Friday, November 27, 2009

Libya To Dispose of Stake in Phone Companies

­The Libyan government has announced plans to sell small stakes in the country's two mobile phone networks as part of a wider plan to sell off state owned corporations. The IPOs will offer shares in the government's two mobile telephone operators, al Madar and Libyana, as well as in Iron and Steel Company and National Commercial Bank.


The government also announced details of tax breaks to make trading on the local stock exchange more appealing to investors.

"The trading volume remains small because we are still at the start, but I expect that with new regulations ... the Libyan stock market will become one of the most active in North Africa and the Arab region," Seleem Naas, chairman of Libyan brokerage Sarab Foreign Exchange and Financial Services told the Reuters news agency.

Earlier this year, Etisalat said it had submitted a bid for Libya's third mobile phone license, although nothing further has been heard.


According to figures from the Mobile World, Libyana is the dominant operator with 83% of the market, followed by Al Madar. The country has a population penetration level of 134%.

Windows Live: Friends get your Flickr, Yelp, and Digg updates when they e-mail you.

MTN NIgeria Plans to Cut 65 Jobs

MTN Nigeria has announced plans to cut 65 jobs of which the majority are from the company's customer care division. One of the redundancies affects a manager who was already suspended from work. The company said that job cuts followed an internal performance review of the staff affected.

Windows Live: Keep your friends up to date with what you do online.

Friday, November 20, 2009

Smiles Launches as Uganda's Seventh Phone Operator

Smiles Communications Uganda has launched its WiMAX network in the capital city of Kampala, with plans to cover the entire country by the end of next year.

'We bring to the Ugandan market a WiMAX platform that uses voice over internet protocol (VoIP) to make calls, the first of its kind on the African continent,' the company's CEO, Mr. Philip said.

Mr. Phillip said the firm would begin with wireless table phones that would be located in public places including markets, taxis and bus parks. 'We are informed of how the competitors operate and we are going for the bottom of the pyramid business,' he told the Daily Monitor.

The other operators in Uganda are MTN, Orange Uganda, Uganda Telecom, Warid Telecom, Zain and the recently launched I-Telecom.

NITEL Sale To Be Concluded In January

Director general of Nigeria's Bureau of Public Enterprises (BPE), Dr Christopher Anyanwu, has stated that the sale of ailing incumbent telco Nigeria Telecommunications (NITEL) to a new core investor will be concluded by January 2010, local newspaper Daily Trust reports.

He added that those companies that have submitted a bid for the operator are currently undertaking due diligence on its facilities. In early October the BPE extended the deadline for the submission of technical and financial bids from 2 October to 26 October due to the complexity of the process.

The winning bidder was expected to be announced on 9 November. However, the 60-day deadline set by the federal government for the completion of the sale was not met due to the difficulties experienced by foreign investors to get visas to visit the country and assess the operator's assets.

Vavasi To Continue To Pursue Stake In Zain

Despite reports that Indian state-owned firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have withdrawn from talks to join an investment group looking to buy a stake in Zain Group, consortium leader Vavasi has revealed that the group will still invite the telcos to partake in the due diligence process.
Vavasi managing director, Farid Afruddin, said: 'We are going to do the due diligence on Zain Telecom from next week. We will write to BSNL and MTNL to take part in the process along with us… We are keeping our options open.' If the two companies decline Vavasi's invitation, the investment group is expected to look for new partners to help fund the bid for a 46% stake in the Kuwaiti mobile group.

Mauritius Hopes To Raise USD50 million From MT Sale

The Mauritian Finance Minister Ramakrishna Sithanen has, in his budget speech, said the government hopes to raise MUR1.5 billion (USD50 million) from the listing of the nation's largest telco, Mauritius Telecom (MT).
'While the fiscal deficit for 2010 is projected at 4.5%, government borrowing requirement will only be 4% of GDP. This is mainly due to the sale proceeds of Mauritius Telecom shares which is expected to raise at least 1.5 billion rupees,' Reuters quotes the minister as saying. The government sold a 40% stake in its national operator to France Telecom (Orange) in 2000 and retains a 60% stake along with the State Bank of Mauritius.
MT reported post-tax profits of MUR1.9 billion (USD51 million) in 2008, down 5% year-on-year, on the back of increased interest payments, but confirmed its plans to list on the Indian Ocean island's stock exchange. Full year turnover climbed 6.5% to MUR6.8 billion in 2008, driven by 12% growth at its mobile unit Cellplus Mobile Communications.
In May 2008 the government of Mauritius imposed new taxes on local phone firms, including a 5% levy on profits and 1.5% on revenues as part of a wider plan to keep the budget deficit in check. MT had planned to list last year but postponed the event in the wake of the global credit crunch. At the time it stopped short of providing a date for the listing, although its chairman Thomas Appalsamy confirmed it 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 in June 2009.

Paltel cancels Zain Deal

Palestine Telecommunication Co (Paltel) has announced that it has canceled a deal which would have seen Kuwait-based telecom group Zain take gain a majority stake in the Palestinian operator, Reuters reports.

Paltel claimed that commitments made as part of the deal had not been fulfilled within the agreed time frame, although it declined to provide details on what these commitments were.

Zain has confirmed that the plug has been pulled on the acquisition, although it claimed that its inability to secure the required government approvals was the reason for the deal’s cancellation, although again no further details were provided as to what these approvals were or why they had not been granted.

