France Telecom Resolves Kenya Duspute Over Missing Assets

A stand-off between the Kenyan government and France Telecom - its fellow shareholder in Telkom Kenya - has been resolved after three months of disputes, reports the EastAfrican newspaper. France Telecom, which purchased 51% of the previously state-owned Telkom Kenya for USD390 million back in November 2007, threatened to withdraw its investment after a failure to trace certain assets that were in the books at the time of purchase.

A joint statement from Treasury Permanent Secretary Joseph Kinyua and Michel Barre of France Telecom read: ‘The Government of Kenya and Orange East Africa SA, a subsidiary of France Telecom SA, are pleased to announce that they have resolved the outstanding shareholder issues regarding the privatisation of Telkom Kenya in December 2007’.

The shareholders said they will now focus on enhancing their partnership, in order to make the company a world-class player for the benefit of its customers and other stakeholders. The statement added: ‘France Telecom Group further confirms its commitment to Kenya as a long-term strategic investor through its participation in Telkom Kenya, which it continues to support through its global ‘Orange’ brand. The Group will continue to provide strategic and technical expertise in order to transform the company and develop innovative products and services’.

QCell Shareholder Selling Off It's Stake

Uflex, an Indian manufacturing group, is planning to sell its entire 40% stake in Gambian mobile operator QCell, according to a report on Moneycontrol.com citing Indian-based business news channel CNBC-TV18.

QCell, Gambia's fourth and newest cellular communications provider, is controlled by domestic ISP QuantumNet's CEO Muhammed Jah, a local entrepreneur, and launched its commercial 2G/3G mobile network in July 2009. It is the country's only 3G operator.

We Are Not Talking With Zain, Says Etisalat

UAE telecoms operator Etisalat has said it has not submitted a bid or made a proposal to purchase a stake in Kuwait-based Zain Group, cellular-news reports.

The statement followed a recent report from Kuwaiti newspaper al-Seyassah, which said that Zain had entered into talks to sell a majority stake in the group to Etisalat.

Earlier this month Zain's chief executive, Nabeel bin Salama, said the firm was not in talks to sell further assets, after it completed the sale of its African assets to Indian telecoms group Bharti Airtel, in a deal valued at USD10.7 billion.

MTN Rumuored To Be Eying Another Indian Cellco

According to local newspaper the Business Standard, South Africa-based wireless company MTN is in talks to buy a stake in Indian cellco Loop Telecom. MTN is reportedly considering acquiring up to a 45% stake in the company.

The African firm has made three previous attempts to enter India – twice failing with Bharti Airtel and once with Reliance Communications. A spokesman for MTN has however denied that formal talks have taken place with Loop.

Zain In Talks To Sell sTake to Etisalat

Kuwaiti telecoms firm Zain Group has entered into talks with Etisalat to sell a majority stake in the group to the UAE-based operator, Reuters reports, citing Kuwaiti newspaper al-Seyassah.

Without providing details about the size of the stake or the price, the report states that both firms held meetings last week to discuss the potential deal.

Earlier this month Zain completed the sale of its African assets to Indian telecoms group Bharti Airtel, in a deal valued at USD10.7 billion.

Meanwhile, though Etisalat has yet to confirm the Zain reports, the Abu Dhabi-based operator has admitted it is looking at options in India, including a 26% stake in telco Reliance Communications.

Zain Kenya Gets 3G Licence

Kenyan mobile operator Zain Kenya has been awarded a 3G licence by the Communications Commission of Kenya (CCK) for a fee of KES815 million (USD10 million). The CCK cut the price from USD25 million earlier this month in order to boost competition. Zain and rival cellco Orange had sought the reduction for some time. CCK managing director Charles Njoroge said that the purchase of the 3G concession by Zain would ‘increase competition in the telephony industry, and ultimately benefit the consumers’.

Back in 2007 Vodafone associate and Kenya’s largest wireless operator by subscribers Safaricom paid USD25 million for the country’s first 3G licence. It is now planning to seek a partial refund in the wake of the CCK’s decision.

Societe Generale Introduces Mobile Banking In Senegal

Financial service group, Societe Generale, in partnership with Obopay, a leading mobile banking and payment provider, have launched a new mobile banking service in Senegal for anyone with access to a mobile phone.
The service christened “Yoban’tel by Obopay”, is a carrier-agnostic, mobile money transfer and bill payment service that is available to all the people of Senegal with a mobile phone. Using SGBL’s wide spread branch network in the country and other dedicated outlets, users can enrol for a mobile payment service and load or pick up cash throughout Senegal. They can also use the service to send money to anyone throughout the country, or to pay a bill.

