[Kictanet] Fw: Issue 293: EASSY Consortium reaches crunch point - Interview with Project Co-ordinator John Sihra

Balancing Act's News Update 293 (19th February 2006) ____________________________________________________________________________ Coming soon: Sudan special and T-CDMA implementation in Cameroon ____________________________________________________________________________ IN THIS ISSUE: Top Story - EASSY CONSORTIUM REACHES CRUNCH POINT FOR CHOICES ABOUT PRICING, ACCESS AND GOVERNANCE – INTERVIEW WITH PROJECT CO-ORDINATOR, JOHN SIHRA Telecoms News - SA COMMS MINISTER IN SEARCH OF “SECRET” SAT3 AGREEMENT - MALAWI CONCLUDES SALE OF INCUMBENT TELECO, MALAWI TELECOMS - RUSSIAN AFK SISTEMA PLANS TO PARTICIPATE IN GSM TENDER IN EGYPT - LIBERIA: FORMER TELECOMS MINISTER ACCUSES EXECUTIVE MANSION OVER COMIUM, CELLCOM LICENCES - ETHIOPIA’S ETC EXTENDS OPTICAL FIBER TELEPHONE LINE TO SUDAN - AREEBA SETS UP IN GUINEA WITH 18 YEAR LICENCE BUT ROW OVER TENDER RUMBLES ON - VODACOM TO LAUNCH 3G HSDPA NETWORK IN DAR ES SALAAM Internet News - ETHIOPIA’S ETC LAUNCHES VISP SERVICE TO ENCOURAGE ISP GROWTH - ABUJA'S TRAIL-BLAZING WIRELESS INTERNET NETWORK BEING BUILT BY PRIVATE-PUBLIC PARTNERSHIP - SOUTH AFRICAN SNO SPEAKS OUT ON ADSL REGULATION - BACKLASH AGAINST INTELSAT PRIVATISATION ON “LIFELINE” OBLIGATIONS BY ITSO AFRICAN MEMBERS - ZIMBABWE TO RESUSCITATE INFORMATION HUTS TO “CURB MISINFORMATION” - UGANDA’S RULING PARTY ASKS US GOVERNMENT TO BLOCK ACCESS TO WEBSITE BECAUSE OF UNFAVOURABLE ELECTION COVERAGE Computer News - CISCO TO BEEF UP SOUTH AFRICAN PRESENCE - EDUCATION GETS IT BOOST IN NAMIBIA - IFC SUPPORTS SOCKETWORKS TO EXPAND ICT IN NIGERIAN UNIVERSITIES - ASTERISK VOIP GETS SOUTH AFRICAN ACCENT On the Money - BUSINESS CONNEXION HITS OUT AT INCORRECT PRESS ALLEGATIONS FOLLOWING HALF YEAR RESULTS ANNOUNCEMENT - SOUTH AFRICAN WIRELESS BROADBAND OPERATOR WBS SHARES SOLD TO LOCAL INVESTOR Web and Mobile Data News - WSIS SECRETARIAT FREEZES WEB-PAGES FOR GENEVA, TUNIS PHASES - WEBSITE TO MARKET TEXTILES LAUNCHED IN UGANDA ADVERTISEMENT: Q-KON - Your wireless & satellite IP connectivity provider for Africa Q-KON is a 1st tier provider of IP access solutions and services for the African market. 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When you are in need for professional and cost-effective connectivity services anywhere in the world , give us a call at: - Web Site: www.gilat.net - Email: info@gilat.net - Tel: +972 3 9255050 ______________________________________________________________________________ TOP STORY: EASSY CONSORTIUM REACHES CRUNCH POINT FOR CHOICES ABOUT PRICING, ACCESS AND GOVERNANCE – INTERVIEW WITH PROJECT CO-ORDINATOR, JOHN SIHRA _______________________________________________________________________________ The East African fibre project EASSy is reaching a crunch point for key decisions about pricing, access, equity and governance. Ministers from African Governments will meet in March to signal their approval of work done so far on these issues. The project has been offered a package of World Bank funding in exchange for adopting Open Access principles in contrast to the closed access SAT3 fibre cable (see Telecom News below). However, EASSy appears to have chosen to reject this financing but has accepted the need to respond to the Open Access arguments in some form. So what is open access? It is not some fixed dogma but starts from the basis of asking the question: how can we get sufficient competition at all levels so that we can ensure low prices whilst at the same time making sure that there are sufficient investors willing to take the risk? International fibre bandwidth is expensive to build and its life is time-limited, usually to 25 years. Therefore it makes practical commercial sense to organise it in such a way that the maximum use is made of whatever capacity can be provided over as longer period as possible. In order to achieve this, those building the fibre need to adopt two approaches simultaneously: 1. Taking into account the need to operate and maintain the cable, the pricing of the international fibre capacity must be as low as possible in the initial period, with the pay-back being spread over the full 25 year life of the cable. 2. The investors in the cable need to take the view that the existence of the lowest possible commercial international fibre prices will allow them to make their money from their core businesses – fixed or mobile telephony and national infrastructure – or from other businesses building services and applications that make use of their networks. In other words, the cable exists to help everyone make profits at a country level, not to be highly profitable in itself. Having adopted this approach, those involved need to ensure the following occurs: Users (like private companies, Governments, or CSOs) can get more or less equal access to the international fibre capacity in their respective countries. Unlike with SAT3, the investors should not be in a position where they are effectively holding a monopoly, or hoarding capacity, or assigning themselves an exceptional price advantage. Because the underlying assumption is that everyone is using the international fibre to make money through their other activities, it is essential that the basis of the pricing of the capacity is completely transparent. Since no-one is in the business of gaining a commercial advantage in selling the international bandwidth, there is no reason why the financial basis for the capacity offered cannot be open to transparent scrutiny: both investors and users should expect nothing less. There should be no artificial barriers to investing in the international fibre project and it should be possible for an investor to sell on its share to another investor subject only to an agreed procedure. At present, EASSy is demanding that potential investors have an international gateway licence. As it must know, access to these have been severely limited in many countries to protect the incumbent telco. In two years time, there will be considerably more international licence holders but they will have missed the opportunity to invest in the EASSy project because of this artificial barrier. In South Africa, the Government is talking of issuing international licences to ensure MTN and Vodacom can invest. Will other countries make the same commitment to other potential investors? EASSy is saying that there has to be a limit to the number of investors. This is not something that would be understood by any sector seeking investment in a company. But this attitude has left a number of potential investors on the sidelines. Although it would probably deny it, EASSy appears to have prioritised getting traditional telco investors, precisely the kind of companies that are unwilling to cede their protected privileges to newcomers. Only 5 of the 27 Consortium members announced at the end of January 2006 were private companies. A number of organisations interested in investing have failed to receive even the good grace of a reply. However recently, it has become a little more responsive to requests, conscious perhaps of the public spotlight on the issue. In order for landlocked countries or countries without landing stations to get access to the EASSy fibre, there has to be clear agreements in place that allow companies in these countries to connect to the fibre on the same basis as those with coastal landing stations. There cannot be “gatekeepers” in the system who keep prices artificially high as there currently is with SAT3. Furthermore, each country needs at least two competitive providers of both inter-regional and international capacity or the alternative is the rather unpalatable prospect of price control. There are siren voices that are saying that the EASSy project needs to be built as quickly as possible and that tackling these issues is too time-consuming and complicated. Unfortunately Africa has only once chance to get it right and if it gets it wrong it will live with the consequences for the next 25 years. Below we talk to John Sihra, Project Co-ordinator, EASSy about how it is seeking to respond to these Open Access issues. Has it done so adequately? You must be the judge….. Q: How did the Consortium come into being? The role came into being when the project was first mooted. The original group involved were saying ‘Let’s see if the project is going to be a viable.’ They carried out a preliminary study with a small team and the outcome of the study was positive. At that point an MOU was signed by the small number of existing interested parties and some more who wanted to join. Q: How is the Consortium currently organised? There is a Project Management Committee on which sit all of the CEOs of the members of the project. There are three working sub groups: Technical and Commercial: It looks at all the technical aspects of the project including things like landing stations, the optimum route and the best technologies to use. Finance and Commercial: Its role is to look at how to fund the project and its governance. Backhaul: It looks at the terrestrial connectivity and the planning of inland routes. Construction and maintenance: Once tenders have been agreed, we go into the construction phase. Therefore this working group identifies suppliers and evaluates tenders. Q: Has the final routing been fixed? The basic configuration is fixed. We would have liked to have had Eritrea on board but they could not get ready within the timetable. We’re putting a branching unit on the route so that it can join in the future. We’ve also recently been joined by Mayotte and Comoros. It was their last opportunity to get connected to the rest of the world in this way. Also Mauritius Telecom has joined the project as a member for increased capacity and diversity of supply. We were hoping that the Seychelles would come on board. The work would have cost US$40-50 million but it’s not looking likely that it’ll do so. Q: What’s happening with the tendering for the construction contract? We have invited four companies and had responses from all of them. Q: Are they within your US$200 million project budget expectation? They are slightly more but we will go into negotiations with one or two of them. Q: How is the financing looking? It’s looking good. We had a data-gathering meeting in Cape Town late last year and the commitments exceeded our expectations. We