Kenya Could Reduce 3G Licence Cost

Kenya's government has hinted that it might lower the cost of 3G licenses, as has been called for by the mobile networks. Currently, only Safaricom holds a 3G license after paying Sh1.9 billion (US$25 million) in 2007.

Information Permanent Secretary Dr Bitange Ndemo told Capital FM, "We will do everything possible to ensure that we have created the necessary competitive environment, even if it means that we revise the cost to reasonable levels,". He added that the decision should be made in the next three weeks.

The remaining operators have argued in the past that this fee is too high and campaigned for a reduction - which was opposed by Safaricom unless it receives a refund of the difference.

"If we decide that we are lowering, we would have some mechanisms to ensure that [Safaricom does not lose its money]," he assured.

Of the remaining operators, only Zain has currently applied for a license, and is planning a network launch in the first half of this year. Based on figures from the Mobile World analysts, Safaricom had 13.8 million subscribers at the end of June, compared to 2.4 million for Zain.

LAP Aquires 80% Stake in Sudan's Gemtel

Libyan government investment vehicle Libyan African Investments Portfolio (LAP) has acquired an 80% stake in Southern Sudanese telecoms operator Gemtel via its telecoms arm, LAP Green Networks, Ugandan news source The New Vision reports.

Gemtel was licensed by the Government of Southern Sudan (GoSS) in 1996 and launched commercial GSM services shortly after in the cities of Juba and Yei. By mid-2009 the company had expanded its footprint to cover Waw, Torit, Bor and Rumbek.

Gemtel uses the dialling code of Uganda (+256), thanks to an interconnection agreement with Uganda Telecom (UTL) signed in September 2006, which allows the cellco to use the gateway for USD50,000 in interconnection fees per month.

LAP Green already operates in East Africa through its 80% shareholding in Rwandan fixed line and mobile telephony operator Rwandatel and 69% stake in UTL. The company also holds an interest in Sahelcom and Sonitel of Niger, and controls Oricel Green, a mobile operator in Cote d’Ivoire.

According to a statement from LAP Green, the firm has been shortlisted to buy a 75% stake in Zambia’s sole fixed line operator, Zambia Telecommunications Company (Zamtel).

Vodacom SA to Reduce Interconnection Fees

Vodacom South Africa says that it will reduce its interconnection rates as per an agreement last November. There is an ongoing dispute regarding the regulatory powers to set interconnection rates, but the company said that it would push ahead with the earlier announced reductions.

Zain Denies Reports on Sale of African Networks

­Kuwait's Zain has refuted local media reports that it had been contacted regarding a sale of its African assets. The Al Anbaa newspaper had reported that Zain was in talks with Vivendi, France Telecom and Vodafone offer a possible sale of the former Celtel networks.

In a statement to the stock exchange, Zain said "There are no current offers and the company will inform the bourse's administration with any new information that may come up regarding this issue,"

The paper, citing unnamed sources said that Zain had been in talks with the other operators for the past couple of months and is seeking US$11-US$12 billion for the networks.

Vivendi was in talks last year to buy the African networks, for a reported US$12 billion - although those talks then broke down. At the time it was suggested that the sale could have been an all-share based transaction, with Zain taking 20 percent of Vivendi, in exchange for 10 percent of Zain Africa.

For its part, Vodafone recently increased its holdings in South Africa based Vodacom to 65%. A merger of the former Celtel, Vodafone and Vodacom assets across Africa could lead to much needed consolidation in several markets.

Celtel was founded by Sudanese-born Mo Ibrahim in 1998 and sold to Kuwiat's MTC (now Zain) in April 2005 for US$3.4 billion.

Vodafone Egypt Introduces HSPA Modems

Vodafone Egypt is to start selling mobile data modems capable of supporting HSPA download speeds of up to 28.8Mbps to the consumer market. It has already started offering the modems for sale to corporate customers.

