Bharti Airtel contemplates mobile service launch in South Africa and Cameroon (Africa)

India’s leading telecommunications operator Bharti Airtel may be planning to expand its network in South Africa and Cameroon, as learned through industry sources. Airtel is a dominant player in the mobile industry with operations in 19 countries across Asia and Africa.

Mobile penetration has steadily been increasing in African countries, and with most of the global markets being saturated, emerging markets such as Africa provide mobile operators with new opportunities to increase their subscriber base and enhance their revenue.

Currently Airtel offers services in Nigeria, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Madagascar, Niger, Ghana, Kenya, Malawi, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. By adding South Africa and Cameroon, two of Africa’s fastest growing mobile economies to the list, Airtel aims to strengthen its position in Africa.

Airtel is the leading mobile operator in India and is well known for its innovative and competitive tariff pricing. The operator’s entry into these new markets is expected to take the mobile industry by storm and introduce an unprecedented level of competition.

Airtel presently offers services in 15 cities in India and with the population of one Indian city being similar to that of one African country, South Africa and Cameroon have the potential to be extremely lucrative for Bharti Airtel.

Further, sources claim that rival operators currently offering services in these economies such as MTN, Vodacom and Orange are already working on strategies to maintain their market share and offer stiff competition to Airtel.

Govt lost $308 mn in Zain sale (Tanzania)

The Public Corporations Accounts Committee (POAC) has stated that the Tanzanian government has lost $308 million by selling Zain Tanzania to the India-based company Bharti Airtel last year.

The Tanzania Revenue Authority Commissioner General, Harry Kitillya stated that the government lost the revenue because assets in Tanzania were not sold since its owner did not change.

As per Kitillya, the process of selling the company was done in Netherlands, explaining that it was not easy for them to collect revenue from the country they can not reach. He told the committee that what was sold was Zain Africa BV and not Zain Tanzania.

According to the committee Chairman, Kigoma North Member of Parliament for Chadema, Zitto Kabwe, the amount lost is equivalent to 30% of government’s capital which it deserved to gain after the sale of 4 million subscribers at US$252 each.

The government owns 40% of shares of the company while ‘Bharti Airtel’ holds 60%.

Kabwe added that this amount has been lost due to bad financial structure. They want the government to explain the committee about the whereabouts of the amount.  They would have used the funds to construct schools, hospitals and improve social services. The Income Tax Act of 2004 has some weaknesses which provided loopholes for diversion of funds.

The committee directed the ministry of Finance and Economic Affairs to bring an investigation report on the matter within a month with proposals to change or improve the laws.

The ministry should also establish the amount of income tax that was supposed to be collected from the new company as well as ensure there is transparency in handling of shares owned by the government in different companies.

VWV introduces Airtel brand across Africa

South Africa’s VWV Group, an experiential communications agency, was recently appointed to produce the launch of a new mobile telecommunications network into Africa.

Bharti Airtel commissioned VWV to launch the brand into 16 African countries, through events that ran simultaneously.

Airtel’s launch was conceptualized, produced and managed by VWV. The launch consisted of an interactive production which saw a tie between pre-recorded video and live theatrical presentations.

These events were staged in Burkina Faso, Chad, Democratic Republic of Congo, Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.

Airtel Africa, Standard Chartered Bank and MasterCard honored for mobile payments innovation at Mobile World Congress

Airtel Africa, Standard Chartered Bank and MasterCard Worldwide were honored for mobile payments innovation at the 16th Annual Global Mobile Awards held during Mobile World Congress (MWC) 2011. The recently launched virtual card product, developed in collaboration between Airtel Africa, Standard Chartered and MasterCard, received top honors as the Best Mobile Money Product or Solution.

Honored by a panel of mobile industry experts, the virtual card product was recognized as an innovative mobile payments solution that will offer consumers in Kenya, and eventually across Africa, greater participation in the financial system through mobile commerce. In collaboration between Airtel Africa and Standard Chartered, the virtual card product is powered by MasterCard inControl technology and enables more people to connect to the global marketplace through their mobile phones.