believe that we will be able to raise the necessary funding by ourselves. Q: Are their members of the Consortium who will require World Bank funding in order to come up with their financial contribution? Some have been approached by the World Bank, including Zambia, Malawi and Burundi as a result of lobbying by NEPAD. Most of the members are funding the equity themselves. Q: How does somebody get selected to become a member of the Consortium? It’s open to any service provider with an international gateway licence. For example Satcom in Tanzania and KDN in Kenya. Q: But isn’t the requirement for an international gateway licence a barrier. The Kenyan regulator may announce a series of international gateway licences after the financing round closes in April. In two years time, there will be a considerably larger number of international gateway licences. Aren’t these companies going to be excluded? It doesn’t exclude anybody. The MOU stage is open. Up until the time it closes, anyone is free to join the project. Anybody who has a need to join is welcome. But we cannot keep extending the MOU parties as it would be extremely difficult to manage. We already have a total of 33 companies. We only need one person to disagree and there’s nothing we can do about it. Q: So how is the decision-making structured? The Construction and Maintenance agreement allows for some decisions to be taken by a smaller group. There are several levels of voting, including majority decisions. Q: So there are several different tiers of voting? I wouldn’t say tiers of voting. Larger investors have more say in the running of the company. If you put in more, you get more say. Some decisions can be made with 40% of the members and some with 60%. It would need 60% to approve an upgrade. Q: So going back to access to capacity, what happens to the potential investor who is unfortunate enough not to have acquired an international gateway licence? It will be able to acquire capacity at cost plus 25% for the next 5-6 years. That’s currently part of the Construction and Maintenance agreement that is at the drafting stage. Huge capacity has been set aside for this purpose and therefore we can accommodate anybody. Q: So what will for example one mbps per month cost? I’d like to hold off on that. Q: I’ve been told just over US$1000 per mbps per month? I don’t know where you got that from. Q: A member of the Consortium. The price set will be for the life of the cable. The cost plus premium is marginal. 25% on US$1000 (for whatever capacity) is not much. On average, everyone will come out OK. You will be able to buy from the initial investors at cost plus a margin. We want (our members) to make money out of the services provided. It will kickstart a lot of economies. At present there are projections for 30-40 mb going by satellite. (Paying for that) is a terrific cost to the continent (in foreign exchange). We want to double that capacity and keep the foreign exchange in the continent. We will set a time, probably 5-6 years, where anyone can buy capacity at cost plus. But we need US$200 million (to finance the project) and we have to get the initial parties to invest. They have to protect their risk. IRUs will be available after 5-6 years. Will it be market-driven? We will have to decide then but the first priority now is to get the project off the ground. Q: So what governance structure will the Consortium have? At the moment we are talking about a co-ownership structure. Consortium or SPV (Special Purpose Vehicle) are both nasty words. It doesn’t matter what you call it as long as it is commercially oriented. We’re still financing the Commercial and Maintenance agreement…But you’ll have a Board of Directors and a management team. Q: Who appoints the management team? The co-owners. I understand that there will be a Ministers meeting in March to sign off on the governance principles and an underlying structure that will reflect those principles. We’ve recently had a meeting with NEPAD. It has developed five Open Access principles. Q: Can you take me through those and how you’re responding to them? - It should be a Special Purpose Vehicle. Nobody should push anything down anyone’s throat. It will be a commercially oriented structure based on co-ownership. - Open Access. Anyone who has a licence can join until the offer closes and then they are entitled to buy capacity at a reasonable cost. - Backhaul capacity and landlocked countries: Kenya, Rwanda, Uganda, Burundi and Tanzania have signed a separate MOU to implement a ring. Each will put in two pairs on existing cable at cost as their equity contribution to the ring. Therefore the cost for using the ring is minimal. The Burundi section is missing but there is backing for an SPV to fill the gap. - Regulators need to create conducive environments to create cross-haul links between countries. For example, UTL will be able to route traffic direct to the international cable in and out but it will need a separate licence for cross-border traffic. Q: I make that four principles. Well there’s five principles in there. We’re trying to do the right thing here. NEPAD has always been our friend. It’s always had observer status. We need to take cognisance of the views of African governments. We’re listening but we want to make sure the project’s commercial. The World Bank has said we will fund it. If we can get the project fully subscribed by its members, why should we use that money? Why are we being pushed to take a loan? Q: What about the backhaul routes? As part of the Backhaul working group, there are three sub-groups: Northern, Eastern and Central and Southern. It’s a novel idea. Each of these sub-groups do not impinge on people’s resources. If you contribute 2 pairs, that will be your equity in the project. Q: Will you be able to buy capacity from an international member like BT if you’re based in say Kenya? No, you can’t do that for a period of time. We need to protect local industry. What BT can do is provide the international leg, London – Mombasa before handing over to a local entity. BT has no licence to operate in local jurisdictions. After 5-6 years, it will open up, something like that. Q: So in some countries you’ll only have the choice of one carrier? If you acquire an international licence, there is nothing to stop you acquiring capacity. You buy capacity from the central pool at a fixed price. The pool is kept aside for occasional use (like broadcasting) or can be sold. Q: Who decides who the capacity is sold to? The management. Q: Will members of the Consortium have a veto on who the capacity is sold to? There will be no veto by a single carrier. 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Web Site: www.gatewaycomms.com; E-Mail: info@gatewaycomms.com Contact: Carrier Relations +44 20 7173 1700 ____________________________________________________________________________ TELECOM NEWS ____________________________________________________________________________ * SA COMMS MINISTER IN SEARCH OF “SECRET” SAT3 AGREEMENT Government is growing increasingly frustrated with Telkom for not providing it with a copy of an agreement that governs the international fibre system links SA with the rest of the world. "No-one has seen this secret document," says deputy communications minister Roy Padayachie. "We [government] can't see the shareholder agreement, yet we are a 38% shareholder in Telkom. It's crazy." Government wants to regulate access to the cable system in an effort to reduce telecom prices. Internet service providers say Telkom, which is the only SA investor in the system, with a 13% share, is charging excessive rates to lease capacity on it. They say this is keeping the cost of bandwidth in SA artificially high and discouraging investment in business process outsourcing ventures, such as outsourced call centres. Padayachie says he is keen to empower the sector regulator, the Independent Communications Authority of SA, to take the steps necessary to regulate the cable. "Telkom is part of an international group [of investors in the system] and it appears that it's very complicated to try to unravel this thing," Padayachie says. "But I cannot for the life of me see why it's so complicated. All we want to do is regulate access by SA companies to the cable. There is nothing complicated about that. We need to find out what is going on and take the necessary steps." The 27,450 km cable system, known as Sat-3/Wasc/Safe, runs along Africa's west coast, from Cape Town to Sesimbra, Portugal, and from Mtunzini in KwaZulu Natal to Penang, Malaysia. It carries most of SA's international Internet and telephone traffic. Telkom, which invested US$85m in Sat-3/Wasc/Safe, has previously cautioned against regulating access to the cable. It has warned that regulation could deter investment in new cable systems around the continent. A company spokesman said this week that it is not aware of any request by government for access to the consortium agreement. "The document is not secret but as with any commercially sensitive contract or agreement, it contains confidentiality clauses." Efforts by government to regulate the cable system might prove unnecessary. A rival system, the East Africa Submarine System (Eassy), is scheduled to come online in the fourth quarter of 2007. Eassy will connect to Sat-3/Wasc/Safe at Mtunzini and run along Africa's east coast to the Red Sea, where it will connect to a range of other international cables. Unlike Sat-3, Eassy will be an "open access" cable. This means any company with a licence to provide international telecom traffic will be able to get access to it. Telkom, Sentech and the second network operator, SNO Telecommunications, all have international gateway licences. MTN and Vodacom do not have the requisite licences but Padayachie says he won't discount the possibility of government granting them licences. "I think we should be guided by the maxim that the more competition we have the more opportunity there is to reduce telecom costs," he says. (SOURCE: Financial Mail) ADVERTISEMENT: Want a Leading Provider of Solutions and Services, Visit www.sky2net.net * MALAWI CONCLUDES SALE OF INCUMBENT TELECO, MALAWI TELECOMS The Malawi government last Thursday announced that it had finally passed ownership of the country`s sole fixed telephone operator to an investment consortium, Telecom Holdings Limited (THL), after a protracted