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.

Maroc Telecom Ahead of FT in Benin Telecom Bid

Morocco’s Maroc Telecom, controlled by French group Vivendi, is thought to be in a good position to bid for state-owned Benin Telecoms, according to African-bulletin.com, quoting French newspaper La Lettre Mediterrannee, following previous reports that France Telecom (FT) was in pole position for the privatisation of Benin’s incumbent telco.

The schedule for privatising the PSTN and broadband operator is unclear however, with observers saying that the issue could be clouded by upcoming presidential elections next spring, whilst Benin Telecoms’ workers’ union has warned that it will ‘react strongly’ to inevitable staff restructuring (‘downsizing’) plans resulting from a sale to the private sector.

Maroc Telecom has expanded across several African nations. In neighbouring Mauritania, it acquired 51% of Mauritel in 2001, and it acquired majority control of Burkina Faso’s Onatel in 2006 and Gabon Telecom the following year.

In 2009, Maroc Telecom signed an agreement with the Malian government to become the major stakeholder of Sotelma. The group is also eyeing other markets outside the traditional French speaking African countries which have strong political ties with Morocco.

Burkina Launches Tender For Operators

Burkina Faso’s telecoms regulator, the Regulatory Authority for Electronic Communications (ARCE), has announced the launch of an international tender for a combined fixed and wireless concession which includes the provision of third-generation (3G) services.

The licence is valid for a period of ten years and covers the whole of the country. Interested parties can consult the tender document free of charge or obtain a copy from ARCE for a non-refundable fee of XOF300,000 (USD594).

Submissions must be made before 19 October 2010, at which date bids will be opened at the regulator’s headquarters in the country’s capital Ouagadougou.

Burkina Faso is home to three wireless network operators: market leader Telmob, which launched in December 1996 as the wholly owned cellular arm of fixed line operator the Office National des Telecommunications (Onatel); Telecel Burkina Faso, which inaugurated its GSM-900 network in December 2000; and Zain Burkina Faso, which launched wireless services in January 2001.

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.

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.

Maroc Telecom Completes Fibre Link to Western Sahara

Moroccan communications group Maroc Telecom has reached 60% completion in the first phase of a plan to roll out a fibre-optic backbone network linking Morocco with West African countries, reports Dow Jones Newswires quoting Middle Eastern daily Asharq Al Awsat.

Phase one of the network will link the capital of Mauritania, Nouakchott, to El Ouyoun in Western Sahara, revealed Maroc Telecom's president Abdulsalam Ahizoune, whilst the finished route will link Mauritania, Gabon, Mali and Burkina Faso, he said.

Etisalat Hits 100 Million Mark

UAE-based telecoms operator Emirates Telecommunications Corporation (Etisalat) has revealed that its subscriber base has exceeded 100 million customers across 18 markets in the Middle East, Asia and Africa, covering two billion people. The announcement follows Etisalat’s acquisition of the remaining 18% of its West African venture Atlantique Telecom (AT) it did not already own for USD75 million earlier this month.

Etisalat operates AT as part of a ten-year management contract ending in 2015; the company holds majority stakes in seven operators in Cote d’Ivoire, Benin, Burkina Faso, Gabon, Niger, Togo, and Central Africa Republic. At the same time, the UAE incumbent revealed it had filed an application with the Indian Foreign Investment Promotion Board (FIPB) in December 2009 to obtain approval to raise its 45% stake in its Indian subsidiary Etisalat DB to 50% plus one share. The company has said it is targeting majority stakes in its subsidiaries and associates for greater operational and financial synergy.

Vivendi in Need for Expansion As Maroc Telecom Growth Stalls

For a few days last month Maroc Telecom's parent company Vivendi looked like it might pull off one of the most audacious attempts yet to arrest control of one of the Middle East & Africa's largest mobile operations from the now well-entrenched players.

However, Zain, whose Celtel unit was the subject of the interest, could not agree on price with the French company and the chance of a deal - however unlikely most commentators, including your author, thought that to be - now looks to be dead and gone.