Helios Nigeria Obtains $150 Million IFC Funding for Development

IFC, a member of the World Bank Group, is extending US $150 million in syndicated loans to support Helios Towers Nigeria as part of an overall $250 million initiative to improve access to telecommunications in Nigeria. The initiative seeks to help Helios Towers Nigeria, or HTN, increase its network to 2,000 shared tower communication sites nationwide.

The IFC's earlier $100 million investment in the initiative was announced in September 2009.

The $150 million investment includes $76 million in loans syndicated to the African Development Bank, FMO of the Netherlands, Germany's DEG, and Proparco of France. It also includes a $30 million loan to Nigeria's First City Monument Bank and a $44 million loan from Cordiant Capital, the Emerging African Infrastructure Fund, and Nedbank of South Africa.

Nigeria's telecommunications sector has developed significantly in recent years, but the country's 43 percent teledensity indicates that growth potential remains. With the expansion of the HTN network, operators will be able to outsource non-core activities and passive infrastructure, allowing them to focus on further developing their products and services.

"Access to quality, affordable mobile telecommunications is essential to development, both in terms of its ability to ease basic communication needs and to increase access to knowledge and services," said Mohsen Khalil, IFC Director for Global Information and Communication Technologies. "By promoting Nigeria's access to mobile infrastructure through HTN's network, IFC seeks to strengthen the country's efforts to better serve its consumers and businesses."

Orascom Renews Lebanon Contract with Government

Orascom Telecom Holding (OTH) has extended its management agreement with the Lebanese government to mange one of the country's two state-owned mobile networks. The extension is for a period of 6 months ending on 31 July 2010.

Under this contract, OTH receives a monthly sum of US$2.5 million in addition to 8.5% of total revenues. Out of these amounts Orascom Telecom Holding is liable to cover all the operational expenses (OPEX) of the network and is entitled to keep the remainder as management fees. The Republic of Lebanon is fully responsible for the CAPEX during the contract period.

The mobile network assets of Alfa were transferred to the Republic of Lebanon with effect on August 31, 2002 following the termination of the build, operate and transfer contract under which Alfa was constructed.

"We're happy with the achievements made in the Lebanese mobile market through our management of Alfa during the past year, and are hoping to secure a presence for OTH within the long term plans of the Republic of Lebanon for its mobile communication market" said Khaled Bichara, Orascom Telecom's CEO.

MTN Rwanda Launches Mobile Banking

MTN Rwanda has announced the launch of its 'Mobile Money' service, targeting 100,000 subscribers in 2010, local daily The New Times reports.

MTN invested USD2 million in the implementation of its new offering, which enables customers on the MTN network to carry out financial transactions using their wireless handset through the 120 agents nationwide appointed by the operator. The service also allows non-subscribers of MTN to receive money.

Khaled Mikkawi, CEO at MTN Rwanda, commented: ‘We have a network reaching over 90% or the population and it is only right that we leverage this coverage for a common good product that will go a long way in the financial deepening of the Rwandan economy.’

MTN Rwanda is working with Commercial Bank of Rwanda (BCR) as the partner bank for its mobile money service.

Etisalat Makes Roaming Easier

The UAE's Etisalat has simplified its roaming tariffs with flat rates based on which of three zones the customer is in at the time. The roaming zones are; the GCC (Gulf countries), other Arab countries, and the rest of the world.

Qtel Abandons Africa Plans, Eyes More Middle East Investments

The CEO of Qatar Telecom (Qtel), Nasser Marafih, says the company is looking into increasing its investments in the Iraqi and Algerian telecoms markets because of the potential for expansion in the two countries, according to a report in The Peninsula.

Qtel controls 36.2% of mobile operator Wataniya Telecom Algeria (Nedjma), via a 71% stake held by Kuwaiti-based Wataniya Telecom (NMTC), a 51%-owned subsidiary of Qtel. The Qatari mobile, fixed line and broadband group also holds 30% of the consortium-controlled cellco Asiacell in Iraq. In Algeria, the second national operator (SNO) fixed line licence is currently vacant; in January 2010 previous SNO Lacom’s licence was officially revoked, potentially paving the way for the concession to be reauctioned later in the year.

