Vodacom Targeting Angola, Uganda, Ethiopia

South Africa-based mobile group Vodacom has confirmed that it is ready to expand its operational footprint across Africa, and is on the hunt for small-scale acquisitions. Vodacom, which is majority owned by the UK’s Vodafone Group, currently operates in five countries in sub-Saharan Africa, and chief executive Pieter Uys told Dow Jones Newswires that the company is looking to make a series of acquisitions in the USD100 million range.

Uys noted that Vodacom will focus on countries that offer a stable political environment, have densely populated cities and offer room for growth. As such, the CEO pinpointed Angola, Ethiopia and Uganda as likely targets. Announcing its FY11 results earlier this week, Vodacom noted that the financial year ended March was the first time that its operations outside South Africa have contributed positive cash flow. As a result, Uys told Dow Jones: ‘We feel more comfortable that we have the recipe to be successful outside South Africa’.


In March 2012 Sifiso Dabengwa, CEO of Vodacom’s chief rival MTN Group confirmed that his company was interested in lining up so-called ‘bolt-on’ deals in new African markets, once again naming Angola and Ethiopia. In the former, a third mobile licence has been expected for some time, with state-run incumbent Angola Telecom keen to secure an international partner to assist with its entrance to the sector. Meanwhile, Ethiopia is one of the few countries in Africa still operating a monopoly in the wireless sector, with state-run Ethio Telecom the sole licensee.

Elsewhere, Uganda is overcrowded by comparison, boasting six active wireless operators, with another, Sure Telecom Uganda, waiting in the wings. Of the country’s cellcos, Uganda Telecom Ltd and Warid Telecom Uganda are plausible targets, with the ownership of both companies coming under scrutiny in recent years.

Airtel Enters Rwanda Market

Indian telecoms group Bharti Airtel has announced it has secured a licence to provide 2G and 3G cellular services in Rwanda, The New Times reports. 

The company plans to invest over USD100 million over the next three years, including USD30 million for the purchase of the operating licence. 

It aims to bring ‘affordable services and innovative products’ to the market, and plans to expand its wireless broadband network to all major towns across the country.

 In June 2010 Bharti Airtel acquired the African assets of Kuwait’s Zain Group, in a deal valued at USD10.7 billion. The company took over Zain’s operations in 15 countries, including Malawi, Burkina Faso, Ghana, Kenya, Nigeria, Sierra Leone and Uganda.

Bharti will join two other mobile operators in the market: South Africa-based MTN Rwanda, which had a total of 2.794 million mobile subscribers at the end of June 2011; and Millicom Rwanda (Tigo), which is majority-owned by Luxembourg-based Millicom International Cellular and had a subscriber base of over 812,000 at the same date. A third operator, Rwandatel, had its mobile licence revoked in April 2011, after the company failed to meet licence obligations, such as coverage, quality of service and planned investment targets. Rwandatel is 80% owned by Libyan government investment vehicle LAP Green Networks, although telecoms regulator RURA said the decision to cancel its mobile licence had nothing to do with enforcing a United Nations (UN) resolution to impose sanctions on Libya, including the freezing of its assets, following unrest in the North African nation.

Airtel Uganda Increases Tariffs Amid Rising Inflation

Airtel yesterday became the second communications company in Uganda to up call tariffs with new rates starting Monday next week.

The increase has been occasioned by the higher costs of doing business in Uganda, according to Mr V.G. Somasekhar, the managing director of Airtel Uganda.

Customers will pay Shs4 per second, an increase from Shs3 per second or Shs240 per minute instead of Shs180 per minute.

The new rates will apply to all calls on the Airtel network and other networks, according to a statement from the company.

“The telecom business is trapped in a cycle of rising business costs, which is significantly threatening the level of service delivery in the industry,” Mr Somasekhar said yesterday. “The upward adjustment in tariffs will ensure the company continues to meet its operational costs and maintain its unequalled level of service delivery in the market.”

Airtel’s announcement came just a day after MTN Uganda doubled its calling tariffs from Shs2 per second to Shs4 per second, also citing the increasing cost of doing business.

