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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 486 8th January 2010 M-Money reaches critical mass of users in East Africa – Where next?The close of 2009 saw M-Money services finally reach critical mass in East Africa. It’s taken a while for operators to get the hang of marketing it and for users to become comfortable with the idea of transferring money that isn’t cash. Russell Southwood looks at the lessons learned in the process and asks where next for this compelling set of services. Just before Christmas the total number of M-Money users in Tanzania passed the 1 million mark and in Uganda it reached just over half a million. Kenya, the long-standing pioneer, has now reached 7.6 million users and that figure does not include subscribers from Orange Money and its Zain rival Zap (400,000). Eassar’s yuCash is also set to launch sortly. Each of these country markets has reached a critical mass of users. This critical mass is the key point where the number of users becomes sufficiently high that existing customers draw in ever larger numbers of people on the basis of the users asking others the simple question” why aren’t you using it? For Kenya, where the data for M-Pesa is available on a month-by-month basis, six months after the launch there were 591,200 users. Only two months later the figure tipped the million mark and the rest is history, slightly under doubling at that point. M-Pesa was tried and tested after Kenya but newer products like MTN Money and Zap were new to the market. In Uganda, MTN Money has 413,000 users after 10 months and is now signing up around 2,600 new customers every day and projects having a million plus customers by the end of 2010. Zap Money which has only been going for 6 months is approaching the 100,000 mark in Uganda and passed it several months ago in both Kenya and Tanzania. For MTN Money, the key to making it move has been having a direct sales force with 760 people out pounding the streets on a daily basis. The key to the service’s breakout has been to use this street sales force to explain the service to people and to get them registered: subscribers need to be able to have proof of identify to meet Know Your Customer (KYC) banking regulations. George Boozas, who heads up Zap, makes the same point:”We have to engage our customers on the ground and continuously educate them. We have sales people who pitch up in a particular area and explain the service. We’re also using our 30,000 sub-dealer outlets to explain the service as well as the experiential teams.” In addition, MTN has 606 agents, of which there are 26 super-agents who run 200 of these 606 agents. Zap has 3,000 dealers and believes that there is still room to grow this network: like MTN it has within that network a number of super agents who run chains of agents. Kenya’s Safaricom has 12,000 agents and is introducing a Aggregator model so that it can pass off dealing directly with so many agents to agent management companies (See On the Money section below). By contrast Zain has 6,000 agents and Essar plans to recruit 3,000 agents. The average transaction for MTN Money is USh70,000 (US$36) and the maximum limit on a transaction is USh1 million (US$514). It is working with the Central Bank of Uganda to move the upper limit to USh50 million (US$25,720). Zap works to the same USh1 million upper limit and is handling just under 12,000 transactions a day with a lower average transaction of around US$15. M-Money services don’t stand still. MTN Money is looking at announcing payment for utility bills by Q1 of this year. Zap is looking at integrating the service with bank account transactions and also finalising talks with utility companies. But the next big front opening in the M-Money war is international transactions to enable the diaspora community to send money home. Back in October 2009, Safaricom launched m-pesa at selected outlets in the UK. Kenyans in the UK can now send money to their friends and family in Kenya through M-pesa UK, direct to their mobile phone wallets. Western Union, Provident Capital Transfers and KenTv were involved in a small pilot before the commercial launch of this service. A total of 19 outlets in areas with high local Kenyan population were selected to trial this service. The transaction fee ranges from £4 to £6.90. Since transaction costs globally vary between 6-17% of the transaction, these charges will only be economic for larger trasactions. It has plans to add international remittance services to other countries. Currently, the maximum amount that can be sent internationally per transaction through M-pesa is £250 while the total allowable per month from a single sender in the UK is £1,000. But closer to home, M-Money services may now gain wider traction. Zap is now established in Zain’s East African country markets and will rolled out in all 22 of its country territories by the end of 2010. According to Boozas:”Nigeria is as good as launched and three others will follow after that.” Two of these are Sierra Leone and Malawi where a pilot is currently on-going. MTN has launched in Uganda and Ghana and will soon launch in Rwanda and into its other country markets. Orange Money has been launched in Cote d’Ivoire and Kenya and like the other companies, it has plans to roll out across all of its African operations.
