NIGERIA REUNION RWANDA SAO TOME & PRINCIPE SENEGAL SEYCHELLES SIERRA LEONE SOMALIA SOUTH AFRICA SUDAN SWAZILAND TOGO TUNISIA UGANDA UNITED REP OF TANZANIA ZAMBIA ZIMBABWE

Dropping the ties that bind – how Africa can help itself to get lower bandwidth prices

Telecoms news

Internet news

Computing news

Digital toolbox/In search of the business model

On the money

Web news

People, events, jobs, contracts...

Forthcoming report:

African Telecoms and Internet Markets

Part 1: West Africa covers sixteen countries: Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo. There is a profile of each country. For a detailed breakdown of the contents of each country profile, click: http://www.balancingact-africa.com/atim.html

Over the next two years we will be producing five parts that cover the whole of the continent.

Using data gathered in 2003 and 2007, it gives the growth rates for the following: mobile and Internet subscribers, international bandwidth and the number of cyber-cafes. It also includes information on Internet and cyber-café access rates. Data is supplied in spreadsheet form for cross-comparison purposes and the report opens with a commentary on the overall findings from the data.

In addition, there are two introductory pieces, one looking at IP-TV and the other examining the current state of mobile prices in West Africa. In “IP-TV – Will the pioneers get the arrows or the land?”, we examine the current progress of Africa’s IP-TV pioneers in Cape Verde, Mauritius, Morocco and Senegal. In “Trends in West African mobile prices”, we compare mobile prices in the region with those found elsewhere on the continent. Data is supplied in spreadsheet form for the purposes of cross-comparison.

Out September 2007.

You can order directly from our website: http://www.balancingact-africa.com/publications.html

WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday.

For country-by-country information on internet, telecoms and computing in English go to: http://www.afridigital.net

L’edition mensuelle en francais: L’edition mensuelle en francais de Balancing Act’s News Update donne des informations sur les derniers developpements en matiere de Telecoms, Internet et Informatique en Afrique. Si vous voulez vous abonner a News Update, envoyez simplement un message en francais "Je veux m’abonner à l’édition en français de Balancing Act’s News Update" a info@balancingact-africa.com. Si vous voulez annuler votre abonnement, il suffit d’envoyer un message en francais "Je veux annuler mon abonenment à l’édition en français de Balancing Act’s News Update" a la meme adresse email.

2009 RATE CARD AVAILABLE
To see a copy of our rate card for 2009, e-mail a request to: (info@balancingact-africa.com) Don't get left behind. Be seen and known through advertising in our e-letter and on our web-site.

ISSUE NO 476 16th October 2009

Dropping the ties that bind – how Africa can help itself to get lower bandwidth prices

In Kenya two international cables – Seacom and TEAMS – have arrived but a fierce row has broken out over pricing. On the Government-backed TEAMS cable, Permanent Secretary Bitange Ndemo has said loudly and publicly that rates should come down to nearer US$200 per mbps. The cable’s owners say they have to recoup their money and that there will plenty of time later for prices to come down. Russell Southwood looks at some of the blockages to the benefits the international cables might bring and how they might be overcome.

By 2011, Africa will have eight international fibre cables connecting it to the rest of the world. New infrastructure is already delivering an eight to ten fold reduction in the prices formerly charged by the satellite companies. But the old African mindset of “selling shortage at the highest price” is not changing quickly enough to keep up with the new future of plentiful bandwidth. A number of blockages are emerging that need to be overcome if Africa is to take full advantage of its new fibre assets:

* Holding bandwidth prices up

We have sat in rooms with bandwidth providers in at least two countries where they have argued that the new international fibre will not make that much difference to the prices charged to their customers. Indeed, the first move of many of the providers was to simply increase (rather modestly) the bandwidth their customers were receiving, whilst keeping the price the same.

So the new cable owners find themselves arguing what might be called the “SAT position”. When the cable is being built, all the rhetoric is about lowering prices but the moment the cable is implemented, it suddenly becomes about getting back the money as quickly as possible for their investment, despite the long-term nature of cable investment.

Telkom SA claimed to have recouped its investment on SAT3 in eighteen months but it is unlikely with the new lower rates that cable investors will see a full return for a much longer period. Apparently CCK is so cross with this switchover from promising lowered bandwidth costs to trying to keep the price high that it will be investigating price levels on the TEAMS cable.

However, all this price-hiking is short-term as with the arrival of EASSy and its WIOCC consortium, prices will fall sharply again. If that has not occurred WIOCC has a price-fall mechanism that will see bandwidth in the market fall to US$100 per mbps. In East Africa, there has been a lively debate over pricing but expect the same price-hiking tactics in West Africa where media coverage may not be as intense.

* Not granting international landing station licences

One of the major issues in West Africa has been the granting, or perhaps we should say the failure, to grant international landing station rights to those building the new international fibre cables. How can this be occurring when everyone at every level has been arguing for cheaper bandwidth? Well, it’s the old self-interests being more powerful than the forces for change and everyone behaving according to the old model of behaviour and protecting the incumbent.

The most extreme example is Senegal where the regulator has delayed granting landing stations to the cables most likely to be first in the race to complete: Glo One and Main One. In more competitive East Africa, the independently-owned Seacom cable was able to either partner with another independent (KDN) or land using a licence in its own name in Tanzania.

But life has not been made that easy in Senegal where Main One is seeking to partner with the only possible alternative to France Telecom-owned Sonatel, Expresso. There is no opportunity to have an independent licence because this might make it too easy to compete with the de-facto monopoly of Sonatel, which is involved in the France Telecom cable initiative ACE. But why blame the regulator when the real delay is coming from Government that takes all the decisions?

The cynic might conclude that these delays will help Sonatel get ACE in place and keep out other cables for as long as possible. Of course, the speedy licensing of Glo One and Main One would prove the cynics wrong but don’t hold your breath.

* Rates between landlocked countries

Once the new cheap bandwidth is at the landing stations, the trouble really begins. Operators do much “teeth-sucking” and say “of course, you know that’s not the real price. We have to charge for transit.”

In countries without a landing station, this leaves them in the hands of those accustomed to the old way of doing things. When incumbents dealt only with incumbents for cross-border transit, they both had an informal agreement that they would charge the same high price for each end of the transit. The net result is that prices for cross-border transit remain high. One country we visited recently, it was paying more for the transit to the landing station in a neighbouring country than it was for the onward transmission to Europe.

In East Africa, this is less of a problem as some thought was devoted to the issue and solutions are on the table. With World Bank prompting, the EASSy partners came up with the East African Backbone System that delivers inland bandwidth at more or less the same priceas at the landing station. Seacom has also delivered on its promise of the same price inland as at the landing station for those countries where it has inland partner (Rwanda and Uganda).

But the problem will be much harder to solve in West Africa as the main independent cable Main One has taken the view that its capacity will be delivered by the operators themselves, who will doubtless turn every trick in the book to ensure that prices remain high for the transit portion.

What regulators should be encouraging is regional carriers’ carriers who can compete with the existing telcos who might seek to keep prices high. The West African and Southern African Power Pools have ample fibre capacity to make a reality of this ambition working with independent partners.

* The high cost of national transit to reach the POP or the landing station

If cross-border transit rates are a form of highway robbery, then national transit rates show many of the same symptoms. It is cheaper to go from Lagos to Sessimbra in Portugal than it is to go from Lagos to Abajua. If rates are based on distance, then the new international fibre cables have exposed the high rates charged for national backbone delivery.

Not surprisingly, these national transit rates remain high where there are legal or de-facto monopolies. Without competition, it is hardly surprising that the old pattern of charging what you can get away with is maintained. But you cannot have competition at the international level, without it having knock-on consequences at the national level.

National backbone operators will need to improve their efficiency levels or risk others building out their own backbones (where this is allowed). All operators know that in this circumstance they can cut between a third to a half off of the current rates being charged. The choice is a stark one: either you have a price-controlled monopoly with lower prices or you allow operators to compete and get lower prices.

