Africa: Celtel Sinks $700 Million Into Nigeria Operations
Pan African telecommunications group, Celtel International is sinking over US$700 million (about Ush1.29 trillion) into its Nigeria operations.
“We are already investing heavily in the country, with more than US$700 million being spent to improve network coverage through the erection of 1,000 new base stations and bringing the latest mobile network products to our customers,” the group’s chief commercial officer, Mr. Tito Alai announced recently.
Alai and other top company executives were in Nigeria for the recent official re-branding of Vmobile following Celtel’s purchase of the former’s 67% shares in May 2006 for $1.005 billion (Ush1.85 trillion).
The transaction, including the purchase of existing shares and a substantial equity injection was at the time, the biggest acquisition by Celtel and also in the history of the Nigerian mobile sector with a penetration rate of 13%.
“Our expansion in Nigeria over the next 90 days will dwarf what has been previously achieved in the last 12 months as we show how we are acting on our promise of improving the lives of our customers,” Alai said. Celtel Nigeria offers mobile coverage to more than five million customers while the two other major players, South African based MTN and Globacom each have about nine and four million subscribers respectively.
Mr. Gamaliel Onosode, the chairman of the board of directors for Celtel Nigeria said re-branding was not just a celebration of the arrival of Celtel in Nigeria but that of a new dawn in Nigeria’s telecommunications industry. The integration of Vmobile, the first mobile network to launch commercial services in Nigeria, into the existing structures at Celtel is a great show of business faith in Africa’s most populous country of approximately 130 million that has a largely untapped telecom potential
Industry experts estimate market growth to reach between 25 and 30 million subscribers by 2010, up by over 35.6% from the current 19 million.
Describing Nigeria’s importance to the industry Mr. Marten Pieters, group chief executive officer said, “Celtel has taken Nigeria seriously right from the days of the license auction. We also tried to acquire Nitel, when it was up for sale, but the more attractive option of buying into Vmobile proved too tantalising to be ignored.”
With operations in 15 African countries, Celtel is owned by the Kuwait based MTC Group, a leading provider of mobile telecommunications in the Middle East.
Source- http://allafrica.com
Technorati : Africa, Celtel, Kuwait, MTC, Mobile, Nigeria
Ice Rocket : Africa, Celtel, Kuwait, MTC, Mobile, Nigeria
Celtel boss lists ways of achieving cheaper phone services
Celtel has breathed fresh air into the government’s quest for lower GSM tariff in the country by proposing strategies for reducing the huge operation cost of operators, one of the key causes of the prevailing cost of service.
According to Celtel’s Chief Operations Officer, Lars Stork, the main route to lower tariff is reduced cost of operation, a factor, generally regarded as the major impediment to lower tariff regime of GSM service.
He stated this while presenting a paper entitled “Commercial Strategies for Cooperation and Expansion” at the 5th International Nigeria Telecommunications Summit at the International Conference Centre, Abuja, Nigeria last Thursday.
Factors that could help to reduce operating cost outlined by Stork include public/private partnership in the provision of key requirement for successful GSM operation; increased local services achievable through government and industry support for Nigerian suppliers (in open and transparent tenders) to compete for supply of cost effective solutions; and sharing of expertise across the networks for synergy and greater effectiveness.
Other factors listed by Stork are: speeding up of local research aimed at building capacity and reducing dependence on offshore supplies; sharing co-location infrastructure among operators where technically and commercially feasible; and taking advantage of the economy of scale of operators with big buying power.
The Celtel officer, a Business Development expert with an extensive work experience in Nigeria and a number of African countries, also identified co-location infrastructure that can be shared by operators as transmission structures, masts and other structures. Methods of achieving effective sharing of resources highlighted include “one to one sharing, and simplified and uncomplicated infrastructure sharing, among others.’
He explained that operators could and should collaborate for the good of the industry and the society by jointly tackling common problems such as impediments to Environmental Impact Assessment; lack of certain basic infrastructure such as the appalling power supply situation; and multiple taxation. Others include mutually dealing with the obstacles to achieving fair interconnection between operators where feasible; and hindrances to stable regulatory environment.
The Celtel official said the mobile telephony would continue to be a vital driver for development as demonstrated by the company’s experience across 15 African countries. He also drew example from the Economist edition of March 2005, which reported the outcome of a research at the London Business School sponsored by the Vodafone. The report concluded that “plenty of evidence suggests that the mobile phone is the technology with the greatest impact on development. A new paper finds that mobile phones raise long term growth rates, and that their impact is twice as big in developing nations as developed ones,” saying this evidence further provide a reason for this optimism.
Also, he told the audience of Celtel success stories across the continent, saying the company is now a market leader in nine out of the 15 African countries in which Celtel operates.