delay of the sale. The Privatisation Commission (PC) disclosed in a statement that the controversial sale of state-owned Malawi Telecommunications Limited (MTL) had now been finalised following a recent court ruling allowing government to proceed with the sale. Malawi Supreme Court of Appeal on 13 February annulled an injunction on the sale a lower court imposed a week earlier based on an application by MTL`s former board chair Ken Msonda, who acting as a concerned citizen, asked the court to stop government from proceeding with the sale of the telephone company. Msonda, among other concerns, claimed that MTL`s sale lacked transparency and that the price at which government was selling the company was far below the firm`s actual value. Malawi government has sold MTL for about 27.4 million US dollars to THL, which comprises Malawi`s conglomerate, Press Corporation as a major shareholder and Germany`s Detecon International as a technical partner and minority shareholder. "THL have now effectively become the new majority shareholder in MTL, owning 80 percent of the total shares. The remaining 20 percent will still remain with the government of Malawi and will be disposed of at a later date in a manner that will enhance Malawian participation in the company," stated the Privatisation Commission. The commission said the phone company was sold at an appropriate price that was within MTL`s valuation range in accordance with an independent valuation opinion conducted by Robert Fleming (Pty) Limited that valued MTL to be between 31 million US dollars to 49 million US dollars. MTL`s privatisation process, which began 1998, has been a controversial issue especially in the past year when there was increasing public outcry that the company was being sold at a very low price considering claims that about 200 million US dollars had been pumped into the company between 1999 and 2005. Following mounting public protests against the sale, President Bingu wa Mutharika suspended the sale of the fixed telephone operator in August last year but lifted the suspension in December, 2005. Government decision to sell MTL has been heavily criticised by Malawi`s rights groups who have accused President Mutharika on assenting to a privatisation drive that was only benefiting foreigners and not poor Malawians. A total of 65 state-owned entities in Malawi have been privatised since 1996 when the country embarked on the World Bank championed privatisation programme. (SOURCE: Angola Press Agency) Advertisement: New free reports to download on Open Access, VoIP and digital archiving. Go to: http://www.afridigital.net * RUSSIAN AFK SISTEMA PLANS TO PARTICIPATE IN GSM TENDER IN EGYPT Major Russian holding AFK Sistema plans to participate in a tender for a GSM license in Egypt, Sistema's President Vladimir Yevtushenkov said, Kommersant business daily reported Thursday. Yevtushenkov said that operations in the country have a good outlook as Egyptians’ prosperity is expected to grow and the average age in the country is 27 years. "Any serious player on the international telecommunication market has to consider operating in Egypt," Yevtushenkov said. Currently, there are two GSM mobile operators in Egypt - Vodafone Egypt and MobiNil. The tender is expected to take place this month, the daily said, adding that it is not clear yet how Sistema will participate in it, whether it be through its telecommunication assets managing company Sistema Telecom, or through its subsidiary Mobile TeleSystems (MTS). Kuwait's MTC, UAE's Etisalat, Telecom Egypt and an alliance between Egypt's Raya Holding and the Republic of South Africa’s MTN Group are also expected to participate in the tender, the daily said. Mobile penetration in Egypt, which has a population of about 80 million people, stands at 15%. Last year, Sistema wanted to buy 49% of Indian telecommunication company Aircel Telecom Ventures and MTS participated in a tender for Turkey's mobile operator Telsim, but neither of the Russian companies managed to expand abroad. The subscriber base of Russia’s largest mobile operator Mobile TeleSystems (MTS) stood at 61.687 million people as of January 31, Advanced Communications & Media (AC&M) said Thursday. MTS operates in Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan. (SOURCE: Prime-Tass) * LIBERIA: FORMER TELECOMS MINISTER ACCUSES EXECUTIVE MANSION OVER COMIUM, CELLCOM LICENCES Former Deputy Post & Telecommunication Minister for Administration, Towah A. Towah has pointed accusing fingers to former Transitional Chairman Gyude Bryant for the registration of COMIUM and CELLCOM, two GSM phone companies operating in the country. Speaking during the turning over program at the Ministry over the weekend, the former deputy minister said that the entire registration process for Cellcom and Comium was done on the instructions of former NTGL Chairman Bryant through a special Presidential Committee at the Executive Mansion. Towah told employees of the ministry in the presence of Minister Jackson E. Doe, his successor, that Chairman Bryant and his Executive Mansion based committee that was charged with the mandate to register the two GSM companies excluded authorities of the Postal Ministry for reasons best known to them. According to him, what the past administration of Post and Telecommunication headed by former Minister Eugene Nagbe did was to only bill the two companies financially for onward payment at the Ministry of Finance. He disclosed that financial arrangements for the registration of the two companies were not known by the former administration of the ministry. The clarification by the former deputy Post and Telecommunication Minister came at the time the past administration had collected huge sums of money from the GSM companies before the tenure of the NTGL ended. (SOURCE: The Analyst) * ETHIOPIA’S ETC EXTENDS OPTICAL FIBER TELEPHONE LINE TO SUDAN The extension of optical fiber telephone line, connecting Ethiopia and Sudan via the northern border town of Metema, has been launched, said the state-owned Ethiopian Telecommunication Corporation (ETC) on Tuesday. Kassahun Ayalew, ETC senior manager, said that the extension of the optical fiber telephone started on Tuesday following the completion of the 200 km tunneling work. He said some 120 km of the 220 km Gonder-Metema-Gelabat optical fiber telephone line has been finalized so far. The construction of 7 building blocks for power houses and control stations through the telephone line has also been completed, he said, adding that installation of the necessary equipment would be carried out within a week. The government of Sudan would cover the cost of the extension of the 80 km optical fiber telephone line via the Metema-Gelabat route, the senior manager said. The extension of the optical fiber line would enable Ethiopia access up-to-date telephone, data, and audio-video communications and curb congestions in web sites and internet lines, according to Kassahun. The corporation has allotted over 6 million birr (693,642 U.S. dollars) for the extension of the optical fiber line, he said. (Xinhua) * AREEBA SETS UP IN GUINEA WITH 18 YEAR LICENCE BUT ROW OVER TENDER RUMBLES ON Areeba-Guinea, a subsidiary of Investcom is setting up following a long political imbroglio that has seen the Minister of Post and Telecommunications in open conflict with the Prime Minister over the tendering for the fourth mobile licence in Guinea. Senegalese incumbent, Sonatel, was at one point thought to be the winning bidder. The Sonatel’s 21 millions Euros offer was however declined in favour of Investcom’s one. The company has offered 30 millions euros for the licence, of which 15 millions will be paid up front to the State of Guinea. The licence has been granted for 18 years along with a package of generous tax exemptions. (SOURCE: Sidwaya) * VODACOM TO LAUNCH 3G HSDPA NETWORK IN DAR ES SALAAM Africa's second-biggest cell phone operator Vodacom will launch a 3G network in Tanzania this year, making it the second country on mainland Africa with the wireless technology. South African-based Vodacom said it would spend an extra U$1.3-million this year to extend its network in Tanzania and to start building a 3G mobile phone network in the capital Dar es Salaam, which will allow users to surf the Web on their phones. Vodacom and rival MTN launched 3G networks in South Africa last year but Tanzania will get a 3G HSDPA (High Speed Downlink Packet Access) network, which is faster than the first generation of 3G technology. Vodacom will also build an earth station to cut the cost of international calls, it said in the statement. IN BRIEF: - Officials in Cairo said that firms wanting to apply for Egypt's third mobile licence will be able to submit offers from April 17, which must be accompanied by a guarantee of US$4.4m, reported Reuters. MTC from Kuwait has said it will bid and Telecom Egypt may bid while Saudi Telecom has declared interest. - Rural Telephone Project of the MTN Nigeria Foundation, has won the 2006 GSM Association award in the category of Best Mobile Community Service. The MTN Rural telephone project is a micro finance scheme whereby rural women in Nigeria, referred to as "Phone Ladies" are loaned money through microfinance institutions to operate call centres in their communities. 