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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 329 South Africa’s coming convergence may hold lessons for rest of the continentThere has been a recent set of developments in South Africa that bring convergence between the worlds of telecommunications, media and broadcast much closer. Three things in particular – media liberalisation, new technologies to deliver media and yet another project that promises cheap bandwidth – all make it likely that South Africa will become the first fully converged market on the continent. Russell Southwood has spent the last two weeks talking to the players and trying to understand what lessons these developments might hold for the rest of the continent. When trying to illustrate the difference between a content deliverer and being a content player, I have in presentations referred jokingly to the possibility of Telkom TV. Nervous titters usually follow. The lesson is never joke about these kinds of things as they sometimes come true. Telkom is one of eighteen bidders (see Convergence News below) for a chance to compete with the current pay-TV monopoly of Naspers-owned DSTV. It is said to be investing a US1bn and foresees attracting as many as 2 million subscribers. It has teamed up with a well-known producer, Videovision Entertainment’s Anant Singh who was responsible for producing the South African film Serafina. Singh is already out buying much-needed international content. It is also teamed up with MSG Africa Media and Women Development Bank Investment Holdings to apply for a commercial satellite and cable subscription broadcast licence. A variety of sources inside South Africa’s least favourite phone company indicate that there is a degree of ambivalence about betting a large part of the farm on a media venture. Interestingly, it is even being described publicly as a defensive strategy to prevent others seizing any of their market share. Other players lining up to take on DSTV include: Sentech and SABC; e.tv-owned E-SAT; WorldSpace; Max TV (a UK-based shopping channel); Black Earth Communications (from Botswana); Walking on Water (believed to be a Christian evangelist station); powerline broadband technology company, Goal Technology Solutions (in which Miko Rwayitare recently acquired a 65% share); Quantic TV Network, Multichannel Television, Ondigital Media. Kheta Media, Q Digital Cable Vision, MiDigital and African Spirit Trading 330. Regulator ICASA has consciously not limited the number of likely licences to be awarded and it is likely that the field will grow less numerous as the costs of actually providing a service kick in. The main obstacle to market development has been the high subscription charged by monopoly provider DSTV: US$63.65 a month (and higher outside of South Africa). Also wherever competitors have sprung up elsewhere in Africa, its lock-down of key international content has thus far defeated all comers. A legal challenge in the Nigerian courts was also unsuccessful. But lower prices could mean a market as large as 3.5-4 million, up from the million plus currently held by DSTV. As one conference participant told me:”Multichoice is actually Unichoice. It’s curbing choice to the consumer and it’s too prescriptive.” When I spoke to Multichoice Africa’s Communications Manager at the Africa Media and Broadcasting Conference Marilyn Watson, she told us:”We welcome competition. The more people in the industry, the bigger it is.” The parallel development has been the testing of mobile TV using DVB-H prior to the launch of commercial services. In the Intelsat Connections sales event, Multichoice executive Gerdes Van Eeden said that its current test involved 15 transmitters covering large areas of the Gauteng metro area, Johannesburg and Pretoria and an extended area including Soweto, Cape Town and Durban. He said he believed that the move to IP was unstoppable and that “IP will become the ubiquitous bearer.” Indeed the South African Government has plans for television to go completely digital by 2015. The DVB-H service has been in pilot trials since November 2005 with mobile provider MTN. Its announcement that it was launching the first commercial service was rather spoiled by local journalists asking whether it had a broadcast licence. It emerged that it did not but that it had every intention of getting one and that this was only a trial with no money being taken. A DVB-H-enabled phone was being passed around at the Africa Media and Broadcasting conference and I have to report that the picture is pin-sharp and the sound very clear. We had been joking about how difficult it would be to follow something like golf: the small screen equivalent of a “spot-the-ball” competition. But there goes that lesson again. Never joke. For even on a small screen you could see the small white ball all too clearly. In her conference presentation, CEO of DSTV’s M-Mobile subsidiary, Linda Vermaas said that 5-6 serious players were likely to emerge once the service went commercial. Handsets needed to be 3G and DVB-H enabled: MTN was promoting the Samsung P910 for use with this service. Transmission by DVB-H gives between 12-23 channels depending on the graphic complexity of what’s being transmitted. The trial involves several thousand subscribers. She said that while there was room for “made for mobile” content, the majority of the test material was either existing TV content or reversioned TV content. She seemed sceptical that advertising would make much of a financial contribution. For those looking at this opportunity, there are broadly two ways to go: build a DVB-H transmitter network in partnership with a mobile providers or as a content provider offer your content to an existing mobile company. The latter is complex and may not be highly financially rewarding. A speaker at GSM Africa pointed out that the mobile content value chain had at least seven parties in it and was very hard to get it to work properly and not always financially rewarding. Simon Guild, CEO, MTV Networks Europe snorted when I repeated this and said there were often many more players in the value chain. So what does it cost to build a DVB-H transmission network? M Mobile’s Vermaas was cagey, making all the usual caveats about size of transmitter but did say that it had cost “hundreds of thousands of rands per transmitter” depending on the signal strength. Since most of mobile TV use elsewhere was while on public transport, South Africa represents a particular challenge. Anyone familiar with the volume of traffic on South Africa’s roads knows that the majority means of transport for the potential mobile TV subscriber is a car. Therefore will he or she risk life and limb to watch in the car (perhaps while stuck on the freeway to Pretoria) or simply not use the service as much? The Government may well be building the Gautrain in anticipation of the World Cup in 2010 but will it really make much of a dent on the car habit? (Apparently 3Italia launched during the World Cup and attracted 111,000 subscribers to its DVB-H service. Current international services are costing US$8-10 for 10-12 channels.) Vermaas said that mobile TV rights were considered to be broadcast rights but that the whole area of rights was “murky”. And she was followed by a speaker from the floor who illustrated the point by saying she had been sued by rights holders because she had re-used material in another context. The representatives of two key rights holders – film and music – illustrated the difficulties of unlocking the rights issues. Big media is generally speaking a greedy, nervous nelly when it comes to new media, a fraught combination that will hold up market development. Speaking for film, Nu-Metro Home Entertainment CEO Fay Amaral took the view that there was much to learn from the way pirates distributed film (they are probably half of the market in South Africa) and that the consumer wanted film when he or she wanted it, where they wanted it and at a price they wanted. She spoke in favour of simultaneous global release but admitted her influence in what she described as a “raging debate” was limited. It was particularly difficult to get film prices as cheap as might be needed to sell them online. Speaking for music, Tracy Fraser, Marketing Director of Warner Music Gallo Africa when asked about rights was not specific but said that Warner was known for charging high prices. On online, she seemed to be content to follow on behind. The perils of this strategy are highlighted by a hilarious review of Pick ‘n Pay’s music site by Ivo Vegter in Brainstorm’s October issue. The bottom line? Low functionality and almost no catalogue in depth. A significant number of speakers at the Africa Media and Broadcasting Conference, prefaced their enthusiasm for converged services by saying “when much cheaper bandwidth is available.” They may yet have some relief on that front. Something like EASSy will be built in the next two years and bandwidth will fall below the $1000 per mbps per month and in the longer run fall to $500 per mbps per month. At these prices, a services and applications market will spring up and start to grow. Intriguingly, the newly launched Government owned Infraco (see Internet News below) is saying that it will lay a fibre cable financed as a public-private partnership. South African Government officials have met with Tata, owners of Neotel. The proposed submarine cable would land at the Mtunzini landing site, the same place as for the East African Submarine Cable System, and then transverse southwards around Cape Point and onto the Azores islands to meet up with other international systems. It would skip the Telkom-controlled SAT-3 cable, landing at Melkbosstrand, near Cape Town. South Africa is one of the shortlisted competitors for a radio telescope project and this would require a considerable amount of international bandwidth, on a scale that is currently not being envisaged by existing fibre operators. So what are the lessons for the rest of the continent? Just as with telecoms and Internet liberalisation, media liberalisation will bring investment, much needed competition and lower pay-TV prices. I spoke to one of the South African bidders who was very clear that it would compete in the rest of Africa but said:”First we have to walk before we run.” Liberalising media is dangerous medicine for countries like those in North Africa (or indeed Kenya on occasions) where an independent media with many different voices is not appreciated by the insecure but powerful in Government. Nevertheless the prize is considerable for media liberalisation would bring much needed content production and design skills, vital if Africa is to compete in the global economy. The newer mobile TV technologies are expensive and may seem irrelevant to smaller, less wealthy markets. It’s hard to imagine someone sitting on a matatu with a $200 phone watching mobile TV. But personal observation tells me that middle class Africans like facility-rich phones as much as the next person and often buy them even when the network does not support them. Also secondhand 3G phones will be coming to the continent once existing users upgrade in about….the next five and half minutes. The post-paid percentage of subscribers (usually 1-2%) gives some idea of numbers and broadcast image services may well fare much better than text. Making the numbers work will be a case of finding the right price. Interestingly, DSTV sold 400,000 set-top boxes in Nigeria but only has 100,000 paying subscribers. It’s the three Ps all over again. Price, price and price. But the point at which international bandwidth tips below the $1,000 mark is really when services and applications markets will get moving. I once watched a group of ISP people in Senegal with access to free high capacity bandwidth. What were they doing? Downloading future episodes of American TV series they were already watching on pay-TV. See you in the new African converged future and bring some content with you.