The sceptics will say “But who wants all this new bandwidth? There aren’t the customers. (appropriate shrug of shoulders) This is Africa.” The alternative to this old way of thinking is to have a “low price, high volume” strategy that is about creating volume markets at yes, you guessed it, commodity prices. Then you sell the new customers services and applications on top. In the mobile field, MPesa is the best example of how an Africa-targeted service can take off.

It’s not about relying on the “same old, same old corporates” but about addressing the residential middle classes with Internet in places like Nigeria and Kenya who will provide the “critical mass” for reaching out more widely. It’s about bringing the small-scale companies and NGOs to the party and persuading them of the virtues of using the Internet to get things done more quickly. In short, it needs a strong dose of corporate vision rather than seeing the future through the rear-view mirror of history.

ISSUE NO 476 TELECOMS NEWS

INDEX

Ghana’s Government plays down Vodafone report

The Ghanaian government has distanced itself from a report produced by a committee it set up to scrutinise the sale of its telecoms firm to Vodafone.

The report, seen by the BBC, said Ghana Telecom (GT) was sold to the UK-based company for less than it was worth.

It said the sale of GT had been "unconstitutional" and "illegal".

But the communications minister said the committee had overstepped its remit and should wait for the Supreme Court to rule on the legality of the sale.

The court is expected to deliver a preliminary judgement on the case later this month.

"The government… cannot be associated with comments or reports that seeks to undermine our respect for independent state institutions and the rule of law," Communications Minister Haruna Iddrisu told Ghana's Joy FM radio station.

The BBC's David Amanor in the capital, Accra, says in distancing itself from the report that it commissioned, the government is pre-empting criticism from the opposition that oversaw the sale of GT while in power.

Ministers are also trying to reassure foreign investors that they are safe so long as their transactions respect local and international laws, analysts say.

Vodafone bought a 70% stake in Ghana Telecom (GT) and its assets for $900m (£570m) last year.

The report, compiled by a government review committee, said "through a complicated series of financial arrangements" the actual price released was less than $267m - far less than the annual earnings potential of GT.

(Source: BBC)

Mobile phone Cost Briefings to Be Secret In South Africa

Parliament's communications committee has decided to call cellphone operators for confidential one-on-one briefings on their cost structures over the next few weeks in an endeavour to determine a realistic interconnection rate.

And there is a strong feeling among committee members -- endorsed by the Congress of South African Trade Unions -- that the entire pricing and cost structure of the mobile operators be analysed to make sure they do not try to recoup the lost revenue from the interconnection rate reduction in other areas of their business.

Both Vodacom and MTN have indicated their willingness to provide their commercially sensitive information to the committee, but only on a confidential basis. They have opposed the committee's proposal to reduce mobile termination rates immediately from a peak of R1,25c a minute to 60c, saying this was below cost.

Karel Pienaar, MD of MTN SA, told the committee its average interconnection cost was about 96c and it could work within a range of 10% below that. But he warned that drastic cuts that did not factor in SA's development needs would be a "business model shock".

Cell C CEO Lars Reichelt also said the 60c proposal was "too strong and not rooted in reality". He estimated the off-peak termination rate for the major players to be 77c, and proposed a flat 75c assymetrical termination rate from the start of the new year for Vodacom and MTN, and 65c for Cell C.

"We believe this proposal can potentially gain support from other players," Reichelt said.

Others have warned about the dangers of arbitrage if different termination rates are applied.

Both Vodacom and MTN have emphasised the need for a longer phase-in period for the reduction, saying they would have to change their business and investment plans. They said revenue from interconnection fees -- estimated at nearly R3bn for both operators -- had provided the funds for the investment in infrastructure and the achievement of SA's high penetration rate.

The mobile operators, together with Competition Commission commissioner Shan Ramburuth stressed the need for regulatory certainty and for the Independent Communications Authority of SA (Icasa) rather than Parliament to determine a defensible termination rate on the basis of a sound methodological analysis of costs.

Ramburuth warned that any figure arrived at arbitrarily would be subject to legal challenge. "We should not be guessing these figures," he told the committee.

However, committee chairman Ismail Vadi said that the committee needed to be armed with knowledge about the costs of interconnection so that it could assess whether Icasa had done its job properly when it decided, together with cellphone operators, on the size of the reduction in mobile termination rates.

(Source: Business Day)

Nigeria: 'We'll Consolidate Regional Telecom Market' says Suburban’s CEO

Mr Bruce Ayonote is the Chief Executive Officer of Suburban West Africa Limited. His company is a telecommunication services provider to mobile companies such as MTN, Globacom, and Zain. In this interview he speaks on how his company plans to deploy optic fibre technology to connect the entire West African sub-region.

You deployed fibre links from Nigeria to Ghana, Togo and Benin Republic. What is your mission in this regards?

What we intent to do is to connect the sub-region. If you go to most countries around the world, you talk on a continental basis. Regional integration is been a very clearly economic stimulant and development tool to create stronger economies like consolidation.

You don't consolidate only your banks but you consolidate also your market, communications infrastructures and in reality, the logical way to do that is to start from the foundation up at your communication network.

By the time you start doing that, you now connect these markets together and ease the possibilities and realities of trade and commerce. So, we think West Africa should be more than the other regions integrated not only from political perspectives but economic and social perspectives. We think that infrastructure that has been successfully deploy and sustainable now becomes the best test case for that to happen because we have seen considerable amount of infrastructure development in telecommunications that has been sustain for over a decade now.

Even those mobile telecom companies have taken a regional approach in developing and preserving their businesses but what has not been done is the consolidation of the networks because you require transmission to do that.

So, moving in line with the regional trend, the global trend and the trend of our markets, the leadership position that Nigeria has within the sub-region, and the confidence that we have within this organisation, we see that as an opportunity to consolidate those networks and go along with the general progress of making the sub-region a better place.

What is the financial implication of the project?

The financial implications are naturally huge because infrastructure cost a lot of money. However; we have been very careful about our cost and look at strategies that has made us achieve that at a very cost effective price. I won't like to call any figure but there is been quite a lot of money that has been spend.

People feel that optic fibre will leads to reduction in voice tariff. How true is that?

How optic fibre leads to reduction in tariff needs to be appreciated because is a half truth. Optic fibre is one element of the network. There is a lot of element on the network that also play crucial roles.

The optic fibre plays the transmission network. Though it impacts the switching in the sense that if you carry it in a network, you can now have an all IP and if you can have an IP network, your cost will be much cheaper but the issue is that there are various networks within the network.

What the optic fibre does is that it addresses call and your access, based on that it addresses cost on two of these networks and reduces cost seriously.

It also gives the other network, the core network the opportunity to also become much cheaper and to share resources because of the speed and capacity that it carries, you don't have to replicate quite a lot of base stations or switching centres.

You can switch from the central point and the intelligence can be centralise on the network and deliver to other side of the network which can also reduce cost.

For the operational cost, a lot of people will argue that it is not the capital expenditure that is the challenge, but the operational expenditure.

If you are spending so much on diesel, repairing of your network because of cuts and theft, you will still see cost in there.

Bye and large, there is still some reduction like 20-25% of cost reduction impact on the fibre base on the networks.

What is the future of Telecommunication support services in Nigeria?

I think the future for the support services based on the intact of convergence in all of the hierarchy within the networks, the boundaries are been open up.

We've been talking about the transport, international and domestic network. What is going to happen is that we are going to have just one network that delivers services.

That will also mean that support services will be integrated into the general network. So the future is a consolidation of networks based on convergence and global trend.

(Source: Daily Trust)

Kenya: M-Pesa Goes Global in Battle for Mobile Cash Transfer Pie

Kenyans will be able to send and receive money to UK through Safaricom's M-pesa in the company's first commercial cross-border transfer service whose details will be announced later during the week.

The move opens up the service --which has contributed to the slow decline in usage of more traditional money transfer solutions -- to the lucrative remittances market and sets the stage for a new battle on the international front between local mobile operators.

