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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 362 Kenya’s economy held back by lack of online payment authorisation systemsThe Kenyan Government is putting its country forward as a place that is open for business. It is moving to privatise both Telkom Kenya and divest itself of Safaricom. It has moved with considerable speed to put in place its own fibre project TEAMS. But parts of the private sector are having difficulty keeping up with the idea of Kenya having an open, modern economy. Although there are a couple of new entrants in the country’s banking sector, it is largely dominated by international banks whose managements defer to head office on innovation. This is going to cause the country a problem if it wants to continue to remain competitive. It needs to be able to offer its visitors the ability to pay for flights, hotels and safaris online. If you book a Kenyan hotel, you still cannot pay online for the booking. Sadly things have only moved on a little since Kenya Airways launched its very successful online payment system using a South African bank. Although many banks can issue credit cards, only a limited number can authorise transactions and they have not shown any interest in setting up the “back-end” payment authorisation systems required for online transactions. Speaking at last week’s e-tourism conference in Mombasa, Kenya’s Tourist Trust Fund CEO Dr Dan Kagagi said that the industry and Government were lobbying the banking sector to allow online payments. Whereas once the credit card companies were the obstacle, the point of “no change” has moved to being the banks. According to Kagagi: "Already a number of credit card companies are willing to work with us to ensure that online payments become a reality." Tourism and Wildlife Assistant minister, Raphael Muriungi, speaking at the same conference urged the industry to utilise online technologies:"We are all learning of the rapid and unprecedented changes that ICT is creating in global tourism and have realised if all players fail to embrace the web and new technologies then we stand to lose our ability to communicate and do business in a changing market," he said. Perhaps his comments should have been directed at the banking sector that are now proving to be the obstacle to change. The banks fear fraud but this seems a rather lame excuse as in the first instance most of the potential buyers will be tourists coming from developed countries where fraud rates are considerably lower. Close to 70 per cent of travellers regard the Internet as their primary and in many cases only source of information on tourism. About 100 million travellers now use the web to book holidays and travel thus making it vital for Kenyan tourism to be visible on the Internet. Kenya undoubtedly competes with South Africa for visitors, particularly in the wildlife safari sector, and there is no difficulty booking and paying online for a wide range of products in South Africa. Despite being repositories of citizens’ money, the banks have been remarkably slow to react to the signs that there is an emergent middle class. It is projected that by June 2007 there will be around 100,000 credit card users. It sounds small but it is considerably more than in many other African countries. In addition, there are more than 1 million debit cards that can only be used if the card holder has cash in his or her own account. Surely the latter can provide a fairly low-risk way of introducing online payment for Kenyan citizens. When TEAMS and the other international fibre connections arrive at Mombasa, the price of international bandwidth will go down. This should be one of the building blocks for creating new services and applications that users can begin to start to use. Another building block must surely be the ability to authorise online transactions and Kenya’s banking sector needs to wake up to the changes that are happening in the country. However, this is not purely a Kenyan problem as there are other countries on the continent like Ghana where a similar lack of online payment authorisation is holding back the development of local global businesses.
THREE LOCALS APPLY FOR MOBILE LICENCES IN MALAWIThree local companies have joined two foreign companies in the race for a license to roll out mobile phone services. Malawi Communication and Regulatory Authority (Macra) said last Monday, local companies Malcom Limited, Megatel Communications Ltd and Globally Integrated Networks had submitted bids. The foreign contingent include Econet Wireless from South Africa, which was, until late last year, engaged in a pre-emptive rights legal battle with Malawi Telecommunications Limited (MTL). Others firms in the foreign category are Millennium Globe Telecom Ltd from United States of America (USA). Macra publicist Clara Mulonya said the regulator was evaluating the bids to check if they were in line with specified guidelines. “We check compliance to instructions as contained in the invitation to apply document, which include the need to indicate the financial capability and technical capacity among others,” Mulonya said. She said in selecting the winning bidder Macra looks at many things including the company’s financial capacity. “This is a capital-intensive investment and it is expected that bidders should have enough financial resources,” Mulonya said. There were 11 companies that obtained bid documents, but according to Macra, only five applied and the winner would join Celtel and TNM Limited who are already established on the market. (SOURCE: Daily Times) BT EMERGES FRONTRUNNER IN RACE TO BUY TELKOM KENYA, ACCORDING TO GOVT OFFICIALA consortium that includes British Telecoms and Libyan investors has emerged as the only strong contender to acquire a strategic 40 per cent shareholding in Telkom Kenya. People close to the matter told the Business Daily that senior officials from BT and Libyan investors on Friday met top Treasury and Ministry of Communication officials to work out the deal’s finer details. Treasury estimates the stake to be worth Sh5.6 billion —meaning that Telkom Kenya is now valued at Sh14 billion. The British firm is said to have tabled a number of proposals, including a strong financial bid as commitment to finance the turnaround of Telkom Kenya, in the meeting that ended at 11.30 pm. Such a high level leak means that the Government is doing its best to talk up the price that will be paid for Telkom Kenya. “The consortium led by BT is the team to beat. They have a credible technical group and have the finances,” an official, who attended the meeting, said. It is the second time that the Government is trying to sell a significant portion of its stake in Telkom Kenya, the first attempt having flopped after bidders placed financial bids that they ultimately could not back up with real money. The Government had this time around included a condition that required bidders to have an annual revenue of $200 million (Sh14 billion), more than 500,000 voice subscribers and demonstrated experience in the deployment of broadband to avoid similar flops. In recent months, Libyan firms, loaded with petrodollars, have been clinching lucrative deals in Kenya mainly on the infrastructure front including the upgrade of Kenya Petroleum Refineries. This has cemented close trade ties between Kenya and Libya that was recently pushed by President Kibaki’s official visit to Tripoli. The Government intends to sell its 40 per cent stake to a strategic investor who is expected to come on board before the end of the year. Analysts say that BT has been desperate to get a foothold in the lucrative Eastern African market through an acquisition, a pointer that the Telkom deal would turn their dream