Kenya telecom regulator: $25 millon 3G fee standsKenya's telecoms regulator said on Wednesday that a $25 million fee would continue to apply to all firms acquiring a 3G licence in the east African country. Telkom Kenya's Orange mobile phone service, which is controlled by France Telecom, said last year that it was lobbying the Kenyan authorities to try to reduce the fee. "Please note that the determined 3G license fee is $25 million for any operator who seeks that license," the Communications Commission of Kenya (CCK) said in an email to Reuters. "It is applicable equally across the board." Telkom Kenya, operating under the Orange brand, began testing a 3G network in the capital Nairobi last month. Third-generation services allow web access at broadband speeds that enable faster file downloads and email services. Last September, the company said it saw its mobile users rising to 2 million by the end of 2009, up from 1.38 million users at the time. Leading Kenyan mobile phone firm Safaricom acquired a 3G licence in 2007 after paying $25 million. It has said any review of the fee should apply across the board. "When the 3G licence was advertised by the CCK, Safaricom was the only one that stepped up to the plate," Chief Executive Officer Michael Joseph told Reuters in December. "If the licence fee is to be reduced, and I don't have any objection to that fee being reduced ... we should have the same treatment." (Source: Reuters) Vodacom Faces Lawsuit in Democratic Republic of the CongoSouth Africa based Vodacom has revealed a potential dispute with its partner in the Democratic Republic of Congo (DRC) that it says could affect its relationship in that country. Although Vodacom says that it has continued to constructively engage with 49% shareholder Congolese Wireless Networks (CWN), these discussions have thus far proven unsuccessful. This is despite CWN having explicitly approved the terms of funding agreements that are now being disputed. In 2009 a document was circulating offering the company for sale. Vodacom Congo, which commenced operations in 2002, is 51% owned by Vodacom. In the absence of alternative funding sources, Vodacom is the sole provider of capital to the company. The funding agreements for Vodacom Congo, which clearly state the terms of the funding, were unanimously approved by the company's directors including those appointed by CWN. CWN has always been free to seek alternative funding. Despite this fact, CWN's primary dispute with Vodacom relates to these funding agreements, and CWN has threatened to take this matter to court in the DRC to force Vodacom to invest significant further sums in the business. Speaking on behalf of Vodacom Group, Bob Collymore, Chief Officer Corporate Affairs said: "We have been entirely open in our dealings with CWN and have acted in good faith to ensure the viability and growth of Vodacom Congo. We are single-handedly supplying funding to Vodacom Congo at commercial terms that were agreed by CWN's directors. Having explicitly approved the terms of the funding, CWN cannot now claim ignorance of these terms and we refute any suggestion that Vodacom has unduly benefitted from the finance agreements. Any intended litigation on this issue is entirely without merit and a contrived attempt to force Vodacom to disproportionately fund further investment. " "Vodacom remains firmly focused on developing the Vodacom Congo business to its full potential, but we cannot justify further investment while relations with our minority shareholder are combative and dysfunctional. Vodacom finds the actions of CWN counterproductive and not in the best interests of either Vodacom Congo or the country as a whole." Vodacom says that it will defend any legal action in the DRC while continuing to seek an amicable resolution. For the year ended March 2009, Vodacom Congo accounted for 5.3% of Vodacom Group's revenue. (Source: Mobile World) NATCOMS Knock NCC over Interconnect Rate in NigeriaNational Association of Telecommunication Subscribers (NATCOMS) of Nigeria has described the recent interconnect rates arrived at through asymmetric method by the Nigerian Communications Commission (NCC) as a rip-off strategy against telecoms subscribers in the country. NATCOMS said the interconnect rates is not in the interest of the subscribers as claimed by NCC saying the previous moves by the regulatory body to make Nigerians believe its care about price control have always been deceitful thereby leaving the subscribers at the mercy of the telecoms operators. As a result of the development, NATCOMS has slated its congress for Monday to educate its members on the new call rates in Lagos. The NCC had graduated the call rate from N10.20k with effect from December 31st 2009 to N8.20K in 2012 and stated that the move may reduce the tariff paid by telecommunications subscribers by 50% starting from January first this year. The body also anticipated that the new interconnect rates may force down call rate especially for mature operators to as low as N15 per minute. NCC listed the interconnect rates for mobile voice as follows; N10.12k for Dec 31, 2009, N9.48k for December 31st, 2010, N8.84k for December 2011 and N8.20K for December 31st, 2012, while the Service Messaging