[Kictanet] Kenya special: The opening of the market kickstarts a stagnant internet sector

[alice at apc.org]

Balancing Act's News Update 285 (11th December 2005)
> ________________________________________________________________________
> Coming soon: Apple in Africa and Nigeria's Omatek on computer assembly
> ________________________________________________________________________
> IN THIS ISSUE:
>
> Top Story: Kenya special
>
> - THE OPENING OF THE MARKET KICKSTARTS A STAGNANT INTERNET SECTOR
>
> - TELKOM KENYA CLOSE TO THE FINANCIAL BRINK IF REDUNDANCY PACKAGE NOT 
> SORTED
>
> - KENYA’S SKYWEB TECHNOLOGIES STARTS UP CALL CENTRE USING VOIP
>
> Telecom News
>
> - SOUTH AFRICA - SNO GETS ITS LICENCE AT LAST
>
> - NIGERIA:NITEL EMPLOYEES GO TO COURT TO TRY AND STOP SAT3 SPIN-OFF
>
> - VIRGIN MOBILE INKS LONG-AWAITED DEAL WITH SOUTH AFRICA’S CELL-C
>
> - GHANA: GHANA TELECOM AND AREEBA SETTLE INTERCONNECT DISPUTE
>
> - ZIMBABWE: GOVT MAY CANCEL TELECEL'S LICENCE, OUST ITS CHAIRMAN
>
> - CABO VERDE TELECOM'S MONOPOLY ENDS JANUARY 2006 AS CAPE VERDE 
> UNILATERALLY LIBERALIZES
>
> Internet News
>
> - SOUTH AFRICA: ADSL GAME UP FOR TELKOM
>
> - TANZANIA: FBME BANK TRAINS 69 ON INTERNET BANKING
>
> - AFRICAN BUSINESSES SHOULD BUY LOCAL DOMAINS, SAYS MUTI
>
>
> - MTN RWANDA TO PROVIDE INTERNET AND VOIP
>
> Computer News
>
> - ORACLE GLOBAL SUPPORT CENTER IN EGYPT NOW OPEN FOR BUSINESS
>
> - GHANAIAN COMPANY RELEASES FIRST LOCALLY PRODUCED CHILDREN'S EDUCATIONAL 
> SOFTWARE
>
> - CISCO SYSTEMS SEES MASSIVE POTENTIAL IN AFRICA
>
> - SOUTH AFRICA: CUTTING PIRACY WOULD BOOST ECONOMY
>
> On the Money
>
> - EGYPT TELECOM IPO LOOKS LIKE BEING HEAVILY OVERSUBSCRIBED
>
> - KENYA’S CELTEL RAISES KS4.5 BILLION FROM BOND MARKET
>
> - KENYA’S WANANCHI TO GO FOR IPO IN MID 2006
>
> - SA’S CYBERHOST BUYS COMPANIES TO ACQUIRE WEB-BASED SOFTWARE
>
> - BPO INVESTMENT IN SOUTH AFRICA HITS RECORD HIGH
>
> Web and Mobile Data News
>
> - DIRECTOR OF EGYPTIAN OPPOSITION SITE DETAINED BY STATE SECURITY
>
> ADVERTISEMENT:
>
> Q-KON - Your wireless & satellite IP connectivity provider for Africa
>
> Q-KON is a 1st tier provider of IP access solutions and services for the
> African market. We provide "best-of-breed" solutions and services for 
> Cyber
> Cafe's, ISP's, Regional Telco's, Private Industries and Government. Our
> solutions and services includes:
>
> 1) Infrastructure Networks:
> - Microwave & digital wireless networks
> - Fixed wireless access networks
> - Regional VSAT networks
>
> 2) IP Satellite Access Services:
> - Shared, CIR, Dedicated and Bulk access circuits
> - Ku & C-band services throughout Africa
> - Full managed services
>
> Contact us @ www.qkon.com <http://www.qkon.com> / enquiries at qkon.com
> Tel: +27 12 6650052
> ______________________________________________________________
> TO SUBSCRIBE:
>
> If you want to subscribe to News Update, either in english or french go 
> to:
> http://www.balancingact-africa.com/mailing_list/subscribe.php
>
> If you want to unsubscribe to the english edition, send a blank e-mail to:
> englishlist-unsubscribe at balancingact-africa.com
> ______________________________________________________________
> TO CONTACT US:
>
> Russell Southwood, Balancing Act, 71 Crescent Lane, London SW4 9PT
> Tel/fax: + 44 20 7720 5993 Cell: + 44 7973 561987 E-mail:
> editorial at balancingact-africa.com
>
> To ring or IM using Skype at no cost: news_balancingact
> Pour nous contacter gratuitement via Skype: news_balangincact
>
> - > WEEKLY PUBLICATION DEADLINE: 12 pm GMT Sunday
>
> - > PAID FOR ADS? MAIL US FOR A RATE CARD:
> advertising at balancingact-africa.com
>
> ADVERTISEMENT:
>
> GILAT SATCOM - Your Partner of Choice for Communications
>
> Gilat Satcom offers a wide range of connectivity services, through direct 
> US and European connections to multiple POPs. Bandwidth from 32Kbps shared 
> to 60Mbps dedicated or burstable service is provided through multiple 
> satellite transponders. Gilat Satcom provides backbone services to ISPs, 
> PTTs, corporate customers and Cyber-Cafes connected to local ISPs.
>
> Our products are:
>
> · Dedicated or Burstable satellite backbone connectivity.
>
> · Managed VSAT/Hub, C Band 1.8m antenna, remote terminals connected to 
> hubs in the USA and in Europe for direct small links connection to the 
> backbone.
>
> · Mobile Satellite Services – Voice and Data applications anywhere in the 
> world.
>
> · Voice over IP origination and termination on satellite and fiber links.
>
> · Global Satellite VPN links.
>
> · SAT3 fiber connectivity services.
>
> · Data Storage solutions to Banking, Oil & Gas, Telecom, Government and 
> Corporate customers.
>
> When you are in need for professional and cost-effective connectivity 
> services anywhere in the world , give us a call at:
>
> - Web Site: www.gilat.net
>
> - Email: info at gilat.net
>
> - Tel: +972 3 9255050
> __________________________________________________________________________
> TOP STORY: THE OPENING OF THE MARKET KICKSTARTS A STAGNANT INTERNET SECTOR
> __________________________________________________________________________
>
> The opening up of competition in Kenya has re-ignited interest in what 
> might otherwise have been a slowing market and it offers clues to what 
> might happen when wider competition is introduced in other markets in 
> Africa. Just back from a recent trip there, Russell Southwood seeks to 
> highlight significant emerging trends.
>
> Three things seem to be having a strong impact on the Kenyan Internet 
> market: the vigorous promotion of the local call internet number 9444 by 
> Telkom Kenya’s new subsidiary Jambo Telecom; the opening shots in the new 
> broadband service war; and the inclusion of VoIP services in the revised 
> ISP licences.
>
> These three things seem to be causing the market to separate out more 
> clearly into corporate and residential players and to be bringing about 
> the much anticipated consolidation. Wananchi’s merger with ISPKenya may be 
> just the start of the process. One sign of the mood of the market is that 
> the merged company has been approached by several other players wishing to 
> join the nuptials.
>
> If Wananchi can hold on to the subscribers of ISPKenya, it will have a 38% 
> share of the market, making it along with Africa Online the largest 
> residential player in the market. Both NairobiNet and SkyWeb Technologies 
> (see story below) have been looking at the call centre market and the 
> latter has started work in that area. The reason? The stagnation of the 
> dial-up market and the coming impact of broadband and VoIP on the shape of 
> the market.
>
> The corporate market is somewhere between 1500 and 2000 leased line 
> customers. About 30% of these customers are large national companies or 
> multinationals with the balance being small and medium-sized enterprises 
> (SMEs). There are three main private players in this space: AccessKenya, 
> Swift Kenya (owned by the Murali Group which also owns KDN) and UUNet 
> Kenya. For example, at last count UUNet Kenya had around 700 leased line 
> customers, while a smaller player like Interconnect has 250 customers. All 
> the residential players have some element of corporate business but the 
> numbers are in the tens: for example, SkyWeb Technologies has 40 leased 
> line customers.
>
> The move to include VoIP in the revised ISP licences give some idea of the 
> consolidation taking place. Last week we reported that eight licences had 
> been issued and the regulator expects to see that total go up to around 
> 20. Previously, there were 79 licence-holders for the old-style licence. 
> The new licence gives the regulator the right to inspect the equipment 
> being used by the ISP for VoIP and the industry harbours suspicions that 
> this may be used to block some players. The legalisation of VoIP has left 
> a number of ISPs floundering in strategic terms. Many simply do not have 
> the skills to get into the IP voice business and as a result will either 
> need to find a clear niche for themselves or get left behind.