The two companies announced the deal back in May 2009, with Zain agreeing to take a 56.53% stake in Paltel. Under the terms of the agreement the two companies entered into a share-for-share exchange, which would have seen Zain take the majority stake in Paltel in exchange for Paltel taking 100% ownership of Zain Jordan; the merger would have set Paltel shareholders’ equity position in both Paltel and its newly acquired subsidiary at 41.43%.

SEACOM Disappointed By South Africa Response

Submarine cable operator SEACOM has revealed that it has been disappointed by a lack of take-up in South Africa following the launch of the 15,000km, 1.28Tbps cable system in July 2009, reports. Company spokesman, Suveer Ramdhani, revealed that of the full SEACOM design capacity, ten wavelengths have been lit, supplying 100Gbps of bandwidth.
The company believes take-up has been slow as anticipated price decreases brought about by the arrival of SEACOM have to a large extent not been realised; with the advantages of added bandwidth being slow to filter through to consumers.
Ramdhani said: 'The limiting factor is backhaul. There are those on the consumer side that want bandwidth, and there is us on the undersea side that want to give it – we just cannot seem to connect. It is kind of disappointing… The people who are willing to reduce prices in the market do not necessarily have their own access network. It really comes down to our channels to the market. The big boys that have direct access to customers, and have access to the national backhaul, need to start dropping their prices as well. Whilst there is some competition in the national leg, with Broadband Infraco and Neotel coming online, there is a lot of capital being pumped in, the price reductions that come with that national backhaul will only emerge a few years later.'
Ramdhani also criticised the lack of local access provision, adding: 'The other major point is the access network… Even if you do solve national backhaul bottlenecks, how do you actually get to the consumer in his house or office? Local Loop Unbundling (LLU) is still many years away. These issues need to be addressed before consumers really begin to see the benefits of the cable initiatives.'

Tigo Launches As Rwanda's Third Operator

Luxembourg-based telecoms group Millicom International Cellular (MIC) has launched mobile services in Rwanda under the Tigo banner, becoming the country's third wireless operator.
'We are here to compete. We want to increase penetration and accessibility to telephone services that are affordable,' commented Alex Camara, chief executive of the company. MIC won the tender for a 15-year wireless licence with a bid of USD60 million in November 2008, beating competition from Telecel Globe, Zain and Larrycom-Expresso.
The company has invested over USD100 million in the rollout of a 2G/W-CDMA/HSDPA network across around 13 districts of the central African country. Tigo joins two other cellcos in the market: MTN of South Africa, which had a market share of around 79% at 30 September 2009; and Rwandatel, which is owned by Libyan government investment vehicle LAP Green Networks (80%) and the Social Security Fund of Rwanda (20%) and launched commercial GSM/W-CDMA services in December 2008.

Tunisia's Hannibal Cable Goes Live

Tunisie Telecom has inaugurated its first wholly owned submarine fibre-optic cable, known as 'Hannibal.' With an initial capacity of 40Gbps, expandable to 3,200Gbps, the cable, which connects Kelibia to the Italian city of Mazara, runs 180km and has been built at a cost of TND16 million (USD12.6 million).

Libya's LAP Green Secures U$300 Million Loan For African Assets

Libyan investment company LAP Green has signed a USD300 million loan agreement with the Industrial and Commercial Bank of China to allow it to fund capital expenditure in its telecoms investments in Uganda, Rwanda, Ivory Coast, Sierra Leone, Niger and Togo.
The USD300 million is part of the USD10 billion that China has pledged to lend Africa in low interest loans.

NITEL Sale Date Could Be Extended Again Over Visa Delays

According to Nigerian news source NEXT, the deadline for the sale of ailing incumbent telco Nigerian Telecommunications (NITEL) looks set to be extended further, due to the inability of foreign investors to get visas to visit the country and assess the operator's assets.
Earlier this year the federal government gave the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) 60 working days to find a buyer for the company, but the 17 November deadline looks set to pass without a sale taking place. BPE spokesperson, Chigbo Anichebe, told NEXT that the delay is not a major issue for the bureau, which would rather see the process carried out thoroughly and the right investor found. Rather it is the government that is pushing for a quicker sale due to the depreciating value of NITEL and increasing competition in the telecoms market.
In early October the BPE extended the deadline for the submission of technical and financial bids from 2 October to 26 October due to the complexity of the process. The winning bidder was expected to be announced on 9 November.

Gabon Orders Azur To Suspend Its Service For Three Weeks

Gabon's Minister of Communication, Laure Olga Gondjout, has met with Ibrahim Alkharboush, Executive Director of Bintel, the Middle Eastern owner of the African country's newest mobile operator, USAN Gabon (branded 'Azur'), following which a statement was released which apparently orders the newcomer to suspend its operations for three weeks while it fully complies with regulations.
The text of the statement included the following: 'This meeting enabled both sides to better suit the regulatory [conditions] of the mobile [market] in Gabon... In recent weeks, Azur made a brilliant and equally thunderous entrance into the Gabonese market. However, all conditions... are not completely satisfied. For that to happen, the government of Gabon has temporarily suspended Azur so that the operator complies fully and honourably [with] the specifications.' The statement did not say which specific regulations have not been complied with.

