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.

LAP To Launch In Sierra Leone This April

GreenN Sierra Leone, a subsidiary of LAP Green Network, itself 100% owned by Libyan government-owned investment vehicle Libyan Africa Portfolio (LAP), will launch commercial operations in Sierra Leone’s wireless market in April this year, local newspaper Awoko reports.


Earlier this week Information and Communications Minister Alhaji Ibrahim Ben Kargbo made the first official call over the company’s GSM network to President Koroma. The minister said that GreenN Sierra Leone is part of efforts to strengthen the bilateral ties between Sierra Leone and Libya. 


According to GreenN Sierra Leone’s CEO, Elmabruk S. Elgembari, the company plans to invest USD50 million in the next three years, adding that the operator has so far constructed a total of 128 cell sites, including 42 in the provinces. 


The CEO also revealed that GreenN will provide quality and affordable voice, data and internet services. As well as Sierra Leone, LAP holds telecoms licences in six other African countries, including Rwanda, Uganda, Niger, Ivory Coast and Togo.

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).

Sierra Leone Extends SIM Registration Deadline

Sierra Leone’s telecoms regulator, the National Telecommunications Commission (NATCOM), has extended the deadline for the country’s mobile subscribers to register their SIM cards by 60 days, local daily Awareness Times reports.

According to the regulator, the date has been pushed back as only 52% of wireless subscribers met the original 30 June 2010 registration deadline. NATCOM also said it received a large number of calls from the country’s subscribers and its mobile operators for the commission to reconsider the original deadline.

Wireless users have now been given until 30 August 2010 to register their SIM cards, or face the disconnection of their service.

Sierra Leone was home to around 2.34 million mobile customers at the end of March 2010, at which date Lintel SL (Africell) was the largest operator by subscribers with a market share of 37.5%.

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.

Sierra Leone To Liberalise International Gateway

Sierra Leonean newspaper Awoko reports that the government will liberalise the country’s international mobile gateway ‘soon’, breaking the monopoly held by incumbent telecoms operator Sierratel. Minister of Information and Communication Ibrahim Ben Kargbo said the move will pave the way for the landing of fibre-optic cables in the country, slated for November 2011, in order to bring higher bandwidth, cheaper tariffs and improved service quality to end-users.

Cellcos Celtel (now Zain) and Millicom SL (Tigo) were issued with international gateway licences in January 2003, only to have them revoked in August 2006 as one of the sector reforms brought about by the Telecommunications Act 2006, which restored Sierratel's monopoly on international connections for a period of two years.

Despite calls for an 'open and transparent' review of the international gateway by the Sierra Leone GSM Operators Association in July 2008, Sierratel's monopoly was extended in August 2008.

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.

Zain Introduces Zap In Ghana

Zain Communications Ghana, part of the Kuwaiti-based Zain Group, has launched its mobile commerce service 'Zap' in Ghana, the firm said in a press release. The new service will enable Ghanaians to pay for goods and services via their mobile phones, and conduct banking services regardless of the type of handset they use.

The parent company said Zain Ghana is the seventh Zain mobile operation to launch 'Zap' following the successful implementation of the service in Kenya, Malawi, Niger, Sierra Leone, Tanzania and Uganda. Zap allows Zain customers to: pay bills and pay for goods and services; and receive and send money to friends and family; top up airtime accounts. In the coming weeks Zap will be expanded to include the sending and receiving of money to bank accounts, cash withdrawals and bank account management.

Zain launched its 3.5G network in Ghana in December 2008, claiming to have invested more than USD420 million in the rapid rollout of high speed services - sub-Saharan Africa's first such network outside South Africa. The cellco says it began signing up customers to the new service a month before the network went live, but has not disclosed actual subscriber figures.

The company has come a long way since 14 December 2007 when the government of Ghana finally completed the agreement to allow Netherlands-based Celtel International, then the holding group of Kuwaiti telecoms group Zain (formerly MTC Group's) African interests, to take control of the second national operator (SNO) WESTEL, which had received a licence to operate GSM-based mobile services in November 2006.

Burindi Carriers Team Up To Build Fibre Line

A number of Burundian telecoms operators have joined forces to build out a national fibre-optic backbone network in the small African country, aided by the World Bank. The so-called ‘Burundi Backbone Systems’ group, which includes incumbent PTO Onatel, mobile operator Leo (formerly U-Com), Africell (owned by V-Tel and Palestinian Paltel), Econet Burundi and domestic ISP CBI Net.

Balancing Act reports that Burundi Backbone Systems will oversee the development of a 1,200km backbone and several international fibre links connecting the country to its neighbours in the next 18 months. The World Bank is contributing money to the scheme which will provide coverage throughout Burundi with cables laid alongside road routes, with 26 different nodes.

Zain, Africell Fined in Sierra Leone

Sierra Leone’s telecoms regulator, the National Telecommunications Commission (NATCOM), has fined mobile operators Lintel SL (Africell SL) and Zain Sierra Leone USD50,000 each for violating the Telecommunications Act of 2003, local daily Concord Times reports. The duo were penalised for increasing the price of their recharge cards without first consulting with NATCOM, which is the only body permitted to approve tariff increases, 30 days after an operator has notified it in writing. ‘Section 52 [of the Telecommunications Act] says GSM operators should notify the commission in writing before any increase is made, while 53 says the commission should give approval,’ NATCOM’s public affairs manager, Abdul Kuyateh, explained.

