Mobile Money covers 16% population in sub-Saharan Africa (Africa)
Money transfer via mobile phones has expanded to 16 percent of the total population in sub-Saharan Africa, according to a new World Bank study, as reported by Mobile Money Africa. The Global Financial Inclusion Database, or Global Findex, has found only 3 percent of the population in the rest of the world take advantage of money transfers through mobile phones.
As per the report, in sub-Saharan Africa, take-up of mobile money services, pioneered by Kenya-based Safaricom’s M-Pesa service, has been boosted by the fact that traditional banking is hampered by transportation and other infrastructure problems.
A statement issued by World Bank claims that money transfers through mobile phones is a form of increasingly nontraditional banking that often doesn’t require users to travel or set up an account at a brick-and-mortar bank. Further, such mobile banking allows account holders to pay bills, make deposits or conduct other transactions via text messaging. Kenya, where 68 percent of adults report using a mobile phone for money transactions, has seen particularly impressive growth in this market.
As revealed in the report, said Asli Demirguc-Kunt, the Bank’s director of development policy and chief economist of the Finance and Private Sector Network, said that nearly two-thirds of the unbanked cite poverty as the obstacle to financial access, but about a third also blame the cost of opening and maintaining an account or the bank’s being too far away, which means long bus rides for many.
In markets like Uganda, mobile money transfer services have become a revenue generator, with players hotly competing for users as margins on voice services have been driven down over the years. MTN Uganda, for example, has more than 2 million registered customers after launching in March 2009. MTN reported recently that US$100 million gets transferred over the service every month.
The four mobile money offerings in Uganda including MTN Mobile Money, Airtel Money, Warid-Pesa and Uganda Telecom’s M-Sente are largely similar, allowing registered users to load money into their accounts, make transfers to other users, buy recharge vouchers as well as withdraw money.
Vodacom eyes acquisition opportunities in Africa (Africa)
South African cellphone operator Vodacom Group Ltd. said that it is ready to grow its operations further across Africa and is on the hunt for small acquisitions.
Chief Executive Pieter Uys told DJN that they feel more comfortable that they have the recipe to be successful outside South Africa. Uys said the company is looking to make smaller acquisitions in the $100 million range focusing on a few countries on the continent that provide a stable political environment, big city populations and which aren’t overcrowded with other mobile phone operators.
As per the report, the key to expansion, Uys said, will be to establish a local presence in each country. When the company first expanded, Uys said it would put together packages in its home base of South Africa and then carry them out to the other countries it operates in–Tanzania, Mozambique, Lesotho and Congo. He added that Vodacom is considering expanding into Angola, Ethiopia and Uganda.
While telecommunications companies in Africa are benefiting from the expansion of its user base as more people enter the cellphone market, that growth doesn’t come without complications.
Vodacom is battling a court case over its 51 percent shareholding in Congo after a former consultant for the company took it to court over a payment dispute. Congolese courts ruled that Vodacom is liable to pay the company, Nememco,$21 million, and said if the company doesn’t settle the payment, the courts will conduct a public auction of its shares in Vodacom Congo on June 3.
Total Vodacom customers rose to 47.8 million for the year ended March 31, up 11 million from the previous year. In South Africa, customers rose by 6.1 million to 28.9 million.
SingTel plans acquisition in China and US (Singapore)
Leading telecom operator in Singapore, SingTel has hinted towards acquiring businesses in China or US, to make up or slow growth in its domestic market.
As per a statement made by the company, SingTel may raise its stakes in associates in Asia and Africa and make other strategic investments. The company reported a 30 percent jump in fourth-quarter profit. Net income climbed to $1 billion in the three months ended March 31.
Chief Executive Officer Chua Sock Koong, said that when they look at acquiring the technology know how in the start up space, they could be looking at quite a few different places. She added that it could be startups in Silicon Valley, California or in countries such as India and China.
The company added that group revenue at the Singapore and Australia operations are forecast to grow at low single-digit rates this year while earnings before interest, tax, depreciation and amortization may be stable. Further, dividends from associates in Asia and Africa are expected to grow.