Services (SMS) rates was pegged at N1.94 from December 31st 2009, N1.63k from December 2010, N1.32k from December 2011 and N1.02k from December 2012 respectively. But NATCOMS was quick to advise the NCC to stop chasing shadows and instead take a decisive step that would lead to real reduction in tariff charged by the telecoms operators by reducing the price cap as stipulated through the price cap regime. The president of the association Chief Deolu Ogunbawo in an interview with Daily Independent said what NCC should have done was to reduce the price cap pegged at N50 to N30 or N25 so as to favour Nigerians. According to him, if this is done "automatically without going into confusing telecoms arithmetics, the on-net call rate would fall to as low as N11K- N15k while the off-net call would also be within the range of N2O-25k irrespective of the originating network. Operators are already at logger heads over the asymmetric method adopted by the NCC. Ogunbanjo noted that since 2006 when the NCC pegged the call rate at N11.55k, no telecoms operator charges less than of N36 per minute on net-calls and N42-44 on off-net calls. (Source: Daily Independent) Correction: Issue 486: Former Rwandatel CEO Wanted Over Missing Funds Rwandatel Management has no case against former CEO.On Tuesday December 22 2009, The New Times published an article entitled “Former Rwandatel CEO wanted over missing funds”. The article was written by Ignatius SSUNA and Eugene MUTARA and claimed that Rwandatel, Rwanda National Police and Interpol are all tight lipped about this case. The Management of Rwandatel SA would like to refute these baseless claims alleging that the company has presented a case to court against Mr. Kariningufu regarding an amount of money that has gone missing. Rwandatel SA would like to bring to your attention and to your readers that while it is factual that Mr. Kariningufu Patrick is no longer an employee of Lap Green, neither Lap Green nor its Rwandan telecom company, Rwandatel SA, of which he was first Chief Technical Officer and later Chief Executive Officer for years has brought any case against him in the courts of law in Rwanda or beyond. Management has not given any details “of the case” simply because there is no case. We would like to recommend that going forward answers to all pertinent questions or clarifications surrounding any story be sought before any article is published. We would appreciate if all our media partners doing their research would contact Rwandatel officials or other competent authorities for comment before going out with such defamatory stories. We take this opportunity to recognize all members of the press corps who continue to respect the duties entrusted to them by the public and continue to go out of their way to establish the truth. In brief:- Rwanda is eyeing a seat on the International Telecommunications Union (ITU) Council this year but the decision will first be endorsed by Cabinet. The New Times has learnt. If Rwanda wins the seat this year, it will be the third East African country after Tanzania and Kenya to join the prestigious Council. - The Nigerian Communications Commission (NCC) has announced that all new and existing telecoms' subscribers should register their SIM cards by March 1, 2010. In a separate news, Nigeria’s Senate has flayed procedures being adopted by the Nigerian Communication Commission, NCC, to register all mobile telephones in the country and directed it to immediately retract its plans. Though supportive of the registration of the SIM Cards, the Senate is, however, strongly opposed to the NCC's plan to use intermediaries to conduct the registration scheduled to commence in March. - The Tanzania Communications Regulatory Authority (TCRA) has extended the registration of mobile phone lines by six months. The initial deadline was December 31st but less than half of the estimated 15 million mobile lines in use had been registered so far. The new deadline for registering the lines is June 30, 2010, TCRA director general John Nkoma said in Dar es Salaam. - Egypt’s fixed line incumbent Telecom Egypt (TE) has called on mobile network operator MobiNil to pay it EGP2 billion (USD364.4 million) as part of a contract dispute, according to TMC.net. The move follows an arbitration suit launched by MobiNil in September 2009 in which MobiNil requested that TE maintain old interconnection fees, despite the National Telecommunications Regulatory Authority (NTRA) issuing a ruling lowering interconnect rates between fixed and mobile lines. Subsequently TE launched a counterclaim that argued MobiNil owed EGP2 billion relating to the dispute. - Moible operator MTN Uganda is in court accusing the Uganda Communications Commission (UCC) of imposing lower rates as interconnection fee with other telephone operators. In a case filed in form of judicial review at Kampala High Court last week, MTN wants a declaration that UCC has no legal authority to fix telephone interconnection rates between MTN and other telephone operators. - Anonymous mobile telephone chips are now classified as "sensitive equipment" in Algeria, pursuant to a new executive decree aimed at preventing terrorists from using telephony to communicate and conduct attacks.