>
> The impact of VoIP has begun to transform international call rates and 
> will continue to do so. As one industry player told us:”It will 
> revolutionise how people do business in Kenya. Why should a customer spend 
> 90 cents a minute to call Europe or the USA when Telkom Kenya is making 
> 75-80 cents from that call? If you’re a bigger corporate spending US$5,000 
> a month on telecoms, this will come down to US$7-800 a month. It will be a 
> big shot in the arm for our struggling export industries in terms of 
> competitiveness.” ISPs calculate that they will come into the market with 
> both corporate and individual user voice products that will offer 
> international calls to major destinations at between KS7-10 a minute.
>
> Seeking to fight fire with fire, Telkom Kenya is using its Huawei VoIP 
> gateway to offer a pre-paid, calling card service at US0.15 cents a minute 
> to most major international destinations. This service is aimed at the 
> individual customer who has largely deserted the incumbent for grey market 
> cyber-cafes. However, the grey market has responded by offering prices as 
> low as KS5 (US0.03.75 cents) a minute so the price pressure on the 
> incumbent is unlikely to relent. Also the mobile companies are themselves 
> likely to offer a similar VoIP service for international calls but 
> interconnect rates are making such a prospect rather slow-moving. As ever 
> in these discussions, Telkom Kenya holds most of the strategic 
> “high-ground”.
>
> Safaricom has been placing large ads pointing out to people that if they 
> receive international calls from local numbers or with no identifier that 
> these are “illegal” grey market calls and they should report them to the 
> company. Apparently there has been an increased volume of very low quality 
> calls going through the grey market to mobile users.
>
> But as one industry insider told us:”Everybody knows the large grey market 
> VoIP operations are being run by ‘influential’ people and (the regulator) 
> CCK is not stopping them.” So who are these ‘influential’ people? “People 
> who have connections to the politicians.” The regulator’s response is that 
> Telkom Kenya has an Anti-Fraud Department and this deals with “illegal” 
> operations of this kind.
>
> The 9444 service which offers internet access for the cost of a local call 
> is now being promoted heavily by Jambo Telecom, a newly created Telkom 
> Kenya subsidiary, which it is claimed will have a separate board and be an 
> unsubsidised, separate profit centre. It will combine the 9444 dial-up, 
> the broadband offering and the VoIP service described above. It is clearly 
> a strategy to retrieve something workable from the somewhat “competition 
> shell-shocked” JamboNet.
>
> In a market as price conscious as Kenya, a more widely promoted 9444 
> service is bound to hit the dial-up market. Customers may not be aware 
> that they will get little service support but may trade lack of support 
> for the cost of a local call. Sadly the negotiations to make this service 
> available to all ISPs equally broke down. So Jambo Telecom is almost 
> certainly offering predatory pricing and this and the recent broadband 
> pricing have both been challenged by the industry association, TESPOK.
>
> Luckily for Kenyan ISPs, the current broadband pricing – predatory or 
> not – is so high that it is currently a corporate niche product for SOHO 
> users. The US$170 entry level product would only really be of interest to 
> a very affluent individual customer but it will eat into the SME end of 
> the corporate market once download capacities are increased, as they 
> surely will be.
>
> Current broadband speeds – although an improvement on dial-up – would not 
> be recognised as broadband elsewhere. However capacity increases may not 
> also be accompanied by significant price falls until the EASSy fibre cable 
> is in place in 2007/8. Numbers of DSL subscriptions sold are in the 
> hundreds: for example, Interconnect has 150 subscribers. As elsewhere in 
> the world, the service has been plagued by installation problems as there 
> have not been enough trained installers.
>
> Furthermore the company has not been publishing its contention ratios: it 
> is probably in the region of 10/15:1 although it can go considerably above 
> that during busy parts of the day. Also it was providing less bandwidth 
> when it launched than it currently is. Although when challenged on the 
> lack of published contention ratios during a meeting on research on 
> consumers in the Internet and telecoms sectors held by IDRC last week, 
> Jambo Telecom’s newly appointed Head of Marketing Ahmed Musa assured us 
> that it would do so before too long. An industry player told us:”We have a 
> 32k downlink customer who tested the service and found it slower than his 
> existing service.”
>
> Those ISPs not able to resell the Telkom Kenya broadband service are 
> suspicious that the company is pursuing a “divide-and-rule” approach to 
> the ISP sector. Those who have been appointed – Interconnect and 
> Wananchi – feel that the company was simply trying to limit the fall-out 
> from its initial lack of installer skills and say that all will get a 
> chance to resell once these issues are resolved.
>
> For the newly legalised VoIP market to work effectively, there will need 
> to be equitable, cost-based interconnection agreements and easy access to 
> numbers. One player told us that it had applied to the Telkom Kenya 90 
> days ago for interconnection but had received no reply. It had also had a 
> similar discussion with mobile operators but had been told that 
> discussions could not begin until its licence had received final approval. 
> The regulator is receiving applications for numbers but the issuing of 
> them depends on judgements made about network size after the mandatory 
> inspection. So there will be plenty of grounds for time-consuming 
> arguments that allow Telkom Kenya to continue to exercise dominant market 
> power in key markets.
>
> Furthermore the whole interconnect issue may get caught up in “study 
> stasis”.One has recently received CCK board approval to look at mobile and 
> fixed prices. Whilst this is being dressed up by CCK as a look at whether 
> consumers are getting good value, it is actually simply an interconnect 
> study. Some operators claim that they are being “punished” by the current 
> interconnect regime.
>
> The most notable of these victims is Telkom Kenya which has large, 
> outstanding interconnect debts but it is not the only unhappy party. CCK 
> CEO John Waweru says:”We want to run the current interconnection regime 
> against international benchmarks and see whether we are out of line”.
>
> An equitable interconnection agreement will begin to put price pressure on 
> the national backhaul and local loop segments of the traffic in much the 
> same way that competition at the international level has done so.
>
> But CCK CEO Waweru noted:”Since the mobile companies came into being, 
> there have been no price reductions and there are high charges for calling 
> outside the user’s chosen network. It forces people to keep two cell 
> phones.”
>
> There has been talk of licensing a fourth mobile operator as the third, 
> Econet is still in the courts a year after its licence was awarded. But 
> Waweru maintains:”There is nothing I can do until the case is resolved. I 
> have no power to cancel the licence. It was a board decision. But there 
> are conditions and if you find the licence holder does not meet those 
> conditions, it can be cancelled.”
>
> The regulator has seen that many companies have sought to operate a series 
> of different licences concurrently through separate but linked companies 
> and has announced its intention to consolidate these different licences 
> into a single licence. These include: the Public Data Network Operator 
> licence, the local loop licence, the Internet backbone gateway operator 
> and the commercial VSAT licence. Broadly speaking, the industry is happy 
> with these changes and as the 60 day notice period expired a week ago, the 
> regulator will make the change once it has completed the terms and 
> conditions of the new licence.
>
> * TELKOM KENYA CLOSE TO THE FINANCIAL BRINK IF REDUNDANCY PACKAGE NOT 
> SORTED
>
> The redundancy package at Telkom Kenya continues to be one bullet the 
> politicians do not seem willing to bite. One source told us:”People are 
> sensitive to employment issues. The Government doesn’t want to be seen as 
> insensitive.” The difficulty is that as Telkom Kenya continues to pay 
> salaries as they fall due, the employees cannot see why they should be 
> sacked.
>
> One well-informed source said that the Government might adopt the approach 
> taken with Kenya Airways employees where it stopped paying the salaries of 
> those to be made redundant. After a few months of non-payment, the 
> employees, realising the vulnerability of their position, settled for less 
> than the full redundancy entitlement. But such a strategy requires strong 
> political nerves and the Government does not have much of a track record 
> on that score. Indeed the President and his new cabinet face choppy rather 
> than calmer waters ahead, a strong incentive to avoid difficult issues.
>
> So what options are there for paying for the redundancy package? 
> Apparently the company approached the World Bank who (not surprisingly) 
> told them to sell some of their assets. Vodafone has made an offer to the 
> Government for the company’s shares in Safaricom which it considers too 
> low: for which in part read that it’s too low to cover the redundancy 
> package. Although it has not yet responded, the Government is expecting a 
> higher offer or it will authorise sale of part of the shareholding on the 
> Nairobi Stock Exchange. Things will only really get sorted out once a new 
> Cabinet sits down to business and will be one of the first major decisions 
> for the new Minister, Mutahi Kagwe (see People below).