Airtel Ghana launches Airtel Frndz and Airtel Classified (Africa)
Telecom operator Airtel Ghana has introduced two new products called Airtel Frndz and Airtel Classified on to the market claiming that the two products were introduced in response to customer needs and demands.
As per a company statement, Airtel Frndz enables Airtel customers to subscribe and call up to ten special numbers at the lowest rate of $0.014 per minute. Customers also enjoy free night on-net calls to their subscribed Frndz from 11:00pm (instead of 12:00) if they use a minimum $0.008 within the day.
Further, the company added that Airtel Classifieds enabled customers to access information on various topics including job searches and where to buy what, on their mobile phones. Marketing Director of Airtel Ghana, Oare Ojeikere said the product will make relevant and important information available to customers right on their mobile phones
Ojeikere said that Airtel Frndz seeks to give Airtel customers the freedom to stay connected with their families and be able to talk longer without unnecessarily spending too much. He said customers on Frndz are also charged just a marginal amount per megabyte on PAYG internet and are allowed up to 100 free SMS daily.
He also said that they are always looking for opportunities to create innovative products that their customers will find beneficial and useful and they thought one key way is to re-horn their family and friends offer especially when there is so much happening around them and they want to share these things with people close to them.
He said through the service, customers could access information on a range of topics by texting the keyword, ‘Class’ to short code 108 or dialing the USSD *108#.
He added that among the services that could be accessed are job alerts (where users will get daily updates on job vacancies), automobiles (users will receive information on vehicles for sale and where to purchase them), rent alert (users will receive information on accommodation available for rent) and properties (users will receive information on properties available for lease or sale.
Head of Corporate Communications and External Affairs at Airtel Ghana, Donald Gwira said they are constantly reviewing their products and in line with the feedback received they adapt their products in line with the needs of their customers. He added that Airtel Ghana will focus on its goal of becoming the most loved brand in the daily lives of Ghanaians by offering useful data, voice and value added services to the network.
Airtel to increase Africa revenues in 2013 (Africa, India)
Telecom operator Bharti Airtel announced its Q4 results yesterday, revealing a net decline in its profit for the ninth consecutive quarter. According to the company, increased expenses such as of 3G licence fee amortisation, 3G interest costs, forex losses and tax provisions, were the prime cause for the decline, but said that it will be looking at increasing revenues from its African operations next year.
Bharti Airtel CEO (International) and Joint Managing Director Manoj Kohli, said that the restructuring for Africa is over and thus FY 13 will be a normal year. Therefore, the revenue goal of USD 5 billion definitely remains their target.
He added that all changes they wanted to bring in the network, IT, organisation design are successfully completed and he believes this will be a year of stability, operational consolidation and therefore they are confidant of leading a growth in these markets. He also said that the company aims at achieving 40 per cent EBITDA (earnings before interest, taxes, depreciation, and amortisation) from its African operations.
Kohli claimed that cost efficiencies gained from the new business model in Africa has been completed and now they will see efficiencies moving in steadily.
Airtel announces Q4 results: customer base crosses 250 million, net profit down by 28% (India)
Leading telecom operator in India, Bharti Airtel announced its consolidated IFRS results for the fourth quarter and year ended March 31, 2012. According to the company report, the revenue growth in the fourth quarter was fuelled by increased customer additions and strong minutes growth in India. Despite a national strike for 9 days in Nigeria, Africa revenues continued its growth trend.
The consolidated net profit declined 28 percent to $190.6 million, in the fourth quarter ended March, from $265 million a year earlier, resulting in the ninth consecutive quarter for which the operator witnessed a profit decline. The company added that the net income was impacted by higher costs on account of 3G license fee amortisation, 3G interest costs, forex fluctuation losses and tax.
Consolidated EBITDA margin was sustained at a robust level of 33.3 percent benefitting from scale and cost efficiencies. Further, revenue growth of 11.6 percent for the full year in India and South Asia was mainly contributed by stability in pricing accompanied by robust growth in customer numbers. The company’s Africa revenues stood at $1,071 million, up by 15.9 percent from the previous year.