true. Already, BT is well represented in the rest of the continent with its regional headquarters in South Africa to the Southern part of the continent. For the North African market, it has the Libyan office and the Nigerian office to serve the West African market. “Safaricom has shown there is money to be made in this part of the world and everyone is now looking at getting a share of the market,” James Rege, chairman, Capital Real Time, a telecommunication consulting firm. Safaricom broke its earlier record to emerge as the most profitable firm in the East Africa posting Sh17.7 billion in profits, an increase of 39 per cent recorded a year earlier. With Telkom already in the wireless voice market through their new service offering dubbed Telkom Wireless, which is set to be officially launched this Thursday, this could be big opportunity for BT to take a stab at a growing market. Rege, a former permanent secretary in the information ministry, said BT looked the most credible firm to clinch the deal should it come through. This is not the first time the British telecommunications giant has made a bid at Telkom Kenya. Six years ago it indicated its interest in acquiring the state firm but it was disqualified during the preliminaries. Other firms that are in the race to buy the stake include Indian mobile service providers Bharti Airtel, Reliance Communication, Tata Holdings and Vtel communication, who had won the licence to become the country’s Second National Operator but were disqualified after failing to raise the required license fee. American telecommunication giant AT&T pulled out of the race after the Government failed to buy into its demand where it indicated it would only buy a stake in the state firm if they were given a 51 per cent stake. This, they noted, was the only way they could get a free hand to turnaround the loss-making company. South Africa-based Econet is also making a second attempt to enter the Kenyan telecommunications industry having won a licence for the third mobile phone operator that is subject of litigation. The recent attempt has seen potential bidders demand that the Government increases the 26 per cent stake it had initially planned to sell for them to consider the offer. But this has since changed as the stake to be bought by the strategic partners has been increased to 40 per cent and the government holding will stand at 49 per cent. The remaining 11 per cent will be reserved to be sold to the public through the Nairobi Stock Exchange. Telkom is currently deemed to be unable to pass the Capital Market Authority (CMA) listing test. CMA regulations require that any firm keen on listing at the NSE must have posted profits for at least three in the five years to the listing. But Telkom Kenya has been making losses for years, weighed down by huge staffing levels and growing competition from the wireless voice market. Figures sent to the potential investors show that Telkom financial performance has been declining over the last four years. Its turnover has been declining at an annual rate of 10.5 per cent over the last three years as competitors eat into its market share to settle at Sh16.3 billion in 2006 from Sh20.9 billion in 2003. The firm notes that it expects to make a loss of Sh1.18 billion, which is a reduction from last year’s figure of Sh2.7 billion. While the special shares reserved for the public will be held in trust by the Government, dividend payouts from Telkom Kenya will stream straight into the State coffers. According to Dr Bitange Ndemo, permanent secretary Ministry of Information, the revision had been informed by the need to go around the State Corporation Act in a move that was aimed at making the deal more suitable to strategic investors. Had the strategic investor held a minority holding at 26 per cent and the Government holding a 64 per cent stake, Telkom Kenya would not run as a private company, but under the Act which guides the operation of parastatals. At the moment the government is racing to clean Telkom debt ridden balance sheet as it prepares to bring the strategic partner on board as well as strike a better deal in the sale of the 40 per cent stake. The Government has already committed Sh26 billion to fix the pension and tax arrears with pensions taking Sh10 billion and the remaining Sh16 billion being taken by Kenya Revenue Authority. To keep the state firm afloat, the firm is set to complete a massive staff layoff that will reduce its work force to 3, 200 members down from 17, 000 by the end of August. According to Permanent Secretary Bitange Ndemo, BT have also expressed interest in investing in the TEAMS fibre project. (SOURCE: Telegeography) ETISALAT EGYPT TO BID FOR FIXED LINE LICENCEEtisalat Egypt is to bid for Egypt's second fixed line network licence, according to a report by news agency MENA. The bid will be the first the company has made since it began its mobile operations in Egypt in May. A source at Etisalat Egypt has confirmed the report, according to news agency Reuters. "This is not a surprise. Our ambitions in Egypt don't stop at being a mere mobile operator," the unnamed source told the news agency. Etisalat Egypt, also known as Etisalat Misr, could not be reached for immediate comment. As previously reported by ITP.net, the Egyptian communications minister Dr Tarek Kamel recently announced Egypt would offer a licence for a second fixed services operator, ending the monopoly of incumbent operator Telecom Egypt. The new entrant to the fixed line market is expected to be operational from early 2009, according to MENA. Etisalat Egypt, the Egyptian arm of the UAE telecoms services provider, competes on the mobile services market in Egypt with Mobinil and Vodafone. It claimed to have captured 400,000 subscribers at the end of its first month of operations. (SOURCE: ITP) UGANDA TELECOM SETS UP REGIONAL ROAMING NETWORKUganda telecom will become the third local telecom company operator to go regional when it launches its regional roaming scheme next week. Hans Paulsen, the chief operations officer, said this week that the seamless network will initially be launched with Safaricom, Kenya and then with Vodacom, Tanzania before the end of the month. The collaboration will also be extended to Burundi, a frequent destination for Ugandans. "Unlike before, our customers will be able to take their rates as they are to those countries. "They will receive phone calls free of charge and will be able to load our airtime from those countries. Combined, we shall have a bigger network of subscribers," he explained. The company has already started network expansion for the targeted two million subscribers by the end of next year. "As a first step, we have a signed a $50m contract with Huawei Technology of China to ensure availability of the service. We are going to take the network to 70% of the country. Once we have this, our offerings and brand will become the preferred network of choice," Paulsen explained. He said the company plans to remain competitive in the tariff structure with this new investment, and with the introduction of new value added services and growing the distribution network. "We plan to spend about US$90m this year to bring new coverage and improve existing coverage," Paulsen said. (SOURCE: New Vision) VOX TELECOM EXPANDS INTO CONSUMER MARKET WITH VOIP SERVICE IN SOUTH AFRICAVox Telecom has launched the first phase of their residential voice offering, Vox Home, competing directly with Telkom’s fixed line voice services. The Vox solution is essentially a high-quality, low-barrier-to-entry VOIP solution available to all ADSL subscribers in South Africa. Vox Telecom’s new direct selling consumer initiative is aimed at “giving South African consumers the opportunity to take control