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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 485 18th December 2009 UCC's Quality of Service survey shines a spotlight on MTN's challenges in a crowded marketThis week the Ugandan regulator UCC presented research findings on the quality of service levels for mobile, fixed and Internet services as part of its wider work on developing its responsiveness to consumers. There were worrying signs for the market’s top dog, MTN. The research was carried out by local company Knowledge Consulting and Russell Southwood listened to its presentation by Dr Tusu Tusubira. The research results presented an interesting paradox for although the market leader MTN does well amongst consumers (witness its leading position), it does so on the basis of not actually delivering the very things customers say they want. How so? At the back end of Tusubira’s presentation was a slide showing UCC’s own measures of performance standards: in each case, a lower number represents higher performance. On TCH congestion, the measure was set at 0.5, MTN achieved well outside the standard at 3.71. Others were closer but only utl was close to meeting it: Zain (0.97); Warid (0.79) and utl (0.53). On call drop rates, the standard was set at 2 and all operators were comfortably within the standard. On call block rates, the standard was set at 2 and all operators were comfortably within the standard except MTN at 3.33. As Tusubira argued, maybe if a standard is easily being met, it could improved upon. One of the key factors of consumer dissatisfaction identified below is network congestion and access to the network and on the basis of this factor alone, MTN should be losing customers. Operators know that if you are getting high levels of congestion on the network, it is clear that it is because you are not investing enough resources in the network. Therefore cynics might accuse MTN of simply taking the money and running. However it was clear from discussions after the workshop that MTN’s staff are very aware that although they have the winning position that they cannot expect to retain it unless they start making changes. Nevertheless the suspicion lingers that MTN is “sweating” its assets before re-investing. In terms of operators used by respondents, the breakdown was as follows: MTN (65%); utl (17%); Zain (10%); Warid (7%) and Orange (1%). Although this overstates MTN’s market position, it broadly mirrors the market positions of the players. On fixed lines, it was as follows: utl (61%) and MTN (31%). Fixed wireless phones were as follows: Zain (6%) and Warid and Orange (1% respectively). The majority of respondents said they chose their mobile provider on the basis of reputation (38.1%). Other factors included: flexibility and better customer support (26%); overall image (19.2%) and lastly, technical capability (14.6%). The puzzle here is that anyone will tell you whilst MTN has many virtues, its network quality of service (particularly in Kampala) is terrible. So the paradox is that you have customers who know that service quality is low but continue to rate highly the reputation of MTN. On the basis of a recent visit to Ghana, the same is true there. It says something about MTN’s success at creating positive “mindspace” through its media and sponsorship. Internet users among the respondents were significantly more concerned with reputation (48.7%). Other factors included: flexibility and customer support (34.5%); overall image (16.6%); and technical capability (16.6%). In both cases (mobile and Internet) consumers either don’t understand or don’t want to have to understand the technical capabilities upon which some of the key issues of reputation are settled. Indeed, the extent of network coverage rather than voice quality was the most important factor for respondents: network coverage (69.4%); voice quality (18%) and ease of access (9.7%). Here again, market leader MTN came last amongst those named as best for voice quality: Zain (26.5%), utl’s Mango (21.7%), Warid (17.2%) and MTN (16.5%). In terms of what made respondents dissatisfied, it was overwhelmingly network congestion and access to the network problems (53%). Other factors included: coverage levels (27%), call drops (11%) and voice quality (8%). Interestingly, more recent entrants have both lower on and off network prices. Ranked by off network call levels prices were as follows (all in Ugandan shillings): utl Vibe: On 8 vs Off 11; MTN On 7 vs Off 11; Zain 35s: On 8 vs Off 10; Warid: On 9 vs Off 9; and Orange On 8 vs Off 8. So there is clear price differentiation of the kind not found in less competitive markets and new entrants have to offer lower prices to enter. Although despite blanket poster coverage in Kampala, progress has been slow for Orange. Around 70% were happy with the information they were provided with: easy to find (75.6%); answers my questions (70.6%) and easy to understand 68.9%). But the number dropped to 61.1% when asked about the level of customer service when contacted. Also it’s clear that these numbers – particularly on information – would be lower if the education levels of the sample had reflected the national average. Just over a quarter of the survey’s respondents had more than one SIM card: 22% had 2 SIM cards; 3% had three SIM cards; 1% had more than 3 SIM cards. This reduces the actual level of individual subscribers (currently at around 9 million) by a factor of 0.75. These figures should be a wake up call to all mobile operators because it means that over a quarter of customers have no fundamental loyalty to a provider. They are simply playing the field in terms of using tactical marketing offers. And as we shall see below, this could be the Achilles heel for MTN. It also tells you that that the blizzard of tactical marketing promotions (“make me an offer I can’t understand”) are far from achieving customer loyalty and market share. Indeed there are no operators that currently have a pricing strategy that is worth the paper it is printed on. Furthermore new entrants like Orange might mouth the usual rhetoric about quality of service and value but actually they are competing on price to get a foothold. Levels of satisfaction with service are based upon expectations. If there are rising expectations, then consumers will be more demanding about what they want. When the mobile operators first rolled out, users were so grateful to have some service at last that its quality and their expectations of it were less important. However, as they negotiate the best deals in a crowded market, they continue to look for better value and will become more demanding. So why don’t very unhappy MTN customers desert in droves? Well, when you’ve got lots of friends, do you want to have to change your number and let everybody know you’ve done so? Probably not. Nevertheless, Warid is offering potential waverers the opportunity to tell all those they call regularly about their new number. UCC is considering number portability and if introduced, it will probably allow unhappy MTN users to churn to other providers. But the top dog is unlikely to lie down while this is happening so watch this space. The survey was based on 507 respondents from 11 districts and the socio-demographics of the respondents matched national statistics except the sample was both more educated and men were disproportionately represented: 63.9% men to 36.1% women.