The economy is struggling with the depreciating Shilling, the rising cost of fuel and persistent power blackouts.  This week, inflation hit a record 20% mark.

Airtel To Terminate UTL Calls

Airtel Uganda has announced that starting 5th September 2011 its subscribers will not be able to receive calls from or make calls to Uganda Telecom (UTL) lines.

In a statement published on Wednesday Airtel states that the decision follows the expiry on 15th August 2011 of the interconnection agreement between itself and UTL.

Earlier reports had indicated that UTL owes Airtel over 8 billion shillings in interconnection fees.

UTL has been battling a court case in which MTN Uganda is demanding over 20 billion Uganda shillings. Last week a court in Kampala ruled in favour of MTN but UTL has appealed against the decision .

69% of UTL is owned by the Libyan government through its investment vehicle, Libyan Africa Portfolio (LAP), with the remaining 31% owned by the Ugandan government.

UN sanctions in March required the freezing of Libya’s assets for the duration of its on-going civil war, but in order to prevent the loss of jobs, the Ugandan government took over complete control of the company.

Early this year Uganda’s Media Owners Association reportedly ceased any advertising for UTL, citing unpaid fees of 3 billion Uganda shillings.

Mascom Unaware of MTN Take Over Plans

Botswana’s largest mobile operator by subscribers, Mascom Wireless, has denied having any knowledge of alleged plans by South African telecoms group MTN to fully acquire the company. 


An industry insider told Botswana newspaper Gazette Business that takeover discussions between the two parties were at an advanced stage, with a full takeover and rebranding likely to take place in the next two years. 


MTN already indirectly holds a 53% stake in Mascom.


 Responding to the claims, Mascom’s communications and public relations manager, Tebogo Lebotse said in a written statement that ‘Mascom can, however, confirm it is not aware of any plans or developments of a takeover and therefore cannot comment on the consequent impact on the operational structure of Mascom.’

Libyan Owned Uganda Telecom in Finacial Crisis

THE financial sustainability of Uganda Telecom (utl) remains uncertain following several claims of unpaid dues in billions owed to the firm’s partners and service providers. 

Among the companies seeking payment is MTN, which for the second time this year, has sued utl claiming unpaid sh9.3b accrued from interconnection charges, indicating a further deepening rift and uncertainty in the telecom industry. 

According to sources, the Uganda Communications Commission (UCC) is also demanding about sh6b from utl over non remitted contributions to the rural communication development funds. 

All telecom operators are required to remit 1% of their gross revenue to the commission for the fund. 

Sources revealed that a fortnight ago, the Uganda Media Owners Association also suspended any form of advertising from utl because of about sh3b unpaid dues accruing from advertising. 

The association comprises major media houses, including Monitor Publications, Vision Group, NTV, WBS, UBC, Capital FM, Simba and Sanyu FM. 

Airtel Uganda public relations officer Joseph Kanyamunyu said utl also owes them about sh8b from “interconnect and related charges.” 

MTN is also demanding another sh744m in interests accrued from May 31, 2011. 

“The actions of the defendant amount to breach of the interconnection agreement between the plaintiff and the defendant,” read the suit. 

“They have continuously disputed figures, but in this case they signed and acknowledged the debt, but we are half way the year and they have still failed to pay,” said an MTN official. 

The MTN suit filed on June 15 says the interconnect fees are for the period from January 2010 to December 2010. 

But utl chief Donald Nyakairu said there was nothing new in the law suit. “The only difference is in the figures, they are just causing anxiety within the public,” said Nyakairu. The suit follows an earlier one, filed about three months ago, over MTN’s claims of unpaid sh20b in interconnection charges that the telecom giant says was accumulated over a three-year period. 

The interconnection fee is the amount an operator pays another for routing traffic through their networks. 

David Ogong, the UCC director of competition and corporate affairs, said they had been mediating over this issue and the two players agreed to keep their networks connected until June 26, 2011. “We are advising the Government that we could have a big problem in our hands, we have tried our best to see that utl pays,” said Ogong. 

The Libyan government owns about 69% of utl under its investment arm, Libya Africa Investment Portfolio. The Government owns the rest. But a few months ago, government took over full control of utl partly complying with UN sanctions against Libyan assets in the wake of the political turmoil in the North African state.

