Vodacom Names New CFO

South Africa based Vodacom has announced that Mr Rob Shuter is to take
over as Chief Financial Officer of the Group and director of the Board
with effect from 1 July 2009. He replaces Mr Johan van der Watt, who
has been the acting Chief Financial Officer since Leon Crouse resigned
last year.

Rob is a Chartered Accountant with over 17 years senior financial
experience. He spent 9 years with the Nedbank Group holding various
director positions, latterly as Managing Director of Nedbank Retail.
He was formerly the Chief Operating Officer of Computer Configurations
Holdings and Head of Investment Banking at Standard Corporate &
Merchant bank. In addition to core financial functions, Rob will also
assume responsibility for company secretarial, investor relations,
internal audit and business development.

Mr Pieter Uys, Chief Executive Officer of Vodacom Group in welcoming
Rob to Vodacom said "I am delighted we have appointed Rob to the
position of Chief Financial Officer at this important time in the
history of the Vodacom Group. A company the size of Vodacom Group
demands an experienced and effective strategic finance executive such
as Rob."

Vodacom listed on the Johannesburg stock exchange last month following
a deal for Vodafone to increase its holding to 65%, while fellow
shareholder, Telkom divested its stake to a stock market listing.

Kenya Cuts VAT Tax on Mobile Phones

The cost of buying a mobile phone in Kenya has dropped sharply after
the government waived the import duty on mobile phones. Kenya's
Finance Minister Uhuru Kenyatta cut the 16% VAT on new phone handsets
in the government's budget statement - along with reducing import
duties on a whole range of other products.

"Let not anyone make it seem like it will not be done. It is in our
interest to do it, which is why we were lobbying. Nokia and its
partners are already implementing this," Nokia East and Southern
Africa Communications Manager, Dorothy Ooko told the Daily Nation
newspaper. "Gray products will no longer to be brought into our
country. The playing field is now level for all. The penetration rate
will double and the GDP will grow. It was a win-win for everyone," she
added.

However, a 10% tax on airtime vouchers remains in place, so the cost
of calls and text messages themselves remain the same price.

The GSM Association has long called for a lowering of taxes on mobile
phone handsets and airtime, arguing that the lower costs boosts the
user base and hence leads to a net increase in revenue for
governments.

A recent report from the GSMA said that mobile subscribers across East
Africa are taxed at some of the highest levels world-wide. Kenya,
Uganda and Tanzania impose mobile-specific taxes which when added to
VAT can result in their respective consumers facing taxes as high as
30% in Uganda and Tanzania, and 27% in Kenya, considerably the highest
rates in Africa (and the among the highest across the world as a
whole).

Mozambique Plans to Partially Privatize mCel

Mozambique will partially privatize state-owned mobile operator mCel.
The government will initially sell a minimum stake of 5 percent in
mCel, Paulo Zucula, minister of transport and communications told
independent newspaper O Pais.

According to Zucula, the initial stake will be exclusively available
to Mozambique investors, but subsequent stake sales will be open to
international buyers as well. mCel is currently developing a sale
proposal, which will be submitted for government approval within a
month.

The proposal will include the price per share, the amount of the stake
to be sold, as well as details on the sale procedure. mCel reported
around 2.3 million customers at end-2007, and a net profit of around
USD 13.2 million.

The privatization of mCel was scheduled for roll-out in 2008, however,
the process was delayed due to organizational problems, Zucula added.
The minister also said the government aims to boost mobile
communications in Mozambique, and gradually withdraw from the market.

Malawi Regulator Clashes With Zain Over High Taxes

Malawi's Communications Regulatory Authority (Macra) and the local arm
of Zain have clashed over plans to lower phone tariffs in the country.
The regulator wants to open the market up to more networks, while Zain
blames high taxes and says increased subscribers would lead to lower
tariffs.

"We believe more players would increase competition on the market and
this will force the companies to reduce their tariffs for them to
remain competitive. We are sure that consumers would be the ultimate
beneficiaries from the increased numbers of players on the market,"
Macra Acting Director General Mike Kumtiya told the Daily Times
newspaper.

The country currently has two mobile networks, Zain and former
incumbent, (Telekom Networks Malawi) TNM - while a two more networks
have been licensed. Globally Advanced Integrated Networks (Gain)
expects to launch its network within the next couple of months, while
G-Mobile is still waiting to announce a launch date.