Smile Telecom Targets Low Income Earners in UgandaThe launch of Smile Telecom, the seventh mobile telephone operator, has brought a new dimension to the telecom industry in Uganda. Smile is basing its business model on tapping into the average Ugandan who may not afford a mobile telephone handset or standard phone but may have some money to pay for a phone call. Industry watchers say if the model is followed to the letter, Smile Telecom will help to hook many poor people onto phone services. To use Smile services one does not need a mobile phone handset. Subscribers will be given PIN codes. "We shall have a truly transparent pricing. You shall only pay for what you have used. We shall charge sh5 per second across all networks," said Irene Charnley, the Smile Telecom Chief Executive Officer. Smile has invested over $30m into this market so far. According to Charnley, the firm has its own equipment, but is sharing masts and other infrastructure with WARID Telecom. Smile agents operating pay phones will be the link with customers in their communities. Clients with PIN codes can log into any of these phones and make calls. The Smile service was pioneered in KwaZulu Natal province, a very densely populated area in South Africa. Uganda is the first country to launch commercial services after the company got its first licence here. Smile is also seeking operating licences in Tanzania, South Africa, DR Congo and Nigeria. (Source: New Vision) Zimbabwe: Econet Speaks Out On Sweden SMS mailing sent to Zanu-PF Congress delegatesEconet Wireless Zimbabwe has said that it took the highly unusual step last week Thursday terminating its interconnection with a major Swedish telecoms operator after it was established that SMS messages on the just-ended Zanu-PF congress were being maliciously broadcast from that country into Zimbabwe. An Econet spokesperson said: "We received complaints to the effect that unsolicited messages were being received by some of our customers. We investigated and discovered that the messages were being sent from delegates at the conference, to a messaging centre in Sweden, which then transmitted them, as bulk SMS messages to our customers using a computer that could send to our number range”. "This was not only being directed to Econet, but also to other operators, but because we are the largest operator we received the majority of the messages. As the SMS messages were coming to us from Sweden through normal SMS channels, we asked the operator concerned to shut down the transmissions as they were in violation of interconnection agreements and they agreed to do so," said the spokesperson. He said it had co-operated fully with the authorities who are trying to establish the persons who sent the SMS messages, as well as those who paid for them in Sweden. "The persons who were sending messages to Sweden need to appreciate that it is unlawful in Zimbabwe. We also understand that the manner they did it may also have contravened Swedish law." Econet has advised that it is working on installing software that could immediately track and shutdown unauthorised bulk SMS broadcasts in future. "We are installing software that will identify and block, immediately, any bulk sms broadcasts, which we have not authorised in advance." Econet uses similar software to block, what is known as "re-filing", a practice in which illegal operators send bulk voice traffic. Defending the decision to block such bulk SMS transmissions, the spokesperson said: "There is no operator anywhere in the world, who allows an outside party to bombard its customers with sms messages, irrespective of the contents of the sms. It does not happen in Britain, or America, or Sweden. It is illegal, and an abuse of the system." (Source: The Herald) Telkom Kenya Begins 3G Trials and pleas for lower licence feeIn a Sh2 billion initial investment, Telkom Kenya has launched trials of its 3G service in Nairobi, but frets over the $25 million license fee, as being out of reach for growing networks. Speaking to the Daily Nation on Thursday, Telkom Kenya Chief Executive Officer, Mickael Ghossein said industry players are engaging with the Communications Commission of Kenya (CCK) to reduce the $25 million (Sh1.9 billion) license fee charged for 3G deployment. "Having already invested a substantial amount in this project, we would be happy to get a positive consideration from CCK to reduce the figure which may ultimately be a barrier to deepening communication services," Ghossein said. He says that the spectrum fees charged for a 3G service rollout is currently way too much for the firm and if they have to pay the fee, they will not be able to recoup it. Asked on what figure he will prefer, he said he would prefer the amount waived altogether. Tests will initially cover the city centre, Mombasa Road up to Jomo Kenyatta International Airport, Milimani area and Westlands. Infrastructure firm, Ericsson will provide an end-to-end support for the Orange 3G network including design, implementation, rollout, testing and operations support. Telkom Kenya joins Zain Kenya that recently said that it had plans to roll out its 3G service mid next year, but also insisted on the revision of the licence fees. According to Zain, the current licence fee is prohibitive and offers low returns on investment, a situation that is not conducive to the firm rolling out its 3G. Safaricom was first to roll out 3G services, obtaining a licence in October 2007 in the country in selected urban centres. It has around 1.65 million 3G customers. On this issue, Safaricom says all operators should be treated equally as it would not be fair on their part if others don't pay since Safaricom had already made this payment paid. Another operator, Essar Telkom, operating in Kenya under the Yu brand, is also said to be in plans to roll out the network. (Source: Daily Nation) Mobile Telephony Growth pace slows down in BotswanaThe mobile telephony market continues to grow albeit at a slightly slower pace due to the global economic recession. Figures availed by the Botswana Telecommunications Authority (BTA) show that the sector experienced a 26 percent growth between March 2008 and March 2009 compared to 29 percent in the previous period. The slower rate of growth is despite the entrance of the new player in the market, be Mobile. According to the BTA Annual Report for 2009, the mobile telephony market grew from 1.48 million in March 2008 to 1.87 million in March this year. "The subscribers included those of the new entrant, be Mobile, which started operations in May 2008," the report says. "However, teledensity reached 105 percent in March 2009 based on population estimates of 1,776, 494 compared with 85 percent recorded the previous year. The high teledensity is attributable to a relatively large number of customers with more than one SIM card." Prepaid subscribers continue to dominate the mobile market, accounting for 98 percent of the market as at March 2009, while post-paid subscribers held only 2 percent. On the other hand, fixed telephony continued to grow steadily, registering a slight increase of 1.35 percent in the period under review as the total number of subscribers increased from 142, 282 as at March 2008 to 144,95 as at March 2009. In terms of revenue, the mobile telephony market grew from around P1.4 billion recorded the last financial year to P1.8 billion as at the end of December 2008. Net profits for the mobile market have increased significantly, going from P433 million as at December 2007 to P568 million as at December 2008. Mobile operators continued to invest in the industry as shown by the increase in asset value, going from P1.1billion in December 2007 