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Fax +1 240 209 0423 ____________________________________________________________________________ TELECOMS, RATES, OFFERS AND COVERAGE __________________________________________________________________________ - Me banza-Kongo, the capital of the West province of Congo DRC has had since Monday a new mobile service with "Movicel". With an initial capacity of two thousand subscribers and a coverage of around 20 kilometres, this system has cost $2 millions. After Soyo, the town of Me banza-Kongo is the second urban area of the province of Zaire to benefit from the services of this operator. Movicel’s digital network covers now sixteen of the eighteen provinces of Angola. The company plans to add high speed internet service alongside its telephony offer. - Kenyan cellco Safaricom has announced plans to increase its customer base to 5.5 million by the end of 2007, up from 3.5 million today. The mobile operator, which is 40% owned by Vodafone, had initially targeted three million subscribers by 2020, a figure it has already surpassed. It said the bulk of subscribers will come from expansion into rural areas of the country. It also plans to roll out a 3G network by 2008, although it says it will enter the advanced services arena with caution as the cost of services will be too high for most Kenyans. - Sierra Leone’s third mobile operator Lintel, which operates under the banner Africell SL, has revealed plans to extend its coverage to the whole of the country by the end of this year. The operator launched services over its GSM-900 network in February 2005, and by September claimed 35,000 subscribers. At the end of 2005 its network had coverage of Moyamba, Bo, Kenema and Shegbwema in the western part of the country. Kono, Magbuaraka and Makeni are set to be added within the next two weeks. - Kuwait-based Mobile Telecommunications Company (MTC), which acquired a 61% stake in Sudanese cellco Mobitel last week, has revealed plans to invest USD500 million into expanding its network capacity over the next twelve months. MTC said it wants to leverage Mobitel’s cross border opportunities with neighbouring countries such as Uganda. It plans to add a million subscribers to Mobitel’s current 1.5 million customer base by the end of this year. - Mobile operator MTN Uganda has reached 1 million customers. This means one in every 27 Ugandans now has an MTN line, Eric van Veen, the chief commercial officer, said. 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Fax +44 20 8387 4004 ____________________________________________________________________________ INTERNET NEWS ____________________________________________________________________________ * ETHIOPIA’S ETC LAUNCHES VISP SERVICE TO ENCOURAGE ISP GROWTH The Ethiopian Telecommunications Corporation (ETC) has announced that it has completed all the necessary preparations to provide a virtual Internet service provider (VISP) in order to satisfy the growing demand of its customers. According to the corporate communications manager, Ato Abduahim Ahmed, the high capacity achieved through the broad band internet network and the increasing number of users is what led to the commencement of the service after the signing of agreement between the corporation and the regulator, the Ethiopian Telecommunication Agency. Anyone interested in becoming a VISP does not have to make any investment to make direct contact with the ETC. All they have to do is use ETC’s telecom infrastructure and provide the internet service to large number of end-users with speed and efficiency. The income split is that the VISP will get 14-22% of the income (depending on the level of customers) from subscription sales and a commission for acquiring new customers. (SOURCE: The Reporter) * ABUJA'S TRAIL-BLAZING WIRELESS INTERNET NETWORK BEING BUILT BY PRIVATE-PUBLIC PARTNERSHIP Late last year, the Minister of the Federal Capital Territory Administration (FCTA), Mallam Nasir El-Rufai launched the first city-wide Wireless Internet Network in Nigeria. The private-public sector joint project is estimated to cost about N837.5 million, 80 per cent (670 million) to be contributed by the private partner, Suburban Broadband Limited and the remaining 20 per cent (167.5 million) to be provided by FCT's Abuja Investment and Property Development Corporation (AIPDC). The Abuja initiative to establish the first seamless Wireless Internet Network in the country is a giant stride in the right direction. It would provide an effective communication infrastructure for the federal capital territory. (SOURCE: Daily Champion) * SOUTH AFRICAN SNO SPEAKS OUT ON ADSL REGULATION The Second National Operator (SNO) has voiced its views on the ADSL Draft Regulations in a seven page submission to ICASA. While the SNO supports ICASA’s regulations for the provisioning of ADSL, it asks for caution when it comes to controlling the structure of a specific retail product, in this case ADSL. “The SNO strongly supports ICASA’s intention to apply targeted regulations to the provision of broadband services such as ADSL, for the benefit of the consumer and in the interests of fair competition.” “However, applying controls to the structure of a specific retail product is not the most effective way of achieving this in the long-term,” the SNO stated in their submission. The SNO asked the Regulator to focus its attention on the ADSL wholesale segment, where Telkom currently has a monopoly, to ensure fair competition. It argued that the real costs involved in ADSL provisioning are not clear since fair competition is not present in this sector. “In the absence of true wholesale broadband in South Africa, we have yet to see the real underlying costs directly influencing pricing in the retail market,” they said. The SNO pointed out that there are various wholesale broadband models apart from full Local Loop Unbundling to achieve a more competitive ADSL environment. These include Bitstream Access to the ADSL circuit via a Virtual Circuit, Access to the DSLAM, where a portion of the DSLAM may be leased, Shared Access to the local loop and Facilities Leasing. The SNO further supports the disclosure of contention ratios and static IP addresses (no periodic resets of the ADSL service) ‘in the interests of good practice in the market’. The SNO has requested an opportunity to make an oral submission at the ADSL hearings, which will most likely take place in the first half of 2006. (SOURCE: MyADSL) * BACKLASH AGAINST INTELSAT PRIVATISATION ON “LIFELINE” OBLIGATIONS BY ITSO AFRICAN MEMBERS The restructuring and privatisation of Intelsat has raised concerns among International Telecommunication Satellite Organisation member States (Itso). ITSO African members have accused it of abdicating its responsibilities to its lifeline customers at a recent meeting of ITSO in Washington DC. Participants were told that the company had failed to honour its public service obligation, which included maintaining global connectivity, serving lifeline connectivity customers and providing non-discriminatory access to the company system among other duties. Itso director-general Ahmed Toumi told the meeting that the organisation, which supervises Intelsat had lost its legal power to oversee the running of Intelsat after it was privatised. Information and Communications permanent secretary Bitange Ndemo said increased competition had made it necessary for Itso to transfer its space system to Intelsat for it to operate in a commercially viable manner. Ndemo who headed the Kenyan delegation to the US meeting said the company needed to honour the agreements, especially those affecting the lifeline members among which Kenya is categorised. This is because most States in that category were depending on Kenya for their respective telecommunication services, Ndemo said. "I feel aggrieved when I see Kenya and other lifeline members paying 40 per cent more for usage. This percentage should be reviewed in line with the initial agreement for provision of international telecommunication services," the PS said. During the meeting, Kenya was chosen to sit in the Itso advisory committee. The team was mandated to seek solutions to the problems affecting the organisation. Ndemo was accompanied to the meeting by Telkom Kenya Managing Director Sammy Kirui. A Lifeline Connectivity Obligation was provided to countries dependant on the system when Intelsat was privatised. However the complaint smacks of political grandstanding as Telkom Kenya actually has several suppliers of satellite connectivity. Also by 2008, it should be able to buy relatively cheap international fibre from EASSy (see Top Story above). (SOURCE: The Nation) * ZIMBABWE TO RESUSCITATE INFORMATION HUTS TO “CURB MISINFORMATION” Zimbabwe's Ministry of Information and Publicity plans to resuscitate “information huts” to enhance information dissemination in the country's remote areas. Speaking at a Public Service Commission (PSC) and Media Relations workshop on Tuesday, Presidential Press Secretary Regis Chikoore said the ministry planned to establish communication hubs consisting of newspapers and Internet facilities for villagers in remote areas to improve the country's communication networks "Information huts will be set up away from growth points which are already covered by the mainstream media," Chikoore said. To curb the problem of misinformation by the media, he urged organizations to formulate public relations outfits that serve as entry points for the public. On the same occasion, Public Service Commission acting secretary Keith Nlakayana called on the media to report factually and objectively. He said the media had lately been concentrating on negative social ills, giving them undue priority at the expense of developmental issues."Information is power, without information there is no power and there is nothing as dangerous as reporting from half-truths," he said. (SOURCE: Xinhua) * UGANDA’S RULING PARTY ASKS US GOVERNMENT TO BLOCK ACCESS TO WEBSITE BECAUSE OF UNFAVOURABLE ELECTION COVERAGE The NRM has written to a US-based Internet firm to block access to the www.radiokatwe.com website. NRM spokesperson Ofwono Opondo last week said the website was publishing malicious and false information against the party and its presidential candidate. It has also asked local ISPs to block the site. “Such a practice is against our electoral laws and we complained to Brinkster communications Corporation that is involved,” Ofwono said. Speaking on phone, he accused US-based FDC official Anne Mugisha of masterminding the smear campaign on the site. The New Vision received complaints that the site was inaccessible within Uganda. When opening the site, a message pops up saying, “The page cannot be displayed.” The site hosted in the US features information on presidential candidates, security agencies, operatives and their lifestyles. A liner on the site reads, “Radio Katwe: outrageous, amusing, conspiracy theories, not to be taken seriously.” Ofwono said they had also complained to local regulator, the Uganda communications commission (UCC) and local Internet service providers. However, UCC corporate affairs manager Fred Otunnu said he was not aware of the development. Asked about access to the site abroad, Ofwono said, “if you are dealing with multiple wounds and you are sure you can heal the ones on your legs and walk, you can leave the ones on your buttocks for the meantime.” The site lately reported that the Government had asked MTN and