NEW MTL MANAGERS UNVEIL RECOVERY PLANS IN MALAWINew managers from Detecon of Germany—the technical partner in the Press Corporation Limited (PCL) led consortium that bought the privatised fixed phone operator Malawi Telecommunications Limited (MTL)—said on Thursday they are preparing a business plan geared at transforming MTL for the benefit of both the shareholders and customers. MTL chief executive officer Horst Holzhaeuser told journalists in Blantyre there are a number of areas that need to be addressed in MTL’s present state to make it more efficient.For instance, Holzhaeuser said has on its pay-roll scores of security guards despite not being a security company. He also singled out the company’s big vehicle fleet as another area requiring better management. “To achieve results there is need to make some harsh decisions. We are preparing a business plan which will be the basis for further investment in MTL to take it to greater heights. By mid next year the MTL network will be different from what it is today,” he said. Holzhaeuser was briefing journalists during a luncheon the company organised to introduce its new management team and brief the media on the position of switching to the new telephone exchange in Blantyre. In his remarks, Hoehne noted that there was still a pre-privatisation hangover in MTL manifested by red tape, poor billing system and a poor network roll-out plan. He said in some cases the network was rolled out in areas with less capacity at the expense of areas with huge business potential and vice-versa.Looking into the future, Hohne said during the two months the managers from Detecon have been at MTL there has been an improvement in installation capacity from the previous 15 to 20 per day to 100 in a day. This has translated into 3,000 new clients in a month, he said.He also said MTL was improving on fault clearance speed. (SOURCE: Nation Online) AFRICAN OPERATOR HELPS PIONEER USE OF BIOFUEL AS POWER SUPPLYSouth Africa’s MTN Group, the GSM Association and Ericsson have teamed up to establish biofuels as an alternative source of power for wireless networks in the developing world. The three organisations have set up a pioneering project in Nigeria to demonstrate the potential of biofuels to replace diesel as a source of power for mobile base stations located beyond the reach of the electricity grid. In a pilot project, supported by expertise and funding from the GSMA’s Development Fund, Ericsson and MTN are setting up a pilot biodiesel-powered base station solution in Lagos and will later deploy biodiesel-fuelled base stations in rural regions of south eastern and south western Nigeria. The three organisations are setting up a supply chain designed to benefit the local population by sourcing a variety of locally produced crops and processing them into biofuel. Groundnuts, pumpkin seeds, jatropha and palm oil will be used in the initial pilot tests. Biodiesel has several important advantages over conventional diesel as a power source for base stations. Biodiesel can be produced locally, creating employment in rural areas, while reducing the need for transportation, related logistics and security. Biodiesel has a much lower impact on the environment than conventional diesel. The cleaner burning fuel results in fewer site visits and also extends the life of the base station generator, reducing operator costs. “The early adoption of biofuel-powered mobile networks would place Africa at the forefront of a new wave of innovation that is making mobile communications affordable and accessible across the developing world,” said Karel Pienaar, chief technology officer of the MTN Group. The GSMA and Ericsson will draw on the findings of the pilot to help operators across the developing world determine whether they can use biodiesel to power their networks in rural areas. (SOURCE: ITP) VODAFONE FREES UP VODACOM TO COMPETE ACROSS ALL OF AFRICAIn a breakthrough that will finally allow Vodacom to compete with rival MTN on the African continent, Vodacom's 50%-owner, UK-based Vodafone, has given an "in-principle" commitment to alter its shareholders' agreement to remove "impediments to Vodacom's growth". Nomazizi Mtshotshisa, chairwoman of Telkom, which owns the other 50% of Vodacom, will meet Vodafone this week to discuss a new shareholders' contract. Telkom has already drafted a new shareholders' proposal that will be put to Vodafone. Until now, Vodacom's expansion has been impeded, particularly in Africa, because of the shareholders' agreement that prevents the company from expanding outside southern Africa. The reason for the agreement was that Vodafone had designs of its own on Africa, and did not want opposition from Vodacom. Vodacom has simply had to look on as rival MTN tied up many lucrative deals further north. MTN not only has a thriving business of 9,6-million subscribers in Nigeria, but it also gets 52% of its profit from outside southern Africa. Although Vodacom tried recently to launch its business in Nigeria, this was only because Vodafone had provided an exemption to the shareholders' agreement. "We are meeting with Vodafone this week to discuss how to amend that shareholders' agreement. They have agreed already," Mtshotshisa said at Telkom's annual general meeting on Friday. She said it had "been agreed with Vodafone that we will amend the shareholders' contract so as to not impede Vodacom's growth". Telkom's new draft proposed a number of changes to the original contract "because there were a number of issues that were impeding Vodacom's growth". Beyond the proposal for Vodacom to be allowed to expand outside southern Africa, Mtshotshisa said she did not want to discuss Telkom's other proposals until she had met with Vodafone. "We have a draft and they have a draft," she said, confirming that Vodafone had already given an "in- principle" agreement to the changes. The negotiations between Vodafone and Telkom are an important step, given the speculation that there had been frosty relations between Vodafone and Telkom. In a landmark deal last year, Vodafone paid an effective R16bn to buy another 15% of Vodacom from investment company Venfin. This increased Vodafone's share of Vodacom to 50% from its earlier 35% but with both parties holding an equal share of Vodacom, reports of a boardroom tussle emerged between Vodafone and Telkom. Media speculation suggested recently that Vodafone was even looking at buying Telkom. Mtshotshisa said on Friday this was not the case. She said that following the speculation, Telkom had approached Vodafone to ask it whether it was indeed looking to purchase Telkom. "They told us they were not, that they were happy with their half of Vodacom." During the meeting, shareholder Arthur Lello said that if Vodafone was not keen to let Vodacom expand, then Telkom should buy out Vodafone's 50%. But Mtshotshisa said that about two years ago Telkom had approached Vodafone to buy its 50% stake in Vodacom in "informal discussions", and the UK company was not prepared to sell. She said Vodafone "still wants to be a player in Vodacom". (SOURCE: Business Day) BATTLE LOOMS IN TELECOMS INDUSTRY IN ZIMBABWEAn attempt by the government to rescue TelOne from collapse by forcing other mobile cellular operators to share their international traffic revenue could result in renewed legal