SEACOM gears up for another year of expansion

Following a year of growth and progress in its business, pan-African telecommunications enabler SEACOM will be hunting for growth in new African territories in 2014, as well as continuing its evolution from a cable operator into an infrastructure provider that offers a range of IP solutions to its service provider and operator customers.

That’s according to SEACOM CEO Mark Simpson, who says he anticipates strong growth in the African telecom market as the impact of government and operator investments into national fibre links, last-kilometre connectivity, and local content continue to be felt across the continent.  With these essential pieces of the puzzle rapidly falling into place, SEACOM expects robust growth for its business in this year.

“During the past year, we have seen terrific progress. Our investments in West coast capacity, our African ring and meshed IP networks have started to come into their own – developments that have been really good for SEACOM’s customers. Terrestrial fibre penetration has also improved and we’re seeing continued and essential access network developments across our markets. These factors helped us to grow in 2013 and will continue to fuel our evolution in 2014,” says Simpson.

Looking ahead strategic plans include expanding into a number of new countries which it does not yet serve directly, including West coast countries. SEACOM will continue to invest in countries to ensure its drive to become a truly pan-African infrastructure provider is met.

source: www.biztechafrica.com

NSA spying on Africa-Asia-Europe undersea telecommunications cables

The US National Security Agency has collected sensitive data on key telecommunications cables between Europe, north Africa and Asia, German news magazine Der Spiegel reported Sunday citing classified documents.

Spiegel quoted NSA papers dating from February and labelled "top secret" and "not for foreigners" describing the agency's success in spying on the so-called Sea-Me-We 4 undersea cable system.

The massive bundle of fibre optic cables originates near the southern French city of Marseille and links Europe with north Africa and the Gulf states, continuing through Pakistan and India to Malaysia and Thailand.

"Among the companies that hold ownership stakes in it are France Telecom, now known as Orange and still partly government-owned, and Telecom Italia Sparkle," Spiegel said.

It said NSA specialists had hacked an internal website belonging to the operator consortium to mine documents about technical infrastructure including circuit mapping and network management information.

"More operations are planned in the future to collect more information about this and other cable systems," Spiegel quoted the NSA documents as saying.

Der Spiegel has over the last several months reported on mass NSA spying on targets in the United States and abroad using documents provided by fugitive intelligence contractor Edward Snowden.

A White House-picked panel this month recommended curbing the secretive powers of the NSA, warning that its spying sweeps in the "war on terror" had gone too far.

source: www.gadgets.ndtv.com

Nigerian plan for telecom tariffs to vary by region

Telecommunications tariffs are set to differ in various parts of Nigeria in accordance with the ease of doing business, according to a proposed plan by operators.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) announced the decision at the Telecoms Stakeholders Summit the Nigerian Communications Commission (NCC) organised in Lagos.

ALTON’s chairman, Engr Gbenga Adebayo, noted that subscribers in the North East and those with multiple tax regimes, multiple regulations, as well as all “unwholesome” practices would pay higher tariffs.

Adebayo said subscribers in states like Lagos, Kwara, Ekiti and Akwa Ibom would pay less, because of their friendly telecoms policies.

He urged other state governments to emulate the example of Lagos State, which he says has come to realise that telecommunications is a socio-economic need rather than merely a source of revenue generation.

Adebayo stressed that the state had reduced the Right of Way charges from N6,000 to N500 per square metre of road.

source: www.itwebafrica.com

Bharti Infratel awaiting stronger 3G signals

Expectation of a higher dividend, attractive valuations and growth prospects on the back of an uptick in 3G usage saw the Bharti Infratel stock jump 5% in trade today.  With the Bharti Infratel management clarifying that it will not pursue M&A activities in Africa and aggressive investments in 3G by incumbent operators saw the stock gain 13% over the past month. The recent uptick comes after underperformance over a one year period due to static tenancy ratios which could fall with consolidation and talks of 8% licence fee on tower revenues .

Given the company's stand on Africa acquisition, Goldman Sachs analysts believe that there is a low possibility of any big ticket acquisition, leaving room for Bharti Infratel to return money to shareholders. The research firm estimates that the company is likely to pay a special dividend of Rs 3.5 per share in the March quarter of FY14 taking the total dividend for FY14 to Rs 9 a share. Further, the analysts have increased earnings per share upwards on the back of an expected growth in data traffic. “At current FY14E multiples of 1.9 times its price to book value and return on equity of 7.7%, the risk-reward is balanced with upside potential largely driven by faster 3G deployment and better-than-expected dividend payout,” say Goldman Sachs analysts led by Sachin Salgaonkar.