of their telecommunication costs” said Douglas Reed, CEO of the Group. “Through the Vox Community we would like to encourage our staff and customers to be stakeholders in the lucrative emerging Telco Sector. We are striving to be a viable alternative, but rather than competing on price, we aim to give a portion of telecommunication costs back to local communities.” The new offering does, however, promise significant savings over Telkom’s voice rates. Vox Telecom’s Jaco Voigt told MyBroadband that subscribers can expect a minimum saving of around 20 % on all calls. Vox Telecom has opted for a consumer network approach to the launch their offering, harnessing the power of referral selling to capture market share. “This isn’t a new approach to selling telco services. Internationally we have seen companies like Sprint and MCI use this approach very effectively to grow their subscriber base successfully in a relatively short time” added Voigt. “South Africans are very entrepreneurial by nature and Vox offers them the opportunity to not only dramatically cut their telco costs, but also generate residual income by referring these telco service to friends, collogues and family.” Voigt points out that the Vox Home solution is only one product in a range of innovative, consumer-focused offerings to be launched in the next 6 to 12 months. “We are putting together a range of telco services aimed at satisfying real consumer needs, such as uncontracted telco services at contract pricing.” (SOURCE: MyBroadband)
IN BRIEF:- The Nigerian Communications Commission (NCC) has given 'notice to issue direction' to all GSM operators in the country to suspend free calls and other promos being run by the operators" until the quality of service is improved." - Tunisia is set to introduce a second national fixed operator before the end of this year following instructions from President Ben Ali to speed up tendering process. - Côte d’Ivoire’s telecoms regulator, the Agence de télécommunications de Côte d’Ivoire has announced new rules to account for mobile subscribers. Any mobile user which has received or made a phone call in the last three months will be considered as an active subscribers. According to this new rule, Orange and MTN respectively have for 2,001,328 and 1,975,012 subscribers as of 31 March 2007 - The ongoing trial of the former Managing Director of The Gambia Telecommunications Company (GAMTEL) Omar Ndow has been suspended again. Omar Ndow is standing trial on two counts: alleged disobedience of statutory duty, contrary to section 115 of the Criminal Code; and alleged abuse of office, contrary to section 90 of the Criminal Code. - Locating companies and their contact details will become easier for Botswana’s mobile users with the launch of “Locate Easy” which allows Mascom and Orange subscribers to dial names of companies they wish to locate and send them to 15050, which in turn responds by giving complete contact details, including location, addresses, website, email, services offered and other information entities may wish to include. - Nitel workers have filed a suit against the Bureau of Public Enterprises (BPE) over their pensions. The bureau had entered into an agreement to pay all the staff five years pension before the sale of the company, but the Agency later reneged and decided to pay according to length of service. TELECOMS, RATES, OFFERS AND COVERAGE- The anniversary promotion embarked on by Celtel Nigeria to reward loyal subscribers has, instead, turned out to be a nightmare as the network's capacity to originate or terminate most calls failed over the last two weekends. - Zimbabwe’s mobile network operators, Econet Wireless, Telecel and NetOne, have been ordered to reduce call charges by up to 1000% as part of an emergency government initiative to combat hyperinflation in the country, which reached officially 4,500% in May. - Vodacom Tanzania customers can now access e-mails from their handset, without purchasing new devices providing their handset is e-mail enabled. The new service is targeted at the business sector in Tanzania. - Celtel Gabon has reduced its calling rates to international destinations by up to 36%. Calls to destinations in Central and West Africa have gone down from FCFA350 (US$0.6) to FCFA280 (US$0.56) while calls to France, China, Lebanon and UAE have been reduced from FCFA400 (US$0.8) to FCFA290 (US$0.58)
ACCESSKENYA PLANS ACQUISITION OF ISPTechnology firm AccessKenya says it hopes to acquire part of Todays Online, another Internet service provider, but is awaiting regulatory approval. The company plans to take over a number of leased line customers from the smaller firm. The deal, which does not include dial-up customers, comes just weeks after AccessKenya raised Sh800 million by listing a 40 per cent stake. "AccessKenya Group went public to raise capital to fund our expansion, and we had specifically told the market that making acquisitions would be an important part of our strategy," Managing Director Jonathan Somen said in a statement. "It made sense for both parties to consummate this transaction having had a relationship over a number of years." Both companies lease Internet bandwidth and AccessKenya has said it plans to provide broadband access to homes in the near future. The exact value of the transaction was not disclosed but consists of an up-front payment and a future payment based on the successful migration of the customers to AccessKenya's network. The Monopolies Commission must approve the deal. Todays Online is estimated to have between 100 and 200 leased line customers. Todays Online managing director, Milton Njanja, further announced that his company would continue to provide its ISP services to AccessKenya for at least the next nine months. He added that, following discussions, the company's board felt that the interests of Todays Online customers would be best served by transferring their connections to AccessKenya's network, which has better speeds and hence higher value for money. AccessKenya shares closed Wednesday's trading at Sh13.85 compared with the previous close of Sh13.35. (SOURCE: East African Standard) SOUTH AFRICA’S INTERNET ACCESS GROWS, BUT ONLY FOR THE HAVESThe number of South Africans with access to the Internet will grow by little more than 3% in 2007, despite massive growth in broadband connectivity. This is the key finding of the “Internet Access in SA 2007” study, announced today by World Wide Worx. The study shows that a total of 3.85-million people in South Africa – a mere 8% of the population, or 1 in 12 people – will have access to the Internet by the end of 2007. “Despite the dramatic rise of broadband usage, this is the slowest growth we’ve seen in overall user numbers since the arrival of the Internet in South Africa,” says World Wide Worx managing director Arthur Goldstuck, who has been tracking the Internet market since 1993. The study reveals that there will be more than 800,000 broadband subscriber accounts active in South Africa at the end of this year. However, these represent only 650,000 unique users, or separate individuals. And, of these, a third also use another form of connectivity. “The harsh reality is that broadband has not yet made a major impact on overall connectivity numbers, even while dramatically increasing the usage of those who are already connected,” says Goldstuck. “The majority of broadband users are simply migrating up the connectivity food chain, from dial-up to broadband. So, while the haves get more, the have-nots remain locked out.” To emphasise this point, the number of dial-up users is falling dramatically this year, dropping by 122,000 users, and falling below the million mark for the first time since 2001. While this can be partly attributed to