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WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday. ISSUE NO 460 26th June 2009 East Africa’s mobile competition cauldron grinds up new entrants and spits them outWith news that Tanzania’s seventh mobile operator Sasatel is entering the market, East Africa is proving to be a testing ground for high levels of mobile market competition. Those countries with four or more operators have been extremely good for consumers but are exacting a heavy toll on new entrants. Russell Southwood looked behind the smoke of this battle to see what’s actually happening. With Essar announcing that it will become the sixth mobile operator in Uganda, the last wave of new entrants and some of the more established players must be wondering what happens next. Uganda currently has five mobile operators: MTN, utl (owned by Libya’s Lap Green), Zain (2.5 million subscribers), Warid and Orange. MTN remains the dominant player with 4.3 million subscribers and a 56% market share. On the data side it has 72 WiMAX sites across 60 districts. However, what was once a fairly cosy three-way tussle between MTN, utl and Zain is turning into a grinding war of attrition for all but the leader player. Warid Telecom bought together Pakistani expertise with Gulf money. Warid Pakistan (which is partly owned by the SingTel Group) persuaded a group of Gulf investors that it could use its Pakistan experience to launch a mobile voice and data company in Africa. What had been proven elsewhere would be a winning formula in Africa. The other new entrant is Orange which acquired Hits Telecom (another vehicle floated on Gulf money) before it launched. Since its launch last year Warid has been very confident and has announced that it has crossed the 1.3 million subscriber mark with 60% population coverage. However, both Warid and Orange are desperate to see the introduction of number portability as it has been hard to persuade existing subscribers to leave existing providers if they can’t take their number with them. Both are collaborating closely on infrastructure sharing with both sharing channels on base stations. For a number of reasons, including interference between FDD and TTD, Warid has only rolled out its Motorola wireless offer to 29 sites Kampala, 1 in Jinja and 1 in Mokono. Orange launched more recently but is claiming 200,000 subscribers with a 0.5 million target by year end. People who know the industry well find it hard to believe that either of these sets of figures from the new entrants tells the whole story or that any of the operators (except probably MTN) is making any money at this point. The usual wild rumours are circulating that Warid’s investor has called a halt to further investment. Whilst all operators are anxious to avoid mentioning a price war that is actually what has been happening under the cut and thrust of tactical marketing offers. The MTN Zone offer has been particularly successful. It operates airtime like a budget airline: if you’re at a busy base station, the price of calling goes up and if it’s less busy it goes down. People have waited before going into work (through Kampala increasing traffic jams) to make calls more cheaply at home. Besides attracting use, the other joy for MTN is that it evens out network use and helps ease network congestion. By contrast, Warid Telecom’s extremely generous promotional offer has attracted lots of users but made them a great deal less money. Indeed a side-effect of the promotion has been the closure of a number of its channel dealerships who found it difficult to make new customer sales when it was running. Even before Orange entered the market, ARPUs had already gone down. In 2006, they ranged between US$8.3-12.7 and fell at the end of last year to between US$6.34-9.50. So new entrants are faced with lower levels of income and eye-wateringly high initial levels of marketing and network roll-out spend. But if you think this is bad, pity the poor new entrants in the Kenyan market. Although Orange was able to announce it had reached 1 million subscribers, this position was bought at some considerable cost. CEO Dominique St Jean also said that ARPUs had sunk as low as US$2.67, a level at which it can hardly be profitable. Essar, the other new entrant, who is also raring to go into Uganda, has only 200,000 subscribers. Safaricom which has around 80% of the market also saw falling ARPUs but with this level of market dominance it can afford to play “last man standing” with a much greater chance of success than the other operators. Even before there was this level of competition, Zain’s last annual report dolefully noted that Zain Kenya was the worst performing of its Kenyan subsidiaries. This grinding competition has its costs to those involved. Zain Kenya seems to go through CEOs on a fairly regular basis. Orange CEO Dominique St Jean is leaving after only 18 months. There are probably good reasons that have nothing to with that ARPU figure but you can’t help wondering. The dilemma is particularly acute for Orange as it has “bet the store” on seeing growth out of Africa. Everyone has bowed down before the gods of market share because as it goes, this is a volume business. Perhaps now is the time for shaky new entrants to wonder how they can make money on a permanent 5-10% market share? Also, network sharing and number portability are essential ways of keeping the cost base in check. Maybe in future regulators and operators need to look at how an MVNO might work in these circumstances. That said, it would be wrong to fear a company going out of business and as long as there are investors willing to enter the market, bring it on.