While regulatory issues and M&A are likely to influence the stock, the key operational parameter would be the company's ability to improve its tenancies which have been stuck in the 1.91 times to 1.93 times range over the last five quarters. Every additional tenant substantially improves profitability as rentals improve with costs increasing only marginally. The major cost for telecom tower companies is power which is a pass through. One of the triggers for the same is the rapid expansion of 3G coverage by operators. 

source: www.bussiness-standard.com

Nigerian plan for telecom tariffs to vary by region

Telecommunications tariffs are set to differ in various parts of Nigeria in accordance with the ease of doing business, according to a proposed plan by operators.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) announced the decision at the Telecoms Stakeholders Summit the Nigerian Communications Commission (NCC) organised in Lagos.

ALTON’s chairman, Engr Gbenga Adebayo, noted that subscribers in the North East and those with multiple tax regimes, multiple regulations, as well as all “unwholesome” practices would pay higher tariffs.

Adebayo said subscribers in states like Lagos, Kwara, Ekiti and Akwa Ibom would pay less, because of their friendly telecoms policies.

He urged other state governments to emulate the example of Lagos State, which he says has come to realise that telecommunications is a socio-economic need rather than merely a source of revenue generation.

Adebayo stressed that the state had reduced the Right of Way charges from N6,000 to N500 per square metre of road.

“This will enable us build a digital Lagos. The state will be ahead of other states.

source: www.itwebafrica.com

MTN makes data deal permanent

Mobile data price war continue to benefit South African consumers as the operators drop the cost of connecting smart devices to the internet.

MTN on Wednesday announced that its data promotions were now permanent as the company looked to take on Vodacom in SA.

"We at first extended the data offerings promotion to our customers, but have now decided to make it permanent to provide our customers a bold, new digital world," said Brian Gould Gouldie, chief Marketing Officer at MTN SA.

Junior operator Cell C currently offers data at 15c per megabyte and the price contributed to disrupting the data market. Competitors reacted with a variety of pricing offers to reduce the cost of smartphone data.

MTN's data promotions of R10 for 20MB up to R249 for 2GB are now permanent.

source: www.news24.com

Pyramid Research Doubles Telecom Coverage in Africa/Middle East, Strengthening its Commitment to Region

The Africa and Middle East region offers enormous potential for operators, vendors and investors alike as it reaches a new stage in its growth. According to Pyramid Research, mobile Internet revenue will maintain an explosive growth rate in the AME region and it will double in size to represent a $25 billion opportunity by 2018. Today, there are slightly more than 5 million households with FTTH broadband in AME. By 2018, this figure will have risen to more than 16 million. In 2018, one in every two subscriptions will be running either on LTE or on 3G networks. Today, it is one in every four subscriptions.

"Given the market trends occurring in the region, we are anticipating the demands of our growing client base by now offering 33 countries in Africa spanning the fixed, mobile, media and devices sectors and tracking 150+ operators," says Arathoon. "In theMiddle East, Pyramid now covers 11 countries and tracks 50+ operators, while having contacts with hundreds of regulators, operators and vendors across the region."

"Through our regional research and strategic consulting services, we help our clients enhance their knowledge of their industries, enabling them to create sustainable market-entry strategy and investment decisions while assessing true revenue-generating opportunities," Arathoon explains. "Our membership as well as our consulting services will become even more robust as a result of this continued commitment to one of the industry's most dynamic regions."

source:www.prnewswire.com

Telkom to release spectrum

Telkom has confirmed that will return spectrum to the Independent Communications Authority of South Africa, Icasa, as it migrates its legacy services to next generation technologies.

South Africa is currently embroiled in a escalating battle for spectrum, as dominant and minor operators claw at Icasa for a piece of the frequency pie – as demand for data and expanding networks push currently-help spectrum capabilities to their limits.

In April, state-owned enterprise Sentech said it would return its 2.6GHz and 3.5GHz spectrum to the regulator for the South African communications sector.

Sentech CEO, Setumo Mohapi, said that fact that the cost of spectrum had grown tenfold was a big consideration in returning the spectrum to Icasa. The telco noted that it is licensed to use the 2.4 GHz band (i.e. 2.3-2.5 GHz) and is using this band to provide FWA services, in particular in rural areas.

“Whereas Telkom has identified these technologies for migration (due also to the negative effect of harmful interference in the ISM band (i.e. 2.4-2.5 GHz)), such migration is complex due to, amongst others, lack of suitable sub-1 GHz spectrum to be used in the rural areas.”

source: www.bussinesstech.co

MTN makes data deals permanent

Mobile data price war continue to benefit South African consumers as the operators drop the cost of connecting smart devices to the internet.