TelOne Awaits Funds To Expand WiLL

Zimbabwe's national PTO TelOne is 'at an advanced stage' in its plans to expand its coverage of CDMA-based wireless in the local loop (WiLL) services countrywide, but can only proceed when the necessary funds become available.
TelOne has already begun expanding CDMA network coverage from Harare's central business district to high-density suburbs of the capital, but TelOne spokesperson Colin Wilbesi says the state-run operator faces 'financial challenges' if it is to increase the footprint further.
'Plans to expand the product to other parts of the country are at an advanced stage. However, due to financial limitations the rollout of the programme has been limited to the capital for now. As soon as funds are available, other parts of the country will be included in the rollout programme,' Wilbesi said, without specifying how much money was required or a likely timeframe.
Early this year the telco revealed that it required a total of more than USD270 million to upgrade its national fixed network, including the completion of a cross-country fibre-optic backbone.

Essar Buys Warid In Congo and Uganda

India's Essar Group has agreed to buy majority stakes in the Dhabi Group's telecoms businesses in Uganda and Congo, Warid Telecom Uganda and Warid Congo. 'The Essar Group has committed growth capital to both telecoms operations to facilitate network expansion and marketing. Upon completion, the Essar Group will acquire a majority stake in both the assets. The partnership is also expected to bring operational efficiencies to the African operations,' the company said in a statement.
Warid Telecom Uganda was awarded Public Infrastructure Provision (PIP) and Public Service Provision (PSP) licences in December 2006. On receipt of the concessions, Warid immediately announced plans to roll out a GSM-based network, adding that it would invest USD200 million in its network to give it capacity for 1.5 million subscribers and coverage of 70% of the population.
Test calls were completed in September 2007 and the network was launched in February the following year on a pre-paid-only basis. Within three days of launch the company claimed to have signed up 150,000 customers and by the end of December the figure had increased to 1.3 million. Meanwhile in the Republic of Congo Warid has invested around USD90 million and has some 300,000 customers.

Angola To Complete Southern Fibre Network By Year End

The installation of fibre-optic cable links across Angola's southern provinces of Huila, Namibe, Kuando Kubango and Cunene is on target for completion by the end of this year, according to Angola Telecom's regional director, Manuel Octavio.
Speaking to news provider Angop, Octavio said that fibre links between Namibe and Huila are complete, adding that the company's technicians are doing their best to reach Kuando Kubango and Cunene by the end of this year, to provide better quality, high speed communications with cheaper prices.

Zim's TelOne Admits Blocking Calls To Keep Debts Down

Zimbabwe's incumbent national PSTN operator TelOne has admitted for the first time that it restricted fixed-to-mobile calls in an effort to keep its debts from mounting.
The telco owes USD22 million in interconnection charges to mobile operators, its acting managing director Hampton Mhlanga told the Parliamentary Committee on Media, Information and Communication Technology last Thursday.
Mhlanga explained: 'There was a time that the liabilities increased so much that we took a business decision... we were not allowing 100% of calls to mobile operators, especially to [the largest network] Econet, so that we [could] reduce our liability. However, we have since had discussion with the operators, and we said to them, we will pay you 10% of our collections, until such a time as we are able to collect 100%.'
Mhlanga also said that the Cabinet decision to force TelOne to slash its tariffs earlier in the year had plunged the PTO deeper into debt. Its obligations to other telecoms operators and the Zimbabwe Revenue Authority had ballooned following the directive, Mhlanga told the committee, whilst he added that the company had been collecting only about 15% of its bills from customers, yet the Revenue Authority demanded tax returns to be based on bills rather than actual money collected. In a statement TelOne said it would end an 'amnesty' on disconnecting defaulting customers as from 1 December.

Alcatel-Lucent Deploys End-to-End Communications for Angola Gas Plant

Alcatel-Lucent has secured a USD12 million contract with engineering firm Bechtel for the deployment of integrated telecoms infrastructure to support a new liquefied natural gas (LNG) plant in Angola.
Under the contract, the French-US supplier will design and implement a fibre-optic cable network, satellite communications, data and voice LAN supporting VoIP telephony, UHF radio and VHF marine radio systems for the onshore and offshore operations of Angola LNG Limited's new plant, scheduled for launch in early 2012.
Angola LNG's part-owner, national oil company Sonangol, has its own telecoms division, MSTelcom (including Nexus), which provides fixed line and broadband services in addition to owning a 25% stake in Angola's largest mobile operator Unitel as well as a share in the Angola Cable fibre-optic consortium.

BTC Chooses Ceragon For Network Upgrade

Botswana Telecommunications Corporation (BTC) has selected wireless backhaul solutions provider Ceragon Networks to upgrade its nationwide wireless backbone and the backhaul network of mobile unit beMobile. Ceragon's FibeAir solutions will enable the operator to meet its service expansion plans and support rapid subscriber growth.
The deployments will help BTC work towards completing the Botswana Telecommunications Authority's (BTA's) Rural Services Improvement and Expansion project, network deployments for which are expected to be finished by year-end.
'In order to succeed in the dense telecom market of Botswana, it was important for us to select a backhaul solution that will ensure high quality service delivery at a competitive price,' a BTC spokesperson commented, adding, 'Ceragon has proven to be a great partner, combining superb technology with excellent customer support. With a high-capacity wireless network that we can depend on, beMobile is set to meet the goal of doubling its market share in Botswana.'

