www.WirelessFederation.com/news: The mobile money service, M-PESA will be introduced in South Africa by Vodacom and its South African banking partner. The new service will enable 26 million mobile phone subscribers in South Africa who have access to a mobile phone, but do not have or have only limited access to a bank account, to send and receive money via their mobile phones.

Vodafone developed the M-PESA service which has already been deployed by Safaricom in Kenya, Vodacom in Tanzania and Roshan in Afghanistan (branded M-Paisa).

According to Cenk Serdar, Director of Mobile Payments at Vodafone Group, the successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure payment services particularly in emerging markets and mobile technology in Africa has already improved the lives of millions simply by allowing them to communicate far beyond their immediate surroundings

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www.WirelessFederation.com/news: Due to the sustained pressure from the operators, Kenyan government is considering a reduction in the cost of 3G licenses.

Earlier on January 7, 2010 the Communications Commission of Kenya (CCK) had rejected calls from Telkom Kenya and Zain to lower the USD25 million fees on the grounds that Safaricom had already paid the full amount for a concession. The operators opposed the government decision on the grounds that that the current fee would prove prohibitive to the deployment of 3G services.

According to Ndemo, they will do everything possible to ensure that they have created the necessary competitive environment, even if it means that they revise the cost to reasonable levels and if they decide that they are lowering, they would have some mechanisms to ensure that Safaricom does not lose its money.

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www.WirelessFederation.com/news: Safaricom entered into a deal with Kenya Power and Lighting Company (KPLC) to lease fibre-optic cable capacity across its national network. With this deal, the company will come on a par with backbone operators such as Telkom and Kenya Data Networks.

Under the deal, a fibre-optic pair on KPLC’s 1,500km Optical Ground Wire (OPGW) system will be operated by Safaricom as built across the national power grid.

According to Safaricom CEO, Michael Joseph, with this new fibre system, they are entering a new realm as a data carrier which will be a major complement to the massive investments made in the country’s main undersea cable ventures and will definitely be offering a better end-to-end data proposition to both retail and wholesale customers.

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www.WirelessFederation.com/news: Even after repeated requests from the mobile networks to lower the fees for 3G licenses, ¬Kenya’s telecoms regulator, the CCK, announced that the amount will remain Sh1.9 billion (US$25 million).

Even though Safaricom acquired a license in 2007 for the full fee of US$25 million in 2007, other operators feel that the price is too high for the market. If the new operators are offered the license at a lower price, Safaricom would seek a refund.

Mobile operator Zain has also applied for a license, planning a network launch in the first half of this year. Zain had 2.4 million subscribers in Kenya while Safaricom had 13.8 million subscribers at the end of June.

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www.WirelessFederation.com/news: Removing the need to deal directly with sub- agents, Aggregator Model, a new system has been launched by Safaricom, a leading mobile phone provider, thus changing tack on its method of recruiting mobile money transfer, M-pesa agents.

As per the new model, the sub agents will be appointed by the agents on its behalf. The model will be introduced especially in the areas like Nairobi which are considered to be highly saturated by the agents. The super agents will give a float to the agents and the details are later passed on to the sub agents who will then work on agreed commissions by the agents.

Essar, a rival telecom operator, on the other hand, is set to launch money transfer service yuCash, thus eliminating the need for sub-agents altogether. Besides, it will ensure that agents get maximum commission, which it says is yet to be finalized but will be competitive.

Safaricom says that they have taken the step to protect its partnership with the existing agents. According to Safaricom chief executive Michael Joseph, existing agents have the capacity to serve Nairobi and other areas adequately. Besides, the migration of the existing sub-agents under the agency model to Aggregator has already begun.

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www.WirelessFederation.com/news: In order to enter Kenya’s fast-growing mobile data market, a series of 3G trials will be conducted by Telkom Kenya (Orange) across its mobile network.

The number of customers of the telecom operator rose from 697,000 a year ago to 772,000, this year. The company now intends to build on this growth by investing in the budding data market and 3G presents the opportunity to achieve fast growth. Submarine cable systems like SEACOM and TEAMS, has also boosted network capacity and bandwidth availability, leading to the growth in demand for data services in Kenya.