to P 1.7 billion in December 2008. However, the figures exclude BTC's be Mobile since its audited figures were not available at the time of reporting. On the financial performance of fixed line telephony, the country's fixed line monopoly the Botswana Telecommunications Corporation's (BTC) total assets increased to P1.634 billion as at March 2008 from P1.601 billion recorded for the same period last year.The report says BTA's revenue increased to P71.3 million from P61.1million reported last year. This is attributed to an increase in turnover-related fees and increased radio licence fees from Public Telecommunications Operators (PTOs), mainly as a result of licensing of additional spectrum for 3G and Wimax.Interest income increased from P4.09 million to P5.61 million while operating expenses increased by 4 percent to P56.5 million compared to P54.3 million in the previous year. The slight increase was due to decapitalisation of the Automated Spectrum Monitoring System (ASMS) equipment as a result of a refund of P5.7 million received from Botswana Unified Revenue Services (BURS) for witholding tax paid for the supply of ASMS equipment. Meanwhile, a recently conducted market study into the telecommunications and ICT sector in Botswana has revealed that 57 percent of the population owns a mobile phone and that this is projected to rise to 61 percent by 2014 with increases in coverage, wealth and changes in social norms. The 61 percent mobile population penetration would translate into 107 percent SIM card penetration once dual-SIMs is factored in. The study also shows that the Botswana Internet market is still in its infancy, with low Internet penetration and extremely low broadband penetration due to high computer prices, high cost of services, low IT literacy, lack of local Internet content, power supply problems and perceived low quality service. The number of wireless broadband subscribers using ISPs operating on unlicensed spectrum band has also increased. The study established that the international data gateway market in Botswana is not yet competitive. The ADSL access, leased lines and information data markets potentially need price regulation. (Source: Mmegi) In brief:- Banque Populaire du Rwanda (BPR) will introduce mobile banking next year, the bank's top official said. Ben Kalkman, BPR's CEO said that the new product will enable the bank's clients to access banking and financial services with the help of mobile phone telecommunication devices. He said this will enable BPR's clients to transfer, send and receive money from different places around the world in partnership with telecommunication firms. - Malawi’s third licensed mobile operator, Global Advanced Integrated Networks (GAIN), which intends to provide services under the G-Mobile banner, has admitted it will not be able to meet the 31 December 2009 deadline for the rollout of its network as stipulated by its licence, local daily The Business Times reports citing the firm’s director, Limbani Kalilani. Instead the company plans to request an extension to the deadline from the regulator, the Malawi Communications Regulatory Authority (MACRA), and will make up for the delay by combining rollout phases outlined by the concession. - Dangote Group, owners of Alheri Engineering Limited, the company granted Nigeria’s fourth licence for third generation (3G) services, have inked a deal to sell the N22.5billion ($150million) frequency spectrum to Etisalat Nigeria, the last entrant into the competitive Nigerian mobile market. The Tanzania Communications Regulatory Authority (TCRA) has warned prepay subscribers in the country that their SIM cards will be deactivated at the end of the year if they have not been registered with the mobile networks. - The Egyptian telecoms regulator, the National Telecom Regulatory Authority (NTRA) has announced that the deadline for bids for two geographically-restricted triple-play concessions has been pushed back by two months. According to Reuters, the NTRA has said that bids for the licences will now be due by 15 March 2010, while it also revealed that 18 interested parties had purchased bid documents so far. - Gabon’s newest mobile operator USAN Gabon, which operates under the Azur brand, resumed offering services to the public on 8 December following a three-week suspension ordered by the Ministry of Communications in order to comply with rules and regulations governing the country’s mobile sector.
Nigerian Outrage As NCC Awards Licence to South African Fibre cable FirmThe decision of the Nigeria Communications Commission (NCC) to grant a fibre optic cable landing licence to WACS - a South African promoted consortium - is causing outrage in the Nigerian telecoms sector, according to This Day because of the difficulties Nigerian cable companies have had in obtaining licences in South Africa. In all there are 11 members that form the consortium but the key members are South African: Angola Telecom, Broadband Infraco, Cable & Wireless, MTN, Portugal Telecom, Sotelco, Tata Communications, Telecom Namibia, Telkom SA, Togo Telecom and Vodacom. NCC's decision is being described as "insensitive" and "naïve" given the fact that the South African government only recently prevented a Nigerian-promoted company, Main One Cable Company, from landing its fibre optic cable in its territory on the basis that it is not owned by South Africans. Main One Cable is expected to land in Nigeria and Ghana by mid-2010 and has already acquired landing licences from Nigeria and Ghana. In the second phase of its operation, Main One cable is expected to extend to South Africa. Last year, the company applied to the South African Government for a landing licence in the country but the application was rejected because, according to the South African authorities, Main One Cable Company is owned by Nigerians and not South Africans. They then requested that Main One Cable Company should seek out South Africans who would be willing to acquire majority interest in the company. Promoters of Main One Cable Company were said to have reported this development to NCC and other key organs of government, including some National Assembly members. However, the NCC has finally granted a landing licence to WACS, fuelling disgust in the industry and calling to question whose economic interests the Nigerian regulatory body is serving. "Nigeria recently celebrated 10 years of bilateral trade with South Africa. I think it should be unilateral trade. There is nothing bilateral in a relationship where only one partner enjoys the benefits. Many Nigerian companies have been denied entry into South Africa, while others have been systematically muscled out of the country. Even South Africa's visa policy towards Nigeria would rank among the most stringent by any country and appears calculated to deny Nigerians entry into the country," an industry chief executive, who asked not to be named said. Reacting to the outrage, an NCC official told ThisDay that the laws of Nigeria allows 100 per cent ownership of companies operated by foreigners. According to this unnamed spokesperson, "As a matter of fact, the NIPC (Nigerian Investment Promotion Commission) website buttressed this point, by asserting that foreigners can own up to 100 per cent of any Nigerian business, except in the maritime sector." WACS was launched in 2008, with the objective of building a submarine cable from South Africa to West Africa. In inaugurating the cable in 2008, former South African President Thabo Mbeki stated that WACS would enable South Africa further consolidate its strategic leadership of the telecommunications sector in Africa. "Indeed, so strategic is this project to the