Celtel operates in different countries with different cultures, political situations and difficult markets and over 17 million customers across Africa covering half of Africa’s population. Celtel, according to Stork, has sustained brand equity growth, a brand value which is 2.5 times greater than its EBITDA and a networth of over USD 1 billion; and has created over 6,000 jobs directly and over 60,0000 jobs indirectly.
Source- http://www.vanguardngr.com
Technorati : Celtel, GSM, Mobile, Vodafone
Ice Rocket : Celtel, GSM, Mobile, Vodafone
Celtel proposes strategies for lower tarrif
Celtel has indicated an interest in lower GSM tariff regime in the country by proposing strategies for reducing the huge operational cost. According to celtel’s Chief Operations Officer, Lars Stork, the main route to lower tariff is reduced cost of operation, a factor, generally regarded as the major impediment to lower tariff regime of GSM service.
While presenting a paper entitled, “Commercial Strategies for Cooperation and Expansion” at the Fifth International Nigeria telecommunications Summit held at the International Conference Centre Abuja, last Thursday, he said, the high cost of operation was one of the banes of service in the country.
Factors that could help to reduce operating cost outlined by Stork included public/private partnership in the provision of key requirement for successful GSM operation; increasing local services achievable through government and industry support for Nigerian suppliers (in open and transparent tenders) to compete for supply of cost effective solutions; and sharing of expertise across the networks for synergy and greater effectiveness.
Other factors listed by Stork were, speeding up of local research aimed at building capacity and reducing dependence on offshore supplies; sharing co-location infrastructure among operators where technically and commercially feasible; and taking advantage of the economy of scale of operators with big buying power.
The celtel officer, a business development expert with an extensive work experience in Nigeria and a number of African countries, also believes that co-location infrastructure that can be shared by operators.They are transmission structures, masts and other structures. Methods of achieving effective sharing of resources highlighted include, “one to one sharing, simplified and uncomplicated infrastructure sharing, among others.
He explained that, operators can and should collaborate for the good of the industry and the society by jointly tackling common problems such as impediments to Environmental Impact Assessment; lack of certain basic infrastructure such as the appalling power supply situation; and multiple taxation. Others include mutual dealing with the obstacles to achieve fair interconnection between operators where feasible; and hindrances to stable regulatory environment.
The celtel official said, the mobile telephony would continue to be a vital driver for development as demonstrated by the company’s experience across 15 African countries. He also drew example from the economic edition of March 2005 which reported the outcome of a research at the London Business School sponsored by the Vodafone. The report concluded that “plenty of evidence suggest that, the mobile phone is the technology with the greatest impact on development. A new paper finds that, mobile phones raise long term growth rates, and that, their impact is twice as big in developing nations as developed ones”, saying this evidence further provided a reason for this optimism.
Source- http://www.tribune.com.ng
Technorati : Africa, Celtel, GSM, Mobile
Ice Rocket : Africa, Celtel, GSM, Mobile
Uganda: Celtel Takes Over Nigeria’s Vmobile
CELTEL International has fully taken over control of Nigeria’s Vmobile and re-branded it into its famous red and yellow logo along with its brand promise of ‘Making Life Better.’
In a press statement issued recently, the Celtel International Group Chief Executive Officer, Mr Marten Pieters, said Nigeria is a very important market for any serious telecommunications operator in the world.
“Celtel has taken Nigeria seriously right from the days of the license auction. We also tried to acquire Nitel, when it was up for sale, but the more attractive option of buying into Vmobile proved too tantalising to be ignored,” he said.
Celtel’s success in Nigeria underscores the increasing competition among telecom players on the continent for more visibility and business as Africa continues to take leaps into the cyber world.
Re-branding Vmobile, the first mobile network to launch commercial services in Nigeria, follows the acquisition of a controlling stake in the company by Celtel.
The deal, worth $1.005 billion (Shs1.8 trillion), was concluded in May 2006. Officials said the Group plans to do an extensive rollout of the Celtel brand in Nigeria, with investments already hitting more than $700 million (Shs1.2 trillion) being spent to improve network coverage through the erection of 1,000 new base stations and bringing the latest mobile network products to our customers
Celtel offers telecommunications services with mobile licenses covering more than 400 million people, close to half of Africa’s population.
Celtel International is owned by MTC, a leading provider of mobile telecommunications in the Middle East and Africa.
It has more than 15 million customers and operates mobile cellular operations in 14 countries. These include Burkina Faso, Chad, DR Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Tanzania, Uganda and Zambia among others.
Source- http://allafrica.com
Technorati : Africa, Celtel, MTC, Middle East, Mobile, Nigeria, Uganda, Vmobile
Ice Rocket : Africa, Celtel, MTC, Middle East, Mobile, Nigeria, Uganda, Vmobile
Nigeria: Celtel International Sets Foot in Nigeria
Celtel has unveiled its brand in Nigeria after acquiring Vmobile, one of the top telecom companies in the country, for $1.005b.