Nigeria: Galaxy Backbone shut down on controversy on land useDevelopment Control Department of the Federal Capital Territory (FCT) Administration on Wednesday sealed off premises of Galaxy Backbone. The government agency hosts the Information Communication Technology (ICT) portal for the Presidency, some ministries and security agencies in Abuja. FCT authorities accused Galaxy Backbone of failing to offset a land use contravention fee amounting to N5.8 million. The said office on Adetokunbo Ademola Crescent in Wuse II is supposed to be a residential area but converted for commercial use by Galaxy Backbone, thus accumulating contravention penalty fees, FCT officials said. Galaxy Backbone also hosts the Internet portal used by the Nigerian Intelligence Agency (NIA), Nigerian Defence Headquarters and various ministries, departments and agencies (MDAs), as well as the Nigeria Immigration Service (NIS), Nigeria Prisons Service (NPS), State Security Services (SSS), Debt Management Office (DMO), among others. Director Department of Development Control, Yahaya Yusuf, frowned at the increasing rate of violation of the FCT Land Use Act by property owners and vowed to seal off all other contravening premises whether government's or private. "I'm aware that Galaxy Backbone has a site at the Central Business Area, but I am not aware of its relationship with the Wuse premises. "They don't have approval for the Wuse office, even their office in Central Business District is having some problems, but we can understand that, so, that is why we are not taking any action against them there for now. "Where they are occupying is just an office and they are not supposed to be there. I'm fully aware of the exercise; I fully take responsibility for whatever happens, things have to be done in a proper way, and that Galaxy Backbone is a government establishment makes it necessary for the company to do the right thing," he said. Head of Land Use Contravention Enforcement Team, Tayo Ogunkuade; and Head of Valuation, Bilhatu Daniel, who led the operation, had requested from Galaxy Backbone officials evidence of payment of the penalty charges on the property, but did not get any. Ogunkuade said, "We served them notice to show documents to use this place for commercial use since it was approved for residential purpose. "With this notice, you are expected to pay within two weeks based on the valuation of the land and property in question. But we realised that since May that we served the notice they have not paid and since they are not taking us serious we have to seal up the premises." But, Special Assistant to Managing Director of Galaxy Backbone, Ibrahim Waziri, who pleaded for extension of time earlier, insisted the leader of the enforcement team must sign an undertaking before sealing the premises. (Source: Daily Independent) Cameroon has started rolling out national fibre backbone with Chinese firm’s helpThe laying of 3,200 km-long fiber optic cable was launched on Tuesday at Kye-Ossi, a southern town of Cameroon, marking the beginning of an ambitious project which will transform Cameroon into a telecommunication hub in Central Africa. With a preferential loan of 52 million U. S. dollars given by the Chinese government, which accounts for 85 percent of the total investment required, the project is expected to be completed in 18 months by a Chinese company Huawei. 15 percent of the investment will be provided by Cameroon. At the end of the project, big Cameroonian cities like Bertoua in the east, Garoua, Maroua and Kousseri in the north, Bamenda in the west, Buea and Limbe in the southwest will all be connected to the fiber optic cable, extending the existing fiber optic cable from 1,941 km to more than 5,000 km. The work comprises six routes, including: Yaounde-Mbalmayo- Ebolowa-Kye-Ossi with a crossover to Libreville-Sangmelima passing through Djoum; Yaounde-Ayos-Bertoua then Belabo-Bertoua; Bertoua- Meiganga-Ngaoundere-Garoua-Maroua-Kousseri; Bafoussam-Bamenda; Douala-Nkongsamba-Bafoussam; Douala-Buea with a crossover to Tiko and Limbe, according to Nkoto Emane, the director general of Camtel, the Cameroonian state operator. “This ambitious project in fiber optic cable aims to build a modern telecommunication network going through 30 Cameroonian towns. “Thanks to this project, more than 70 per cent of the Cameroonian population will benefit from this new information highway,” Chinese Ambassador to Cameroon Huang Changqing said at the launch of the project. Huawei will also construct the information relay centers along the cable already laid underground in anticipation of technical configuration. Since 2007, the Chinese company has also helped Camtel in the area of setting up a commercial telephone service called Citiphone, which allows quality access to mobile phones, fixed lines and the Internet at a low cost. At the moment, less than 27 per cent of Cameroon’s administrators are connected to the Internet and less than 1 percent of the population uses Internet, according to official sources. In order to have access to Internet ADSL 256/128 offered by Camtel, one is expected to pay 150,000 FCFA (300 dollars) per month. Thanks to the on-going project, the Cameroonian government expects that from now till 2015 it will be able to increase Internet service to 40 per cent of its population, the mobile phone to 50 per cent and 30 per cent for the fixed line telephone. (Source: Xinhua) New Online Payment System Comes to Phone Users in TanzaniaMobile phone users in Tanzania will from March be able to shop online using a new payment system developed by a local firm, Wide International Network. According to the firm's chief executive Isaac Kitinya the proposed system integrates the Internet and mobile phone technology in such a way that users can pay for services offered by a cross section of firms courtesy of mobile telephony operators. "People will be able to transact business online in tourism, travel, sports and entertainment, web maintenance and solution and ticketing," Kitinya said.For instance, the tourism sector will be able to reach customers worldwide and get payments directly "once a deal is struck." Deputy Director National Payment Systems at the Bank of Tanzania Benard Dadi welcomed the system but argued it would be used more if the country speeded up the issuance of a national identity cards. According to Wide International Network, the system will offer about 30 services that run across businesses, government, learning institutions, faith-based organisations, health institutions, manufacturing and financial institutions. The banks will have an online banking facility which will provide online support, reasonable response time, easy to use interface and a secure environment. All transfers will end up in the hands of the bank thus increasing banking access and creating virtual customers worldwide. Despite the many players in the tourism industry -- booking offices, travel agents, site owners, hotels -- the Wide International Network system will merge all services into a single transaction performed anywhere. "Using the system, consumers will be able to simplify their tourism arrangements, facilitate bookings and pay bills for local services like water, electricity, insurance and others," said Mr Kitinya. The state-of-the-art online payment system, the first of its kind to operate in Tanzania, is hosted by IX Webhosting of the United States. The development of the system has been accomplished by a multidisciplinary team of experienced experts in ICT, business, law, banking, economics and finance. The system has been accepted by several organisations including Azam Marine Company Ltd, Vodacom and Zain Tanzania. Wide International Network's bankers are Barclays Bank Tanzania and Commercial Bank of Africa Tanzania. The system reduces the need for using hard cash, and physical movement of people and paper in effecting business deals. (Source: The East African) In brief:- The Nigeria Football Federation has launched its official website, www.nigeriaff.com. Officials say the website will become functional in a couple of weeks, as