battles in the industry. The Ministry of Transport and Communications has gazetted a statutory instrument requiring mobile phone companies to route their international traffic through TelOne from the end of this month. The ministry has already summoned the telecoms regulator to implement the law with effect from 1 November 2006. Although the statutory instrument was gazetted more than six months ago without prior consultation, all the mobile operators made representations to the regulator claiming it was legally flawed and was a violation of their licences. The licences allow them to operate international gateways for traffic to and from their own networks. The regulator then agreed to suspend the statutory instrument until it was amended. But matters came to a head when TelOne recently failed to settle a US$700 000 bill for international access, and the ministry ordered the regulator to implement the statutory instrument before it was amended. "This is in spite of the fact that a committee of the National Economic Development Priority Programme (NEDPP) meeting to look into the telecommucations sector had also concluded that the objectives of the SI were not the correct way to deal with the issue," said an industry source. "This could set the stage for fresh confrontation which could lead to renewed legal battles," he told Standardbusiness on Friday. Another telecommunications expert said the real problem was deeper than simply the issue of international termination rates. At present, there are three mobile operators in Zimbabwe, with Econet the largest, with a capacity of more than 800,000 subscribers. The company intends to shortly release new lines. Telecel has about 130,000 subscribers. TelOne and Netone currently have a combined subscriber base of about 600,000. This means that the private sector is currently providing the majority of the telecommunications services in the country. Even in areas like public community payphones services, which one would have considered the domain of the State-owned sector, which are supposed to have less profit emphasis, Econet and Telecel provide more than 90% of all community payphones. A spokesman for Econet Wireless Zimbabwe was reluctant to discuss the issue but confirmed initiatives were underway to resolve the issue. (SOURCE: Zimbabwe Standard) CHINA SUPPORTS SECOND PHASE OF NIGERIA RURAL TELEPHONY PROJECT WITH $300MIn an address to the 'Connecting Rural Communities Africa 2006' conference in Abuja-Nigeria, new Nigerian communications minister, Dr. Obafemi Anibaba, and Director of the National Rural Telephony Program, Mr. S.S. Ahmed, stated that: Following connection of around 280 rural communities to the PSTN in Phase 1, the Nigerian government is now ready for Phase 2 of its rural connection program. The government has signed a memorandum of understanding with the Chinese government, including funding arrangements of $300 million, on the basis that Chinese telecommunications companies would be involved in the implementation of the project. The MoU on the loan from the Chinese government and participating financial institutions was signed in April 2006, but negotiations continue. Three firms listed for the second phase are Chinese firms ZTE, Alcatel Shanghai Bell and Huawei Technologies, proposals from whom have already been studied and adopted for implementation. KENYA AWARDS SNO LICENCE TO DUBAI’S VTELKenya on Friday awarded a long-delayed second national telecommunications (SNO) licence to a consortium led by Dubai-based VTEL, hoping to lower prices and boost competition against the state-owned operator. VTEL, which has partnerships with local companies and a technical partnership with Palestinian PalTel , won the unified licence that includes fixed-telephony, mobile service, Internet and data. VTEL bid $169.7 million beating India's state-run Mahanagar Telephone Nigam Ltd and Reliance Consortium which included Swedtel of Sweden as the technical partner. MTNL bid $52.1 million while Reliance put forward a $111 million bid. The three had remained in the race from 13 companies which expressed interest when CCK invited bids in May. CCK said it would publish its intention to give VTEL the licence and then allow two months for any party to bring objections before the licence is finally granted by late January. The winner is expected to start operating within a year. VTEL said it hoped to quickly roll out next generation network in Kenya, moving on both fixed-line and mobile business. 'Our strategy is convergence. Mobile alone eventually will not survive, fix (fixed line) alone will not survive. We need to put them together,' Nour Atout, VTEL's CEO for Africa told reporters. He said Kenya would be one of VTEL's first operations in Africa but was targeting two or three other countries. (Source: http://www.investsmart.in/)
IN BRIEF:- Telecom companies from Egypt, Italy, India, Saudi Arabia and the UAE plan to build a submarine cable linking Europe to India through the Middle East, Reuters reported citing a statement by Telecom Egypt. The cable would have a design capacity of at least 2,560 gigabits a second. Construction contracts will be awarded by the end of 2006. - Members of the telecommunications group of ECOWAS met this week in Bamako to discuss further how to establish a mobile roaming system among ECOWAS member states that would help harmonising roaming charges and encourage mobile usage when travelling. - Orange, the French mobile company has announced that it is moving its customer service activity dealing with its prepaid Mobicarte service to Morocco. TELECOMS, RATES, OFFERS AND COVERAGE- Netone in Zimbabwe is set to commission its second Mobile Switching Centre in Bulawayo mid-next month among other moves the cellular services provider is embarking on to improve service delivery. The company will be commissioning its second mobile switching centre mid November and is also constructing 85 towers which are at various stages of completion in different parts of the country," the sources said. - i2, a mobile provider in Africa and the Middle East (distributor on Nokia) announced the launch of its operations in Sudan. i2 introduces its retail concept and after sales services for the first time in the country. “Africa is an important market for i2. It is our goal to make sure that Africa’s growing market is provided with the best products and services available. Therefore we are planning to continue making substantial investments into Sudan and other countries across the continent” stated Bashar AlKadhi, VP Africa - i2 Group. - The Senegalese newspaper, le Matin, has reported disruptions on the telephone network this week. Customers have experienced difficulties to get their calls through to Dakar while others reported that they got connected to voicemail only. The newspaper seems to dismiss the fact that these network congestion problems were linked to the Korité celebrations despite previous problems with network overload during celebrations. - Contacts Malawi has embarked on a project to compile a directory for all telephone numbers from service providers like Celtel Malawi Limited, Telekom Networks Malawi and Malawi Telecommunications Limited ). The compilation is also expected to include e-mail addresses, fax numbers and physical locations of businesses in the country.