MTN on Wednesday announced that its data promotions were now permanent as the company looked to take on Vodacom in SA.

"We at first extended the data offerings promotion to our customers, but have now decided to make it permanent to provide our customers a bold, new digital world," said Brian Gould Gouldie, chief Marketing Officer at MTN SA.

Junior operator Cell C currently offers data at 15c per megabyte and the price contributed to disrupting the data market. Competitors reacted with a variety of pricing offers to reduce the cost of smartphone data.

MTN's data promotions of R10 for 20MB up to R249 for 2GB are now permanent.
The company hinted that the rise in demand from consumers had driven the price cut.
"The Internet Bundle rate reduction has proven to be extremely successful with customers, addressing their need to be connected at all times, with the rise of internet data consumption requirements," said Gouldie.
According to the Mobility 2014 research study, conducted by World Wide Worx with the backing of First National Bank, people in the 19 - 24 age group are abandoning spending on voice calls in favour of data.
The results show that voice declined to 56% of the group's cellphone expense, down around 10% from 2012, while spending on data increased from 17% to 24%.

Data spend, on the other hand increased from 12% to 16%.

For operators, data has emerged as a key revenue generator and Vodacom reported that data revenue was on a roll, despite price declines.

"Group data revenue increased 29%, even as we actively reduced data prices. In South Africa as an example, the average price per megabyte came down 16%," Vodacom CEO Shameel Joosub .

source : www.news24.com

Bharti Infratel : awaiting stronger 3G signals

Expectation of a higher dividend, attractive valuations and growth prospects on the back of an uptick in 3G usage saw the Bharti Infratel stock jump 5% in trade today.  With the Bharti Infratel management clarifying that it will not pursue M&A activities in Africa and aggressive investments in 3G by incumbent operators saw the stock gain 13% over the past month. The recent uptick comes after underperformance over a one year period due to static tenancy ratios which could fall with consolidation and talks of 8% licence fee on tower revenues .

Given the company's stand on Africa acquisition, Goldman Sachs analysts believe that there is a low possibility of any big ticket acquisition, leaving room for Bharti Infratel to return money to shareholders. The research firm estimates that the company is likely to pay a special dividend of Rs 3.5 per share in the March quarter of FY14 taking the total dividend for FY14 to Rs 9 a share. Further, the analysts have increased earnings per share upwards on the back of an expected growth in data traffic. “At current FY14E multiples of 1.9 times its price to book value and return on equity of 7.7%, the risk-reward is balanced with upside potential largely driven by faster 3G deployment and better-than-expected dividend payout,” say Goldman Sachs analysts led by Sachin Salgaonkar.

source: www.bussiness-standard.com

Pyramid research reveals key telecom trends for Africa

 The Africa and Middle East region offers enormous potential for operators, vendors and investors alike as it reaches a new stage in its growth.  Capturing the untapped potentials in the region is not an easy task if the diversity of the region is not recognized and the individual markets are not treated with respect to their particular necessities, according to Kerem Arsal, Africa and Middle East Manager and Presenter of Pyramid's upcoming webinar: Saharan nations. According to Pyramid Research, mobile Internet revenue will maintain an explosive growth rate in the AME region and it will double in size to represent a $25 billion opportunity by 2018. Today, there are slightly more than 5 million households with FTTH broadband in AME. By 2018, this figure will have risen to more than 16 million. In 2018, one in every two subscriptions will be running either on LTE or on 3G networks. Today, it is one in every four subscriptions.

"It is no doubt that AME is a region of high risks and high returns, and therefore in its markets, information is the most valuable resource," says Arsal. "That is why we would like to invite you to this webinar, where you will find insights drawn from ourAfrica/Middle East research, which has expanded to cover 44 countries, corresponding to 95% of the GDP in the region."

source: prnewswire.com

Pyramid research doubles telecom coverage in Africa/middle

Pyramid Research doubles its telecom coverage of Africa and the Middle East, expanding the number of countries and operators tracked to offer unparalleled insight into market trends to the firm's growing client base in the region. Pyramid showcases its expanded offerings in a new complimentary Research Overview, available now.

The Africa and Middle East region offers enormous potential for operators, vendors and investors alike as it reaches a new stage in its growth. According to Pyramid Research, mobile Internet revenue will maintain an explosive growth rate in the AME region and it will double in size to represent a $25 billion opportunity by 2018.

Today, there are slightly more than 5 million households with FTTH broadband in AME. By 2018, this figure will have risen to more than 16 million. In 2018, one in every two subscriptions will be running either on LTE or on 3G networks. Today, it is one in every four subscriptions.