the growth of broadband within the dial-up user base, it also reveals the limited extent to which new users are coming on board at the entry level. It is clear, says Goldstuck, that the high cost of local calls – the single Telkom usage rate that is not coming down in price in August – is a major obstacle to Internet connectivity for the unconnected. “Add to that the fact that line rental is in fact going up in price, placing yet another limit on the growth of fixed lines, and you have a no-win situation for the mass market,” says Goldstuck. This makes Telkom both the villain and the hero of Internet connectivity in South Africa, the report states. Telkom’s ADSL offering has been the main driver of broadband adoption in South Africa for the last four years. While it is expected to be overtaken by MTN and Vodacom’s 3G mobile broadband by the end of 2007 in number of connections, it will continue to be the principal form of connectivity for most broadband users until at least 2009. Many of these will use 3G as a backup connection or for use when out of the office or home. The study shows that the only broadband offering attracting large numbers of new users, rather than upgrading existing users, is iBurst, the wireless broadband service from WBS. Until now the growth of iBurst has been held back by availability, but through its relationship with Vodacom it is expected to make a dramatic impact over the next two years. Vodacom’s own pending new ISP, Neotel’s offerings expected in the coming months, and the effect of metropolitan city councils offering wireless broadband, have not been included in projections or expectations of growth for 2007 and 2008, due to the presently undefined nature of these offerings, says Goldstuck. However, he sees these as major interventions in connectivity growth and experience. “The entry of these major players into Internet services has to make a massive impact,” he says. ”Far too much is being invested in their infrastructure for them not to make a difference. By 2010 we can expect to see a substantially altered connectivity landscape. But certainly not in 2007.” (SOURCE: MyBroadband) GOVERNMENT FINALISING NEW CYBER LAWS IN UGANDAThe Government is finalising new cyber laws aimed at protecting computer users from cyber crime. The information and communications technology minister, Ham Mulira, said the laws include personal intrusion, national security, fraud and con activities. "Liberalised information can lead to unwanted uses and usage leading to cyber crime. It is necessary to have legal infrastructure within which the technologies can be used. There are three bills which have been drafted, the Electronics Transactions Bill, Digital Signatures Bill and the Computer Misuse Bill," the minister explained. He was opening the first consultative workshop organised by the Uganda Communications Commission (UCC) to include senior police officers in discussing the matter. "These discussions will determine how we in the communications sector shall interface and ensure accelerated development under the new communication regime without compromising likely dangers arising out of that development," Patrick Masambu, executive director of UCC, said. The workshop was also intended to strengthen collaboration between the regulator and the Police regarding enforcement of the Uganda Communications Act and other laws. (SOURCE: New Vision) INTERNET ACCCESS AND USAGE ON THE INCREASE IN MOROCCOAccording the third annual edition of a national survey organised by Morocco’s National Telecommunication Agency, the ANRT, Internet access and usage is on the increase with a heavy take-up of ADSL. Internet access penetration in the home was low in 2004: only 120,000 homes were estimated to have an Internet connection, in other words, a penetration rate of 0.4% for the population as a whole. The corresponding rate rose to 0.8% in 2005 (4.3% of households) with an estimated 240,000 lines (all access speeds combined). In 2006, the number of lines stood at 390,000 (more precisely at the time of the survey in March 2007) i.e. 7% of households (or 1.3% of the total population). It should be noted that 62% of households claiming to own at least one computer in 2006 also claimed to Internet access at home. Already observed over the last two years, the heavy penetration of ADSL access was again confirmed in 2006, when it accounted for 89% of access in the home, corresponding to 350,000 households, or 1.2% of the total population of Morocco (compared with 220,000 in 2005 and 60,000 in 2004). In the coming twelve months, close to 28% of households which are still not equipped have plans to obtain an internet connection at home, which represents a potential of one million additional connections, should their plans be made concrete. Socio-economic status remains an undeniable contributor to a household’s potential connection to the Web. Nonetheless, a certain “democratisation” compared with 2004 can be observed: whereas the most privileged SES accounted for over 80% of residential internet connections that year, they accounted for only 66% of connection in 2006. By its very essence, the notion of “Internaut”, Internet user, is difficult to pinpoint precisely. The survey nevertheless established the following two definitions: A level 1 Internet user is an individual who has accessed the Internet at least once in the past month, regardless of location and the access mode used. A level 2 Internet user is an individual who has accessed the Internet at least once in the past twelve months, regardless of location and the access mode used. Having risen substantially from one year to the next, the number of Internet users (level 1&2) stood at around 6.1 million in 2006, compared with 4.6 million in 2005 (i.e. an increase of over 30% in relation to 2004). The figure serves as a proof of the Internet boom in Morocco and, more specifically, of the growth recorded in the ADSL sector. In 2004, 96% of individuals with an Internet connection (all locations combined), used the web to perform searches, compared with 91% in 2005 and 92.5% in 2006: entertainment and use of the different messaging applications (IM and e-mail) are among the other uses expressed by respondents. Cost is one of the chief obstacles to accessing the Web: given 53.3% in 2006, compared with only 41.3% in 2005. There are few households that practice online buying and only a small percentage of these express any wish to do so in the coming twelve months: Among those with Internet access at home/outside the home, 96% have not made online purchases during the past twelve months. In 2006, households expressing a wish to make online purchases accounted for only 8% of individuals with Internet access at home/outside the home. (SOURCE: ANRT) IN BRIEF:- Managing Director of NIGCOMSAT-1, Engineer Ahmed T. Rufai has announced the commencement of commercial activities. The company has received enormous expressions of interest for the purchase of bandwidth on the C-band, Ku-band and L- bands respectively. - TDM, the publicly-owned telecommunications company in Mozambique has opened the latest section of the country's fibre- optic network which links the port city of Beira to Quelimane. Work on the national fibre-optic network began in February 2006, and is due to be concluded by 2008. The German company Siemens is installing the cables, and the operation has cost TDM over US$8.5 million. - Tunisian internet users will soon enjoy cheaper internet access as President Ben Ali has urged the ATI (Agence Tunisienne de l’Internet) to reduce the prices at which it wholesales bandwidth to ISPs - Dakar in Senegal will host the headquarters of the African Network of Digital Cities with the support of the European Network of Digital Cities.
