AT 16

issue 16

ZAR 29.95 us$ 3.50 uk 2.25 Eu 2.95 Rest of Africa us$ 2.95

thought leadership interview

west & central african

Director of the west and central african region for Orange

MObilecOMMunicatiOns

claire PaPOnneau

CONTENTS ISSUE 16

22 Thought LeadershipAn exclusive interview with Claire Paponneau, Director of West and Central African Operations at Orange.

34Taking on the

Challenges in Africa for

prosperous growth

42

REGULARS

2 AFRICA TELECOMS Issue 16

06 NewsThe latest local and global telecoms news.

40 CalendarUpcoming events, shows and conferences which you cant afford to miss.

Saiful Alam, Group Chief Commercial Officer, Expresso Telecoms

REGULARS

18

30

Gadgets

Statistics

Want the next big thing in portable devices? Our gadget review is here to help you choose.

Africa Telecoms presents statistics and data relating to the African telecoms market.

Mervin Miemoukand, Ict Industry Analyst, Frost & Sullivan provides an overview.

West & Central African Mobile Communications

by Jaques Rautenbach, Chief

Strategy Officer: Emerging Africa at Internet Solutions.

Guest Editorial04

48

66 The Myth of Interconnect70 Job ListingA list of the latest telecoms positions from across Africa.

52 Q&Awith Douglas Reed, Chief Executive Officer of VOX Telecom.

72 Last WordReal or Virtual? Eguchi Aimi begs the question!

The interconnect debate continues to be an emotive issue. Steven Ambrose argues for the removal of interconnect rates entirely.

Seizing Opportunity:Africas Enterprise Messaging Market

Issue 16 AFRICA TELECOMS 3

Executive EditorMohammed [email protected] EditorBradley [email protected] DirectorSarah [email protected]

Art Director:Hayley [email protected]

Sub-EditorNiki Sampson

PrintingTandym Press

Contributors: Bradley ShawBrett HaggardSaiful AlamSteven AmbroseCostin Raiu Jacques RautenbachMervin MiemoukandCharles LandryDouglas ReedRapelang Rabana

Africa Telecoms and Africa Telecoms Online are published by:3i PublishingUnit 9 & 10, Planet Art 2, 32 Jamieson Street,Cape Town 8001T: +27 21 426 5590E: info@3ipublishing.co.zawww.3ipublishing.co.zawww.africatelecomsonline.com

BPA Audited AverAge QuAlified CirCulAtionfrom nov 10 JAn 11, 9989 Per edition.

FOR AFRICA TELECOMS

by Charles Landry, Senior Vice President, Messaging, Syniverse.

56Whats Next for SA TelecomsRapelang Rabana provides a commentary on the South African telecoms market.


Guest editorial

Price wars have always been a controversial topic of discussion at industry seminars and forums. My recent interest in the issue has dragged me into numerous dialogues and debates with colleagues and counterparts from markets at different stages of evolution in regions covered by the Expresso group as well as other regions. Very interesting insights have emerged from Greece, Tanzania, Indonesia, India and Kenya.

Everyone is grappling with two fundamental questions: 1. What is a price war good for? 2. Who are the winners in a price war? Price wars are usually started by an operator with an

aggressive desire for increasing market share. This is exactly what happened in Greece when one of the operators decided to break the market equilibrium. Within three months all the market players had responded with counter offers. The result for the total market at the end of the year was a revenue decrease of 13%, a reduction of 500 million from an overall revenue of 4.7 billion.

The impact of price wars is not contained within the mobile telecoms operators: governments feel the heat too, especially in economies with heavy dependency on telecoms taxes. In Tanzania, price wars amongst mobile phone operators have been blamed for reduction in value added tax (VAT) revenue collected during the early part of this year. According to the Bank of Tanzanias Monthly Economic Review of March, the impact was a reduction of 6.4%. As VAT is a function of spend, this implies a reduction in total spend by the population. Of course the operators have seen an overall increase in traffic, but this is clearly not compensating for the proportional price decrease.