"Given the market trends occurring in the region, we are anticipating the demands of our growing client base by now offering 33 countries in Africa spanning the fixed, mobile, media and devices sectors and tracking 150+ operators," says Arathoon. "In the Middle East, Pyramid now covers 11 countries and tracks 50+ operators, while having contacts with hundreds of regulators, operators and vendors across the region."

source: www.ciol.com

telecoms sector in Africa , mideast offers huge potential

The telecommunications sector in Africa and Middle East (AME) region offers enormous potential for operators, vendors and investors alike as it reaches a new stage in its growth, according to the latest findings by Pyramid Research, which provides market analysis and consulting services to the communications industry.

“Capturing the untapped potentials in the region is not an easy task if the diversity of the region is not recognised and the individual markets are not treated with respect to their particular necessities,” said Kerem Arsal, Africa and Middle East Manager.

PR’s  ‘Telecommunications in Africa and the Middle East: Unique Opportunities in Diverse Markets’ report', released Tuesday, evaluates some of the unique opportunities and challenges in a region that hosts economies ranging from the wealthy states of the Gulf to the populous sub-Saharan nations.

According to PR, mobile Internet revenue will maintain an explosive growth rate in the AME region and it will double in size to represent a US$25 billion opportunity by 2018.

Today, there are slightly more than 5 million households with FTTH (Fiber-to-the-Home) broadband in AME. By 2018, this figure will have risen to more than 16 million.

FTTH is able to deliver a multitude of data, voice and video services to the home.

In 2018, one in every two subscriptions will be running either on LTE (Long Term Evolution) or on 3G networks. Today, it is one in every four subscriptions.

“It is no doubt that AME is a region of high risks and high returns, and therefore in its markets, information is the most valuable resource,” said Arsal. 

source: africanmanager.com

nigerians telecom engineers to get quality of service training

More than 50 engineers from Nigeria’s major telecommunications firms have signed up for training to enable them meet the ‘Quality of Service’ (QoS) mandates of the Nigerian Communications Commission (NCC).

Backup Network, a local representative of Switzerland’s Ascom Network Testing, is conducting the training.

Engineers from network operators are planned to be trained on ‘best-in-class’ skills they need to boost service delivery for their company network subscribers.

Speaking at the formal commencement of the training programme in Lagos, Monday Ogbe, chief executive officer at Backup Networks Limited, said the QoS in Nigeria is far behind other countries.

He said that the telecoms operators were doing their best but that more still needed to be done.

Last year, the NCC fined four of the country’s largest mobile operators for poor QoS.

“Operators are doing everything they can to ensure that service is delivered to the subscribers because as long as the subscribers are not happy with the service delivery, it will be difficult for operators to recoup their investment. At the end of the day everybody loses,” he said.

Ogbe added, “The quality of experience tools that we are offering the operators will help them perceive the network exactly the way subscribers are experiencing service on the network and through that, they can see
exactly what the bottlenecks that are affecting the network performance are for them to make strategic adjustments where necessary.”

He said with the integration of new wireless transport technologies such as internet protocol transmission via 3G and LTE into the operator network, the complexity of network end-to-end network visibility has become key to ensuring acceptable customer satisfaction.

source: itwebafrica.com

Etisalat to pay vivendi $5.3 billion for maroc telecom stake

The two companies had signed a shareholder agreement for the sale after weeks of wrangling over the deal. Etisalat made a binding offer in July that valued Vivendi's stake in Maroc Telecom at €3.9 billion ($5.27 billion). It will also pay Vivendi €300 million in cash; equivalent to the 2012 dividend of 7.40 dirhams a share set aside by Maroc Telecom for the French investor.

The deal, which is still subject to regulatory approval in Morocco, adds four countries to Etisalat's business—Morocco, Mauritania, Burkina Faso and Mali—and creates a West Africa cluster of operations that is likely to be managed by executives at Maroc Telecom, according to a person familiar with the matter.

Etisalat, which currently operates in 15 countries across the Middle East, Africa and Asia, is eager to rapidly expand again in emerging markets after holding off acquisitions during the financial crisis.

In addition to Maroc Telecom, Etisalat is in talks to buy India-based Bharti Airtel's  operations in Sri Lanka, and one of its subsidiaries in Pakistan, PTCL, has bid for competitor Warid Telecom for an undisclosed sum.

"Markets have to consolidate," Ahmad Julfar, chief executive of Etisalat, recently said. "I think all the markets in the world will consolidate to two or three [operators],"