other Internet service providers to block it. “If what we publish are fabrications, why doesn’t someone want you to hear them? All lies eventually collapse under their own weight, right?” the website administrator asked recently. (source: New Vision) IN BRIEF: - Dr Benjamin Aggrey-Ntim, Ghana’s Deputy Minister of Communications, says the Ministry is planning to develop the country’s national broadband infrastructure to make ICT available to citizens in all parts of Ghana. The Ministry aims to build a Technology Park that would open further avenues for more outsourced businesses in Ghana. Dr Aggrey-Ntim’s announcement was timed to coincide with the launch of ExZeed Company Limited, a subsidiary of Ghana Telecom (GT), which has been set up to provide call centre services. The minister urged GT and other ICT service providers to take advantage of government moves to establish a broadband infrastructure and invest in its development so as to expand their present capacities. - All health units will be interconnected via computer by the end of this month, giving the Department of Health the largest network in Seychelles. ADVERTISEMENT: AFRICA ONLINE – MUCH MORE THAN JUST INTERNET CONNECTIVITY Africa Online the Premium Internet Service provider also has a range of value added services that put us in a class above all the rest in Africa. These services include: • World class technical expertise • Maintenance terms and Service level agreements • 128-bit encrypted security Firewall • Personalized Account management • Monthly performance graphs • Lobbying agent • Advisory services • Advertisement channels on our website To learn more about our value added services, please visit us at www.africaonline.com _________________________________________________________________________ COMPUTER NEWS _________________________________________________________________________ * CISCO TO BEEF UP SOUTH AFRICAN PRESENCE Cisco is planning for a stronger and more visible presence in SA, says new GM Clive Fynn. “People see Cisco as being about routing and hubs. But that's not the real Cisco – we are an IP [Internet Protocol] business centring on enabling technologies,” says Fynn, who was appointed with effect from 1 February. He replaces Mokati Ramphele, who resigned in May last year. “SA is the most interesting, complex market we have,” says Mark de Simone, Cisco VP for Europe, the Middle East and Africa. “And it is also one of our key markets. If our CEO talks about SA, it's important. The country has huge implications for the whole continent.” He says this is why it took so long to appoint a successor to Ramphele. “We had to be careful to get a leader to take us along several axes. Our ambitions are to grow into several markets, so we wanted a leader who could take us there.” As Cisco works with companies with transformational needs, the group needed someone to be able to translate technology and architectures into business processes. “Part of our focus is on how to use processes and technologies to bring changes to businesses, including our business partners,” says Fynn, who has served in managerial capacities at companies such as IBM Global Services, Siemens Business Services and Waymark Infotech. “We will also look at partnering with some of the new guys coming into the market – the SNO [second national operator], Virgin, and others like that.” De Simone says Cisco is also moving into smaller enterprises in addition to the larger entities it serves. Research by the International Data Corporation globally, and by BMI-TechKnowledge locally, shows the small to medium enterprise market is growing strongly. Other growth prospects for the group lie in telecoms, and also the consumer space. De Simone says Cisco will be seen to be more active in home entertainment using IP, particularly as broadband grows. It will also be seen in the IP television space. Fynn says Cisco is committed to the process of transformation, as illustrated by the appointment of two consecutive black general managers, its procurement policy, and training and development. “Today there are plans in place and we are moving in the right direction. Come a few months from now and see what it will look like.” De Simone says Cisco also wants to take existing training initiatives to a new level. “We believe the industry in SA needs a new generation not just trained in technology, but also in business processes and how to apply that technology in business.” The group is also adding to its staff numbers, says De Simone. “By the end of the fiscal year (August), 45% of our staff will be new, and that investment is likely to continue at the same pace. We are committed to winning larger percentages of ICT sales.” (SOURCE: http://www.itweb.co.za/sections/business/2006/0602131036.asp?A=MOV&S=Career%20Moves&T=Section&O=SBR) * EDUCATION GETS IT BOOST IN NAMIBIA "Computer skills have now invariably joined reading, writing and arithmetic as one of the basic learning processes because having access to a computer puts the world literally at one's fingertips," yesterday said Nangolo Mbumba, the Minister of Education. He was speaking at a handing-over ceremony of 700 computers from First National Bank (FNB) via School Net Namibia in Katutura to his ministry. The second-hand computers were collected from FNB offices throughout the country. "Prosperity and knowledge go hand in hand. As a society, we are not educated because we are prosperous. We are prosperous because we have extended the frontiers of education. Today, more than ever, getting a good job and achieving a higher standard of living, requires even greater skills and broader knowledge," Mbumba said. According to Mbumba, the creation of jobs is anchored in the infrastructure of innovation, skills and knowledge acquirement. "To get a job, to keep a job and to move on to a better job, there is only one resource that will equip Namibians to succeed, that is to develop the very best skills they can. In a very real way, the opportunity to learn must be the central part of any national job strategy. The demand for knowledge and skills spans all occupations from factory to farm, from software to sales, from medicine to mechanics. It is about the need to upgrade skills and develop new ones consistently," the minister moralized. He argued that skills underpin a strong economy and a secure society and that unemployment among the youth remains a serious problem. "The backbone of a country is the strength of its middle class. There is no better way to reduce the gap between the rich and poor than to facilitate the path to greater education. Therefore, every Namibian who wants to learn should have the opportunity to do so. An important part of unemployment among the youth lies in higher education. However, too many of our young people still confront the dilemma - no experience, no job, no experience," said Mbumba, who alluded to the fact that Government has introduced many projects to alleviate the plight of the country's youth. "Clearly, the private sector is the engine of job creation. Many employers are rising to the challenge of helping to hire and train more youth. Much more remains to be done and many more employers must rise to that challenge if it is to be overcome. School Net is bringing the Internet into the classroom making it a vital learning tool in every Namibian school," the minister said. School Net's Computers for Schools Initiative annually donates thousands of computers to schools across the country, helping children develop computer literacy at an early age. "The goal of this programme is to make sure no matter where Namibians live, no matter how small a town, how small a school, every student has access to the same storehouse of knowledge," the minister said proudly. The CEO of FNB Namibia Holdings, Vekuii Rukoro, told the audience that the FNB Foundation aggressively keeps his company's corporate responsibility alive and kicking. "The use of information technology in and for education is rapidly expanding around the world and is now internationally regarded as a necessity and opportunity. With reference to the importance of mathematics and science in technological development, the FNB Foundation deems it appropriate in donating these 700 PC's valued at N$256 300 to the Ministry of Education," Rukoro said. He urged Namibians to stay focused on the national development agenda and make good use of global opportunities. According to the executive director of School Net Namibia, Joris Komen, some 100 students yearly pass through the technical course in computer technology. (SOURCE: New Era) * IFC SUPPORTS SOCKETWORKS TO EXPAND ICT IN NIGERIAN UNIVERSITIES Pursuant to its drive to link universities across the country to the information and communication technology (ICT) world, SocketWorks Limited has signed a $2.5 million (about NGN350 million) agreement with International Finance Corporation, the private sector arm of the World Bank Group. The first such initiative in Nigeria's higher education sector, the facility is to support SocketWorks' rollout of CollegePortal into select Nigerian universities. CollegePortal is a package of information and communication technologies that will provide students with the tools to become fully computer literate. IFC's loan will also enable SocketWorks to develop software and purchase computers and other hardware for Nigeria's universities. University students, faculty, and administrators will have access to a full suite of online management systems and study tools, including offshore libraries and other information sources. The agreement was signed in Lagos by Mr. Lars Thunell, IFC's executive vice president, during his first official visit to Nigeria, and by Dr. Aloy Chife, president and CEO of SocketWorks. Speaking at the signing ceremony, Chife announced his company's dream of taking Nigeria to the level India has attained in IT and outsourcing. He put the rapidly expanding global technology market for IT services at about US$800 billion (up from US$349bn in 1999), and the market for business process outsourcing (BPO) done offshore at $11.3 billion in 2003. He said the figures which have been rising steadily, are global economic facts that are creating opportunities for the strategically savvy, well prepared and aggressive entrepreneurs and firms such as Indian IT and outsourcing companies like Tata, Infosys, Wipro and HCL Technology