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.

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."

Nigeria's GiCell to Enter Mobile Market

Nigeria’s GiCell Wireless is to begin providing a mobile network, with what it dubbed the cheapest tariffs in Nigeria.  Speaking to the Daily Trust Chief Executive Officer Usman Abubakar Gumi said his company will be rolling out a CDMA 450 network to provide voice and data services, initially serving five states.

“We intend to launch in the second week of February, and our strategic advantage will be to provide the lowest tariff to our subscribers as well as superior voice quality and wide Coverage”, he told the daily.

The project is supported by the World Bank.  GiCell was selected as the first Universal Access Service provider in Nigeria to provide telecommunications service to un-served and under-serve areas. The World Bank’s support of US$ 5 million is backed by funding from other banks and local investors.

Nigeria continues to be one of the fastest growing markets in Africa with triple-digit growth rates every single year. It passed Egypt and Morocco in 2004, and South Africa in 2008 to become the continent's largest mobile market.

Subscribers have grown from almost nothing in 2001 to exceed 53 million as at June 2008 and expected to cross 77 million by 2013 with a penetration rate of 28% and revenue of more than $10 billion per annum.

IFC to Buy into Burkina's Onatel

The International Finance Corporation (IFC) is to purchase up to 5% of Burkina Faso's telecom operator Onatel in an effort to support an ongoing IPO. IFC,  the World Bank’s private sector lender, in a statement said it would take on a stake of up to 5% by buying any unsubscribed shares.  The IPO begun on 22 December 2008 and closes on 31 January 2009.

Onatel intends not to displace any private investors.  Should all shares be subscribed to, according to IFC, the government will sell it a 3% stake.

Currently, Maroc Telecom has 51% shares in Onatel, which stake it acquired in 2006 when the government embarked on privatization of the network.  In the IPO, Burkina Faso's first ever, the government is offering a further 20% stake

IFC is also working closely with the Burkinabé government to improve the legal and regulatory environment and make it easier for entrepreneurs and private businesses to operate and contribute to economic development, according to the statement. In fiscal 2007, IFC invested $8.5 million in the country. On a broader scale, IFC is increasing its investments in Africa, particularly in the poorest countries and regions where the private sector has played a limited role in economic development thus far, the statement adds.