SOUTH AFRICAN GOVT TO CREATE OWN BROADBAND PROVIDER IN SOUTH AFRICAGovernment planned to create a broadband infrastructure company based on the long-distance, fibre-optic network developed by Eskom and Transnet, Public Enterprises Minister Alec Erwin said last week in a written reply to a parliamentary question. The formation of the company, provisionally called Broadband InfraCo, is intended to reduce rapidly one of the key costs of broadband, namely national long-distance connectivity. Erwin said the company's formation would fast-track the emergence of a globally comparable information and communications technology (ICT) market in SA. While liberalisation would achieve this over a few years, InfraCo would achieve it by early next year, he said in reply to Democratic Alliance communications spokeswoman Dene Smuts. Liberalisation of the local telecommunications market was decreed by Communications Minister Ivy Matsepe-Casaburri earlier this year to allow private operators to provide more services. "InfraCo will be specifically focused on long-distance infrastructure, and will not be involved in the urban or last-mile infrastructure, where the Electronics Communications Act will promote strong competition," Erwin said Broadband InfraCo would be registered as a schedule two public company under the Public Finance Management Act, he said. It would be a commercial enterprise with a strategic intent designed to deliver a return to fund its expansion but with no intent to maximise profit. "The move is expected to result in a rapid movement towards an international comparable ICT market, where operators compete for customers based on service and prices, while using significantly common infrastructure." Erwin said that internationally, ICT infrastructure was increasingly treated as a commodity with "differentiation being achieved through services and or content offerings". Three challenges had to be addressed for SA to participate in the global information communications technology sector: limited access to and the high cost of broadband in SA; the lack of international competitiveness of broadband; and the digital divide between the first and second economy. (SOURCE: Business Day) INTERNET ACCESS ON THE INCREASE IN MOZAMBIQUEThe number of Internet Service Providers (ISPs) in Mozambique has grown dramatically, implying an enormous increase in the past few years in the number of companies, institutions and individuals with internet access. The general manager of the regulatory body, the Mozambican National Communications Institute (INCM), Luis Rego, told AIM that at the end of the 1990s, there was just one ISP in the country - the Eduardo Mondlane University. But today there are more than 20, in what has become an expanding and fiercely competitive market. However, internet services are heavily concentrated in Maputo, with some of the ISPs reluctant to expand to smaller cities, on the grounds that the demand there is not sufficient, or the electricity supply is not reliable. The latter argument, however, no longer holds for any of the provincial capitals, which are all linked to the national electricity grid based on the Cahora Bassa dam. Rego was speaking during a break in a Technical Telecommunications Meeting of the Community of Portuguese Speaking Countries (CPLP), held in Maputo to exchange experiences on regulatory matters, universal internet access, broad band, and satellite networks, among other questions. It is difficult to establish how many Mozambicans use the internet. Clearly only a small minority have been able to purchase their own computers and thus have internet access at home. But many more can use the internet at their workplaces, or in the increasing number of Internet cafes dotted around the country. The Eduardo Mondlane University estimates that 600,000 people (out of a total population of around 19 million) currently have Internet access. The INCM hopes that more ISPs will provide services in the smaller towns. The leader in this field is the company Teledata, which now operates in all provincial capitals, and several districts. (SOURCE: Agencia de Informacao de Mocambique) WILL LOCAL ADVERTISERS FOLLOW SA INTERNET USERS OVERSEAS?South African Web users are flocking to international social networking sites such as MySpace and YouTube, which means that these Web sites offer local marketers a host of exciting new advertising opportunities. That’s according to Jacqui Boyd, media director at Acceleration. She says that social networking sites such as MySpace, YouTube, Friendster, LiveJournal, LinkedIn, Flickr and FaceBook continue to grow fast and already rank among the most popular sites on the World Wide Web. “Our research shows that these Web sites are attracting millions of page views from South African Internet users each month. MySpace and YouTube already rival the largest local portals for popularity among South African Internet users, with more users discovering them with each day that passes,” says Boyd. The trend underlines how important it is for South African advertisers to keep the global nature of the Internet in mind when they are planning and executing their online campaigns, she adds. Social networking sites have turned into a big business in the US, with some market watchers predicting that they could eventually become bigger and more heavily trafficked than search heavyweights, Google and Yahoo!. Google recently bought popular online video site YouTube for $1.65 billion in stock to propel itself into the social networking world. Marketers will spend about $280 million on advertising and marketing on US networking sites this year, which is expected to grow to nearly $1.9 billion by 2010, according to eMarketer. YouTube users download more than 100 million videos (many of which are short videos created by the site's users) each day from the site. MySpace, already the sixth most popular Web site on the Web, hosted more than 100 million member profiles by August this year. MySpace’s 30 billion page views are second only to Yahoo. “South African brands can target local users on international social networking portals with geo-targeting. Apart from traditional banner adverts, most social networking portals also allow advertisers to target registered users that fall within a specific demographic such as age group,” says Boyd. “Social networking sites also allow companies to sponsor specific categories or types of content that are aligned with their brands or likely to attract people within their target markets. For example, a company might want its ad to be served to users who download Paris Hilton or Madonna music videos,” Boyd adds. “Social networking sites are certainly no longer the exclusive domain of teens, although age demographics vary widely between the various portals” says Boyd. Boyd notes that more than half the visitors to Myspace are now 35 or over, up from less than 40 percent last year. The proportion of the audience aged between 12 and 24 has fallen to 30 percent from 44 percent, according to a recent comScore Media Metrix survey. Concludes Boyd: “Some local brands are already experimenting with social networking sites with some of their online advertising budget and are surprised at just how many South Africans are using these sites to communicate with friends, create content, entertain themselves and access information. For the right brand, devoting some of the online budget to social networking sites can provide great returns.” (SOURCE: MyADSL) IN BRIEF:- The South African wireless ISP iBurst says it is still considering its options for using its WiMAX spectrum. The firm currently uses proprietary technology to provide wireless broadband services but is also trialling a WiMAX network. Local news website MyADSL reports that iBurst is particularly interested in using WiMAX for backhaul connectivity rather than end-user links. iBurst is one of four 3.5GHz licensees in South Africa along with Telekom, Neotel and Sentech.
ENGAGING POLICY-MAKERS AND REGULATORS IN AFRICA - THE CATIA EXPERIENCEFor the past three years the Catalysing Access to ICTs in Africa programme (CATIA) has worked towards strengthening the context for the vibrant adoption and use of ICTs in Africa. The programme has been set up with nine components, each with its particular advocacy aim, in countries as diverse as Ethiopia, Kenya, the Democratic Republic of the Congo and Senegal. CATIA has shown that one of the most effective ways to have an impact on the ICT policy landscape in Africa is by collaborating in multi-stakeholder processes, where experiences, perspectives and resources can be shared, and a common agenda shaped. Equally important, however, is how advocates engage policy-makers and regulators. These experiences have been documented in an article entitled 'checks and balances', which can be downloaded off the CATIA website (www.catia.ws). Some of the key findings are: - The distinction between policy-makers and regulators is not clearly felt in some countries in Africa. Reasons include a lack of 'checks and balances' or political instability, amongst them. Even in liberalised environments, such as Kenya or South Africa, the independence of a regulator can be challenged by the state; - Policy-makers and regulators are key to any ICT policy advocacy process. However, having a policy influence may mean targeting influential officials in government who may not be policy-makers or regulators themselves; - The direct involvement of policy-makers and regulators in activities is an important way of ensuring the sustainability of advocacy initiatives. Advocates need to provide policy and regulatory officials with a sense of buy-in and confidence in their work. Advocates need to demonstrate that they are serious; - Developing informal relationships are often more effective than formal engagements; - Advocates need to nurture a culture of 'honest brokerage' so that their work can be trusted in a policy development environment where there are many competing interests. DIGITAL FINGERPRINT RECORDS READY SOON IN SOUTH AFRICAThe home affairs department has almost completed the conversion of about 30-million hard-copy fingerprint records into digital images, says Deputy Home Affairs Minister Malusi Gigaba. The digital format will allow for faster and more accurate identification of people. "It's going to improve service delivery and fight crime. I'm warning the criminals to be aware," Gigaba said yesterday. The back-record conversion project started in 1996. It forms part of the department's national identification system (Hanis) project, which aims to enable the