IFC Invests in IHS Africa to expand access to telecommunications in Sub-Saharan Africa

IFC, a member of the World Bank Group, along with co-investors Investec and FMO, today announced a $79 million equity investment in IHS Africa PLC to help the company build and acquire mobile phone towers in sub-Saharan Africa, increasing mobile phone coverage and reducing communications costs in the region.

IHS is the largest telecommunications infrastructure provider in West Africa with more than 2,700 towers under management. It is expanding its ownership and leasing operations throughout Africa.  The company owns, manages and leases space on its mobile towers to telecom companies, helping to bring down costs, expand coverage, accelerate technology rollouts and improve the quality of service for subscribers in Africa.

IHS Executive Director, Issam Darwish, said, IHS is dedicated to partnering with operators and investors across the African continent. IFC, Investec and FMO are all investors that understand the unique needs of the growing telecoms sector and the changing competitive landscape.”

Broadening access to affordable mobile telecommunications services remains a crucial part of development across Africa,” said Bernard Sheahan, IFC Director of Infrastructure & Natural Resources for Sub-Saharan Africa and Latin America and the Caribbean. With this investment in IHS, IFC is continuing its commitment to further lowering the barriers to accessing the knowledge, innovation, and improved government and business services that mobile communications can bring.”

By owning and operating the communications towers, IHS can increase the efficiency and quality of existing networks while helping operators accelerate network expansion into rural areas.  IHS is currently working with many of the region’s leading operators to upgrade existing tower sites and facilitate the roll-out of new technologies, including 3G and WiMax.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

Affordable handsets and mobile broadband tariffs enhance uptake in West African region

­A new research report has unearthed that over the past years that the West African broadband market has witnessed a dramatic increase in broadband connections mainly due to the deployments of advanced technologies and affordable customer premise equipment as well as tariffs.  It was also found that the market earned revenues of $929.9 million in 2009 and estimates this to reach $1.932 billion in 2016.

Internet service providers (ISPs) still remain the dominant players in the region, except for Nigeria where mobile broadband connections have outpaced fixed broadband connections. In comparison to other countries, high investments are made in infrastructure development and broadband services present the highest areas for growth opportunities due to the decline in voice revenues.

The West African region is characterized by poor telecoms infrastructure. Mobile broadband connections have outpaced fixed broadband connections in many countries in the region. This trend is likely to be observed in key markets like Cameroon and Ivory Coast in the next 5 years.

The low fixed penetration shows that the majority of population can only access broadband services via their handsets. The low levels of broadband penetration in the region indicate that there is room for growth opportunities across the region.

The key challenge faced by market participants is the high cost of customer premise equipment. Limited availability of bandwidth, paralleled by high costs and the low disposable income of the majority of the population across the region, also poses challenges.

A number of factors currently hamper the growth of this region including low disposable income. Poor telecoms infrastructure and shortage of bandwidth in most countries in the region also threaten to dampen market prospects.

Facing challenges and restraints in the broadband market, ISPs and mobile operators are expected to improve the quality of services through continuous infrastructure investment like network capacity upgrade and deployments of new technologies.

Developing innovative solutions such as cyber caf©s that target the mass market and partnering with content providers to offer localized content are some approaches that ISPs and mobile operators can deploy. These strategies will help drive up the demand for broadband services.

Ghana soon to receive MNP service

www.WirelessFederation.com/news: Mobile phone users of Ghana can soon enjoy the facility of mobile number portability (MNP) as the government is planning to implement the service soon. With this service, the subscribers will get the freedom to switch to a new service provider without losing their existing mobile number. The government’s move would guarantee quality service and give consumers a choice.

The move is welcomed by Vodafone Ghana, while CDMA operator Kasapa Telecom restated in October 2009 that MNP is ‘vital’ for the development of the industry in the country and that ‘the years of delay in implementing it so far are both inexplicable and inexcusable.

Zain’s money transfer service reaches West Africa

www.WirelessFederation.com/news: After a huge success of the concept of mobile money transfer in East Africa and particularly Kenya, Zain has announced to expand its mobile commerce service Zap to Niger, Sierra Leone and a full commercial pilot project in Malawi.

With this move, six African markets would be covered by the service with a combined population of 150 million people. The concept launched in February last year would complement the financial services sector in the continent as the mobile phone users will be able to send and receive money, pay for services as well as interact with their bank accounts using the service.

According Saad Al Barrak, Zain Group chief executive, the expansion of the service is an important step in pushing the boundaries of mobile communications and with the kind of impact the Zap had in Kenya, Tanzania and Uganda, similar impact is hoped by Zain in Malawi, Niger and Sierra Leone, where formal banking services are largely restricted to urban hubs.