Seventh mobile operator has launched operations in TanzaniaTelecom operator Dovetel Limited last week lunched under the brand name Sasatel as the seventh company to provide mobile telephony services in the country. Sasatel said in a statement in Dar es Salaam that the rollout of its network would be undertaken in phases. The initial rollout covers major parts of the city: the entire central business district, the Kariakoo area, Ilala, Mikocheni, Mbagala and Buguruni. Later it will be expanded to other parts of the country. The initial network coverage is also enhanced by towers at Changanyikeni, University of Dar es Salaam, Mbezi Tangibovu, Kwa Komba, Oysterbay, the Ubungo Bus Terminal area, Tabata Dampo, Vingunguti, Tazara, Kwa Simba, Karakata, the Julius Nyerere International airport, Yombo Vituka, Temeke, Sabasaba, Kigamboni, Msasani Peninsula, Sinza, Mwenge and Kawe. "In the next phase of network expansion, the company will cover the rest of Dar es Salaam and all other major cities in Tanzania," the statement said. The Tanzania Communications Regulatory Authority (TCRA) licensed Dovetel in June last year. Prof Peter Chitamu, a Tanzanian citizen who teaches telecommunication in South Africa, founded it in 2005. The firm, whose operations are funded through PME Infrastructure Fund that has a 65 per cent stake in the business, has a licence for voice and data services, Internet service provision as well as international gateway services. TCRA director-general John Nkoma said last month that by last year there were about 13 million Simcards in use in Tanzania. Vodacom Tanzania accounted for 41 per cent of the market share followed by Zain which has nearly 30 per cent and Tigo with 20 per cent. TCRA statistics showed that Zantel, TTCL Mobile and Benson Informatics accounted for eight, two and 0.023 per cent of the market respectively. Sasatel said that with a CDMA network, it would provide high speed Internet connection and offer pre-paid bundles that would be charged on monthly. "Right now, we can offer fixed wireless phones that have Internet connectivity capabilities as well as mobile phones at attractive prices. All our fixed wireless phones have data capabilities," managing director and chief marketing officer Christopher Haeger noted in the statement. Marketing and public relations manager Derick Byarugaba said the company would soon be able to supply WiFi enabled Internet routers and broadband EVDO modems for high speed Internet connections. (Source: The Citizen) France Telecom Obtains Third Mobile Phone Licence in TunisiaThe Ministry of Communication Technologies has announced that the consortium composed of Divona/ Orange -France-Telecom, presented the best technical offer for the attribution of Tunisia's second and third generation mobile phone licence. The consorium becomes the preferred chosen bidder pending the completion of the provisions included in the procedures of the international call for tender. The entrance of a new telecommunications operator on the market aims at boosting the telecommunications landscape (land lines, mobile phones, broadband internet), promoting investment and employment and sustaining the business climate in Tunisia. The Ministry of Communication Technologies indicates that the decree 2009-283 dated February 2, 2009 sets the terms and attribution procedures for a 2nd and 3rd generation public network telecommunications licence. The two other existing companies are TunisieTelecom and Orascom's Tunisiana. According to 2008 figures, there are more than 9 million mobile phone users in Tunisia for a population of 10.2 million. (Source: Tunisia Online News) Globacom interested in acquiring Nitel in Nigeria, Glo One to arrive September 09Globalcom Limited on Monday confirmed its interest in acquiring Nitel saying it wants to save the nation's asset from collapsing rather than creating monopoly in the sector. Chief operating officer of Globacom Jameel Mohammed who stated this during an interactive session with media executives in Lagos on Monday said what is happening to Nitel now required sober reflection emphasizing that the chairman of Globacom, Mike Adenuga Jr is willing and ready to turn around the ailing Nitel if given opportunity to do so. The federal government last month withdrew Nitel from Transcorp ownership over its failure to inject the required funds within 100 days of the sale and also lack international technical partner to run Nitel. "We are bidding for Nitel because of its infrastructure. Our Chairman is passionate about this. He does not want the company to collapse. He sees it as his responsibility to safe Nitel from imminent collapse. If we are given the chance, Nitel will be turned around and we will create a balanced network", Mohammed said. Mohammed however ruled out the possibility of the creation of monopoly market once Globacom acquired Nitel. "It is not in our agenda to monopolize the market. It will even be a challenge for us to turn around the company to international standard but are ready to take up the challenge", he said As part of the company's expansion process, Mohammed confirmed that the organization is laying a $800 million marine cable from London, passing through 9,037 kilometres to Nigeria. The cable, he said would arrive Nigeria in September. (Source: Daily Trust) Orascom settles dispute with ChadReuters reports that Egypt's Orascom Telecom (OT) has announced that it has received USD4.9 million from Chad in a settlement over ownership of a Chadian mobile operator. Chad's telecommunications ministry, the Office Tchadien de Regulation des Telecommunications (OTRT), invalidated the transfer of a 51% stake in Tchad Mobile from fixed line incumbent SOTEL, which would have given OT outright ownership. The Chadian Ministry of Telecommunications questioned the validity of the transfer, despite the fact that a valid agreement was entered into in late 2002 between the two companies. As a result the Egyptian firm suspended the operations of Tchad Mobile in July 2004. OT took the case to the International Chamber of Commerce (ICC) in March 2005, which ruled against SOTEL and the Chadian government. (Source: Telegeography) In brief:- Mobile phone subscribers who will fail to register their SIM cards by the end of this year, will be locked out of the country's communication system, the Tanzania Communications Regulatory Authority said. - Nigeria’s Minister of information and communications, Prof Dora Akunyili has said that after reviewing the existing telecommunications policy, the Federal Government has decided to bring in a new policy that will reshape the telecommunication sector in Nigeria. A court under the control of a Somali Islamist insurgent group al-Shabab has ordered four young men suspected of stealing guns and mobile phones to have a hand and a leg amputated, but the punishment was postponed. An al-Shabab spokesman told the Associated Press the sentence would be carried out but was delayed because of fears the men could bleed to death in the hot weather. The human rights organization Amnesty International has condemned the amputation sentences as a violation of international law.