Group. These enterprises are forecast to capture 7 percent of global IT services market share by 2006, he noted. "At SocketWorks, we believe that taking advantage of these opportunities requires the systematic creation of a globally competitive solution offering," Chife said. "The Indian achievements captured above represent feats that Nigerian companies are yet to emulate; yet we are capable of replicating the success if the right strategy is put in place and executed. We are therefore systematically positioning ourselves as a global player by pursuing a strategy based on learning the lessons of the best players and subsequently innovating beyond such lessons." Another reason for being optimistic, he said, is "We also believe the future of Nigeria will be driven by technology and we envision our planned Lekki Phase 1 campus employing over 1,000 young Nigerians engaged in software development and back-office and transactions-processing activities in the medium term." He said the education project which the International Finance Corporation (IFC) is supporting will help to lay a strong educational foundation and arrest the declining standards of Nigerian educational system since Information and Communications Technology (ICT) clearly represents the best opportunity to help these institutions to pull together their current assets, to minimize internal handicaps, to layer on new sources of intelligence, optimize their resources, maximize their potential and increase the value of education they provide. Chife disclosed that by October, working with the Minister of Education in an initiative called, "Digital Bridge for Nigerian Schools" SocketWorks intends to introduce all Federal Government-owned schools to a thriving digital culture by deploying a bundled ICT solution that includes software, access devices, power systems, connectivity, multimedia resources and digital content. He thanked the IFC for believing in SocketWorks right from the start, even when most Nigerians would not. He urged the IFC to do more as it is only through supporting enterprises like this that the World Bank's goal of promoting prosperity in Africa could be achieved. On his part an obviously delighted Thunell noted, "I am very pleased that the first investment agreement I am signing after joining IFC last month is to support a project in Africa's education sector. It will help implement a plan begun in 2003 when IFC began working with SocketWorks to identify Nigeria's information and communication technology needs in higher education and develop a sustainable plan to service those needs. This is an excellent example of how hard working and determined entrepreneurs-in partnership with IFC-can expand opportunities for Africans." The implementation of CollegePortal has been shown to reduce the administrative burden faced by staff and students significantly. As part of its investment, IFC has an option to take an equity stake in SocketWorks. IFC has been providing technical assistance to SocketWorks since 2003. (SOURCE: This Day) * ASTERISK VOIP GETS SOUTH AFRICAN ACCENT True Voice Communications and Connection Telecom have jointly released a South African package of over 340 free prompts for the open source Asterisk platform. The free prompts, recorded in a neutral South African English female voice, can be used to replace the usual Canadian accented prompts. "Customers can now replace the standard North American-English pack with one more suited to their customers," says Connection Telecom CEO Rob Lith. "Research and our own experience have taught us that consumers want to deal with the familiar. This is also is a step toward legitimising South Africa as a business destination that should be taken seriously," says Lith. "Although the previous voice of Asterisk, Allison Smith, will continue to have very dear place in all Asterisk techie hearts, we believe its time to adopt a more local flavour," says Lith. The package also offers pre-recorded IVR prompts, which can be customised using the same voice talent as in the packages. "The decision to offer these local accented prompts is in response to the growing user base of Asterisk PBXs. Companies are increasingly turning to open source solutions and the fact that South Africa now has the both the skills and the resources to support these installations is encouraging for further growth," says Lith. To supplement these free prompts, True Voice Communications also provides customised voice packs for Asterisk and VoIP/PABX voice prompt systems. The voice prompt package will be available from True Voice Communications website. (SOURCE: Tectonic) IN BRIEF - OKN, a African-based Open Knowledge Network catalysing the creation and exchange of local content is now active in six African countries: Kenya, Mali, Mozambique, Senegal, Uganda and Zimbabwe. In Kenya, Zimbabwe, Senegal and Mali the project is expanding beyond the initial organisations to form national networks working with many other partners. The new software, Open Enrich, has been released and it will also be used by UNESCO’s Community Multimedia Centre network, increasing the pool of shared content. A study tour to India focusing on content creation and revenue generation will happen in late February. ADVERTISEMENT: EMPERION is seeking technical and commercial partners EMPERION is seeking technical and commercial partners all over Africa and The Middle East, with immediate interest in the following countries: Mozambique, Burundi, Mauritius, Lesotho, Swaziland, Namibia, Uganda, Comoros, Madagascar, Djibouti. Partners with experience in VSAT or general IT are of special interest. Contact: Emperion A/S Middelfartgade 7-15 2000 Copenhagen OE Denmark E-mail: info@emperion.net Tel.: +45 39 29 35 30 www.emperion.net ________________________________________________________________________ ON THE MONEY ___________________________________________________________________________ * BUSINESS CONNEXION HITS OUT AT INCORRECT PRESS ALLEGATIONS FOLLOWING HALF YEAR RESULTS ANNOUNCEMENT Following half year results announcement at the beginning of this week Business Connexion has released an additional note to correct some press reports that inaccurately portray their intentions regarding their involvement in business in the “rest of Africa”: “Business Connexion has restated its intentions as follows: - Our Africa Regional Office in South Africa produced disappointing results for the six months under review, and we announced our intention of reduce costs in our Midrand Africa operations. - We do not intend to downsize, sell or otherwise dispose of our operations in our subsidiaries in Zambia, Tanzania, Mozambique or Namibia. - We intend to increase the focus on our subsidiaries, and increase the level of support in these countries to ensure their success and continued growth. - We will also focus on a few countries in Africa where we have a record of success and good business prospects. - We will reduce our efforts in other African countries where we have not had much success or where our multinational clients are not involved”. “In the long term, Business Connexion remains committed to increase our business involvement in Africa as a central strategic direction and the current rightsizing of your Midrand Africa operations should be seen as good business practice to ensure our continued ability to engage in Africa”. This new statement came after Business Connexion announced an increased revenue of 25% to R1,7bn for the first half to November from R1,3bn in the previous first half. Cash generated during the period amounted to R56m. As a result, the group's balance sheet retained cash reserves of R657m. Operating profit grew 12% to R72,6m and earnings a share for the period fell 60%, to 21,5c from 54c. This was due to the inclusion in the November 2004 results of the R73,8m gain realised from the sale of Mosaic Software Holdings, which represented 30,2c a share. Headline earnings a share fell to 21,6c a share from 23,8c a share, due to the payment of R10,2m in secondary tax on dividends following the declaration of a maiden dividend during the period. On a comparable basis, headline earnings a share growth was 14%. * SOUTH AFRICAN WIRELESS BROADBAND OPERATOR WBS SHARES SOLD TO LOCAL INVESTOR Forty percent of the shares in iBurst's parent company, Wireless Business Solutions (WBS), have changed hands, to a local company headed by Alan Knott-Craig Jr. The 40% shares, belonging to US-based gaming company, Gtech, are being sold to private investment holding company Blue Label Investment, for an unspecified amount. As a result of the transaction, Alan Knott-Craig Jr, son of Vodacom CEO Alan Knott-Craig Sr and executive director of Richmark, has been appointed as WBS managing director. The Richmark Group has several ICT-related subsidiaries and Blue Label holds shares in the group. Thami Mtshali will retain his position as CEO. Jacki Mpondo-Hendriks, media spokesperson for WBS, has confirmed the company has undergone the shareholder change. WBS, a black empowered company, is best known for its iBurst offering. Among other contracts, iBurst provides SA's national lottery system with a mobile data communication network, a focus similar to that of outgoing shareholder GTech. However, the incoming shareholder has varied interests in the cellular and telecoms industry, which could signify an increasing focus for WBS on the provision of broadband to the wider market. Despite the opportunities that are likely to be presented as a result of the WBS/Blue Label partnership, initial market interest is likely to focus on collaboration that could result from the familial ties between Knott-Craig Jr and his father. Nevertheless, Blue Label Investment COO Gary Kaplan says the father-son combination does not share business interests – a statement reiterated by Mpondo-Hendriks, as well as the Independent Communications Authority of SA (ICASA), which has approved the deal in principle. Mpondo-Hendriks has said that a full statement will be made to the market and media only once the ICASA approval has been formalised. This is expected to take place late next week. In this briefing the company will share its new structure, direction and initiatives. (SOURCE: http://www.itweb.co.za/sections/business/2006/0602161620.asp?S=All%20Africa%20News&A=AFN&O=FPLEAD) IN BRIEF - Telecom Egypt has mandated Baker & McKenzie Egypt to conduct the due