FUNDS CLEARED FOR INDIA'S E-PROJECT IN AFRICAIndia's dream e-project in Africa that seeks to bridge the digital divide among 53 countries of the continent moved one step closer to reality Thursday as the cabinet approved Rs.5.42 billion (Doller 120 million) for it. 'The project will showcase India's capability in the IT sector, technology, healthcare and education,' Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters while announcing the government's decision to implement the project. 'Its successful implementation is expected to enhance India's profile in the region and add a fresh dimension to India's partnership with Africa,' the minister said. External Affairs Minister Pranab Mukherjee, who is currently in Addis Ababa, is expected to launch the pilot projects of the Pan-African Network in Ethiopia that will bring the benefits of tele-education and tele-medicine to the continent. The brainchild of President A.P.J. Abdul Kalam, a well-known space scientist and technocrat, the Pan African Network (PAN) is expected to revolutionise communication and accelerate development throughout Africa and replenish a huge reservoir of goodwill that already exists in Africa for India. India and the African Union (AU) signed a pact in October 2005 for setting up the landmark satellite and fibre optic network that will enable the sharing of India's expertise in the fields of healthcare and education with Africa. The project includes setting up a VVIP network that will link the presidents of all the 53 African countries who will have ready access to their counterparts through videoconferencing and Voice Over Internet Protocol (VOIP) facilities. The network will also help set up Internet and videoconferencing services and support e-governance, e-commerce, infotainment, resource mapping and meteorological services connectivity. The network will connect five universities, 53 learning centres, 10 super-speciality hospitals and 53 remote hospitals to all 53 African countries. There will be two universities from India and three universities from Africa; three super-specialty hospitals from India and the other seven from Africa in the network, officials said. Telecommunications Consultants India Ltd (TCIL) will implement the project in collaboration with the Indian Space Research Organisation (ISRO). The external affairs ministry will coordinate the setting up of the project. The Indira Gandhi National Open University (IGNOU), the All India Institute of Medical Sciences (AIIMS), both based in New Delhi, and other organisations will support the network. TCIL will manage the network, which will have 169 terminals for an initial period of three years. (SOURCE: IANS) SITA WINS ALGERIAN STATE CONTRACTThe State IT Agency (Sita) has won a major boost of confidence from an unexpected source by clinching a contract to provide the Algerian foreign affairs ministry with a highly secure global network for 45 embassies worldwide and its 18 consulates in France. This is the first time Sita has won a contract from a foreign government, and it could prove a useful boost for its reputation at home, where the agency is still struggling to persuade some government departments to use its services. "Sita's reputation in the global arena is unrivalled," said Menad Habbak, the director of technical services for the Algerian ministry. "We looked at existing solutions and compared them to what Sita presented, and the decision was an easy one. We wanted a highly secure, competitive and global solution, and that is exactly what they provided." The Algerian government expects to save US$3m over five years by switching from a legacy network to a network based on internet protocol. Sita had a history of providing internet protocol networks to the air transport industry, and was confident its system would exceed the degree of service delivery, reliability and security it had promised the Algerian government. Sita will install a network with high-level security, voice over internet protocol services to cut the phone bills, and round-the-clock support. Sita is without a CEO after Mavuso Msimang was appointed director-general of the home affairs department, a job he was handed after stabilising the ailing agency. Sita's acting CEO, Peter Pedlar, was appointed in May until a permanent replacement is found. (SOURCE: Business Day) NITDA COMMENDS SPEEDSTAR 200 PCS CAPACITY FACTORY IN NIGERIAProf. Cleopas Angaye, the Director General of National Information Technology Development Agency, (NITDA) has described the newly opened 200 PCs per day capacity assembly factory of Speedstar brand of computers as a welcome development. He stated this at the official opening of the new factory in Lagos . The NITDA boss noted that Beta Computers has demonstrated a commendable doggedness in the local PCs assembling industry , adding that Speedstar brand has been certified by NITDA. "I congratulate Beta Computers Limited, the proud owners of the Speedstar brand of Computers on the official opening of its assembly factory today. Everyone who understands the difficult climate under which information technology has evolved in Nigeria should also congratulate Beta Computers" he said. Stiff competition from foreign OEMs, unfriendly fiscal regimes for importation of semi and completely knocked down parts and low demand for local brands, he said, were some of the challenges the local PCs Assemblers have had to face. While commending the improvement and expansion in the production process of Beta Computers during his facility visit of the company's Semi-Automated motorized conveyor line , Angaye noted that henceforth computer assembly companies would need to meet certain guidelines and standards, adding that the production process must be automated like that of Beta Computers. "The systems of local PCs companies must pass stress tests simulated to fit our environment, and must be compatible with Linux and the range of open source application software. I am happy that most of the existing companies already meet the guidelines especially, Beta Computers