Neotel Launches Prepaid Broadband

South African telco Neotel has launched pre-paid broadband services on its network, it has reported.

Branded ‘NeoConnect Lite Pre-paid’, the service incorporates voice telephony, SMS and basic internet connectivity. The service will be delivered over Neotel’s fixed-wireless service. Utilising a NeoConnect Lite desktop phone, which doubles up as an internet access device, NeoConnect Lite Pre-paid supports peak data speeds of 156kbps, although Neotel have clarified that realistic speeds will be between 50kbps and 70kbps.

The company confirmed that it is currently developing pre-paid services for its NeoConnect Prime and NeoFlex products. Wandile Zote, head of corporate communication at Neotel commented: ‘For many South Africans, the ability to choose pre-paid as a payment method is not just a lifestyle option - it's an economic necessity’. Neotel first signified its intention to launch its pre-paid broadband service in March 2010.

Virgin Mobile To Use Cel C's HSPA+ Network

Virgin Mobile South Africa is planning to launch its own mobile broadband service using Cell C’s HSPA+ network, Cell C has confirmed. Since launch, Virgin Mobile South Africa has been piggybacking on Cell C’s network to provide voice and data services. 

Cell C expects to cover 34% of the South African population with its 900MHz HSPA+ network by end-2010 and aims for 67% population coverage by mid-2011.

Virgin Mobile has not yet announced a launch date for its HSPA+ services, but any time frame will be dependent on Cell C’s own commercial launch; it is currently trialling the network in six cities.

Virgin Mobile’s Chief Strategy and Marketing Officer Jonathan Newman promised that consumers can expect ‘the best value for the cellular services that our subscribers use the most’. He added: ‘So expect simple, market challenging broadband offerings designed to meet the real needs of savvy South African consumers’.

Virgin Mobile South Africa is a joint-venture between Sir Richard Branson's Virgin Group and Cell C. It launched in 2006.

Malawi's G-Mobile Starts Building Towers

Malawi’s third mobile operator licensee, G-Mobile, has started deploying infrastructure for a wireless network, reports local newspaper The Nation.

The news follows a move by the country’s regulator, the Malawi Communications Regulatory Authority (Macra), to fine the operator USD6.9 million in May in light of its failure to roll out a network.

G-Mobile's director of administration Harold Myaba said that the company is negotiating the fine with Macra. ‘A lot has been happening behind the scenes that people didn’t see. It’s now starting to show,’ said Myaba.

When G-Mobile does finally launch it will compete against Telekom Networks and Zain, who between them claimed 2.7 million subscribers at the end of March 2010, in a country whose population is more than 14 million.

Angola Telecom Goes Digital In Kwanza SUl Province

Angola Telecom has switched on a new section of its digital fixed line network with fibre-optic backbone in Angola’s central Kwanza Sul province, connecting the eight district headquarters in the region.

The EUR18 million (USD24 million) project was funded by the Italian government in participation with the Angolan state, and has so far increased the number of fixed telephone lines in usage in the province from 2,000 to 10,000, after connecting in a first phase the districts of Sumbe, Porto Amboim, Amboim, Conda, Cela, Seles, Kibala and Libolo.

Wananchi Gears to Roll Out in Nine Countries With Cisco Deal

Kenyan ISP Wananchi Online has signed a contract with US technology solutions firm Cisco to rollout triple-play services across nine countries in East Africa. The deal is supported by East Africa Capital Partners and Viscous Capital, a wholly-owned subsidiary of Cisco.

Wananchi Online, which claims to be the only triple-play operator in East Africa intends to tap into markets in Kenya, Uganda, Tanzania, Rwanda, Burundi, Malawi, Ethiopia, Sudan and Zambia. The contract will see Wananchi Online deploying Cisco's integrated end-to-end network technology solutions - encompassing its ‘Borderless Networks’ and collaboration and data centre virtualization solutions.

Wananchi intends to extend a backhaul and last-mile fibre network across Nairobi and Mombasa in Kenya and Dar es Salaam in Tanzania. It will also build a WiMAX wireless network to provide uncapped internet access in smaller urban centres in Kenya.

The company will supplement its WiMAX and fibre offerings with VSAT services for small and medium businesses, particularly in remote locations in East Africa. Its long-term plan is to take fibre to the smallest towns in the region. East Africa Capital Partners’ Richard Bell has admitted that Wananchi is keen to develop a network in South Africa too, but: ‘South Africa is still a very closed and regulated market. East Africa has leapfrogged ahead of South Africa. If we could get a licence to build a cable network in South Africa, we’d be there in a second.’

Mark Schneider, chairman of the Wananchi Group commented: ‘The entertainment market for both home and corporate customers in Africa as a whole continues to be reshaped in light of technological advancements and new industry partnerships. The Wananchi Group's key objective is to expand our portfolio and enhance our commercial proposition, revenues and reputation. Cisco will help us to continuously deliver the necessary technology enhancements to our infrastructure to serve our ever-growing customer needs and remain at the forefront of delivering new and innovative services to our customers.’