Safaricom's competitor in the market, Zain, just under a month ago, unveiled a service that allows subscribers to send or receive money anywhere in the world using the Zap platform.

Safaricom has been actively pursuing a link with its UK affiliate, Vodafone, to allow subscribers on its network to send virtual cash across borders since it launched the service over two years ago.

According to sources involved in trials for the service launched in 2008, the proposed rates for an M-pesa transaction between Kenya and Uganda are Sh480 (£4) for amounts between Sh0-18,000 and Sh720 (£6) for amounts between Sh18,120 and Sh30,000 (£151 - £250).

The rapid adoption and frequent use of M-pesa has translated to Safaricom emerging as the local market leader in mobile money transfers, mostly due to its low pricing model and the fact that it is available on the mobile phone.

M-pesa now has more than seven million users and boasts an agent network that exceeds the total number of bank branches in the country.

"By allowing money to flow electronically rather than physically, M-pesa lessens, and in some cases eliminates, many of the spatial and temporal barriers to money transfer. This releases money flows in Kenya and allows such flows to penetrate rural areas where cash is difficult to access," said Olga Morawczynski, in a CGAP research note.

Another pillar in the product's success has been the fact that users do not need a bank account to use the service, a fact that Safaricom chief executive, Michael Joseph, says has pushed the product to prominence.

The market will be keen to see if the product will have the same success in the international market, where money transfers are typically expensive and out of the reach of the unbanked population.

Analysts say the fact that international transfers is a new and untapped market, the entry of mobile providers could set the stage for price battles in the industry.

"Apart from the convenience factor, unless prices come down to comparable levels -- or at least somewhat closer to the cost of sending money domestically -- there is still a long way to go before the potential of international mobile money transfers can be realised," said Sanket Mohapatra of the World Bank.

Mobile firms have turned to borderless mobile money transfers as the next frontier in the industry's development in the last month, hoping to cash in on the lucrative remittances market.

The Central Bank of Kenya last month said remittances totalled $611 million in 2008, up from $573 million in 2007 and are set to continue rising this year.

More than half of remittances have come from North America and Europe in each of the past five years.

"Our survey shows a general downward trend in remittances flow between January and June 2009, and an upward trend in the next two months," said Charles Gitari Koori, Director Research Department of the CBK.

In August remittances inflow increased by 11.1 per cent to $55 million from $50 million in July.

Tapping into this inflow is likely to provide mobile operators with a new source of income in an attempt to diversify products as revenues from traditional activities decline in line with a more competitive environment and economic conditions.

Safaricom's latest move indicates it has surpassed yet another regulatory test.

(Source: Business Daily)

In brief:

- After several months of haggling, Rwandatel and its former employees have reached an agreement that will see each retrenched worker receive long standing benefits.

- The Mozambique government will launch an international tender for a third mobile phone license in December. The process was put on hold in April to address complaints by existing mobile wireless operators Mcel and South Africa's Vodacom. Transport and communications minister Paulo Zucula said the issues have been resolved and that a bidding document is now being prepared.

- Gabon’s fourth mobile operator Azur (the brand name of USAN Gabon) launched commercial GSM services in the capital Libreville on 8 October, reports Gaboneco. A subsidiary of Middle Eastern firm Bintel, Azur launched over a network of 35 base stations with a capacity of 100,000 lines, whilst it aims to expand to Port-Gentil and Franceville in the next few weeks, before rolling out services nationwide next year.

- Egypt’s Orascom Telecom has said it will consider bidding for one of the two triple-play licences that the government recently revealed it would offer early next year, Reuters reports. Orascom’s chief operating officer, Khaled Bichara, said of the company’s plans: ‘We believe we are really well positioned. They [the government] want the local players and international experience, and we believe we won't need to go out of the group to make the bid’. The bid document for the licence is expected to be published by mid-October, with bids due by 12 January 2010.

- Orange Business Services, France Telecom Group's division for worldwide enterprise services has enhanced its next-generation converged IP network in the Middle East & Africa (MEA) to deliver greater coverage, capacity, performance and resilience to its multinational enterprise customers.

- MTN, Glomobile, Etisalat and Zain have been disqualified from buying the mobile arm of NITEL (M-Tel) in the on-going effort to sell the Nigerian carrier. Director-General of the Bureau of Public Enterprises, BPE, Dr. Christopher Anyanwu said, “Nonetheless, NCC pointed out that any of the local operating firms can purchase NITEL alone without M-TEL and SAT3”.

- Kuwait’s Zain Group is not concerned that a lawsuit filed by South Africa’s Econet Wireless pertaining to the company’s 2006 purchase of Nigerian operator Vee Networks (now Zain Nigeria) will derail plans to sell a 46% stake in the group to Indian investors, Bloomberg reports, citing Kuwaiti daily Al-Rai. ‘The lawsuit is old and dates back to before 2006,’ Zain CEO Saad al- Barrak told the newspaper, before adding that Econet had lost similar lawsuits filed against Zain in British courts over the last four years.

- The January summit of the African Union (AU) Commission will focus on information and communication technology in Africa.

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ISSUE NO 476 INTERNET NEWS

INDEX

Telecom Egypt launches first commercial FTTH service

Telecom Egypt has announced the launch of its first Fiber-To-The-Home (FTTH) implementation in Egypt in Cairo Suburb area of Qatamiya.

Mr. Tarek Tantawy, Chief Executive Officer and Managing Director of Telecom Egypt commented that "Telecom Egypt is adopting a new strategy to roll out fiber access networks in areas with demand for high speed broadband access that reaches 70 Megabits/Sec. By connecting residential customers with a direct fiber connection we can offer Triple Play services through one single high speed connection. This represents a breakthrough in access networks in Egypt."

"We have started implementing FTTx access networks in the rising new suburbs around Cairo and Alexandria, and today we are celebrating our first Triple Play customer in Qatamiya area" comments Mr. Tantawy. He mentioned that the strategy of the company in the future is to continue rolling TE's fiber access networks to cater for the needs of high end and business customers.

Telecom Egypt's Chief Commercial Officer, Emad Elazhary added that optical access networks open a lot of opportunities to provide customers with integrated Telecom services targeting the "Smart Home" services that the company announced last year. These services include basic services like Voice, Data and IPTV in one bundle. These services are offered to customers in coordination with TE Data and utilizing existing content contracts such those with ART, the leading Arabic content provider. In addition customers can enjoy additional value added services that exist today over TE Live portal like Family Internet services, as well as online gaming.

Ahmed Ossama, TE Data's Managing Director added that "FTTx access networks is the ultimate in broadband access which avails additional services to customers in areas of e-education and e-health as well as the basic triple play services. Possibilities of new revenue streams include video conferencing services as well as security services. Additionally customers can control their home electrical appliances remotely making life easier and more secure."

With the Cables Now in Uganda, What Next?

Two high-capacity submarine cables have landed on the Kenya and Dar es Saalam beaches, but it seems only half of the region's communication problem is fixed.

Industry players say the landing of the cables might not save anything just yet, unless leveraging of the cables to get connectivity to the user is taken care of.

Many are of the view that this can be achieved fast if telecommunication companies and Internet Service Providers (ISP's) come together to build their already existing infrastructure and therefore extend the cables from their landing points to other land locked East African countries.

It is against this backdrop that major telecommunication companies from Uganda, Rwanda, Tanzania, Burundi and Kenya have formed a committee known as The East African Backhaul System (EABs) committee.

The committee aims at connecting end users to affordable and fast internet as soon as it finishes laying the cables and connecting the five East African countries.

According to the EABs Chairman and UTL representative, Mr Donald Nyakairu, the fibre backhaul links that will connect Uganda to the cable landing stations at Mombasa and Dar-es-Salaam are either in place or at advanced levels of construction.

MTN's EABs representative John Bagiire admitted that although construction is at advanced stages, business models for commercial access to this infrastructure and rates that lead to optimal utilisation of the submarine cable capacity to deliver good value to the end users is lacking.