Somali Pirates Hold Back Seacom Cable, new opening date is 23 JulyPirates off the coast of Somalia have scuttled plans for the long- awaited Seacom cable to be switched on this month because a cable-laying ship was unable to enter some treacherous territories. In what must be the most unusual excuse ever presented for a delayed telecoms project, Seacom said the bandits intensified their attacks and spread their nets wider in April and last month , making it too dangerous for its crew and cargo to enter areas where other ships had been attacked or seized. Last month CEO Brian Herlihy spoke about the piracy problem, and warned that the June 27 switch-on could be delayed because of the seafaring saboteurs. The cable laying is now complete but the switch-on will now happen on July 23. It may happen sooner, Herlihy said, as Seacom was working with cable layer Tyco Telecommunications to see if the final stages could be speeded up. "While I am truly disappointed by the delay, it was imperative that strong measures be put in place to guarantee the successful completion of the cable system and the safety of the ship and its crews. "This setback should, however, be seen against the Herculean efforts made by the team to see this project come to fruition over an incredibly tight schedule of only 18 months," he said. The 17000m, 600m cable was laid from India down Africa's east coast almost without incident until it reached the Horn of Africa when Tyco insisted that Seacom stopped displaying the location of the ship on its website. It also eavesdropped on pirates referring to its ship as a potentially lucrative ransom target, and hired a private gunboat to protect it. (Source: Business Day) Dark Fibre launched network in South AfricaTelecoms infrastructure company Dark Fibre Africa officially launched its network on Tuesday after laying 800km of fibre-optic cable to lease out to cellular operators and Internet service providers. The company has laid networks in Johannesburg, Pretoria, Durban and Cape Town, carrying the physical costs and aiming to recoup its cash by supplying bandwidth to numerous operators that need to boost their capacity for voice, data and video services. Dark Fibre will maintain and monitor the networks, which have cost it R1.5bn so far. Its financial backers have pledged a total of R2bn, and include Community Investment Ventures, Venfin and Absa Capital. Sales and marketing manager Malcolm Kirby said this week individual service providers were leasing the cable and "lighting" it by delivering high-speed services to their customers. That saved them from having to expand their networks themselves, and meant the capacity was already there as soon as they needed it. Its cables should have enough capacity to accommodate all the network operators, and it has concentrated in metropolitan areas where there was a high chance of selling capacity to operators struggling to cope with bandwidth congestion. The bandwidth could also be used by smaller companies including Internet service providers that cannot afford to build their own infrastructure. Dark Fibre has been rolling out its network since October 2007 but does not expect to be cash flow positive until next year or 2011. "The network was designed with excess capacity to accommodate all service providers and it is no longer necessary for any additional trenches to be dug by service providers where Dark Fibre Africa already has a network," Kirby said. "This dramatically reduces the disruption of road traffic and municipal services and allows operators to provide their services far more rapidly to customers." (Source: Business Day) Tanzania’s President calls on Telephone Firms to help build the national backbonePresident Jakaya Kikwete has directed the ministry of Communications; Science and Technology get in touch with mobile phone companies and see if they would work together in the construction of the National Fibre Optic Cable. Speaking last week, President Kikwete underscored the importance of the cable, noting that it was instrumental in pushing forward development initiatives. The cable network will cover 7,000km throughout the country. President Kikwete made the remarks in Dar es Salaam last week when he met Tigo, Zantel and Zain officials who paid him a courtesy call at State House. He said the Government would like to involve the companies in the establishment of the network instead of each company doing it individually. The officials told President Kikwete of their intention to cooperate in the construction of the network. This comes after the companies had initially shown reluctance in teaming up with the Government in the work. The cable is expected to improve and reduce the cost of ICT services in the country. "It was my desire from the beginning that all stakeholders should cooperate in this project so as to reduce costs because the cable will be used by all of us," said President Kikwete. The work of laying the cable is estimated to cost $ 170 million (Sh222.7 billion). The Government has decided to secure a loan from China. President Kikwete said the Government should fully participate in the construction of the network as its desire was to see that it was used for development, and not for making profits only. (Source: The Citizen) In brief:- In Kenya, Jamii Telecommunications Limited has become Safaricoms broadband infrastructure provider. Jamii Telecommunications is one of Kenya's leading broadband infrastructure providers and this alliance effectively gives Safaricom access to its over 1,000 kilometres of fibre network in its cities of operation. - Telesat, the world's fourth largest fixed satellite services operator, announced that Intersat Africa Ltd., of Nairobi, Kenya (Intersat) has signed a multi-year agreement for more than a full transponder on Telesat's new Telstar 11N satellite. - WIOCC has announced that the first section of the EASSy submarine cable - the Maputo shore-end - has been loaded and it is now on course for Mozambique. Maputo is unique (for EASSy) in requiring a separate shore-end cable. This is where a special ship is needed to land the cable due to shallow water. Once it arrives in Maputo, the shore-end cable will be transferred onto a barge and will be installed during August and September. There is also a ‘land cable’ - the cable that runs between the landing station and the beach man-hole - which will also be shipped out and installed soon. - Astrium and Eutelsat Communications announced at the Paris Airshow the signature of a five-year contract for 36MHz of capacity on the new W2A satellite. Astrium Services will provide coverage for their existing and future customers across Africa. - The Association for Progressive Communications (APC) has welcomed steps by minister of communications Siphiwe Nyanda to finalise a national broadband policy. Speaking during his budget speech in Parliament earlier this week, Nyanda emphasised the role of broadband and said his department would finalise a national policy by March 2010. - Telkom South Africa filed its latest tariff adjustments with ICASA which sees an overall price increase of 1.7%. The company left its monthly subscription charges for DSL, Do Broadband and TelkomInternet unchanged, but provided higher usage limits for the DSL accounts. TelkomInternet all access 2GB subscribers will get 3 GB of usage from 1 August while current 3 GB account holders will be bumped up to 5 GB of usage per month. The higher monthly usage limits are good news for many Telkom ADSL clients, but the bad news is that strict capping is back.