Andre Beyers, Airtel Africas chief marketing officer, and Daniel Monehin, area head, East & West Africa and Indian Ocean Islands, MasterCard Worldwide, received the award on behalf of the three companies at the Global Mobile Awards 2011 ceremony held at the Fira De Barcelona in Montjuc, Barcelona, Spain.

The virtual card product enables Airtel Africa customers in Kenya to use their mobile phone to make online purchases from MasterCard merchants around the world. The simplified online transaction works in the following way: each time an Airtel customer is shopping online he or she will be able to request a single use shopping card number. Airtel money services will then generate a special 16-digit number that enables the completion of the transaction. On completion of the transaction, a confirmation message will be sent to the consumers mobile phone. The single use feature of the virtual card product provides the consumer with a convenient and secure online shopping experience.

We partnered with Standard Chartered and MasterCard in a joint effort to create affordable and innovative mobile services for consumers across Africa, said Beyers. It is a tremendous honor to be recognized by our peers in the mobile industry for the virtual card product, which we hope will set a new industry standard for mobile payments.

We are extremely pleased that this concept has been selected for the GSMA 2011 Best Mobile Money Product or Solution Award. This global award is fitting testimony to telecom & banking companies in Africa, who are the agents-of-change in the development of mobile finance and commerce, said Jaydeep Gupta, Standard Chartered Banks regional head, Distribution & Alternate Channels for Africa, NGL, MESA & India. We are proud of our unique partnership with Airtel Africa and MasterCard. Together we will continue to deliver innovative payment solutions across our geographies.

Said MasterCards Monehin, Consumers are increasingly reliant on mobile technology at each step of their lives from staying connected with their personal networks to making payments on-the-go. We joined hands with Airtel Africa and Standard Chartered to create the virtual card product that not only enhances peoples purchasing experiences, but also creates a financially inclusive mobile platform for people in Africa. We believe that innovations like the virtual card product will help ensure the long-term growth and sustainability of mobile commerce in Africa. We are committed to improving industry collaboration and fostering innovation as well as building interoperability across closed loop systems in Africa and abroad.

About Airtel in Africa
Airtel is the new brand name for the 16 Zain operations across Africa which were acquired by Airtel International in June 2010. Airtel is driven by the vision of providing affordable and innovative mobile services to all. Airtel has African operations in: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. Airtel International is a Bharti Airtel company.

About Standard Chartered Bank

Standard Chartered PLC is a leading international bank, listed on the London, Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in some of the world’s most dynamic markets and earns more than 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years.

With 1,700 offices in 70 markets, Standard Chartered offers exciting and challenging international career opportunities for more than 80,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. The Bank’s heritage and values are expressed in its brand promise, ‘Here for good.’

About MasterCard Worldwide

As a leading global payments company, MasterCard Worldwide prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network the fastest payment processing network in the world MasterCard processes over 23 billion transactions each year and has the capacity to handle 140 million transactions per hour, with an average network response time of 140 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard, Maestro, and Cirrus; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass and MasterCard inControl. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories.

LAP grabs 51% of Sonitel (Niger)

If reports are to be believed, LAP Green Networks has agreed to acquire 51% of Niger’s state-owned telco Sonitel for US$63.6 million.

According to LAP CEO Abdul Basit Al Azzabi, over the next five years the Libyan company plans to invest US$146 million in Sonitel and its wireless arm SahelCom. Niger has become something of a telecoms hotspot in recent years, with Bharti Airtel, France Telecom and Atlantique Telecom all operating there.

LAP also owns operators in Rwanda, Uganda, Ivory Coast, Sierra Leone, Sudan, Chad and Togo.

Airtel Nigeria stands by its new name

Airtel Nigeria has defended its decision to change the name Zain Nigeria.

According to Chairman and Managing Director, Sunil Bharti Mittal, the new brand identity gives the company the opportunity to present a single, powerful and unified face to customers, stakeholders and partners around the world.

He added that the new brand identity reinforces Airtel’s promise to deliver innovative services and a superior brand experience to their 200 million customers across Asia and Africa. Now the brand is modern, vibrant and friendly.