Executives at Wananchi and Cisco said that the cost of international bandwidth in the region is now as cheap as it is anywhere in the world - thanks to the recent launches of EASSY, SEACOM and TEAMS submarine cables – making this type of increased investment possible.

Asia Now Leads in 4G Users

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The Asia-Pacific region has overtaken North America as the home to the largest number 4G broadband wireless subscribers. According to figures from TeleGeography’s 4G Research Service, there were around 1.7 million pre-WiMAX and WiMAX customers in Asia at the end of March 2010 compared to 1.4 million in the US and Canada. With the global 4G subscriber total standing at more than 5.7 million, the Asia-Pacific region now accounts for 29% of the overall market, up from 22% a year earlier and just 6% at the end of 2006.

Although all areas are experiencing 4G subscriber growth, WiMAX technology is proving particularly attractive to operators in Asia. It is relatively cheap to deploy and can bypass the last-mile fixed access networks, which in many cases are still dominated by the incumbent operators. TeleGeography analyst Peter Bell commented, “There is massive potential for high speed internet access in Asia, and WiMAX broadband wireless networks are witnessing strong demand. Growth is coming not just in developing markets like India, but also in more developed markets such as Japan where broadband internet penetration is already relatively high.”

Eastern Europe is the third largest 4G market, with approximately 1.1 million subscribers at the end of March 2010. Growth in Eastern Europe has been driven by operators such as Yota in Russia. While Yota plans to convert their networks from WiMAX to Long Term Evolution (LTE) cellular technology in the future, that migration is still some way off, giving WiMAX technology an opportunity to establish a strong market presence in the meantime.

The 4G Research Service is TeleGeography’s online database of the LTE and WiMAX industry. The service tracks LTE and WiMAX competition and deployments in more than 140 countries, and profiles more than 650 companies that operate or are planning 4G networks.

To find out more and to download detailed product samples, please visit http://www.telegeography.com/product-info/4g/index.php.

To speak with an analyst, please contact us at +1 202-741-0042, or email press@telegeography.com.
Source: TeleGeography's 4G Research Service

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’.

Cell C HSPA+ Tests Yielding "Positive Results"

Cell C, South Africa’s third largest cellco by subscribers has announced that tests for its new HSPA+ network are currently underway in six cities, and the results are ‘very promising’. More than 1,300 base stations, located in six major cities, have already been converted to HSPA+ using the 900MHz frequency band, and CEO Kelly Reichelt has promised that Cell C will launch its new network on a city-by-city basis, rectifying any potential problem areas as it goes along. Cell C will eventually upgrade 5,200 bases stations to the new platform. Cell C expects to cover 34% of the South African population with its HSPA+ network by end-2010 and aims for 67% population coverage by mid-2011.

Although MTN has already launched a commercial 21Mbps HSPA+ service, Cell C aims to be the first South African operator to rollout HSPA+ across its entire network. It took Vodacom almost five years to achieve 50% 3G population coverage using the 2100MHz band, whilst Cell C’s strategy to use the 900MHz frequency should make it easier for the cellco to reach rural customers. According to Reichelt a single HSPA+ 900MHz transmitter can cover a three to five times larger area than those using the higher band.

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.

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’.

Kenya Extends SIM Registration Deadline

The Kenyan government has officially extended the deadline for SIM card registration to 31 August 2010, in order to give Kenyan mobile phone users more time to comply with the ruling.

The exercise, which began on 21 June, has so far seen 12.4 million subscribers register their details, equivalent to a 62% compliance rate. Dr Bitange Ndemo, Information and Communication Permanent Secretary, said that the extension was necessary because operators had expressed ‘dissatisfaction’ over the low compliance figures in rural areas. Dr Ndemo commented: ‘It was decided that because we have not been able to reach the rural interior, where most of our people have mobile phones, we would extend this by another 30 days’.

Dr Ndemo asserted that the Communications Commission of Kenya (CCK) would be intensifying its registration campaigns in such areas, warning that no further extensions would be issued. Subscribers who fail to register their SIM cards will have their lines disconnected.

As at the original deadline (30 July) 71% of Safaricom’s subscriber base (or 11.3 million) had registered, 54.2% of Zain Kenya customers (one million), 7% of Essar Telecommunications Kenya (ETK/Yu) subscribers (110,013) and 4% of Orange customers (36,907).

MTN Inks Broadband Deal With Intel

South Africa's MTN Group has signed a Memorandum of Understanding (MoU) with US communication giant Intel, which will see the two companies collaborating to accelerate the deployment and penetration of broadband access in Africa and the Middle East.

The collaboration covers a wide range of initiatives, including: increased WiMAX deployment, affordable PC bundles for ordinary African consumers and entrepreneurs and the introduction of cost-effective internet browsing devices.

The statement also pinpoints a joint effort by the MTN Foundation and Intel Education's corporate social responsibility department to equip students and teachers with technology skills. Further, Intel's venture capital division, Intel Capital, and the MTN Group will also invest in emerging technology companies that are innovative and demonstrate a potential for advancing the ICT sector by developing products that contribute to solving typically African business and social problems.