South African Government that Infraco provides a 25 per cent subsidy to the four South African telecommunications operators on the consortium," another industry insider told ThisDay. "While one cannot say NCC should refuse WACS a landing licence, it makes sense that the Nigerian authorities should tell the South Africans to reciprocate the venture. That is the meaning of bilateral trade." Glo One, the intercontinental submarine cable being constructed by Glo, has already landed in Nigeria and Ghana and also has a licence in Côte d'Ivoire. (Source: This Day) Kigali City Wibro Network LaunchedKigali Wireless Broadband (WiBro) Network and the Kigali Metropolitan Network (KMN) were officially launched on Wednesday after two years of work on the infrastructure development. With the two projects, which were deployed by Korea Telecom (KT), Internet users in Kigali city will be able to enjoy data connectivity and VoIP services. WiBro is a wireless broadband Internet technology which allows people on the move to remain connected to the Web. KMN (Fibre Optic cable) is a large computer network that spans a metropolitan area. It also provides Internet connectivity for Local Area Networks (LANs) in a metropolitan region, and connects them to wider area networks like the Internet. During the projects unveiling ceremony, Rwanda Development Board's (RDB) new CEO, John Gara, said that a total of 46 government institutions are already enjoying the connectivity. "This technology will cater for data, voice and video transmission plus other value added services that the market may require," Gara explained. He also added that with this type of modern technology, connection to homes, businesses as well as the private sector will lead to access of affordable and reliable services. Government is targeting to have over 4 million Rwandans gain access to high speed Internet within the next two to three years, partly facilitated by the Rwf4.5 billion WiBro project. The KMN will increase broadband availability to more than 700 Rwandan institutions including schools, health-care centres and local government administrative centres. Korean Telecom was also contracted by the government in a related project to lay the national fibre-optic cable that will be linked to the undersea cable. RDB's Deputy CEO in charge of IT, Patrick Nyirishema, revealed that the project will be completed next year. "We are going to have a trial period for three months as we monitor the stability of the connection then we will go commercial," Nyirishema explained. The national backbone is expected to consist of a high-speed fibre-optic network that will link 36 main points in Rwanda's 30 districts, with a 2,300-kilometre cable running across the country. The Rwf22.7 billion project also includes training and managing the cable installation. KT was also contracted by the government to build one of Africa's safest storage facilities, the National Data Centre (NDC). First of its kind in Africa, the NDC will connect and allow secure access to information from government offices, health and education sectors as well as the socio-economic data of the country. The centre has capacity to back up the institutions' data on the Rwanda system and the commercial area will be provided for companies and NGOs that would wish to back up their information. The project had been expected be complete by December this year but the finalising time was extended and it not yet clear when it will be complete. (Source: The New Times) Rascom Plans to offer rates comparable to fibre with Ka-band capacityThe Executive Director for the Regional African Satelite Communication Organization (RASCOM) Dr. Jones A. Killimbe informed participants at a meeting in Banjul that plans to create a Pan-African internet Connectivity Network which will achieve the Africanization of the intra African traffic among countries and reduce the huge transit cost. He added that the RASCOM satellite is commercially operational and is the satellite providing connectivity to several countries in Africa to support the Pan-African e-network which is another continental initiative bringing together Africa through the A.U. "We consider the RASCOM mission as a long term commitment and as such, the launching of the first satellite marks the beginning of the next one." Dr. Killimbe said. He asserted that they are currently in the planning stage of the next satellite which will even support broad band connectivity with rates comparable to fibre within the Ka-bands. He said, "We therefore appeal to all the RASCOM member states, the African union, signatures, policy and regulatory authorities in Africa to continue providing the necessary support to RASCOM as we continue to fulfill the mission" (Source: Foroyaa) In brief:- The Director, Regulatory Affairs, Zain Nigeria, Osondu Nwokoro, has called on the Federal Government to grant fiscal incentives by way of tax holidays to international submarine cable access providers (ISCA) to soften the impact of the financial investments on their cash flows. He also called for transparency in the process of securing investors for SAT3 if and when it was unbundled Nitel. - In a move that partly affirms Rwanda's ICT developpment this year's National dialogue (Umushiyikirano) was streamed live online allowing Rwandans in the Diaspora and other foreigners interested in developments in Rwanda to follow its proceedings. The streaming which is the first of its kind, was followed closely by about 16,000 people across the globe. - Zambian power utility Zesco has announced that it will not hand over its fibre-optic network as part of the assets of telecommunication’s incumbent Zamtel, which is up for privatisation. Zesco has revealed that its fibre network, deployed at a cost of US$13m, will only be available to lease, and the power utility is in talks with Zamtel to be the targeted anchor customer to maximize the use of the facility. - According to Egypt’s Communications Minister, Tarek Kamel, the country is currently preparing a USD1 billion plan aimed at boosting internet penetration fourfold in the next four years, Reuters reports. Commenting on the proposals Kamel said: ‘Most of the investments...will primarily go in local investment in increasing the local capacity.’ It is understood that such local investment will be ploughed in to a combination of wireless and wired services covering both rural and urban areas, and will follow up the country’s investment in international broadband cable systems that is expected to at least double the capacity coming into the country from the current 60Gbps. The Minister also noted that the government is targeting a broadband penetration rate of 20% by end-2013, equivalent to enabling access to connections to around four million households. - Vizada Networks, an independent satellite communications provider, has signed an agreement through its subsidiary in Dar es Salaam, Tanzania, to connect to the Seacom submarine fibre optic cable which provides high-capacity bandwidth along the east coast of Africa. - Investors in the tourism sector have now access to an online library with information and Mozambican legislation, an initiative of the International Finance Corporation (IFC), the private sector arm of the World Bank. The website is intended to improve the amount of private investment in tourism, one of the areas that the government plans to increment, and also has the support of the Mozambican Tourism Ministry. Via the website (www.tourisminvest.org/Mozambique), potential investors have access to around 200 reports, studies, diagnoses, legislation and guides to investment, documents that had already been partly provided in CD format.
