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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Bharti Airtel, a leading telecom operator has signed a contract reportedly worth $ 700 million with Nokia Siemens Networks to expand its 2G network and deploy and manage 3G services in Africa.

As per the agreement, Nokia Siemens Networks will manage all network operations as well as provide energy-efficient base stations for Airtel in seven African countries including Madagascar, Malawi, Zambia, Tanzania, Kenya, Uganda and Congo Brazzaville. In an attempt to increase its subscriber base, Airtel has been expanding its presence in Africa’s rural regions.

According to reports, Manoj Kohli Airtel’s CEO (International) and Joint Managing Director said that this partnership will further enable them to rapidly expand their network coverage and provide high-speed wireless internet connectivity to their customers. Further, Nokia Siemens Networks, Chief Executive Officer, Rajeev Suri said that they look forward to working closely with Airtel to expand its network rapidly and deliver the right innovative products and services to help meet user demands.

 

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Malawi’s High Court has reportedly quashed the revocation of Global Advanced Integrated Networks (GAIN’s) mobile licence.

According to Judge Godfrey Mwase, the decision by the public authority may be quashed where the authority acted without jurisdiction or exceeding its jurisdiction or failed to comply with the rules of natural justice where such rules are applicable.

The Malawi Communications Regulatory Authority (MACRA) cancelled the wireless concession belonging to GAIN, which intends to offer services under the G-Mobile banner, in September 2010 for failing to roll out services under the terms of its licence.

I is not the first time that GAIN has successfully appealed a decision by MACRA; last November a court overturned a US$6.95 million fine issued to the company for missing quality of service targets and failing to roll out services, stating that MACRA had overstepped its authority.

 

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Celcom has formally received a licence from the Malawi Communications Regulatory Authority (MACRA) and expects to roll out their network in 2012.

According to CEO Ted Sauti-Phirisaid, it planned to start operations by 2012, hiring over 200 people with another 10,000 working as agents to provide full coverage nationwide.

He added that Celcom would share towers with other network operators.

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Celcom is planning to invest about US$270 million to install its network and start operations in the country as it looks to become the country’s leading operator by 2014.

According to Mulli Brothers MD Leston Mulli, whose company controls 100 percent of Celcom, operator wants to make mobile phone services affordable and accessible to all, especially in rural areas. They want Celcom ‘s goal is to see at least one person in each household having a mobile phone.

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Rwanda completes $95m fibre network

Rwanda has reportedly completed construction of a 2,300 kilometre fibre optic network that links the country to undersea cables running along the east African coast.

The project which was commenced in October 2009 at a cost of $95 million, was set up to increase access to broadband services and attracts foreign investment through business process outsourcing.

According to Ignace Gatare, Minister of Information and Communication Technology, the fibre optic project will initially be operated by an independently-managed government entity on an open access model to accommodate infrastructure sharing with the private ICT services providers. The ultimate goal is to progressively transfer the business to a private business.

Rwanda is a land-locked country with Internet penetration of only 12%. However, Minister Gatare states that the ICT sector in the country generated revenues of US$143 million in 2009, rising by 12% in 2010.

The fibre network connects to undersea cable system at Mombasa in Kenya and Dar es Salam in Tanzania.

The Minister added that initiatives to activate the links have been launched and discussions between Rwanda telecommunication operators that include MTN Rwanda, Tigo Rwanda and Rwandatel and regional cable operators are ongoing.

At a Senate meeting, the minister was asked to increase the awareness to the population on the importance of the use of ICT and made several recommendations, including to extend ICT infrastructure, especially in rural areas; to put more effort in the use of ICT in all sectors and services; to sensitize the population on cyber security of individual data; and to emphasize the quality of education in ICT.

Elsewhere, Google has extended its Gmail SMS chat functionality to add three more African countries to its growing coverage list. Mobile users in Uganda, Tanzania and Malawi can now use Google’s email service via SMS texting.

Gmail users can send and receive SMS messages for free using the service. Non-Gmail users can reply via SMS for regular text charging rates. The networks supporting the service are MTN, Uganda Telecom and Orange (Uganda), Vodacom (Tanzania), and Airtel and TNM (Malawi).

 

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.

Malawi’s oft-delayed mobile network operator, G-Mobile has stated that it will sue the country’s Minister of Information Symon Vuwa Kaunda after he alleged that the company tried to bribe him to get reductions in fines from the telecoms regulator.

G-Mobile has come under pressure to deploy its network and faced fines from the regulator for the delays. Kaunda has alleged that the company had offered to pay him US$33,000 to get the fines dropped – a claim the company strongly refutes. The company was facing a US$6.9 million fine from the regulator, which has also attempted to get the company’s license terminated.

According to the company, it is not their intention to fight public officials, but Minister Kaunda has forced them to think otherwise. They have no choice but to seek the protection of the courts of law since their image and name is being spoiled.

Minister Kaunda has also come under criticism in the country for not reporting the alleged bribery attempt to either the anti-corruption bureau or the police, within 48-hours are required by law. He now claims he will cooperate with any subsequent investigation that takes place.

G-Mobile was granted a license in April 2009, and was due to have launched its network by the end of that year. The regulator has imposed fines on the company and repeatedly extended the launch deadline. The company was given until the end of 2010 to launch its network.

The High Court of Malawi has reportedly upheld a decision by telecoms regulator Malawi Communications Regulatory Authority (MACRA) to introduce a new interconnection law governing calls across both fixed and mobile networks.

Two mobile operators, Airtel Malawi (formerly Zain/Celtel) and Telekom Networks Malawi (TNM), had attained an injunction against the introduction of the Sender Keeps All (SKA) interconnection regime, in which the operator originating the call keeps all of the revenues it collects. However, having heard arguments from MACRA and the operators, the court has now lifted the injunction.

According to a statement from MACRA following the 23 December 2010 ruling, this means therefore that the court’s decision vindicates the legality and rationale of MACRA’s decision to intervene in the interconnection dispute that currently exists among operators. The regulator has now instructed all fixed and wireless operators to abide by the new interconnection law.