diligence of Nile Online. Telecom Egypt plans to acquire an additional stake in Nile Online estimated at 38.5% to bring its total stake in the company to 65.8%. Nile Online is indebted to Telecom Egypt with an amount of EGP100 million that would be accounted for as part of the deal, if it closes. In a related news item, Telecom Egypt announced that TE Data (93.3% owned subsidiary) signed an interconnection agreement with PCCW Global for sharing of technical and commercial infrastructure to enhance its presence in Asia, Middle Eastern, European and North American telecommunications markets. - Zimbabwe ECONET Wireless Holdings board chairman Tawanda Nyambirai and company chief executive officer Douglas Mboweni have been acquitted of contravening the Exchange Control Act. Charges against Econet and its directors arose between May 2002 and December 11 2003 when the company bought US$1 386 793, euro 75 337 and 74 472 British pounds and R243 388 from unauthorised dealers. The State alleges that Econet directors later met in Johannesburg, South Africa, where they resolved to evade scrutiny from the Reserve Bank of Zimbabwe. - Britain's BT is reportedly interested in a possible stake acquisition of the Algerian state-owned phone company Algerie Telecom. According to business sources in Algiers, a mission will take four senior executives of BT to Algiers in February, including the company's chief executive officer. The mission will be led by Lady Olga Maitland, a former member of the British parliament for Sutton and Cheam (1992-1997) and who currently chairs the Algerian-British Business Council. - The Nigerian Communications Commission (NCC) has announced that the country’s second national operator (SNO) Globacom could be disqualified from bidding for a 51% stake in incumbent telco Nitel as it is already a national operator in the country. Globacom expressed an interest in acquiring the stake earlier this week but the regulator said that awarding it a stake in Nitel would hinder competition. It wants instead to award the interest to a newcomer. Telkom South Africa and 19 other investors have expressed an interest in the 51% stake, which also includes 100% of Nitel’s mobile subsidiary, Mtel. - The process of privatisation of the National office of telecommunications (ONATEL) has resumed in Burkina-Faso. Benoit Ouattara, the Minister in charge Trade and Industry has explained that 51% of the capital of the company will be sold directly to a strategic telecommunication operator or to a consortium of financial investors. The State will keep 23% of the shares and 6% of the capital will be allocated to ONATEL’s employees. The remaining 20% shares will be sold to the public under the supervision of the regional stock exchange (BRVM). By adopting this new step, the government intends to put an end to the monopoly in the sector and open it to the competition in order to ease the financial constraints. ADVERTISEMENT: VOXBONE -- PHONE NUMBERS FROM +35 COUNTRIES ! Looking for local phone numbers from around the globe ? Stop looking, you just found them ! Voxbone is the world's leading provider of local phone numbers around the world. For a fixed monthly fee all incoming traffic is forwarded to your SIP compliant equipment. Order online and receive the numbers within a few minutes. Please visit http://www.voxbone.com or send us an email at: sales@voxbone.com Letter from Ghana: Buying satellite connectivity – You get what you pay for I am back from my little trip to Ghana and once again had interesting experiences while looking for satellite connectivity for my organisation. One vendor we were looking at was a local reseller for a well-known satellite company. It was all looking fine until I actually did some speed tests on one of their customers connections and then met with the representative of the local reseller. The client who allowed me to check their connection told me that they had a 512k Downlink and 256k Uplink. I ran a simple web based speed test that was normally designed for DSL connections but can give you some rough numbers for a VSAT link as it was just uploading and downloading files of a set size to a known server. It was not very impressive. Over an hour period of time with several tests the connection averaged 125k downlink and 20k uplink. The tests were only a few minutes so QOS speed reductions should not have kicked in to that extent. Then a few days later I had a meeting with the representative of the local reseller. He claims that he is a supplier to a local embassy in Accra and has over 70 clients and expects to see another 40 in 2006. All very impressive until we talked details. I told him about my test and he said that it was due to congestion on a shared connection. So I asked him what the contention ratio was and he said 10 :1, that all his offerings were 10:1. So then I asked him how we could protect ourselves from losing all of our bandwidth to congestion if we became a client - he told me of his QOS software that prevented congestion . So I came back to the upload speed of 20 k on what was supposed to be a 256k upload connection on a 10:1 ratio. I asked how it could get that bad for over an hour, considering his QOS and speed of connection and contention ratio of 10:1. This got a response of a blank stare. He never said anything in response - but rather changed the topic. Then I asked about the US$4000 dollar a year VSAT permit fee. He responded that his clients did not have to pay that, nor did they have to pay import fees on the equipment, as his license with Ghana covered all of that. He then quoted me a price higher than the one that was in the original project description. I asked him about this and the core of his answer was that new clients would be charged more than old clients - which struck me as an interesting thing to say to a potential new client - who by the way was now shopping for about 4 parties. This was because , once it was known that I was consulting for our office other parities asked for help finding a solution for them as well. In my follow up correspondence with another company, it has said that there are a number of operators who are paying bribes and not paying the required fees and customs charges - but that they had to collect the US$4000 a year and had to file for the permit before they could import the equipment into Ghana. But at least a client with this company does not have to pay the US$16,000 start up and one time fees. So I am still talking to this company about pricing and have consigned other reseller to the scrap heap of shady vendors that we can't work with. On the quality of DSL in Accra , I stayed at a guest house in Accra and it had a great DSL connection - 256k down 64k up . It has had it for a year and it is down about one day a month. The key though seems to be the neighborhood. It is located near a number of embassies and apparently GT keeps the lines maintained in that area. I was contacted by someone in another organization who lived 5 kilometers away and had a terrible DSL connection. Same old sad tale - it was great to start with, then started to get a bit worse. Now it is often off line and the field service has declined on the same schedule. The organisation is now looking for another solution. If you go though Ghana anytime soon make sure to have some flex in your schedule - there were aviation fuel shortages while I was there and some flights were either delayed or cancelled because of it. ____________________________________________________________________________ WEB AND MOBILE DATA NEWS ____________________________________________________________________________ * WSIS SECRETARIAT FREEZES WEB-PAGES FOR GENEVA, TUNIS PHASES The Executive Secretariat of the World Summit on the Information Society (WSIS) has announced the freezing of the web-pages of both the Geneva and Tunis phases of the summit. This is coming as it has taken a firm step in updating media professionals on the post-WSIS related information by maintaining its 'WSIS E-Flash' medium. Champion Infotel, recalls that WSIS was held in two phases; in December 2003 in Geneva and Tunis in November 2005 spearheaded b y the International Telecommunication Union (ITU) Secretary-General, Mr. Yoshio Utsumi. WSIS E-flash is a regular online 'information dish' for interested professionals in the Information and Communication Technology (ICT), especially the media who seek update from the secretariat Information from the editorial team of WSIS e-Flash said that the decision was to continue the tradition of E-Flash to keep interested subscribers updated on events in the post-WSIS process. This development came as the web-pages on Geneva and Tunis summit phases would soon be frozen. "We will also continue to update the official WSIS website. While the content of the web-pages regarding the Geneva and Tunis Summit will be 'frozen'" the team stated. The secretariat also said that other parts including basic information, stocktaking and the new chapter on "WSIS Implementation and follow-up" would be open and regularly updated. As part of the activities in the post-summit period, the ITU Secretary-General has decided to maintain the WSIS Executive Secretariat, although on a smaller scale, to carry out the implementation tasks stipulated in the Geneva Action Plan and Tunis Agenda of WSIS. These activities include the coordination cum facilitation of multi-stakeholder implementation and stocktaking, as well as other essential tasks. Some of the post-WSIS meets include Internet Governance Forum (IGF) consultations on 16 - 17 and WSIS Action Lines Moderators cum Facilitators gathering on 24 this month of February respectively. Pointing out the Tunis Agenda in paragraph 108-109, which stated that multi-stakeholder implementation at the international level should be organized taking into account the themes and action lines in the Geneva Plan of Action, and be moderated or facilitated by UN agencies when appropriate. The experience of, and the activities undertaken by, UN agencies in the WSIS process notably via the ITU, United Nations Education, Scientific and Cultural Organisation (UNESCO) and United Nations Development Programme (UNDP); should continue to be used to their fullest extent. These three agencies are expected to play leading facilitating roles in the implementation of the Geneva Plan of Action and organize a meeting of Moderators/Facilitators