with its Semi-Automated motorized conveyor line for actual assembly of 200 PCs per day. It is very commendable." Angaye noted. Earlier in his welcome address, the Managing Director of Beta Computers Limited Will Anyaegbunam restated the commitment of his company to the Nigerian IT industry, saying that their destination is West African sub-region. "The Speedstar factory we are opening today is the first of its kind in Nigeria . Not conveyor line to assembly PC parts or move finished products to and from the warehouse. This factory and the men who to do the installation were originally planned to be imported fully built from Taiwan as it is carbon copy of a few there that we visited and came back with video copies of it. At the end, we sourced everything and parts from local companies and used local engineers to put up what we are proud to say is a Nigeria PC factory built by Nigerians for the assembly of a Nigerian brand for Nigerian" Anyaegbunam explained. According to him, Beta Computers does not need to import anybody or robots to maintain and support the plant as a result of the use of local technicians and engineers to build the factory. Nigerian technicians and engineers can do most of the work given out to expatriates if given the chance. "We proved that with this factory. We only played the video of the various factories in Taiwan and China for them as a template to come up with what we have today. We are happy with the end product and we are confident you will to" the MD of Beta Computers explained. With excitement, he noted that the Speedstar factory is another first in a list firsts that Beat Computers has recorded over the years, adding that Speedstar brand is the first local PC brand to be registered in Nigeria in 1996. "It is the first PC in Nigeria to have a model series that has 3 years full warranty covering labor and parts for the CPU and Monitor. It is the first local Microsoft Direct OEM partner in Nigeria . It is the first and only local PC brand that passed the Microsoft Windows Hardware Quality Labs test, (WHQL) from Nigeria " he said At 200 PCs per day capacity, he assured that Beta Computers is fully geared to meeting any size of orders, adding that the products are of the highest quality that out performs even the international brands. He further assured that in 3-5 years to come Beta Computers will build a larger integrated factory that will have capacities in excess of 600 PCs per day for the actual manufacture of components such as memory, cards and optical drives. (SOURCE: This Day) IT ENABLED SERVICE TO BOOST ECONOMIC GROWTH IN GHANAThe Minister of Communication, Professor Mike Oquaye, on Thursday said government had identified Information Technology Enabled Service (ITES) as a priority sector to accelerate economic growth. "Government is fully aware that traditional exports, coupled with the current agriculture and the domestic private sector, are currently not contributing sufficiently to the socio-economic development of the country," he said. Thus government is embarking on the ITES drive, which is estimated to create 35,000 additional jobs to the current 2,000 jobs in the offshore sector by 2011, with an added value to the economy of 750 million dollars. Addressing a press conference in Accra to highlight the efforts made to ensure that the economy was ICT driven in Accra, Prof. Oquaye noted that with the steps taken so far Ghana would soon become a destination of investment in the IT-Enabled Service, particularly business process outsourcing. He said government had received credit facility from the International Finance Corporation (IFC) under the eGhana project to set up an Information Technology Enabling Services (ITES) Secretariat. "The Secretariat is designed to boost viable private sector economic activities in ICT, build capacity of small and medium-sized enterprises and generate new and sustainable employment and develop the private sector enabling environment," he added. Prof. Oquaye said as part of the process, a 50-acre ICT Park to house ICT related businesses was underway and six million dollars had been set aside to support SMEs including Business Process Outsourcing (BPO). "The government has also contracted the Ghana Standards Board to develop a comprehensive quality assurance certification and testing standards to improve the quality of ICT products provided in the country and improve the country's international competitiveness." He said efforts were far advanced to resolve some of the key challenges confronting the ICT business operations, prominent among which was the creation of a backbone infrastructure to provide open access broadband connectivity nationwide on which the private sector would link to provide ICT services to their clients. The Minister said the first phase of the project being implemented from the concessionary loan facility of US$30 million secured from the Government of China had commenced. He said an additional US$70 million was being negotiated from the Chinese government to start the second phase of the project including the eGovernment Connectivity Infrastructure component. Prof. Oquaye noted that the government had introduced a number of policies and legislations to reduce the risk of investment and improve sector responsiveness and competitiveness. The minister therefore called on the private sector, as well as development partners to take advantage of these development opportunities as Ghana geared herself up to create opportunities of the deployment of ICT in governance. (SOURCE: GNA) IN BRIEF:- The Foundation for Free Information Infrastructure (FFII) has offered a prize for the best campaign against Microsoft's attempt to gain international standardisation for its Office format. - In Uganda, the Government will to start an Information and Communication Technology (ICT) course at Busitema University, this year. The centre will develop marketable skills among students graduating from secondary schools, and provide industrial training and internship for students from higher institutions.