Moody Warns Orascom Ratings Could Fall

­Debt ratings agency, Moody's Investors Service has placed Orascom Telecom Holding's ratings on review for possible downgrade. Moody's said that the decision related to an announcement from the Algerian government regarding taxes and penalties alleged to be owing by Orascom Telecom Algeria (OTA) in the amount of approximately US$596.6 million.
Orascom Telecom said that the assessment is unfounded, and the Group intends to take all necessary legal steps to challenge the assessment through all available administrative and judicial channels.
At the same time, Moody's downgraded the Corporate Family Rating (CFR) of Orascom Telecom to B2 from B1, and the rating of the US$750 million senior notes due 2014 issued by Orascom Telecom Finance S.C.A. to Caa1 from B3.
The rating action reflects Moody's view that Orascom's potential inability to repatriate 2009 dividends from OTA (which is the company's primary source of cash inflow) until any resolution with the tax authority, or the payment of US$596.5 million to DGE would put significant pressure on Orascom's already weak liquidity profile. The rating action also factors in the challenging operating and regulatory environment in Algeria, and its impact on Orascom's business and financial risk profile in the medium term, particularly considering that Algerian operations generated 51% of the Group's EBITDA during the first 9 months of 2009.
As part of its review process, Moody's will focus on the company's action plan, including any asset disposal. Moody's aims to conclude the review promptly.
The last rating action on Orascom Telecom was implemented on 23 September 2009, when Moody's downgraded the CFR to B1 from Ba3, with negative outlook, reflecting -- amongst others - Orascom Telecom's current difficulties in repatriating 50% of the 2008 dividends (to the amount of US$257 million) from its subsidiary in Algeria, OTA, until the local tax authority issues a clearance certificate in relation to the tax position of OTA; and the potential negative impact of a delay on Orascom Telecom's liquidity profile, particularly considering the heavy equity investments planned in Canada in Q4 2009 and the debt repayments coming due in 2010.
Moody's understands that if OTA makes the payment of US$596.5 million to the tax authorities, the local tax authority will issue a clearance certificate in relation to the tax position of OTA, which would then allow Orascom to repatriate the remaining 50% of the 2008 dividends (i.e.US$257 million).
Orascom Telecom is a holding company with controlling interests in mobile operators in Asia and Africa. In 2008, the company generated US$5.33 billion in revenue and USD2.38 billion in reported EBITDA, on a consolidated basis

Telecom Egypt in 13% Q3 Profit Fall

Egyptian fixed line incumbent Telecom Egypt (TE) has revealed a 13% year-on-year decline in net profit for the three months ended 30 September 2009 to EGP826 million (USD151 million), considerably ahead of analyst expectations. Revenue for the company in the three-month period also declined, down 5.5% y-o-y to EGP2.54 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) after provisions fell 11.2% compared to the same period a year earlier to EGP1.25 billion.
Despite the quarterly drops, the company's fiscal results for the nine-month period ending 30 September 2009 were more impressive, with TE posting a 17.7% increase in net profit against 9M 2008 to EGP2.58 billion, while nine-month revenue for end-September 2009 was EGP7.74 billion, up 3.3% against the corresponding period in 2008.
Fixed line subscribers continue to decline for the telco however, with TE reporting that at end-September 2009 it had 9.63 million subscribers, down some 15%, or two million, against the same date a year earlier. Uptake of the company's ADSL services has continued to climb though, with TE reporting a 68.4% increase in its broadband subscriber base to 571,819 at the end of the reporting period.
Commenting on the results, Tarek Tantawy, chief executive officer of TE, said: 'I am pleased to report a nine-month performance which is testament to TE's resilience and determination. Reporting revenue growth of 3% over the last nine months is a solid achievement, particularly when our top and bottom line performance has delivered against intensification in the land grab for mobile subscribers, something which is now attracting regulatory oversight. While such aggressive marketing promotions are being felt at the revenue level, we have protected our margins which remain some of the strongest in the industry.'

Zain Malawi Gets 3G Licence

The Malawi Communications Regulatory Authority (MACRA) has awarded a licence to provide third generation mobile services to Zain Malawi, reports.
The cellco's marketing director, Enwell Kadango, confirmed that discussions over licensing between the two parties were first initiated in 2006. Without elaborating, he added that the concession has only just been awarded, because the cellco's licence conditions have been changed.
Zain is reportedly close to finishing the deployment of a 3G-compatible network across the country, which will offer download speeds of between 2Mbps-8Mbps, television services and videocalling.
Without mentioning a specific date, the report adds that Zain's sole competitor in the mobile market, Telekom Networks Malawi (TNM), has already been awarded a 3G licence, and is currently testing the technology.

Telma Mobile Launches Madagascar's First HSPA+ Network

Madagascar's Telma Mobile has announced the launch of the country's first HSPA+ network. The company also said that it will maintain pricing at the same level as it charges for its existing EDGE services. The network was provided by Ericsson.

Mobinil Signs Up Zain One Network Deal

Zain has expanded its international roaming agreement, known as One Network to include Egypt after signing a partnership with Mobinil. The One Network platform offers roaming across the Zain network with call costs and services charged at the same rate as the home network.
As in any other "One Network" country, while in Egypt, Zain customers can recharge their pre-paid lines with locally purchased top up cards.
"'One Network' is unstoppable," said Zain Group CEO Dr Saad Al Barrak. "We have reached an enormous milestone by reaching Egypt, a country that embraces both the Middle East and Africa. In every new country in which we plant the "One Network' flag, we are redefining the concept of mobile coverage and roaming by delivering on our brand promise of 'A wonderful world'".
Since its introduction in September 2006, "One Network" has been recognized by the international community for significant innovation and raising industry standards, attaining many awards. Most recently at the Middle East World Telecom Awards held last Tuesday, 'One Network' was named "Telecommunication Innovation of the Year".