In a statement, Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said that he is pleased that the year has ended with the Company’s customer base crossing 250 million across twenty countries, the twentieth country being Rwanda. Their launch of 4G LTE, the first in India, is testimony to their commitment to the broadband agenda.
Further, the recent regulatory developments in India will have significant implications on the future of telephony and broadband, as well as India’s global competitiveness. The entire industry looks to the Government for a fair, transparent and sustainable telecom regime.
Orange partners with CANAL+ AFRIQUE for mobile payment services (France, Africa)
CANAL+ AFRIQUE and Orange have signed a partnership offering CANAL+/CANALSAT subscribers in Africa a convenient way to pay their subscription fees with their mobiles, using Orange’s mobile payment service.
CANAL+/CANALSAT subscription fee payment using Orange Money will be launched in Madagascar in June 2012, so all Malagasy subscribers who are both CANAL+/CANALSAT and Orange customers with an Orange Money account will be able to pay their subscription fees easily and directly from their mobiles, and enjoy great flexibility and instant delivery of their favourite TV programmes.
Orange Money is the mobile phone payment service designed by Orange to meet the needs of its customers in Africa and the Middle East. It provides Orange subscribers with functions such as money transfers from mobile to mobile, bills payment, withdrawal services and cash deposits with networks of registered agents, as well as paying for goods and services with certain businesses.
Orange Money is making life easier for a large number of people in Africa where 60 percent of the population has a mobile phone but less than 10% has a bank account. It has been launched in nine countries so far: Botswana, Cameroon, Côte d’Ivoire, Kenya, Mali, Madagascar, Mauritius, Niger and Senegal, and has already reached over 3.5 million customers.
CANAL+ AFRIQUE, present in more than 20 countries in sub-Saharan Africa, provides its subscribers with a variety of TV channels packages, which can either be prepaid or paid through direct debit. The majority of users opt for the prepaid formula which helps them control their spending, but which means they have to go to a retailer to renew their subscription. Orange Money will provide added comfort and flexibility for these customers by providing a way for them to pay their bills anytime, anywhere, with almost instantaneous service activation.
In addition to Madagascar, by the end of 2012, this mobile payment service will be offered to CANAL+/CANALSAT subscribers in various African countries where the Orange money service is already available.
Guy Lafarge, President of CANAL+ OVERSEAS, said that they are very pleased with this partnership with Orange on mobile payment. With Orange Money, they will provide their subscribers with an innovative and simple means of payment which is both quick and secure.
Marc Rennard, Executive Director responsible for Africa, Middle East and Asia, said that this agreement with CANAL+ AFRIQUE, a major player in the world of digital content, is another example of their resolve to continually broaden the range of Orange Money services to make life easier for customers. Further, thanks to the different partnerships based around Orange Money, they wish to improve the lives of their customers by providing them with a quick and simple means of accessing all services, on a day to day basis.
Movicel deploys first commercial 1.8GHz LTE network (Africa)
Movicel, Africa’s leading operator and pioneer in providing mobile services to Angola, announced the deployment of Africa’s first commercial 1.8GHz Long Term Evolution (LTE) network in the Cabinda province , the most productive crude oil region in Angola. It provides mobile broadband services with a downlink speed of up to 100Mb/s.
During Mobile World Congress (MWC) 2012 in Barcelona, Movicel announced it would deploy the first commercial LTE FDD 1.8 GHz network in Angola by the end of May 2012 and underscoring Movicel’s competence and commitment to the society, that network was launched today – 45 days ahead of the original plan. This is a great step forward for Angola, as enhanced mobility and broadband capabilities will enhance quality of life, business efficiency and industry productivity. It also supports Angola’s economic prosperity which resorts to rich communication, fast information and experience exchange.
As a 100 percent Angolan company, Movicel champions the country’s information industry revolution, and this new LTE network will further support Angola’s industrialization and informationization. The network is an ultra-high-speed wireless information highway that will allow the Angolan people to enjoy easy and greater access, faster data rates, better performance due to lower latency, and enriched multimedia services. It also enables governments and enterprises to realize a more efficient and automated global exchange of information.
