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.

G-Mobile Lays Out Its Plans

Malawi-based start-up cellular operator G-Mobile has announced that it will invest USD150 million in the next three years to become a realistic contender in the country’s GSM market.

CEO Peter Davies also told reporters that the South African-backed company had already injected USD25 million into the network, which is expected to be commercially launched by the end of the year.

On 20 May 2010 G-Mobile, registered as Global Advanced Integrated Networks (GAIN), was given 30 days to pay a USD6.9 million fine issued by regulator MACRA for failing to deploy its wireless network.

However, the cellco took the matter to the High Court in Mzuzu and gained an injunction against the penalty until a judicial review could be carried out. On 12 July Justice Lovemore Chikopa upheld the injunction and set 23 August 2010 as the date for the matter to be heard in court. G-Mobile has partnered Telkom Management Services of South Africa to help it plan and deploy a network and is using ZTE of China as an equipment supplier.

Mr Davies claimed that the newcomer aims to raise the level of quality in Malawi’s mobile services sector as well as bringing down the cost of calls in the country.

Malawi's G-Mobile Starts Building Towers

Malawi’s third mobile operator licensee, G-Mobile, has started deploying infrastructure for a wireless network, reports local newspaper The Nation.

The news follows a move by the country’s regulator, the Malawi Communications Regulatory Authority (Macra), to fine the operator USD6.9 million in May in light of its failure to roll out a network.

G-Mobile's director of administration Harold Myaba said that the company is negotiating the fine with Macra. ‘A lot has been happening behind the scenes that people didn’t see. It’s now starting to show,’ said Myaba.

When G-Mobile does finally launch it will compete against Telekom Networks and Zain, who between them claimed 2.7 million subscribers at the end of March 2010, in a country whose population is more than 14 million.

Wananchi Gears to Roll Out in Nine Countries With Cisco Deal

Kenyan ISP Wananchi Online has signed a contract with US technology solutions firm Cisco to rollout triple-play services across nine countries in East Africa. The deal is supported by East Africa Capital Partners and Viscous Capital, a wholly-owned subsidiary of Cisco.

Wananchi Online, which claims to be the only triple-play operator in East Africa intends to tap into markets in Kenya, Uganda, Tanzania, Rwanda, Burundi, Malawi, Ethiopia, Sudan and Zambia. The contract will see Wananchi Online deploying Cisco's integrated end-to-end network technology solutions - encompassing its ‘Borderless Networks’ and collaboration and data centre virtualization solutions.

Wananchi intends to extend a backhaul and last-mile fibre network across Nairobi and Mombasa in Kenya and Dar es Salaam in Tanzania. It will also build a WiMAX wireless network to provide uncapped internet access in smaller urban centres in Kenya.

The company will supplement its WiMAX and fibre offerings with VSAT services for small and medium businesses, particularly in remote locations in East Africa. Its long-term plan is to take fibre to the smallest towns in the region. East Africa Capital Partners’ Richard Bell has admitted that Wananchi is keen to develop a network in South Africa too, but: ‘South Africa is still a very closed and regulated market. East Africa has leapfrogged ahead of South Africa. If we could get a licence to build a cable network in South Africa, we’d be there in a second.’

Mark Schneider, chairman of the Wananchi Group commented: ‘The entertainment market for both home and corporate customers in Africa as a whole continues to be reshaped in light of technological advancements and new industry partnerships. The Wananchi Group's key objective is to expand our portfolio and enhance our commercial proposition, revenues and reputation. Cisco will help us to continuously deliver the necessary technology enhancements to our infrastructure to serve our ever-growing customer needs and remain at the forefront of delivering new and innovative services to our customers.’

Executives at Wananchi and Cisco said that the cost of international bandwidth in the region is now as cheap as it is anywhere in the world - thanks to the recent launches of EASSY, SEACOM and TEAMS submarine cables – making this type of increased investment possible.

Bharti To Target Rural Nigeria With USD 600 Million Additional Investment

Indian telecoms operator Bharti Airtel has announced plans to invest around USD600 million in expanding its mobile network in Nigeria, The Economic Times reports.

Last month Bharti finalised the acquisition of the African assets of Kuwait-based Zain Group, in a deal valued at USD10.7 billion. The company has taken over Zain’s operations in 15 countries, including Nigeria, Malawi, Burkina Faso, Ghana, Kenya, Sierra Leone and Uganda.