Zain Malawi's Managing Director Fayaz King countered the claim, saying
that "Imagine at Zain, we have mounted a network that could take up to
5 million users but we currently have only 1.5 million customers. We
believe that if at least 3 million people started using the Zain
network, we could start enjoying the benefits of economies of scale
and we can be able to extend the same to consumers through reduce
taxes,"

The Mobile World subscriber database estimates that Malawi ended Q1
'09 with just over 2 million subscribers - representing a population
penetration level of just 15%. Zain is the market leader with 66.7% of
the customer base, with Telecom Networks Malawi (TNM) taking the
remainder.

"EASSy Project on Course"

The East African Submarine Cable (Eassy) management committee has
assured East Africans that it will not reschedule the timeframe of
finalising the project that will help to bring reliable and affordable
communication in the region.

A statement released after the committee�s meeting in the Comoros said
the ongoing undersea telecommunication infrastructure project would be
completed towards the end of next June as planned.

The undersea cable system, linking East Africa to the rest of the
world with a fibre optic network, is being constructed by Alcatel
Lucent.

"This project remains on track for completion as planned and the
upgrading of telecoms infrastructure in East Africa will lead to a
welcome increase in the development of the economy and empowerment of
the region," Zantel Tanzania's CEO, Mr Noel Herrity, said in a
statement.

Comoros President Abdullah Ahmed Sambi chaired the meeting.

Marine survey work that commenced in December, last year, has been
completed and all permits at the landing stations have been obtained.

The work to manufacture cables for the project started in February,
this year, and has been completed by 40 per cent.

EASSy is a consortium of 27 operators that seek to build an open
access to the international fibre optic submarine cable. They include,
among others, Tanzania's Tanzania Telecommunications Company Limited,
Zantel and Vodacom.

The nine cable landing stations namely � Port Sudan, Djibouti,
Mogadishu, Mombassa, Dar es Salaam, Moron, Toliary, Maputo and
Mtunzini � are in final stage of construction.

Zim Cabinet Approves Privatization of TelOne

Zimbabwe's cabinet has approved a commercialisation and privatisation
plan encompassing state-held assets in industries including telecoms,
energy and infrastructure. Minister of Finance Tendai Biti told the
Zimbabwe Independent that the approved plan took into consideration
timing, overall objectives and appropriate processes to be used,
whilst state enterprises had been divided into categories depending on
their potential and current state.

The category of high value, high potential businesses (but needing
capitalisation and better management) includes national PSTN operator
TelOne, power stations and the national railway operator, according to
the minister. It is estimated that the country needs USD10 billion to
carry out necessary transformations to revitalise its economy, but has
so far raised around USD1 billion. CommsUpdate previously reported
that the government intended to put state-run mobile operator NetOne
up for sale, but last month it was revealed the sale attempt would be
suspended until the global economy improved.

Also in the news, Zimbabwe's Minister of Information and Communication
Technology Nelson Chamisa has ordered TelOne to make heavy cuts to its
fixed line tariffs and to match billing systems used in other
countries in the region. On Thursday Chamisa issued a ministerial
order barring the telco from cutting off any customers unable to pay
their bills, until the matter is resolved by cabinet.

Zain Kenya Introduces Toll-Free Calling

Zain Kenya has launched a toll free service, Zain 0800, that will
allow customers to call corporate clients without being charged. By
calling through the Zain 0800 service, the cost incurred from all the
incoming calls will be borne by the corporate client.

The calls rates will be billed to the corporates at different rates,
between KES1 and KES5, depending on the specifications chosen by each
organisation. The service, which is only accessible to Zain customers,
will be limited to local calls only.

Corporates who subscribe to the Zain 0800 service will be accorded a
six digit number of their choice preceded by the 0800 prefix. "This
service will enhance interaction between corporates and their
customers and also increase response times," said Mr. Rene Meza,
Managing Director Zain Kenya.

"The market response to the various value added initiatives has been
very promising. The growth in mobile telephony in Kenya is quite
fast-paced as customers continue to seek for new applications and uses
available in the sector," Mr. Meza said.

Since rebranding late last year, Zain Kenya has been focusing on
rolling out value added services in a bid to build up its market
share. During the period, Zain has launched an m-commerce platform
Zap, a caller Ring Back Tone service, Ziki and a loyalty programme
dubbed Rewardz.

"MTN & Bharti Airtel Could Merge Operations by Mid-July"

Bharti Airtel, the Indian mobile operator and MTN, the South African
mobile group could experience a rise in debt levels taking the
combined total to USD 6.3 billion if the deal goes ahead. Bharti's
debt is likely to hike to around USD 3.6 billion and MTN's to around
USD 2.7 billion, although Bharti is likely to see additional net debt
of USD 4 billion and MTN an additional USD 2.9 billion.