Essar Denies It Is Selling Off Yu

Indian conglomerate the Essar Group has denied international media reports suggesting that it is looking to sell off its 70% stake in Kenyan mobile operator Essar Telecom Kenya (ETK), which operates under the ‘Yu’ brand.

The Essar Group hit back at the claims – which originated with India’s Economic Times earlier this week – commenting: ‘Essar remains committed to the African market and is satisfied with its operations in Kenya. It is not evaluating any sell off options’.

The original report coincided with the Essar Group’s admission that it has pulled out of a long-standing agreement to acquire telecoms assets in Uganda and the Republic of Congo. An unnamed source, with knowledge of the matter, suggested that the Indian firm no longer viewed telecoms as a core strategic interest.

Speculation was rife that South African telecoms giant MTN – a company with a long-held interest in securing a foothold the Kenyan wireless sector – was interested in buying out ETK. MTN is now believed to have distanced itself from the rumours.

WACS Arrives Near Cape Town

Submarine communications cable the West Africa Cable System (WACS) has landed in Yzerfontein, near Cape Town. The 14,000km cable, which is expected to dock at 14 different landing points along the Western coast of Africa, before linking to the Canary Islands, Portugal and the UK, is set to commence commercial service in 1Q12. The total capacity of the system is 5.12Tbps, and at least 500Gbps will be lit at launch.

Investors in the WACS cable include South African telcos MTN, Vodacom, Telkom South Africa, Broadband Infraco and Neotel.


Angus Hay, head of strategic business development at Neotel, commented: ‘This is the dawn of a new era in the South African telecommunications industry. 


Since the launch of SEACOM and later EASSy, international bandwidth to South Africa has increased. The landing of WACS sets Neotel ahead of its competitors, as it is the only telecommunications operator that has direct access to all five undersea cables landing in South Africa: WACS, SEACOM, EASSy, SAT-3 and SAFE. 


For Neotel this means that our customers are highly unlikely to experience downtime since the traffic can be moved from one cable to another in case of any cable failure. The level of redundancy, reliability and security will now increase’.

Uganda's Opposition Calls for MTN Boycott

Uganda's main opposition party has started a campaign calling upon its supporters to boycott the services of the country's largest mobile telecommunications company, MTN Uganda Ltd. blaming it for disrupting the opposition poll tally center during the February 18 presidential polls.

The opposition blames MTN Uganda, a unit of Johannesburg-listed MTN Group Ltd. of intentionally jamming the telephone lines that the opposition Forum for Democratic Change (FDC) had bought for its polling agents to transmit results to its tally center on February 18, according to Wafula Oguttu, the FDC spokesman.

"They sabotaged our tally center and we could not tally our own results," he said."MTN is involving itself in Ugandan politics."

According to Oguttu, the FDC has started a nationwide campaign, calling its supporters to discard MTN sim cards. The opposition also accuses the company of giving campaign funds and free airtime to the ruling National Resistance Movement party.

An MTN spokeswoman denied the opposition allegations and said the company is considering legal action after party leaders publicly destroyed and burned MTN sim cards at a press conference on Friday last week.

"We have never received a formal complaint about the alleged jamming of the lines from the FDC," she said.

MTN has at least 6.5 million cell phone subscribers in Uganda

Veteran opposition leader, Kizza Besigye had set up a parallel tally center to tally his own votes saying he had no faith in the ruling party-appointed electoral body, however, the center was sabotaged, before being invaded by security forces on February 18.

The FDC claimed to have only tallied results from around 30% of the polling stations, showing Besigye in the lead with at least 47% of the vote, compared with President Yoweri Museveni's 46% by the time the center was sabotaged.

The Electoral Commission later announced Museveni as the winner with 68% of the vote, but the polls were marred by a number of irregularities, according to observers.

Uganda Takes Over Libyan-Owned UTL

The Ugandan government has taken over management of troubled Libyan-owned telecommunications company, Uganda Telecom Ltd. (UTL), Uganda's minister of information and communications technology said Tuesday.

