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Tanzania - Growth in Data Business Attracts Telecoms
16 September 2010 | By Abduel Elinaza
Dar es Salaam — The telecoms market is shifting from the saturated voice to data business, after heavy investment in the ICT infrastructure including undersea marine cable.
Data business is more profitable, which is estimated to generate an average of between USD 5.0 and 7.0 per month per user is outpaced by data that have a return of around USD 15 and 30 per month per user.
The change of business pattern comes after the introduction of marine cable to the country last year. Wholesale data prices have plummeted by almost a half of what was charged last year from an average of 200,000/- per 10 gigabytes per month.
Simbanet Corporate Sales Manager, Mr Chintu Patel, told the 'Daily News' that fiber optic cables improve the quality of services, speed, while creating ample capacity for the benefit of customers.
Data return per user per month is almost double of what the voice is generating per month: "Sending or receiving data has become a trend of the day," Mr Patel said. The Tanzania Telecommunication Company Limited (TTCL) Public Relations Manager, Mr Amin Mbaga, said the voice business in today world 'is no longer a cash-cow' in comparison with data.
He said calling business has relatively no big impact on revenue as people talk little: 'But sending data is voluminous and that is business,' especially in this era of globalization.
Mr Mbaga said the TTCL investment portfolio is directed to data as companies are changing as well from voice to data. On top to that data business is facilitating the country's economic growth.
According to Tanzania Communications Regulatory Authority's voice telecom subscription reached 17,985,919 subscribers up to the end of March, this year. Mr Patel said 'at the moment we are facing stiff competition' in the sector which has attracted about 20 players dealing with data business minus telecoms firms.
The competition would not only lower product prices but also migrate to "other upcountry towns after saturating the Dar es Salaam market," Mr Patel predicted. Zantel, Tigo, Zain, TTCL, Sasatel, Benson Informatics and Vodacom are now dealing in data business where SMS alone generated 1.07bn/- between October 2009 and March 2010.
Vodacom offers internet for as little as 500/- per day, with Vodacom's Cheka Internet. The company is charged 0.25/- per Kilobyte (KB). Following data business hot-up, Tanzania Communications Regulatory Authority (TCRA) embarked on a bid to collect customers data per provider.
Bharti hires IBM to manage African tech operations
20 September 2010 | By BusinessDailyAfrica
Bharti Airtel last week moved to deepen its presence in Africa with an announcement that it would be handing over its entire IT system management to global giant IBM. The agreement gives IBM a foothold in the growing African IT services market. It will deploy and manage state-of-the-art information technology infrastructure and applications to enable Bharti Airtel bring affordable and innovative mobile services to remote locations in Africa.
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IBM plans to deploy advanced technologies that it has created through its research arm, including the Spoken Web, a voice-enabled Internet technology that allows users to access and share information simply by talking over an existing telephone.
‘The potential for this product is tremendous, especially in rural settings. You can imagine a farmer being able to find out the latest prices, seek new markets and even sell produce simply by talking into the phone, with little technological knowledge needed,’ said Samuel J. Palmisano, chief executive of IBM.
Kenya - Mobile Industry Poised for Strong Growth
22 April 2010
Kenya has emerged as one of the leaders in ICT technology development in Africa. Since the liberalization of the Kenyan telecom sector in July 1999 and the formation of the country’s telecom regulatory body Communication Commission of Kenya (CCK), the country has witnessed a surge in the investments made in telecom infrastructure and has insured competitiveness in the country’s telecom sector. In the years to come, our research projects, that the country will witness a surge in the subscriber growth on the back of strong government support and increased competition level among the country’s telecom operators. As a result, our research “Kenya Telecom Sector Analysis” projects that the number of mobile subscribers in the country will grow at a CAGR of over 15% between 2010 and 2013.
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Our team of experts has further studied the Kenyan mobile market by segmenting it into various subsections: like by subscribers, by technology, and by service providers. At present, the GSM technology dominates the country mobile subscriber base accounting for around 97% of the overall mobile subscriber base. Various factors that are presently favoring the adoption of the GSM technology over CDMA technology have been extensively covered in our report. In addition to this, various opportunities in front of the CDMA technology have also been talked about in our report.