Intel sales and marketing Vice President Gordon Graylish commented: ‘Strategies developed by MTN and Intel to connect the next generation of broadband users in Africa and the Middle East were a perfect fit, which is why we went into discussions to collaborate. Both companies have expertise in different aspects of ICT deployment and together we can accelerate bridging the digital divide on the continent. In this way we can accelerate Africa's entry into the 21st century knowledge and digital economy which will give its citizens economic opportunities similar to those in developed countries’.

Ghana Says Glo Is Free To do Business

Ghana’s Business Day newspaper quotes the Minister of Trade and Industry, Hanna S Tetteh, as saying that Ghanaian start-up Glo Mobile Ghana is ‘free to do business in Ghana’, hopefully ending long running speculation on its Nigerian parent, Globacom’s, future in the country.

In May this year Nigeria-based Globacom which is itself majority owned by Nigerian petrochemical firm Conpetro, a venture of the entrepreneur Mike Adenuga, threatened to exit Ghana in the face of what it termed ‘interests’ seemingly hell-bent on sabotaging its nationwide launch plans.

At the time an unnamed source claimed that since Glo Mobile was awarded its GSM frequencies by the National Communications Authority (NCA), it has faced obstacles in terms of seeking approval for the swift deployment of its base stations, an encroachment on the frequencies it was awarded by the NCA and the repeated vandalism of its advertising billboards.

However, the minister has told Business Day that all obstacles to the telco’s operation in Ghana have now been removed. ‘To the best of my knowledge from the communications authorities, there were two issues with regards to Glo. The frequency that they were assigned to was not available because it was being partially used by the national security apparatus. But that frequency has been available to them since January, and so at the moment if they want to start their business it is possible for them to do so,’ she said.

Tetteh also went on to clarify the issue of Glo’s problems in securing permits to erect telecoms towers. ‘There was no ban on Glo,’ she said. ‘As at last year, we put a ban on the erection of new telephone masts. We did this because of the quality of the infrastructure and the hazardous way they were being put up in all sorts of locations.’ As such the minister claims the ban was on the industry as a whole and not designed to single out the would-be newcomer.

Starcomms In New Roaming Servive

Nigerian fixed-wireless operator Starcomms has announced the launch of an inter-standard roaming service allowing the company’s CDMA subscribers to roam on the networks of both CDMA and GSM companies in 221 countries across the world.

The new roaming service offers the operator’s customers seamless access to international mobile roaming on all wireless technology networks, greatly expanding Starcomms’ network coverage outside of Nigeria and simplifying the roaming experience of customers travelling abroad.

The launch was made possible through the signing of an agreement with hub-based mobile applications exchange solutions provider MACH, and inter-standard and converged solutions provider Accurius, earlier this year. The vendors’ solutions offer turnkey interoperability between wireless technologies, including CDMA, 1x EV-DO, GSM, GPRS/UMTS, WiFi, WiMAX and, in the near future, Long Term Evolution (LTE).

‘It has been our endeavour to provide our customers with the best services and our focus in providing international roaming opportunities is not just about the service but about the quality of the customer experience whilst roaming with their Starcomms service,’ Tushar Maheshwari, the CCO of Starcomms, commented, adding: ‘From now on we will ensure that our customers who have cause to travel outside Nigeria feel at home with all their contacts having access to them seamlessly.’

FT 'Planning to Buy Meditel'

Reuters reports that France Telecom (Orange) is in ‘advanced’ talks with the owners of Morocco's second largest mobile operator Medi Telecom (Meditel) to acquire a 40% share in the company.

Moroccan business weekly Acutel wrote over the weekend, ‘It is official. The negotiations between the owners of Meditel, CDG and Finance.com, and Orange are at an advanced stage,’ and went on to speculate that the stake could be priced at around EUR650 million (USD849 million). Spain's Telefonica and Portugal Telecom last year sold their respective stakes of 32.2% each in Meditel to the operator's other shareholders, Moroccan private investment group Finance.com and state investment vehicle Caisse de Depots et de Gestion (CDG) for USD1.15 billion in total.

Whilst the domestic owners have declared they can run the company alone, they have also indicated their openness to a range of options including a stock market listing and a partnership with a new, major player strategic investor. In March 2010 it was rumoured that the UAE’s Etisalat had ‘agreed’ to acquire a 45% interest in Meditel, which offers cellular, broadband and fixed line services, but a deal did not materialise.

TeleGeography's GlobalComms Database notes that France Telecom sold its Moroccan ISP Maroc Connect (Wanadoo) in August 2004 to the CDG and ONA groups, before ONA bought out CDG in 2005; Maroc Connect became Wana, which launched the successful fixed-wireless and cellular brands Bayn and Inwi, along the way attracting a new foreign investor, Kuwait-based Zain Group.

Vodacom Launches Mobile TV Service

South African cellular operator Vodacom has teamed up with On Demand Group to launch mobile TV subscription on-demand services to its 3G user base.

The companies claim that the ‘TV:On Demand’ service, including TV series, music videos and other content, is the first of its kind available in Africa, allowing mobile users to watch what they want on demand, at any time. A monthly subscription costs ZAR75 (USD10.33), or a week’s access can be obtained for ZAR20.