Ban On Used Computers Comes With Mixed Fortunes in UgandaAccording to the recently read budget, used computers will no longer be seen in our shops after the three-month grace period has elapsed. Over the past decade, computer literacy has risen sharply. It is being taught in primary school, used in digital music and video businesses, in secretarial bureaus, and Internet cafes. However, it's worth noting that most of these are used computers. Along the streets of Kampala, for every brand new computer displayed in a window, are 10 or more used computers piled up at another end. The cost of a brand new computer today ranges from Shs500,000 upwards while the used ones have been sold at as low as Shs100,000. It's this difference in price that Isaac Mutalya, who works at Net Café in Kireka, believes might discourage further starting up of similar ventures. "We are all able to start these businesses because we can get computers at affordable prices. Now what will happen if everybody has to spend Shs1m if they are going to buy a computer? You need about 10 computers to start a café. Will poor people be able to open them if they don't have Shs10m?" James Wire, an IT specialist, says the ban will affect business dealers who have been surviving on used computers. "Some people will lose immediate revenue; some of them get those computers, free of charge after they are dumped here. Some businesses will also have to close and some people will lose jobs," he says. Schools are set to be one of the most affected groups. Because they use many computers, they will now have to spend more to get enough computers that will serve all students. Mr Wire says it will be like a death sentence to schools which can't afford new computers. However, it is not all gloom that comes with the ban. Among the positive steps that will result from it is the fact that it will put an end to dumping of products deemed no longer useful in developed countries to Uganda. "In most developed countries, there is a lot of electronic waste and the cost of disposing off this waste is so high so they dump them here under the guise of charity," says Wire. He argued that the computers do not have a long life and then leave the recipient countries to deal with the waste. Dr Fabian Nabugoomu, the Dean of the Faculty of Information Technology at Uganda Christian University, says that, the ban now gives us a chance to move with the times. He argues that the technologies that applied in 2000 do not apply now. Instead of being held back by obsolete technologies that many secondhand computers use, we should embrace what is new. Although secondhand computers might seem cheap at first, their subsequent costs are usually higher. Dr Nabugoomu says that, "When you buy a secondhand computer today because it is cheap, by the end of five years, you will have spent more money than a new one costs as you try to upgrade it." Wire also notes that, "Used computers look cheap initially but after you get it, you will realise you cannot find compatible parts for that computer and in the end, you have to look for a similar computer to get that part, which is a waste of time and money." Despite the benefits of using new computers, there is no denying the price is still high. Dr Nabugoomu says that, "The question we should be asking the government now is where the affordable new computers are coming from!" (Source: The Monitor) Techno Hubs Planned for Townships in South AfricaAs part of its ambitious broadband project, the City of Johannesburg plans to set up techno hubs where people can access the Internet and boost their technology skills. According to Vumani Mangali, the assistant director of Information Communication Technology (ICT) in Joburg's Economic Development Department, the project will be a vital tool to transport citizens to digital fluency. Besides transforming the way the city delivers its services, broadband will also offer beneficiary programmes to its residents, reports Joburg.org. "These programmes linked to broadband are meant to empower citizens. They will provide access to ICT infrastructure, ICT skills, business advice and job advisory support for disadvantaged communities," he said. The main focus of the broadband beneficiary programme will be multi-service digital centres - techno hubs - that will house existing and future programmes aimed at helping people develop, among others, computer, entrepreneurial and job-seeking skills. These techno hubs will be a joint effort between the economic development and community development departments, and focus on previously disadvantaged areas, according to Mangali. "By establishing the techno hubs, we will be creating a 'one stop shop' for learners wishing to advance themselves in computer technology and in the process open up their chances of being marketable when they go out looking for jobs," he said. His department is busy designing the techno hubs. Orange Farm has been identified for a techno hub, which hopefully will be established in one of the township's community centres. The service provider for the broadband project has been chosen and the city is busy with auditing. However, Mangali concedes that it still has a huge task ahead to bring the new communication technology to its citizens. "Before we came up with the idea of techno hubs, we asked ourselves the question: how can we advance the lives of the people living in townships through improved technology? "For example, how will a sewing project in the township benefit from the setting up of a computer centre at the same premises? [The answer is] they will be able to use computers, draw up their own fliers and even create their own websites," he said. In other words, on top of helping people acquire digital skills, techno hubs will help to develop small, medium and micro enterprises (SMMEs). "People in the age groups between 40 and 50 can also come for help because they are the ones mostly looking into establishing their own businesses. "So we won't be exclusively concentrating on youth - we want to create a kind of 'vibey' environment for youth and small business development," he said. Since most townships lack internet cafes, a concerted effort will be made to encourage young people to open up internet cafes. "In consultation with ward councillors, we would also like to see a situation where youth are able to own their own businesses in the ICT [sector] in townships," he said. There are already established sites around the city where techno hubs can be set up. These include the youth advisory centres in Randburg, Yeoville and Bellavista. More sites are planned for Ivory Park and Diepsloot. To ensure the techno-hubs are sustainable, corporates and companies will be encouraged to adopt a hub. "Companies will be encouraged to donate computers and provide training for techno hub staff," Mr Mangali said. (Source: BuaNews) Reporters find Northrop Grumman data in Ghana marketA team of journalists investigating the global electronic waste business has unearthed a security problem too. In a Ghana market, they bought a computer hard drive containing sensitive documents belonging to U.S. government contractor Northrop Grumman. The drive had belonged to a Fairfax, Virginia, employee who still works for the company and contained "hundreds and hundreds of documents about government contracts," said Peter Klein, an associate professor with the University of British Columbia, who led the investigation for the Public Broadcasting Service show Frontline. He would not disclose details of the documents, but he said that they were marked "competitive sensitive" and covered company contracts with the Defense Intelligence Agency, the National Aeronautics and