As a regulator and a minority shareholder in Uganda Telcom, the government has decided to take over management of the company to safeguard its interests and the interests of its customers, Aggrey Awori said in a telephone interview with Dow Jones Newswires.

"We cannot sit and watch as things get out of hand," he said.

The Libyan Arab Portfolio, or LAP Green Network, holds a controlling stake in Uganda Telecom.

According to Awori, the move is part of government's decision to implement the United Nations-initiated sanctions against Libya. Last week, the Ugandan central bank took over Libya-owned Tropical African Bank.

Uganda Telecom has been struggling to meet payment obligations to other Ugandan telecom companies arising from interconnection fees. A company spokesman couldn't return calls seeking comment immediately.

Earlier this month, MTN Uganda--a unit of Johannesburg-listed MTN Group Ltd. threatened to block calls to Uganda Telecom over a 20 billion Ugandan shillings ($8.3 million) unpaid interconnection fees that have accumulated over a three-year period.

Airtel Uganda Ltd. also claims that Uganda Telecom owes it UGX8 billion in interconnection fees and had also threatened to terminate calls to the network. Airtel Uganda Ltd. is a unit of India-based Bharti Airtel Ltd.

However, government has prevailed upon the two companies from blocking calls to Uganda Telecom, to avoid inconveniencing the public. People familiar with the situation say that the two companies were now planning to attach some of the properties belonging to Uganda Telecom.

Attachment is a legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.

Uganda's foreign affairs minister announced last week that government would freeze Libyan assets worth $375 million; other Libyan-owned companies that have been affected by the sanctions include Tamoil East Africa, National & Housing Construction Company, Laico Lake Victoria Hotel and Libya Oil. 

-Dow Jones Newswires

Al-Lu Chosen For MTN Nigeria DSL Project

Alcatel-Lucent has announced that it has been selected by MTN Nigeria, a subsidiary of South African telecoms operator MTN, for the transformation of the operator’s DSL access and aggregation network.

The vendor’s solution will enable MTN Nigeria to cost-effectively transform its TDM-based transport network into an all-IP powered network, helping the company to realise a simplified, lower cost, highly scalable infrastructure that will grow alongside the firm. 

Alcatel-Lucent’s IP/MPLS-based solution will also enable the operator to generate new revenue streams by leveraging broadband IP to deliver video-rich content and multimedia data services. 

The IP portfolio will allow MTN Nigeria to deliver scalable, evolvable, cost-efficient and fully-managed IP-based transport, allowing the leading operator to reduce operating expenditures and quickly deploy advanced, revenue-generating services. 

‘Since its inception, MTN Nigeria has invested in cutting-edge technology in order to deliver world-class products and services to our customers, stated Ahmad Farroukh, CEO of MTN Nigeria, adding: ‘We are pleased to partner with Alcatel-Lucent to deliver a solution that will improve customer experience.’

MTN Nigeria is the country’s largest mobile operator, with a total of 38.7 million subscribers at 31 December 2010, equating to a market share of 44.3%.

TelOne Gets GSM Licence

Zimbabwe’s Postal & Telecommunications Regulatory Authority (POTRAZ) has issued state-owned fixed line telco TelOne with the country’s fourth GSM mobile service provider licence, according to a report on AllAfrica.com.

POTRAZ deputy director-general Alfred Marisa revealed that the watchdog granted TelOne the concession late last year in response to a request for GSM frequencies from the telco when its 20-year telecoms licence was due to expire. The regulator added that it had not given TelOne fixed timelines to roll out mobile services, in light of its financially challenged status.

The state already owns a GSM operator, NetOne, the smallest of the country's three cellcos behind Econet and Telecel. NetOne is currently attempting to boost its flagging fortunes under a state-blessed strategy to find a foreign private sector investment partner, with South Africa's MTN the leading candidate. TelOne has also previously been reported to be in partnership talks with prospective foreign partners, chiefly Telkom South Africa, according to TeleGeography's GlobalComms Database, and the addition of a GSM licence could increase the incumbent's attractiveness as an investment.n the matter.

MTN To Cut Links With Uganda Telecom Over Three-Year Debt

A three year dispute over inter-connectivity fees has culminated in MTN Uganda announcing that it is severing interconnectivity with its industry rival Uganda Telecom (UTL), the Daily Monitor reports.

