TurkcellMTNLeading mobile operator in South Africa, MTN, has said that it is investigating accusations by rival Turkcell regarding a bribery claim for its Iran business. According to company reports, Turkcell has claimed that MTN transferred improper payments to a government official in Iran in order to secure a licence.

The company has said that they have set up a special committee to investigate these claims. In a statement, the company has said that Turkcell was planning to initiate legal action in the US claiming that the operator violated the laws while applying for the licence.

Further, the company has said that MTN has zero tolerance for corruption and unethical business practices.  Accordingly, the Board of Directors has established a special committee consisting of non-executive directors to consider the allegations made in support of the Turkcell US Claim.  The Board has appointed Lord Leonard Hoffmann, an internationally renowned jurist, to chair the committee, to oversee and validate its investigation, and to ensure the integrity and independence of the investigation.

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Cell CSouth Africa based mobile operator Cell C has appointed Alan Knott-Craig as its CEO effective from 1 April 2012. Prior to this, Alan was the CEO for South Africa’s biggest telecom company, Vodacom.

According to company reports, Simon Duffy, non-executive Chairman, Cell C said that Alan is one of the most capable and experienced leaders in the industry and he is confident that his appointment will significantly enhance Cell C’s ability to provide an excellent service to its customers and to compete even more effectively for their business. Further, Cell C has carved out a strong position as an innovative alternative in the industry and, having made considerable progress over the past few years, is strategically well-positioned for growth.

Alan Knott Craig has said that after a break from the telecommunications industry, he is looking forward to being at the helm of Cell C. The mobile telecommunications sector is a highly innovative and disruptive industry, and he is excited about the challenge of making Cell C a more effective competitor to the dominant players.  The company has benefited from considerable investment in the past few years, particularly in its network but also in many other areas of the business, and he is confident that he will be able to build on that investment to accelerate the company’s growth.

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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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Iran has reportedly received a third mobile phone operator by the name of Ritel to offer users in the country with mobile services. Prior to this, Iran played host to two mobile phone operators, Mobile Communication Company of Iran (MCI) and South African-owned MTN Irancell.

According to reports, the government had awarded a third licence to Tamin Telecom in October 2009, however the operator is not yet operational, but has however revealed plans to cover 60 percent of the population with its 2G network and 40 percent with its 3G network by 2014.

Sources claim that there have been speculations regarding whether the licence awarded to Ritel is a new licence or the one issued to Tamin Telecom. Details regarding Ritel’s coverage area or the ownership structure are yet to be disclosed.

 

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South African operator MTN has reportedly tied up with Visa in order to provide m-payment services to unbanked users in emerging markets. According to reports, the service, known as Visa Mobile Prepaid, will be initially marketed in Nigeria and Uganda, as part of its existing mobile wallet service.

As per sources, Aletha Ling, COO, Fundamo (Visa) said that the service provides users with a new set of transaction options such as withdraw money from ATMs, transfer money, and pay bills as though they are using a typical card. She added that customers will not be able to use the product if there is no money in their mobile wallet, similar to a debit card, which is why Visa is describing it as ‘prepaid’.

Ling also said that they provide the solution to operators as well as the banks. Operators, in partnership with a bank, will be able to offer this feature as a value-added service under their brand.

 

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Africa’s leading telecommunications provider, MTN Group Ltd. is reportedly planning to $1 billion in an attempt to increase the number of 3Gwireless stations for faster data transmission in South Africa, subject to government’s approval of its licenses.

According to reports, Lambo Kanagaratnam , chief technology officer, MTN has said that data is the future and they expect to double the 3G base stations in the country over the next two years. Currently, the operator has over 3,000 wireless base stations in South Africa, which carry both voice and data traffic.

As per sources, Mr. Kanagaratnam has also said that the company will focus its data infrastructure investment in the rural areas of Africa’s biggest economy, which are underserviced by other providers, thereby bridging the gap between those who have internet connectivity and those who don’t.

Industry reports suggest that most mobile operators in the region are banking on the growing demand for data, as voice revenues continue to decline.

 

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MTN South Africa has reportedly entered into agreements with other operators in an attempt to increase its fibre footprint. As per reports, Africa’s leading telecom operator has signed agreements with Metro Fibre Networx in Gauteng and Neotel and Ethekweni Metroconnect in the Western Cape and KwaZulu-Natal regions.

Justin Colyn, General Manager, MTN Business has reportedly said that the firm will also use capacity from Telkom South Africa Wholesale to connect businesses in areas that do not have a fibre footprint. He also said that as a provider focused on offering customers the best when it comes to technology innovation and standards, MTN Business has been and continues to remain focused on building their own solid fibre network infrastructure. Having recognised that the last mile fibre access is still proving to be a barrier for many businesses, particularly smaller ones, MTN Business have developed further strategic partnerships with various fibre providers in an attempt to continually offer the customer a 360 degree communications service that has no restrictions in terms of location.

 

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MTN Business, a leading global communications partner, has announced the launch of a customized portfolio of solutions in order to meet the communication needs of SME’s in South Africa. According to reports, the company has launched the SME Plus solution ‘MTN4SME’, offering small business owners significant discounts on various voice packages.

As per sources, Nomalanga Nkosi, GM for Business Marketing, MTN Business said that a recent SME business survey revealed that there are almost 1.5 million SMEs in the country, representing the growth of the business sector as well as its contribution towards South Africa’s economic development. He added that SME Plus helps support this sector in cost effectively meeting their technological and business connectivity needs and increasing operational effectiveness.

 

 

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Vodacom, a dominant wireless service provider in South Africa, may be facing legal action as it seeks to sell its stake in the Congo venture. As per reports, Alieu Conteh, Chairman and Founder, Congolese Wireless Network (CWN) SPRL, has said that the company’s lawyers have filed an application in a Kinhasa court to stop the sale, and that the Commercial Court will consider the merits of the case next week. He added that they will send a letter to all the main shareholders in an attempt to block the sale. Further, CWN has reportedly informed Vodacom that it would use its right of first refusal if it didn’t agree to terms of the sale.

Vodacom Congo has reportedly responded saying that the company needs capital to expand and deliver on the potential of the country. Further, continued delays, groundless accusations, and court action are utterly counterproductive and serve only to damage the future prospects of the business. Vodacom Congo, the third largest operator in the country had 4.2 million subscribers at the end of March. As per industry sources, the company has a subscriber base of 65 million people and a mobile penetration rate of 17 percent.

 

KT corp., a prominent South Korean telecommunications operator, is reportedly looking to acquire a 20% stake in South Africa’s Telkom for approximately $ 575 million. Industry analysts believe that this deal would be beneficial to both entities as Telkom is a good investment target for KT, while the South Korean operator’s expertise in the telecom industry will be of great value to Telkom.

As per reports, KT Corp has said that it has been negotiating the deal with Telkom for several months, but company officials are still not certain that a deal may emerge. Telkom’s share price has been on the downfall since its previous partner, Thintana Consortium pulled out and the government took control of the management through its golden share.

 

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