>
> But everyone is treading on very thin ice. Telkom Kenya has borrowed up to 
> the hilt and we understand the Treasury has forbidden further borrowing. 
> Although Huawei injected some working capital with its equipment package, 
> the company has stopped investing in capital re-equipment which can only 
> have disastrous consequences if things go on too long. There is date by 
> which the company will be heading for insolvency but for understandable 
> reasons those in the know are reluctant to name it. However, those close 
> to the issue maintain that the company has stabilised at KS16 billion 
> turnover and once the redundancy issue is sorted out is fundamentally 
> sound.
>
> However, although there is then talk of a strategic partner and the sale 
> of up to 20% of its shares, full sale of the company is only talked about 
> over a ten year timescale. But until the politicians and the company part, 
> it will not be able to operate efficiently and make a real, positive 
> contribution. Because “influential people” will always remain interested 
> in drawing upon its resources informally.
>
> For in reality, even with some growth in the market, the company could 
> probably comfortably operate with less than 2000 employees and its core 
> infrastructure business can probably function with as few as 500 
> employees. So even if the politicians steel themselves for the big 
> “difficult” decision, there is still an unfinished agenda. No-one has yet 
> elaborated a business strategy for Telkom Kenya that positions it in the 
> new competitive environment. It appears too often to continue to rely on 
> its friends to continue to protect those aspects of its operations where 
> it continues to exercise “dominant market power”. CCK CEO John Waweru 
> would not be human if he did not stoutly defend those parts of his legacy 
> that he so recently put in place.
>
> Nevertheless Telkom Kenya stands to lose business on all sides. There are 
> a number of licensed international data gateway providers and the 
> regulator is talking of having another international gateway for 
>  “switched” traffic. The mobile operators are understandably frustrated by 
> the slow speed with which the international gateway issue is being dealt 
> with and blame Telkom Kenya for the international congestion problems that 
> exists. International VoIP traffic will erode its international business 
> and once an agreed interconnect settlement is in place, there will be 
> further pressure on both its local loop and backbone costs. That said, if 
> it can reduce its staffing costs, it has a considerable asset in its 
> infrastructure business. And perhaps the combination of this and the 
> selling of broadband and associated service will be its saving in the 
> long-term. Meanwhile it accumulates debt and it waits on the politicians 
> for resolution of the redundancy issue.
>
> * KENYA’S SKYWEB TECHNOLOGIES STARTS UP CALL CENTRE USING VOIP
>
> Although Kenyan ISP SkyWeb Technologies has 2200 dial-up customers, its 
> CEO Gilda Odera told us last week that:”The market is getting tougher and 
> this has forced us to look for other ‘value-adds’ so that we can use the 
> ISP as a platform to do other things.” So its first new business has been 
> the introduction of a call-centre business:”We want to focus on this area 
> and grow it locally.”
>
> It has 20 seats and has won a contract to carry out market research for a 
> company based in Canada. It is also hoping to sign a telemarketing 
> contract with a publisher to carry out subscription renewals.
>
> The biggest nightmare has been finding, training and retaining good 
> people. When it advertised, it got an enormous number of responses but 
> found that in person, many applicants did not have “the voice” needed for 
> phone work. To overcome this problem, it now asks applicants to leave a 
> voice message which enables them to carry out a preliminary sort of 
> applicants. The best kind of applicants are those that have had some level 
> of international exposure (often through education abroad) that allows 
> them to understand particular words and contexts.
>
> It pays between KS15-20,000 a month, with really skilled operators able to 
> earn KS25,000. It groups employees into three categories: Entry level, 
> intermediate and advanced. It takes 3-4 months to go from entry level to 
> advanced.
>
> Its calling is done using VoIP and it uses the services of a call centre 
> it works with in Canada. Calls cost US0.22 cents a minute. The call centre 
> bills them for these costs and the client has an Asterisk box that handles 
> the calls. However Odera believes that once SkyWeb gets other clients it 
> will look for its own provider.
>
> ADVERTISEMENT:
>
> GATEWAY COMMUNICATIONS: Increasing Profitability for African PTT's, GSM
> Service Providers and Competitive Carriers through Improved International
> Services
>
> Gateway Communication's portfolio of international services can provide 
> your
> operation with the following:
> - Increased revenue and profitability on international voice services
> - Lower bad debt and improved cash flow
> - Enhanced international service quality
> - New data and electronic commerce services
> - Advanced infrastructure, expertise and training
> - Minimal capital investment and risk-free implementation
>
> Web Site: www.gatewaycomms.com; E-Mail: info at gatewaycomms.com
> Contact: Carrier Relations +44 20 7493 0099.
> __________________________________________________________________________
> TELECOM NEWS
> __________________________________________________________________________
>
> * SOUTH AFRICA - SNO GETS ITS LICENCE AT LAST
>
> The Independent Communications Authority of South Africa (ICASA) says it 
> has high expectations of the second national operator (SNO). ICASA 
> councillors officially handed over the Public Switched Telecommunications 
> Service (PSTS) licence to the SNO.
>
> ICASA's SNO committee chairperson Lumko Mtimde said he trusts and hopes 
> the SNO will deliver the quality services that it promised at the 
> beginning of the licensing process despite “doomsday prophecies”.
>
> Programme Director Councillor Zolisa Masiza likened the SNO to the 
> fairytale fox that woke up one morning, looked at its shadow and said “I 
> am going to eat a zebra today”. However, as the day progressed and there 
> was no zebra on the horizon, the fox looked at its shadow and said “I 
> think a mouse will do'.
>
> Mtimde said that he was aware of the Optis lawsuit, but ICASA had not been 
> presented with anything that would stop it from issuing the licence last 
> week. Mtimde said the case was between the Minister of Communications and 
> Optis. He added that ICASA had received a letter from the Optis legal 
> representative last week, but the letter did not suggest that they stop 
> the process.
>
> Optis, a failed bidder for the SNO licence, is demanding a 4.5% stake in 
> SepCo. Optis' case against the Minister of Communications states that if 
> it had known that the 51% controlling stake in the SNO was to be split up, 
> it would bid for the second round. Judgement on the case has been deferred 
> for January 2006 by the Pretoria High Court.
> (SOURCE:http://www.itweb.co.za/sections/telecoms/2005/0512091038.asp?S=IT%20in%20Government&A=ITG&O=FPLEAD)
>
> ADVERTISEMENT: Want a Leading Provider of Solutions and Services, Visit
> www.sky2net.net
>
> * NIGERIA:NITEL EMPLOYEES GO TO COURT TO TRY AND STOP SAT3 SPIN-OFF
>
> A Federal High Court sitting in Abuja last week gave an interim order 
> stopping the Federal Government from going ahead with the privatisation of 
> the Nigerian Telecommunications Limited (NITEL). Bidding exercise for the 
> national carrier by prospective buyers was expected to commence last week 
> but for the order of the high court.
>
> Employees of NITEL had approached the court asking it to halt the move by 
> the Federal Government to remove SAT-3 fibre assets from NITEL before 
> privatizing it.
>
> The NITEL staff who approached the court through their associations are 
> contending that the removal of SAT-3 will deprive NITEL of its carrier 
> status and will pose negative implication in the telecommunications 
> industry. They also contended that the privatisation of the national 
> carrier would hit a brick- wall if SAT-3 was detached from the asset of 
> NITEL, pointing out that "SAT-3 is a major feature that makes NITEL the 
> first National carrier. The case has yet to be heard on its merits. A 
> hearing will commence on 15 December.
>
> The unions used by NITEL staff as platform to invoke the jurisdiction of 
> the court are the National Union of Postal and Telecommunication Employees 
> (NUPTE) and Senior Staff Association of Utilities, Statutory Corporations 
> and Government Companies (SSAUCGOC). Enterprise (BPE), Nigeria Cabling and 
> Telecoms Networks Ltd (NCNL) and the Federation Attorney General were 
> named as respondents. The Chief Executive of NITEL, Mr A. J. Mashi has 
> described SAT3 as the company’s “cash cow”.
> (SOURCE: The Vanguard)
>
> * VIRGIN MOBILE INKS LONG-AWAITED DEAL WITH SOUTH AFRICA’S CELL-C
>
> The Virgin Group and South Africa’s Cell C network announced the 
> long-awaited formation of a joint venture last week. The company is 
> expected to be launched during the first half of 2006. “Our partnership 
> with Cell C will bring a new approach to the mobile market and will be a 
> refreshing alternative from the bland offerings of other players,” said 
> Virgin founder Richard Branson.