M-CEL RUNNING AT A PROFIT IN MOZAMBIQUEMozambique's publicly owned cell phone company M-Cel is now running at a healthy profit while its sole competitor, the South African owned Vodacom, is still making heavy losses. According to a press release issued by M-Cel, the company made a profit of 491 million meticais (about US$19.6 million) in 2006. Total revenue in 2006 was 4.4 billion meticais (about US$170 million), which was an increase of 29 per cent over the 2005 figure, M-Cel boasts that it holds 70 per cent of the Mozambican cell phone market with a total of 1.48 million clients in December. Vodacom's latest financial statement, issued in March, admitted to a loss of ZAR177 million (about US$25 million) on its Mozambican operations. Mozambique is the only country where Vodacom is running at a loss. Its other operations (in South Africa, Lesotho, Tanzania and the Democratic Republic of Congo) are all profitable. Vodacom claims 988,000 clients in Mozambique, and says this is 35 per cent of the market. M-Cel claims a far larger geographical coverage than Vodacom: its latest adverts say that it is the only mobile phone service provider that covers the entire length of the country's main north-south highway, from Maputo to the northern province of Cabo Delgado. (SOURCE: Agencia de Informacao de Mocambique) BUONGIORNO BUYS SOUTH AFRICA’S ITOUCH FOR €141MSouth African-born technology company iTouch is being bought out for €141m by Italian digital entertainment specialist Buongiorno. iTouch was formed in Cape Town in 1995 and started out by developing SMS services and interactive voice response technologies. The company now has branches in 13 countries, selling its mobile entertainment products and services to operators in 23 countries. The company listed on the London Stock Exchange in 2000, but hit financial difficulties in 2001 and 2002 and clocked up operating losses. It delisted in June 2005, through an acquisition by For-side.com in Japan for £184m. It is now privately owned after a management buyout in February this year. The company’s current investors are its managers, alongside Oak Investment Partners with 40% and Goldman Sachs with 20%. Buongiorno supplies services for wireless and fixed-line consumers and is a dominant player in Europe and the US. It also has operations in Latin America, the Middle East and Africa. Buongiorno will pay €129m to iTouch shareholders in a combination of €73,7m cash and the issue of 15,4- million new shares, giving the iTouch managers a direct stake in Buongiorno. The shares will represent 14,5% of Buongiorno’s business. Buongiorno will also absorb the €12m debt that iTouch has accrued. It will borrow €115m from Banca IMI to fund the deal, which is subject to approval by its shareholders. iTouch CEO and co-founder Wayne Pitout said the market for mobile value-added services held major opportunities, but required the players to have a formidable size and global scale. The combined company should benefit from lower running costs and the scale to achieve a tangible improvement in profit margins. The deal would also reduce the business risk that iTouch faced as a solo entity by improving its geographic reach and delivery channels. After the acquisition, Buongiorno will have more than 1100 staff delivering services in more than 40 countries. That will make it the world’s largest provider of mobile entertainment, information, messaging and marketing services. Last year, their combined revenues stood at €318m with earnings before interest, tax, depreciation and amortisation of €39m. The acquisition of iTouch was an important step in Buongiorno’s strategy to build a global organisation, said its founder and chairman, Mauro del Rio. Its global presence, wide product range and various delivery channels would put the combined entity in a very strong position to benefit from the significant growth that was expected for mobile value-added services, he said. “The combination of Buongiorno and iTouch creates the undisputed number one player in the mobile entertainment market worldwide,” said Buongiorno CEO Andrea Casalini. “More than 1100 strong professionals will now become one team and will be able to align their skills, creativity and passion behind a common goal of bringing digital entertainment experiences to 1-billion people worldwide by 2012,” Casalini said . (SOURCE: Business Day) UGANDA’S MPS ALLOW GOVERNMENT TO GET SH48B LOAN FOR CHINESE BACKBONE PROJECTParliament has allowed the Government to borrow $30m (about sh48b) from China to improve the communication sector. The money, to be borrowed from the Export and Import Bank of China, will fund the National Data Transmission Backbone Infrastructure project. "The purpose of the project is to improve the communication infrastructure in the country, reduce the cost of communication and improve communication within the Government," the finance minister, Ezra Suruma, told Parliament on Tuesday. Under the first phase of the project, E-Government infrastructure will be established in Kampala, Entebbe and Jinja, according to the national economy committee that scrutinised the loan request. The committee added that the project would be extended to other districts by 2010. The chairman, Ibrahim Lubega Kaddunabbi, noted that through the E-Government infrastructure, the flow of information to citizens would be timely and credible. He explained that district headquarters would also be connected to the Internet and information and communication access points would be established at sub-counties. However, the legislators were concerned that the Government had already signed a memorandum of understanding with a Chinese contractor, Huawei, who had started working on the project before Parliament had approved the loan. They further noted that the loan terms were not in line with the National Debt Strategy and the International Development Association acceptable concession terms, which require all such loans to have a repayment period of 40 years with 10 years grace period. The loan repayment period is 40 years with a five-year grace period. (SOURCE: New Vision) IN BRIEF:- The Kenyan government has begun the process of selling a 25% stake in the country’s largest cellular operator, Safaricom. Authorities are seeking an adviser to handle the initial public offering (IPO) of a 25% stake in the cellco. A newspaper advertisement stated: ‘The government wishes to offer to the public 25% of Safaricom shares through an IPO on the Nairobi Stock Exchange under the ongoing privatisation programme.’ The state currently owns 60% of Safricom, with 35% held by Vodafone of the UK and the remaining 5% owned by local investment group Mobitelea Ventures, believed to be in the hands of the son of a well-known Kenyan politician.
NATIONAL ANTI-CORRUPTION FORUM LAUNCHES PORTAL IN MOZAMBIQUEMozambique's National Anti-Corruption Forum (FNAC) launched its Internet portal in Maputo on Monday, at a ceremony held on the premises of the Ministry of Science and Technology. The new portal - www.forumanticorrupcao.gov.mz - contains legislation, news, documents, and strategies. The documents, so far, are being presented only in Portuguese, but soon they will be translated into English. The portal is part of the government's effort to make information available to the public about the activities of the FNAC, and allow an exchange of opinions and information between the members of this body as a means to guarantee transparency and permanent action in the fight against corruption. Science and Technology Minister Venancio Massingue said that the success of the portal will be measured by its use by the public. The website, he added, "is an instrument for consultation and exchange of experiences, ideas and suggestions on how we can tackle better the corruption phenomenon". He added that "the government has defined this priority because it acknowledges that corruption is a phenomenon that perpetuates underdevelopment, poverty and social exclusion in our country, and is the main source of the erosion of social justice and the moral fabric of society". Corruption, Massingue continued, was "the enemy of all Mozambicans", and "tends to promote mistrust towards politics and the