MTN To Lay Off 400 Staff IN South Africa

­South Africa based MTN is reported to be planning job cuts of over 400 staff, or around 8% of its total headcount. The redundancy plan, which The Times newspaper has seen, is dubbed the "Headcount Reduction Project Plan".
The plan is reported to involve 120 staff from MTN service centres, 71 from customer operations, 70 from distribution, 40 to 50 from finance, 41 from corporate sales, 21 and 20 from human resources and marketing and 10 from the technology department.
Employees have been asked to take voluntary termination packages.
It was also reported that an unspecified number of the mobile network operator's contract employees would also be cut.
The company recently reported a substantial drop in its subscriber base, largely due to prepay subscribers refusing to register their identities with the operator as required by a new law.

Orascom Q3 Profits Double

­Orascom Telecom Holding has reported a near doubling in its 3rd-quarter profits to US$180.9 million, compared to $90.5 million in the same period a year ago. Revenues were US$1.29 billion in the quarter.
The total subscriber base approach 89 million, an increase of 12.1% over September 2008.
Third quarter revenues performance improved over the previous quarter in all major subsidiaries, with the exception of Pakistan where a slight devaluation of the currency and Ramadan negatively impacted revenues. Q3 09 was particularly strong in Tunisia, with revenues up 13.9% over Q2 09, and was also positive in Egypt and Bangladesh with single digit increases over the previous quarter. In OTA, revenues were flat over the previous quarter mainly as a result of increased competition and slower subscriber growth. It is worth noting that the Holy month of Ramadan took place entirely in the third quarter of this year with a negative impact on revenues.
Naguib Sawiris, Chairman and CEO of OTH, commented on the results: "The performance of Orascom Telecom in the first nine months of 2009 has seen an improving trend over the course of the year as local currencies in most of our key operations have stabilised against the US$, after the sharp devaluation of the currencies in Algeria, Pakistan and Tunisia. While the economic environment has improved in recent months the competitive environment remains challenging; in this context OTH has continued to perform well, although 2009 will be a year of slower growth than 2008, in line with our forecasts.
In the first nine months of 2009 Orascom Telecom continued to grow its customer base approaching the 89 million subscribers mark, a 12.1% growth over the same period of the previous year. Growth was particularly strong in Egypt, up more than 30%, in Bangladesh, up almost 20%, and in Tunisia, up almost 16%. In Pakistan overall subscriber growth was 4% lower than the previous year as a result of the substantial inactive customer base clean-up performed up to Q1 2009; since then growth has resumed and in the six month period spanning Q2 and Q3 2009 Mobilink achieved over 1.8 million net additions.
Growth in Algeria remained positive in Q3 2009 with a 2% growth over the same period of 2008. A significant contribution to customer base growth was also delivered by Telecel Globe, with subscribers rapidly approaching the 1.5 million mark, and North Korea based koryolink which counts over 69,000 subscribers as of September 30, 2009. The management contract of Alfa in Lebanon continues to perform strongly with subscribers approaching 1 million.
On the company's Canadian investment, Sawiris commented "Concerning our investment in WIND Mobile (previously Globalive Wireless) we are very surprised and disappointed by the CRTC decision that comes 14 months after the end of the AWS spectrum auction and a few weeks ahead of WIND Mobile's intended launch date, also in light of the approval received in March 2009 from Industry Canada confirming the compliance with the Canadian ownership and control rules. We will support WIND Mobile's management in its efforts to explore all avenues to obtain clearance to operate in Canada and launch operations at the earliest possible time in order to enable the Canadian consumers to benefit from a truly competitive market."

Zain Q3 Profits Fall By Half

Kuwait based Zain has reported a 53 percent drop in its 3rd-quarter profits to KWD 41.19 million (US$144.3 million) from KWD 87.2 million a year ago.
For the first nine months of 2009, Zain Group recorded consolidated revenues of KWD 1.78 billion (US$6.169 billion), an increase of 24% compared to the first nine months of 2008. The company's consolidated EBITDA increased by 37% for the same period to reach KWD 757.3 million (US$2.624 billion). Consolidated Net Income reached KWD 195.7 million (US$677.1 million), a decrease of 17%.
Year-on-year customer growth on the two continents across which Zain operates was 28%, whereby the company is serving 71.8 million managed active customers as of September 30, 2009.
Chief Executive Officer of Zain, Dr Saad Al Barrak commenting on the nine months results, said: "The Company continues to post impressive growth in several key operational and financial indicators as is evident by the increases of our customer numbers, consolidated revenues, EBITDA, EBITDA margin and EBIT. This is a result of our vast and capital intensive network expansion and marketing programs that are attracting new customers and further enhancing our young award winning Zain brand".
Dr Al Barrak also noted however, that, "the global economic crisis, unfavorable foreign currency fluctuations, particularly in many of our African operations coupled with reduced interest income and investment income plus higher financing costs, have had an significant impact on the company's overall profit. Adding to these challenges are the associated 'start-up' capital and operational expenditures in two large and promising operations that were launched in the last 12 months, namely the Kingdom of Saudi Arabia and Ghana, as well increased fixed costs charges as a result of network expansion in many of our markets".
During this nine months period, foreign currency fluctuations have negatively impacted net profit by US$130 million.
Dr Al Barrak further added, "The nature of the nine months 2009 net income result is all the more impressive when one takes into account that during this period in 2008 we had an extraordinary gain of KWD26.6 million (US$99 million) from the successful Zambia IPO. This is an indication that operational net income growth is better than indicated for this period."