>
> Branson said that the joint venture with Saudi-backed Cell-C would cost 
> about US$79 million to set up and that Virgin would probably price its 
> services aggressively to undercut the big players, MTN and Vodacom. Both 
> parties were keen to say that the new joint venture is unaffected by 
> British cable firm NTL’s bid to buy Virgin Mobile Holdings (UK) which is 
> 72% owned by Branson’s Virgin Group.
> (source: Daily Nation)
>
>
> * GHANA: GHANA TELECOM AND AREEBA SETTLE INTERCONNECT DISPUTE
>
> The Acting Director of the National Communications Authority (NCA), Major 
> John Ray Tandoh (Rtd.), has disclosed that the interconnectivity problem 
> between Ghana Telecom (GT) and Areeba has been resolved.
>
> It would be recalled that last year, GT complained of Areeba 
> interconnection rates, saying it has incurred big losses because of the 
> former.
>
> He said a new interconnectivity rate of G¢600 per minute to take effect 
> from January 1, 2006 has been agreed upon. "I assure all operators in the 
> telecommunications sector that the NCA would continue to exercise its 
> jurisdiction to resolve disputes among competing operators in a 
> transparent and non-discriminatory manner," he said.
>
> According to him, the telecommunication sector is further liberalized as 
> the NCA prepares itself to roll out fix line network and backbone 
> infrastructure regulations to license the provision of their services.
>
> As part of government's aim to provide telecommunication facilities to 
> rural and underserved areas, the NCA has proposed that the country focuses 
> on service providers for fix wireless network.
>
> At a consultative forum with stakeholders last week, under the theme, 
> "National telecommunication policy towards further liberalization of the 
> telecom sector", Tandoh told participants: "From next year, the NCA will 
> license more fixed line operators in the telecommunication sector. We have 
> more potential operators who want to come on our market," he said.
> (SOURCE: Ghanaian Chronicle)
>
> * ZIMBABWE: GOVT MAY CANCEL TELECEL'S LICENCE, OUST ITS CHAIRMAN
>
> After withdrawing a licence for the country’s second fixed telephone 
> network, TeleAccess, the Zimbabwean government has turned the spotlight on 
> third cellular operator Telecel Zimbabwe.
>
> The state is mulling a plan that involves either cancelling the operator’s 
> licence or changing the ownership structure of the company, and possibly 
> ousting its non-executive chairman, James Makamba. The move to withdraw 
> Telecel’s licence could further disrupt Zimbabwe’s struggling 
> telecommunications sector.
>
> Zimbabwe’s state-run fixed line company, TelOne, has been cut off by SA’s 
> Telkom over an unpaid debt. Zimbabweans are now forced to call SA via 
> Canada on an internet-based system. TelOne is said to be technically 
> insolvent because of huge debts to foreign creditors.
>
> Sources said last week that the authorities were determined to oust 
> prominent businessman Makamba from Telecel. Makamba is facing allegations 
> of breaching the Foreign Exchange Control Act by allegedly trading on the 
> black market. Government is currently taking steps against Telecel over 
> the Makamba issue. A letter to Telecel has been drafted and warns the 
> company’s licence will be withdrawn unless it changes its shareholding 
> structure and removes Makamba, an official source said.
>
> Action against Telecel could be taken anytime now. The Telecel issue had 
> been the subject of cabinet debates since August. Makamba is a major 
> shareholder in Telecel, which is 60% held by Telecel International and 40% 
> held by the Empowerment Corporation of Zimbabwe, a local business 
> consortium dominated by Makamba.
>
> Telecel International is in turn fully owned by Orascom Telecom, an 
> Egyptian conglomerate listed on the Cairo and London stock exchanges.
>
> Makamba, who has already lost his farms and other properties due to 
> seizures by state agents, failed to appear before the court on August 31 
> after fleeing the country in July. He has been to SA several times. 
> Efforts to contact him before close of business on Friday failed.
>
> It will come as no surprise that President Robert Mugabe’s nephew, Leo 
> Mugabe, a shareholder in Telecel, is said to be seeking more equity in the 
> company.
>
> Transport Minister Chris Mushowe and the Post and Telecommunications 
> Regulatory Authority of Zimbabwe officials have been to Egypt in a bid to 
> persuade Orascom to kick out Makamba.
> (SOURCE: Business Day)
>
> Cape Verde sets on a fast-track process to telecommunications market 
> liberalisation
>
> * CABO VERDE TELECOM'S MONOPOLY ENDS JANUARY 2006 AS CAPE VERDE 
> UNILATERALLY LIBERALIZES
>
> Cape Verde telecommunications market is about to witness a revolution. The 
> monopoly of incumbent Cabo Verde Telecom on international communications 
> will end on 1st January 2006. Following four months of unsuccessful 
> negotiations between the government and CV Telecom, Cape Verde has decided 
> to unilaterally implement the liberalisation of its telecommunication 
> market. A legislative decree which reflects this new position has been 
> published this week in the Official Bulletin of the country. This document 
> also sets 1st January 2007 as the date when CV Telecom will lose its 
> monopoly on fixed lines services.
>
> These steps towards opening the fixed line telecommunication market are 
> likely to lead to a fierce legal battle between the Cape Verde Government 
> and CV Telecom. When privatised in 1996, CV Telecom was granted an 
> exclusive concession contract until 2021. CV Telecom which is in majority 
> owned by Portugal Telecom, the national fixed line incumbent in Portugal 
> is decided to fight the Government’s decision on the basis of the rights 
> that came from its exclusive concession agreement. Talks are also going on 
> about CV Telecom seeking heavy financial compensations for the loss of 
> potential revenue.
>
> At the same time a North-American Consortium ASG Telecommunications has 
> been selected as the second mobile operator. The licence should be issued 
> very shortly. Meanwhile the company will invest US$6 millions to set up 
> its operations in the country. The Minister Manuel Inocencio explained 
> that a second mobile operator will not only introduce competition in the 
> mobile market but will also help to improve the quality of the service and 
> will reduce the cost of making calls from mobile phones in the country. 
> This announcement is a second blow for CV Telecom who runs also the only 
> mobile network covering the 10 islands.
>
> How quickly these decisions will reshape the telecommunication market is 
> difficult to predict. However it is sure that CV Telecom will do all that 
> is possible to retain its monopoly on telecommunications in Cape Verde.
>
> IN BRIEF
>
> - In Cameroon work is being carried out by the Committee on Production and 
> Trade will be to amend and supplement some provisions of Law N° 98/14 of 
> 14 July 1998 governing telecommunications in Cameroon. The proposed 
> amendment to this law seeks to stamp out quarrels and restore consistency 
> to ensure the smooth set up of the special telecommunications fund and 
> also the conduct of activities to revive telecommunications development in 
> the country. The Law of 14 July 1998 is said to have set up the Special 
> Telecommunications Fund under the Telecommunications Regulatory Board 
> (TRB) intended to finance the telecommunications universal service and 
> promote its development. Consequently, the TRB was to manage the fund, 
> while its work was to be financed by the fund were left under the 
> jurisdiction of the Ministry of Post and Telecommunications.
>
> - Libya’s General Company for Post and Telecommunications has contracted 
> Swedish equipment supplier Ericsson to build a 3G network in the country. 
> Under the EUR58 million deal, Ericsson will roll out a 3G network with 
> capacity for 2.5 million subscribers, as well as offering support and 
> training services. At the end of September 2005 there were around a 
> million subscribers to LibyaGO.
>
> ADVERTISEMENT:
>
> IBASIS, THE GLOBAL VOIP COMPANY
>
> For each of the last four years, carriers have ranked iBasis as the best
> international wholesale carrier in the Atlantic-ACM survey.
> iBasis offers high quality of service and competitive rates for worldwide
> VoIP:
>
> … Leverage low rates for your origination traffic via The iBasis Network
> … Increase revenue with access to high volume of traffic 20 million
> minutes per day!
> … Benefit from new streams of retail traffic from iBasis prepaid calling
> card business
> … Quickly deploy direct IP connections and accelerate the cost savings in
> capital and operational expenses
> Telecom operators and ISPs: Grow your business by joining the leading
> international VoIP network today.
>
> - Web Site: www.ibasis.com
> - E-Mail: mtse at ibasis.net
> - Tel: +233 21 234349 or +44 7796 993 123. Fax +1 240 209 0423
> ___________________________________________________________________________
> TELECOMS RATES, OFFERS AND COVERAGE
> ___________________________________________________________________________
>
> - Uganda telecom has completed a technical project under Northern Uganda 
> Reconstruction Programme (NURP II). The about $7.1m (sh13b) project was 
> funded by Nordic Development Fund.