operational staff have only just started work. - TAAG Angola Airlines plans to launch a new website and call centre this month as part of its reorganisation plan, Carlos Vicente of the company’s press office has stated. The launch of the website and call centre aims to enable travellers to buy and reserve tickets without having to visit sales points. - With only two weeks to go until the end of the third ticket sales phase, more than 700 000 ticket applications for the 2010 Soccer World Cup have been received, says Fifa. Online ticket sales are handled by Match Event Services, a local subsidiary of Zurich-based Match Services, which provides Fifa with ticketing, accommodation and event IT services. - South Africa ups its average broadband speeds, but still drops down the world rankings. Towards the end of last year the University of Oxford and the University of Oviedo’s Department of Applied Economics released the results of their Broadband Quality Study, highlighting what many people knew for a long time: South Africa is on the wrong side of the digital divide. Europe is leading the pack in terms of broadband speeds with an average downlink speed of 7.32 Mbps. North America is second with 6.65 Mbps, followed by Australasia with 5.54 Mbps, Asia with 4.90 Mbps, South America with 2.15 Mbps and Africa with 1.3 Mbps.
Portugal's biggest computer retailer expands to Angola, Mozambique and Cape VerdeChip 7, Portugal's biggest network of shops specialising in computers, plans to expand activity in 2010 to Angola, Mozambique, Cape Verde, Madeira and the Azores, the company's founder has announced. "I hope to have everything closed by the middle of the year," Miguel Monteiro said on Tuesday in Porto, adding that meetings are under way with 30 parties interested in extending the network to the three countries and two Portuguese autonomous regions via master franchising contracts. The top stakeholder (90 percent) of Chip 7, founded in 1994 in Porto, highlighted the success of the franchising model adopted by the brand just over a year ago, which enabled the network to grow from 20 to 64 shops, all in mainland Portugal. Franchise holders benefit from training, marketing and brand-related technical services which include the production of fliers, newsletters sent to "nearly 300,000 people", call centre for customer attendance, website with "10,000 products" and a network of computer clinics, Monteiro said. He hopes to open in Angola "six or seven shops in the next one or two years," a number which may grow to "30 in seven to ten years." Chip 7 began activity in 1994 as a small shop in a Porto shopping centre. It currently counts 78 employees and is based in nearby Gandra, Paredes. (Source: macauhub) Kenyan Exports Software as IT Sector GrowsKenya’s rising profile as a software developing nation is set to place the commodity on the country’s list of exports this year as companies and governments continue the search for effective cost-cutting tools. Figures from the Ministry of Information reveal the sector raked in over KES 500 million (USD 6.6 million) in revenues last year, and that figure is projected to double as the country’s profile rises around the world. Currently, Kenya biggest exports are tangible goods such as horticultural exports, tea, and soda ash. A shift to virtual software exports would position the country to compete in the same class as India, which makes upwards of KES 4 billion (USD 52.9 million) per annum in software exports. Local software manufacturers say they are experiencing an upswing in interest from foreign companies, who are drawn to Kenyan developers due to their ability to churn out cheap but innovative solutions. The recent international recognition of local developer Ken Kasina has boosted the country’s profile. Kasina was presented with the Global Achievement Award for Open Source last year for his work on open source platforms. Last year, local software developer CompuLynx raked in KES 400 million (USD 5.3 million) in software development, with a portion gained from exporting solutions. The company is now targeting KES 1 billion (USD 13.2 million) over the next year on the back of increased interest from foreign companies and countries. “Developments on the local and international business and IT solutions scene have continued to show positive trends necessitating further investment,” said Sailesh Savani, the CompuLynx CEO. As an international end-to-end solutions provider, CompuLynx supports key business segments platforms which include retail, government, banking, financial services, and insurance. CompuLynx has partnered with leading IT-companies like Oracle, IBM, Datacard, and Microsoft among others, thus providing various products, solutions, and platforms for several sectors. “Emboldened by the prevailing market climate, we have decided to adopt a business strategy leading to 2012 that will ensure that all our undertakings are planned for and cease to be generic,” Mr Savani said. Over the last three years, Kenya’s growing software development community has drawn companies like Google, Facebook and Research In Motion (RIM) to source local talent through hosted software development competitions. Following a slump over the last two years due to the financial recession, the software market is forecast to resume growth in 2010 and new research from Software AG, an American software firm, reveals a larger software sector will provide a buffer to economic contraction and spur an earlier return to growth. “Software will also play a major role in helping both the public and private sectors adapt to economic changes quickly and cheaply. The software industry provides a cost effective way of implementing competing requirements such as increasing efficiency, initiating cost reductions, and ensuring new regulatory compliance,” said Dean Mericka, President of US Operations for Software AG. (Source: Business Daily) Local partnership strengthens South Africa’s ICT offeringsLocal developer of risk mitigation and workforce optimization solutions, Spescom DataVoice, signed a strategic partnership agreement with GijimaAst, a South African Information Communication Technology (ICT) company. The agreement states that GijimaAst is one of Spescom DataVoice’s channel partners and has access to the full range of Spescom DataVoice products, including proprietary solutions that record, manage, re-create and analyse voice transactions and workforce optimisation. “We will leverage GijimaAst’s strength and expertise to access new markets, such as the public sector and mining,” says Kgabo Badimo, MD of Spescom DataVoice, who chose GijimaAst for their understanding of local flexible solution targeted at the South African market. Through the recent partnership, GijimaAst gains access to a range of locally developed business communication solutions, including voice recording portfolio, business processes and security solutions. Spescom is a JSE listed company operating in the ICT sector. Founded in 1977, this South African company focuses on the delivery of integrated business communication solutions that leverage voice, video and data technologies to enhance the way businesses communicate with their customers. The company has four divisions Spescom DataFusion; Spescom DataVoice; Spescom Telecommunications and Spescom Media IT, combining to deliver a range of voice application technologies, telecommunications and broadcast solutions. Spescom has a staff complement of 258 with offices located in Johannesburg, Cape Town, Durban and London (UK). GijimaAst is a South African company listed in the Technology Sector of the JSE Securities Exchange and recognized as a complete ICT partner. The competencies and vertical market focus of GijimaAst includes broad experience and market penetration in the manufacturing, mining, telecommunications and financial services markets, as well as national and provincial government departments. (Source: IT News Africa) In Brief:- As part of Tunisia's ambitious program which aims at building 10 technopoles in several governorates to disseminate digital culture and new technologies within the