Dr Marafih was quoted as saying that the global financial crisis had some positive impact on Qtel’s businesses in the sense that the lowering of licence fees worldwide to a ‘more realistic’ level meant it was cheaper to expand into new markets. The lower prices, the CEO continued, will create further opportunities for Qtel’s acquisitions in the future.

‘We now have control of 14 communication companies in 17 countries,’ he said, but added, however, that Qtel has abandoned any plans for expanding into African markets because of the high levels of competition. It is thought likely he was just referring to sub-Saharan countries; Qtel recently indicated interest in entering Morocco’s mobile sector.

Kasapa Wins Appeal In Kludjeson Case

Ghanaian CDMA operator Kasapa Telecom yesterday issued a press release noting that the Court of Appeal has reversed, by a unanimous decision, the 25 April 2007 ruling of the Accra Fast Track High Court, in the case of Kludjeson International Limited versus Robert N. Palitz (Kasapa’s managing director), Lung Hien Ching (Kasapa’s former CFO), Trustee Services Limited (Kasapa’s former company secretary) and the Attorney General.

In its ruling, the Court of Appeal upheld each of the eleven grounds of appeal, and, significantly, adjudged that Mr Palitz, Mr Lung, and Trustee Services had all been properly appointed to their respective positions, and that all actions taken, including the change of company name from ‘Celltel’ to ‘Kasapa’ and the acceptance of a shareholder loan, were properly done and completely valid. The court awarded costs to each of the first three defendants.

Back in May 2007 Kasapa Telecom strenuously refuted the Accra Fast Track High Court ruling that the appointment of its managing director and chief financial officer, was done inappropriately and that the name of the company should be changed back to its original name, Celltel.

At the time it published a press release titled ‘The Facts of the Matter’, in which it said it was vital that it responded to the ‘deliberate and malicious spread of misinformation about the judgement of the High Court on 25 April 2007 in the case of Kludjeson International Limited (KIL) vs Robert Palitz and 3 others’.

Nigeria To Open NITEL Bids On 16 February

Nigeria’s Bureau of Public Enterprises (BPE) has announced that it will open financial bids for the privatisation of incumbent fixed line operator Nigerian Telecommunications (NITEL) and its mobile arm M-Tel on 16 February 2010, local newspaper This Day reports.

According to the BPE, only six of the 14 pre-qualified consortia met the 5 February deadline for the submission of technical and financial proposals, and will therefore be able to submit bids for the minimum 75% stake. The successful candidates are: Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications (formerly known as Telefonica Consortium).

The federal government began seeking a buyer for a minimum 75% of NITEL and 100% of its mobile unit in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year. The original deadline for the submission of technical and financial bids was 2 October 2009, but this was pushed back to 26 October due to the complexity of the process, and then again to 5 February 2010 to allow for additional time for prospective investors to conclude due diligence.

Prospective investors are invited to acquire either at least 75% equity in the entire NITEL conglomerate or a stake in one or several of its components, including M-Tel, submarine fibre-optic cable division SAT-3, the company’s domestic fixed line infrastructure, its national fibre-optic transmission backbone, and its CDMA network.

NetOne Wants Fresh Loan Terms From Treasury

State-run Zimbabwean cellco NetOne has approached the treasury to renegotiate terms for a USD28 million loan obtained from international financiers at its inception more than a decade ago, reports AllAfrica.com, quoting The Zimbabwe Independent. Reward Kangai, NetOne’s managing director, told the parliamentary portfolio committee on media, information and communication technology that the firm had since 2002 failed to service the debt owed to three lenders, among them the UK-based Standard Chartered Bank.

However, Kangai added that NetOne could level the playing field with its privately-run competitors, Econet Wireless and Telecel Zimbabwe, if the government approved the setting up of an independent procurement committee to replace the current state body which, the MD claimed, often took close to six months to procure supplies for the GSM operator.

Kangai said the company had failed to replace its obsolete billing system following a decision by the existing procurement board to cancel bids by prospective suppliers, and as a result subscribers on monthly contracts were shifting to the pre-paid platform, EasyCall.