Manoj Kohli, CEO and joint managing director at Bharti, revealed that the firm will invest in rural telephony in Nigeria and introduce a corporate social responsibility programme that includes setting up of schools that would offer free quality education to underprivileged children in rural communities.

‘We want to be a partner in Nigeria's growth and will work with the government to take the telecoms network deep into all corners of the country to touch the common man,’ Kohli noted.

The Indian company expects to introduce the Airtel brand across its new units by October 2010.

Malawi Authority Delays 4th Licence Over wa Mutharika Link

According to a report by local daily Nyasa Times, the board of the Malawi Communications Regulatory Authority (MACRA) is unsure whether to declare Comium Malawi the successful bidder of the country’s fourth mobile licence, as the company has links to President Bingu wa Mutharika’s daughters. ‘If this goes ahead it will be corruption of some sort, Comium Malawi should not get it because it was not the best company,’ a top level MACRA source said.

MACRA launched an international tender for a fourth wireless licence earlier in the year, after two previous attempts to introduce new players in the market failed. The country’s third mobile licence holder, Global Advanced Integrated Networks (GAIN, or G-Mobile), is currently facing the revocation of its permit after repeatedly missing the rollout deadlines stipulated by its licence, while in October 2009 the government suspended two licences – awarded to Lacell of Singapore and the UAE’s Expresso Telecom in April 2009 – following legal concerns that the regulator had issued a pair of concessions, but had only advertised one for sale.

Bharti To Invest USD 100 Million In Niger

Indian telecoms operator Bharti Airtel plans to invest around USD100 million in Niger to improve the reach and quality of its network in the West African nation by the end of 2012, Reuters reports.

Last month Bharti finalised the acquisition of the African assets of Kuwait-based Zain Group, in a deal valued at USD10.7 billion. The company has taken over Zain’s operations in 15 countries, including Malawi, Burkina Faso, Ghana, Kenya, Nigeria, Sierra Leone and Uganda.

The Indian company expects to introduce the Airtel brand across its new units by October 2010. ‘We are going to start our activities in Niger in October and, by 2012, we will invest USD100 million in expanding the network, improving quality and the coverage in the rural areas,’ commented Manoj Kohli, chief executive of the group's international business, adding: ‘We will ensure that telecoms becomes more accessible in terms of price and the quality of the service improves.’

Zain Niger is the country’s largest cellco by subscribers, with 1.58 million users at the end of March 2010 (a market share of 61%), followed by Orange Niger with 563,000 users, Moov Niger (341,000) and SahelCom (105,000).

Tanzania Retains 40pc Stake In Zain

The government of Tanzania is set to receive TZS15.4 billion (USD11.2 million) and to hold on to its 40% stake in fixed and mobile operator Zain Tanzania following the sale of the telco to India’s Bharti Airtel.

Last month the Indians finalised the acquisition of the African assets of Kuwait-based Zain Group, with the deal valued at USD10.7 billion. Under the terms of the deal, first announced in March 2010, Bharti will pay USD8.3 billion upfront, followed by a further cash payment of USD700 million after one year, while it will also take over approximately USD1.7 billion of Zain’s debt.

The Citizen now reports that the country's minister for Higher Education, Science and Technology, Prof Peter Msolla, told the National Assembly that the government is still in talks with Bharti Airtel concerning the sale. In a debate on the country’s budget for the 2010/11 financial year, Msolla said: ‘We met with the company’s officials on 21 June to discuss the sale… We have told them to finalise the evaluation of the assets so that we can determine whether the payment made to us is satisfactory.’ The minister went on to add: ‘Since the government has shares in the company, it is imperative that it be involved in transactions regarding the sale. The shares we hold in the company are assets that ensure our role is not underestimated.’

Bharti has taken over Zain’s operations in 15 countries: Burkina Faso, Chad, Republic of Congo, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The Kuwaiti company’s subsidiaries in Morocco and Sudan were not included in the sale.

Bharti To Invest USD100 In Malawi Expansion Plan

Indian telecoms group Bharti Airtel has said it will spend USD100 million on network expansion in Malawi over the next three years, news agency Reuters reports. Earlier this month Bharti finalised the acquisition of the African assets of Kuwait-based Zain Group, in a deal valued at USD10.7 billion. The company has taken over Zain’s operations in 15 countries, including Malawi, Burkina Faso, Ghana, Kenya, Nigeria, Sierra Leone and Uganda.