The price hike was reportedly a response to the introduction of a new Goods and Services Tax (GST) tax on 1 January 2010, which led to confusion about pricing and subsequent shortages of calling cards. It is believed that some mobile operators increased the cost from SLL1,700 (USD0.43) for 50 units to SLL2,000 after the introduction of the GST, raising protests by consumers and a rebuke by NATCOM, which ordered cellcos to restore prices to previous rates until legal issues were resolved. Kuyateh stressed that cellco Comium SL does not have to pay the fine because it agreed to reduce its tariffs immediately after a meeting with the minister of information and communication. Lintel SL and Zain have been given until 18 January to pay their respective fines, or face further action from NATCOM.

Africell Now Part of Convergys Agreement

Convergys says that the Lintel Group has extended its preferred supplier relationship to provide prepaid and value-added services obtained from Convergys’ acquisition of Intervoice to Lintel’s mobile customers in West Africa. The Lintel Group provides GSM telecommunications services under the Africell name to more than 1.3 million subscribers in Sierra Leone and Gambia and has a nine-year relationship with Convergys.
Through its Relationship Technology Management business unit, Convergys is implementing additional licensing capacity and features to the Lintel Group’s prepaid platforms in Sierra Leone and Gambia to support subscriber growth and enhance the customer experience.
“Our partnership with Convergys has been one of continuous expansion over the years. Today, we are working together to solve the welcome issue of significant growth within the mobile markets the Lintel Group serves in Sierra Leone and Gambia,” said Ziad Dalloul, CEO and Chairman of the Lintel Group.
Africell Holding, Africell Gambia, Africell Sierra Leone, Africell RDC (Congo DRC), and Linfra are among Lintel group subsidiaries.

Zain Begins Lay-offs In Nigeria, Uganda

The Zain Group - a mobile communications firm with operations in Africa and the Middle East – has started laying off at least 2,000 employees from all its subsidiaries, with its entities in Nigeria and Uganda announcing the lay-offs of 300 and 27 employess, respectively.

This follows the Group’s decision to sack the lot as it strives to position itself in the premier league of world’s top 10 telecommunications firms.

The decision emerged at a strategic meeting with senior Zain executives from all 22 African and Middle East operations, in Bahrain last week.

Zain’s new wave of layoffs will particularly affect its head offices and operations structures across all markets. Until Monday, the Group directly employed 15,500 workers. The reduction of its workforce by 2,000 will represent a loss of 13 percent in its human resource departments.

Zain Nigeria in a statement announced it was laying off 300 of its staff, an action aimed at aligning its business model with the Zain group's growth strategy. Mr Yesse Oenga, the managing director Zain Uganda, said 27 workers will be sacked from their jobs in the country.

In March, 141 staff at Zain Kenya were laid off. Other markets that have already sacked workers include; Iraq, Jordan, Kuwait, Malawi and Sierra Leone.

Zain Group Chief Executive Officer Dr Saad Al Barrak who announced the layoffs – the single largest in Africa so far, said the layoffs are part of the firm’s Drive2011 – a new programme aimed at propelling the company towards its 2011 target with 150 million subscribers and $6 billion in revenue.

In Uganda, the termination of workers to re-align Zain’s operations begun yesterday, according to Mr Oenga. Zain’s staff downsizing process forms part of its new drive to improve service delivery to its customers in all operations, according to Mr Oenga. 

Specifically, Zain Nigeria said it was joining operations across Africa and the Middle East to implement the new business model, Drive2011, which is part of Zai n 's drive to become a top 10 global mobile operator by 2011 with 150 million cust o mers and earnings before interest, taxes, depreciation and amortisation of US$6 b illion.

Zain has invested more than US$12 billion in Africa since 2005, with a plan to m ake further investments of up to US$2 billion this year.

Zain to Cut Down on 2,000 Jobs, Plans to Outsource More Functions

Zain has announced that it is cutting some 2,000 jobs as it streamlines its operations and increases the outsourcing some back office/non-core functions to strategic partners. The project, Drive2011 is expected to improve Zain’s operating margin by 5% within 12 months.

The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 - a 13% reduction across the board. Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone have already begun the process.

“Drive2011 is a natural consequence of Zain’s evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximizing efficiency,” declared Zain Group CEO Dr Saad Al Barrak. “We will create genuine market differentiation through our services and deliver on our Zain brand promise of ‘A wonderful world’. This will be achieved through a combination of managed outsourcing, centralization and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies.”

In a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US$6 billion EBITDA, Dr Al Barrak also announced several senior management changes at both Group and country operation level.

Tigo's Millicom Q4 Earnings Rise by 31%

Emerging markets mobile operator Millicom said its fourth-quarter EBITDA rose 31 percent from a year earlier to USD 406 million and revenues were up 18 percent to USD 907 million. The company, which operates under the brand name Tigo, met its target for an EBITDA margin of 45 percent in the period.

However net profit fell to USD 66 million from USD 113 million a year ago, due to a net charge of USD 55 million for tax and forex losses. Total subscribers rose to 32.0 million at year-end from 30.6 million in the third quarter. Millicom plans capital spending of USD 1 billion in the current year, down from USD 1.4 billion in 2008.

The company said it's lowering operating and capital spending due to the more challenging economic environment, and also expects a continued impact on results this year from the stronger US dollar. Millicom is also scaling back its promotions in Latin America, its biggest market, to focus more on revenue-generating customers as subscriber growth slows due to higher market penetration.

The company said its recently acquired Central American fixed-line business Amnet is performing as expected and should be fully integrated during Q1. Helped by improving margins, especially in Africa where the company plans to sell its Sierra Leone operation, Millicom expects to turn free cash flow positive for the full year in 2009.