South Africa's Operators Agree to MTRs

South Africa's communications minister Siphiwe Nyanda has revealed in a statement to parliament that an agreement had been reached with mobile operators Cell C, Vodacom and MTN to cut mobile termination rates (MTRs), lowering communication costs nationwide.
The three companies have been debating a reduction in MTRs; a state committee proposed that rates should be cut to ZAR0.60 (USD0.08) per minute during peak times and then by a further ZAR0.15 annually until 2012. Operators currently charge each other on average ZAR1.25 per minute during peak times.
However, operators opposed the cut, describing it as 'drastic' and 'below cost', and following further negotiation have agreed to implement a new payment structure, to be introduced in early 2010. Nyanda said: 'The agreed reduced MTRs are the following, peak ZAR0.89, off-peak ZAR0.77. We have therefore agreed with Vodacom and Cell C that the effective date for reduction would be February 2010. This excludes MTN who will implement on 1 March.'

Wednesday, November 11, 2009

Zain Tanzania Forecasts More Subscribers But No Growth In Sales

Zain's Tanzanian mobile venture expects full-year turnover to be flat for 2009 on the back of a cut in consumer spending caused by the wider economic slowdown, although it also reports it hopes to continue to see strong gains in terms of subscribers for the rest of the year.

The unit's managing director Khaled Muhtadi told Reuters he expected customer numbers to keep growing but anticipates 'flat revenue growth' in 2009. 'We see 5.2 million customers by the end of this year, up from 4.8 million currently, and aim to reach six million at the end of next year,' Muhtadi said in an interview.

'Revenue ... was USD328 million for 2008. We don't expect much growth in 2009. The revenue has been rather flat and a lot slower than expected because of the world economic situation,' he added.

Muhtadi went on to say his company has invested USD500 million in its Tanzanian network infrastructure over the past five years. And as part of a new consortium with rival operators Simbanet, Tigo and Zantel, he said Zain was ready to pump a further USD100 million to lay a joint fibre infrastructure throughout the country. 

'We're saying either allow us to put down that backbone or allow us to lease it from the government, but up to now there's no visibility on this and we're not being given the right to lay our own national backbone: this is the bottleneck we're seeing,' Muhtadi said.

New Zamtel Owner To Revitalise Company

­Zamtel's new owner could revitalise the company, gaining a 19% share of the mobile market by 2015, up from its current 4% share. According to Onda Analytics, the privatisation will lead to a major operator taking over Zamtel, providing a serious threat to existing Zambian mobile operators, Zain and MTN.

Interested parties, including MTNL, Telecel Globe (a subsidiary of Orascom), Telkom SA and Vimpelcom officially began due diligence this week.

According to report lead author, Daniel Jones (Partner), "The new investor will have to turn around an operator in crisis. A strategy along the lines of a new entrant will be needed, as Zamtel has fallen further and further behind in the mobile market. High mobile tariffs and low penetration in Zambia present an opportunity for the buyer. Aggressive price competition and going after subscribers new to the market will help Zamtel grow its market share and challenge its competitors".

Onda Analytics' new report considers the strategies that a new owner will need to adopt in order to turn the operator into a significant mobile player in Zambia. Under the right strategy, Onda Analytics forecasts Zamtel to grow its mobile market share from 4% in 2009 to 19% by 2015, increasing its subscriber base from 160 000 to 1.8 million. The report also analyses the strategic importance of Zamtel's other assets, including its fixed line network and the WiMAX network currently in deployment.

On top of increasing revenues, Zamtel will need to keep a close check on costs. "Zamtel's bloated cost base, as a result of its large headcount, has led it to insolvency and the current privatisation process" explains report co-author, Tom Harden, Partner at Onda Analytics. "Today, all the operator's unionised staff have agreed voluntary redundancy. A massive staff reduction programme will be need to be carried out by whichever company takes over Zamtel. The union has recognised this, hoping to get the best redundancy packages for its members by negotiating the government now, rather than the new owner later" explains Harden.

History Is Made As Cellcom Becomes First Private Company to Make IPO In Liberia

Liberian mobile operator Cellcom Telecommunication Incorporated yesterday launched an initial public offering (IPO) in the country, promising to offer shares in the company to businesses and individuals alike – the first time a profitable and privately-owned company has offered shares to the Liberian people.
Cellcom, which is jointly owned by Cellcom Telecommunications Inc and an internet company in Liberia, officially launched its IPO through a convertible debenture whose minimum price is USD10.00. Up to 500,000 debentures are being offered with a minimum of 10% interest which will be payable semi-annually.