“Kenya Telecom Sector Analysis” gives an insight into the current market trends and substantiates the data with unbiased and rational analysis. The report provides industry forecast on various telecom segments based on feasible telecom industry environment in Kenya. These include: Fixed-line subscribers and penetration, Mobile subscribers and penetration, Internet subscribers and penetration, Broadband subscribers and penetration, and 3G subscribers.
We believe that the regulatory environment plays a significant role in the successful development of the telecom sector and, thus have tried to explain in detail the regulatory environment in the Kenyan telecom sector. The report also provides thorough analysis on the current and potential outlook of various emerging technologies, such as 3G, and WiMAX. Besides this, the research report also offers rational analysis on the telecom operators in the country. |
Uganda - Telecom market revenues in Uganda to reach $1.23bn in 2015
9 September 2010 | By CRB Staff
The telecom market in Uganda generated $638m in 2009 and is estimated to grow at CAGR of 11.5% and reach $1.23bn by 2015, according to a new report from Pyramid Research. The Uganda's fixed broadband services is projected to join the mobile segment as new undersea cables land in the coasts of East Africa and the terrestrial fiber rings start reaching the country.
The report said that Ugandan mobile market is highly competitive, but the low level of mobile penetration at 32.8% in 2009 indicates that there is still much demand to be fulfilled. The main obstacle to increasing penetration has been the provision of affordable last-mile access to rural areas, where the majority of the Ugandans live and where income levels are low to justify individual subscriptions and handset ownership.
However, the report estimates that mobile subscriptions in Uganda to double during forecasting period and grow from 10.7 million in 2010 to 20.9 million in 2015, with a penetration rate of 52.7%. Pyramid analyst Kerem Arsal said that the real opportunity, however, lies in the broadband segment, and data revenue and adoption in East Africa will grow fast with the decline in the costs of international bandwidth due to the new undersea cables. "Adding to this the unfulfilled demand for Internet, the broadband market will comprise a quarter billion dollars in 2015, and fixed broadband will be the primary source of revenue growth in Uganda and will generate $229m in 2015," Arsal said.
Tanzania - Dar Es Salaam Firm Touts E-Marketing
22 September 2010 | By All Africa
TANZANIA's business fraternity was on Wednesday challenged to utilise fully information technogy (IT) services by marketing their products online. SoukTrade.com Public Relations Officer Priya Patel told the 'Daily News' that the internet was one platform where everyone in the world could be connected within seconds. "It is an ideal platform for trade and marketing," she said. "Every corner of the world is on the internet, either socializing or making money. If that is the case, then why shouldn't Tanzania be one of those corners of the world that are on the internet and do business online.
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She said that SoukTrade.com is a digital platform that creates opportunities for all trade players in Tanzania, as well as the whole of the East African Community in facilitating easier trade relations. Ms Patel said that the main aim of establishing such a platform was to bring buyers and sellers of various products in the region together.
This website offers businesses to create an online company profile, including a showroom where they can post their products and company information for free, she noted. The officer said that businessmen can view products, prices and search for buyers and suppliers using SoukTrade.com.
She added that there was no more hassles for businessmen to travel long distances, especially from upcountry to towns and cities all over East Africa and overseas, looking for their desired products and contacts of suppliers. |
Indian IT firm set to invest in East Africa
By Trade Invest Africa Staff
Indian multinational firm The Institute of Hardware Technology says it’s setting up shops in East Africa to take advantage of opportunities in the region’s information technology sector, according to a report in the Daily Monitor.
Umesh Chaudhary, managing director of the IT training company, says Rwanda or Uganda, due to the ease of starting businesses, might be the company’s entry point to the region. The company plans to set up in Uganda through a master franchisee which will provide services with their technical and financial support, based on the company’s global business model. IHT also intends to replicate its model in India by extending IT training services in both urban and rural areas to improve IT access.