department to address the service delivery requirements within its different business areas through modern technology. "This is a very important element of the Hanis project. It will make it easy for us and the police to verify the details of persons," Gigaba said. The project should improve the image of the department, which has often been criticised for its inefficiency, fraud and corruption. Gigaba said the project would help eliminate identity-document fraud, which he described as "very big". Officials would be able to electronically scan people's fingerprints and be able to check their details or if identity documents belonged to them. The electronic system would also make it easier for department employees to call up the records of an individual when applying for a passport or marriage certificate. The system would benefit other departments, such as safety and security, correctional services, and the National Intelligence Agency (NIA). In terms of an agreement with the safety and security department, a few employees would have access to the department's database to verify the details of an individual for the police. Gigaba said NIA access to the system would be restricted, and relate only to its field of work. "People have rendered their details to us in hope that we will keep them confidential," he said. It would help the correctional services department in clearing up the identities of inmates. Prisons have had to deal with inmates who claim not to have identification, or others who have given authorities false names. The department has also discovered that some inmates have more than one identity document. Gigaba said that the system would also be able to verify quickly if a person arrested for being an illegal immigrant was a South African. (SOURCE: Business Day) MPS TO INVESTIGATE SHS2 BILLION NAKASEKE TELECENTRE PROJECT IN UGANDAParliament is to investigate the circumstances under which the government handled the procurement of the multi-million Nakaseke Telecentre project. The chairperson of the Parliamentary Committee on Information and Communication Technology (ICT), Mr Edward Baliddawa Kafuufu (Kigulu North), said the committee has agreed to carry out a value-for-money audit of the project. "It's true we visited the area, and members of the committee were not satisfied with the facilities available at Nakaseke telecentre," Balidawa said. "We have decided to carry out an immediate audit for the project to help Uganda benefit from such ICT facilities. All stakeholders will be summoned to the committee." Ms Nabilah Ssempala (Kampala Woman MP), a member of the committee, said that over Shs2.2b, was spent on the project. "We were shocked by what we found on the ground. The facilities available cannot be worth Shs2b," she said. The Telecentre began operating in March, 1999 through a partnership between the Uganda National Commission for United Nations Education and Scientific Organization (Unesco), Uganda Public Libraries Board (UPLB) and the Uganda Communications Commission. Initial sources of funding were Unesco and International Telecommunication Union and the government of Uganda. From the outset, other institutions within the country were regarded as potential ICT players in the country. The telecentre, however, is supported by grants, donations, partnerships, taxes, and fees charged for services. As of the fiscal year 2000/2001, all students in the Nakaseke sub-county were required to pay a tax of Shs900 per year in addition to their tuition fees. Income from the tax is to be applied to the Telecentre's operational budget. This strategy was estimated to bring in over Shs4 million. The Nakaseke telecentre was one of the three major telecentres meant for the development of ICT in the country. The other two telecentres are Buwama in Mpigi and Nabweru in Wakiso. (SOURCE: The Monitor) ELECTRONIC COMMERCE SHOW POTENTIAL IN MOROCCOThe development of electronic commerce in Morocco is dependent upon increasing the number of merchant sites, improving internet access and the active involvement of banks. While still in its early stages, the concept shows a lot of potential in Morocco. The only current platform is Maroc Telecommerce, which was created in 2001 by banks BCP, BMCI, Crédit du Maroc, and SGMB, along with internet technology service and engineering company Intelcom. The platform handles around ten merchant sites selling services such as airline tickets, craft products, administrative services for businesses, hotel accommodations, and car rentals. This year has also seen the online launch of several business-to-consumer sites, which have merchant galleries, but no online payment. Hypertechmaroc.com is an example of such a site. "For the moment, our merchant site dedicated to information technology products has adopted the traditional principle of payment on delivery of the merchandise," says Soufian Aboulfaouz, general manager of Sicodex, the company which manages the Hypertechmaroc gallery. Moroccan-German company Von Trebber has positioned itself in the business-to-business sector, offering opportunities for its network of retailers to order a varied range of information technology accessories online. Despite the unsteady progress of the market to date, Samira Gourroum, technology manager for Maroc Telecommerce, says electronic commerce could develop in Morocco through concerted voluntary action on three levers for growth. The levers are development of the range offered by merchant sites, increasingly wide access to the internet and involvement of banks through the issuing of payment cards. Up to now, Moroccan banks have shown very little interest in electronic transactions because the number of credit card holders is small compared with the number of debit cards issued. At present, the number of credit cards in circulation is no more than 200,000 compared with more than two million debit cards in circulation across Morocco. Banks' reticence about electronic commerce can be seen in the limited number of banks (Banque Populaire, BMCI and BMCE Bank) offering internet payment services for certain categories of credit card. The future of electronic commerce in Morocco will also be affected by the involvement of large-scale operators able to offer mass-consumption products at attractive prices, such as airline tickets and bill payments for telephone, water and electricity services. (SOURCE: Mhagarebia) RWANDA'S KIGALI INSTITUTE IN FINANCIAL DIFFICULTIESRwanda's oldest science institution is facing a cash crunch due to a considerable debt — allegedly the result of embezzled funds. According to the Rwandan newspaper The New Times, the Kigali Institute of Science and Technology (KIST) has accrued a debt of about Frw300 million (US$0.5 million), and may not be able to obtain a loan to stabilise its finances. The paper reports that money was fraudulently withdrawn under the authority of several institute officials. The debt has forced the new rector Chrysologue Karangwa to freeze all the institution's bank accounts, as well as the budgets for minor activities. Karangwa took over from the previous rector, Silas Lwakabamba, who moved to the National University of Rwanda nine months ago. But the rector in charge of finance and administration at KIST, Gerard Nyabutsitsi, denied reports that the institution is facing bankruptcy, although admitted there is a financial crisis. He blamed the situation on the Rwandan government, saying that funding for the institution is inadequate, and contrasted this with previous funding from the UN Development Programme and the German development agency, GTZ. Nyabutsitsi adds that when 1,000 management students were transferred from KIST to the School of Finance and Banking in January, millions of Rwandan francs were lost in school fees. The transfer was a government move to redirect KIST back to its core mission of training scientists. And in an interview with SciDev.Net, a KIST official also denied that the institution is facing bankruptcy, saying that any statements related to KIST being bankrupt are unfounded rumours. KIST is Rwanda's oldest technology-focused institution, established in 1997 to address the lack of skilled technicians, engineers, and scientists in Rwanda that resulted from the 1994 genocide. Last year the institute won an Ashden Award for its work on small-scale sustainable energy projects. (SOURCE: Science and Development Network) BOOST TO NEPAD FROM THE GATES FOUNDATIONA US$600,000 grant to the science and technology office of the New Partnership for Africa's Development (NEPAD) will help improve the advice it gives to the African Union and the African Ministerial Council on Science and Technology. The grant was approved last week (12 October) by the Bill and Melinda Gates Foundation. Hassan Abdel Aal Moawad, of the National Research Center in Cairo, Egypt, told SciDev.Net that the grant will help Africa manage its scientific knowledge "by producing locally-prepared and African needs-oriented scientific studies, which the African continent is in an urgent need of". Moawad, who is a former president of Alexandria's Mubarak City for Scientific Research and Technology Applications, added that he hopes this grant will develop into a long-term funding commitment. John Mugabe, head of the NEPAD office of science and technology, said: "This grant will enable us to carry out a set of activities over a period of six months so as to prepare comprehensive studies and develop proposals for long-term funding". Speaking in Washington DC at the second annual meeting of the Grand Challenges in Global Health Programme of the Gates Foundation, Mugabe emphasised the importance of building strong foundations for science institutions in Africa. "Confronting Africa's health challenges and securing this millennium's technological opportunities require sustained investments in the production and use of scientific knowledge." The Gates Foundation plans to work with NEPAD to develop regional regulatory frameworks for clinical trials, strengthen the participation of African universities in international science programmes, increase the involvement of the diaspora in the implementation of African technology projects, and strengthen African political leadership for science and technology. (SOURCE: Science and Development Network) IN BRIEF:- The Nigerian Federal Executive Council on October 25 approved $10m for the immediate take-off of the Computer for All Initiative, a government programme in partnership with Microsoft and Intel aimed at enabling public servants in Nigeria acquire computer desktops and laptops at subsidized rates.