Buyer To Share NITEL Debt With Government

The debt of ailing Nigerian incumbent operator Nigerian Telecommunications (NITEL) will be shared between the telco's new buyer and the federal government, local daily Vanguard reports, citing chairman of the Senate Committee on Communications, Senator Sylvester Anyanwu.
The chairman also revealed that the winning bidder of a 75% stake in NITEL will be declared by the end of November, and that interested parties have already been shortlisted. 14 companies have reportedly expressed an interest in NITEL, including Etisalat Nigeria, MTNL of India, Globacom, MTN Nigeria, Telefonica of Spain and MetroPCS Communications.
In a separate story, THISDAY reports that Information and Communications Minister Dora Akunyili has said the ministry will make recommendations to the Federal Executive Council to merge the two regulatory bodies of the Nigerian Communications Commission (NCC) and the Nigerian Broadcasting Commission (NBC), by the end of December. The minister said the move was designed to prevent overlap in the area of spectrum licensing.

Glo Gets Licence in Cote d'Ivoire

Nigerian integrated telecoms operator, Globacom, has announced that it has obtained an operating licence in Cote d'Ivoire. The licence will enable Globacom to take advantage of its trans-Atlantic submarine cable, Glo 1, to provide international data transport services to the West African nation.
With the new licence, Globacom will provide international carrier services for telecoms operators in Cote d'Ivoire, aggregate and carry voice and data traffic into and out of the country. The firm will also transport traffic between third party networks in the country for all telecoms operators irrespective of the type of technology deployed, such as CDMA, 3G, 4G and voice-over-IP (VoIP).
Paddy Adenuga, Globacom's executive director, said: 'In line with our vision, we are building a network that will provide the most comprehensive international communication services on the continent to bridge the digital divide between Africa and the rest of the world.'

Telecom Namibia Extend Data Service to 6 New Locations

Telecom Namibia has announced that it has extended its 3G CDMA2000 1xEV-DO mobile data service to six additional localities: Katima Mulilo, Oshikango, Ondangwa, Okahandja, Henties Bay and Long Beach (near Swakopmund).
Meanwhile, the company reports that it is currently installing new EV-DO base stations in Windhoek to complement the existing eleven base stations in the capital city. Telecom Namibia's 3G services are also available in Oshakati, Ongwediva, Swakopmund, Walvis Bay, Oranjemund, Rosh Pinah, Tsumeb, Rundu, Otjiwarongo, Grootfontein, Luderitz, Keetmanshoop, Aussenkehr, Gobabis, Mariental, Rehoboth and Scorpion Mine.
Mobile broadband services are available to individuals and businesses ranging from an entry-level package priced at NAD289 (USD39.5) per month, to a premium plan including unlimited data usage costing NAD999 a month.

Eskom Adopts SMS Voucher Recharge System

­Sybase 365 says that it is providing the messaging platform for an SMS based electricity voucher scheme being rolled out in South Africa.
The initial service provides real-time electricity pre-pay meter recharge for Eskom (the South African electricity public utility) and various municipalities using a mobile wallet developed by MoPay. A key element of the service is to facilitate the distribution of Free Basic Electricity tokens (tokens distributed by the government to low-income households), sent by SMS to registered meter owners.
"It is very rewarding to be at the forefront of a project which can really make a profound difference to the lives of people in South Africa. So many people are faced with a half day round trip to reach services that they can now access using a network independent, ubiquitous mCommerce service. It would be difficult for a farmer to give up a day tending his farm to go to visit his bank," said Cobus Potgieter, CEO, MoPay. "Our partnership with Sybase 365 enables us to extend mobile-based service offerings to many more diverse, under-privileged and remote communities."
As well as providing this payment mechanism, MoPay also facilitates other services vital to thriving villages and communities, such as free communications, free SMS between schools and parents and free content for schools and students.

Monday, November 9, 2009

Gateway Deal Causes Vodafone Profits To Fall By 98.4%

South African mobile group Vodacom has reported net profit of ZAR59 million (USD7.78 million) for the six months ended 30 September 2009, down 98.4% from ZAR3.77 billion in the same period a year earlier. The operator said that earnings were hit by a ZAR3.2 billion impairment loss relating to its acquisition of pan-African satellite firm Gateway in December 2008.
Revenues for the period were up from ZAR26.09 billion in 1H08, to ZAR28.67 billion a year later while earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8% year-on-year, up to ZAR9.35 billion.
'If I look at the future, the macroeconomic outlook is uncertain but we are seeing early signs of recovery specifically in South Africa,' Pieter Uys, Vodacom's CEO said in a conference call, adding, 'But it is too soon to be confident in a sustained recovery across all customer segments.'
The firm succeeded in adding customers to all five of its operations, ending the period with a total of 28.2 million subscribers in South Africa; 6.26 million in Tanzania; 4.4 million in the Democratic Republic of Congo; 2.1 million in Mozambique; and 586,000 in Lesotho, up year-on-year by 11.7%, 27%, 16.6%, 65.8% and 30.2% respectively.