Asian markets are often compared with African regions for similarities in consumer behaviours. In addition to analysing the consumer behaviours in our own markets, we looked at the Indonesian telecoms market experience from the price wars of 2007; and Indias most active period during 2009. Our review

Winners and losers in a price war

Saiful AlamGroup Chief Commercial Officer, Expresso Telecoms

has shown that although these are different markets, there are many similarities in consumer behaviours during price wars. The three major behavioural trends observed were as follows:

High churn rates, especially the monthly rolling count Increased multi-SIM ownership Smart usage management leading to consumers getting more for less spend

In some markets the lead operator is so dominant that all the other players are loss-making entities. Often these smaller operators find themselves in a do-or-die position: either to grow their loss-making businesses or to exit the market completely. In the last few months of 2010, the Kenyan mobile telecoms market experienced a lot of excitement and change. The market leader in Kenya with 78% market share was estimated to have 16 million subscribers; the competitor with two million subscribers was a loss-making operation. They took the decision to go with aggressive price cuts and call rates were dropped by 50%. The resultant gain in new customers was so substantial that the networks quality of service dropped significantly.

In many industries the winner during a price war is always the consumer. In mobile telecoms the same can be said to be true, but only in the short term. During the early days of price wars the consumer reaps the most rewards. In the long run, in all the cases evaluated the sequence of events is very similar. There is increased traffic but a decrease in overall market revenues, congested networks lead to lower quality of service and poor user experience, more pressure for the operators to run leaner operations, reduced R&D and limited innovations. Eventually the losing operators quietly disappear.

Competition is healthy in a market even in the form of intense price competition, but price wars without appropriate value analysis leads to prices that are not sustainable in the long run. In this type of price war everyone loses.

A logical follow-on question is: what can operators and consumers do to avoid the detrimental price wars destroying markets? The answer to this question requires a discussion space of its own, perhaps in the near future. AT

Competition is healthy in a market even in the form of intense price competition, but price wars

without appropriate value analysis leads to prices that are not sustainable

in the long run.

news


>> Ghana had over 1.66mn mobile internet users at the end of 2010. >>

All the latest telecoms news from Africa and around the world.

Bank Andara and Fundamo unveil AndaraLink, the worlds first mobile-enabled microfinance services networkThe wholesale bank for microfinance institutions (MFIs) in Indonesia, Bank Andara and Fundamo, a Visa company and leading provider of mobile financial services for mobile network operators, have today unveiled AndaraLink. The network, the first of its kind in the world, enables MFIs to provide 40 million financially excluded Indonesians with access to previously unavailable financial services via mobile terminals connected to a mobile network. The mobile terminal allows MFIs to take the bank out of the branch, to its consumer or business customers.

The microfinance sector in Indonesia is one of the largest in the world with over 50,000 MFIs (MercyCorps, 2011). MFIs are essential in enhancing financial inclusion by offering credit, loans and savings services to consumers and businesses that lack access to traditional banking services.

However, many MFIs in the region require access to traditional banking infrastructure to power services such as remittances and utility bill payments. Due to the low-income levels of the majority of the population, there has been little appetite to roll out expensive banking infrastructure in these regions.

MFIs need a fast, flexible, secure and innovative technical infrastructure to deliver financial services to a disparate populace in a cost efficient and scalable way, said Irianto Kusumadjaja, COO & CIO of Bank Andara. Instead of trying to reinvent the wheel, Bank Andara has combined existing MFI infrastructure with mobile technology to deliver new and enhanced services. These services help MFIs to boost financial inclusion and grow market share. On average the service has increased participating MFI revenues by 5-10%.

AndaraLink has enabled simple and inexpensive mobile financial services between existing MFIs, providing businesses and consumers with remittance and utility payments. The network will also help us provide MFIs with quick and easy access to capital allowing them to offer credit at better rates, continued Kusumadjaja.