Space Administration and the Transportation Security Agency. The data was unencrypted, Klein said in an interview. The cost? US$40. Northrop Grumman is not sure how the drive ended up in a Ghana market, but apparently the company had hired an outside vendor to dispose of the PC. "Based on the documents we were shown, we believe this hard drive may have been stolen after one of our asset-disposal vendors took possession of the unit," the Northrop Grumman said in a statement. "Despite sophisticated safeguards, no company can inoculate itself completely against crime." A Northrop Grumman spokesman would not say who was responsible for disposing of the drive, but in its statement the company noted that "the fact that this information is outside our control is disconcerting." Some of the documents talked about how to recruit airport screeners and several of them even covered data security practices, Klein said. "It was a wonderful, ironic twist," Klein said. "Here were these contracts being awarded based on their ability to keep the data safe." According to Klein, it is common for old computers and electronic devices to be improperly dumped in developing countries such as Ghana and China, where locals scavenge the material for components, often under horrific working conditions. Last year the U.S. Government Accountability Office found that a substantial amount of the country’s e-waste ended up in developing countries, where it was often dangerously disposed of. The reporters bought seven hard drives, Klein said. The other drives contained sensitive information about their previous owners, including credit-card numbers, resumes and online account information. Off-camera, sources in Ghana told the reporters that data thieves routinely scour these hard drives for sensitive information, Klein said. Although that may be worrying to some, security experts say that there is already a vast quantity of this type of information available online from criminals who have stolen it from hacked computers. (Source: Computerworld Kenya) In Brief:- South Africa’s Department of Justice and Constitutional Development (DOJ) says it will continue to work on the transformation of the judiciary by increasing spend on IT. The budget would be spent on IT infrastructure, hardware renewal, network infrastructure, data security and the expansion and roll-out of information systems. - Four students from Makerere University's Faculty of Computing and Information Technology in Uganda will represent the country at the world's biggest IT innovations event to be held in Cairo, Egypt early next month. - Tunisia’s Ministry of education and vocational training signed a memorandum of understanding (MOU) with Intel for the training over 3 years of some 135,000 ICT instructors in the field of information and communication technologies. - The Government of Liberia through the Civil Service Agency has revealed that it will shortly lunch a Biometric ID Card system as part of its reform strategy.
Nigeria’s First Bank and Others Finance US$240 Million for MainOne Fibre CableFirst Bank of Nigeria Plc in collaboration with Skye Bank and African Finance Corporation (AFC), have signed a US$240 million financing deal with MainOne Cable Company, a private sector-led initiative with Main Street Technologies as sponsor. The deal is for the construction of a sub-sea cable to deliver a 1.92 therapy per second capacity bandwidth that will provide international and internet connectivity to countries between Portugal and South Africa on the West coast of Africa. A statement from FisrtBank said the cable which is being built by world renowned telecoms giant, Tyco Telecommunications, will enable more Africans to have access to the Internet. It said the signing ceremony which took place in Lagos last Thursday, commences the installation of undersea fiber optic cable from Portugal to Nigeria to meet the needs of multiple load/lay or fast track programs like the Internet. Tyco Telecommunications' role is to put the appropriate vessel with the necessary tools in the right place at the right time for the installation. The Chairman of MainOne, Fola Adeola, said the project, on completion in June 2010 will increase the country's and indeed Africa's access to the Internet which in itself will spur growth in technological development and increased human capacity. Managing Director of FBN Capital and representative of the FirstBank Group, Mr. Bayo Adeleke, commended the audacity and vision behind the project, describing it as a compelling innovation and a major infrastructure project that will transform lives. He said FirstBank is involved in the project because of its long commitment to the nation's development. The MainOne cable system will have a design capacity of 1.92 Tbps, representing approximately 10 times the current capacity available on the West Coast. With MainOne therefore, international bandwidth prices will reduce, in addition to bandwidth intensive services such as IPTV, HDTV etc being easily provided within the region. (Source: Daily Trust) Mauritius Telecom profit down 5%, listing still onMauritius Telecom said 2008 post-tax profit fall 5 percent to 1.9 billion rupees ($59 million) on increased interest payments. Mauritius Telecom, which dominates the fixed line and mobile markets and is a leading internet service provider on the Indian Ocean island, is due to list on the nation's stock exchange. "The fall in profits is due to payment of interest on loans", chief executive Sarat Lallah told reporters on Thursday. Mauritius Telecom said turnover rose 6.5 percent to 6.8 billion rupees in 2008. "With a growth of 12 per cent, the mobile market has contributed significantly to the performance of the group," Lallah said. In May, the government imposed new taxes on phone firms of 5 percent of profit and 1.5 percent of sales as the Treasury battles to keep its budget deficit in check. The company's proposed listing last year was postponed with markets tumbling as the financial crisis rocked economies around the world. Declining to fix a date, company chairman Thomas Appalsamy said the listing was still on. "The company has completed its due diligence exercise and now shareholders are working on the price and the number of shares that will be floated on the Stock Exchange," he said. Mauritius, a remote island with a population of 1.3 million, has around 970,000 mobile subscriptions, of which more than 577,000 are with Mauritius Telecom. In 2000, the company sold a 40 percent stake to Orange, owned by France Telecom (FTE.PA). The government and the State Bank of Mauritius own 59 percent, while 1 percent is owned by present and former employees. (Source: Reuters) Sierratel secures USD29 million expansion loan from IndiaThe Sierra Leone Parliament ratified a loan agreement of $29,452,856 for the modernization and expansion of the network and telecommunications infrastructure of Sierratel. The loan agreement was provided by the India Government through the ECOWAS Bank for investment and Development for the partial financing of the project for the modernization and expansion of the network and telecommunications infrastructure of Sierratel. This is probably the first time the Indian Governement has made finance of this sort available directly to a telco in Africa and it follows the Chinese practice which is much more widely knowm. Presenting the Government motion before Parliament, the Deputy Minister of Finance and Economic Development, Momodu Kargbo said the objective of the project involved the replacement of obsolete transmission networks made of copper to a fiber optic and to provide the capacity of Sierratel to commence high speed internet. The