>
> - Both Cell C and MTN have beefed up their cellular networks to offer 
> faster data downloads. Cell C has opted for Edge (enhanced data rates for 
> global evolution), which carries data three times faster than its existing 
> network. Cell C will cover 90% of the metropolitan areas with Edge for 
> internet access, multimedia messaging, video and audio downloads at speeds 
> of up to 240kB a second. The fees range from R2 for 1MB of data with no 
> monthly fee, or R1,55 for 1MB of data with a monthly fee of R60.
>
> Meanwhile, its rival, MTN, has begun testing a different technology, 
> high-speed downlink packet access, also known as 3G Evolved. Trials are 
> being conducted with some corporate customers to see if it lives up to 
> expectations of better speed and bandwidth. The technology is designed for 
> mobile and interactive television, enhanced video telephony, multiplayer 
> gaming and the sharing of information. A 3MB file should take 12 seconds 
> to download, compared with 68 seconds using a normal 3G (third generation) 
> network. However data still accounts for less than 6% of the cellular 
> networks' revenue.
>
> - Telecommunication companies Econet Wireless and Zimpost this week 
> entered into a strategic partnership that will see the postal company 
> becoming a trade channel of the mobile phone operator. The 
> multi-million-dollar deal was signed in Harare in which Zimpost will 
> purchase Econet recharge cards and lines and distribute them across the 
> country, taking advantage of their widespread branch network. The 
> agreement will also see the introduction of electronic airtime 
> distribution in all Zimpost branches.
>
> - Telkom Kenya has applied to regulator CCK for approval to change its 
> billing method for local voice services from per three minute billing to 
> per minute billing from 1 July 2006. The CCK notice points out:”The 
> migration to the per minute billing method is also in preparation to move 
> into per second billing in the near future as is currently the practice in 
> the mobile telecommunications industry.”
>
> - MTN Rwanda has introduced a product called Tel'mbere aimed at rural 
> areas without direct connections to the MTN network. Grameen International 
> has been contracted to supply the kit and promote the product. It costs 
> Frw150, 000 for a full kit of handset, battery, Antenna and charger. 
> Calling on MTN network using the product will cost Frw20/unit, Frw25 to 
> Rwandatel fixed lines, Frw50 to Great lakes and Frw76 for international 
> calls, Frw55 for short message services and Frw65 for MTN information 
> request. MTN Rwandacell's network so far covers 78 per cent of the 
> country.
>
> ADVERTISEMENT:
>
> SKYVISION - Leading the Inclined Orbit revolution in Africa - The perfect
> solution for ISPs and Telcos
>
> SkyVision, the leading provider of IP services over satellite in Africa,
> offers a ground breaking service, based on Inclined Orbit Satellite -
> Intelsat's IS-603
>
> You can now benefit from the new technology, better quality and excellent
> pricing!
> - Starting from $1,900/Mbps for a 3.8m tracking antenna earth station
> - Starting from $1,490/Mbps for a 7.3m tracking antenna earth station
> - C-band dedicated service based on Intelsat IS-603 satellite
> - Pricing is based on a capacity larger than 10Mbps
>
> - Web Site: www.sky-vision.net
> - E-Mail: sales at sky-vision.net
> - Tel: +44 20 8387 1705. Fax +44 20 8387 4004
> _________________________________________________________________________
> INTERNET NEWS
> _________________________________________________________________________
>
> * SOUTH AFRICA: ADSL GAME UP FOR TELKOM
>
> Internet users have welcomed new draft regulations that aim to 
> dramatically increase the speed and lower the cost of Telkom's broadband 
> ADSL services.
>
> Draft rules published by the Independent Communications Authority of SA 
> (Icasa) propose to scrap the controversial monthly fees of between R270 
> and R680 Telkom charges for using ADSL. The monthly fee is levied in 
> addition to an installation fee and the normal line rental, even though 
> the cost of converting a regular copper line to ADSL technology is a 
> one-off event.
>
> Users also pay an additional fee for the volume of bandwidth they consume. 
> Since Telkom serves almost 100000 ADSL customers, the monthly rental is 
> earning it an absolute minimum of R27m a month.
>
> Icasa says Telkom should charge a one-off connection fee, the normal line 
> rental and a fee for the volume of bandwidth that is used, with no monthly 
> ADSL rental fee. However, the regulations are bound to be challenged by 
> Telkom, which has already threatened legal action if Icasa attempts to 
> prevent it charging a monthly fee for high-speed lines.
>
> During public hearings to investigate the ADSL services recently, Telkom 
> argued that the monthly fee was crucial. Telkom product development 
> executive Steven White criticised the proposal to scrap the monthly fee as 
> "a decision by people who don't understand how these things work".
>
> The equipment and maintenance needed to supply ADSL was so costly and 
> complex that Telkom could not cover its costs with the installation fee or 
> by the R89 a month charged for renting a normal line, he said.
>
> Other elements of Icasa's draft regulations may also invoke Telkom's ire. 
> One is a proposal that a cap to prevent users from downloading more than 
> 3GB of data a month be increased to 10GB. The cap will only apply to the 
> use of international bandwidth, and not to local sites.
>
> Icasa also calls for internet service providers (ISPs) to guarantee 
> minimum speeds in line with International Telecommunications Union 
> guidelines, which define broadband as having a minimum download speed of 
> 256kB a second. At the moment, Telkom's services begin with as little as 
> 192kB a second.
>
> Icasa also wants the right to intervene in any disputes over the wholesale 
> fees that Telkom charges other ISPs for its bandwidth. If that clause goes 
> through, Icasa will be kept busy, as many ISPs object to Telkom's recently 
> altered wholesale fees.
>
> One company, Dotco, is challenging the new fee structure in court, 
> claiming that it makes the service far too expensive to offer consumers 
> data downloads.
>
> Cara Christian of MyADSL, a website for the broadband community, said the 
> draft regulations looked good. That local bandwidth would not be capped is 
> very positive and should stimulate companies into providing more local 
> content, she said.
>
> "The draft regulations lead the way to ensure more affordable and 
> internationally comparable ADSL services." If these regulations take 
> effect in their current form without litigation, "we should see mass 
> uptake of broadband and the increased penetration needed to stimulate the 
> local information technology industry and the economy in general", 
> Christian said.
>
> Other contributors to the MyADSL website describe the raising of the 
> monthly cap to 10GB as a step in the right direction, and praise a clause 
> calling for service providers to install an ADSL service within 14 days of 
> a customer request. Icasa has asked for comments on the draft regulations 
> and has given a January 3 deadline for people to do so.
>
> Last week, research by MyADSL and the University of Johannesburg found 
> that Telkom's services were the best high-speed internet access
> Its services scored 76% when criteria including speed, cost and quality 
> were assessed. Sentech's MyWireless scored 64% and MTN's 3G wireless 
> service scored 30%.
> (SOURCE: Business Day)
>
> ADVERTISEMENT: See Our Vision at www.sky2net.net - for services using
> state of the art technology.
>
>
> * TANZANIA: FBME BANK TRAINS 69 ON INTERNET BANKING
>
> Sixty-nine staff members of FBME Bank Ltd have been trained on FBME direct 
> Internet banking in order to train customers on how to use FBME direct 
> services. The Project Manager of the FBME Bank Ltd, Devota Mkwawa, has 
> told The Guardian that the training was carried out it in Mwanza, Zanzibar 
> and Dar es Salaam.
>
> “We have decided to train them because this is a new product and is a real 
> time online banking services available any time, anywhere in the world. It 
> is a term used for performing transactions, payments over the internet 
> through a bank’s secure website, and at the same time it allows customers 
> to be in control of their bank accounts,” she said.
>
> FBME is providing the ability to view account balances in whatever 
> currency, to view and download all account statements, view loan schedules 
> and loan repayments, view and download VISA and Master Card statements.
> (SOURCE: Guardian)
>
> * AFRICAN BUSINESSES SHOULD BUY LOCAL DOMAINS, SAYS MUTI
>
> African businesses and agencies operating on the internet should
> promote their country code Top Level Domains (ccTLD) instead of paying
> foreign companies for .com, .net or .org addresses, said registry
> managers attending the Internet Corporation for Assigned Names and
> Numbers (ICANN) meeting in Vancouver.
>
> "The money is needed in Africa and we may have no business buying the
> .com or .net when our .co.tz domain is undersubscribed," said Jacob
> Mtui, of the University of Dar es Salaam. .com, .org and .net are
> known as Top Level Domains (TLDs). Their registries are maintained by
> US based organisations.
>
> Mtui argued that though the .co.tz, .go.tz and .ac.tz subscriptions
> are free, they have only registered 1,200 addresses in a country with
> a population of 34 million. He could not access the figures for the
> international addresses, but Mtui said the ccTLD has not been
> adequately promoted.