Public Workers to Undergo ICT Training in TanzaniaThe University of Dar es Salaam Computing Centre (UCC) last week launched a two-year project on capacity building on the effective use and management of information and communication technology in the public sector. The Sh500 million project will see at least 240 workers in the public sector receive ICT training. Office of the President (Public Management) permanent secretary George Yambesi said when launching the project that programme aimed to improve information management among public servants. He said that there was a need for appropriate capacity in ICT management and technical skills in some areas to efficiently support government initiatives. "Today we are witnessing the beginning of the two-year capacity building project that takes a step further to mainly focus on ICT management competencies and higher technical skills. Public sector officers must use this opportunity effectively,"Mr Yambesi said. He said the basic aim of the project was to improve the efficiency and effectiveness in public service delivery, which would result in increased customer satisfaction and improved performance and economic growth. Yambesi said the government was employing ICT in various processes such as payroll preparation, human resources management and integrated financial management. (Source: The Citizen) Internet Security Firms Now Targeting the East African MarketAn anticipated upsurge in Internet users in Africa and more specifically the East African region is drawing the attention of cyber security firms. The region is now much more prone to Internet threats and cyber crime. Kaspersky Lab, for instance, recently established its regional office in Johannesburg, South Africa, to oversee operations in sub-Saharan Africa, and especially in East Africa. According to Garry Kondakov, Kaspersky Lab managing director in charge of Eastern Europe, Middle East and Africa, the company hopes to establish a footprint across "this emerging market." The firm, which was founded over a decade ago, commands over six per cent of the endpoint market is to set up a base in Africa. It already has a presence in 25 other countries across five continents. The move comes hot on the heels of the landing of the fibre optic cable which is projected to intensify Internet activity. Chief security expert at Kaspersky Lab, Costin Raiu, says the Seacom cable will connect a huge part of Africa to India, the United Kingdom, France and United Arab Emirates, thus predisposing it to suspect software. "Increased bandwidth due to cheaper and faster connections could result in Internet attacks," Mr Raiu said. A recent survey by Kaspersky Lab found that 30,000 new Internet threats are detected daily. Raiu said the threats have also been reported on legitimate websites -- a trend that has increased drastically since 2007. "From less than 20 threats; the figure has grown to just under 2000," he added. A 2009 web survey by McAfee titled Mapping the Mal Web found that the letter code at the end of a website address, referred to as the top level domain, determines chances of encountering malware, spam or other threats. "When registering their websites, cyber criminals look out for low prices, easy registration, lack of regulations or a 'no questions asked' policy," states the report. (Source: The East African) First Black American University Opens ICT Centre in AbujaOne of the oldest black American private universities from the south-eastern USA - Raleigh, North Carolina, known as the Shaw University, has opened an information centre in Abuja. The centre is to add value to the growing status of Nigeria's information technology and raise young and intelligent people who are anxious of developing themselves in the field of ICT. Speaking to our correspondent at the weekend in Abuja, the Vice President, institutional advancement and support programmes of the university, Dr Lee Monroe, called on IT interested students to take advantage of the course to develop themselves. On why the university is interested in Nigerian students, he said, "Shaw University is one of the oldest colleges in the south- eastern part of the United States and we have about 25,000 students, along with a beautiful campus in down town Raleigh”. “My friend Dr. Kester, a professor of our university and his friend and associate, Michael Umeadi, an assistant professor, who are Nigerians, have come to establish information centres so that young Nigerians who are interested in going to school can go to the information centre to find out about Shaw University. We are also here to recruit students back to the United States in January, and this is the reason we are in Nigeria and we hope to achieve success with this mission". The university, he added, is designed to handle 35 different degrees, including the bachelor degrees of four years and masters, with courses ranging from Spanish, criminal justice, computer science, and information technology. It also offers master in education, theology and other pastoral programmes. According to Lee, the University will put in place measures that would attract Nigerian students to Shaw. "What we want to do is to have a price that the Nigerian students can pay and therefore get the education." On instructors who will handle the teaching, he said, "We think in order to make it work; it has to be two years. We have to do training, get our valuables together and begin to access what we think the Nigerian students need or want. We want to be able to work out issues like pricing, because things are quite expensive in the United States than it is here. How do we set the right price so that we can be sure that the young people are getting the right opportunity? So, it is going to take about two years to work out all the planning and our plans have been going back and forth, in order to actualise all these." John Kester, a professor and chairman of the university's global programme, as well as the sole representative of Shaw Information Centre, also said that before the university is finally launched in Abuja, the information centre will kick off first with the board of trustees and an Executive Chairman. Talking about affordability, Lee added, "It will be a comprehensive and high quality first class education and Shaw University is one name that has come to make its marks in Nigeria." (Source: Leadership) In Brief:- Japan International Cooperation Agency (JICA) has pledged to support new ICT training to be undertaken at Tumba College of Technology (TCT) in Rwanda. The courses which begin next February include Cisco programs, hardware and software maintenance programs, advanced networking and server operation systems administration course. Also to start in April is software development. - The University Of Ghana, Legon has launched an ICT- based distance education project to serve as an e-learning hub for distance education students within and outside Ghana who enroll at the University. Its purpose is to improve the quality of teaching, learning and increase access to the university programmes by transforming existing print-mode distance education programme of the university to an ICT-based version. It is also to develop a suitable and modern ICT (hardware, software, networking) and make learning easier for students of the University. - A new data center being built by the Kenyan government to serve East and Central Africa is expected to ease the region's reliance on Europe and America for data backup services. The construction of data centers by African governments, mobile service providers and foreign companies comes in the wake of continued take-up of IT by many companies in the region, which has caused an increase in demand for safer data storage facilities.