next ten years, a strategic study on the creation of a technological pole in Sousse was recently finished to make the capital of the Tunisian Sahel, an international hub for new services and information technologies. - The South African Post Office (SAPO) has committed to increasing its IT and security spending for the Post Bank as it prepares to take on the four major banks in the country. While additional funding has not been finalised, the post office says critical processes would be secured through increased spending on its IT systems. SAPO has spent R275 million in the 2008/9 financial year on software and the upgrading of IT infrastructure. An additional R200 million was spent in the previous financial year, while spending for the 2009/10 financial year is expected to rise even more. - The technobridge incubator of Sidi Abdallah's Cyber Park in Algeria has been inaugurated by Post and Information and Communication Technology Minister Hamid Bessalah. The technobridge will provide assistance to young researchers, doctoral students, civil servants or individual employers for the creation of their own companies, on the basis of new information and communication technologies. In an opening address at an open day about the ICT facility, Bessalah emphasized the importance of the infrastructure in promoting science and the information society, adding that the incubator will host holders of projects boosting digital economy.
Uganda: Telecoms Funding Dries Up in 2010Paul Busharizi and David Mugabe of New Vision spoke to Themba Khumalo, the MTN Uganda CEO, on the telecom industry projections, future investments and penetration. Q: Do you think the industry has hit a maturity in terms of uptake of the service or there is still a lot more to come? A: MTN is still a leading player with 55% market share. We have experienced continued growth with 3.5 million customers at the close of 2008. We now have in excess of five million customers. We are at about 30% penetration. That looks like a small figure but obviously a lot of people are multi-sim cards two to three sim cards. Q: So there is still some significant room for growth? A: There is a lot of market flooding or damping in a way operators charge almost below costs. You can pay a small fee and call for the whole day but this is not sustainable. ARPU has fallen as low income earners join the family. Q: What challenges does this present? A: ARPUs is continuously declining. Some operators are sitting at $3 or $4, which very low. We are still lucky because we sit at about $6 on average. But there is a challenge. The more the ARPUs decline, the bigger the challenge. Q: How much has MTN invested in Uganda? A: We have invested about sh1.2 trillion since 1998 into the network. That is about $650m. That shows our big commitment to continue providing a reliable service. Q: And looking forward in the next year? A: It has been a challenging year in many respects. Funding is drying out. It is more difficult to get more funding. We were successful in getting the $100m. We will continue investing. The figure is being finalised but it will not be the same magnitude as the 2009, which totalled $130m. We see that coming down next year. Q: The World Cup has been a huge branding opportunity for the MTN on the continent. What benefits are there? A: We look at the bigger picture. We got into the World Cup to improve the MTN brand and to create its affinity. That is intangible in terms of value but with long-term benefits. We are leveraging on the World Cup to increase our sales. Q: How is MTN preparing and taking advantage of this new infrastructure of the undersea cables? A: SEACOM has landed and TEAMS is already there and being consumed in Kenya. We bought capacity into TEAMS to ensure that we have an alternative. We evaluated all other cables but found TEAMS to be a better proposition because of our existing cable systems. But we have invested into EASSY, which will be coming through in June 2010. EASSY will change the landscape in terms of pricing. SEACOM has not changed much. Capacity has been boosted but the pricing has not changed. Q: Do you think EASSY will have a direct change? A: The reductions are subdued but still effective. There is a transition that we have to go through. Q: There has been talk of MTN selling shares to the public following the recent plan to sell a stake to NSSF falling through. Is this something you are thinking about at all as MTN Uganda? A: This was topical over the last two years. This is a shareholder issue. The issue of NSSF has been well publicised and it put to question whether we had chosen the right partner. We are reviewing the situation and looking for another option of achieving the same intent that they had gone out to seek. Q: MTN does not have a license in Kenya, Sudan, Tanzania and DR Congo, leaving Uganda looking orphaned. Are you using Uganda as a springboard? A: We are in Uganda and it is a long-term commitment. We see potential in Uganda and history tells for itself that we have grown the business over the years. The sector has been effectively structured by the regulator. MTN is in Sudan. We have an investment in a company in Kenya. We are in Rwanda. Where we don't have a direct operation, we look for partners. Q: In Uganda, what would you single out as your biggest competitive advantage? A: We have a very wide coverage. We are already covering about 90% of the population and we got over 85% of geographical coverage that is a strong position. We are trying to increase our value proposition. Penetration is still at 30%, while MTN has a geographical coverage of over 90%. There is also the argument that telecoms can still stay in business profitably with reduced tariffs. (Source: New Vision) Four of eight shortlisted companies submit Zamtel bidsOf the eight companies shortlisted in the sale process of a 75% stake in Zambian fixed line incumbent Zambia Telecommunications Company (Zamtel), only three have submitted bids. According to the Times of Zambia the three foreign companies to submit their offers to the Zambia Development Agency (ZDA) for the telco are India’s Bharat Sanchar Nigam Ltd (BSNL), Unitel of Angola and Libya-based LAP Greencom. A fourth bid, from a consortium of Russia’s Vimpelcom and the telecoms arm of the Alfa Group, Altimo, was understood to have been sent on time, but reportedly arrived at the ZDA offices five minutes after the submission deadline as a result of ‘logistical reasons’. The bid however was still considered, and the ZDA board confirmed that Altimo’s non-binding offer had been accepted today. The four companies that had been shortlisted but chose not to bid were Telkom South Africa, BSNL’s fellow state-owned Indian telco Mahanagar Telephone Nigam Ltd (MTNL), Portugal Telecom and a consortium of Egypt-based Orascom Telecom and its subsidiary Telecel Globe. ZDA acting director general, Muhabi Lungu, after opening the bids said the ZDA would now study the offers, while also passing the details on to the board of Zamtel for its evaluation. Mr Lungu has stated that the ZDA will announce which of the companies will move on to the next stage in the sale process on 11 January 2010, where another due diligence would be undertaken before the successful bidder is chosen. (Source: Telegeography) Didata All Set for 'Sweet Spot of IT Spend'Dimension Data Holdings expects to deliver modest constant currency revenue growth in the year to next September as the IT services solution provider's markets are likely to improve, says CEO Brett Dawson. "Dimension Data is well placed to capitalise on long-term market trends. Growth in excess of prevailing market rates and medium- term operating leverage remain our key financial objectives," he said in the annual report. The group was in the "sweet spot of IT and communications spend", and the trends driving superior growth over the past few years had the momentum to continue to drive growth in the medium and long term. The growth strategy would be largely organic. "We intend to expand into several cities in Brazil and China next year." In addition, two types of acquisitions would