“MTN customers will therefore be unable to place direct calls to UTL subscribers, and vice-versa,” MTN said in a notice on Wednesday. “This action has been necessitated by UTL continuously defaulting on the settlement of its interconnect payments, amounting to about Shs20 billion accumulated over a period of three years,” the statement added.


In an earlier separate interview, UTL company Secretary Donald Nyakairu said the company was in the process of settling MTN’s dues. This, however, seems not to have materialised.

The stand-off comes after a row between the two companies, stemming from 2006 over the unpaid interconnectivity fees ended in UTL failing to pay MTN. UTL has also been in dispute with Warid Telecom and Airtel Uganda over unpaid interconnectivity fees all totalling to over Shs12 billion.

The Uganda Communications Commission (UCC) is also demanding Shs9 billion in unpaid yearly fees from UTL although its Interim Executive Director Godfrey Mutabazi declined to elaborate on the matter.  “Interconnectivity issues are between telecom subscribers,” Mr Mutabazi said yesterday. “We only encouraged dialogue but we do not interfere.” Yesterday, MTN said UTL had unjustifiably and persistently refused to honour their business obligation and attempts to resolve the matter failed.

MTN last year took UTL to court and secured an order to pay the money in dispute.  Court documents obtained by the Daily Monitor indicated that between November 2008 and 2009, MTN demanded Shs7 billion in outstanding interconnectivity fees.

In February 2008, it issued UTL with another invoice demanding another payment of Shs6 billion, also for interconnection fees for March 2007 to December 2007.  UTL paid Shs3 billion but said it would not pay the balance of Shs3 billion which it said was not as a result of domestic traffic which attracts interconnectivity fees but was international traffic with Sudan.

In 2006, Ms GEMTEL a telecom operator in South Sudan requested Uganda to facilitate its calling code. On May 10, 2006, Works Minister John Nasasira wrote to UTL approving a request to extend its network coverage to South Sudan. UTL notified Gemtel that it will grant it usage of code +256 477.  +256 is the official Uganda country code.

On June 22, 2006 UTL informed MTN that it had set up interconnection with GEMTEL adding that it had been assigned +256477 which is a Ugandan calling code. MTN says this is the source of the accumulated fees.

MTN Fight With Swazi Regulator Over 3G Licence Persits

According to the Swazi Observer, MTN Swaziland CEO Ambrose Dlamini has assured the cellco's customers that MTN is poised to introduce its commercial 3G network 'soon'.


The Swaziland Post and Telecommunications Corporation (SPTC) declined to grant MTN Swaziland, the country’s sole mobile network operator, a 3G licence. MTN had hoped to received the concession at the end of 2010.


MTN was believed to have carried out a month long pilot of four UMTS base stations last year. It was then granted a temporary 3G licence to cover several events including the Common Market for Eastern & Southern Africa (COMESA) summit, held last August.


The permit was valid from 16 August to 30 September, with 3G services allowed to be offered to post-paid customers only. 


Dlamini commented: 'Swazi MTN is 3G ready, all we have to do is to press a button and make the service available to the MTN network users. We are ready, what is outstanding at the moment is to be granted the appropriate licence by the regulator. As soon as we get the licence, we advise that our customers will experience an immense improvement on the data speeds and all other benefits which will come with the 3G technology'.

However, according to the Times of Swaziland, the SPTC has broken its silence regarding the decision - claiming that MTN demanded that the regulator grant it a an 'exclusive' 3G licence in a secret meeting dated 24 January.


Chairman of the SPTC board of directors Phanuel Vilakati commented: 'To demand that MTN Swaziland be granted licences without applying for them in terms of the [Swaziland Posts and Telecommunications Corporation Act of 1983] would not only be engaging in wrongful conduct but would undermine the purpose of delegating power to the Director of Communications'. 


Vilakati added that the granting of a self provisioning international gateway licence is a matter of government policy, as it concerns issues of national security. He indicated that no 3G licence will be issued until the government has addressed MTN's demands.