If a transaction had gone ahead it would most likely have had a significant effect on Maroc Telecom's place in the Vivendi group, with the Moroccan incumbent slotting in as part of a much larger overall portfolio.

As it is, the company remains Vivendi's sole venture in the emerging markets, and its sole vehicle for growth in Africa. In addition to its home operation and its long-standing subsidiary in Mauritania, Maroc Telecom has expanded into Burkina Faso and Gabon by purchasing the incumbents in these markets, and this year has followed those deals with the agreement to purchase a majority stake in Sotelma, the incumbent telco in Mali. The talks with Zain indicate, however, that management in France is not entirely content with this slow piece-wise expansion strategy.

The mobile business, which accounts for almost two-thirds of Maroc Telecom's MAD14.6bn strong top line, grew by 25.9% in connection terms in the year to 30th June 2008, but by just 5.9% in the most recent 12 months. Strong performances by the regional operators (+26% in Gabon, +30% in Mauritania, +74% in Burkina Faso) have failed to offset an almost complete arrest of growth in Morocco which grew by just 0.5% in the year. With 14.29m customers, the Moroccan business still accounts for 81% of the overall mobile base of 17.55m, whilst its fixed operation contributes 84% of the 1.5m strong landline total.

In revenue terms, the home business is even more dominant with 86% of the mobile turnover and 85% of the fixed - and it is convincingly the most profitable in both departments. In this light it is perhaps no wonder that Maroc Telecom's acquisition in Mali - involving around 1m customers - has failed to satisfy the appetites of the French owners. The question, if Celtel is off the menu, is where they will turn next?

Maroc Telecom Revenues Up 1.9%

Moroccan incumbent Maroc Telecom has reported its consolidated group results for the first half of 2009. Revenues were up 1.9% year-on-year to MAD14.6 billion (USD1.84 billion) in the six months ended 30 June, whilst EBITDA rose 1.0% to MAD8.6 billion and net income attributable to the group climbed 2.6% to MAD 4.6 billion.

The total customer base reached 19.6 million at mid-year, up by 5.3% from June 2008, with growth fuelled by subsidiaries in sub-Saharan Africa which saw their combined customer bases increase by 44.1% year-on-year to 3.2 million customers. In the second quarter revenues stood at MAD7.46 billion, up 1.8% versus the same period last year.

The results incorporate Maroc Telecom's domestic fixed line, broadband and mobile operations, and its subsidiaries Mauritel (Mauritania), Onatel (Burkina Faso) and Gabon Telecom (including cellco Libertis) as well as the Mobisud France and Mobisud Belgium MVNO companies. Mobisud France was withdrawn from Maroc Telecom's consolidated financials as from 1 June 2009.

The Moroccan operator also released a 2009 full year outlook, predicting revenue growth of around 2% and an operating margin of around 45% (compared to 44.9% in H1).

Vodacom Introduces M-PESA In Tanzania

­Vodacom Tanzania has officially signed up BOA Bank to provide Vodafone M-PESA services to its clientele. Both prepaid and post-paid Vodacom customers are able to open a Vodafone M-PESA account at no cost at any authorised agents and at BOA Tanzania outlets. Mobile users on any network can receive money sent through the M-PESA service.

"We are delighted to announce the signing up of Bank of Africa (BOA) as the very first Bank in Tanzania to become Vodafone M-PESA agent," said George Rwehumbiza, Vodacom's Head of Sponsorships and Communications.

"Today, BOA adds on to our current 1,000 agents countrywide", he continued to say.

BOA Bank Tanzania is a Private Commercial Bank operating in Tanzania serving corporate and retail customers. BOA's major shareholder, the Bank of Africa Group is already operating in ten other African countries namely: Benin, Mali, Burkina Faso, Ivory Coast, Kenya, Madagascar, Niger, Senegal, Uganda and Burundi with further plans of expanding.