Global companies which recruit staff from the firm include; IBM, Bharti Airtel, TATA, Compaq, Siemens and The Gillette Company among others. Indian firms that have invested in Uganda recently, include telecoms firms Essar Group and Bharti Airtel, and tea companies Jay Shree and McLeod’s.
Tanzania - TTCL mulls switching to new satellite
22 September 2010 | By Masembe Tambwe
THE Tanzania Telecommunications Company (TTCL) will save over 500m/- annually if it switches to new satellite provider, where it is going to pay on using the services, instead of the current fixed payment system. "We are currently paying close to 1.5m US dollars (about 2.3bn/-) annually to Intersat at fixed rates, meaning that we are charged irrespective to our usage," the TTCL Chief Financial Officer, Mr Mrisho Shabani, said.
Mr Shabani said this at a news conference in Dar es Salaam, when introducing the Regional African Satellite Communications Organisation (RASCOM) to the press. He told the 'Daily News' afterwards that TTCL had sent a notice of negotiations to Intersat for reviewing the contract.
"We hope to avoid the costs we are incurring by doing this. Our contract ends in 2016 and we will seriously think about employing the services of Rascom since their costs are cheaper," he explained. |
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The Rascom Director General and former TTCL Chief Executive Officer, Dr Jones Killimbe, said that knowing how the issue of affordability is of major concern, Rascom had purposely made sure that the satellite structure was cost-effective. RASCOM is an intergovernmental, commercial satellite organization.
Orange partners with Equity Bank to offer affordable devices
07 October 2010 | By Linda
With data access costs plummeting, Orange today moved to complete the package by addressing the issue of affordable devices. The landmark partnership with Equity Bank was signed by the Orange CEO Mickael Ghossein and Dr.James Mwangi the Equity Bank CEO in Nairobi. Growth in data access Ghossein said required a threefold approach targeting availability of bandwidth, affordable devices and reasonable pricing. The deal stipulates that Orange will provide the devices which will be available at all Orange shops countrywide while Equity Bank will finance their acquisition. Availability of affordable devices has been a hurdle for many Kenyans and Ghosse in said that this deal ensured that it would no longer be an impediment.
There are slightly over three million internet users in Kenya and over 20 million mobile subscribers. According to the recent Census report, a paltry 3.6 per cent of the Kenyan households have a computer while 63.2 per cent of households own at least a mobile phone. “In our estimation the ownership of mobile phones with internet access could be much lower”, said Ghossein.
Speaking during the signing ceremony, Ghossein said that Orange was committed to increasing the number of citizens who have access to both voice and data services. He noted that Orange was taking several measures to increase the speed and number of internet users in Kenya. Last week, the company launched a mobile internet service that costs a Sh 1 per MB, a few weeks after slashing its calling cost by more than half. In addition, Orange subscribers are set to benefit from even more reliable internet. This is after France Telecom-Orange signed an agreement for a new submarine cable in the Indian Ocean.
VODAFONE Ghana outsources Tower Management to EATON Towers
05 October 2010 | By Africa Business
Eaton Towers, the African tower company, has signed a 10 year contract to take over the operations and co-location management of 750 telecom towers for Vodafone Ghana. Over the life of the contract Eaton expects to invest up to $80 million on upgrading and improving the existing towers and on improving Vodafone’s coverage in Ghana.
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Over the life of the contract Eaton expects to invest up to $80 million on upgrading and improving the existing towers and on improving Vodafone’s coverage in Ghana. Eaton will also develop the existing infrastructure and build new towers. The agreement also enables Eaton to sell co-location and shared-infrastructure facilities to other mobile operators, generating future revenues from separate long-term contracts.
Tower sharing is a more cost-effective way for African operators to reach subscribers, with building and operating costs typically shared across multiple tenants. By outsourcing the management of its towers, Vodafone Ghana will immediately benefit from cost savings and significantly reduced capital expenditure.
Eaton will assume responsibility for all operational aspects of the passive infrastructure, including health and safety, security and power provision. Upgrades to the existing sites will include new power generation equipment and advanced management systems aimed at reducing diesel consumption and other costs.