“The event is celebration of a new dawn in Nigeria’s telecommunications industry,” Gamaliel Onosode, the board chairman, said during the launch recently.
“The promise of making life better is a business philosophy practised by Celtel,” Onosode said in a statement.
Marten Pieters, the chief executive officer of Celtel International, said, “Nigeria is an important market for a serious telecommunications operator. Celtel has taken Nigeria seriously from the days of the licence auction. We also tried to acquire Nitel, but the more attractive option of Vmobile proved too tantalising to be ignored.”
Source- http://allafrica.com
Technorati : Celtel, Mobile, Nigeria
Ice Rocket : Celtel, Mobile, Nigeria
Mobile industry in Africa satisfying key consumer needs
While Western mobile companies scratch their heads about how to replicate or adapt the widespread adoption of mobile data services in Japan and Korea, Africa provides another example of how people respond to a great need not new technology. Currently WIZZIT Bank is providing a mobile banking initiative to fulfil the needs of the 14 million South Africans who have no proper access to banks or other financial services. Analysts estimate that up to 60% of the 22 million mobile phone owners would be without bank accounts or easy access to money transfer systems and that WIZZIT would provide these mobile consumers with a significant benefit in becoming economic citizens.
WIZZIT is essentially a new bank that provides its customers with the ability to carry out transfers, pay standing orders, top-up mobile phone credit and take out money. Security is via the usual four digit codes used by other banks and they have relationships with other banking chains allowing you to still do things the usual way. They already have what they call a “cult following” and have set up accounts for farmers to allow the mto send money home or to other family members much more easily.
This kind of banking operation has been made illegal in England and, looking at some of the details more carefully, it is clear that WIZZIT is, if anything, not a business model to follow in all its details, even if it suits the needs of its current target market. First of all, the bank carries out no credit checks, something obviously impossible for some of the citizens who have no credit to check. It takes only 2 minutes to set up an account and the service is also available to schoolchildren, which makes it universal and, to Western minds, inherently suspicious. Uniquely, WIZZIT has a policy to only employ unemployed people and uses them as salespeople to demonstrate and spread their knowledge of the service. You’d be hard pressed to find many people who could have faith in a bank in England or America who followed a similar policy.
It remains to be seen if this service can remain popular and secure but it fundamentally fulfils a glaring need for its customers. It is also just another example of how Africans in general are some of the highest users of WAP technology to access the internet, in particular using their mobiles to access world news sites such as the BBC. Poor fixed-line networks and the high cost of computers have made internet access far more more appealing on mobiles. Fast adoption of 3G Networks and the effciency of cellular network companies as opposed to the government-run telecoms companies have made WAP an internet standard in Nigeria and South Africa.
Again this model is unrepeatable in its details, given the high development and penetration of broadband in Western companies, whcih effectively raised the bar for mobile phones and cannibalised the potenital market. What is noticeable is that in both cases mobile phones have fulfilled needs otherwise uncatered for or under-provided through other media (Banking and News-provision respectively). It is this aspect of recognising useful gaps in the market that needs to be worked on by operators in developed economies, where data aservices are more likely to enhance or improve existing habits and behaviours rather than create new needs.
Once networks provide this kind of longed for service to their customers they are likely to see increased goodwill and loyalty that has previously eluded them. As an unlikely example of this relationship developing, witness the woman in Sierra Leone who named her new-born son “Celtel” after the local mobile operator that allowed her to contact a midwife in time to deliver her baby. Admittedly, this is unlikely to happen in Europe (“We’ve decided to call her “Orange”!”) but at least we can get to the stage where we don’t resent or ignore them.
Source- http://www.w2forum.com
Technorati : Africa, Cellular, Wireless
Ice Rocket : Africa, Cellular, Wireless
Nokia, Motorola to open plants in Nigeria
Lagos – Leading mobile phone manufacturers, Nokia and Motorola, would soon establish plants for the manufacturing and assembling of mobile phone handsets and other accessories in Nigeria.
The plants were to be established under a special partnership arrangement between the Nigerian government and the foreign investors, This Day reported.
This was disclosed during the 5th International Telecommunications Strategic Conference held at the International Conference Centre in Abuja.
The country’s minister of communications, Femi Anibaba, said the government realised the need to cultivate local content in the sector to ensure rapid growth in Nigeria and other African countries.
A Chinese firm, ZTE, has already established a hand terminal manufacturing plant in Abuja with an initial capacity to manufacture one thousand handsets per day.
Anibaba said the conference would serve as an important avenue to showcase Africa’s potentials in telecommunications and pave the way for foreign direct investments.
Meanwhile, Nigeria’s leading GSM operator, MTN, on Tuesday slashed its major airtime rate cut for its subscribers.