objective is to also construct high capacity fibre network between Freetown and other areas and to computerize all aspect of the companies operation to include sound delivery and enhance revenue collection and minimize revenue leakage. The loan will also aid staff in the operation and maintainace of the network and to expand capable distribution network in Freetown and Lungi and build new network in Portloko, Makeni, Koidu and Moyamba. The agreement was signed on the 7th May, 2009 and the maturity period of the loan is for 23years with a grace period of 8years with an interest rate of 2.7% per annum. The deputy Minister revealed that the critical aspect of the project was the fiber optic that will be introduced in to the country to match up with the CDMA facility just introduced by Sierratel. (Source: Awoko Newspaper) URA orders permits firm to pay sh5bFace Technologies, the company which issues driving permits in Uganda, has not paid taxes in the past five years, the tax body has said. The Uganda Revenue Authority has consequently demanded over sh5b from the company in tax arrears, interest and penalties. Face Technologies, a South African company, was contracted in 2003 by the Ministry of Works to design, print and supply computerised driving permits. “In execution of the contract, Face Technologies earns income from Uganda and also employs staff. Consequently, income tax, PAYE and VAT liabilities arise,” URA said in a statement. An investigation, URA added, found that Face technologies did not pay any taxes in VAT, income tax and PAYE from August 2005 to September 2008. “As a result, URA under the law assessed and commenced enforcement actions to recover taxes owed by Face Technologies.” The tax body added that the decision of the company to close their office in Mbale district was made in their individual capacity. According to URA, Face Technologies has been deducting PAYE from its staff without remitting it. URA then moved to recover the money from the company’s account in Stanbic Bank but it found only about sh100m which did not cover the total arrears. Sources in URA said the contract for Face Technologies did not provide for any tax exemption. But a manager of Face Technologies, who spoke on condition of anonymity, said URA has been charging VAT on all driving permit applicants. The manager added that under the Build, Operate and Transfer (BOT) arrangement with the Government, they had been charging applicants only to recover their initial investment before handing over the project to the Government. Face Technologies, he said, has tried to talk to URA to reconcile their accounts but to no avail. They, therefore, decided to close all their up-country stations and might close the main branch if the matter remains unresolved. The company has offices in Jinja, Mbale, Kampala, Mbarara, Gulu and Fort Portal. They employ about 100 people. On the issue of PAYE, Face Technologies says they remit all salaries to Unisis, their employment agency, which is responsible for the deduction and remittance of PAYE. None of the employees, the source added, has a contract with Face Technologies, adding that they were recruited and employed by Unisis on behalf of Face Technologies. Grace Itazi, the director of transport at the works ministry, said the company’s contract is being renewed every two years until it recovers its initial investment. (Source: New Vision) In brief:- Mozambique’s Minister of Transport and Communications, Paulo Zucula, has revealed plans to partly privatise incumbent mobile operator, mCel. According to the plan at least 5% of company shares will be made exclusively available to Mozambicans, with the possibility of further sales to the international investment community. - The newly reconstituted technical board of the Nigeria Telecommunications Ltd (NITEL) has directed that an audit of the assets of the company be undertaken and a status report submitted to verify allegations of asset stripping levelled against the immediate past owner/management of Transnational Corporation of Nigeria (Transcorp) Plc. - South Africa's mobile phone operator MTN said on Wednesday that the strong depreciation of Nigeria's naira against the dollar had increased the cost of doing business at its Nigerian unit. MTN took out a loan worth $2 billion from a consortium of banks early last year to expand its mobile network in Nigeria, with 80 percent of the funds paid out in naira. The naira shed more than 20 percent of its value against the U.S. dollar at the start of the year largely because of declining world oil prices, the main source of foreign earnings in Africa's top oil producer. - Egyptian newspaper Al Borsa reports that Telecom Egypt is studying the possibility of bidding for a stake in Moroccan mobile operator Medi Telecom (Meditel) recently put up for sale by Portugal Telecom, as well as a stake in the company which Spain’s Telefonica is considering selling. The two stakes together represent over 64% of equity in the GSM operator, which also offers corporate fixed line services. - The government of Rwanda is planning to sell its 10% stake in mobile operator MTN Rwanda on the country’s bourse during the next financial year, according to Rwandan daily The New Times. The cost of buying a mobile phone in Kenya has dropped sharply after the government waived the import duty on mobile phones. Kenya's Finance Minister Uhuru Kenyatta cut the 16% VAT on new phone handsets in the government's budget statement. In parallel, ZAIN Managing Director Rene Meza has lauded the Finance Minister Mr. Uhuru Kenyatta ’s move to lower the cost of owning infrastructure by increasing the wear and tear allowance on telecommunication equipment from 12.5% to 20%, terming it as an incentive that will encourage investments as investors will able to depreciate their assets at a higher rate. Telecoms, Rates, Offers and Coverage (briefs)- Zimbabwe’s Zellco Cellular service has introduced "Billtrek", a facility that will enable customers to control their mobile phone bills. The function allows the customer to define maximum planned expenditure limit for their mobile numbers. - MTN Nigeria has secured a new numbering range with the prefix 0813. This will be available in the market next Monday, a statement from the company said. - Incumbent telco Malawi Telecoms Limited (MTL) has invested USD50 million in the upgrade of its network aimed at improving service delivery, writes Malawian online news website Nation Online, citing MTL CEO Peter Zimmer. The chief said that the new infrastructure will have a high bandwidth capacity to enhance the transfer of data and other communications needs at a much higher speed. - Helios Towers Nigeria and CDMA operator Multilink have increased the tempo of co-location services in Nigeria with the attainment of 400 HTN co-location sites milestone last week. Multilink had embarked on massive expansion of mobile telephone services to previously underserved areas. - Nigerian operator GiCell Wireless plans to invest over USD700 million in the next three years to deploy a low cost rural telephony network across the country, according to Nigerian online news source BusinessDay. The operator’s CEO, Usman Gumi, said a CDMA network covering five states is already being rolled out: ‘We intend to cover the country within three years but we are taking off from these five states to meet the World Bank requirement having been selected as the first Universal Access Service provider in Nigeria to provide telecoms to unserved and underserved areas.’ - Egypt Yellow Pages has reported that its recently released Yellow Pages iPhone application is now the Top Free Application download in the Apple Egypt AppStore.