"This is the reason why different approaches are being taken to address this issue with individual operators taking initiatives to access the submarine cable capacity now. However, it is unlikely to be optimal either from a cost or quality perspective," Mr Bagiire told Business Power recently.

"With the international holdup now out of the way and with several parties having capacity in the two new cable systems, Teams and Seacom, and with EASSy arriving next year, it is expected that a competitive market platform will be formed, allowing for connectivity at a reasonable price."

Capacity from Seacom is already available in Uganda while capacity from Teams is expected any time. However, the amount, option and cost of backhaul capacity will be such as to make this capacity more expensive in the initial six to 12 months than it should.

It is expected that the biggest content services open to consumers with the new broadband abundance will be the internet, the World Wide Web and other free content will be accessed for social, commercial and developmental needs like Face Book. Education, health and other sectors will greatly benefit.

Networking over the internet for business and social purposes will be enhanced and grow enormously.

"There will also be opportunity for accessing chargeable content provided by what some have called Internet Content Providers. Ugandans will have the opportunity to enter the content business more strongly - it is unlikely to be a one-way street. This local content will also be available to Ugandan users," Mr Bagiire says.

Terrestrial fibre backbones are already in place in Kenya, Uganda and Rwanda. Using these links, it is possible now, to have a seamless backhaul link from Kigali to Mombasa. What is not yet in place is a workable commercial model that allows linking the adjacent national backbone networks into a single backhaul link that serves all the five East African Community countries.

"Such a link will need to provide redundant connection and be established at as low a cost as possible. Only a collaborative effort across the five East African countries can deliver on all these objectives. EABs, which will be jointly owned by operators in the five countries, will fill this gap very well," Mr Bagiire said.

Local telecommunication companies who are members of the EABs committee are hoping to use either the Telkom Kenya cable or the Kenya Data Network (KDN) cable or both.

In Uganda, both UTL and MTN will avail parts of their transmission networks, as will Rwandatel and MTN in Rwanda. In Burundi, the operators, under a project championed by the government of Burundi, are collaborating with the support of the World Bank to build a national backbone, and two fibres along; parts of this shall be contributed to form the Burundi EABs segment.

(Source: The Monitor)

South Africa's broadband market is at a watershed, says report

The South African broadband market has shown consistently significant growth rates of over 30 percent in the last two years, and according to Frost & Sullivan, this positive trend is expected to continue for the next two years.

Despite the expense of network infrastructure roll-out, the country's top operators are still engaged in the crucial activity of increasing broadband penetration in South Africa, the company has said in its latest study, adding that there are immense opportunities for Internet service providers (ISPs) and vendors because all electronic communications network services (ECNS) license holders are currently permitted to self-provision.

A new analysis released today from Frost & Sullivan, South African Broadband Market, finds that the market earned revenues of over $291.6 million in 2008 and estimates this to reach $1.62 billion in 2015.

The vertical sectors covered in this study are: retail, financial services, tourism, government and healthcare, while the technologies covered are: asymmetric digital subscriber line (ADSL), worldwide interoperability for microwave access (WiMAX), mobile, wireless fidelity (WiFi), satellite and iBurst.

"The introduction of undersea cables and the anticipation that prices will be lowered due to new competition has resulted in greater optimism about broadband services with higher rates of uptake," said Frost & Sullivan Senior Industry Analyst Lindsey Mc Donald. "Operators have decided to provide better value to their clients and this trend is likely to intensify over the next three years."

However, the market's ability to capitalise on the potential connectivity of undersea cables depends on the level of national infrastructure, accoding to the analysis, further pointing that, unfortunately, the required quality of infrastructure is still lacking in South Africa, with some operators already working towards addressing this challenge.

"A lack of sufficient infrastructure is the main threat to the growth of broadband in the country," explains Mc Donald. "Most people utilise mobile technology which is still very expensive and out of the reach of many people in the country."

ISPs should understand the nature of their customer base. Engaging in customer segmentation processes will help them understand who their clients actually are and also reveal the best way, in which to offer services to these clients.

The South African Broadband Market is part of the Communications Services Growth Partnership Services programme, which also includes research in the following markets: Angolan Mobile Market, South African Contact Centre Technologies Market, Sub Saharan African CDMA Markets, and Mozambique Mobile Communications Market, by Frost & Sullivan.

(Source: Afrol)

In brief:

- While opening the Broadband Experience exhibition in South Africa, Brian Herlihy, CEO of SEACOM revealed that of the total 1.28Tb/s potential capacity of the cable, “about 5% to 6%” is currently being utilised. This translates into around 70 Gbps.

- Botswana Telecommunication Corporation (BTC) will invest US$75 million (P504 million) in the West African Cable System (WACS). BTC Group CEO Thapelo Lippe said that his company and Telcom Namibia will both contribute equally as second tiers while regional giants like Vodacom, MTN, Neotel and Zain will contribute US$100 million (approximately P672 million) each for the development of the undersea cable that will link London with Africa.

- MainOne Cable Company has announced conclusion of the shore-end laying of its undersea fibre optic cables in Lagos, Nigeria and Accra, Ghana respectively. This is coming about two weeks after Glo also landed its own cable in Alfa beach Lagos Nigeria and subsequently in Ghana, last week.

- Rwanda’s The Minister of Information and Communication Technology (ICT), Aggrey Awori, has halted the process of procuring a firm to manage the National Data Transmission Backbone Infrastructure and E-Government Infrastructure (NBI/EGI) project. According Mr Awori, the reasons for halting the process is based on the need for the involvement of National Information Technology Authority - Uganda (NITA-U).

- One of the controversial winners of the 2.3GHz license in the just concluded auction by the Nigerian Communications Commission (NCC), Mobitel Nigeria has its selected Alvarion to build the company's $7 million broadband network in Nigeria. Mobitel will begin to offer voice and high-bandwidth data services in the key cities of Lagos , Port-Harcourt, Warri and Abuja. During the second phase of the project, Mobitel will expand coverage to 18 other states in the country, including Kano, Kaduna , Oyo and Edo.

- Telemedia Group has launched Telemigrants Mali, an innovative pilot program designed to provide a continuous high speed Internet between two remote villages Kersiniane and Yelimane and native migrants based in Montreuil, in the outskirts of Paris. This program is innovative because it is a real mutualist digital infrastructure for a sustainable solidarity development. Money from the diaspora is in effect paying for the implementation of connectivity in their village of origin.

- Tanzania’s telecom operator Sasatel has embarked on a drive to establish a foothold in Internet market by targeting small and medium enterprises (SMEs), which comprise the biggest chunk of the corporate sector. The telecoms company, which recently came up with the cheapest internet connection charges, is offering SMEs free internet connection for a week.

- In Namibia, the Agra Cooperative has started a new Internet service by offering livestock auctions online where bidders can buy animals at the click of a mouse - a first for Namibia. The Agra e-Auction service was launched last week and will save buyers and sellers time and money, not having to drive to and from auctions.

- Orange Uganda has introduced mobile internet services in the market. Orange will introduce the service powered by its Third Generation (3G) platform and a wireless mobile modem for Shs350, 000. The modem will come in handy with three months of unlimited internet access, according to information from Terp, the firm's external communications partner.

- An Internet service linking African parliaments will be created to enable MPs around the continent to share oversight experiences and views on matters of governance, says the speaker of the Egyptian parliament, Dr Ahmed Fathi Sorour. Sorour was attending the first African Parliamentary Speakers' Conference, organised by the Pan- African Parliament (PAP) in Midrand, Johannesburg, last week.

- Teraco Data Environments, South Africa’s first provider of vendor neutral data centres, announced today that it has become home to an open and public peering facility for network operators in this country, NAPAfrica. Initiated by a number of major industry players, NAPAfrica provides for a carrier neutral Layer 2 Internet exchange point (IXP) in the Southern African region, providing high-capacity multimegabit links (from Fast Ethernet to Gigabit Ethernet) between the various global and local network operators.

