France Teelcom In Bid For LION2 Cable

Click For Larger Image - Source France Telecom

France Telecom and the other members of the LION2 consortium have signed an agreement to build a new submarine cable in the Indian Ocean. The agreement comes less than a year after the inauguration of the LION (Lower Indian Ocean Network) submarine cable linking Madagascar to the rest of the world via Reunion Island and Mauritius.

With this latest agreement, France Telecom enters the second phase of its Indian Ocean development plan, pursuing its strategy for the regional expansion of broadband internet.

The 3,000km LION2 cable will extend the LION cable to Kenya via the island of Mayotte. The cable will provide Mayotte with access to a broadband internet network benefiting from a transmission capacity and service quality equivalent to those available in Europe. For Kenya, LION2 is an important project that will strengthen its connectivity to international networks and cover its capacity requirements for years to come. The project is being conducted by a consortium of France Telecom and its subsidiaries Mauritius Telecom, Orange Madagascar and Telkom Kenya, along with carrier companies Emtel, Societe Reunionnaise du Radiotelephone and STOI Internet.

The construction of the LION2 cable represents a total investment of around EUR56.5 million, about EUR31.25 million of which will come from France Telecom. Service is scheduled to begin in the first half of 2012.

LION2 relies on wavelength division multiplexing (WDM), enabling capacity to be increased without additional submarine work. The maximum potential capacity is 1.28Tbps. Two new landing stations will be built, one in Kaweni for Mayotte and the other at Nyali near Mombasa for Kenya. The second of these is doubled up with existing stations and will be used to redirect traffic if needed.

EASSy Formally Launched

Seven months after commencing cable installation, West Indian Ocean Cable Company (WIOCC), the specially created African investment company jointly owned by 14 African telcos and additionally funded by a number of global development finance institutions, has formally announced the launch of its 1.4Tbps, 10,002km fibre-optic submarine cable system.

East African Submarine System (EASSy) runs along the east coast of Africa, from South Africa to Sudan, and boasts onward connection to global markets. Completed on time and on budget, EASSy promises to enable affordable, reliable delivery of fast internet access for African users and enhanced voice and data services for the international marketplace. EASSy will enhance global connectivity to and from 21 countries in eastern and southern Africa, landing at nine countries: South Africa, Mozambique, Madagascar, the Comores, Tanzania, Kenya, Somalia, Djibouti and Sudan.

WIOCC CEO Chris Wood commented: ‘Not only does our cable system provide the lowest latency internet connections and best ever voice and data service reliability to this region of Africa, but our unique approach to contract capacity and duration also provides businesses with the crucial flexibility they desire’.

Investor Celebrate's EASSy Launch

Seven months after commencing cable installation, West Indian Ocean Cable Company (WIOCC), the specially created African investment company jointly owned by 14 African telcos and additionally funded by a number of global development finance institutions, has formally announced the launch of its 1.4Tbps, 10,002km fibre-optic submarine cable system.

East African Submarine System (EASSy) runs along the east coast of Africa, from South Africa to Sudan, and boasts onward connection to global markets. Completed on time and on budget, EASSy promises to enable affordable, reliable delivery of fast internet access for African users and enhanced voice and data services for the international marketplace.

EASSy will enhance global connectivity to and from 21 countries in eastern and southern Africa, landing at nine countries: South Africa, Mozambique, Madagascar, the Comoros, Tanzania, Kenya, Somalia, Djibouti and Sudan. WIOCC CEO Chris Wood commented: ‘Not only does our cable system provide the lowest latency internet connections and best ever voice and data service reliability to this region of Africa, but our unique approach to contract capacity and duration also provides businesses with the crucial flexibility they desire’.

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.

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.

Orange Money Now in Senegal, Mali and Madacascar

Orange has launched its mobile payment service, Orange Money, in three additional African countries - Senegal, Mali and Madagascar - in recent weeks. These launches mark a turning point in the Group's ambition to launch Orange Money across its footprint in Africa. Orange Money is an innovative, mobile phone-based payment system that allows customers to carry out simple banking operations and transactions in total security. Such services offer a huge potential in Africa where less than 10% of the population have access to a bank account and yet over a third have a mobile phone.

The service allows mobile customers to deposit and withdraw money, to transfer money, to easily buy call credit, to pay for goods at certain retail partners and to pay bills. The service is available for all Orange customers whether or not they have a bank account. The Orange Money account is activated free of charge and without any minimum deposit. Orange Money is built around a system that guarantees transactions against the risk of theft or fraud and that is fully compliant with the regulations.

The launch of Orange Money in Senegal, Mali and Madagascar follows on from the launch of the service in the Cote d'Ivoire in December 2008 after extensive trials. Commenting on this launch, Marc Rennard, Orange’s executive director for the Africa, Middle East and Asia Pacific Region, said: ‘Orange Money is a very important part our strategy in Africa and emerging markets. Mobile payment services have the potential to bring cost-effective and secure access to banking services to people with low-incomes, who often live in rural or remote areas. By providing our customers with the means to save money, pay bills and run their businesses, we are not only reinforcing customer fidelity but we are also able to play an active role in the economic development of the country’.