>
> Sample this: the central bank of Tanzania's address is
> http://www.bot-tz.org and according to Mtui, it would have been a
> perfect promotion exercise if the central bank used its .go.tz domain
> name.
>
> But according to Njeri Rionge, ICANN board member, the use of a Top
> Level Domain Name is a question of personal choice and preference. In
> her opinion, the choice of .com, .net or .org gives an organisation
> the global appeal.
>
> Whereas the use of a ccTLD denotes the location of specific companies,
> Rionge said that some companies use TLDs and still maintain a ccTLD
> address for brand protection.
>
> For example a well-known retail shop like www.uchumi.com can still
> maintain www.uchumi.co.ke to protect its brand from other people who
> may want to use the brand for other reasons.
>
> Calvin Browne, director of UNIFORUM, the not-for-profit company that
> manages the .co.za domain agrees that a decision to use ccTLD or TLD
> will be based on marketing criteria because technically there is no
> difference between accessing a ccTLD or TLD website.
>
> In the same breath, Browne said that companies or organisations can
> choose to either develop their own countries by providing income or
> take the income to other countries.
>
> "Using .co.za will definitely increase local resources and increase
> employment. There is need to develop a sense of national pride. The
> more money stays home, the wider the opportunities for re-investment,"
> added Browne.
>
> Browne singled out giant corporations such as Liberty Life and Old
> Mutual in South Africa that have maintained co.za addresses yet their
> businesses are international.
>
> However, Ann-Rachel Inne, Policy Analyst at ICANN argued that African
> registries have to ensure they have the technical ability to sustain
> businesses and that connection is not erratic.
>
> "The infrastructure has to be favorable to business growth in case of
> business entities. For instance electricity has to be available and in
> case of power cuts, the registries have to have some back-up to
> guarantee continued internet operations," added Inne.
> (SOURCE: Highway Africa News Agency)
>
> * MTN RWANDA TO PROVIDE INTERNET AND VOIP
>
> MTN Rwanda has announced last week that the company will become an 
> internet service provider (ISP) by February next year. It will offer VoIP, 
> domain registration, Broadband Wireless Access (BWA), Corporate Wireless 
> Access Networks, web hosting and Wi-Fi. Subscribers will be able to access 
> internet services on their mobile phones and also use mobiles with `blue 
> tooth' to access wireless internet connectivity on laptops provided they 
> had a WAP or GPRS phone.
> (SOURCE: 
> http://www.newtimes.co.rw/index.php?option=com_content&task=view&id=2500&Itemid=63)
>
> IN BRIEF
>
> - After an extensive free trial offer, Kenya’s Safaricom now has 15,000 
> regular users of its data service, 6000 of which have bought a card for 
> their laptops. However the service will be relaunched as the company 
> believes that it can achieve a higher user base than it currently has.
>
> - The Postal Corporation of Kenya now has VSAT terminals in 33 offices, 
> enabling it to offer internet services.
>
> ADVERTISEMENT:
>
> AFRICA ONLINE – CONNECTING AFRICA
>
> Africa Online is the largest Pan-African Internet Service Provider in
> Africa. We have offices in Kenya, Uganda, Tanzania, Swaziland, Zimbabwe, 
> Namibia, Ghana and Cote d’Ivoire. We are also able to provide you with 
> services through our partners and affiliates in Egypt, Nigeria, South
> Africa and Zambia.
>
> As a premium Internet Service Provider, we specialize in Internet and
> Internet related services, electronic transaction switching services and
> corporate IT solutions and services.
>
> To learn more about how we can connect you to the rest of Africa, please
> visit us at HYPERLINK "http://www.africaonline.com/"www.africaonline.com
> ________________________________________________________________________
> COMPUTER NEWS
> ________________________________________________________________________
>
> * ORACLE GLOBAL SUPPORT CENTER IN EGYPT NOW OPEN FOR BUSINESS
>
> Oracle has officially opened its Global Product Support center based 
> within Egypt’s Xceed contact center, the largest of its kind in the 
> southern Mediterranean region. OracleThe facility, one of only eight 
> Global Product Support centers across the world, will provide support 
> services to Oracle customers around the globe as a key unit within Oracle’s 
> international support network.
>
> The new Oracle center, located within Egypt’s burgeoning Smart Village 
> business park, is staffed by multilingual software experts with core 
> competencies in the areas of enterprise resource planning (ERP) 
> applications and Oracle’s technology platform, including middleware and 
> database software.
> (SOURCE: Al Bawaba)
>
>
> * GHANAIAN COMPANY RELEASES FIRST LOCALLY PRODUCED CHILDREN'S EDUCATIONAL 
> SOFTWARE
>
> ChildNet Electronic Publishing, Ghana's first local educational software 
> developer and producer will be launching its first product, Squirrel's 
> Compututor. ChildNet Electronic Publishing was formed in 2003 by four 
> University and Polytechnic graduates to develop their own range of 
> software for children.
>
> Squirrel's Compututor was entirely developed in Ghana to help children 
> learn about computers. It uses animated tutorials, games, puzzles and 
> quizzes to engage and help with knowledge reinforcement. The program works 
> on any computer.
> (SOURCE: Accra Mail)
>
> * CISCO SYSTEMS SEES MASSIVE POTENTIAL IN AFRICA
>
> Networking company Cisco Systems expects to sustain annual growth of 
> 10%-15% for the next few years as the volume of traffic carried on global 
> networks surges as much as 500% a year. Much of Cisco's growth is expected 
> to come from emerging markets, including Africa, where its business is 
> growing 30% a year. "That's where we are making our investments for 
> growth," CEO John Chambers told analysts in Santa Clara on Tuesday.
>
> Twelve percent of all new employees are being hired in emerging markets, 
> and its investment focus on the region will continue for the next several 
> quarters.
>
> So far the 129 countries classed as emerging markets account for just 10% 
> of the Nasdaq-listed company's revenue, which hit $24,8bn in financial 
> 2005. Chambers believes emerging markets could generate up to 40% of 
> Cisco's potential growth in the coming years.
>
> Cisco's vice-president for emerging markets, Paul Mountford, thinks 
> Chambers is under-estimating the potential, and predicts growth of up to 
> 47% a year in his territories. "There is an absolutely huge opportunity," 
> he said.
>
> The 129 countries cover 37% of the world's population, yet only 1% of the 
> people have broadband internet access. "It's all about land-grab. That's 
> why these countries are so important to us. First-mover advantage is 
> critical in these markets, and there's not really a comprehensive first 
> mover in any of the top 20 countries which generate 80% of the business 
> volumes today," he said.
>
> SA is among the top 20 performers of his 129 countries. Many African 
> governments were beginning to spend heavily on telecommunications 
> networks, seeing them as a platform through which to connect communities 
> and start to challenge poverty, he said.
> (SOURCE: Business Day)
>
>
> * SOUTH AFRICA - CUTTING PIRACY WOULD BOOST ECONOMY
>
> A 10 % points drop in South Africa's piracy rate could create jobs, 
> increase tax revenues and provide major benefits to the local economy, 
> according to a study by Business Software Alliance (BSA).
>
> The study found that cutting the software piracy rate of 37% in SA by 10% 
> over a four-year period could generate 2 400 new jobs, $1.7 billion (about 
> R10.8 billion) in economic growth and $1.31 million (about R8.3 million) 
> in tax revenues.
>
> The independent global research, conducted by International Data 
> Corporation (IDC), also found that reductions in the domestic software 
> piracy rate could jumpstart growth in the IT sector.
>
> IDC finds that the local IT sector currently includes 12 082 IT 
> businesses, employs 68 250 people.
>
> DC currently projects the $6.6 billion (about R42 billion) local domestic 
> IT sector will grow 42% by 2009. A 10-point reduction in software piracy 
> could increase that growth to 49% by 2009 to create a $10billion (about 
> R63.5 billion) industry.
>
> BSA chairman Stephan le Roux says although the software industry is a 
> great driver of economic benefits, the current impact represents a 
> fraction of the potential economic gains.
>
> "More needs to be done to protect the value of intellectual property in 
> terms of education, legislation and enforcement, if South Africa is to 
> realise the potential benefits the IT industry can bring," says le Roux.
>
> He says at this stage we have a 37% software piracy rate, which is an 
> increase from last year's 36%. The one percent increase is due to 
> ‘certain' additional calculations, added by the IDC during their 
> research.
>
> “Compared to other countries like China and Thailand who are standing at 
> about 80% piracy rate, we are average. That means we are not doing badly, 
> nonetheless we can always focus better and achieve the 10% reduction rate 
> so as to improve the economy.”
>
> The Government also needs to look at the current copyright law and make 
> amendments to it, so as to ensure the ongoing fight against software 
> piracy, says le Roux.