The Indian company expects to introduce the Airtel brand across its new units by October 2010.

‘We plan to invest USD100 million in Malawi in the next three years to improve coverage and reach out to Malawi's rural farmers ... and help the country's economy grow,’ chief executive officer of Bharti Africa, Manoj Kohli, told a news conference. Kohli added that Bharti plans to increase the number of its subscribers in Malawi from the current 2.5 million to seven million, although no date has been given for the company to reach its target.

Cel C Joins Zain's One Network

Zain has announced the expansion of its ‘One Network’ platform to South Africa in a strategic partnership with Cell C, the country’s smallest cellco. Over 41 million Zain customers across Zain Africa’s 15 mobile operations may now benefit from ‘One Network’ services when visiting South Africa. The ‘One Network’ borderless mobile phone platform enables pre-paid and post-paid Zain customers when travelling to another 'One Network’ partner country to be treated as a local customer in terms of pricing, while retaining home country service functionalities. Now, in South Africa, Zain customers will be able to make calls, send SMS and access the internet (data) at local rates of the visited country and to receive incoming calls at a minimal charge.

The 15 Zain countries that benefit from this service with Cell C in South Africa are: Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.

Bharti And Zain Sign Sale Deal

Just a few days after the revelation that the board of Kuwait-based telecoms group Zain had approved an offer for its African assets, India’s Bharti Airtel has announced that it has entered into a legally binding agreement for the acquisition. Under the terms of the agreement Bharti will make a cash payment of USD9 billion, of which USD8.3 billion will be paid on closing of the deal; the remaining USD0.7 billion will be due one year after completion. Further, Bharti will assume USD1.7 billion of consolidated debt obligations as part of the deal, making it the second largest ever overseas acquisition by an Indian company, only topped by the USD12.9 billion Tata Steel paid for UK-based Corus Group in 2007.

Marking Bharti’s third attempt to enter the African markets, after two failed attempts to purchase South Africa’s MTN Group, when the deal closes the Indian company’s subscriber base will increase by approximately 42 million, spread across 15 countries: Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Niger, Kenya, Madagascar, Malawi, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. Zain’s Moroccan and Sudanese subsidiaries are, however, not included as part of the deal. Indian billionaire and Bharti’s chairman and founder, Sunil Mittal, said of the development: ‘With this acquisition, Bharti Airtel will be transformed into a truly global telecom company.’

Meanwhile, it was reported yesterday by Reuters that the government of Gabon may oppose the sale of Zain's Gabonese unit to Bharti. The state reportedly issued a statement saying that it disapproves of the transaction and 'reserves the right to take all necessary measures', adding that Zain Gabon has 'not complied' with local telecoms regulations.

Zain Introduces Zap In Ghana

Zain Communications Ghana, part of the Kuwaiti-based Zain Group, has launched its mobile commerce service 'Zap' in Ghana, the firm said in a press release. The new service will enable Ghanaians to pay for goods and services via their mobile phones, and conduct banking services regardless of the type of handset they use.

The parent company said Zain Ghana is the seventh Zain mobile operation to launch 'Zap' following the successful implementation of the service in Kenya, Malawi, Niger, Sierra Leone, Tanzania and Uganda. Zap allows Zain customers to: pay bills and pay for goods and services; and receive and send money to friends and family; top up airtime accounts. In the coming weeks Zap will be expanded to include the sending and receiving of money to bank accounts, cash withdrawals and bank account management.

Zain launched its 3.5G network in Ghana in December 2008, claiming to have invested more than USD420 million in the rapid rollout of high speed services - sub-Saharan Africa's first such network outside South Africa. The cellco says it began signing up customers to the new service a month before the network went live, but has not disclosed actual subscriber figures.

The company has come a long way since 14 December 2007 when the government of Ghana finally completed the agreement to allow Netherlands-based Celtel International, then the holding group of Kuwaiti telecoms group Zain (formerly MTC Group's) African interests, to take control of the second national operator (SNO) WESTEL, which had received a licence to operate GSM-based mobile services in November 2006.

Malawi Threatens to Withdraw G-Mobiles Licence

South Africa's Beryl Telecoms has reportedly engaged Telkom SA to take over the management of the Malawi's delayed 3rd mobile network operator, G-Mobile. The operator itself is under threat of losing its license if it doesn't launch its network by the 12th April.