Orange Money will also be launched in Niger and Kenya in the coming months, and will eventually be extended across the Group's entire footprint in Africa and the Middle East.

Orange Money Launched in Senegal, Mali & Madagascar

Orange has launched its mobile payment service, Orange Money, in three additional African countries - Senegal, Mali and Madagascar - in recent weeks. These launches mark a turning point in the Group's ambition to launch Orange Money across its footprint in Africa. Orange Money is an innovative, mobile phone-based payment system that allows customers to carry out simple banking operations and transactions in total security. Such services offer a huge potential in Africa where less than 10% of the population have access to a bank account and yet over a third have a mobile phone.

The service allows mobile customers to deposit and withdraw money, to transfer money, to easily buy call credit, to pay for goods at certain retail partners and to pay bills. The service is available for all Orange customers whether or not they have a bank account. The Orange Money account is activated free of charge and without any minimum deposit. Orange Money is built around a system that guarantees transactions against the risk of theft or fraud and that is fully compliant with the regulations.

The launch of Orange Money in Senegal, Mali and Madagascar follows on from the launch of the service in the Cote d'Ivoire in December 2008 after extensive trials. Commenting on this launch, Marc Rennard, Orange’s executive director for the Africa, Middle East and Asia Pacific Region, said: ‘Orange Money is a very important part our strategy in Africa and emerging markets.

Mobile payment services have the potential to bring cost-effective and secure access to banking services to people with low-incomes, who often live in rural or remote areas. By providing our customers with the means to save money, pay bills and run their businesses, we are not only reinforcing customer fidelity but we are also able to play an active role in the economic development of the country’.

Orange Money will also be launched in Niger and Kenya in the coming months, and will eventually be extended across the Group's entire footprint in Africa and the Middle East.

EASSy Lands In Tanzania

According to a report in the Tanzanian Daily News, the ship laying a 5000km long submarine fibre-optic component of the East Africa Submarine Cable System (EASSy) landed in Tanzania, at Msasani Peninsula, on 6 April. Once completed the EASSy cable will be capable of delivering data transmission of 1.4Tbps.

West Indian Ocean Cable Company CEO, Chriss Wood, who was present at the landing site, said: ‘Interconnection with other undersea international cable systems will enable traffic on EASSy to seamlessly connect to Europe, North and South America, the Middle East and Asia, thereby enhancing the east coast of Africa’s connectivity to the global telecommunications network.’ The new submarine cable has landing points in nine African countries and will provide backhaul for a further dozen landlocked countries, enabling improved connectivity for the East African region. EASSy comprises of a 10,000km submarine cable system along the east coast of Africa, with landing stations in Sudan, Djibouti, Somalia, Kenya, Tanzania, Comoros, Madagascar, Mozambique and South Africa.

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.

Madagascar Connects To EASSy

Madagascar has been connected to the Eastern Africa Submarine Cable System (EASSy), AfricaNews.com reports. Fixed line incumbent Telecom Malagasy (Telma) has announced that it has already put in place a national backbone that will allow it to connect its subscribers to the cable, and it is expected that the arrival of the link will allow for the development of outsourcing activities, such as call centres. EASSy will supposedly enable the transfer of data at speeds 40 times faster than dial-up connections, and 27 operators from 22 countries across Africa’s eastern coast have invested approximately USD260 million in the deployment of the cable so far.

The arrival of the EASSy connection is the second significant cable landing reported in Madagascar in the last twelve months.  In June 2009 Madagascar’s largest mobile operator by subscribers, Orange Madagascar, announced the completion of its submarine cable project, LION, connecting the cable at Tamatave in the Toamasina region. Funded by Orange Madagascar, France Telecom and Mauritius Telecom, the 1,800km broadband cable links with the existing SAT3/WASC and SAFE cable and has a capacity of 1.3Tbps, and it also connects Madagascar with the islands of Reunion and Mauritius.

France Telecom Plans To Cut Call Rates With New System

France Telecom (Orange) intends to cut the cost of call services in most of its African markets by implementing a new system it calls ‘Cell Broadcast’, Arnauld Blondet, the director for emerging countries, announced on Tuesday.

‘We launched Cell Broadcast in Botswana under the [local] name Sesolo. With the number of people interested in that offer, we can be optimistic about trying it soon in most of our African subsidiaries,’ Blondet told news agency PANA at the presentation of the technique.

France Telecom operates in 15 African countries including Egypt, Uganda, Mauritius, Madagascar, Cameroon, Central African Republic, Niger, Cote d'Ivoire, Mali, Senegal, Guinea, Kenya and Equatorial Guinea.

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.