>
> He says already as part of the ongoing fight against software piracy, 
> prosecutors are educated on how to pick up small things that show when 
> software has been pirated.
>
> “Through education, private public partnerships, using corporate software 
> and asset management as a guide to reducing software piracy, even with a 
> person sitting at home, we can achieve that 10% decrease.”
>
> The BSA study provides a five-step formula for the government to protect 
> intellectual property:
> - Update national copyright laws to implement World Intellectual Property 
> Organisation (WIPO) obligations;
> - Create strong enforcement mechanisms, as required by the World Trade 
> Organisation, including tough anti-piracy laws;
> - Dedicate government resources to the problem, including national IP 
> enforcement units, cross-border cooperation, and more training for law 
> enforcement;
> - Improve public education and awareness; and
> - Lead by example by requiring public sector to use only legitimate 
> software.
>
> The study that assesses the IT sector's economic impact in 70 countries 
> worldwide is available online at www.bsa.org/idcstudy
> (SOURCE: 
> http://www.itweb.co.za/sections/computing/2005/0512091036.asp?A=COM&S=Computing&T=News&O=ST)
>
> IN BRIEF
>
> - Apparently Blackberry will not enter the Kenyan market because its 
> minimum licence agreement is 50,000 users and therefore the market is too 
> small. However those who have investigated selling them believe that the 
> margins offered by RIM are too small to be worth the candle.
>
> - The Postal Corporation of Kenya plans to launch an electronic money 
> order service early next year. A pilot project is already under way in a 
> number of centres. The service will enable customers to send money orders 
> electronically to all post offices countrywide.
> ___________________________________________________________________________
> ON THE MONEY
> ___________________________________________________________________________
>
> * EGYPT TELECOM IPO LOOKS LIKE BEING HEAVILY OVERSUBSCRIBED
>
> Retail investors bidding for shares in the Telecom Egypt (TE) IPO received 
> 10.6 percent of the number of shares they asked for, Egypt's stock 
> exchange said in a statement on Thursday, a day after bidding closed.
>
> Retail bidders could buy a maximum of 10,000 of the 154 million shares 
> available to the public. Demand hit 1.45 billion shares, a source close to 
> the IPO said.
>
> About 340 million shares in total were on offer in the IPO. Half were 
> reserved for investment institutions, and after the deduction of shares 
> sold to retail investors, the remainder was set aside for TE employees.
>
> Shares were priced at 15.56 Egyptian pounds ($2.71) for investment 
> institutions and 14.80 pounds for retail investors.
>
> The partial privatisation of TE, which has a landline monopoly in the Arab 
> world's most populous nation, was one of the largest since a cabinet of 
> economic liberals took office in July 2004. The offering was worth about 
> 5.2 billion pounds.
> (SOURCE: Reuters)
>
> * KENYA’S CELTEL RAISES KS4.5 BILLION FROM BOND MARKET
>
> Celtel Kenya has raised KS4.5 billion from the Kenyan bond market. This 
> comes on top of the KS6 billion that it raised from a group of banks and 
> institutional lenders last year. The funds raised are to allow the company 
> to continue its expansion programme. The bond issue was 75% gauranteed by 
> FMO, the Dutch Government’s development finance arm but in the event the 
> issue was oversubscribed. The issue was the largest ever bond issue on the 
> Nairobi Stock Exchange and 30% of the issue was taken up by overseas 
> investors.
>
> Fifteen Kenyan investors took up the issue, including banks, investment 
> managers and insurance companies. Celtel Kenya was advised by Standard 
> Bank PLC, the London-based sister bank of Stanbic Bank Kenya and the 
> capital was raised by Barclays Bank, Kenya Commercial Bank and Stanbic 
> Bank Kenya as co-lead arrangers.
> (source: Daily Nation)
>
> * KENYA’S WANANCHI TO GO FOR IPO IN MID 2006
>
> Wananchi’s recent merger with ISPKenya has led it to seek a private 
> placement to help it expand further. The merged company has a 38% market 
> share and the deal has to be cleared with the Monopolies Commission 
> (CHECK). Once the merger has been completed, the company will be seeking 
> an IPO in the middle of next year. Subject to a successful completion of 
> the merger, the company will be looking for further acquisitions. In what 
> areas? That would be telling.
>
> * SA’S CYBERHOST BUYS COMPANIES TO ACQUIRE WEB-BASED SOFTWARE
>
> Software and information technology group Cyberhost is to acquire 100% 
> effective shareholding in hospitality group Top Restaurants and Intranet 
> from Queensgate Leisure Holdings.
>
> Cyberhost said last week the purchase would provide it with access to 
> web-based software specific to the restaurant industry through Intranet's 
> management information system, which allows management to access 
> restaurant information through the internet.
>
> The simultaneous purchase of Top Restaurants, a holding company for 21 
> restaurants and four franchised operations, will provide an initial client 
> base.
>
> Management information and control over the operations are exercised 
> through the Intranet information technology platform.
>
> Brands owned by Top Restaurants include the Famous Butchers Grill, 
> Upstairs Asian Fusion, Amici's, The Cape Fish Company and RJ's.
>
> The purchase consideration for Top Restaurants is R60,3m and Intranet is 
> R950000.
>
> Cyberhost said the rationale for the purchase was to create a captive 
> client base for the group's internet and web-hosting products and to 
> diversify its operations into the leisure industry.
>
> The company announced the acquisition along with its financial results for 
> the year to June.
>
> Cyberhost has regained its solvent position after completing a formal 
> settlement with its creditors.
>
> It reported revenue of R70m, from R2m for the 18 months ended June 2004. 
> Headline earnings a share were 0,10c a share, up from last year's headline 
> loss of 0.26c a share. No dividend was declared.
> (SOURCE: Business Day)
>
> * BPO INVESTMENT IN SOUTH AFRICA HITS RECORD HIGH
>
> The contact centre and business process outsourcing (BPO) industry in 
> South Africa has enjoyed unprecedented growth during 2005.
>
> According to new research conducted by Deloitte, there are now 167 contact 
> centre and BPO operations in just one Province, the Western Cape, 
> employing a total of 14,345 people. This represents growth in 2005 of 39% 
> in the number of agent positions and 43% in the number of staff.
>
> Calling the Cape, the Western Cape’s inward investment agency, has also 
> attracted new investment in 2005 worth GBP45m, up 19% from the GBP38m 
> secured in 2004. 76% of this investment originated from the UK. New BPO 
> investors in 2005 in Cape Town include Asda, Amazon.com, and STA Travel.
>
> Other provinces are also reporting strong levels of inward investment and 
> growth. Recent investors into Gauteng, South Africa’s commercial 
> heartland, reported by local agency ContactinGauteng include IBM, 
> FujitsuSiemens, and Sykes. A recent deal between involving ABN Amro to 
> outsource a significant percentage of its global call centre business to 
> IBM worldwide, including IBM South Africa’s Integrated Delivery Centre 
> based in Johannesburg, is testimony to the growth in complex services 
> being offshored to South Africa.
>
> Mfanu Mfayela, CEO of SACCCOM, the national industry body which includes 
> CallingtheCape, ContactinGauteng, KZNonSOURCE, says South Africa’s 
> attrition rate of 14% remains well below international norms, and is 
> particularly impressive in an industry that has grown in some areas by as 
> much as 70% in two years.
>
> Mfayela is confident that the industry will continue to grow through 2006. 
> “South Africa is fast developing an international reputation for high 
> quality of service and is attracting high calibre international investors, 
> while offering increasingly complex and sophisticated BPO services. The 
> labour market continues to be extremely accommodating of rapid growth and 
> the industry has extraordinary potential to develop the South African 
> economy. “
>
> * In Brief
>
> - The buzz rumour swirling round the GSM Conference in Cape Town last 
> week? MTN is to be bought by Orange. Neither party would confirm when 
> asked. The rumour has probably got going because MTN is the only 
> large-scale African mobile operator that is currently “unattached”. 
> Vodafone has announced its desire to purchase Vodacom and Celtel has only 
> recently changed hands. And with the exception of MTN’s lucky break in 
> Iran, it has had some difficulty breaking out of the continent. Is the 
> sale rumour true? Maybe it will be a case of if not now, when? And who?
>
> - Portugal Telecom and South Africa-based operator MTN have entered a 
> joint bid for a 34% stake in state-owned Namibian cellco Mobile 
> Telecommunications (MTC), the country’s sole mobile operator. According to 
> local press reports there are five parties bidding for the stake, and the 
> sale is expected to be completed in the first half of 2006. The government 
> also plans to sell a further 15% of the company to domestic investors. MTC 
> claimed 410,000 subscribers at the end of September.