- Though various African countries monitor and restrict Internet access in some way, Ethiopia is the only country with a technical filtering regime in the sub-Saharan region, according to a report by OpenNet Initiative, a collaborative partnership between Harvard, Toronto, Cambridge and Oxford universities.

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The long awaited first part of Balancing Act's African Internet Country Market Profiles is now out and covers 22 countries in West Africa. It also contains a summary overview of the internet in these countries and a look at the coming legalisation of VoIP in West Africa: who will be the winners and losers?

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ISSUE NO 476 COMPUTER NEWS

INDEX

Morocco targets wider ICT use

Morocco recently adopted a national digital strategy aimed at expanding the use of information and communications technology (ICT) by the public, the government and businesses by 2013.

In the presence of King Mohammed VI, the government and banking institutions agreed on Saturday (October 10th) to allocate 5.2 billion dirhams for the "Maroc Numeric 2013" initiative.

"One aim of the strategy is to bring the government closer to the public and businesses," Trade and Industry Minister Ahmed Reda Chami said at the signing ceremony in Rabat.

"The government will ensure that the services offered in Morocco are the same as those offered internationally," Chami added.

Businesses have hailed the initiative, which targets adding 27 million dirhams to Morocco's GDP. "The strategy is based on a high-quality plan that will create jobs and help small and medium-sized businesses modernise," the president of the General Confederation of Moroccan Companies, Mohamed Horani, told Magharebia.

Central to the strategy are efforts to ensure that one in three Moroccan families, rather than the present one in 10, will have a high-speed Internet connection by 2013.

The new strategy also prioritises giving young people Internet access. To this end, some 400 computer centres will be built in low-income districts and remote areas.

"One hundred centres will be set up in partnership with the Ministry of Youth and Sport, and the other 300 will be set up with the help of other partners including the national postage company, Poste du Maroc," the head of the National Telecommunications Regulation Agency, Azeddine El Montassir Billah, told Magharebia.

"All youth clubs will provide Internet access so that young people can get online free of charge," Minister of Youth and Sport Moncef Belkhyat said at the signing ceremony, adding that more than 80,000 engineering students at technical schools "will be given laptops with Internet access".

Economic development is a key goal of the strategy. According to government forecasts, "Maroc Numeric 2013" will create 26,000 jobs.

In this regard, efforts will be made to encourage small and medium-sized businesses to use ICT by granting subsidies of nearly 60% for purchases of sector-specific IT solutions. The new efforts are in accordance with the government's ongoing support for innovation in the field through a national fund for ICT development. The fund, with an initial allocation of 100 million dirhams, was created last fall in partnership with the Association of Information Technology Professionals.

"Technology is of fundamental importance in modernising and developing the national economy and also making it more attractive," Minister of Economy and Finance Salaheddine Mezouar said during Saturday's signing ceremony.

While many Moroccans welcomed the new strategy, some are tempering their enthusiasm with calls for a greater volume of Internet content.

"There are few Moroccan websites, and Internet users need easy access to local information from Moroccan sources," Hafid Karimi, told Magharebia. "I hope the strategy will also deal with this aspect. The development of the e-government strategy will go some of the way towards achieving this goal. The private sector also needs to be given encouragement."

(Source: Magharebia.com)

Africa's Largest ICT Mall to Be Built in Abuja

The Management of the Computerize Nigeria Project (CNP) will launch the biggest ICT Mall in Africa, in Abuja, in the first quarter of 2010.

This ambitious project which commenced last year, and is nearing completion, is designed to sustain the promotion of Digital knowledge Democracy as an ingredient in structuring Nigeria as a knowledge driven nation in the information and knowledge century.

The Abuja ICT Mall will place Africa on the digital map of the world following the trail blazed by Mecer of South Africa and Zinox of Nigeria.

This was revealed by the Corporate Communications Adviser of the CNP, Mr. Echika Ezuka in an interview with Newsmen in Lagos.

He said the integrated ICT Mall shall host the best ICT product brands in the world in direct partnership with developers, manufacturers and other OEMs.

This Mall will also host the largest integrated ICT Support Centre in Middle East and Africa so that ICT products users can get instant support for faulty products or upgrades without delay. According to Mr. Ezuka, this mall will reduce the total cost of the ownership of different ICT products in Nigeria as all details are being finalized with different ICT products manufacturers.

The over six floor digital mansion will also be the main communication and knowledge centre in Africa and is expected to host an ultra modern digital auditorium and a precision knowledge research laboratory which will give impetus to the promise of the Founder of Computerize Nigeria Project -Mr. Leo Stan Ekeh to place Nigeria solidly on the global digital map.

(Source: Daily Trust)

Apple Ishop to Hit Market in Ghana

In a bid to meet the market demand of Apple products, a US based computer solutions provider has opened a retail store in Accra, making available its world class products and services, as well as solutions to clients.

Ishop is located at the Accra Mall and offers the entire product line of Apple, such as Ipods, Mac books and Imacs. The facility also provides training for people willing to learn the power of Mac, as well as the entire line of Imacs, for people to browse the internet using Apple's platform.

The Chief Executive Officer (CEO) of Apple Ishop, Mr. Fatogoma Silue noted that Africa would benefit from the most exciting and valuable brand in the world, which is also a symbol of quality, simplicity and innovation that runs from store design to customer service.

He announced that Apple is in partnership with Vodafone Ghana for the provision of reliable, fast and high speed 'always-on' broadband internet access to its internet café. He applauded Vodafon's efficient internet connection over the years, which has proven to be indispensable partner for Apple Africa.

On his part, Mr. Ashraf El Kordy, Team Manager in charge of fixed lines and Broadband service, Vodafone Ghana, expressed his company's honour to be associated with Apple, and assured clients of an efficient broadband internet service to provide Ghanaian market premium on great customer experience.

The service, which is being introduced in the country is already being operated in South Africa, Kenya and Egypt. It would be recalled that in 2008 and 2009, Apple invested heavily in Europe, the Middle East and Africa providing support for every Apple user.

(Source: The Chronicle)

In Brief:

- Rwanda’s Director General of National Post Office, Celestin Kayitare, has announced that Post Office clients will be able to access information about registered mails on the institution's website, through electronic tracking before end of year.

- Uganda's first information communication technology software cluster has concluded its second meeting in Kampala. The meeting promised to make the city recognised as a software development hub in the Great Lakes region, by the year 2015. Since its inception last year, the cluster has spearheaded initiatives in industrial design, network administration, development and management of information systems, e-learning systems, databases, online marketing and mobile applications.

ISSUE NO 476ON THE MONEY

INDEX

African Telecoms Investment to Reach US$141.1 Billion by 2013

The African continent continues to attract substantial investments into its telecommunications markets, with the combined fixed and mobile cumulative capex for Africa since the Year 2000 expected to grow from US$76.1 billion in 2008 to US$141.1 billion by 2013, adding cumulative investments of US$68 billion in the period.

Fezekile Mashinini, telecoms analyst at BMI-Techknowledge (BMI-T) and author of the report behind the figures says that the mobile sector is the source of growth, with an estimated 68.5% (US$98.8 billion) of all cumulative investment attributable to this sector as fixed-mobile substitution continues and mobile operators drive infrastructure investments to keep on track with increasing customer numbers.

Africa recorded a year-on-year growth of 31.1%, reaching an estimated 405 million subscribers, with the fixed networks accounting for 7.5%. The mobile networks unprecedented growth over the past few years continued, with an estimated 94 million new subscribers being added during 2008, to end the year at an estimated 375 million subscribers. BMI-T's forecast for the combined fixed and mobile subscriber market in Africa has placed the total number of subscribers at 782 million by 2013, representing a 14.1% CAGR.

Even though the mobile sector is currently leading the charge in terms of investments, the fixed network sector will also witness heightened investments due mainly to the landing of various under-sea cables. 2009 has witnessed the landing of under-sea fibre cables such as SEACOM, Low Indian Ocean Network (LION), The East African Marine System (TEAMS), and most recently Globacom's "Glo 1" cable. The expected spending by operators on terrestrial links to bring the bandwidth inland is expected to run into millions of dollars.