Bank Andara has taken a unique and innovative approach to tackle the challenges facing MFIs in Indonesia. The Visa Fundamo platform underpinning the service is modular, application-driven and built on open APIs to enable easy development, integration and rollout of new services. This approach ensures that AndaraLink can evolve to meet the needs of consumers and businesses as they become more familiar with electronic financial services, said Hannes van Rensburg, CEO at Fundamo. AndaraLink is testament to the power of mobile financial services as an agent of fundamental social and economic change and we look forward to connecting more MFIs to the network in coming months and years. AT

Research by InMobi, the worlds largest independent mobile ad network, reveals that African mobile web users prefer the mobile channel (46%) to their Desktop (10%) and even In-store (44%) when shopping for Apparel, Consumer Electronics and Entertainment Tickets. This clearly highlights the shift to shopping on the move across Africa.

Surprisingly, non-smartphone users have an even higher preference of browsing and shopping using their Mobile versus Desktop than smartphone users. This signifies the higher dependence on mobile devices among feature phone users as its their primary means to digital content in many cases.

The study conducted among 3,100 African mobile web consumers found that 59% of South African users have purchased a digital product through their mobile device.

Commenting on the study, James Lamberti, VP Global Research & Marketing at InMobi, commented that Mobile shopping is becoming increasingly commonplace in Africa. Its an exciting time for the consumer, retailer, and manufacturer as mobile shopping solutions will become more accessible, intelligent and compelling to use. With the high level of consumer acceptance a new mass reach retail channel has emerged setting up huge opportunities in the world of mobile advertising. AT

most populAr purchAses from mobile devices in south AfricA

product

Digital Goods

Consumer Electronics

Travel

Apparel

Entertainment tickets

% buying

Other

45 %

11 %

10 %

7 %

7 %

3%

62% of South Africans purchase on mobile devices

news All the latest telecoms news from Africa and around the world.

62% of South Africans purchase on mobile devices

news


>> First National Bank (FNB) of South Africa processes more than 13.5 million mobile payment transactions every month to a value of 1.7 billion South African rand (US$251 million). >>

Far South Networks successfully completes interoperability testing with YealinkFar South Networks, a Western Cape-based vendor of IP PBX and IP Gateway equipment, and Yealink, Chinas leading designer and manufacturer of IP Voice and Video Phones, have successfully concluded interoperability testing between Far South Networks Phone System and Yealink IP Phones.

With the completion of interoperability testing between our IP PBX products and Yealink IP Phones, telephony solutions providers will benefit from quick and easy deployment of converged IP telephony services with Yealink IP Phones said Grant Broomhall, MD of Far South Networks.

We are very pleased with the interoperability of our products and Far South Networks. The combination of Far South IP PBX and our Enterprise HD IP Phone create an excellent value and innovation solution for the Small and Medium Businesses. said Stone Lu, VP of Yealink.

The Far South Networks range of IP PBX products includes the Com.X1, for SMMEs, and Com.X2, for larger corporate enterprises. Com.X platforms are built on Intel and Via x86 class servers with expandable support for all types of legacy telco interfaces. Com.X technology provides the user with a rich and extensible feature set, including voice recording, voice mail to email & fax server applications, and a simple migration path to IP based, unified communications services.

Yealink SIP-T2x series enterprise HD IP Phones, including are equipped with the TI TITAN chipset and TI Voice Engine, offer high definition voice, a broad range of voice codecs, security protection for privacy, and rich features including BLF/BLA, PoE, PnP Auto-provision. These models work seamlessly with the Far South IP PBX. AT

news


>> Huawei signs deal with Ugandan Operator Warid Telecoms to upgrade to 3G and expand the geographical reach of the network. >>

Leading global telecommunications company Bharti Airtel (Airtel) with operations in 19 countries across Asia and Africa, has successfully deployed its mass-market mobile messaging service, based on Synchronicas Mobile Gateway infrastructure software, in 16 countries in Africa territories. The service, marketed as airtel connect, combines push email, synchronization, instant messaging and social networking in a single platform and is offered at an affordable, flat-rate, monthly charge.