Meanwhile, the government has received USD53 million in financing from China for expanding NetOne’s network and customer base. The company had been targeting ‘five million subscribers by March this year’; it was reported this month to have less than 500,000 subscribers.

In a separate development, the incoming managing director of Telecel Zimbabwe, Aimable Mpore, revealed to the same parliamentary committee that the Orascom Telecom subsidiary would launch 3G mobile services by June this year after it was granted necessary wireless frequencies by the Post and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) last week.

Gateway To Introduce Wireless Broadband

Gateway Communications Nigeria has announced the signing of a contract with Cambridge Broadband Networks (CBN) for the creation of a point-to-multipoint wireless broadband network in Nigeria. Gateway will deploy CBN’s VectaStar II platform to provision 130 hubs and 5,000 terminal stations to deliver last mile broadband connections across the country. Gateway, which has acquired 10.5GHz spectrum licences for point-to-multipoint, is currently building a pan-African MPLS network covering every major African city.

The company plans to roll out wireless broadband services across ten Nigerian states in 2010, with Port Harcourt and Abuja scheduled to go live in March. It is anticipated that services will be launched in a further 26 states in 2011. ‘Being able to connect to our enterprise customers in their own premises and control the last mile ensures that all Nigerian business will now be able to benefit from carrier grade solutions, no matter what their size,’ noted Guy Clarke, MD at Gateway Nigeria, adding, ‘Gateway has an aggressive rollout plan for last mile access for its wireless broadband networks in 2010 and 2011. We needed an efficient, reliable and high capacity solution that could be deployed quickly, and CBN’s point-to-multipoint solution met those requirements.’

The latest deal follows Gateway’s successful rollout of its Airlink and MetroLink wireless broadband services using 10.5GHz solutions. Both are currently available in Lagos and will, over the next few months, be delivered to all major metropolitan areas across Nigeria.

Ghana Fixes 1 July as Deadline for SIM Registration

Mr. Bernard Forson Jnr, the Director General of the National Communication Authority (NCA) in Ghana, has given subscribers of the country’s various mobile networks have up to 1 July 2011 to register their SIM cards or risk having their line blocked or disconnected.

Mr. Emmanuel Owusu Adansi, NCAs Director of Special Projects said ‘all customers should endeavour to register their chips to get their lines activated before 1 July’, adding that registration would improve security for users and also help in the fight against mobile phone-related crime.

Vodacom Q3 Revenues Up 6%

South African Vodacom Group has reported group revenues of ZAR15.43 billion (USD2.03 billion) for the three months ended 31 December 2009, up 6% from ZAR14.56 billion in the same period a year earlier. The company attributed revenue growth to the January 2009 acquisition of Gateway Communications and a 33.1% year-on-year growth in data revenues. Group data revenue was ZAR1.19 billion for the final three months of 2009, with the company’s domestic operation accounting for ZAR1.16 billion of the total.

Pieter Uys, CEO of Vodacom, said: ‘This has been a positive quarter for Vodacom, featuring solid overall revenue growth and continued progress in building our data business. Despite a challenging economic environment, our South African business posted a 7.5% increase in revenue. The actions we have taken in our international businesses have shown positive results in the form of improved market positioning. Cost management programmes are also gaining momentum and should provide the basis for improved margin management in the year ahead. Careful allocation of capital to investment projects has resulted in continued strong growth in cash flows.’

The group ended 2009 with a consolidated mobile customer base of 40.5 million, a 9.5% year-on-year growth. Vodacom South Africa accounted for 67% of the total with 27.1 million subscribers, up from 26.45 million a year earlier. Three of the company’s international operations also reported year-on-year customer growth. The firm’s Tanzania, Mozambique and Lesotho-based subsidiaries saw their customer bases grow by 28.4%, 61.1% and 30.9% respectively. Growth in other operations helped offset a 12.9% decline in Vodacom’s Democratic Republic of Congo (DRC) subscriber base, which stood at 3.52 million following a change in disconnection policy from 215 to 90 inactive days.