MTN Uganda halts plans to block calls to rival network
The Ugandan government has announced that MTN Uganda Ltd. has agreed not to block calls to a rival network operated by Libyan-owned Uganda Telecom Ltd. over unpaid interconnection fees.
According to Uganda’s Information and Communication Minister Aggry Awori, the government had agreed with the companies to solve the matter in an amicable way to avoid any inconvenience to the public. Last week, MTN Uganda–a unit of Johannesburg-listed MTN Group Ltd stated that Uganda Telecom owes it US$8.6 million in unpaid fees which have accumulated over a three-year period.
MTN is the country’s No. 1 mobile telecommunications company by subscribers and has at least 6 million subscribers. It had stated that it would block the calls from March 14 if the bill wasn’t cleared.
The termination would have blocked Uganda Telecom subscribers from making calls to MTN customers. MTN subscribers would also not be able to make calls to Uganda Telecom subscribers, estimated at 2 million. Uganda Telecom also stated that the amount demanded by MTN has been contested and the two companies are currently in the process of reconciling their accounts.
The Libyan Arab Portfolio, or LAP Green Network, holds a 51% stake in Uganda Telecom. The remainder of the shares is owned by the Ugandan government.
MTN eyes 49% NetOne stake (South Africa, Zimbabwe)
State-owned mobile operator NetOne’s MD Reward Kangai has revealed that the company is in talks with South Africa’s MTN and other African mobile firms about selling a 49% stake.
NetOne is the smallest mobile operator by subscriber numbers in Zimbabwe, lagging behind Econet Wireless and Telecel, a local unit of Egypt’s Orascom Telecom.
Reward Kangai valued NetOne at between $500 million and $800 million. He did not disclose the other African operators. The company expects an agreement during the second quarter of the year. It is expected that NetOne’s subscriber base will increase to 2.5 million this year from 1.6 million in 2010.
He added that the company was hindered by the country’s telecommunications laws from selling more than 49% of its shares to a strategic investor.
Zimbabwe has a low mobile penetration rate, which makes it attractive to large mobile operators seeking to expand their footprint on the African continent.
He also stated that NetOne’s turnover would double to $200 million in 2011 boosted by an increase in subscribers and a recovering economy. It (low mobile penetration) presents an opportunity for the company to grow, which also presents business opportunity for the strategic partner.
MTN Uganda warns to suspend connections with UTL
MTN Uganda has warned to stop accepting phone calls from its network to Uganda Telecom (UTL) over claims of unpaid bills for termination charges. The company claims it owes US$8.4 million from its commercial rival.
According to MTN, calls between the two networks could be severed as early as next week if the debt is not paid. MTN customers will therefore be unable to place direct calls to UTL subscribers and vice-versa.
As per Fatuma Nalubawa, a Uganda Telecom spokesperson, the company is looking into the matter and will deal with it appropriately. It was a small disagreement but it will be sorted out.
UTL has also been in dispute with Warid Telecom and Airtel Uganda over unpaid termination fees.
MTN launches borderless roaming across five countries (South Africa)
South Africa’s MTN has launched borderless roaming across five countries where it has subsidiaries – Botswana, Rwanda, Uganda, Swaziland and Zambia. The service applies to both prepaid and contract customers.
According to Serame Taukobong, Chief Marketing Officer at MTN South Africa, they realize that sometimes their customers do not want to roam or even receive incoming calls due to the costs associated with doing so. Now, with free incoming calls on offer, MTN is empowering its customers to roam with ease.
In addition, MTN’s roaming prepaid customers will be able to top-up their prepaid phones with locally purchased airtime cards.
He added that they now offer their customers another seamless way of maintaining their mobile lifestyles and encourage them to keep their phones switched on while out of the country. This will ensure they remain constantly in touch with their businesses and close contacts.