The group-wide launch is the culmination of a group-wide framework agreement between Airtel Africa and Synchronica.

Airtel Ghana will be the first operator to launch airtel connect which will offer a consumer-focused mobile messaging service which combines push email, synchronization, instant messaging and social networking in a single platform on a fixed monthly rental of GHC3 (US$1.99) for unlimited use, and will be available to any Airtel mobile customer, regardless of the type of mobile device they own.

Airtel has embarked on a major print and radio advertising campaign to promote airtel connect. As an incentive, customers will be offered the chance to take advantage of a free 30-day trial. Synchronica has proven itself to be the ideal mobile messaging partner for us, said Andre Beyers, Chief Marketing Officer, Airtel Africa. Since we chose to work with Synchronica, they have met

South Africas fourth and newest mobile network operator 8.ta, is going to market with a big, fast and low cost mobile broadband promotion that will get South Africans using the Internet more. With the lowest mobile broadband rates supported by its new network; 8.ta is living up to its promise to change the mobile communications market.

The new post-paid Internet 5 Promotion offers subscribers a 10GB data bundle at R199 per month with the option of an additional 10GB Midnight Surfer data bundle at R100 per month for use between 12am and 5am. Subscribers in essence, will be getting 20GBs of data at R299 and will therefore be paying as little as 1.5 cents per MB the lowest mobile broadband rate available in South Africa, says Amith Maharaj, Managing Executive of Telkom Mobile.

To mark the launch of our new high speed network 8.ta is Going Big with an amazing promotional data offer for a limited time period. Mobile broadband users will agree that the value provided in this offer cannot easily be found anywhere in the world, Maharaj said.

Maharaj further added that while the sale of the offer will be for a limited time, it is important to note that customers who sign up will be eligible for the Internet 5 promotional price as well as the Midnight Surfer price for the full 24 months.

Airtel Africa Launches Synchronica-Powered Mobile Messaging Service airtel connect in 16 countries

With 8.tas new data promotion, high monthly subscription is removed as the barrier to entry for first time subscribers while seasoned mobile broadband subscribers will find the price per MB to be extremely attractive. Many first time subscribers fear running out of bundle and receiving huge bills at the end of the month, however, with a combination of the large bundle, and 8tas unique redirect functionality, this concern is circumvented.

To prevent bill shock, 8.ta provides users with a safety net to check balances and make out-of-bundle purchase decision in real-time using the redirect functionality. Subscribers on the Internet 5 Promotion and Midnight Surfer have the option to purchase a once-off bundle or utilise out of bundle rates.

With the average size of an electronic music file (MP3) download of 4MB, 10GB will allow 2560 MP3 music track downloads. 10GB will also allow 12 full length movie downloads if the average size of a movie is 800MB.

Further innovation for 8.ta data subscribers is a free email account with online Office Web Applications such as MS Word, Excel and PowerPoint to store documents online without having to purchase a license. Subscribers will also have access to a free home support service with every purchase of a 3G data modem from 8ta.

The post-paid data bundles are valid for the current calendar month. We have removed the modem from the offer so that customers have the freedom to utilise their existing compatible modems or buy a compatible modem that suits their needs, adds Maharaj. AT

8.ta Goes Big with data

news

>> Galaxy Backbone Plc, has trained over 600 public servants in Nigeria with the latest knowledge on e-government. >>


all of our development, integration and deployment milestones. With airtel connect we can offer all of our customers, regardless of which mobile device they use, a user-friendly way of connecting to their favourite email, IM and social networking services.

Carsten Brinkschulte, CEO of Synchronica, adds: Airtel shares our view that forward-thinking operators need to introduce addictive data services that can be enjoyed by the mass market, not just those who own a high-end Smartphone. Our solution will help Airtel not only to increase ARPU but also to combat churn.