be targeted: the first to expand the footprint, and the second where additional skills were required. Two acquisitions were being completed to expand in Angola and Morocco. The Systems Integration business, which accounts for 80.6% of revenue, delivered services revenue growth from all five regions in the past year, although product revenue came under "enormous pressure". Four out of five regions achieved "significant operating profit expansion and improved profit margins". The Americas region started to recover in the fourth quarter. Deregulation of SA's telecoms market and growth opportunities in Africa would provide opportunities for Internet Solutions. Plessey would benefit from the opening of the African continent in telecoms services. Express Data was a value-added distributor with "solid prospects". "Our network-centric offerings are vital for our clients to be able to operate effectively in today's IP and convergence powered environment, where the network is increasingly the core platform for all forms of IT and telecommunications," he said. A strengthening position in unified communications, collaboration, virtualisation and managed services would position the group for medium-term growth. In the longer term, market developments such as cloud computing and services-based models such as IaaS would provide opportunity. Key areas of client demand in the past year were network optimisation, visual communications, IP telephony, virtualisation and consolidation of data centres and Windows for Microsoft 7. Clients focused on maintaining and optimising IT infrastructure as capital budgets reduced. The group benefited from a general trend towards standardisation and centralisation of IT to reduce costs and centralise control. "We reacted to the slowdown in spend in our global client sector by broadening our exposure to clients in the large regional enterprise and commercial segments of the market where we saw relatively better opportunities," Dawson said. (Source: Business Day) Kenya: Safaricom Changes Method of Recruiting M-Pesa AgentsLeading mobile phone provider, Safaricom, is changing tack on its method of recruiting mobile money transfer, M-pesa, agents by introducing a new system known as Aggregator Model, which removes the need to deal directly with sub-agents. In the new model, the appointment of the sub agents will be handled by the agents on its behalf especially in Nairobi and areas that it considers highly saturated by agents. The move is likely to keep doors open for entrepreneurs who may be interested in the sub-agency contract with the mobile firm. Although, the implementation of this model started before the launch of a money transfer service yuCash by its rival, Essar telecom Ltd, their approach in handling the money transfer agents are similar in that both companies plan to deal with a limited number of agents. In the case of Safaricom, it is these agents who will be getting floats from their super agents, normally banking institutions which they have arrangement with, then pass the details to the sub-agents who will then work on agreed commissions by the agents. Essar, on the other hand, has eliminated altogether the need for sub-agents so as to ensure that agents get maximum commission, which it says is yet to be finalised but will be competitive. Safaricom says its move is motivated by the need to protect its partnership with the existing agents. However, this is pegged on the demand for the service and if need be more agents will be recruited. Safaricom chief executive Michael Joseph said the company is convinced that the existing agents have the capacity to serve Nairobi and other areas adequately. "We have begun migrating existing sub-agents under the agency model to Aggregator," said Joseph. "This means a situation where Safaricom appoints an organiasation/agent which in turn appoints sub-agents on its behalf. This exercise has started and should take between 6 to 8 months" In the Aggregator Model, Safaricom and its agents are targeting social places with high traffic such as eateries and entertainment spots. Of late, the company has been enhancing its offering on M-pesa jointly with partners such as the transport sector. Travellers can now book online and pay for flights or bus tickets through M-pesa. 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. (Source: Business Daily) In brief:- Tanzania’s communication sector has emerged as a strong growth-driver of the economy for the year 2008/09. According to the Minister for Finance and Economic Affairs Mr Mustafa Mkulo, the communication sector grew at 20.5 per cent during the period followed by the financial mediation with 11.9 per cent. He said that strong performance of financial intermediation mirrored the effect of the ongoing financial sector reforms, strong growth in credit to the private sector and increased competition in insurance services. - The latest statement from France Telecom indicated that the company had no intention of increasing its offer price of 245 Egyptian pounds (US$44) for the outstanding shares in the Egyptian Company for Mobile Services (ECMS), known as Mobinil. Most observers believe the extended war of words between the two companies is starting to reach a conclusion following FT's threats to pull out of the bidding, only to re-enter with a revised offer. Mobinil is seen as key to FT's Africa strategy, which Lombard has likened in importance to Telefónica's focus on Latin America. - Telecom Egypt (TE) announced the purchase of the remaining 4.95% of shares in its broadband subsidiary, TE Data, from three local Egyptian banks. This takes TE's ownership in TE Data to 100% with immediate effect. - Bharti Airtel Ltd. has received approval from Bangladesh's telecom regulator to invest an initial $300 million in Abu Dhabi Group's Bangladesh telecommunications asset, Warid Telecom International Ltd. The deal comes as Bharti Airtel has been looking overseas for expansion to boost slowing growth at home. It has failed twice to seal a merger with South Africa's MTN Group, with its latest bid falling through in September, because of regulatory hurdles. Telecoms, Rates, Offers and Coverage (briefs)- MTN Nigeria has unveiled a new service called MTN Group Connect. According to Derek Appiah, Chief Enterprise Solutions Officer, MTN Group Connect, would make it possible for telephone users to have seamless conference calls at no extra cost beyond the cost of normal telephone calls. - SMS media, a Ugandan mobile phone information company has joined two international firms to increase the quantity and variety of leisure content that phone users in Uganda can access. The Kampala-based company has partnered with Australian-based Mobile Entertainment Service, and Mobitrans International a Dubai-based content provider to introduce Mozook, an information service delivered via Short Messaging Services (SMS). - In Nigeria, GLO Mobile has introduced a new telephone package, tagged Glo Profit, to boost the revenue earning capacity of Commercial Telephone Operators across Nigeria. The package offer is a prepaid tariff package which charges a flat rate of 25 kobo per second for calls to all GSM networks once the call operator reaches a daily usage of N150 in voice calls. In addition to the reduced call tariff, the new package does not attract any daily rental fees. - A newly launched SMS service will enable students who sit national exams to get their results immediately after they are released by the Uganda National Examinations Board (UNEB). - Nigerian CDMA operator Starcomms has expanded its mobile and fixed services to the cities of Jos and Bauchi, local newspaper Leadership Nigeria reports. Subscribers in the two cities and the surrounding areas are now able to enjoy fixed and mobile telephony, as well as data and value added services. - Mobile operator Zain has announced the expansion of 'Zap', its mobile commerce service to the African nations of Niger, Sierra Leone and in the boundaries of a full commercial pilot in Malawi. The move follows the successful launch of the service in Kenya, Tanzania and Uganda in February.