of Action Lines as well as the IGF. (SOURCE: Daily Champion) * WEBSITE TO MARKET TEXTILES LAUNCHED IN UGANDA In a bid to enhance Uganda's performance in the African Growth Opportunity Act, a website has been launched to provide information about the country's textile potential. http://www.uga.edu/internationalpso/ugandatextiles/ has been launched by the Uganda Investment Authority (UIA) and contains details of the textile industry. The website is intended to provide information of industry players, cotton production, jobs and other related information. She was seeing off six companies on February 13 that are to represent Uganda at a textiles exhibition in the US. Southern Range Nyanza, Apparel Tristar, Phenix Logistics, Sigma Knitting Industries, Kwera Limited and Samaki are the companies that will represent Uganda. (SOURCE: The Monitor) ADVERTISEMENT: Sky 2 Net LTD providing A-Z solution for Internet & VOIP via satellite (C-Band) that covers all Africa and Asia. The solutions including end-to-end Equipment of V-sat, wireless, VOIP, Bandwidth Management and Anti-Spam (outgoing). Sky 2 Net provide Internet and International call termination and generation for prepaid cards and regular operators. - Web Site: www.sky2net.net - E-Mail: wilan@sky2net.net - Tel: +972-54-233261 ___________________________________________________________________________ CONVERGENCE NEWS ___________________________________________________________________________ * TELKOM, MULTICHOICE TEST VIDEO-ON-DEMAND A partnership between Telkom and MultiChoice to stream selected TV content over the Web has been established, says Alphonzo Samuels, Telkom's broadband executive officer. "We are investigating different compression techniques," he says, adding that a closed-group video-on-demand (VOD) trial is being conducted. Samuels declines, at this stage, to reveal details on programming, the duration of the trial, or any dates on when the service may be rolled out. Telkom said recently it may consider buying a broadcast licence, in view of plans to bring Internet Protocol TV (IPTV) to SA. But since MultiChoice is a licensed content-providing partner for the VOD project, Telkom would not require the broadcast licence. Samuels says the VOD trials are distinct from Telkom's IPTV plans, and believes the service would be "complementary" to IPTV in the future. MultiChoice would not comment on the partnership, citing contractual obligations. Alphonzo Samuels, Telkom's broadband executive officer, declines to reveal dates on when the service may be rolled out. VOD systems are either 'streaming', in which viewing can start as the video streams over the Internet, or 'download', in which the programme is brought in its entirety to a set-top box before viewing starts. Users are able to pause, fast forward, rewind and jump between frames with all ?download' VOD systems and some ?streaming' VOD systems. "Video-on-demand in SA is just around the corner; it is evolving extremely rapidly in the developed economies," says Arthur Goldstuck, MD of World Wide Worx, adding: "If we don't move in this direction we'll fall behind." (SOURCE: ITWeb) __________________________________________________________________________ PEOPLE __________________________________________________________________________ * Fujitsu has extended its investment in South Africa by appointing a new head of Core Services. Stephen Floyd joins the South African operation to lead the roll-out of the Fujitsu Core Services Model throughout the region. * Kelvin Reynolds, former MD of Oracle SA and VP of Oracle Corporation, has joined AltX-listed Simeka BSG as executive director of enterprise software systems. He resigned as MD of Oracle SA late last year, and was replaced by Oracle Ireland MD Nicky Sheridan. __________________________________________________________________________ EVENTS __________________________________________________________________________ - Corporate Network Management Forum: LANs, WANs, VPNs, Multimedia, VoIP, Security: Developing Strategies in Network Management and the Business Imperatives 23-24 February 2006, Nairobi, Kenya For further information contact, Vincent Wambua, AITEC Kenya Website: www.aitecafrica.com - Conference on Free and Open Source Software (FOSS) 23rd to 25th February 2006, Nairobi Safari Park Hote, Kenya For further information call Tel/Fax + 254 20 374 9771. - Second Annual SANGONeT "ICTs for Civil Society" Conference and Exhibition 7-9, March 2006, Indaba Hotel, Fourways, Johannesburg, South Africa For more information, visit www. sangonet.org.za/conference2006 - Digital Broadcasting Switchover Forum 2006 organised by the CTO 3rd- 5th April To register and other general enquires contact Bhavna Kerai on b.kerai@cto.int or call +44 (0) 207 024 7616 - ICT AFRICA INVESTMENT SUMMIT 2006 - Strategies for sustainable development of ICT infrastructure in Africa 4 – 6 May 200, Intercontinental Hotel, Kigali, Rwanda For further information contact titi@cyberschuul.com - AfNOG workshop on Network Technology 7 - 12 May 2006, Nairobi, Kenya. Further information and application forms are available at <http://www.afnog.org/afnog2006/workshop/>. - VoIP World Africa 2006 8 – 11 May 2006, Sandton Convention Centre, Johannesburg, South Africa For more information, contact Christinah Mazibuko on +27 11 516 4940 Or by email at christinah.mazibuko@terrapinn.co.za - eLA eLearning Africa 2006 - 1st International Conference on ICT for Development, Education and Training May 24 - 26, UNCC, Addis Ababa, Ethiopia For further information please visit www.elearning-africa.com - Telecoms and Investments 2006 4-6 July , 2006 at Sheraton Hotel & Towers, Abuja - Nigeria. For further information please telephone:+234 9 671 8799, Fax:+234 9 413 9293, Cell:+234 803 563 9927 Website:http//www.telecomsandinvestments.com Email:info@telecomsandinvestments.com - Storage Continuity InfoSecurity Africa 2006 10 - 14 July 2006 Sandton Convention Centre, Sandton, Johannesburg For futher information please see http://www.terrapinn.com/2006/sciza/ __________________________________________________________________________ JOBS AND OPPORTUNITIES __________________________________________________________________________ * HOSTING JINX 2006/20009 The call for proposals for the hosting of JINX for the2006-2009 has been launched by ISPA. Proposals have to be submitted by 17:00 on Tuesday, 28 February 2006. For further information on the specifications contact proposals@ispa.org.za * REUTERS DIGITAL VISION FELLOWSHIP PROGRAMME The Digital Vision Program supports social entrepreneurs who seek to leverage technology-based solutions in the interest of humanitarian, educational, and sustainable development goals. The programme fosters interdisciplinary projects and prototyping efforts that aim to address real needs in underserved communities. Deadline for application is April 3 2006 For information about applying, and to apply online http://rdvp.org/become * NSS PRIME CONSULTANTS GSM/GPRS - ALGERIA ALCATEL experience Network Design, Performances and Processes & Procedures More than 10y experience ; Audit or Due diligence experience Contract Length 3 months . For further information please contact advertising@balancingact-africa.com * BSS/GPRS EXPERT – SENEGAL For a leading provider in West Africa, we are urgently looking for a BSS/GPRS Expert Needs experience in GSM/GPRS/EDGE technology - at least 5 years with cellular operators and/or BSS/UTRAN vendors ; -3G, GSM, GPRS, EDGE network optimization Excellent project management, Good presentation, Communication Contract Length 6 Months . For further information please contact advertising@balancingact-africa.com _______________________________________________________________________ CONTRACTS: WHO'S SELLING WHAT TO WHO? __________________________________________________________________________ - NAMIBIAN MTC - MOTOROLA Namibia’s Mobile Telecommunications (MTC) has signed a five-year exclusive deal with Motorola for the supply of GSM/GPRS/EDGE and Canopy access network equipment. Under the contract, Namibia's sole cellco plans to expand its network to reach 95% of the country’s population, up from its current coverage of 88%. In 2006, MTC aims to focus on road coverage and ensuring that all main routes are covered, as well as improving service quality and reducing congestion on the existing network, spanning 250 base stations. In operation since 1995, MTC had around 430,000 active subscribers at the end of 2005 and offers GSM/GPRS services including MMS, e-mail and internet access. The new deal with Motorola builds on an existing long-term relationship between the two companies. - MAURITANIAN GOVERNMENT - SOTETEL The Tunisian company SOTETEL has won a contract in Mauritania, for a value of 420,000 euros, The company has already carried the installation of telecoms equipment for the private mobile operator MATTEL. This new contract the wiring and the interconnection of public buildings such as ministries and other public buildings. It should be noted that several Tunisian companies and other software firms carried out several projects in the field of new communication and information technologies in Mauritania. ____________________________________________________________________________ BACK NUMBERS - FINDING THE INFORMATION YOU NEED ____________________________________________________________________________ If you need to find information in our back numbers, you can do this in one of two ways. Either go to our full archive clicking on the link below: http://www.balancingact-africa.com/news/backindex.html or use google just to search our site clicking on the link below: http://www.balancingact-africa.com/search.html ___________________________________________________________________________ NEW 2006 RATE CARD AVAILABLE ___________________________________________________________________________ To see a copy of our new rate card for 2006, e-mail a request to: (info@balancingact-africa.com) Don't get left behind. Be seen and known through advertising in our e-letter and on our web-site. ____________________________________________________________________________ All material printed in Balancing Act's News Update is subject to copyright. Reproduction in whole or in part is prohibited without the expresspermission of the publisher. ____________________________________________________________________________