In a retaliatory gesture, MTN Swaziland has now filed a court application to have SPTC managing director Elijah Zwane arrested for continuing to connect new customers to MTN’s new fixed-wireless network, following the termination of the two parties' shareholder agreement; until recently the SPTC held a 41% stake in MTN Swaziland on behalf of the government. 


MTN has alleged that the SPTC is unlawfully connecting customers to its network. SPTC's affidavit stated: 'The first respondent (SPTC) admits that it has been operating as a fixed line operator, in addition to other telecommunication services which it is authorised to provide in terms of the [Swaziland Posts and Telecommunications Corporation Act of 1983]. It is incorrect to limit the respondent's interest in mobile telephone services to the joint venture (JV) with the second applicant (MTN)'.

Telecom Namibia Ready to Join WACS

Telecom Namibia says it is ‘ready’ to connect the country to the West African Cable System (WACS), a consortium high speed submarine system linking Africa to Europe, which it hopes will lead to higher-bandwidth, cheaper data and voice services for all end-users. The USD600 million fibre-optic cable has reached the shores of Namibia, whilst Telecom has already deployed infrastructure to link its landing station at Swakopmund to its domestic network and expects that commercial services could be launched by the second quarter of this year, reports local newspaper New Era. The project will give Namibia its first direct access to global submarine cable networks.

The WACS consortium consists of twelve companies: Angola Cables, Broadband Infraco, Cable & Wireless, Congo Telecom, MTN, Office Congolais des Postes et Telecommunications, Portugal Telecom/Cabo Verde Telecom, Tata Communications/Neotel, Telecom Namibia, Telkom SA, Togo Telecom and Vodacom. The main contractor is Alcatel-Lucent.

Rwanda Government MTN Shares to Be Listed

The government of Rwanda plans to list its shareholding in MTN Rwanda on the newly launched Rwanda Stock Exchange (RSE) by the end of this year, local news paper Business Times reports.


The state holds a 10% stake in the telecoms operator, which is 55%-owned by South African company MTN Group, with Tristar Investments owning the remaining 35% stake. At the launch of the RSE earlier this week, Finance Minister John Rwangombwa said: ‘We are in the process of discussing with MTN South Africa; we have 10% of government shares and there is also another investor [Tristar] that wants to divest from this company, so we might have 45% shares from MTN coming on the market soon this year.’


The move forms part of the government's broader strategy to privatise companies in to facilitate development of capital markets and increase alternative sources of long-term capital for businesses.

FT Continues With Plans To Purchase Korek

France Telecom (FT) is proceeding with the purchase of a stake in Iraqi cellco Korek Telecom, after it was chosen as a preferred bidder over South Africa’s MTN, according to a report by Middle East business intelligence service MEED.

The GSM operator, based in the autonomous Iraqi Kurdistan region, won a nationwide licence in 2007 and has proceeded to branch out from its northern homeland to cover central and southern regions of Iraq. Korek is Iraq’s third largest cellco by subscribers.

The MEED report adds that Korek, with a customer base approaching three million in a market with room for growth, is an attractive asset for the French group, which recently expanded in the Middle East and North African (MENA) region by purchasing a 40% stake in Morocco’s Meditel.

FT is looking to increase its territorial presence further via more acquisitions, with the overall aims of doubling its revenues and reaching 300 million subscribers worldwide. The deal, which is yet to be finalised, would also assist Korek’s further expansion plans with the investment of a global player, whilst also representing a cheaper option for FT than bidding for a new licence in Iraq and building a network from scratch.

Meanwhile, FT has recently established research and development labs in Amman and Cairo to create services and products specific to the Middle East market.


Providing a cautionary note, UAE-based Etisalat previously failed to negotiate a stake purchase in Korek, saying that the Iraqi firm demanded ‘too much for too little’ in talks with the Abu Dhabi operator more than two years ago.

MTN Announces Increase in Subscriber Base

South Africa-based telcoms group MTN has announced that its consolidated subscriber base increased to 134.47 million as at 30 September 2010, up 4% from the 129.21 million reported at the end of June. A company statement credited the increase to ‘high quality networks, attractive value propositions and efficient distribution’.