Rural Wireless Network Success in TanzaniaThe first evaluation of a pilot in Tanzania to provide affordable Internet access to rural communities through a shared wireless (mesh) community network has been completed, and the results look promising. Eight months ago, IICD helped the Tanzania Telecentre Network (TTN) in the rural district town of Sengerema to set up a pilot to share a wireless (mesh) community network. The goal of the network is to make Internet available - and affordable - to large numbers of people who live in the rural areas around the telecentre. At the end of April 2009, TTN carried out its first evaluation of the mesh network, in cooperation with the telecentre leaders and technicians from the region. The overall results are positive: the network is functioning well and its customers are satisfied. Nevertheless, there are a couple of remaining hurdles that still have to be overcome. Sengerema Telecentre, the implementer of the mesh network, conducted a survey among seven of the eight organisations connected, to find out how the internet connection is being used and how satisfied the users are. Six out of seven organisations use the internet on a daily basis. The reasons they gave for using it were to: * communicate and study * learn more about appropriate technologies * access national and international news * find out about funding and business opportunities. One organisation reported using the information it found on the internet 'to provide training materials to young entrepreneurs, women and youths in order to improve activities.' The owner of a small enterprise said that he used the internet to 'keep myself aware of what is going on in other parts of the world.' Most of the favourite websites are Tanzanian: * Open University (http://www.out.ac.tz/) * IPP Media ( http://www.ippmedia.com/) * Tanzania National Resource Forum (http://www.tnrf.org/) * National Examinations Council (http://www.necta.go.tz/). The majority of the people interviewed were satisfied with the access to the internet and with the monthly costs. However, there were some complaints about the speed, along with interruptions in connectivity which were caused by the frequent power cuts. Since the telecentre does not have a backup generator, the internet connection is interrupted whenever power is gone, which is quite often the case in Sengerema. In spite of this, customers express their satisfaction with the service provided by the telecentre. This was confirmed when a group of telecentre leaders visited some of the organisations that were connected. As Mr Hamisi of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) explained to the visitors,“...the ease of accessing the technical person makes it very attractive to get internet through the telecentre. The telecentre is here." Telecentre leaders also visited the Sengerema District Office. Leonilla Baheka, personal secretary to the District Planning Officer, commented that much information is now sent through email to government offices in Mwanza and Dar es Salaam. In the past, this used to be sent by post. In addition to the user evaluation, a technical evaluation was also carried out. The most important lessons were as follows: * A thorough preparation phase is fundamental, including a site survey and timely procurement * Involve the local community right from the start * Focus on developing and strengthening the capacity of a local team of wireless experts * Improve the capacity of the customers (basic ICT skills, internet use, basic troubleshooting and maintenance). On top of the power cuts, one of the other major challenges is maintaining the Linux server and network. The telecentre technician, Lismas Julius, is getting more familiar with Linux, but he is still learning and will need additional training. During the evaluation workshop, supported by IICD and telecentre.org, telecentre leaders and the Commission for Science and Technology (COSTECH) started developing a replication strategy by making an overview of the costs, the technical expertise needed and available in and around Tanzania, and national and international funding opportunities. One of the recommendations from the workshop addresses one funding opportunity in particular: TTN should be accorded the highest order of consideration in accessing and benefiting from the Universal Access Fund, as TTN is one of the front runners in implementing the national ICT policy, particularly in rural areas. If the different stakeholders manage to join forces, more Tanzanian communities stand to get connected through wireless in the near future. South Africa’s Cosatu Website gets Google WarningMyBroadband recently reported that the Cosatu website needed some attention, including the removal of malicious files from the website which can harm a visitor’s computer. It also contacted Cosatu about the problem and asked for comment as to what they will do to address the problem. Cosatu did not reply to the email from MyBroadband, and the lack of action on their part has now resulted in a Google warning to Internet users not to visit the trade union’s online home. Internet users trying to visit the Cosatu website through a Google search link received the following message: “Warning - visiting this web site may harm your computer!” The Google search engine advises users to “Return to the previous page and pick another result” or “Try another search to find what you're looking for”. Users are further warned that they should only continue to cosatu.org.za at their own risk. According to Google malicious software on the Cosatu wesbite includes 6 trojans, 6 exploits and 5 scripting exploits. (Source: MyBroadband)