Namibia's Leo Selects NSN for Network Upgrade

Namibian mobile operator Leo, part of Orascom Telecom's subsidiary group Telecel Globe and previously known as Cell One, has selected Nokia Siemens Networks (NSN) to upgrade its 2G and 3G networks. A press release reads: 'Leo... has selected NSN to expand its pre-paid capability and to extend 2G and 3G network coverage to reach the majority of the country's population. This investment will allow for the faster launch of innovative services to generate new sources of revenue... As mobile phone use in Namibia increases, subscriber demand for new services... is also on the rise. People are looking for greater flexibility and innovative applications... We opted for NSN because they are a trusted partner and their charging solution enables us to quickly launch attractive promotions and marketing campaigns that attract new customers and create loyalty among existing customers.' The 2G and 3G network coverage expansion is being undertaken using NSN's 'Flexi Base Station', which enables faster rollout and helps to reduce power consumption and operational costs. NSN is also expanding Leo's mobile softswitching core network and providing a subscriber data management solution. The Leo network is monitored, managed and optimised by the 'NetAct' network management system. The Finnish vendor is also implementing the latest releases of 'charge@once select' and 'charge@once mediate' software to enable Leo to differentiate itself from the competition through targeted services, and is also responsible for timely network implementation, project management, and maintenance services to ensure fast time-to-market and maintain a high standard of network quality.
'Over the last few years, Namibia has seen rapid growth of its mobile telephone subscriber base, and Leo is credited with driving a significant share of that growth. As is the case with most developing countries however, service providers in Namibia face the twin challenges of increased competition and reduced ARPUs,' said Dirk Lewandowski, head of the customer business team for Nokia Siemens Networks. 'This creates pressure to generate new revenue streams through targeted service offerings. The key is identifying which services will work, delivering them to customers, and ensuring that service providers monetize the opportunity effectively. Our solutions are helping operators across the world address exactly these kinds of needs.'

Aquva Issues Announces Tenders For It's Fibre-Optic Network in Zimbabwe

Aquiva Wireless (Private) Limited, a newly licensed telecoms services provider in Zimbabwe, has invited companies to tender for the construction of long-distance trenches for its nationwide fibre-optic transmission cable project. Aquiva's chief operating officer, Artwell Mataranyika, added that the newcomer is set to roll out its services 'soon';

Windows Live: Make it easier for your friends to see what you're up to on Facebook.

Thursday, November 5, 2009

Safaricom Q3 Profits Up 6.7%

Kenya's leading mobile operator by subscribers Safaricom has reported net profit of KES6.63 billion (USD84.15 million) for the six months ended 30 September 2009, up 6.7% from KES6.21 billion in the same period a year earlier.
Consolidated revenues for the period climbed by 17.8% year-on-year to KES40.6 billion as customers flocked to the firm's M-PESA mobile payment scheme. Operating expenses for the first half of the 2009/10 financial year jumped by 23.8% from KES19.5 billion in 2008 to KES24.15 billion a year later.
The company added over 2.54 million net new mobile customers in the twelve months ended 30 September 2009 with a total subscriber base of 14.51 million.
Meanwhile, interest in Safaricom's M-PESA scheme, which allows consumers to transfer money via their handset, leapt by 93% year-on-year, with nearly eight million registered users by the end of September 2009.

Maroc Telecom Reports Increased Customers Numbers to Hit 21 Million Mark

Maroc Telecom has reported that its consolidated customer base increased by 11.2% year-on-year to 21.4 million at the end of September 2009, whilst group EBITDA for the first nine months of 2009 rose 1.6% to MAD13.3 billion (USD1.7 billion), a margin of 45.3%, on turnover that climbed 1.7% to MAD22.4 billion.
However, according to the Moroccan incumbent's press release, the nine-month operating margin was down 1.8 points on an annual comparable basis, whilst consolidated turnover for the third quarter of 2009 stood at MAD7.8 billion, down 0.6% on a comparable basis compared to 2008.
The fixed line, mobile and broadband group's outlook for full-year 2009 includes sales growth of around 2% and an operating margin of around 45%. As at 30 September 2009 Maroc Telecom consolidates Mauritel, Onatel, Gabon Telecom, Mobisud Belgium and Sotelma (since 1 August 2009). Since 1 June 2009, Mobisud France is no longer consolidated in the group accounts.

Starcomms Profits Are Up 5% for Q3

Nigerian CDMA operator Starcomms has announced its results for the nine months ended 30 September 2009, reporting revenue of NGN25.6 billion (USD171.6 million), up 5% compared to NGN24.3 billion in the same period a year earlier, on the back of increased subscriber growth.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period grew 305% year-on-year to NGN6.74 billion due to higher revenue and operational efficiency. Meanwhile, the company posted a positive operating profit of NGN603.7 million for the first nine months of 2009, compared to a loss of NGN2.42 billion a year earlier.
Unrealised foreign exchange losses contributed to a loss before taxation of NGN1.11 billion, attributed to the decline in value of the naira. At 30 September 2009 Starcomms recorded an active customer base of 2.466 million, up 60% year-on-year.
Maher Qubain, Starcomms' CEO, commented: 'Given the challenging economic climate, rising fuel prices and the fierce level of competition initiated by other CDMA operators in the form of high subsidies on handsets, I am pleased with the company's performance and excellent EBITDA earnings.'

Etisalat Considers Listing On Egypt Bourse

Egyptian mobile network operator Etisalat Misr is mulling the option of a listing on the Egyptian bourse, having spent around EGP8 billion (USD1.46 billion) on the development and deployment of its network infrastructure.
In a statement the operator noted: 'The intention to have an initial public offering (IPO) for Etisalat Misr is there...We do not have a definite time frame for it, but when we feel the time is right, we will proceed.'
The operator became the third player in Egypt's wireless sector in May 2007, having won Egypt's third mobile concession in July 2006 with a bid of EGP16.7 billion.
The cellco has claimed that, since launch, it has spent EGP8 billion on its operations, the bulk of which were for network development, and it says it plans to double this investment in the next three years.