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 THE ABSA FREE SERVICE SWITCH - FACTS BEHIND THE HEADLINES ABSA is arguing that its dropping of Affinity is as an acceleration of its e-business strategy in response to the great success of the free Internet service. Says Santie Botha, Absa Group Executive Director: "The move is the next logical step in the development of the service and will help Absa to control the acceleration of its comprehensive e-business strategy." Botha indicates that two-year targets for the service were achieved in the first six months since it launched in February this year. Absa says that the value of new business originating from free Internet access is evident in figures such as a 37% rise in new internet banking clients; an average increase of R1.2 billion in online transactions per month and in the fact that Absa’s Web site is now the fourth most visited site on the African continent (Nielsen/NetRatings). The service currently has 150,000 subscribers. An undisclosed amount was paid to Affinity to sever the relationship. Absa will now have to pay for the free Internet service it offers subscribers. ICL, the service provider in the Affinity deal, will continue to fulfil this role with the monies coming out of the Absa e-business budget. The split with Affinity, says GM of group marketing Tasso Tsoukalas, was amicable. Costs for the new service are likely to be less than the normal ISP rate for Internet connectivity. According to Tsoukalas, Absa will spend R35m-R45m in Year One on the project, but this figure includes the payment made to Affinity for the database. In the future, says Tsoukalas, this allocation may also be used to cover costs for new infrastructure and other capex. "The fact that Absa is now paying for the service makes it more imperative that it is able to begin recouping its costs. "But we have to look at each customer holistically," warns Tsoukalas. "This isn’t a quick thing for us, or one where it’s easy to say how much the database is worth in terms of new business. We’re in this for the long haul." (source: http://www.digitalplanet.co.za/dp/news/red.asp?ID=13171 ) EGYPT’S ISPs TO PIONEER FREE ACCESS Everyone is closely watching Egypt’s initiative to offer free Internet access before making their own decisions, according to a senior IT industry source. Beginning early next year, Egypt’s 60 ISPs will not charge customers for basic web access. (source: via The Big Change ORASCOM LAUNCHES NEW CELLULAR SERVICE IN ALGERIA Egyptian regional cellular operator Orascom Telecom has said it will start operating a second mobile phone network in Algeria in January, two months ahead of schedule.Michael Hebert, Orascom’s chief commercial officer, told Reuters the network would have the capacity for 500,000 mobile phone users. The firm, which won the licence in July with a US$737 million bid, said previously it would start operating the licence in March. The firm has awarded France’s Alcatel and German’s Siemens contracts totalling US$533 million to deliver and install its GSM network in Algeria. Algerie Telecom, the state operator of the first phone network has less than 100,000 subscribers. (source: Reuters via DigAfrica) HP OUTLINES ITS STRATEGY FOR MALAWI HP has outlined a solutions strategy for Malawi and has debuted a programme to segment and recognise its channel partners in the region. (source: http://www.itweb.co.za/sections/channel/2001/0109120827.asp ) CONTINENTAL SATELLITE TO CUT INTRA-AFRICAN TRAFFIC COSTS African countries plan to use a continental satellite to reduce the cost of communication. Currently, Africa pays Europe US$400 million annually for intra-African traffic because most of the communication between African countries has to go through Europe. (source: via The Big Change http://allafrica.com/stories/200109190495.html )
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This page last updated on January 28 2004.
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