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Alan Harper, Chief Executive of Eaton said: “This agreement is good for everyone involved. Our co-location offering ensures that Vodafone’s infrastructure will continually improve, whilst maintaining the lowest possible operating costs. “Furthermore, our tower-sharing agreements will enable Ghana’s mobile operators to reduce costs, reach more subscribers and avoid the environmental impact of duplicating towers. “Most importantly, through our investments, and sharing of towers, Ghana’s mobile subscribers will benefit from better coverage and operators having a lower cost base – and that is good for economic growth and sustainability. We plan to bring the benefits of tower sharing to operators and subscribers across Africa.”
South Africa - New Cell C network rolled out
06 October 2010 | By Creamer Reporter
Six South African cities now have access to Cell C’s 4Gs network, after the evolved high-speed packet access (HSPA+) 900 network was launched in Durban and Pietermaritzburg. “Our 4GS network today covers around 98% and 93% of the city population of Durban and Pietermaritzburg respectively, and by January 2011 will cover 99% of both cities and their surrounding areas,” CEO Lars Reichelt said.
Cell C noted that, in real use conditions, its HSPA+ 900 network achieved average speeds of between 6 Mb/s and 7 Mb/s in downloads and speeds of between 1,5 Mb/s and 2,5 Mb/s for uploads, with a maximum technical throughput of 21 Mb/s in both cities. Since the launch of the 4Gs network in Port Elizabeth at the beginning of September, the network has been rolled in Bloemfontein, East London, Cape Town and now in Durban and Pietermaritzburg.
Tanzania - Toshiba, Dell computers plan attack on brand counterfeits
30 September 2010 | By Guradian
Two major computer manufacturers, Dell and Toshiba computers, have decided to wage a war against counterfeits of their brands which are eating up their opportunities in Tanzania as well as other East African countries. Tanzania and East Africa in general is a major dumping destination for counterfeit Dell and Toshiba laptops and desktop computers, according to information made available to The Guardian. The two manufacturers want to flood the market with genuine Dell and Toshiba brands at affordable prices.
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Dell and Toshiba computers plan to penetrate the market through Mitsumi Computer Garage Limited, a Kenya based company, with branches in Kampala and Dar es Salaam, a Ugandan newspaper disclosed recently. Toshiba Computers, a major manufacturer of lap top computers, external computer hard drives and cameras recently announced a partnership with the company, Mitsumi Computer Garage Limited, in which the firm will become a dealer in Uganda, Kenya and Tanzania. Company officials say the partnership allows Mitsumi to have direct access to ex-factory Toshiba stocks which will be air freighted to the region from Germany and South Africa, cutting the length of waiting time between orders and delivery. |
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The Nairobi-based company has a similar agreement with Dell computers and plans to hold a press conference in Dar es Salaam today to explain how they are going to wage the war against counterfeits.
Kenyan Wins U.S. Software Competition
08 October 2010 | By Kevin
New York — A Kenyan software developer won the "Apps4Africa" competition sponsored by the US State Department on Wednesday. Charles Kithika developed a voice-based, mobile application that enables farmers to keep track of their cows' breeding cycles. Mr Kithika's innovation, dubbed iCow, will "help farmers get the most of their cows and their farms," the State Department said when announcing the awards.
Also honoured was an application that allows Kenyans to track the details of Constituency Development Fund projects in Kibera. Jamila Amin and Mikel Maron devised the software which can "review and map submitted reports on the real status of aid and development projects on the ground, in contrast to official government reports," the State Department said.
Secretary of State Hillary Clinton lauded the winners of the first annual contest in a video message from Washington. "Your work to develop 21st century solutions to Africa's challenges is a powerful example of what individuals can do to shape a dynamic, successful future," Mrs Clinton said.
Apps4Africa was launched in Nairobi in July as a US-sponsored contest to encourage technology entrepreneurs to build tools for non-governmental organisations and local communities.