GHANAIAN SHAREHOLDER TUSSLE - AREEBA BATTLE TO BE JOINEDRuling on arguments to set aside an action against Areeba by a Ghanaian businessman, Richmond Aggrey, over the sale of the company for $5.83billion to MTN Incorporated of South Africa was given by an Accra commercial court. Justice Henry A. Kwofie rejected Areeba's application made on July 25, 2006 by Scancom Limited, seeking to strike out the writ filed by the Ghanaian 20% shareholder and ordered the defendants to file their defence within fourteen days. Handing down its ruling on pleas by lawyers for the owners of the Lebanese-owned company, citing fatal procedural irregularity, the court noted that in the situation where some of the defendants are in the jurisdiction of the court and others outside, no leave should necessarily be sought from a judge before serving the writ on the defendants. According to the court, it would be unjust and unfair to make the plaintiff seek leave of the court before serving the writ on the defendants, Investcom Consortium Holdings SA (now Investcom LLC) of Beirut, the parent company, Scancom Limited, and Grandview Management Ltd in the USA. What was required under the laws, the court intimated, was for the plaintiff to apply from the registry of the court a concurrent writ for service on defendants outside the jurisdiction, but contended that failure to do so does not make the whole writ irregular to render it a nullity as argued by Benson Nutsukpui, counsel for Scancom Limited. The court therefore held that failure to apply for the concurrent writ from the court was a defect in form but not sufficient to invalidate the writ in totality. The court has therefore fixed November 1, 2006 to look into the thrust of the issue presented by plaintiff, after notifying the defendants on what he intends to ask for. The court on July 14, 2006 froze the deal in which Scancom Limited and its parent company in Beirut intended to sell the leading mobile phone service in Ghana to MTN Incorporated of South Africa, swerving the due date, July 17, 2006, that it ought to have been listed by MTN on the South African Stock Exchange. This followed an application made on behalf of Richmond Aggrey, claiming that the closure of the acquisition would occasion the loss of his shareholding in the company by reason of the accrual of the rights of the MTN Group as a third party. Aggrey's contention was that his name had been removed from the shareholders list of Scancom Ltd without any explanation as a result of which he filed an ex parte motion for an interlocutory injunction against Investcom Consortium Holdings SA (now Investcom LLC) of Beirut, the parent company, Scancom Limited and Grandview Management Ltd in the USA to restrain them from dealing with the shares, stock and or interest in Scancom Limited in any manner. According to him, if defendants are not restrained it would affect his 20 per cent interest in Scancom Limited. In an affidavit in support of his motion, Aggrey said Investcom Consortium, the majority shareholder of Scancom Ltd, was initially registered in Lebanon and the United Arab Emirates, while Grandview Management Ltd was a company registered in the Cayman Islands and nominated by him to hold his shares in Scancom Ltd in trust. In the substantive case, Aggrey is claiming against the defendants, jointly and severally, an order directed at Scancom Ltd to pay him his true share of dividends declared in the 2000, 2001, 2002, 2003, 2004 and 2005 financial years, and in a manner that was proportionate to his shareholding with interest calculated at the commercial rate. Additionally, he is seeking, among others, an order rectifying the membership of Scancom Ltd to include his name and restore him to his position as a shareholder and director of the company. (SOURCE: Ghanaian Chronicle) SAFARICOM IN SKYHIGH GROWTH IN KENYALow denomination scratch cards and growing subscriber base have boosted Safaricom's income levels considerably. East Africa's largest mobile phone provider, Safaricom, has made a record pre-tax profit of KES 12.2bn (US$171.5m), the highest ever in the region. Most of the company's profits were derived from airtime sales, partly occasioned by the introduction of low denomination scratch cards going for KES 50 (US70 cents) and KES 100 (US1.40). The profits were also attributed to the growing subscriber base, which has now hit 4 million subscribers in less than five years. Following this impressive performance by Safaricom, which is still unlisted, the Chairman of the Nairobi Stock Exchange (NSE) Jimnah Mbaru and Finance minister Amos Kimunya have called for the floatation of the company's shares. And Information and Communications minister Mutahi kagwe termed the profit a fantastic job. "Safaricom has demolished the myth that telecommunications is a dormant sector", noted Kagwe. Safaricom is 60 per cent owned by the government through Telkom Kenya while Vodafone Plc, the giant British cellular phone company, owns 40 per cent. Last year, the two were embroiled in a shareholder battle when Vodaphone sought to control the company by placing an offer of US$100 million for an additional 11 per cent stake. The Kenya government is yet to give a nod. Should the government accept the offer, it would be the country's largest privatisation deal, besides being the single biggest inflow of foreign direct investment into the country in recent years. Vodafone would also confirm Safaricom's enterprise value at $1bn. Besides the amount offered, Vodafone has also given an undertaking to support a listing on the NSE of the 49 per cent shares that would remain in the hands of the government. A new shareholders' agreement is also to be signed between the two parties to reflect the changed shareholding structure. Part of the proceeds of the deal would be used to clear debts that Telkom Kenya owes Safaricom in respect of an interconnect agreement between the parties. Significantly, the takeover would also herald Telkom's graduation to the league of companies with access to international capital markets. Besides refinancing its debt portfolios, it would be able to declare dividends to all shareholders. The Initial Public Offering [IPO], anticipated to be the biggest on the NSE, would also enable ordinary citizens to own shares in the most profitable company. Not to be left out are investment bankers and stock brokers, who would clinch deals for advisory services. Analysts believe that the large size of the transaction may require shares to be sold throughout the region, making it the first East African IPO. With a subscriber base of 4 million, the acquisition would definitely give Safaricom a competitive edge over its rivals, especially given that the roll-out of the third mobile phone provider, Econet, is yet to take off. (SOURCE: HANA) SHAREHOLDERS GET IN TELKOM'S WAY IN SOUTH AFRICATelkom CEO Papi Molotsane and chairman Nomazizi Mtshotshisa couldn't have looked more uncomfortable when an elderly shareholder bustled to the podium after an exhausting two-hour annual shareholders meeting on Friday and hit them for R5 taxi fare. After a pregnant pause when Molotsane and Mtshotshisa stared at each other, they both, nonplussed, rifled through their pockets until Molotsane found some coins. You can hardly blame the woman concerned: at least she was one of the few who left the AGM with anything of value. Not that there was a shortage of questions, mind. Earlier, Molotsane said he believed Telkom's AGM was one of the best-attended meetings of any company listed on the JSE, and he was probably right. It is just that Telkom's answers to shareholders' concerns are unconvincing. One almost gets the sense that Telkom doesn't particularly like its investors, and sees them as something of an irritation. When one shareholder asked whether Mtshotshisa would mind giving a brief overview of the state of the business at future AGMs, Mtshotshisa said bluntly: "You have the annual report, which has all that information." Given that many of Telkom's small retail shareholders invested for the first time on the stock market when Telkom listed in 2003, this is hardly an edifying response. When livewire investor Arthur Lello asked why Telkom's shares were trading at R139 a share, rather than R200, chief financial officer Kaushik Patel pointed at a shareholder who had had the temerity to ask an awkward question and said the discount was due to the sort of "negative impressions created by that gentleman over there". Patel also managed to blame "short-term shareholders" who didn't buy into Telkom's rationale for looking to spend R30bn to upgrade its services -- an announcement that shocked the market precisely because there was no forewarning of such a strategy. Telkom also acted shocked at questions from lawyer Michael Alachouzos. For the past few years, Alachouzos has asked Telkom to explain various things, principally whether it is breaching the Companies Act by not having a proper "register of members". How Mtshotshisa can claim to be unaware of Alachouzos's concerns for the second year running is remarkable. The arrogance of Telkom's top tier -- who feel they do not have to engage critics like Alachouzos until he "changes his attitude" -- makes Louis Luyt seem about as shy as a nine-year-old librarian. If investors came to the meeting with the sense that Telkom was becoming less and less concerned with what they think about the company, then Telkom's AGM can only have reinforced that perception. (SOURCE: Business Day) IN BRIEF:- The Kenyan government raised Sh2.5 billion (about US$35) from airtime charges in the first seven months of the year, according to the Central Bank of Kenya (CBK). Airtime revenues rose by 34.2 per cent in line with the increase of mobile subscribers. In the September issue of the Kenya Monthly Economic Review, the bank attributed the rise to telecommunications sector's strong performance. During the same time last year, Sh1.87 billion (US$26) was realised. - In South Africa, Business Connexion has spoken up to quell concerns that Telkom may lower the amount it has bid to take over the company as its proposed acquisition drags on into next year. Mergers and acquisitions executive Andy Tompkins said the terms of the deal did not include any possibility for Telkom to lower the R2,34bn price tag, or R9 a share plus a dividend of 25c. - Namibian Post and Telecom Holdings Ltd (NPTH) made history by handing over a staggering dividend of N$648 million (US$87.8 m) to the Government. The dividend, said to be the largest ever paid to the State by any parastatal, was boosted by the proceeds of the sale of 34 per cent of the country's first cellphone operator, Mobile Telecommunications (MTC), to Portugal Telecom. Portugal Telecom acquired the stake in MTC for N$1 billion in July. - According to local newspaper, the Nation, the intended sale of government's 9 per cent stake in Safaricom to British mobile phone service provider Vodafone could take longer as the two parties haggle over its value. Though he is categorical that the talks have not hit a deadlock, Information and Communications Minister Mutahi Kagwe says the two sides have not agreed on price. - The European commissioner in charge of development and humanitarian aid, Louis Michel, announced the European Union`s commitment to earmark some 6 billion euros for infrastructure development in Africa in the coming years. Michel, who was speaking stressed that he followed the example of the New Partnership for Africa`s Development (NEPAD) to launch the funding of infrastructure in Africa.