politicians, business people, and civil servants. It affects the interest of investors and the involvement of the public in the necessary effort to develop our country". For his part, Attorney General Joaquim Madeira, who is the deputy chairperson of the Forum, stressed the importance of the portal saying that "words can fly away, but what is written down remains". The new portal will also allow correspondence between the FNAC members, through a webmail, that will not be accessible by the public at large. Prime Minister Luisa Diogo chairs the Forum, but she was absent from Maputo - nonetheless, her speech appeared on the website, declaring that "international experience shows that corruption endangers the stability and security of societies, undermines the values of democracy and morality, affects socio-economic and political development, the legality of administrative acts, and reduces the level of confidence in the government and state institutions". She added that, aware of these negative consequences, "the Mozambican government places the fight against corruption as a constant feature in the Reform of the Public Sector". (SOURCE: Agencia de Informacao de Mocambique) INTERNET SECOND HOME FOR 'SILVER SURFERS' IN SOUTH AFRICA'Silver surfers' are becoming the fastest growing demographic group, according to Online Publishers Association (OPA). "Eschewing their technophobic tendencies, and coaxed online by their grandchildren, over 65 year-old wired seniors are getting so hooked on the Internet that many of them consider cyberspace their second home," says Matt Buckland of the OPA. "Whether new to the web or aging Internet-loving baby-boomers, they are becoming avid online researchers, seeking information on every subject from theatre and travel reviews, hobby tips and weather reports to medical facts and financial data. Reading the news is also as important to this emerging stereotype, as maintaining family ties (via email) and managing their health." The new digital divide created by retirees seems to have brought Internet usage full circle. As a distinct cohort, wired seniors look like the early Internet population. With 60% of them men, they are more likely than their offline peers to be married, highly educated and enjoying relatively high retirement incomes. And they're having fun on the Internet, according to the OPA. They love playing games and listening to music, but are reluctant to conduct commercial transactions online. And, because they are not yet as technology-savvy as younger generations, older people are more vulnerable to software intrusions - sitting ducks for unwanted software invaders and viruses. "But older people have a natural sense of caution born out of fear that one wrong click will land them in dangerous territory," says Buckland. "This inherent prudence is encouraging them to not only adopt more spyware, but take greater precautions against online fraud." While silver surfer trends are being set by the US - where 22% of over 65s use the Internet (a jump of 47% between 2000 - 4) - they are only just starting out in SA, where high broadband costs have been prohibiting widespread Internet use. Silver surfers are mostly retired so cannot use the office for surfing, which is the primary place where people log on in this country. In the UK, where broadband use is easily affordable to the masses, there is even an annual 'Silver Surfer Day', on which younger people are encouraged to train their elders in Internet usage. "Until South Africa's prices come down, our wired seniors will lag behind the rest of the world, denying online advertisers the chance to connect with potentially lucrative retirees with money in their pockets and online shopping time on their hands," concludes Buckland. (SOURCE: Biz-Community)
PEOPLEThe Commonwealth Telecommunications Organisation has announced that Bashir Patel will become its new Director of Programmes and Business Development from Monday 2nd July. Printer vendor Xerox has appointed Natesh Mani director for its office business division in the Middle East and Africa. EVENTS- SATWIBB AFRICA: AFRICAN SATELLITE & WIRELESS BROADBAND CONFERENCE & VOIP FORUM EAST AFRICA: Safari Park Hotel, Nairobi, 11-13 July 2007
Theme: ”Broadband bridges across Africa: First and last mile solutions” Local and international industry leaders will make presentations on the following topics:
The event also includes a Masterclass on Building Wireless Communities by Paul Munnery, CEO, Wireless Digital Cities, UK To request full details, email info@aitecafrica.com or log on to www.aitecafrica.com ICT FOR CIVIL SOCIETY 17-18 July, Wanderers Club, Johannesburg, South Africa The theme of this year's event is "Applications for the Development Sector". The event coincides with SANGONeT's twentieth anniversary, and will reflect on the progress that South African NGOs have made over the past 20 years in adopting and integrating ICTs in their work. For further information visit http://www.sangonet.org.za/conference2007 - TELECOMS WORLD AFRICA 31st July - 2nd August 2007, Johannesburg, South Africa Key decision-makers in South Africa and leading international players will share their expertise and forge invaluable business relationships in a highly interactive environment. For further information visit www.terrapinn.com/2007/telecomza - WI-WORLD AFRICA 2007 27 – 30 August 2007, Michelangelo Hotel, Johannesburg, South Africa. In Africa, fixed-line infrastructure is lacking and there is a major problem with copper wire theft. Wireless communication is therefore a great alternative. For further information visit www.terrapinn.com/2007/telecomza - IWEEK CONFERENCE 5-7 September 2007, Johannesburg, South Africa ISPA and UniForum SA are proud to state that this is the 6th year that they have been hosting and running iWeek, the Internet industry's premier conference. Registration is now open at http://www.ispa.org.za/iweek/2007/apply.shtml - ICT AFRICA 2007 October 1-5, 2007, Kenyatta International Conference Centre, Nairobi, Kenya ICT Africa is an annual continental information and communications technology conference addressing all aspects of ICT development in Africa. The conference is convened by NEPAD council in collaboration with the NEPAD Kenya secretariat. The 2007 event will be organized by Global Conferences, Cape Town, South Africa. For further information contact rjacobs@globalconf.co.za - INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT (IPAD) CENTRAL AFRICA 3rd - 5th October, Kinshasa, Democratic Republic of Congo iPAD Central Africa 2006 provides an opportunity to network directly with key partners. The event aims to facilitate regional planning and collaborations under one roof between government, the public sector and business. iPAD Central Africa 2006 is a one-stop-shop for investigating investment opportunities in DRC and the Central African region as a whole. For further information visit http://www.spintelligent-events.com/ipad-central2006/en/ JOBS AND OPPORTUNITIESERICSSON CUSTOMER WAREHOUSE CO-ORDINATOR – SOUTHERN AFRICA The company is looking for a experienced Ericsson Customer Warehouse Co-ordinator that has at least 1-2 years experience, You need to have excellent Cutomer Service and Co-ordinator skills to be able to apply for this position. For further information contact advertising@balancingact-africa.com CONTRACTS: WHO'S SELLING WHAT TO WHOM?GLOBACOM AND SHELL – NIGERIA Globacom emerged as the official telecoms partner for Shell Petroleum Development Company (SPDC). Under the partnership, Globacom will provide telecom infrastructure such as Base Transceiver Stations (BTSs) and microwaves, voice and data transmission services, bulk SMS service, international telecommunications and value added services including Blackberry and Vehicle Tracking services. OTA AND REDLINE – ALGERIA Redline Communications has won a contract from Orascom Telecom Algeria (OTA) to provide wireless backhaul for the expansion of its Djezzy GSM network in the country, writes AFX News. No financial terms were disclosed, but it is understood that the vendor will supply its RedCONNEX AN-30e and AN-50e products under the deal.
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