Apart from Nigeria, Airtel has operations in Burkina Faso, Chad, Congo, Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.

Five African Countries Agree to synchronize Radio Spectrum Policy

­Five African countries – Benin, Burkina, Mali, Niger and Chad – have reportedly signed an agreement to coordinate the management of radio spectrum. The agreement particularly provides a settlement process for spectrum use along national borders where interference can be at its worst.

As per the caretaker Chairman of the Niger national regulation Council, Pereira Charafadine, though the spectrum of radio-electric frequencies is reusable, it is a limited source that needs to be soundly managed.

He added that these five countries seek to jointly endorse and sign a document on the coordination and sharing of frequencies at their common borders, in line with the Article 6 of the Telecommunication Regulations stated by the International Telecommunications Union (ITU).

Chad Government Sells 60% Stake in Sotel Tchad

­Libyan state-owned firm LAP Green Network has acquired a majority stake in Chad’s Sotel telecoms firm for US$90 million. The deal, which gives the Libyan firm 60% stake in Sotel Tchad, was signed during a visit to Chad by Libyan leader Muammar Gaddafi.

Sotel TChad operates both a mobile and landline network. According to reports citing LAP Green Network Managing Director Abdulbaset Elazzabi, the value of the contract which was signed during the Libyan leader’s visit is US$90 million. The deal came with a commitment by the Libyan company to invest up to $100 million in boosting Sotel’s network.

As per the previous reports citing authoritative sources, last the Chadian government had already sold the 60% stake to a UK based company, Mid Cost for an undisclosed amount. It is presumed that the UK Company failed to complete on the deal.

Earlier, Orascom Telecom Holding (OTH) finally settled a long running dispute with the government and was paid US$4.9 million in satisfaction of an International Chamber of Commerce (ICC) panel award.

The dispute occurred from a decision by the Chadian Ministry of Telecommunications to invalidate the transfer of 51% of the shares of Tchad Mobile to OTH despite the fact that a valid agreement was entered into in late 2002 between OTH and Sotel Tchad. As a result, OTH suspended its operation of TchadMobile in July 2004.

‘Airtel – Zain’ lost 6 million subscribers in Africa since Bharti’s acquisition

Zain has lost 6 million of its subscriber’s base from the day it tied knot with Bharti Airtel. Although according to Airtel’s spokesperson, the reporting in Kenya was different from that of other markets where a user is not accounted for if a person did not receive a single call for a month. However, most telcos label a user inactive only if the user has been inactive for anywhere between 3 to 6 months.

After announcing first-quarter results previously this month, Bharti Airtel disclosed Bharti Zain’s subscriber base at 36.3 million as touching over 42 million, the figure peddled at the time of the acquisition.

According to the spokesperson for Bharti Airtel, as good governance and to align the definition of customer reporting of Africa to India, the company reported 36.36 million customers. This represents revenue earning customers only. However, he did not specify if the company was seeing a churn in its African operations.

As part of the $10.7-billion deal, Bharti had agreed to acquire the operations of Zain in Burkina Faso, Chad, Congo Brazzaville, the Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The company is scheduled to unveil the Airtel brand in these countries by October.

Though the acquisition of Zain may have been responsible for the decline in profits, if Bharti doesn’t ensure customer satisfaction in the African nation, revenues and profits will continue to slide.

75% of Mobile Apps Have Avoidable Bugs: Mobile Distillery

Mobile Distillery has found out that 75% of mobile applications launch with bugs that could be avoided.  These statistics is based on five years of running a centre for mobile web and mobile app testing.

As per the records of the company, as mobile phones are increasingly in touch with the real world through technologies like Bluetooth, GPS, accelerometers and NFC, emulators and remote testing devices are less efficient in covering all real use cases.

According to Mobile Distillery CEO, Jean-Philippe Bechade, based on the experience of the company with many companies and developers creating and offering mobile apps across a wide range of handsets, unfortunately all too often these apps aren’t tested in advance. At best, end users report bugs they have experienced; at worst, they just live with the bad brand experience. This can not only damage the company’s revenues, but also ruin the customer relationship.