MEDICS TO USE CELL-PHONES IN DISEASE CONTROLHealth workers are soon to start using their cell phones to track and control the spread of HIV/Aids and other diseases countrywide.This is due to a mobile phone application that has been introduced in Rwanda before any other African country. The application has been introduced under the auspices of Voxiva Inc-US and GSMA. a global trade association for GSM mobile phone operators. According to a joint press statement released by the two firms, the new mobile software will be in a Java programming language that will run on a wide network of mobile devices. With the help of this software, medical practitioners will feed in information about patients, their symptoms and medication into their phones, which are then to transfer the data via a General Packet Radio Service (GPRS) mobile based connection into a central database. They will also be able to use the software to order for medicine, send alerts, download treatment guidelines, training materials and other appropriate information. It is said that the Voxiva and GSMA, helped by MTN, Rwanda's largest mobile phone service provider have completed the pilot testing of the software in the Eastern Province. The tests were conducted in collaboration with the Rwanda National Institute of Statistics (NISR), which used the software to capture information on health infrastructures that is normally collected from the field. "This technology is revolutionising how data is captured from the field," Dr Louis Munyakazi, Director General of NISR was quoted in a statement as saying. Following the success of the pilot phase, the two firms are planning to work with MTN and other operators to roll-out the mobile phone solution across Rwanda and other African countries in need, such as Nigeria, Tanzania and South Africa. Rob Conway, CEO of GSMA, reiterated that efforts of the international health community to control pandemics by getting life-saving drugs to those in need, depend heavily on a comprehensive and accurate picture of what is happening on the ground. "When a disease is spreading rapidly, health authorities need information that is up to-date. Mobile networks which are now widespread in the developing world, are the best and most immediate ways to get them that vital data" he said. The project budgeted to cost about US$1m (approx Frw550m) both for its setting-up and implementation, is particularly considered valuable to help track communicable diseases. The new mobile use in the health sector is going to complement the existing Information Technology system of TRAC-net that is jointly managed by the Ministry of Health and the Treatment Research and AIDS Centre (TRAC) to collect, store, retrieve, and disseminate critical program, drug, and patient information mainly related to HIV/AIDS care and treatment. It has also come at the helm of country's ICT evolution with forthcoming launch of multipurpose 40-metre mast at Karisimbi Mountain. (SOURCE: The New Times) IN BRIEF:- The newspaper, les Dépêches de Brazaville reported that the Congolese Ministry of Post and Telecommunications has launched its website. At www.postelntic.gouv.cg Congolese can find information regarding the telecommunication sector and ICT related matters. It is worth mentioning that on the subject of international connectivity the Ministry is planning to connect to SAT3 in a move to reduce its dependence on satellite connectivity .
18 COMPANIES APPLY TO COMPETE WITH SA’S PAY-TV PROVIDER DSTVSouth Africans are about to get hit with an avalanche of pay TV options from next year -- some of them delivered to your cellphone. Until now MultiChoice -- which owns M-Net and DStv -- has been the sole provider of subscription TV in South Africa, but that's about to change. Last month the Independent Communications Authority of South Africa (Icasa) received 18 applications to its invitation for new pay TV licences, covering a range of broadcasting technologies, from satellite to digital terrestrial. Icasa has put no limit on the number of pay TV licences it will issue, though it is unlikely the domestic market can sustain more than five or six. By some estimates, an affordable pay TV offering could broaden the market by 3,5-million to four million households, roughly three times the 1,3-million subscribers in South Africa and Africa serviced by MultiChoice. The figure could be much higher if Africa is added into the equation. Most of the applicants are promising more affordable viewing and truck loads of local content, not to mention wall-to-wall pornography, shopping channels, 24-hour sport and more. Some of the offerings will come in at about R100 a month, compared to DStv's R469 a month. MultiChoice has been blasted for its rich pricing structure, seen by some as the inevitable consequence of its monopoly position, though the company says its prices compare favourably with similar services elsewhere. DStv Compact, a scaled-down version of the full DStv package, was launched last year at R199 a month to capture the entry-level pay TV market. Compact offers 16 channels, versus more than 50 for the full-scale version. Among the Icasa applicants were some familiar names, such as Telkom, which has teamed up with Anant Singh's media company Videovision Entertainment, MSG Afrika Media and Women Development Bank Investment Holdings to apply for a commercial satellite and cable subscription broadcast licence. Telkom sees broadcasting as a way to protect its income from the encroachment of the second national operator, Neotel, which expects to steal 15% of Telkom's fixed-line market over the next few years. Telkom's chief sales and marketing officer, Wally Beelders, says the existing subscription TV services do not address the needs of the mass market, and estimates that 40% of South African households are potential subscribers for affordable pay TV services. MultiChoice is also applying for a licence, as required by the Broadcasting Act of 1999. Until now it has operated without a licence. The same goes for Worldspace, which has been operating for several years in South Africa, offering about 40 satellite radio channels. It, too, has applied for a licence to comply with the Act. MultiChoice has a few tricks up its sleeve to defend its lucrative market -- growing at the rate of about 100 000 subscribers a year -- and has already tied up exclusive deals with new content providers, such as Disney. According to would-be competitors, MultiChoice's growth in a monopoly position should have been much higher, given the enormous growth in the African middle class. Africans make up nearly half of new DStv subscribers and 25% of the total subscriber base, but could have been higher had it focused more intently on the emerging market. Existing free-to-air terrestrial broadcaster e.tv and the South African Broadcasting Corporation (together with state-owned Sentech) have also applied for licences, and both are seen as strong contenders given their experience and established market positions. Both have promised strong local content, greater affordability and a wide choice of channels. One of the more interesting applicants is Black Earth Communications, which has already applied for a commercial broadcasting licence in Botswana to operate a digital pay TV service called Black Entertainment Satellite Television (BEStv). It plans to offer between five and 10 TV channels for less than R100 a month, building this up to a "sampling" of between 100 and 300 channels at little extra cost per month. Also applying for a licence is Goal Technology Solutions, a spin-off of Grintek Telecom, a broadband and internet services company. Another applicant, On Digital Media, part of Cosatu-controlled Kopano Ke Matla Investment Holdings, plans to invest R1,7-billion in its pay TV service and will offer an entry-level service of 10 channels costing R150 a month. Mergan Moodley, CEO of On Digital Media, says the company has already tied up more than 70 channels and will offer a suite of services to suit different budgets. Deukom Television, an existing service operating through DStv, offers seven German TV channels and four radio stations for R400 a month to a 10 000-strong subscriber base. It is applying for a licence to regularise its position in terms of the Act. Some of the other licence applicants are Walking on Water Television, Quantic TV Network, E-SAT, Satellite Media TV, Multichannel Television, Kheta Media, Q Digital Cable Vision, MiDigital and African Spirit Trading 330. Another applicant is MAX TV, a UK-based shopping channel. Two names that do not appear on the list are Vodacom and MTN, both of which have big plans for delivering TV services to your cellphone. Vodacom already offers a range of TV channels such as Sky News and E! Entertainment to users of 3G (third generation high-speed phones), and MTN is reportedly in discussions with MultiChoice with a view to launching its own TV-to-cellphone service. Ultimately, subscribers will be able to select and pay for only those channels they want to view. As the choice of channels gets more bewildering and unwieldy, consumers are likely to opt for fewer channels -- or movies -- of their choice, and leave the rest off the menu. (SOURCE: Mail and Guardian Online)