Wireless System Set to Revolutionise Transactions
11 October 2010 | By Johnstone
Payments for goods and services have been made easier following the launch a new solution that will use wireless platforms. The new system which has been launched by Paystream, will provide a central financial transaction interface for card and cash dealings, and the retailers' point of sale (PoS) terminals through the use of wireless telecommunication networks. It is expected to reduce the cost of transactions and improve reliability which has been lacking in the existing payment platforms that run on dial-up lines.
According to Paystream chief executive officer Sam Ndegwa, the payment system is expected to revolutionise transactional services by eliminating the need for cash-based payments. "The Paystream platform will enable merchants to shorten the transactional time, eliminate risk exposure through cash-based transaction and increase additional revenue through commissions," said Mr Ndegwa, with card based transactions gaining acceptance, Paystream expects to expand the reach of processing platforms in Kenya. Other payment services to be provided on the Paystream platform include topping-up of mobile phones and payment of utility bills such as electricity and water.
| Paystream's entry into the Kenyan market will ensure that merchants can accept cash and card-based payments, including Visa, MasterCard, and debit cards issued by banks in the Kenyan market, as well as closed loop payment cards for select clients.
The system will centralise card based transactional services which are currently offered independently. This has forced retail outlets such as petrol station, super markets, drug stores, hotels and others to use separate PoS gadgets.
"Paystream is offering a unique and new product that will transform the way business is transacted in East Africa and beyond" said Ayisi Makatiani, CEO and Managing Partner of Fanisi Venture Capital Fund. "The Paystream business model indicates that African markets are ripe for payment systems that are ubiquitous, secure and easy to deploy," said Graham Gilmour the chief executive officer of Business Phone, a leading UK based firm that is partnering with Paystream in offering the service locally. |
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Kenya pumps $2.9m in building software hub
11 October 2010 | By Jevans
The outlook for technology and innovation in Kenya looks bright. As the country positions itself to ride the wave of web and mobile products and services, an emerging group of talented software developers, made up of fresh IT graduates and tech entrepreneurs, is opening a new growth area using technology. In a country where mobile phones are accessible to more than 50 per cent of households, high uptake of the technology is pushing more software developers to create solutions to tap into this global growth. Inspiration is coming from a number of successful software companies in Kenya, such as Craft Silicon and Software Technologies, two of the software pioneers in Kenya. University curricula are being updated with specialist courses. Big opportunities lie in the opening up of data, which will see more value-added services that will address emerging consumer needs. Mr Moses Kemibaro, co-founder of Dotsavvy Ltd, a digital services provider, says although Kenya has a number of local software development firms and entrepreneurs doing everything from building Sacco applications, mobile and web applications, it still lags behind.
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“We have a long way to get to where India is today,” Mr Kemibaro says. India is the capital of software development and outsourcing in a global market estimated at $303.8 billion in 2008, an increase of 6.5 per cent from the previous year, according to market researcher DataMonitor, which forecasts that in 2013, the global software market will be $457 billion, an increase of 50.5 per cent from since 2008. Its software industry, mostly based in Bangalore, generated four million jobs, which accounts for 7 per cent of India’s total GDP, in the year 2008. India exports software and services to over 95 countries. It is these kind of stories that have the Kenyan Government smitten with the tech industry. It has created $4 million content generation grant for developers.
“We have seen the number grow,” says Communication and Information minister Samuel Poghisio. “It is a clear indicator that Kenya is rife with innovative talent and with requisite investment. It is expected that content will transform the way Kenyans live, work and play.” |
This wave has given rise to hubs and labs to nurture innovation. One of them is Nairobi-based iHub, shorthand for Innovation Hub, founded by tech nerds and blogging enthusiasts, which seeks to link technologists, innovators and investors. Nailab, also based in Nairobi, incubates space for ICT-based start-ups. Nokia has also been active, with its Research and Sub-contracting Lab and User Experience Unit at the University of Nairobi. Google launched Android Market in Kenya, a distribution platform, to help developers sell applications developed for use on Android-powered cell phones. Recently, Safaricom unveiled Safaricom Academy at Strathmore University build IT talent for its business. Software developers have formed Skunkworks, a group that hosts online discussions with occasional real-life meetings.