Synchronicas Mobile Gateway, on which airtel connect is based, provides 100% device compatibility by using the built-in messaging clients found in a wide range of Smart Phones and Feature Phones, in addition to the MMS and SMS technologies for basic handsets.

Already licensed by more than 80 mobile operators worldwide, Synchronicas messaging platform is simple and cost-effective to deploy in the operator data center, or hosted by Synchronica, and allows operators to offer a comprehensive next-generation messaging service which works on any handset in use today. The launch of airtel connect follows Airtels recent success at the Ghana Telecoms Awards where the company won awards in the best customer care company, the best marketing campaign, and CEO of the year categories. AT

The ultra-mobile Hewlett Packard (HP) EliteBook 2560p and 2760p, offer users

the ultimate combination of portability and performance. With a super compact 12 high

definition LED screen and a starting weight of just over 1.6kg, this series fits easily into any briefcase for

pack up and go convenience. But dont let their compact stature fool you - these notebooks pack all of the power a user could want and are perfectly suited to business people whose desk is anywhere they happen to be sitting.

The 2560p is a standard notebook format device with a 12.5 diagonal screen and a full sized, spill resistant keyboard, designed to meet US military standards in terms of vibration, dust, humidity, altitude and high temperature. Users can take this notebook on the road confident in the fact that lifes little knocks and bumps will not destruct the notebook. Optional Solid State Hard Drives (SSD) make this rugged device even tougher than ever.

The 2760p offers the best of both worlds, featuring a 12.1 screen that combines the power and reliability of the 2560p with the flexibility of a tablet, complete with pen and touch capabilities. Simply flip and swivel the lid to turn this notebook into a fully functional tablet, great for people who need the functionality of a laptop with the flexibility of a tablet PC.

The 2760p meets the same stringent military standards as the 2560p and also offers Outdoor View display to enable the device to be used in sunlight and natural lighting conditions.

The 2760p especially is ideal for specialised users. These include research environments such as science and medicine, where users often have to take notes by hand and want the convenience of being able to turn their handwritten notes automatically into typed documents. Particularly when users need to wear gloves, the ability to use a pen-like stylus on their notebook makes working a lot simpler and faster. It is also great for gadget geeks as it delivers full notebook performance and functionality as well as a tablet PC option, says Deon Botha, HP PSG Business Unit Manager at DCC.

The 2560p and 2760p represent the latest generation of ultra-compact, ultra-portable notebook devices. As small as a netbook, but with the performance of a much larger PC, these devices deliver full functionality in a small, thin, lightweight and above all rugged package, making them the perfect choice for people who are constantly on the move, Botha concludes. AT

Hewlett Packard launcHes suPer ligHt and Portable elitebook


news

>> Telkom, the incumbent South African fixed line operator to reduce call tariffs from August 2011. >>

Informa Telecoms & Media issued its latest femtocell market status report which revealed that there are now in excess of 2.3 million 3G femtocells globally compared to 1.6 million 3G macrocells, highlighting the growing popularity of the technology. There are now 31 commercial femtocell services worldwide which represent over 60% growth in deployments in the past quarter alone. This market growth is reflected in the fact that eight of the top 10 mobile operator groups (by revenue) now offer femtocell services, which includes AT&T Group, France Telecom Group, NTT DOCOMO Group, Sprint, Telefonica Group, Deutsche Telecom Group, Verizon Wireless and Vodafone Group. Furthermore, in the vast majority of these markets, the devices now outnumber all generations of cell sites.

Informa forecasts this growth to continue with 48 million access points in use globally by 2014. Where last

quarter Informa noted the recent growth in enterprise femtocell usage, this quarter has been notable due to the growth in femtocells for public access, especially as a means for speeding up mobile broadband in busy areas as exemplified by SK Telecoms pure data offload strategy. The technology is also expected to grow in 4G networks with 60% of operators believing that small cells will be more important than macrocells for an effective LTE deployment strategy according to a recent Informa survey.