Movicel will provide the most advanced mobile broadband technologies and services across the entire country within three years. In 2012, Movicel plans to expand LTE coverage to major cities, where economic development urges more information infrastructure. This plan reflects the management philosophy of Movicel’s CEO, Yon Moreira da Silva Junior, which is based on courage, confidence and innovation.
Huawei, a leading global information and communications technology (ICT) solutions provider, deployed this network for Movicel and was a close partner throughout the project.
Alcatel-Lucent to offer innovative measures for mobile operators to overcome data storm (USA)
Tony Wood, Country Senior Officer of Alcatel-Lucent in East Africa, explains how innovation can help operators rise above the data storm to overcome network, business-model and competitive challenges.
The globalisation of the economy and the growth of the Internet have enhanced worldwide communications. End-users wherever based in a remote village or in a big city should rely on stable telecommunications connections to enquire about the wider world and make their contribution to it. The convergence of services (broadband Internet + video on-demand + voice) has become a significant reality. Telecom operators, service providers, enterprises rely on their networks to run their voice, data and Internet communication.
Africa is a growing market and a focus market for Alcatel-Lucent; it remains among the company’s most promising markets. Indeed, broadband is one of the top priorities in Africa, good progress has been made to connect cities to national backbones, but connectivity of small towns still poor.
It is a vast continent with various needs for connectivity and is mainly characterised by basic infrastructure needs in some areas, and more developed areas where existing infrastructures must now deliver high-quality broadband connectivity to support services like high-speed Internet access.
Alcatel-Lucent is strongly involved in the telecom infrastructure development in Africa to support telecommunications actors to rise above the data storm to overcome network, business-model and competitive challenges. Meeting the need for mobile telecommunications and the adoption of next-generation technologies, including lightRadio – the revolutionary innovation of Alcatel-Lucent (a miniature device that offers a solution to network gridlock and universal broadband coverage) and 4G LTE networks, to foster digital inclusion and the development of applications to enhance education, youth employment, social engagement, health and transportation among local communities and across large geographies.
Wood said that breakthrough innovation and technologies, proven execution and experience – that is what mobile broadband operators count on from them, from their market leadership in wireless and IP, their research advances from Bell Labs, their company’s innovation engine, responsible for breakthroughs that have shaped the networking and communications industry and their global service experience in transforming networks to rise above the mobile data storm, to deliver cost-effective and high quality mobile broadband services to consumers and business users. He added that realising the potential of a connected world is an integral part of their vision and strategy.
He also said that Alcatel-Lucent unveiled lightRadio last year – the outcome of research by Bell Labs, the group’s world-leading R&D arm. It is a completely revolutionary approach for mobile networking. This brand new range will free the mobile sector around the world from its dependence on antenna masts and mobile base stations (cell towers), which are generally the most energy-consuming components of the network, and also the most expensive and difficult to maintain.
At a time of rapid traffic growth, the lightRadio system will radically simplify mobile networks, expand network capacity, lower operating costs, reduce energy consumption and bring connectivity to everyone around the world. With its flexible architecture, lightRadio is typically located at the base of each cell tower, is broken into its component elements and distributed through the network or ‘carrier cloud’.
Additionally the various cell tower antennas are combined and shrunk into a single, powerful, Bell Labs-pioneered multi-frequency, multi-standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings, WiFi networks or anywhere else there is power and a broadband connection.
In only a year, Alcatel-Lucent has not only moved from prototype to product, but has built an entire next-generation mobile platform, and it has a rich ecosystem of partners and co-creation customers it has been working with around the world: Telefónica, France Telecom/Orange, China Mobile, and Etisalat in the UAE.
The lightRadio architecture is fundamentally changing the structure of wireless networks to handle the video and Web surfing demands of consumers, increasing daily with the number of smartphones and tablets. Connecting becomes easy with lightRadio.