The South and East African region, which contributes 22% of the group’s customers, increased its subscriber base by 4.9% to 30.08 million for the quarter - mainly driven by growth in its domestic market. In South Africa, the customer base rose 3.9% to 17.77 million, helped by the addition of 616,000 pre-paid users and its MTN Zone offer, which allows MTN subscribers access to a discounted call rate if they are in an area experiencing a low volume of MTN traffic. ARPU in South Africa remained stable at ZAR152 (USD21.6).

The West and Central African region, which contributes 46% of the group’s subscribers increased its customer base by 3.4% in the three month period to 61.38 million. Nigeria – MTN’s largest single market and that which contributes 60% of the region’s subscriber base - grew its base 5.1% to 36.84 million. MTN credits the increase to ‘superior network quality and a successful distribution framework’. Elsewhere in the region, Ghana’s customer base declined from 8.72 million to 8.46 million due to the introduction of mandatory SIM registration on 1 July 2010.

The Middle East and North African region, which accounts for the remaining 32% of MTN’s consolidated subscriber base, increased its numbers by 4.1% to 43.01 million. MTN says that the growth within the region was mainly due to its Iranian operation, which contributes 66% of the region’s subscribers. MTN Irancell increased its users by 5.6% to 28.49 million. Elsewhere in the region, Syria benefited from improved brand awareness, increasing its subscriber base to 4.72 million, a rise of 6.8%.

MTN Rebrands UUNet As It Takes On Kenya Market

South African telecoms giant MTN has formally announced its presence in the Kenyan broadband market, two years after acquiring a 60% stake in ailing corporate operator UUNet.

The re-branding of UUNet to MTN Business Kenya looks set to renew rivalry in the corporate data market, a marketplace in which UUNet’s fortunes have declined drastically in recent years.

Internet service providers AccessKenya and Kenya Data Networks have absorbed much of UUNet’s corporate business since 2008, whilst wireless operators Telkom Kenya and Safaricom have both embraced the relatively untapped residential broadband market in a bid to offset declining wireless revenues.

Tom Omariba, managing director of MTN Business Kenya commented: ‘An array of key structures and network transitions has been implemented to deliver standardised service and seamless integration for customers culminating in the official name-change, MTN Business Kenya’.

Dismissing speculation that MTN would try to insinuate itself into the residential market, Omariba continued: ‘You cannot be everything to all customers. We have to look at our strengths and choose which area we can serve. If you try and serve both markets, you will suffer ... that is the experience elsewhere’. MTN Business Kenya’s strategy is expected to involve a substantial cash injection, as well as providing the necessary technical expertise to strengthen its data business and grow its meagre corporate subscriber base, which MTN reported has dwindled to just 700 customers.

Zim Not Selling Cellco's Yet, Only Restructuring

Zimbabwean newspaper Sunday News reported that four state-owned enterprises have been scheduled for restructuring before the end of this year, although incumbent PSTN operator TelOne is not on the list.

However, State Enterprises Minister Gorden Moyo said progress had also been made towards restructuring at six other companies – including TelOne, which has been earmarked for part-privatisation – although in these cases it was less likely that results would be achieved by year-end.

Also on the secondary list of six – which includes the likes of Air Zimbabwe and National Railways of Zimbabwe – is state-owned GSM mobile operator NetOne.

In February 2010 the government confirmed MTN South Africa was among ‘several’ foreign companies that had expressed interest in buying a stake in NetOne; in late 2009 MTN and NetOne signed a non-disclosure agreement on their ongoing negotiations. Telkom South Africa, meanwhile, is reportedly eyeing a stake in TelOne, which has also confirmed negotiating with a foreign suitor under a secrecy pact.

Over 70 state holdings have been earmarked for restructuring, under a Corporate Governance Framework which seeks among other things to compel the firms to submit audited financial statements and hold annual general meetings.

Early this year, Moyo instructed the parastatals to disclose audited results by the end of October, and most of the organisations’ financial reports are now reportedly with the Auditor-General.

‘The main problem is that some of the parastatals last presented their results more than five years [ago] and it is not easy to reconcile the books in a short time. But I understand a lot of the companies have now presented their results and the Auditor-General’s office has hired an independent auditing company to help look into the results,’ explained the minister.