(Source: Cellular News)

Safaricom Issues U.S.$66 Million Corporate Bond in Kenya

Kenya's largest telecoms firm, Safaricom announced a $66.6 million (KSh5 billion) bond to the Kenyan market, part of an extensive capital-raising initiative the company is implementing.

The release of the medium term notes follows the approval of Safaricom's $160 million (KSh12 billion) bond programme by Kenya's Capital Markets Authority (CMA). The $66.6 million represents the first tranche.

The process ends an 11-month hunt for funding by the mobile firm, which initially indicated that it was searching for cash to fuel its expansion plans in December last year.

According to the issue documents, the offer closes on October 29, while the allocation will be a day later. The notes have been divided into two options: one with a fixed rate and the other with a floating rate.

The fixed rate notes will carry a coupon rate of 12.25% per year, while the floating rate notes' pricing will be pegged at 185 basis points above the most recent published rate for the 182-day Treasury Bill.

"We are extremely bullish about this bond. The conditions and pricing are right and we are confident the market will endorse our overall strategy by taking it up. Safaricom will be using the funding for general corporate capital purposes, including the rollout of some critical projects," said Safaricom CEO Michael Joseph.

The issue has been put together by Barclays Bank of Kenya Limited and Barclays Financial Services Limited in association with Absa Capital, a division of Absa Bank Limited; CFC Stanbic Bank and CFC Stanbic Financial Services as arrangers. The joint sponsoring stockbrokers are CFC Stanbic Financial Services and Kestrel Capital (East Africa) Limited.

The reporting accountants on the issue is PricewaterhouseCoopers, while the transaction's legal counsel is Kaplan & Stratton. Legal counsel to Safaricom on the programme is being provided by Daly & Figgis, the fiscal and calculation agent is CFC Stanbic Bank, while the registrar is Livingstone Registrars.

With the issue of the $66.6 million (KSh5 billion) medium term notes, Safaricom will be further entrenching a long-standing relationship with the Kenyan corporate bond market. In 2001, the listed telecoms operator launched a bond for $53.3 (KSh4 billion), the principal for which was repaid between September 2003 and March 2006.

Formed at the turn of the decade as part of the liberalization of Kenya's telecoms sector as a joint venture between global GSM leader Vodafone of the UK and the government of Kenya, Safaricom has firmly established its credentials as a regional leader, spawning a virtual telecoms revolution in Kenya. With a gross profit Sh15 billion and revenue totalling $200 million (KSh70 billion) during its last financial year, Safaricom is the region's most profitable company. Last year, it successfully listed on the Nairobi Stock Exchange through a landmark initial public offering (IPO) and actively trades on the commercials counter. Growing from its cradle in mobile voice services, Safaricom has evolved into a total telecoms company.

The firm, which has a subscriber base of over 14 million, offers all telecoms services under one roof: mobile and fixed voice and data services on a variety of platforms: Kenya's widest 3G network; a growing fibre optic cable footprint and WIMAX technology.

(Source: East African Business Week)

IFC Leads $250 Million Investment in Shared Tower Communications Infrastructure in Nigeria

IFC, a member of the World Bank Group, is investing $100 million in Helios Towers Nigeria Ltd as part of a $250 million capital injection that will help the company increase its network to 2,000 sites nationwide and afford Nigerian people the many benefits of improved communications.

IFC disbursed an initial $50 million in mezzanine financing on August 21, and on September 30, signed an agreement to lend an additional $50 million in senior debt. IFC also is arranging $150 million in senior debt from a number of commercial and development finance institutions.

HTN builds and maintains a network of telecommunications towers and leases space on these towers to wireless telecommunications services providers. The increased coverage will help wireless operators roll out their services more economically and enable the extension of affordable mobile services to semi-urban and rural areas.

“IFC’s long-term investment enabled us to leverage additional funding from capital markets, which is often not readily accessible for frontier markets,” said Kayode Akinola, HTN Director and Investment Principal at Helios Investment Partners. “Nigeria remains one of the most high-growth telecom markets worldwide and wireless infrastructure sharing will continue to play a critical role in supporting operators in efficiently providing services to customers.”

Nigeria’s telecommunications sector has developed significantly in recent years, but teledensity at 43 percent indicates there still is potential for growth in the market. With the expansion of the HTN network, operators will be able to outsource non-core activities and passive infrastructure, allowing them to focus on further developing their products and services.

“Affordable mobile telecommunications enable access to knowledge and services, innovation across sectors, and more efficient delivery of government and business services, all of which will contribute to economic growth and opportunity creation,” said Mohsen Khalil, IFC Director for Global Information and Communication Technologies. “IFC’s partnership with HTN will enable mobile operators to lower their operating costs and improve the quality and affordability of services, which will greatly benefit underserved consumers and businesses in Nigeria.”

South Africa’s Faritec targets profit

Faritec's new CEO has set himself the challenge of turning the loss-making company around by June next year.

CEO Fanie van Rensburg says the company should report a profit – however small – in the year to June 2010. He also expects the company to break even by the time it reports its half-year results to December. “I'm bullish, but I can see what is happening in the organisation.”

Van Rensburg concedes that he has set himself a difficult target. In its most recent results to June 2009, the company reported a slide in revenue from R1 billion, to R727 million, and operational losses led to a loss per share of 48.1c, compared with a gain of 11.3c in 2008.

The company said – at the time – that the disappointing results were due to a “rapid decline in sales” and its high cost structure. However, Van Rensburg says the company has restructured, and refocused. “If I can't get it to be profitable by the end of the year, I've missed something.”

In the next three to five years, Van Rensburg also expects the company to pay out a dividend – something it has not done since listing on the JSE in November 1998.

After a slew of resignations that left the company without a CEO and CFO, it has now also accomplished putting a management team in place. From 1 August, Arvind Gupta was appointed financial director and Van Rensburg was appointed to the helm of the company.

“It's been quite hectic,” says Van Rensburg. “Ten weeks sounds like a long time, but it has gone by like the last hour has.”

Shoden injected R20 million into Faritec earlier this year, for which it bought a 51% stake. Another R29 million was invested by shareholders after a rights offer. Together, these amounts gave the company the cash it needed to continue operating.

Since then, Faritec has shifted focus and is now concentrating on servicing the data centre market. Van Rensburg says it has also gotten out of low-margin businesses that were putting a strain on cash flow.

(Source: ITWeb)

In brief:

- Telecom investments in Nigeria has increased to over US$18 billion within the last eight years on account of predictive regulatory environment and supportive government for a deregulated telecom industry. According to Chief Executive of the Nigerian Communications Commission (NCC), Engr. Ernest Ndukwe, the said the current investment figure is made up of about US$12 billon from foreign direct investment while the balance is from investments made within the country since 2001.

­ MTN's Ugandan subsidiary has raised US$100 million in debt to fund the expansion of its network. Isaac Nsereko, chief marketing officer at MTN confirmed the development to the Reuters news agency. Absa Capital, the investment banking arm of Absa Group was lead arranger of the syndicated loan. "We are using it to invest in the network, different sections of the network really," he told Reuters in a telephone interview.

- Datatec released interim results today, revealing a 21% decline in revenue from the comparable period last year. Operating profit before finance costs, depreciation and amortisation ("EBITDA") fell 38% and headline earnings per share were 72% lower at 4.9 US cents per share. The group's balance sheet however remained strong, with $318 million held in cash.

- The U.A.E.'s Emirates Telecommunications Corp., or Etisalat, said it is close to finalizing a bond program aimed at financing foreign acquisitions and expanding into new markets. The bond program - under which the company will be able to sell conventional bonds and Islamic bonds, or sukuk - is in line with "foreign expansion and acquisition activities Etisalat is carrying out in regional and global markets," the company said in an emailed statement.