Telkom South Africa Quiet On TelOne AcquisitionTelkom is giving nothing away in response to rumours that it is negotiating to buy 60% of Zimbabwe's state-owned telephone operator, TelOne. Speculation has been circulating in Zimbabwe for several weeks and the Zimbabwe Independent said Information Communication Technology Minister Nelson Chamisa had confirmed that Telkom was talking to TelOne. Chamisa did not say how much shareholding Telkom was looking for, but sources say it is chasing a 60% controlling interest. The only comment from Telkom's corporate development executive, Mike Mlengana, was: "Telkom continues to explore and investigate acquisition opportunities in Africa. This process is informed by strict financial criteria to ensure shareholder value creation." Those criteria may well sink a potential deal, since taking control of TelOne would force Telkom to address its debts and invest millions of dollars in expanding the decrepit networks owned by the loss-making company. TelOne has already said it would use some of the cash received through its partial privatisation process to revamp equipment that was vandalised or dilapidated. Yet Telkom is already pumping much money into a loss-making subsidiary in Nigeria, which it bought with great enthusiasm only to be forced to impair R2,1bn last month. The Nigerian business, Multi- Links, is soaking up large amounts of management time as well as cash, so Telkom's board may not feel it is prudent to buy another operator that is clearly in need of costly renovation. Although CEO Reuben September cites expansion into Africa as a key strategy, the damage Multi-Links has inflicted on its balance sheet may sway Telkom to seek less challenging acquisitions. The Zimbabwe Independent said it understood that Telkom had already conducted due diligence on TelOne, which does not have the money to fund network improvements. TelOne was in dire need of capital to upgrade and expand its aged network, the newspaper said. However, raising capital had been tough given the political and economic environment and legislation limiting foreign ownership of Zimbabwean companies to 49%. TelOne has begun restricting calls from landlines to cellphone numbers to reduce its debt , after racking up more than 22m of debt to cellphone operators through unpaid interconnection fees. When one of TelOne's 300000 customers calls a cellphone number, TelOne pays that operator 0.07 a minute. Since TelOne's network has not expanded while the cellphone operators' have, the amount it pays in interconnection fees is forever rising. TelOne MD Hampton Mhlanga has also complained that a cabinet decision to force the company to slash its tariffs this year had plunged the company deeper into debt. (Source: Business Day) Cellcom Gives Shares To Employees in LiberiaCellcom, one of the leading companies in the country, has offered 20 shares to each of its employee as a means of making them owner of the company. Speaking during a press conference yesterday at the headquarters of the Cellcom in Monrovia, the Chief Executive Officer of Cellcom Avishai Marziano said the offering of shares to employees indicates how much they at the level of top management value the services of every member of the Cellcom Liberia family. "By these certificates, we hope to remind all within the employ of Cellcom -Liberia that you have in your possession evidence to show that you own a piece of the company and will share in its success," he said. He maintained that that the shares are for the employees and their assigned beneficiaries, and will continue to be theirs, adding: "even if they are no longer in the employ of the company, for reasons that are not criminal." According to him, Cellcom will continue to promote Liberians into the actual management of Cellcom -Liberia. "We encourage our employees to aim higher and thinker bigger; we will continue to invest in the education of our employees, the transfer of knowledge from expatriates to local staff and as we now have more Liberian managers; we look forward to one day announcing the appointment of a Liberian Chief Executive Officer of the company," Marziano said. (Source: The Citizen) Zimbabwe: Celsys' Financial Performance ImprovesListed information and communication company, Celsys Limited recorded a significant improvement in the trading performance for the first quarter of the 2009/2010 financial year, with revenue increasing to US$650 000 for the three months to November30. According to a quarterly update for the period up to this month released by the company, the increase in revenue was driven by increased sales volumes in products from its communications division. "The Comms division has enjoyed major revenue growth through the recently introduced scratch card, airtime promotion, initiated by Celsys Marketing and launched in partnership with Coca Cola Central Africa and Spar Zimbabwe," the company said. Furthermore, the company said the division was preparing to re-launch its C-phone mobile payphone services with the introduction of new state-of-the-art Adondo payphones from Psitek in South Africa and anticipates significant revenue contributions from these in the second quarter. The company said the IT Division, had also enjoyed recent improvements to its trading conditions and in anticipation of changes in the market and recently signed a new ATM and POS leasing agreement with Kingdom Bank. "The first 10 new Diebold ATMs are expected to be deployed alongside the first 200 POS devices, in January 2010 and we expect to see a meaningful contribution to revenues from this infrastructure coming through towards the end of the second quarter," Celsys said. "The Sophos operation continues to meet its sales and renewal targets and is an important contributor to the company's margin." Looking ahead the company said the continuing improvements to the economy are being reflected in increasing confidence by international investors, specifically LonZim, that is the majority shareholder in Celsys. LonZim has provided lines of credit and working capital support to the company that has facilitated the company being in a strong position to rapidly gain market share as the Zimbabwe economy recovers. "The process of "re-inventing" the company is ongoing and there are numerous initiatives in place that will be an important part of returning the business to profitability and delivering strong growth," Celsys said. LonZim recently announced that it had raised £1,170,269 million through the issue of 4,255,525 new ordinary shares of 0.01 pence each. The money will be used to recapitalise its subsidiaries including Celsys. (Source: The Herald) Orascom will appeal EFSA’s decision to accept MobiNil offer from FTHot on the heels of the Egyptian Financial Supervisory Authority’s (EFSA’s) decision to accept an offer from France Telecom (FT) for the outstanding shares it does not hold in cellco MobiNil, fellow shareholder Orascom Telecom has said it will appeal the ruling. According to Dow Jones Newswires, Naguib Sawiris, chairman of Orascom, announced: ‘We are appealing this decision...this price EGP245 (USD44.71) is not the right price. We are the largest minority shareholder in ECMS with 20% and we are going to appeal this decision tomorrow [Tuesday] morning.’ In addition, the executive also noted that, should Orascom fail to win its appeal it will launch legal action, with Sawiris adding: ‘We lose the appeal, we go to the courts...We have good faith in our arbitrations, so losing the appeal is not the end of the game.’ The issue stems from an arbitration court ruling in April 2009 ordering Orascom to sell its stake in a joint holding company, MobiNil Telecom, to FT for EGP273 per share. Subsequently, FT revealed it had voluntarily filed a proposal with the Capital Market Authority (CMA), the EFSA forerunner, to offer MobiNil's minority shareholders a public takeover bid. Orascom claimed that under Egyptian law FT must also purchase its 20% direct stake in the cellco at a price of EGP273.26 per share, a claim rejected by FT, which argued that the tender for direct shares was not covered by the arbitration ruling. Prior to the acceptance of this month’s offer from FT, the CMA rejected three previous offers at EGP187, EGP237 and EGP230 per share (Source: Telegeography) In brief:- In Kenya, KenGen says it will turn to technology in its annual general meetings to cut costs on printing and postage. Mr Njoroge said future meetings will heavily rely on technology to deliver essential communication such as annual reports and dividend payments to reduce spending. - Orascom Telecom Holding (OTH) has announced that it is planning a rights issue to raise around US$800 million from its shareholders. The proposed Rights Issue is intended to further strengthen the balance sheet and ensure OTH's liquidity including financing needs for the Group in the case where there is no immediate resolution of the tax dispute in Algeria. - According to Gartner report's findings, overall IT end-user spending in South Africa is on pace to reach $24.6 billion (almost R190 billion) this year – a slip of two percent from last year's $25 billion, but Gartner forecasts a six percent increase in 2010 as the region returns to growth. It also states that the computing hardware segment will experience the steepest decline in 2009, with spending projected to fall 23%. The software segment will show the slightest decrease in 2009, with spending forecast to drop four percent. Telecoms, Rates, Offers and Coverage (briefs)- Nigeria’s wireless operator, Visafone has announced that it has met all of the requirements to comply with the CDMA Development Group's (CDG) Open Market Handset initiative. The company is the first operator in Africa to do so. - Telecommunications firm Orange, has unveiled the trendy and multifunctional iPhone 3G -third generation and 3G S devices in Uganda. The launch cuts back the high chances of buying fake versions of the stylish phones from unauthorised distributors in Uganda, since Orange is the official vendor of the iPhone across Africa. However, sources report that initial sales have been slow. - Telkom Kenya's mobile service, Orange subscribers can now call and receive calls while outside Kenya following the activation of its roaming services in 200 destinations giving its subscribers ability to use their lines across the borders. - Burundi mobile operator Econet Wireless now targets to increase its clientele from the current 80,000 to 800,000. Econet, a subsidiary of South Africa-based Econet Wireless International, has attracted 80,000 users since April and aims to have 100,000 signed up by the end of the year 2009. The African nation of 8 million people saw its subscriber base grow by 78% to 480,000 users in 2008. Burundi's telecom regulator estimates the number of customers could reach 700,000 by 2012. - In Gambia, mobile operator Qcell has launched a roaming service. Qcell, Gambia's is now roaming in every country in the world with 550 partners in 208 countries. - Malawian telecoms operator Telekom Networks Malawi (TNM) has launched its W-CDMA/HSDPA network enabling subscribers to access services such as videocalling, mobile TV and high speed internet offering download speeds of up to 3.6Mbps, local daily Nyasa Times reports. Charles Kamoto, head of TNM’s Commercial Services division, said the service is initially only available to post-paid subscribers but pre-paid customers will soon have access to the service.