Beryl Capital and Telecoms was contracted last year to manage the roll out of its network, which was due to have been completed at the end of last year. When G-Mobile was awarded its license last April, it said that it was expected to invest US$40 million in the venture within the first five years of operations.

G-Mobile conceded that the new deadline is very tight, raising fears that the company could dissolve even before rolling out its services.

According to statistics from the Mobile World analysts, the country ended last year with just under 2.6 million customers, which represents a population penetration level of around 18%. The country has two active mobile networks, Zain and Telecom Networks Malawi.

Zain Begins Lay-offs In Nigeria, Uganda

The Zain Group - a mobile communications firm with operations in Africa and the Middle East – has started laying off at least 2,000 employees from all its subsidiaries, with its entities in Nigeria and Uganda announcing the lay-offs of 300 and 27 employess, respectively.

This follows the Group’s decision to sack the lot as it strives to position itself in the premier league of world’s top 10 telecommunications firms.

The decision emerged at a strategic meeting with senior Zain executives from all 22 African and Middle East operations, in Bahrain last week.

Zain’s new wave of layoffs will particularly affect its head offices and operations structures across all markets. Until Monday, the Group directly employed 15,500 workers. The reduction of its workforce by 2,000 will represent a loss of 13 percent in its human resource departments.

Zain Nigeria in a statement announced it was laying off 300 of its staff, an action aimed at aligning its business model with the Zain group's growth strategy. Mr Yesse Oenga, the managing director Zain Uganda, said 27 workers will be sacked from their jobs in the country.

In March, 141 staff at Zain Kenya were laid off. Other markets that have already sacked workers include; Iraq, Jordan, Kuwait, Malawi and Sierra Leone.

Zain Group Chief Executive Officer Dr Saad Al Barrak who announced the layoffs – the single largest in Africa so far, said the layoffs are part of the firm’s Drive2011 – a new programme aimed at propelling the company towards its 2011 target with 150 million subscribers and $6 billion in revenue.

In Uganda, the termination of workers to re-align Zain’s operations begun yesterday, according to Mr Oenga. Zain’s staff downsizing process forms part of its new drive to improve service delivery to its customers in all operations, according to Mr Oenga. 

Specifically, Zain Nigeria said it was joining operations across Africa and the Middle East to implement the new business model, Drive2011, which is part of Zai n 's drive to become a top 10 global mobile operator by 2011 with 150 million cust o mers and earnings before interest, taxes, depreciation and amortisation of US$6 b illion.

Zain has invested more than US$12 billion in Africa since 2005, with a plan to m ake further investments of up to US$2 billion this year.

Zain to Cut Down on 2,000 Jobs, Plans to Outsource More Functions

Zain has announced that it is cutting some 2,000 jobs as it streamlines its operations and increases the outsourcing some back office/non-core functions to strategic partners. The project, Drive2011 is expected to improve Zain’s operating margin by 5% within 12 months.

The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 - a 13% reduction across the board. Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone have already begun the process.

“Drive2011 is a natural consequence of Zain’s evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximizing efficiency,” declared Zain Group CEO Dr Saad Al Barrak. “We will create genuine market differentiation through our services and deliver on our Zain brand promise of ‘A wonderful world’. This will be achieved through a combination of managed outsourcing, centralization and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies.”

In a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US$6 billion EBITDA, Dr Al Barrak also announced several senior management changes at both Group and country operation level.

Malawi Licences Two More Phone Operators

Malawi has awarded two more mobile operating licences to consortia of local and international firms. The Malawi Communications Regulatory Authority (Macra) chairman Thengo Maloya said in a statement that La Cell Private and Expresso Telecom Group have been awarded the latest licences, Reuters reported.

The southern African country already has three operators with Zain leading the pack with over 1 million subscribers, followed by Telekom Networks Malawi, partly owned by the Malawian government.

Maloya said the additional operators were meant to help bring down the cost of doing business in Malawi and to improve the quality of telecommunications services. Maloya said the regulator was not happy with the quality of service from the current operators, so the regulator is looking to create a more competitive environment. The regulator also announced new penalties of USD 100,000 per annum for firms that fail to roll out services as promised, as well as a USD 50,000 fine for poor service.