“In Senegal, traditional banking services are typically very limited; people can spend an entire day each month standing in line to pay for things like their utility services in cash,” said Richard Hababou, managing director of Societe Generale Innovations Group. “Yoban’tel by Obopay allows us to establish innovative and convenient mobile money transfer and payments for those Senegalese who have previously not had access to such services.”

“Partnering with one of the world’s leading banks, Societe Generale, enables them to put mobile money at the heart of their accounts,” said Obopay CEO Carol Realini. “Their reach will bring new mobile money access to millions. Furthermore, this latest offering extends our experience in meeting the needs of four different sets of regulatory environments and market dynamics – including the US, India, Kenya and now Senegal – and gives us the expertise, robust platform and service offering needed to expand into new markets very quickly.”

Safaricom Plans Two Acquisitions

Safaricom released a statement today, expressing their intention to acquire ownership of two information communications technology (ICT) companies, namely IGO Wireless Limited and Instaconnect Limited.

This intended acquisition by Safaricom is subject to receipt of shareholder approval at the next Annual General Meeting and to statutory approvals from the Communications Commission of Kenya, the Monopolies and Prices Commission and all other relevant approvals.

IGO Wireless Limited is a licensed Public Data Network Operator engaged in the operation of fixed wireless data services while Instaconnect Limited is licensed as an Application Service Provider engaged primarily in the integration of data solutions.

Both companies are active players in the ICT market and the intended acquisitions are pursuant to Safaricom’s stated strategic objective of enhancing its ability to grow its data business.
Safaricom expects to finalise these acquisitions this financial year.

Bharti to Invest USD150 million in Zambia

India’s Bharti Airtel has revealed it expects to invest around USD150 million in Zambia, with the bulk of the funds being put towards enhancing both 2G and 3G coverage across the country.

According to the Lusaka Times, Bharti, which earlier this month finalised its USD10.7 billion deal to acquire the majority of Kuwait-based Zain’s African operations, has said that the investment will be made over a two- to three-year period. In addition, Manoj Kohli, Bharti Airtel International’s CEO, said that the company would look to make 3G services more affordable through measures such as tariff reduction, with such price changes likely to be introduced in the next six months.

Zain Zambia, which will eventually be rebranded with the Airtel moniker, is the country’s largest mobile network operator by subscribers.

At end-March 2010 the cellco had a subscriber base of 3.12 million, representing a market share of 68.8%.

Telkom Kenya To Get Loan For 3G Licence Fee

Reuters reports that Telkom Kenya will get a shareholder loan from the Kenyan government to enable it to pay the USD10 million 3G licence fee.

‘We are giving them a shareholder loan through which they will pay [for the 3G licence] so it is actually funded by Telkom itself through a shareholder loan by the government,’ Esther Koimett, investment secretary at the Ministry of Finance, told Reuters.

Although she did not say how much the loan will be, the communications regulator charges operators USD10 million for a 3G licence, under a new fees structure unveiled this month.

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.

Korea Inks WiBRO Deal With Angolan

The Korea Herald reports that the Korea Communications Commission (KCC) has signed a memorandum of understanding (MoU) with Angola's Institute of Communications (INACOM) to cooperate in rolling out wireless broadband services in Angola based on the Korean-developed WiBro platform.

Choi See-joong, chairman of the KCC, said that state-run incumbent Angola Telecom had already expressed interest in building WiBro networks during a working-level meeting. Choi has visited Angola, Egypt and South Africa to promote Korean technologies including WiBro and Digital Mobile Broadcast (DMB) television. The Korean-Angolan MoU also covers the development of DMB and IPTV, KCC officials said.

WiMAX-based wireless broadband services are currently offered by Angola Telecom via its business internet subsidiary Multitel, whilst MSTelcom, a unit of Angolan national oil company Sonangol, operates 802.16e (mobile-ready) WiMAX networks in the country, as does another local telco, Mundo Startel.

Telecel Shareholders Disagree Over Zimbabwe Listing

Members of Zimbabwe's Empowerment Corporation (EC) consortium, which holds a 40% stake in mobile operator Telecel Zimbabwe, have denied reports that they agreed with proposals from the cellco's 60% owner Telecel International to list an 11% stake on the local stock market. State-backed newspaper The Herald reports that Telecel International, a holding company owned by Egypt's Orascom Telecom, claimed it had agreed with EC to float the shares on the Zimbabwean bourse to reduce the foreign-held shareholding to 49% in compliance with ‘empowerment and indigenisation' laws and telecoms regulations, but several EC members wrote to Transport, Communications & Infrastructure Development Minister Nicholas Goche and Youth Development, Indigenisation & Empowerment Minister Saviour Kasukuwere denying any involvement in the proposal. Venturas and Samukange, lawyers representing Dr Jane Mutasa, head of the Indigenous Business Women's Organisation, a 17% shareholder in EC, issued a statement saying: ‘It has been brought to our attention that Telecel Zimbabwe has placed a notice in local newspapers alleging that an agreement has been made between shareholders of Empowerment Corporation and Telecel Zimbabwe ... That statement is false. There is no such agreement between the shareholders and in particular Dr Jane Mutasa.’ The lawyers added that Mutasa had not participated in any negotiations related to the planned divestment since 18 March, and asserted that any discussions and agreements entered into without her participation were ‘null and void.’