>
> - Kuwait’s Mobile Telecommunications Company (MTC) says it is in talks 
> tobuy an unspecified Madagascan mobile operator. Kuwaiti newspaper 
> Al-Qabas claims that the target cellco has around 250,000 subscribers, 
> which would make market leader Madacom the most likely subject, but 
> nodetails concerning the bid or the size of the stake were available. 
> Madacom is 66%-owned by Hong Kong-based Distacom.
>
> ___________________________________________________________________________
>
> WEB AND MOBILE DATA NEWS
> ___________________________________________________________________________
>
> * DIRECTOR OF EGYPTIAN OPPOSITION SITE DETAINED BY STATE SECURITY
>
> Ahmed Mahmoud Abdallah, Editor-in-Chief of Egyptian web site Al-Shaab 
> which was suspended last week has been arrested in Cairo on the night of 5 
> December by state security agents from Amn-El-Dawla.
>
> Reporters with Frontiers has asked for the journalist to be freed:"We are 
> calling for online editors and bloggers to benefit from the same legal 
> protection and respect as journalists from more traditional media. The 
> arrest of a journalist or blogger is serious decision which must take 
> place within the context of a framework of transparent judicial procedure. 
> This has not been the case with the two arrests made in the last month."
> (Reports without Frontiers)
>
> ADVERTISEMENT:
>
> Sky 2 Net LTD providing A-Z solution for Internet & VOIP via satellite
> (C-Band) that covers all Africa and Asia. The solutions including
> end-to-end Equipment of V-sat, wireless, VOIP, Bandwidth Management and
> Anti-Spam (outgoing). Sky 2 Net provide Internet and International call
> termination and generation for prepaid cards and regular operators.
> - Web Site: www.sky2net.net
> - E-Mail: wilan at sky2net.net
> - Tel: +972-54-233261
> ___________________________________________________________________________
> PEOPLE
> ___________________________________________________________________________
>
> * While interviewing Skyweb Technologies’ Gilda Odera for the Kenya 
> special above, her 16th floor office began to sway alarmingly. Both 
> interviewer and interviewee assumed that it must be some personal sickness 
> rather than last Monday’s earthquake. This is the first time we have had 
> to flee from an interview and do so by running down 16 flights of stars.
>
> * Former Kenyan MP Shem Ochuodho has been convicted and given a jail 
> sentence by the Kenyan courts for a fraud committed during his time at the 
> Kenya Pipeline Company. Ochuodho failed to appear for his court hearing 
> and is currently working as the head of the Rwandan Information Technology 
> Agency, a situation that has all the makings of diplomatic contretemps 
> between Kenya and Rwanda if it continues. And we last spotted Ochuodho at 
> the WSIS meeting in Tunis where his smiling demeanour betrayed none of the 
> anxieties you might expect of a man with a jail sentence hanging over his 
> head.
>
> * Meanwhile currently in the Kenyan courts are Jan Mutai and Samuel 
> Chepkonga, both formerly top managers with Telkom Kenya’s predecessor, 
> Kenya Posts and Telecoms. Both have been indicted on alleged fraud 
> charges. Jan Mutai is better known to readers with shorter memories as the 
> Secretary-General of the African Telecommunications Union.
>
> * Last week’s Kenyan cabinet reshuffle sees former Information and 
> Communications Minister Raphael Tuju promoted to Foreign Affairs and 
> replaced by PR man Mutahi Kagwe. Will Econet continue its court action 
> against him now he’s no longer in post? Interestingly Kagwe has a link 
> with a senior politician who previously was responsible for 
> communications. He is married to the daughter of influential Internal 
> Security Minister John Michuki who has the ear of the President. The 
> Assistant Minister was David Were but he has already resigned on the issue 
> if lack of consultation on the new cabinet. Widely respected Info and 
> Communications Permanent Secretary John Rege has been replaced by Dr 
> Bitange Ndemo. So Kenya’s ICT sector will have to start from scratch in 
> educating the newcomers about the importance of ICT to Kenya’s future 
> growth.
> ______________________________________________________________
> EVENTS
>
> -Telecoms conference 2006: Has Telecoms deregulation delivered on its 
> promise?
> Tuesday January 31st 2006, Cape Town International Convention Centre
> For further information contact Nicky Floris, nicky at callingthecape.org.za 
> or (021) 487 8655
>
> - National ICT Workforce Conference, Nairobi, Tuesday January 31st, 2006.
> The conference will bring together stakeholders (industry, academia, 
> government, users, etc) in the ICT Workforce sector for discussion and 
> study/adoption of the Report of the National ICT Workforce Survey 
> conducted by the Society.
> For further information contact csk at nbi.ispkenya.com
>
> - Corporate Network Management Forum: LANs, WANs, VPNs, Multimedia,
> VoIP, Security: “Developing Strategies in Network Management and the
> Business Imperatives”
> 23-24 February 2006, Nairobi, Kenya
> For further information contact, Vincent Wambua, AITEC Kenya
> Website: www.aitecafrica.com
>
> - Conference on Free and Open Source Software (FOSS)
> 23rd to 25th February 2006, Nairobi Safari Park Hote, Kenya
> For further information call Tel/Fax + 254 20 374 9771.
>
> - Second Annual SANGONeT "ICTs for Civil Society" Conference and 
> Exhibition
> 1– 2, March 2006, Indaba Hotel, Fourways, Johannesburg, South Africa
> For more information, visit www. sangonet.org.za/conference2006
>
> - AfNOG workshop on Network Technology
> 7 - 12 May 2006, Nairobi, Kenya.
> Further information and application forms are
> available at <http://www.afnog.org/afnog2006/workshop/>.
>
> - Telecoms and Investments 2006'
> 4-6 July , 2006 at Sheraton Hotel & Towers, Abuja - Nigeria.
> For further information please telephone:+234 9 671 8799, Fax:+234 9 413 
> 9293, Cell:+234 803 563 9927
> Website:http//www.telecomsandinvestments.com
> Email:info at telecomsandinvestments.com
> __________________________________________________________________________
> JOBS AND OPPORTUNITIES
> __________________________________________________________________________
>
> * Botswana looks for telecom consultant
>
> The Botswana Telecommunications Authority is advertising for a
> consultant who will develop a universal access and service policy for
> the country. This will span the telecommunications, broadcasting, media,
> post and ICT sectors. Bids are due by January 11 to pifelo at bta.org.bw.
>
>
> * Regional Correspondent: West Africa, reporting to the Editor, Pambazuka 
> News, part-time.
> Pambazuka News is the authoritative electronic weekly newsletter and 
> platform for social justice in Africa providing cutting edge commentary 
> and in-depth analysis on politics and current affairs, development, human 
> rights, refugees, gender issues and culture in Africa.
> Pambazuka News offers a comprehensive weekly round-up of news on human 
> rights, conflict, health, environment, social welfare, development, the 
> internet, literature and arts in Africa. Pambazuka News is produced by 
> Fahamu (www.fahamu.org), an organisation that uses information and 
> communication technologies to serve the needs of organisations and social 
> movements that aspire to progressive social change.
> Further details: http://www.pambazuka.org/index.php?id=30579
>
> ADVERTISEMENT:
>
> VOIPRENT -- RENT A TURNKEY VOIP SOFTSWITCH !
>
> The VoipRent hosted VoIP softswitch allows VoIP Service Providers to
> immediately and cost-effectively launch services such as:
> - VoIP wholesale termination (SIP, H.323)
> - ANI callback, SMS callback, Web callback, DID callback
> - Prepaid calling cards
> - Webphone and pc2phone (with customized interface and logo, unlimited
> license)
> - Device2phone with DID mapping
> - Callshop billing solution
>
> Please visit http://www.voiprent.com or send us an email at:
> sales at voiprent.com
> _______________________________________________________________________
> BACK NUMBERS - FINDING THE INFORMATION YOU NEED
> _______________________________________________________________________
> If you need to find information in our back numbers, you can do this in 
> one
> of two ways. Either go to our full archive clicking on the link below:
> http://www.balancingact-africa.com/news/backindex.html
> or use google just to search our site clicking on the link below:
> http://www.balancingact-africa.com/search.html
> _______________________________________________________________________
> NEW 2005 RATE CARD AVAILABLE
> _______________________________________________________________________
> To see a copy of our new rate card for 2005, e-mail a request to:
> (info at balancingact-africa.com) Don't get left behind. Be seen and known
> through advertising in our e-letter and on our web-site.
> ______________________________________________________________________
> All material printed in Balancing Act's News Update is subject to
> copyright. Reproduction in whole or in part is prohibited without the
> express permission of the publisher.
> ______________________________________________________________________
>
>
>
>
>
>
>
>
>
>
>
>