Source- http://www.businessinafrica.net
Technorati : Mobile, Motorola, Nigeria, Nokia
Ice Rocket : Mobile, Motorola, Nigeria, Nokia
Celtel to rebrand Nigeria’s Vmobile
Nigerian mobile operator Vmobile’s new 65 percent stakeholder, Celtel, is preparing to rebrand the company, reports This Day, citing Martens Pieters, group managing director of Netherlands-based Celtel. Pieters explained that the company is making a strong financial commitment to Nigeria with the backing of its shareholder, Kuwait’s MTC.
Source- http://www.telecompaper.com
Technorati : Celtel, Kuwait, MTC, Netherland, Nigeria
Ice Rocket : Celtel, Kuwait, MTC, Netherland, Nigeria
Nigeria’s Glo reaches 9 million users in three years
Nigeria
‘s Glo Mobile has grown its subscriber base to 9 million in the three years since its launch, Vanguard reports. The Globacom subsidiary is
Nigeria
‘s second-largest mobile operator after MTN. The company is celebrating its third anniversary with a package of new products and promotions. It has introduced Glo Xcite for entertainment, news and information content and Glo Caller Tones to replace monotonous default ring tones. Globacom COO Mohamed Jameel also said the fixed-line operation would start offering services to corporate customers using its fibre network by the end of the year.
Source- http://www.telecompaper.com
Technorati : Glo Mobile, MTN, Mobile, Nigeria
Ice Rocket : Glo Mobile, MTN, Mobile, Nigeria
Nigeria: A3&O Wireless Introduces Imate Phones
Provider of mobile and wireless technologies, A3&O Wireless has comfirmed its introduction of the distribution of iMate mobile products and accessories into the Nigeria market.
The iMate models to be introduced are Jamin, KJam, and Jasjar and Smartflip with more to be introduced subsequently.
The Business Development Executive of the company, Adewonuola Ademulegun, who disclosed to THISDAY said that they are the authorised distributor of the iMate phones in Nigeria, said “The iMate brands are Personal Digital (PDA) phones or pocket personal computer. What makes the phones different from others is that they run on Microsoft windows mobile. The Microsoft Windows Mobile technology combines the technical elements of cellular technology with the basic business requirements of mobile PC platforms into a single device. It narrows the barrier between the phone and the PDA as it allows the user a single point of contact back into their standalone PC or notebook”
She explained that the phones could be used to check Contacts Calendar, Book meetings, use of SMS Messenger, Tasks & Voice Notes, MS word, MS power point and Excel.
According to Ademulegun, another special feature called ActiveSync which enables one to synchronize your global contact, calendar, task etc. from the PC or laptop to the phone and vice versa. It helps you to save your data and provides a back up in your computer in case of theft.
Ademulegun also explained “You can access your mails anywhere, anytime and keep your office on the run. the technology allows one to send and receive message. One does not have to go on-line. Whenever new mail is received in your inbox, the message is automatically available to read on your iMate phones.
GPRS and EDGE support make for speedy data connections, and the phone can act as a GSM data modem, with both Bluetooth and USB connectivity. The device has everything a computer has, she added.
Having tested the phones, she comfirmed that they are standard phones with a lot of memories, features and the battery live is fantastic, continuing, she said they do the same thing regardless of the service.
iMate has added chic, sleek and sexy to the already astounding range of features in its Smartphone range with the new iMate Smartflip. The Smartflip is the perfect balance between business functionality and lifestyle applications – a feature-rich Smartphone with a unique combination of striking good looks and remarkable functionality.
Incorporating the latest mobile design and cutting edge features, the K-JAM model should consign many business devices into the dustbin as it provides wide range business solution.
The I-mate JASJAR, a stunning device with a feature set that is world class. Propel to new heights with fast data speeds using the 3G capability and dazzling screen you can pivot into space.
I-mate JAMIN is built from the ground up to serve the complex needs of busy individuals.
Whatever model one chooses, the iMate series offers end-to-end mobile solutions that are quite unique in the telecommunications industry.
She disclosed that the A3&O as a Wireless technology and experts are looking for ways to build the applications to utilise the technology that the phones has in order to make it useful and make life easier every sector.
Ademulegun stated that devices like the iMate are now moving out of the era of being the technologically advanced toys for senior managers and engineers, and entering the mainstream of business applications, a trend evidenced by strong and steady growth in demand in other parts of Africa. A3&O Wireless, with an experienced team of application developers and several successful ventures, is positioned to support businesses entering into mobile applications.
She said she has no doubt in Nigeria that the phones is going to pick up as the technology gets more and more advanced.
As long as the business people have access to the product, the sky is the limit for the product. It is not just about the looks but it is what the phone can offer and that is our selling point, she concluded.
I-mate smart phones are available at retail stores of PC outlet and Daxtech Nigeria Ltd.
Source- http://allafrica.com
