Tuesday, February 16, 2010

Glo Launch Date In Ghana Not Certain

Ghana’s Minister of Communications Haruna Iddrisu says the government is doing all it can to ensure mobile newcomer Globacom can launch commercial operations on 6 March 2010, the nation’s Independence Day.

Iddrisu said he had taken it upon himself to order the telecoms regulator, the National Communications Authority (NCA), the National Bureau of Communications and Globacom’s appointed equipment supplier, ZTE Corporation of China, to ensure that everything was in place to allow Globacom to use the necessary 800MHz spectrum within 14 days.

However, sources close to the start-up suggest the firm is not looking to start operations next month. A report in ghanabusinessnews.com quotes an unnamed person familiar with the situation as saying only that the company was planning to launch its services this year.

Gamtel Awards Alca-Lu Fibre-Optic deal


Gambia’s incumbent PSTN operator Gamtel has awarded a contract to Alcatel-Lucent to roll out a terrestrial fibre-optic transmission network under its 'Cross Gambia Project', reports Afrique en Ligue.

A release from the telco’s Banjul office said the joint venture project with Senegalese counterpart Sonatel will extend fibre links from Dakar through Kaolack, Karang, Barra, Banjul, Serrekunda, Yundum, Brikama to Seleti in Casamance to terminate on Sonatel’s fibre network.

The new infrastructure will provide an alternative route to the fibre link between Basse in Gambia and Velingara in Senegal, which was implemented in 1996. As well as eliminating the serious problem of disruption to bilateral international traffic whenever the older fibre is cut, the rollout will also increase Gamtel’s international internet bandwidth. The telco said it spent EUR1.2 million (USD1.65 million) on the initial stage of the Cross Gambia Project in 2009.

Thursday, February 11, 2010

Zambia Plans To Transfer Fibre Lines From Zesco to Zamtel

AllAfrica.com reports that the Zambian government is planning to put a number of fibre pairs currently controlled by state-owned power company Zesco in to the hands of Zambia Telecommunications Company (Zamtel). It is understood that the move is part of the state’s plans to make the telco more attractive to potential buyers, as the privatisation process of the operator moves forward.

Under the proposals the government will transfer seven of twelve fibre pairs that Zesco has; of the remaining five, two are used by Zesco to manage its power network, one is used by South Africa-based MTN, which owns a mobile operator in Zambia, while the last two are not currently in use.

Local ISPs have voiced their concerns about the proposals however, with one unnamed market operator stating: ‘All the ISPs don't want this to happen. We have a good relationship with Zesco and we put a lot of capacity through their link. If it happens, I'll have to lay fibre routes and that's not my business. We're looking at VoIP offerings because the current prices of international calling are still USD1.10-USD1.50 a minute.’

At present Chinese vendor Huawei is in the process of rolling out a fibre backbone for Zamtel, but it remains incomplete and by comparison to Zesco’s existing infrastructure is significantly less expansive. Zesco’s fibre network spans the economically active central part of the country from Lumwana and Solwezi in the north to Sesheke in the south.

The Zambian government first announced plans to divest a portion of its stake in Zamtel in December 2008. In September 2009 it revealed it would sell 75% of the struggling operator, and one year after initially unveiling its intention to sell, the Zambia Development Agency (ZDA), which is handling the process, announced the shortlist of bidders: India's Bharat Sanchar Nigam Ltd, Unitel of Angola and Libya's LAP Green Networks. Russia’s Altimo was subsequently added to the list, despite submitting its bid after deadline.

MTN To Cut Investment in Rwanda By 55% in 2010

MTN Rwanda has announced that it will cut total annual investment in 2010 by 55% to USD45 million, Rwandan daily The New Times reports.

‘There is no need to invest heavily in building capacity and coverage every year. What we did in 2009 can serve in 2010 and what is required now is to maintain what we built last year,’ noted the MTN Rwanda’s CEO, Khaled Mikkawi. Instead the company will focus on attracting more subscribers through the introduction of new promotions to fully utilise MTN’s network capacity.

In 2009 the cellco invested around USD100 million in the expansion of network coverage and increased capacity to serve three million customers.

‘Currently we have close to two million subscribers and this year we are targeting an extra million subscribers hopefully to make up the three million our capacity can handle,’ Mikkawi added.

South Africa’s MTN Group increased its interest in MTN Rwanda from 40% to 55% for USD40.5 million in March 2008, leaving Tristar Investments with a 35% stake. The remaining 10% is owned by the Rwandan government.

Kasapa's MD Resigns

The managing director of Ghanaian mobile operator Kasapa Telecom, Bob Palitz, is stepping down from the role after nine years in office. In an interview with local press agency Joy Online, Mr Palitz said he believed he had contributed his quota to the company and that it is time to move on. The resignation comes approximately 18 months after Kasapa was acquired by Dubai-based Expresso Telecoms.

‘I’m getting on…and looking for new challenges and I know that the incredible team of Ghanaian managers and staff, some of whom were already there, some of whom joined us after I came [to] Kasapa, know the meaning of operating with integrity and transparently and professionally and I have every confidence they would continue to do that regardless of what happens after I have gone,’ Palitz said.

The announcement was made less than a week after Palitz’s firm reported success in the long-running Kludjeson court appeal. On 4 February Kasapa issued a press release noting that the Court of Appeal had 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, Lung Hien Ching (Kasapa’s former CFO), Trustee Services Limited (Kasapa’s former company secretary) and the Attorney General. The court awarded costs to each of the first three defendants.

Google To Build Fibre Optic Network

Google has announced plans to build a number of trial fibre-to-the-home (FTTH) networks in communities across the US, claiming that it will provide broadband at downlink speeds of up to 1Gbps. James Kelly, project manager on Google's infrastructure team, said: ‘We are doing this because we want to experiment with new ways to make the web better and faster for everyone, allowing new applications that aren't possible today. We are going to try out new ways to build and operate fibre networks and share what we learn with the world.’

Between now and 26 March 2010, interested states, cities, towns and communities can file a ‘Request for Information’ in the hope of being selected by Google as a trial community. Google revealed that the trial FTTH networks will be open for use by other service providers, and will each serve between 50,000 and 500,000 users.

David Fish, spokesman for incumbent fibre operator Verizon, revealed that his company would be interested in the results of the trials, saying: ‘The internet ecosystem is dynamic and competitive, and it’s delivering great benefits to consumers. Google’s expansion of its networks to enter the access market is another new paragraph in this exciting story.’

FCC chairman Julius Genachowski also welcomed the move, noting: ‘Big broadband creates big opportunities. This significant trial will provide an American testbed for the next generation of innovative, high speed internet applications, devices, and services.’

Mobile Streams To Supply MTN in South Africa

­Mobile content distributor, Mobile Streams has secured a contract to supply content to South Africa based MTN's operations in 21 countries. The service is being provided via IMImobile.

The agreement between the two companies will give IMImobile access to Mobile Streams' extensive content library which can be powered through its DaVinci Storefront solution to customers in Africa and the Middle East.

Arnd Aschentrup, Chief Operating Officer at Mobile Streams commented: "Mobile usage amongst subscribers in these emerging markets continues to rise and that provides us with a great opportunity to increase the revenues and fan bases of our content partners."

Mobile Streams currently has a global footprint within the UK, Europe, North America, Latin America and Asia Pacific.

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.