Femtocells havent just passed a major milestone - it is now apparent that they are rapidly becoming less of a differentiator for service providers and more like an essential offering. Consumers are increasingly going to expect something that for a long time seemed impossible - near ubiquitous coverage for voice and high speed data. Femtocells make this a very real possibility, said Dimitris Mavrakis, Senior Analyst at Informa.

Furthermore, the past quarter has also seen important progress in femtocell technology. The first industry-wide agreed set of API specifications for advanced mobile applications based on femtocell technology have been published. The API provides awareness information so developers can incorporate enhanced presence, context and location-sensitive features into new and existing apps, and can also take advantage of the lower cost and faster data connections enabled by femtocells.

The expansion of the femtocell industry is also reflected in the growing membership of the Femto Forum, the femtocell industry association, which now includes 74 vendors and 63 mobile operators representing over 1.71 billion mobile subscribers worldwide, across multiple wireless technologies (WiMAX, UMTS and CDMA) and accounts for 33% of total mobile subscribers worldwide. AT

3G Femtocells Now Outnumber Conventional 3G Basestations Globally

news


>> MTN Group has passed 150 million mobile subscribers, showing strong subscriber growth despite increased competition and has pledged to plant 150 000 trees to thank its customers. >>

Worldwide semiconductor revenue is projected to total US$315 billion in 2011, a 5.1 per cent increase from 2010 revenue of US$299 billion, according to Gartner, Inc. This is down from Gartners previous projection in the first quarter for 6.2 per cent growth this year.

The earthquake and tsunami in Japan raised concerns about the supply of silicon wafers, batteries, crystal oscillators, packaging and other specialised materials. However, supply constraints due to the situation in Japan have not derailed the electronics industry.

The disaster in Japan clearly had an impact on the semiconductor market, and supply chain behaviour, but it is less than initially feared, said Peter Middleton, principal research analyst at Gartner. In response, in the last two weeks of March, vendors stepped up efforts to secure supply in the face of uncertainty and potential shortfalls leading to some double ordering which continued into the second quarter. We think vendors were cautious with their second quarter guidance, and we expect the majority will exceed those estimates.

Although the impact is less than feared, we are anticipating some residual effects in the third quarter of 2011 as friction in the supply chain may impact some production and some surprises may occur, Mr Middleton said. However, once third-quarter trends are established and supply chain participants are satisfied that all issues are understood and production is normalized, we expect an effort to draw down inventory, which will weaken the semiconductor market in late 2011 and early 2012.

Gartner forecasts worldwide application-specific standard product (ASSP) revenue to reach US$79.7 billion in 2011 and grow to UD$99.4 billion by the end of 2015. With Apples application-specific integrated circuit (ASIC) investment and a commanding grip on popular mobile devices, the ASIC market will experience solid growth through 2015. The highest overall growth through 2015 is coming from nonoptical sensors, which are primarily driven by automotive applications, but high growth is coming from increased sensor use in applications outside automotive, especially smartphones, tablets and video game hardware.

Analysts said they are seeing rapid semiconductor growth in the smartphone and media tablet categories. Through 2013, two-thirds of semiconductor industry revenue growth will come from smartphones and tablets.

One critical trend is the introduction of new generations of high-performance mobile application processors, which form the heart of both smartphones and media tablets, said Jon Erensen, research director at Gartner. These high-end processors, combined with higher amounts of DRAM and NAND flash memory, will enable the performance and storage required for advanced new applications, including context-aware computing, augmented reality and computational photography.

The similarity in architecture between smartphones and media tablets enables handset and tablet OEMs to centralise design around the application processor, which hosts the operating system of choice, and allows the vendor to leverage that design across multiple product categories, Mr Erensen said. AT

Gartner Says Worldwide Semiconductor Industry to Grow 5.1 Per Cent in 2011 With Revenue Reaching US$315 Billion

>> Nokia and Siemens failed to secure a deal for investors for a controlling stake in their unprofitable joint venture Nokia Siemens Networks. >>

news


Ericsson has reached an agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100 percent of the shares of Telcordia, a global leader in the development of mobile, broadband and enterprise communications software and services, for US$1.15 billion.