MTN promises to launch 3G services in Swaziland
MTN’s Swaziland subsidiary has confirmed that it will launch 3G services as soon as the telecoms regulator grants them permission. An application earlier this year for a license was however declined for unspecified reasons just a couple of months ago.
The regulator is also the state-owned telecoms network – causing a conflict of interest that may be resolved if long-standing plans for an independent regulator are carried out.
According to MTN Swaziland’s CEO, Ambrose Dlamini, Swazi MTN is 3G ready, all they have to do is to press a button and make the service available to the MTN network users. They are ready, what is outstanding at the moment is to be granted the appropriate licence by the regulator. As soon as they get the licence, they advise that their customers will experience an immense improvement on the data speeds and all other benefits which will come with the 3G technology.
The company is also testing a mobile money platform which could be introduced in the near future.
Vodafone Roaming Services teams up with BICS
BICS and Vodafone Roaming Services are pooling their resources to connect their two communities and achieve greater efficiencies.
BICS consists of Belgacom, Swisscom and South Africa’s MTN and it will initially use the partnership to manage their roaming traffic with Vodafone operators.
According to Daniel Kurgan, CEO of BICS, this cooperation is a major step for the mobile industry to guarantee seamless roaming for all mobile users when they cross national borders. It is a direct response to the expansion of the mobile environment globally in terms of subscribers, networks, technologies and applications.
Telecom Namibia Deploys Fiber-Optic Cable for High-Speed Broadband Connectivity
Telecom Namibia is set to link the southern African country to the consortium submarine system called West African Cable System (WACS) that links Africa to Europe.
The undersea fiber-optic cable, which was installed along the West African coast, delivered higher broadband connectivity for Namibia and its neighboring cities.
The WACS consortium includes 12 companies. They are Vodacom, Togo Telecom, Telkom SA, Telecom Namibia, Tata Communications/Neotel, Portugal Telecom/Cabo Verde Telecom, Office Congolais des Postes et Telecommunications, MTN, Congo Telecom, Cable & Wireless, Broadband Infraco and Angola Cables.
It is anticipated that the high-speed fiber-optic cable will help in reducing the cost for internet users. The cable will also be expanded to Botswana. According to media reports, Telecom Namibia has installed the required infrastructure to connect its Swakopmund’s landing station to the domestic network. The cable, which is installed in Swakopmund beach, was developed by Alcatel-Lucent Submarine Networks and Telecom Namibia.
Telecom Namibia anticipates that the commercial operation will be initiated in the Q2 of 2011 and hopes that the country will benefit from direct access to worldwide network cable network.
Telecom Namibia’s Managing Director, Frans Ndoroma stated that the 14,900 km WACS will provide direct connectivity between the UK, West Africa and Namibia.
Mobile operators bet upon Africa broadband
Mobile operators in Africa are betting that broadband via a cheaper mobile device can deliver explosive growth and help transform economies.
While mobile firms in developed markets have long seen mobile broadband as a lucrative add-on service, Africa’s limited internet infrastructure means that mobile phones are becoming the point of entry for high-speed Internet.
Big shots of the Industry such as South African group MTN, Indian operator Bharti Airtel and France Telecom’s Orange unit, as well as smaller firms like South Africa’s unlisted Cell C, are ramping up investments to win the new battleground of high-speed internet via mobile phones.
According to Karel Pienaar, Managing Director of MTN South Africa, for many consumers, their first internet experience is via a mobile handset — and this is the next revenue frontier for African markets.
Telecoms research firms expect non-voice revenue in Africa, including short messaging services, to hit $10 billion by 2014, from about $5 billion now. Mobile broadband still accounts for a small fraction of industry revenue, but its contribution is growing rapidly and is now helping to boost revenues at African operators.
MTN, Vodafone’s Vodacom and Kenya’s Safaricom have pointed to the rising smartphone and mobile internet use as partly helping the earnings last year.
MTN recently delivered a 46% rise in first-half data revenue to US$413.2 million, while rival Vodacom posted data growth of 41%.