Yu' joins in the race for mobile payment services in KenyaKenya's fourth telecoms service provider, Yu, has rolled out an electronic money transfer service, which is expected to intensify the battle for control of the mobile cash market that has been the turf of market leader Safaricom and Zain. Yu, the latest entrant into Kenya's mobile telephony market, has introduced yuCash, promising consumers greater efficiency, affordability and access to online shopping. It will be offered in partnership with Equity Bank - Kenya's biggest bank by customer base. Like Safaricom's M-pesa and Zain's Zap, yuCash users will be offered a secure platform to send and receive money as well as top-up airtime. Kunal Ramteke, the Essar chief commercial officer, said yuCash enables subscribers to shop online using on-line retail platform Obopay's interface. Customers will also be able to pay bills and purchase goods and services from small businesses. "yuCash displays a host of unique features that enhance subscriber experience over and above sending and receiving money," said Mr Ramteke. Besides regular updates with every transaction, yuCash users will get a complete record of their transactions every month -- eliminating the need to keep manual records. Yu's entry into the mobile money market takes the two years old firm to the frontline of competition in the telecoms industry where the market leaders have been slugging it out for the estimated Sh2 billion revenues. People familiar with the project say Essar is establishing a national network of agents to drive the business after its official launch next week. Safaricom has more than 12,000 agents in Kenya and in the UK, where it recently launched an international money transfer service. Zain has a network of 6,000 agents in Kenya. Essar wants to recruit 3,000 agents between now and March next year and has lowered the mandatory deposit for its agents. Potential agents are required to pay only Sh50,000 in deposits half the Sh100,000 that Safaricom and Zain demand from their agents. Yu said it was going into direct dealership agreements with the agents and will not allow sub-agents who have denied thousands of entrepreneurs the opportunity to realise the full benefits of the business. M-pesa currently has 7.6 million users compared to Zap's 400,000. Total monthly mobile money transactions are currently valued at Sh20 billion. Previously, Yu had an agreement with the two operators that allowed its subscribers to receive money from either Zap or M-pesa but the latest move now means that they too can also send money using their lines. Subscribers to the yuCash service will be able to transfer between Sh35,000 and Sh100,000 per day. Analysts say Yu is likely to face challenges that are similar to the hurdles it had to confront while recruiting airtime dealers two years ago. The telecoms firm found it difficult to recruit agents in market where the two incumbents -- Zain and Safaricom -- had established formidable footprints. Those challenges forced Essar to forge a partnership with OiLibya, an oil marketer with a national footprint, to drive its sales. It is these challenges that have informed the mobile phone company's decision to partner with Equity Bank in the yuCash project. Equity has a vast network of branches and wide customer base that makes it an ideal partner for the mobile money business. With over 4.1 million accounts, accounting for over 52 per cent of all bank accounts in Kenya, Equity Bank is the largest bank in terms of customer base. The launch of Kenya's third mobile money transfer product comes nearly a year after Zain launched its Zap service and two years after M-Pesa. The three mobile money platforms use slightly different models. M-pesa markets itself as a rudimentary money transfer service that allows exchanges of virtual money between two mobile phones, while Zap has positioned itself as a mobile commerce product that allows customers to interact with their bank accounts as well as transfer cash. Essar hopes to differentiate its product by giving its subscribers the option of making online purchases using the Obopay link, which uses mobile phone platforms to facilitate convenient electronic money transactions round the clock. It offers a broad based service that seeks to address the needs of consumers and businesses around the world. Obopay's model can be used on all mobile phones, a factor that has drawn mobile manufacturer Nokia to partner with it in the mobile money transfer service it plans to launch in the coming months. "Money transfer is a big business opportunity in Africa - the continent with the largest unbanked population. We will ensure that this innovative platform grows across the continent," said Jayant Khosla, Essar Group CEO for Africa. Khosla said Essar was seeking strong partners who had the ability and capacity to support continent growth for the product. Demand for mobile money products is said to be highest in emerging markets such as Kenya, where millions of mobile customers that have never had access to banking services are able to access financial services using their handsets. Studies show that mobile operators are uniquely positioned to introduce the unbanked to financial services ranging from micro-credit loans to person-to-person (P2P) transfers, and remittances from migrant workers to their families at home. "Despite its potential, the mobile money market today remains so far largely untapped. However, the challenge is how to make a profit from these services. The target market is largely made up of individuals with little in the way of financial resources and they cannot afford large transaction fees to support the development of the services they need," the report says. (Source: Business Daily) Huge Media launches Goodyz Mobile Advertising in South AfricaHuge Media has announced the launch of its new mobile phone application, named Goodyz. Huge Media aims to enter the rapidly emerging digital media arena through Goodyz, positioning itself as a media owner on the leading edge of the digital technology curve. The Goodyz mobile phone application is based on the “Eyeballs” mobile advertising technology, which has been developed in South Africa over several years, and was recently successfully trialled in South Africa. Goodyz uses the “interaction-initiation” time on users’ mobile phones to display customized advertising, content and information to the user. The technology is in many respects a world first, and enjoys patent protections both in South Africa and internationally. Currently the technology solution runs on Symbian-based smartphones, across all networks, with BlackBerry compatibility next in the development queue and due for release in early 2010. Justin Lavers, Sales and Marketing Manager for Huge Media, comments: “Cellphones are South Africa’s primary and ubiquitous form of communication, with a pervasiveness not seen in any other medium. It makes perfect sense that this will soon be the most valuable real estate in the media world, as well as possibly the most fickle – it takes a lot for a user to invite a supplier onto their personal mobile space. Goodyz, being completely opt-in, achieves this with a level of elegance diametrically opposed to existing market offerings, and we have already seen an unusually high level of product loyalty in the beta trials.” Lavers says the technology has unique user appeal and acceptability. “Unlike current methods of mobile advertising, which generally invade your personal space and time even if opt-in, this technology is completely non-intrusive and does not require the user to change mobile phone behaviour. In fact, international research has shown that users are positively disposed during genuine phone communication time. Further, it is measurable right down to the confirmed view status of each advertisement, making our reporting to our advertisers completely accurate and transparent." Lavers continues: “The live trial of the technology taught us many valuable lessons, and we have since been able to completely re-engineer the application and improve the user value proposition. We now provide users with what they really want - relevant information including sponsored ads, backed by engaging and entertaining content, all for free.” On the subject of local media support, Lavers is confident: “We have had widespread and positive response from the advertising industry as a whole. The market is ready for a game-changing development, and this promises to be it. Advertisers are really keen to give the new technology a try.” “In addition,” says Lavers, “we believe the Goodyz advertising proposition will be extremely well received, at the aggressive cpm (cost-per-thousand) rates at which we will be able to deliver, which will compete very favourably with existing, far less sophisticated or transparent digital media offerings. It is a case of newer-better-cheaper.” Lavers concludes, “The potential in the mobile advertising arena is immense and hardly tapped. We believe that the market has been waiting for an advance such as this, which will allow proper exploitation of the tremendous opportunities in this space”.
People- Robert Sussman, founder and joint CEO of the Integr8 Group, has been awarded overall individual winner of the African ICT Achiever Awards 2009. The program featured established and recognised service providers within the ICT market, including Accenture, Dimension Data, FNB, IBM and MTN. EventsTELECOMFINANCE 2010 26th – 27th January 2010, Renaissance Chancery Court Hotel, London TelecomFinance 2010 will bring together the key individuals and companies that will shape the telecoms industry in what is set to be another challenging year ahead. After a subdued year of deal activity the panel sessions will explore the changing focus in global M&A, the hottest regions for deals and fresh ideas on operational efficiency and maximising new technologies. Don't miss this opportunity to network, share knowledge and do business with operators, financiers and dealmakers from across the global telecom finance community. For further information please visit www.telecomfinance.com/2010 MOBILE WEB EAST AFRICA: Harnessing the potential of the internet and applications on mobile devices 3rd & 4th February 2010, The Continental Hotel, Nairobi, Kenya Following the unrivalled success of Mobile Web Africa, the most progressive and innovative mobile focused event in Africa is now moving to East Africa. With contributions and support confirmed from a host of the leading individuals and organisations Mobile Web East Africa is promising to be a superb two day conference. If the evolution of one of the most important technological advances of the 21st century is of interest to you then attending this event, which features an interactive roundtable seating format, is a fantastic opportunity. For information visit the event website: www.mobileeastafrica.com or contact the organiser All Amber on: info@allamber.co.uk AITEC BANKING & MOBILE MONEY COMESA 24-25 February 2010, Kenya International Conference Centre, Nairobi, Kenya Technology presents great opportunities for the financial sector to extend reach, improve service and reduce costs. However, in the drive to implement the very best that technology vendors have to offer, the focal point of the banking process is often forgotten – the customer. AITEC Banking & Mobile Money COMESA 2010 will focus on the customer experience in relation to all technology implementation and services, challenging suppliers and bankers alike to evaluate their systems in the light of customer needs and preferences. For further information on the conference visit AITEC’s website http://www.aitecafrica.com/event/view/45 4th ANNUAL E-GOV AFRICA FORUM 2010 23-25 March 2010, Maputo, Mozambique At a time when ICTs are defining the way the world lives and conducts business, it is important for African governments to evolve themselves to meet the demands of changing trends in order to deliver effective services and to improve the quality of life of their citizenry. This also requires the formation of Public Private Peoples Partnerships to be geared towards achieving developmental goals through the application of ICTs to governance (e-governance/e-government), electoral processes (e-democracy), food and nutrition (e-agriculture), health delivery (e-health/telemedicine), learning and capacity development (e-education) and trade (e-commerce), among others. For further information on the conference visit the CTO’s website Jobs and Opportunities* Request for Proposals To Operate AfrISPA Secretariat Since 2004, AFRISPA has maintained a professional secretariat as a focal point to provide support for AFRISPA and her activities. In addition, the secretariat is responsible for carrying out promotional and educational outreach program to members and regional /global Internet organisations. The current AFRISPA Secretariat is operated in Nairobi by Brian Longwe, an AfrISPA founding member, whose term ends December 2009. The AfrISPA Board is, therefore, calling for proposals to operate the AfrISPA Secretarial for a three-year term from 1 January 2010 to 31 December 2012. The deadline for the submission of proposals is December 23rd 2009. For guideline of Request for Proposal to operate AFRISPA Secretariat contact AFRISPA at info@AfrISPA.org ContractsGAIN and ZTE - Malawi GAIN has announced a new deal with Chinese equipment vendor ZTE for the construction of its wireless network. In a statement, G-Mobile said its project partners Beryl Telecoms South Africa and Beryl Telecoms UK are financing the building of a ‘modern hybrid cellular mobile network’ under a Build, Operate and Transfer (BOT) funding arrangement. Orange and Comverse – Cameroon Orange Cameroun, a subsidiary of French telecoms company France Telecom, has selected Comverse’s Voice HUB to handle projected growth and support the deployment of new voice-related services on its mobile network. The platform enables a range of voice services designed to generate revenue at each stage of a call.
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