People- According to local newspaper, the Nation, Dominic Saint-Jean, Telkom Kenya chief executive officer, is expected to quit at the end of this month. Events* AFRIHEALTH CONFERENCE 2009 “ICT in Healthcare - Are We Doing Enough For Africa?” 14-16 July 2009, Nairobi, Kenya This is the third successive year for our prestigious Pan African conference which has gained recognition for the diversity and content of its presentations. The theme questions the extent of current research and development using ICT technology and the amount of effort being made to progress ICT developments in the African Healthcare arena. We believe that we can do much more than is presently being done for Healthcare. The Conference, in its third year, will be the meeting point for all healthcare participants to share ideas, showcase developments, and develop action plans to speed up improvements in the industry. For further information visit http://afri-health.com/ * Mobile Banking & Financial Services Africa 20-22 July 2009, Southern Sun Grayston Hotel, Johannesburg Building on the highly successful inaugural event last year, the conference will again deliver timely insights into the key business, technical and security considerations that all players in the mobile banking and payments industry in Africa must address. For more information and to book your place now, call +44 (0)20 7017 7483 or e-mail your registration to us at registrations@iir-telecoms.com or book online at http://www.iir-events.com/IIR-Conf/page.aspx?id=19296 * 11th EAST AFRICAN POWER INDUSTRY CONVENTION 11-13 August 2009, Kilimanjaro Hotel Kempinski, Dar es Salaam, Tanzania Tanzania is proud host of the 11th EAPIC, which is the strategic regional event for all stakeholders in the East African power industry. EAPIC highlights new opportunities, provides attendees with the opportunity to renew and build relationships and bring knowledge and solution to the challenges facng sustainable development in the East African power sector. For further information please click on the following link www.esi-africa.com/eapic * INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT - EAST AFRICA 11-13 August 2009, Kilimanjaro Hotel Kempinski, Dar es Salaam, Tanzania The 11th East African Power Industry Convention, as part of iPAD East Africa, aims to address crucial issues within the regional power sector and find solutions to enhance growth, productivity and profitability for business as the need for a stable power supply for industry, business and mining is pivotal to the overall development of the economy of Tanzania and the EAC. Visit: www.ipad-africa.com/east or email: nicole.smith@spintelligent.com * INTERCONNECTION COURSE 24-27 August 2009, Sandton, South Africa Good interconnection regime will help businesses boost their competitiveness in an increasingly competitive and globalised telecommunications market. This 5-day course will provide an insight into various interconnection issues including implementation, pricing models, and challenges faced by operators and regulators. For further information about this course download the brochure here http://www.cto.int/Portals/0/docs/courses/2009/interconnection%20brochure2.pdf * 4th ANNUAL CONNECTING RURAL COMMUNITIES AFRICA FORUM 25-27 August 2009, Livingstone, Zambia The only event in Sub-Saharan Africa to look beyond ICTs and how we can bypass the infrastructure difficulties to achieve connectivity? The only event in Sub-Saharan Africa which can boast 3 full days with 30 Government Ministers and ICT Regulators from over 20 countries for you to learn from and engage with. For further information visit http://www.cto.int/ * Telecoms World Africa 31 August - 4 September 2009, Cape Town international Convention Centre - Cape Town Telecoms World Africa is an established forum for the communications sector in Africa. The only one of its kind, this event provides a platform for key stakeholders to discover the opportunities for growth in Africa, and establish themselves as market leaders… For more information visit website: http://www.terrapinn.com/2009/telecomza/ or email: katia.selibas@terrapinn.co.za * INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT - CONGO DRC 6-8 October 2009, Grand Hotel, Kinshasa, Congo DRC The Infrastructure Partnerships for African Development (iPAD) DRC 2009 conference and exhibition is a platform for sound investment and collaboration in the reconstruction of the DRC - under one roof between governments, the public sector and business. iPAD DRC 2009 is a one-stop-shop for investigating investment opportunities in the DRC and the region, opening up a previously inaccessible but lucrative market. Visit: www.ipad-africa.com/drc or email: nicole.smith@spintelligent.com * MMT 09 - Mobile Money Transfer 26-27 October2009, Dubai. MMT 09 is a 'must attend' event for anyone who is serious about remittances. Over 350 mobile network operators, microfinance institutions, money transfer networks, banks and technology providers will converge at MMT 09 to discuss the best ways to make money from mobile money transfer. Nowhere else in the world will you find so many MMT project leaders all gathered in one place. For more information visit www.mobile-money-transfer.com or email harpreet.sohanpal@clarionevents.com Jobs and Opportunities* MANAGER, TELECOMMUNICATIONS BUSINESS UNIT - KENYA The Kenya Power & Lighting Company Limited is responsible for transmission and distribution of electrical energy throughout the country. Following licensing of the Company to enter telecommunications business area, the Company has established a Telecommunications Business Unit which will focus on exploiting opportunities in Fibre Optic Broadband. In this regard the Company is seeking to recruit a proactive, business focussed and results-oriented person to fill the above position. Duties & Responsibilities Reporting to the Chief Manager, Information Technology & Telecommunications, the Manager, Telecommunications Business Unit will undertake the following duties and responsibilities;- • Preparation and implementation of Telecommunications Unit Business Plan and related telecommunications business strategies with regard to Fibre Optic broadband in the Company. • Identifying areas for sale of excess dark fibres including collocation and wayleaves to be hired out to licensed operators. • Preparing contractual documents for use in sale of dark fibres, collocation and wayleaves. • Identifying suitable firm(s) for purchase of dark fibres, collocation and wayleaves. • Ensuring policy and regulating guidelines are adhered to and necessary approvals are sought from the relevant authorities. • Carrying out market analysis and developing pricing levels for sale of dark fibres. • Monitoring the telecommunications environment continuously and recommending appropriate strategies for sustained viability of the sale of dark fibres. • Managing human, financial and material resources assigned to the department. • Performing any other duties as may be assigned. The application deadline is Wednesday, 8th July 2009. To download the full job vacancy click on the following link ContractsMTN, Bharti Airtel and Ernst&Yougn - Africa India's Bharti Airtel Ltd. is likely to hire Ernst & Young and South Africa's MTN Group Ltd. is likely to mandate PricewaterhouseCoopers to advise the telecommunication companies on their merger talks, the Economic Times reported Thursday, citing an unnamed executive tracking the deal. The due-diligence processes are likely to begin next week, the report said, citing two other unnamed industry executives.
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