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.

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Etisalat Nigeria has introduced special roaming rates for other West African countries.

The Easy Pass service enables subscribers who roam in countries where Moov networks are available to make and receive calls, as well as send and receive SMS, at a uniform discounted rate.

The Easy Pass service will also give subscribers a low call rate to call Nigeria, at US$0.52 per minute. Currently accessible in six countries, including Benin Republic, Togo, Niger, Gabon, Central African Republic and Cote D’Ivoire, the Easy Pass is available to prepaid and postpaid subscribers on the Etisalat Network. Customers can also recharge while roaming in the six countries by using their normal Etisalat recharge cards.

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Operators will be upgrading backhaul to match the capacity of core and access networks that have been receiving constant attention in the Sub-Saharan African mobile network. ­Infrastructure sharing will increasingly be used by operators to reduce capital expenditure (CAPEX) and operating expenditure (OPEX) on backhauls.

Mobile network backhaul infrastructure plays a key role in the delivery of services to end users and is likely to be an important spend area for network upgrades during the medium and long terms.

New analysis found that the backhaul infrastructure markets in Angola, Gabon, Ghana and Kenya spent $355 million in 2009 and estimates this to reach $1.45 billion in 2015.

According to analysts, escalating demand for data services is driving the need for upgrading mobile network backhaul infrastructure. Operators need to share costs and invest in network technologies that support transmission of large quantities of data such as optical fibre.

Landing of undersea cables on various African countries’ coasts and deployment of enhanced 3G (3G+) and 4G technologies will amplify the increasing demand for data services. Microwave-based backhaul is likely to remain dominant for rural coverage; however, operators are likely to adopt resource sharing to provide higher-capacity backhaul for areas with sustainable high demand. A key challenge will be the high CAPEX required for new technologies.

They added that the high CAPEX and OPEX associated with deploying and maintaining backhaul infrastructure will influence investment into higher capacity technologies. Furthermore, the inadequacy of other supporting infrastructure, like reliable power supply, will slow the deployment of new technologies.

Sharing infrastructure will enable operators to cost effectively deploy backhaul networks that meet the increasing demand for data services. Outsourcing of backhaul services can also be used to reduce OPEX in areas with limited demand.

Mobile operators need to ensure that their backhaul networks are upgraded to avoid creating a bottleneck between access and core portions. Backhaul networks should be upgraded in response to increasing network traffic.

Since upgrades can be expensive, operators need to segment their markets. They can deploy high capacity fibre technologies in high demand areas while wireless backhaul technologies can still be used in low demand rural areas.

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 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.

India’s Tech Mahindra Ltd. expects to start offering call center services to Bharti Airtel Ltd.’s operations in six African countries from Feb. 1.

Earlier this year, Bharti Airtel had selected Tech Mahindra–along with International Business Machines Corp. and Spanco Ltd.–to provide business process outsourcing (BPO), services to the carrier’s operations in 16 African countries.

According to Sujit Bakshi, President, Corporate Affairs and BPO, under the five-year deal, Tech Mahindra will offer core customer service functions such as call centers and back offices in Zambia, Gabon, Ghana, Malawi, Congo DRC, Congo B. The deal didn’t involve making any upfront payment to account for cost savings that may accrue to Bharti.

Tech Mahindra’s BPO division accounted for 5.8% of the company’s US$990.06 million total revenue in the last fiscal year ended March 31. The segment employed 8,489 people at the end of the September quarter.

Bharti entered the African market through a $9 billion acquisition of Kuwait-based Mobile Telecommunications Co.’s assets in the continent in a bid to expand its business to offset the effects of stiff competition in India. The company has about 45 million subscribers in Africa, where the average telecom penetration is lower than India, and aims to achieve 100 million subscribers by 2012.

According to Bakshi, as part of the deal, Tech Mahindra will take over about 2,000 employees on the rolls of Zain and on contract and hire more staff locally to offer services in the six countries. Zain has about 4,500 employees in the 16 African countries, including sales personnel. Tech Mahindra is also targeting additional revenue streams from the telecom operator as it adds new subscribers and from new lines of services that Zain will offer.

As per the contract, which runs in two phases, Tech Mahindra will operate from Zain’s premises in the first phase and will take over the premises and also operate from its own centers in the second phase.

He added, the company will also invest in new hardware such as desktop computers and take over Zain’s existing hardware at depreciated value, depending on its condition.

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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.

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.

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www.WirelessFederation.com/news: Consolidated revenues of MAD7.437 billion (USD858 million) has been reported by Moroccan telecoms group Maroc Telecom in the first quarter of 2010, reflecting an increase of 4.3% compared to the same period in 2009.

The total customer base of the group stood at 22.4 million, up by 14% year-on-year, across divisions in Morocco, Mauritania (Mauritel), Burkina Faso (Onatel), Gabon (Gabon Telecom), Mali (Sotelma) and Belgium (Mobisud Belgium).

EBITDA reached MAD4.282 billion, up 1.5% y-o-y and consolidated operating income rose 0.5% year-on-year to MAD3.205 billion. Fixed, mobile and broadband operations of the company in Morocco garnered MAD6.095 million, down 0.7% year-on-year. Financial impact of marketing and communications efforts has been attributed the reason behind the gain.

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www.WirelessFederation.com/news: Sale of Zain Gabon to India’s Bharti Airtel has been approved by the Gabon government. The announcement has been made by Kuwait’s telecom group Zain. Bharti, India’s top mobile operator expects that the deal could close early.

A deal was struck by Bharti with Zain in March to buy the Kuwaiti telecoms operations in 15 African countries including Gabon for $9 billion. According to the government, Zain Gabon had not complied with telecoms regulations.

According to Nabil bin Salamah, Zain’s CEO, the company has confirmation from the Gabon government advising it that they have no objection to the transaction between Zain and Bharti Airtel.

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