Telecoms, Rates, Offers and Coverage (briefs)

- Nigeria’s CDMA operator, Starcomms, has slashed its international tariff from twelve naira (N12.00k) to ten (N10.00k) naira in some destinations, and from eighteen (N18.00k) naira to ten (N10.00k) naira. The tariff covers top destinations across the world like the United States of America, China, Canada and the United Kingdom. Others include India and Hong Kong.

- Mobile operator, Orange Uganda has appointed technology firm Alcatel-Lucent to maintain and repair its network, in a move to dramatically reduce their network maintenance costs and improve operating efficiencies.

- Botswana Telecommunication Corporation's (BTC) mobile operator, be MOBILE, has doubled its customer base in the past five months to reach 200, 000 active users of its network. Be Mobile was launched in October 2008.

- MTN Uganda is to start international money transfer services, the chief marketing officer, Isaac Nsereko, has said. The development not only shifts the competition terrain to a geographical level, but ushers the telecoms into one of the most capitalised industries, international remittances. Uganda's remittances from abroad were $724m in 2008, down from $786m in 2007 as a result of the global economic crisis.

- Telkom Kenya is planning to launch a triple play service that supports voice, data and television, as it repositions itself in the increasingly competitive telecoms environment.

- Worried by the difficulties faced by subscribers in recharging their phones in recent times, MTN Nigeria has explained and apologised to affected subscribers, blaming the situation on technical hitches.

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ISSUE NO 476 WEB AND MOBILE DATA NEWS

INDEX

M-banking takes root in Uganda

He used to keep his daily earnings in the house until June when he opened a mobile money account with an aim of developing a savings culture.

Mr Peter Ddumba, a Boda Boda cyclist in Luzira, whose mobile money account has a balance of about Shs145, 000 said he could not afford keeping his money in the bank because of the high charges involved in opening and maintaining a bank account.

"I feared opening a bank account because I didn't have the money to pay in bank charges," said Mr Ddumba adding: "With mobile money, I don't need to open a bank account any more now that I can keep, send and receive money via my phone at a very low cost."

With the increasing number of people opting for the new platform, the market for money transfer services seems to be tilting from the conventional transfer systems to the new high speed mobile money service.

Barely a year in the market, Mobile Money, which rides on telecommunications service provider MTN's network has about 200, 000 registered users who move an estimated Shs6.8 billion monthly.

Zain, the only other telecom operator with money transfer platform, has about 1.2 million customers and it's estimated that it carries out over 10, 000 active transactions on a daily basis using its 'Zap' facility, which was launched in June.

The old transfer institutions including Posta Uganda's EMS, Moneygram and Western Union declined to comment saying that revealing company information would make them unprofessional.

"I can't reveal that information because our competitors would know a lot about us and that just can not work," said Mr Deo Kateizi, the head of Western Union at Centenary Bank.

The swift change in popularity is mainly attributed to the fast (almost instantaneous), relatively lower cost transactions, convenience and enhanced security of the new platform.

"I always keep money on my Zap account so that if I need to send someone money, I don't have to close my shop to go in the bank, I just Zap the money," said Mr Moses Turyasingura, a shopkeeper on Luwum Street.

To avoid money laundering, a phone message is always received by both the sender and the recipient confirming the transaction.

Mobile money registered users require Shs800 to send any amount of money irrespective of the destination and between Shs700 and Shs9,000 to receive cash depending on the amount.

The non-registered users and those on other networks pay upon receiving a withdrawing charge, which varies between Shs1,000 and Shs19, 000.

Zap subscribers pay a flat fee of Shs250 to send and a similar amount to withdraw. None-registered users pay between Shs200 and Shs2, 000 for sending and Shs1, 000 and Shs5, 000 to withdraw.

That means that one using the new platform would be able to save more than 60 per cent of what he would have spent using the old technology.

Posta Uganda charges five per cent of the total amount of money one is sending as Express Mail Service (EMS) charge and Shs4000 as postage fee.

Western Union charges range between Shs5,000 and Shs35,000 depending on the amount to be sent and the destination yet Moneygram charges between Shs3,000 and Shs30,000.

Both Moneygram and Western Union charge only the sender.

Banks, which provide numerous money transfer service including cheque payments, card payments, direct debits and wire transfers charge between Shs2,000 and Shs25,000 depending on the bank, the transfer service required, amount to be transferred and destination.

In an interview with Business Power, MTN's Sales Manager Junior Kwebiiha said the company targets about half a million people at the end of the year and close to 2 million by the end 2010.

Zain's Marketing and Mobile Data Manager George Buza said the company's target is to have everybody in the country appreciate the service and join the existing 1.2 million subscribers in using the facility.

Unlike Mobile Money that currently offers only money and airtime transfers, Zap is a mobile commercial facility that offers a range of mobile commerce services including money transfer, mobile airtime transfer, merchandising and mobile banking.

With Mobile Money, a phone acts as a bank account and at the same time as an ATM machine to enable subscribers have access to their money whenever need arises.

Unlike EMS that takes two to three days before reaching the final destination, mobile money's process is as instantaneous as receiving a text message.

For convenience and swift money transfer, Zain sealed an agreement with Western Union to increase accessibility of Zap services by Zap customers at any Western Union agent location country wide.

Mr Buza said: "Ugandans living abroad will now be able to send and receive money through Zap with our collaboration with Western Union."

Under the partnership, Western Union's commission payment is done by the sender.

Even as Zain is driving in that direction, MTN does not think of crossing borders any time soon citing differences in the regulatory frameworks of different countries.

"We are still analysing the legal implications since licenses to regulate the system are not the same," said Mr Kwebiiha adding; "even telecommunication in Uganda that has existed for years has just upgraded to using the same Sim Card across borders."

Mr Buza said in January 2010, schools that would have registered will be able to have parents pay fees using the facility.

Though the platform received positive response in the country, the providers say continued sensitisation is still needed if they are to bring all their network subscribers on board. MTN currently has over four million subscribers yet Zain has over 2.5 million.

In the meantime, the two telecoms only allow transactions that do not exceed Shs1 million and a similar amount as the maximum account balance.

(Source: The Monitor)

UN Refugee Agency Enters Facebook Contest to Win Funds for Displaced in Somalia

The United Nations refugee agency is harnessing the ever expanding world of cyberspace to raise funds, entering a challenge on a Facebook platform that could net $50,000 to help forcibly displaced Somalis.

Under "America's Giving Challenge" on Facebook's Causes application, the organization which inspires most people to donate to their cause over 30 days, regardless of the dollar amount, will receive the top prize of $50,000 - with a second prize worth $25,000 and $10,000 each for those placing third to seventh. The challenge, sponsored by The Case Foundation and Parade magazine, will also be giving out daily prizes.

"We will encourage our supporters on social media to help us raise money for the tens of thousands who have been forced from their homes in Somalia by donating and asking friends, family and colleagues to join in," UN High Commissioner for Refugees (UNHCR) fund-raising officer Suzanne Tremblay said.

Somalia has been plagued by violence for almost two decades and hundreds of thousands have fled overseas or sought refuge in other parts of their country. Each year, tens of thousands risk their lives by crossing the Gulf of Aden on smugglers' boats to reach Yemen.

UNHCR is asking donors to help displaced Somalis by contributing through its Gimme Shelter Cause on Facebook. This is linked to the Gimme Shelter campaign launched almost a year ago with the help of the United States actor Ben Affleck and the Rolling Stones to raise funds and awareness about the forcibly displaced around the world.

The Gimme Shelter Cause was launched on Facebook earlier this year and has raised almost $60,000 from 135,000 members in the past six months. UNHCR invites all Facebook members to contribute to the Gimme Shelter Cause and help the refugee agency be among the top non-profit causes on its application during October.

(Source: UN News)

ISSUE NO 476PEOPLE, EVENTS, JOBS, CONTRACTS

INDEX

People

- Internet Service Provider, Linkserve has announced the appointment of Mr. Victor Oisaghie as the company's new Managing Director.