The deal on the merger between the two giants could be inked by
mid-July. "The two parties are conducting due diligence and at this
point there are no concerns about the deal being derailed," a source
revealed. "If it continues like this there should be a final agreement
by mid-July, if not earlier."

Econet Zimbabwe Enters South Africa With Cell C Partnership

Econet Wireless, the Zimbabwean mobile operator, has sold nearly
100,000 starter packs in the South Africa. The Econet Call Home SIM
card offers low-cost calls between South Africa-based Zimbabweans and
their loved ones in Zimbabwe. The Call Home SIM is powered by Cell C's
network in South Africa. Additional to the lowered rates to Zimbabwe,
it offers free calls to other Call Home Sim subscribers when they
recharge for ZAR 10 or more. The card is available at a retail price
of ZAR 25.

Econet has also launched a service called Zim Call Me Backs which
allows Econet subscribers in Zimbabwe to send free Call Me Back
messages to Call Home subscribers in South Africa.

Nigeria's Visafone Plans Major Expansion of its Wireless Network

Nigerian newspaper The Guardian reports that Visafone Communications,
Nigeria's fourth largest mobile operator by subscribers, will spend
between USD300 million and USD400 million over the next two years on
expanding its wireless network. According to the report, Visafone
plans to plough the majority of the funds into deploying a 3,000km
nationwide backbone covering all of Nigeria's 36 states.

Construction of the network will begin in the south-east, and then
move towards the south of the country, before being extended to the
city of Lagos in the south-west. Deployment of the cable will then
head north via the capital Abuja.

In a separate story, Visafone has recently upgraded its network to
bring its core switch capacity to six million subscribers, aimed at
improving service quality. The upgrade will also ensure that the
cellco can continue its rapid expansion of network coverage and
customer acquisition without fear of congestion on the network. At
present, Visafone covers 170 towns and cities in 22 states, though the
company's CEO Ninan Thomas revealed plans to provide coverage to all
36 states by 2011.

Ericsson Wins Deal to Manage Zain Nigeria Network

Middle East and Africa operator Zain and Ericsson have entered a
five-year managed services agreement under which Ericsson will operate
Zain's nationwide GSM/WCDMA networks in Nigeria. Ericsson will be
responsible for the network and field operations, including
optimization, third-party vendor management for Zain's networks and
business support systems.

As part of the agreement, about 450 employees will be transferred,
under their existing terms and conditions of service, from Zain to
Ericsson, where they will undergo further training in the latest
wireless technologies. The contract gives Ericsson its first major
managed services footprint in Africa, and reflects its continued focus
on high-growth markets, where most subscriber growth is expected to
take place during the next five years.

Zain's agreement with Ericsson is expected to improve network
availability and capacity, make the most of Zain's network investment
and reduce operating costs for its 4,000 sites across Nigeria. The
contract is part of the mobile operator's Drive11 strategy to reduce
operating costs and further subscriber growth.

Telecel Zimbabwe Plans Major Expansion

Zimbabwe's smallest mobile network operator, Telecel says that it is
planning for a significant expansion of its network coverage. The
company says that it has already boosted capacity thanks to upgrading
existing base station towers. Telecel Zimbabwe is owned by Egypt's
Orascom Telecom.

The company recently released an additional 100,000 SIM cards onto the
market following the network capacity upgrade.

"We will be targeting selected new geographic sites to extend out
geographic coverage to most highway corridors, service centres and
rural areas in addition to all major cities, towns, commercial and
mining centres. (This) will result in even more lines being released
onto the market," the company said in a statement.

The SW Radio Africa news recently said that the cost of SIM cards has
fallen to around $25 each.

The country currently has three mobile network operators. According to
figures from the Mobile World analysts, Telecel is estimated to have
ended last year with around 232,000 subscribers - representing a
market share of around 15%.

South Africa's MTN Group was recently rumoured to be interested in
taking a 60% stake in Telecel.

Nigeria Gov't Takes Over Control of Nitel

The Nigerian government has taken back control of the country's former
telecoms monopoly Nitel, citing a lack of investment and unpaid debts.

Local firm Transcorp paid $500m (£304m) for a 51% stake in Nitel in 2006.

But state officials said Transcorp had breached its contract and the
government would control the company until a new investor was found.

Nitel has been hit hard by a decline in both fixed line and mobile
phone subscriber numbers.