Zain has entered into a partnership with the National Bank of Malawi (NBM) and NBS Banks in Malawi, EcoBank in Niger and Zenith Bank in Sierra Leone besides working with Citibank and Standard Chartered in East Africa.

Gateway Communications acquires 10.5GHz spectrum license

www.WirelessFederation.com/news: 10.5GHz spectrum license has been acquired by Gateway Communications, a telecoms network operator, for ten states in Nigeria: Kano, Kaduna, Rivers, Delta, Abuja, Edo, Oyo, Anambra, Abia and
Enugu. Earlier, Airlink and MetroLink 10.5GHz spectrum solutions targeted at SMEs in Lagos was deployed by the company.

Both the steps aim to strengthen its drive to build a pan-African connectivity network that covers every major African city based on satellite, submarine cable and fibre infrastructure. The services will be rolled out across the ten states in 2010 while Port Harcourt and Abuja will go live in February 2010. The solution will be deployed in further 14 states in 2011.

According to John Dindlebeck, MD at Gateway West Africa, the flexibility of the broadband 10Mbps solution with an MPLS backbone can customize the solutions provided to individual client needs.

Besides, the commitment of the company to provide world class connectivity solutions in Nigeria is also demonstrated through this expansion.

Huawei helps Comium drive new wave of Mobile Telecom Services in Cote d’Ivoire

Delhi, Delhi, India, 2006-09-20 (IndiaPRwire.com) — [New Delhi - September 20, 2006] Huawei Technologies Co., Ltd (Huawei), a leader in providing next generation telecommunications network solutions for operators around the world, has been selected by Comium Mobile, a leading total telecommunications services group and West Africa’s leading mobile service provider, to build its GSM network in Cote d’Ivoire. The contract includes providing a full turnkey GSM, GPRS, 3G and Intelligent Network in Cote d’Ivoire.

The project adopts Huawei’s innovative EnerG GSM solution and new generation GSM Dual Density BTS. Huawei’s EnerG GSM solution first introduces 3G technology to GSM network, enabling the operator to enhance the efficiency and performance of its network, while helping the operator greatly reduce OPEX and CAPEX. Huawei’s new-generation dual-density BTS features both high density and receiving sensitivity capabilities, and is widely adopted by GSM operators globally.

As a leading multinational telecommunications services provider in West Africa, Comium Mobile recently won license to build a new mobile network in the country and thinks much of this GSM network. In consideration of three year’s successful cooperation with Huawei in Sierra Leone and Liberia, Comium Mobile chooses Huawei to deploy the competitive GSM network again. The Ivorian telecoms and mobile GSM market is set to witness exponential growth and Comium Mobile is positioning itself to bring tangible and sustainable value to its customers.

Comium Mobile is committed to go commercial live by 1st quarter 2007. With a population of over 17 million, and a mobile penetration rate of 13.5%, Comium aims to grow the market with the introduction of innovative products and services, highly competitive and cost-efficient pricing strategy, and superior service quality in terms of coverage, customer care, and distribution channels.

“Comium is aggressively pursuing the acquisition of new licenses across West Africa. The success we are enjoying in Liberia and Sierra Leone is inspiring us to grow regionally by providing differentiated customer experience through the provision of innovative products and services including affordable GSM solutions, broadband internet and international voice service offerings. Huawei is an enabling partner for this mission with its technically advanced solutions that help us deliver on our vision to bring new means for the human communication needs,” said Dr. Nizar Dalloul, Chairman and CEO of the Comium Group.

“There is increasing demand for a wider range of telecom applications and services in West Africa,” said Mr. Ding Shaohua, General Vice President of Huawei Technologies. “We have been working with Comium Mobile since 2004 on the development and implementation of its GSM networks in Sierra Leone and Liberia and this new contract cements the relationship between the two companies. Comium Mobile is an ambitious operator in the region with great focus and growth potential. We are jointly working with their world-class team to help them meet their aggressive targets and to bring the latest telecom solutions to West Africa.”

With its vision of enriching people’s life through communications, Huawei continues to make investment in GSM technology innovation. Huawei’s EnerG GSM solution has been adopted by telecom operators in over 80 countries, serving more than 120 million subscribers across the globe. With a total deployment of GSM BTS reaching over 500,000 TRXs worldwide, Huawei has accumulated extensive experience and expertise in the construction of large-scale and densely populated area networking, as well as planning, optimization and performance management of networks, winning the respect and trust of major global telecom operators.

Source- http://www.indiaprwire.com

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