CALL FOR TENDERSREQUESTS FOR EXPRESSIONS OF INTEREST IN CONSULTANCY WORK FOR THE SUBMARINE (EASSY) SEGMENT OF THE NEPAD ICT BROADBAND INFRASTRUCTURE NETWORK FOR EASTERN AND SOUTHERN AFRICA. The NEPAD e-Africa Commission has posted on its website (see link http://www.eafricacommission.org/consultancy.html) two requests for expressions of interest in Consultancy work for the Submarine (EASSy) segment of the NEPAD ICT Broadband Infrastructure Network for Eastern and Southern Africa. The Consultants are required to: 1. Determine and Recommend an appropriate Regulated Return on Investment that may be applicable to equity investment in the Hybrid Special Purpose Vehicle. The recommendation should show the approach and methodology used. 2. Produce draft Shareholders’ Agreements for: a) The African-led Special Purpose Vehicle, and b) The Hybrid Special Purpose Vehicle. PEOPLE* Nomazizi Mtshotshisa, chairman and non-executive director at Telkom South Africa resigned from both positions. The fixed-line operator's 2006 annual report states term of office is due to expire in 2008. She was appointed on 1 August 2002. Shirley Lue Arnold will replace her. EVENTS- REGIONAL REGULATORY SYMPOSIUM 30th October – 2 November 2006, KIST, Kigali, Rwanda Regulators are creations of statute. They have policy objectives to fulfil. However, in the execution of their mandates, they face many challenges, both internal (to themselves) and external. At times these challenges compromise their effectiveness. Regulators need to stay focused on their objectives and manage their environment in order to maintain control of the development in the sector and win the support and respect of all the key stakeholders they serve. This symposium brings together Policymakers, Regulators and Operators to exchange ideas on how they can be effective and respond to challenges they face on a day-to-day basis. For further information email arms@rwanda1.com or devotar@yahoo.fr or contact the Public Relations Officer at the Rwanda Utilities Regulatory Agency on phone +250 08469494. - WEST AFRICAN SATELLITE COMMUNICATIONS SUMMIT 31 October - 2 November 2006, Le Meridien Hotel, Abuja, Nigeria The summit is dedicated to the deployment of satellite and satellite hybrid-based communications solutions across the region of West Africa and will provide an unparalleled networking opportunity for global and regional satellite communications providers to meet with ever-expanding communities of vertical market communications end-users. For further information visit http://www.gvf.org/gvf/events/index.cfm - GSM-3G WORLD SERIES - NORTH AFRICA 8-9 November 2006, Sheraton Tunis Hotel, Tunis, Tunisia "What are the market impacts of additional competition and 3G licensing in North Africa? How can you attract new users to drive forward penetration? And more importantly what plans do your suppliers, clients and competitors have for this region? The 5th GSM>3G North Africa is the one forum in the region vital to manufacturers, application developers, operators and regulators who are active, or seeking to be active, in the North African market. For further information visit www.gsm-3gworldseries.com/northafrica" - 1ST INTERNATIONAL ICT INVESTMENT CONFERENCE FOR AFRICA 14th – 15th November 2006, Tunis, Tunisia. Under the auspices of Secretary General United Nations Conference on Trade & Development (UNCTAD) Regarding sponsorship or delegate attendance, please contact Dan Morrissy in London on +44 207 2871326 or at dmorrissy@i-ep.com - BROADBAND SUMMIT 2007 26-27 February 2007, Southern Sun, Grayston, South Africa South Africa faces a huge broadband demand, from all sides. However, the broadband access media and business strategies in South Africa still do not resemble the international standards. In order to reach these standards you as ISPs, mobile and/or fixed operators, need to assess the current and future potential of the African broadband market. For further information visit http://www.iir-conferences.co.za/eventInfo.php?e=1202 - SMB ROADSHOW 2007 - MIDDLE EAST AND AFRICA 26th March 2007, Nile Hilton, Cairo, Egypt. IDC's SMB Roadshow provides a comprehensive and trustworthy platform for discussing strategic IT issues directly impacting the SMB sector. Debate led by recognised experts and based on best practices and sound technology analysis provide objective and critical insights required by leaders in this sector. This event will target IT decision makers - by vertical industry sector - within SMBs across the region. For further information visit http://www.idc-cema.com/events/smbeg07 - eLEARNING AFRICA 2007 28-30th May 2007, Kenyatta International Conference Centre, Nairobi, Kenya The subject is Building Infrastructures and Capacities to Reach out to the Whole of Africa, reflecting the significant efforts of African countries to set up their national and regional ICT infrastructures to create access to education, training and services for all. For further information visit www.icwe.net or call +49-30-327 6140 JOBS AND OPPORTUNITIES* CS 3.0 ENGINEER – MADAGASCAR At least 3 years proven Network Management with emphasis on Back Office activities in Telecom operation's environment. The person requires a highly developed customer orientation. Mandatory skills, values and behaviors: Responsible, Accountable, Ownership, able to effectively work in teams, process oriented, excellent communication and relationship. Other required skills: Pre-paid experience on GSM and at least have done System Administrator I and II for Solaris. SCP experience will be an added bonus. Capable to interact in different organizational levels of customer organization (from C level to Engineer level). Ericsson infrastructure experience and International experience is a must. For further information contact advertising@balancingact-africa.com * CALL FOR SUBMISSION OF VIDEO PODCAST – UNESCO Within the framework of its international project, (Harnessing ICTs for the audiovisual industry and public service broadcasting in developing countries), UNESCO is launching a call for submissions of video podcast proposals for a series of production grants. For further information contact creativecontent@unesco.org * ACCESS TO LEARNING AWARD We invite you to apply for the Bill & Melinda Gates Foundation’s annualAccess to Learning Award.This award recognizes excellence in providing access toinformation by utilizing new information and communication technologies in an innovative way,at no cost to the user. The recipient will receive an award of up to US $1 million. The award is administered by the International Network for the Availability of Scientific Publications (INASP). Completed applications should be sent to INASP and must be postmarked or emailed by 31 December 2006. A PDF version of the application will be available for downloading to your computer from www.inasp.info/ldp/awards. CONTRACTS: WHO'S SELLING WHAT TO WHOM?* POST, TELECOMM & INFORMATION TECHNOLOGY COMPANY AND SIRTI –LIBYA Italian telecommunication equipment producer Sirti was awarded a 68 million Euro telecommunication network construction contract by the Libyan Post, Telecomm & Information Technology Company. The company will be responsible for developing the project, construction, installation, and training of future staff. The project should be completed within 18 months and will cover 3,200 km of the northern and eastern areas of the country. The new optical fibre network is part of Libya's plan to renew its telecommunications network, which envisages building advanced access networks in the country's main cities.
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This page last updated on November 06 2006.
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