- Clickatell and Mobile Money Africa announced the appointment of Clickatell’s Jeppe Dorff, VP of Mobile Financial Services, to the publication’s esteemed advisory board.

- Sindi Zilwa has resigned as a non-executive director, because of a conflict of interest, says Business Connexion (BCX). Zilwa, whose resignation was effective from 14 October, joined the board in April. She is CEO of auditing firm Nkonki and, in 1990, became the second black woman chartered accountant in SA.

Events

AITEC GHANA 2009

22-24 October 2009, International Conference Centre, Accra

In its 14th year as Ghana’s leading ICT event, AITEC Ghana this year will have the theme, “The expanding interface between technology and your lifestyle”, focusing on how subliminal technology in our daily work and home environment can benefit our lifestyles. This year’s expo will feature an ICT Learning Hub where Ghana’s ICT training institutions, along with suppliers of educational videos, distance learning, educational software, books, recruitment agencies and other training support products will be on show. The event will include the annual AITEC Ghana conference covering the following themes: Developing Outsourcing Service Excellence; Banking & Mobile Payments; The Impact of Fibre on West Africa’s Communications Sector; and ICT for the Oil & Gas Sector. For the full programme visit Aitec Africa’s website (www.aitecafrica.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

WORLD BANK DAY@ m-HEALTH SUMMIT

28 October 2009, 9am-5.30pm Washington DC time

Jointly sponsored by World Bank Group and UN Foundation/mHealth Alliance, in collaboration with FNIH, NIH and others, the World Bank Day @ mHealth Summit will raise awareness of the possibilities for mobile-enabled innovations for improving health care and health care outcomes in developing countries and seeks to:

· Contribute to putting m-health on the map of the mainstream public health agenda.

· explore options as to how to translate mHealth applications into measurable health outcomes.

· provide concrete examples of experience at the country level – what questions to ask, what to look for, what tools are available, and what are the policy implications for implementation.

· establish a solid basis for future collaboration and continued dialogue on mHealth

You can participate in this event online:

- watch live and recorded webcast at: www.worldbank.org/edevelopment/live (please register at: http://go.worldbank.org/BGZ8XU3KF0)

- follow the event on Social Media: Twitter, Blogs, LinkedIn, Facebook, Flickr etc

ComBIT AFRICA

2-4 November 2009, Lagoon Conference Centre, Victoria Island, Lagos

AITEC has been commissioned to organise this leading annual ICT expo hosted by the Association of Telecommunications Companies of Nigeria (ATCON). This year’s theme is “Setting the Pace for Africa’s ICT Transformation”

ComBIT Africa has it roots in Nigeria’s burgeoning telecommunications sector, having been the showcase for the industry since it was launched by ATCON 14 years ago (previously called NICOMM and changed to ComBIT Africa in 2008). The event has grown to be the country’s premier ICT event. In light of Nigeria’s leading regional role and to the era of rapid convergence, the event has been expanded to be Africa-wide in perspective, as well as covering the full spectrum of ICT technologies and strategies. It is ATCON’s mission to develop the event as the continent’s premier ICT industry event. For the full programme visit Aitec Africa’s website (www.aitecafrica.com)

3RD IT EDGE WEST AFRCIA CONVERGENCE FORUM

4 November 2009, International Conference Centre, Abuja, Nigeria

FORUM 2009 is free, sponsored by the Nigeria Communications Commission (NCC), the National Broadcasting Commission (NBC) and Ericsson.

This year, the event holds in Abuja for the first time since 2007 and drawing greater participation from the public and private sectors with the theme: Content & Policy Dynamics in the Converged Market.

For further information visit IT Edge News website www.itedgenews.com

BarCampAfrica UK 2009

7 November 2009, Vodafone HQ, London, UK

This event will bring together a group of talented entrepreneurs, technologist, charities, engineers, designers, bloggers, artists, with a passion for African development.

This is a Free Event and Tickets will be given on a first come first served basis.

For further information visit their website http://barcampafrica.com/uk

OUTSOURCING & CONTACT CENTRES EAST AFRICA

11-12 November 2009, Laico Regency Hotel, Nairobi

Now in its fourth year, this is East Africa’s leading BPO conference, gathering international outsourcing companies and buyers of outsourced services with local service providers to explore partnerships and business opportunities.

For the full programme visit Aitec Africa’s website (www.aitecafrica.com)

CUSTOMER SERVICE & CONTACT CENTRE WEST AFRICA

24-25 November 2009, Oriental Hotel, Lagos

This year’s theme is “Achieving excellence in Customer Service & Increasing Market Share during an Economic Downturn”, it is aimed at organisations in the region with established contact centres – and those planning to set up centres – to learn about world trends and latest developments in contact centre technologies and management strategies. Telecom operators, banks and other financial service companies, outsourcing operators, oil companies, public utilities and government departments will be the key target sectors. For the full programme visit Aitec Africa’s website (www.aitecafrica.com)

ONLINE EDUCA BERLIN 2009

2-4 December 2009, Berlin, Germany

Innovate, Share, Succeed – is the theme of OEB 2009. This year’s agenda will be about your learning innovations, your expertise and the great ideas that will lead your organisation, company or school to success.

For the full programme visit the organiser’s website

www.online-educa.com

TANCon AFRICA 2009

4-6 December 2009, Taia Resort, Freetown, Sierra Leone

This years conference will explore the theme "Virgin Territories: A New Market for Innovative Investment" through the use of case studies on Sierra Leone and other liberalizing African markets.

TANCon Africa is hosted by TAN a global non-profit organization that fosters entrepreneurship and technology among people of African descent. TAN was founded in Silicon Valley, California in 2004 to provide a support structure and network for entrepreneurs, aspiring entrepreneurs, and community leaders worldwide. This year, the TAN Africa conference is held in collaboration with the Internet Society of Sierra Leone and supported by the Ministry of Trade & Industry and Sierra Leone Import Export Promotion Agency (SLIEPA).

TANCon Africa 2009 will attract over 250 local and international attendees from the United States of America, South Africa, the United Kingdom, Nigeria, Ghana and the rest of the world. Conference participants will range from industry leaders and key decision makers of global financial institutions, fortune 500 companies in ICT, Finance, Agriculture, Tourism, Infrastructure, Social Entrepreneurship and Renewable Energy.

For more information on the conference, see the conference Web page at:

http://www.tanconf.org/.

Jobs and Opportunities

Marketing Director for Telecom Company - Kenya

The Marketing Director develops and directs the company's marketing activities and policies to ensure a strong and well positioned product portfolio and effective market approach.

Requirements:

15+ years relevant experience.

7+ years leadership experience.

Proven ability to analyse complex business issues and identify, design and implement effective practical recommendations.

IT literacy.

Able to operate in a performance driven organisation.

Culturally aware and adept at working across multiple geographies.

University Degree in business, sales or marketing.

Fluency in English and/or French.

For further information on this job or to apply visit the job agency’s posting

http://www.jobsoffborders.com/index.php?option=com_neorecruit&task=offer_view&id=40

Contracts

Neotel and Huawei – South Africa

Huawei, a provider of next generation telecoms network solutions for operators, has announced that it has been contracted to expand Neotel’s CDMA network. Huawei will provide a fourth generation base transceiver station (BTS) which can support the current EV-DO Rev A data service and also ensure future evolution to EV-DO Rev B or enhanced technologies such as Long Term Evolution (LTE), with Huawei’s leading SDR Technology.

Mobilel and Alvarion - Nigeria

One of the controversial winners of the 2.3GHz license in the just concluded auction by the Nigerian Communications Commission (NCC), Mobitel Nigeria has its selected Alvarion to build the company's $7 million broadband network in Nigeria. Mobitel will begin to offer voice and high-bandwidth data services in the key cities of Lagos , Port-Harcourt, Warri and Abuja. During the second phase of the project, Mobitel will expand coverage to 18 other states in the country, including Kano, Kaduna , Oyo and Edo.

INDEX

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This page last updated on October 26 2009.

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