The government said Transcorp had failed to meet its obligations to
invest 8.9bn naira ($60.7m) within 100 days of the takeover and had
racked up debts of 17bn naira.

"The government is considering a technical board to manage Nitel until
a new core investor emerges," said Christopher Anyanwu, director
general of the Bureau of Public Enterprises.

Since 2001, Nitel has seen its number of fixed lines plunge from more
than 500,000 to about 100,000.

Subscribers to its mobile phone subsidiary Mtel have also fallen from
1.3m to a few thousand.

Former President Olusegun Obasanjo first tried to sell the firm in
2001 before Nitel bought its majority stake five years later.

Mobitel Picks Alvarion for WiMAX Network

Nigeria's Mobitel has contracted Alvarion to deploy a WiMAX network in
under-served areas throughout the country. Using Alvarion's BreezeMAX
solution in the 2.0 GHz, 2.2 GHz and 2.3 GHz frequency bands, Mobitel
will begin to offer voice and high-bandwidth data services, with the
key cities of Lagos, Port-Harcourt, Warri and Abuja being start
points.

Initial rollout of the WiMAX network is planned for Q3 2009, with
20,000 subscribers expected on the network during initial launch.
Alvarion will also provide a range of professional services including
system integration, network deployment, field maintenance,
configuration, training and local support services to ensure
successful delivery of the network.

"This is a great opportunity for Mobitel to bring broadband services
to remote parts of the country. The use of WiMAX technology together
with our existing fixed line network allows us the possibility to
offer converged services to our customers," said Johnson Salako,
President of Mobitel. "WiMAX provides a very good business case to
roll out broadband infrastructure with a much lower upfront investment
when compared to other technologies available in the market. Given our
ambitious goal for Nigeria we need a strong and reliable partner with
a proven track record to ensure our success and we believe Alvarion is
best suited to accomplish this."

During the second phase of the project, Mobitel and Alvarion will
expand coverage to 18 other states in the country, including Kano,
Kaduna, Oyo and Edo. The current population of Nigeria is estimated at
150 million people in 66 provinces with a very low internet
penetration rate of less than 1%.

FoneStarz Wins Deal to Manage Vodafone Egypt Downloads

Mobile content white-label supplier, FoneStarz Media has won one of its most significant deals and is now managing the entire content downloads portal for Vodafone live! in Egypt. The dual-language English and Arabic downloads service has allowed FoneStarz to vertically integrate games, ringtones, video and personalisation products like wallpapers, themes and Flash Lite into one fully managed storefront, using its content management and delivery system, Daius.

 

The second phase of the site will also involve FoneStarz managing the App Store for the rapidly growing Vodafone network, which has more than 17 million subscribers.

 

It's the first time the company has created an end-to-end mobile entertainment solution for an operator. FoneStarz will bring its own licensed content and will also host, manage and aggregate content using Vodafone licenses, both local and from Group.

 

Dave Moreau, Chief Executive Officer, FoneStarz Media, said: "This co-ordinated storefront is at the heart of what we are trying to achieve as a Company. We firmly believe that by pulling together all the different mobile entertainment categories under one properly managed store we can significantly improve the mobile content experience for customers.

 

"Vodafone Egypt has given us the chance to prove this and in a highly exciting, dual-language market it's a challenge we have relished. Now we have to make sure all the best retailing practices we have developed in the last seven years in this business are put to work to make this downloads portal a huge success."

 

FoneStarz already works with Vodafone elsewhere, managing the ringtones and pictures business for them in the UK and other on-deck services in Ireland, Australia, New Zealand and South Africa.

 

The company has recently signed up five deals with Hutchison 3 to manage on-portal categories in the UK, Ireland, Sweden, Denmark and Austria.

Essar Acquires GSM Licence in Uganda

A unit of Essar Group has won a licence in Uganda to build a USD 200 million GSM phone network, India's Mint newspaper reported. Unlisted Essar Teleholdings, which obtained a similar licence in Kenya last year, will own 90 percent of the venture, the paper said, quoting a group official.

The company said it has paid USD 3 million for frequency charges to the Uganda Communication Commission and will launch the service in August in a joint venture with Kenyan Telecom Uganda, a local telecom company. It quoted Srinivasa Iyengar, managing director of Essar Telecom Kenya.

Uganda has six mobile phone operators, of which MTN is the market leader with a 45 percent share. Essar Teleholdings has also decided to bid for licences in Tanzania, Congo and Cameroon, the paper said.