Telkom’s rival Safaricom was first to roll out 3G services, to obtain a licence in October 2007 and to launch W CDMA-based services in 2008. Safaricom also announced an increase by 93.6% over the year that  ended 30 September 2009, with internet representing 17.7% of its revenues.

Zain Kenya followed suit in October 2009 and purchased its own USD25 million 3G concession in preparation for a network rollout.

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M-Pesa launches in UK (Kenya)

Vodafone’s group company, Safarikom has launched m-pesa, it’s mobile money transfer and payment service at selected outlets in the UK.

Kenyans in the UK  can now send money to their friends and family in Kenya through M-pesa UK, direct to their mobile phone wallets.

Western Union, Provident Capital Transfers and KenTv were involved in a small pilot before the commercial launch of this service.  A total of 19 outlets with high local kenyan population were selected to trial this service.

To send money using M-PESA, the sender in UK will be required to identify themselves and furnish the agent with the recipient’s name, Kenyan mobile number and the amount being sent in Sterling Pounds. This will be converted at current rates and sent in Kenyan Shillings.  Neither party is charged a registration fee.

A transaction fee ranging from £4 to £6.90 will be charged though.

Following authorisation by the Central Bank of Kenya, Safaricom shall be increasing the locations in the UK from which money can be sent to M-pesa customers as well as launching services across other popular remittance corridors

Currently, the maximum amount that can be sent internationally per transaction through M-pesa is £250 while the total allowable per month from a single sender in the UK is £1,000.

“The successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure cash payment services in emerging markets,” said Nick Hughes, Vodafone’s Head of International Mobile Payments. “Our partnership with Western Union allows M-PESA subscribers to receive international remittances and builds on the demand we have already seen domestically in Kenya.”

“This program aligns a global leader in money-transfer services, the world’s largest mobile operator group, and arguably one of the most impressive success stories in mobile money,” said Matt Dill, Senior Vice President, Western Union Digital Ventures.  “In offering M-PESA users the opportunity to receive funds from abroad for the first time, these three companies are changing the way money moves around the
globe.”

Safaricom CEO Michael Joseph said: “We wish to invite Kenyans living in the UK to take advantage of this service, which presents a real innovation on our M-pesa menu. Through strategic partnerships with Western Union, Provident Capital and KenTV we are giving them an opportunity to convert across two currencies into M-pesa and send money affordably without any hidden costs – directly to the mobile phone of the recipient.”

www.WirelessFederation.com/news: China Mobile and HTC Corp have reportedly inked an agreement for the joint development of 3G handsets in China. China Mobile Chairman Wang Jianzhou, who is in Taiwan, will meet with HTC Chairwoman Cher Wang to discuss mobile phone procurement and cooperation in development and research of China’s TD-SCDMA standards, a HTC executive unveils.
The strategic alliance is likely to help HTC Corp.’s Ophone to compete with Apple’s iPhone in China’s vast market. China Mobile and HTC will develop at least one new type of mobile phone this year and at least five types next year. The two companies will develop new smartphones based on China Mobile’s Open Mobile System (OMS), the executive added.

www.WirelessFederation.com/news: Chunghwa Telecom, the Taiwanese mobile operator, has reportedly announced a strategic alliance with High Tech Computer (HTC), Microsoft Taiwan and a number of local publishing companies to launch Hami Bookstore, a platform which will offer e-book service, in September 2009.

The reading devices which will be used are smartphones rather than electronic readers, with the iPhone to be selected initially and then smartphone models based on Android and Windows Mobile.
CHT has struck a cooperation deal with the local publishing companies, which will set content charge rates, with CHT getting a 25% commission on sales, the carrier said.

www.WirelessFederation.com/news: China Unicom, the Chinese mobile operator, will reportedly offer first set of iPhone in Carrefour stores and other outlets from September, said Guangdong Unicom Deputy Manager Zhou Youmeng. According to media reports, the operator has bought 5 million WCDMA iPhone handsets from Apple Inc at a price of RMB 2,000 each. The telecom operator plans to sell the 8G iPhones for around RMB 2,400 each and the 16G iPhones for around RMB 4,800 each.

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