Tanzania to Track Supply of Malaria Drugs Via SMSA pilot drugs supply management project called "SMS for Life" has Tanzania authorities excited over its potential. The project, which brings together IBM, Novartis, Vodafone and the Roll Back Malaria Partnership, taps into a combination of smart technologies to track and manage the supply of anti-malarial drugs. The concept is the brainchild of students on IBM's Extreme Blue internship programme and uses IBM's LotusLive technology. "SMS for Life" is running in 135 villages and could have far-reaching implications for health systems worldwide. A few weeks after the pilot project kicked off, the number of health facilities with stock-outs in one district alone, was reduced by over 75 per cent. The early success of the SMS for Life pilot project has the Tanzanian authorities interested in implementing the solution across the rest of the country. According to Ministry of Health and Social Welfare senior health officer Winfred Mwafongo, the programme has already had a positive effect in Tanzania. Mwafongo said that the government has seen district medical officers ordering urgent stock replacements for various health facilities and that the SMS scheme will facilitate the urgent need. "During a visit to 19 rural health facilities in one district alone, we saw huge improvements in their inventory management systems. We are impressed with the results so far and look forward to following the rest of the pilot project through to completion," he said. Tanzania has around 5,000 clinics, hospitals and dispensaries, but at any one time, as many as half that number could be out of stock of anti-malarial drugs. The initiative uses a combination of mobile phones, SMS technologies and intuitive websites to track and manage the supply of Artemisinin-based Combination Therapy drugs and quinine injectables, both of which are key to reducing the number of deaths from malaria. Norvatis executive vice president and head of the malaria initiatives Silvio Gabriel said that SMS for Life designed as a public and private partnership leveraging the skills and resources of several companies, could have far-reaching implications for existing health systems worldwide. IBM is managing the overall project while Vodafone developed and is managing the system based on simple SMS messaging that helps ensure dispensaries do not run out of vital stock. IBM, Novartis and Vodafone initiated a five-month pilot of the SMS for Life solution, covering 135 villages and over a million people across Tanzania. Vodafone, together with its technology partner MatsSoft, developed a system in which healthcare staff at each facility receive automated SMS messages, that prompt them to check the remaining stock of anti-malarial drugs each week. Using toll-free numbers, staff reply with an SMS to a central database system hosted in the United Kingdom, providing details of stock levels, and deliveries can be made before supplies run out at local health centres. The Roll Back Malaria initiative draws its strength and experience from hundreds of partners from malaria endemic countries, country donors, companies, non-governmental and community organisations, foundations and research and academic institutions. RBM partners' collective aim is to reduce annual malaria deaths from around one million to virtually zero by 2015 through the implementation of the Global Malaria Action Plan. More than one million people die from malaria each year, and the real tragedy is that malaria is curable. (Source: The East African) Demand for Mobile Phone Skills Surges in KenyaThe growing mobile communications industry is pushing demand for the training of specialised skills as the sector moves to the next level of value added services. eMobilis, for instance, is a new college offering technical courses that seek to empower students with skills which they can use to secure employment in the sector or start their own businesses by creating and selling mobile content and services. Dadiaus Misiari, operations manager at eMobilis, says that the rising demand for third party mobile applications has created an opportunity to develop the requisite technical skills. Such applications include games, advertising tools, mobile car tracking systems, and short message services (SMS). Short code SMS is one of the most widespread services, used by businesses, government agencies and the media for marketing, and managing relationships with customers. Misiari reckons that specialised training in mobile technologies is a new phenomenon in the country that has a chance to grow, riding on the back of increased sophistication of mobile communications. Africa Information Technology Initiative (AITI) offers short courses (about a fortnight) on mobile application development at various local universities using its own curriculum. International ICT associations like W3C are working on standards and best practices for mobile content development. Players in premium rate (value-added mobile services) who spoke to Business Daily said that they develop their human resources internally, signaling the gap in mobile skills training. Stephen Kariuki, general manager at Bernsoft, said the firm looks for people with a background in computer programming who are then trained to create solutions on the mobile platform. Similar sentiments were echoed by Interactive Media Services and Leopard Communications. Kariuki said students receiving quality training from emerging colleges could be hired. "There is room for them, given the fast growth of mobile applications," he said. A three-month course at eMobilis costs between Sh35,000 and Sh40,000. The areas covered include content development, and technologies supporting the global systems for mobile (GSM) platform, the dominant mobile technology in Kenya. Misiari says that students graduating from eMobilis have two options. "The students can develop products which can be sold to mobile subscribers in the region through our agreements with network operators." Alternatively, he said, students can pursue a career with mobile operators or premium rate service (PRS) players. Mobile content development received a boost when a top-level domain -- .mobi -- was approved by the internet regulator ICANN in 2005. The domain name is used by mobile devices accessing internet resources through the mobile web. The new domain name has been praised for enhancing access to mobile internet. Observers say that demand for content and value added services are set to increase as the usage of mobile communications increase. The number of PRS companies has grown to over 20. The firms have been credited with creating pioneering products now seen by telecoms as a key sources of future revenue. For instance, the firms have developed applications that allow people to pay and book for travels by air or bus. Small and medium sized enterprises are also now able to pay salaries through bulk money transfer services. Last year, Nokia launched a contest to spur the development of mobile applications across Africa. Though no local innovators won any of the top five awards at the close of the competition last month, the firm says that the second highest number of entries overall, after those received from South African developers, came from Kenya. Most of the over 125 submissions in the competition came from Africa. The best was a health application which clinched a cash prize of about Sh862,000. (Source: Business Daily)
People- Chairman of Globacom Limited, Dr. Mike Adenuga Jr, has received the Silverbird Man award for 2009. The Silverbird Man of the Year award was conceived and initiated in 2005 to celebrate the Nigerian who, in the past year, most positively touched the lives of other Nigerians. - The Nigerian regulator’s CEO Ernest Ndukwe is leaving NCC next month. There has been no announcement as to who his successor will be but he will be a hard act to follow. 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 OpportunitiesBreaking Borders Award This channel will also serve as a central venue for the Breaking Borders Award which we organize together with Global Voices. We have set up this prize to recognise outstanding webprojects by individuals or groups who have shown courage, energy and resourcefulness in using the internet to promote freedom of expression, making us aware of diverse political viewpoints and standing up to those who censor information. Due to the great interest the Breaking Borders Award has received, we have extended the deadline for the awards until the 15th February 2010. A committee of experts will analyse and announce winners of the prize together with Global Voices Advocacy at their conference in early 2010. Our partners Global Voices represent an excellent organisation of over 200 bloggers and citizen journalists worldwide and are a great partner to have. The prize will honor work in three categories: Tools that promote Freedom of Expression, outstanding work on Policy, and of course Activism or Journalism that contributed an important voice or argument - each awarded with USD $10,000. For further information visit http://breakingborders.net/ CTO 2010 – 2011 Commonwealth Fellows Programme The CTO intends to host more Commonwealth Fellows in 2010 – 2011. The application process will begin in February 2010 and the prospective Fellows are encouraged to monitor the CTO website www.cto.int for further updates. ContractsCanartel and i-conX – Sudan Interconnect billing solutions provider i-conX Solutions has announced it has successfully deployed its i-conX system to Sudanese fixed line operator Canar Telecommunication Company (Canartel) to rate and bill the operator’s domestic and international interconnect traffic. Canartel’s CEO, Ali Bin Jarsh, commented: ‘As the Sudanese market becomes more competitive, so the implementation of a modern interconnect billing solution is recognised as a key requirement for Canartel to maintain its leading status.
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