‘Our client denies participating in the alleged proposal to have the company listed on the local stock exchange. Our client has not participated in the [proposed] alleged issuing of new [Telecel Zimbabwe] shares,’ the statement continued.

Telecel Zimbabwe is owned by Orascom Telecom’s Telecel Globe division (60%, registered to Telecel International), and EC (40%), itself comprising Kestrel (23%), IEG (18%), Indigenous Business Women's Organisation (17%), National Miners' Association (14%), Zimbabwe Farmers' Union (14%) and Magamba eChimurenga (14%). EC was originally given pre-emptive rights to acquire an 11% stake from Telecel International by the government.

The state gave Telecel a deadline of 30 June 2007 to comply with ownership rules; after failing to meet the conditions – largely because of the hyperinflation that paralysed Zimbabwe’s economy – the cellco has technically been operating without a valid licence ever since.

BTC Privatisation Plans On

The government of Botswana has reaffirmed its goal of privatising incumbent telecoms operator Botswana Telecommunications Corporation (BTC), local newspaper The Sunday Standard reports. Presidential affairs minister Lesego Motsumi told parliament that ‘the cabinet has now taken a decision on the privatisation structure of BTC and the information will soon be communicated with all stakeholders.’

Motsumi added that the process was delayed because the government had to carry out lengthy consultation activities with all of the telco’s stakeholders in a bid to minimise risks and maximise benefits.

The privatisation of BTC was first mooted in June 2006, with initial plans envisaging the sale of between 40% and 49% of the telco to a strategic investor and a 5% share to BTC employees. The remaining shares would be retained by the government for a future stock market listing.

The first stage of the privatisation began in January 2007, with a tender put out for 'advisory services'. In February 2008 the Public Enterprises Evaluation and Privatisation Agency (PEEPA) signed a contract with the International Finance Corporation (IFC) to act as transactional advisor in the privatisation. The IFC completed due diligence in November 2008 and in 2009 the Botswana Telecommunications Corporation (Transition) Bill was enacted in parliament.

New ICT Investments Rules Issued In Kenya

Kenyan regulator, the Communications Commission of Kenya’s (CCK), has rolled out new regulations aimed at tightening its grip on multimillion dollar telecom deals in the country. The new directive will require owners of ICT firms to get the regulator’s approval for any planned share sale.

Business Daily reports that the recent move by the CCK is aimed at ridding the industry of speculators bent on buying ICT firms with the aim of selling them at a premium. “A licensee shall require prior written consent of the commission, which shall notify the applicant of its acceptance or refusal within 30 days of receipt of the request,” say the legal notice containing the fresh regulations.

CCK can agree to or veto any buyout deal exceeding 15 per cent, according to the regulations published on May 28 and which also require existing shareholders buying additional stake of at least five per cent to seek the regulator’s permission.

“The regulator wants to know the nature and thinking of the investors buying local firms,” says Mr Vincent Mutavi, an independent telecom analyst.

“The intention is to eliminate speculative investors and reduce the ongoing market concentration in the hands of deep-pocketed firms with money to buy smaller rivals,” he said.

Kenya Begins Mobile SIM Registration

Kenya has started to register all mobile phone numbers in a bid to cut crime.Users will have to supply identity documents and proof of address before they get a number.
Any numbers still unregistered at the end of July will be disconnected, the government says.
According to a BBC correspondent in Nairobi, many people support the move, hoping it will make life more difficult for criminals.
Kidnapping gangs often use unregistered mobile numbers to text ransom demands, he says.
Police commissioner Mathew Iteere says that mobile phones must be registered because they could now be used like computers."It has become a tool of banking, it can be used to steal data, [to] transmit unauthorised information and perpetrates huge frauds."
Information ministry official Bitange Ndemo last week said registering the numbers would help the authorities tackle terrorism, drugs-trafficking and money-laundering, as well as the sending of hate messages.
Neighbouring Tanzania has already started a similar exercise, so it is not controversial.

Kenya has about 20 million mobile-phone users - about half the population - and has a well developed mobile-phone banking network.
Between 97-99% of mobile-phone users in Africa use pre-paid vouchers, reports the news agency Reuters.
It is easier to use pre-paid vouchers without registering an address.  However, some analysts say registering people in some African countries may be difficult if they do not live in a house with an official address.

-BBC Online