Hans Vestberg, President and CEO, Ericsson, says: The importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced. In this context, Telcordia brings very skilled people and knowledge, a large business in North America and other markets, as well as a good multi-vendor product portfolio.

We have global presence and scale, global services capabilities and superior knowledge about networks and network performance, as well as an already established position in the OSS/BSS space. It is a perfect fit, he adds.

One of the main challenges for operators is how to handle the growth in mobile and fixed broadband traffic, as well as the new types of connected devices, services and applications and the high expectations on user experience, while at the same time increasing the efficiency in business

The partnership reinforces and expands Ericssons position as a leading player in the operations support systems/business support systems (OSS/BSS) market, with a key position in service fulfilment, assurance, network optimization and real-time charging

Ericsson acquires Telcordiaand operations.

OSS and BSS are critical areas to handle this challenge and to simplify the processes that support the business. They drive the customer experience and serve as the engine to monetizing traffic, offerings and products that operators sell. All in all, these systems are crucial to create the experience users expect in a cost efficient manner.

Mark Greenquist, President and Chief Executive Officer, Telcordia, explains: The combination of Ericssons global leadership position and Telcordias long-standing expertise in solving the most complex communications challenges will benefit customers through new services and expanded capabilities.

Together, we will lead the way into a new era of converged communications, while expanding our offerings to manage the worlds most dynamic networks. Ericssons acquisition of Telcordia signals their commitment to their future strategy to capitalize on the growth opportunities in the OSS/BSS communications industry. We appreciate the significant value added by Providence and Warburg Pincus over the last six years, he concludes

Providence and Warburg said, We are confident that the company will benefit from becoming part of Ericsson, a clear global leader in providing technology and services to telecom operators.

The OSS/BSS is a growing market driven by the demand for business efficiency, innovation and high quality user experience. In 2010, the market for software and systems integration is valued at about US$35 billion and is expected to show a compound annual growth rate between 6-8 percent between 2010 and 2013. In addition, there is an attractive market for outsourced and hosted managed services, growing in the same range. AT

news

>> Nigerian Telecoms Operators spend N3.63bil (US$ 23.5 mil) to fuel generators monthly. >>


Nokia has finally signed a patent license agreement with Apple. The agreement will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.

The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement. The specific terms of the contract are confidential.

We are very pleased to have Apple join the growing number of Nokia licensees, said Stephen Elop, president and chief executive officer of Nokia. This settlement demonstrates Nokias industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.

During the last two decades, Nokia has invested approximately EUR 43 billion in research and development and built one of the wireless industrys strongest and broadest IPR portfolios, with over 10,000 patent families. Nokia is a world leader in the development of handheld device and mobile communications technologies, which is also demonstrated by Nokias strong patent position.

This agreement is expected to have a positive financial Ryan Sher, COO at African carriers carrier WIOCC, has been named as one of the telecommunications industrys 40 most important people under the age of 40 along with Pieter de Villiers the founder and CEO of Clickatell.

In its annual 40 under 40 award, international telecommunications magazine Global Telecoms Business (GTB) identified 40 of the industrys current young leaders from around the world (all under 40 years of age) who, it is anticipated, will become the telecoms industry leaders of tomorrow. South African-born Sher and De Villiers are two of only four professionals in the group to be based in Africa.

The GTB identified Sher as possessing a rare combination of technical expertise and business acumen. It sites Shers drive, energy and inspirational leadership as having been instrumental in the success of EASSy, which it describes as a landmark project delivered early and within budget.

De Villiers has led the company through a decade of robust growth and innovation by providing high value, application-to-person SMS services. With his leadership skills and knowledge, he has grown Clickatells global coverage immensely, GTB said.

With his vision, knowledge and exceptional leadership skills, De Villiers has successfully helped companies and organizations around the world provide better services to their clients while creating profits. AT

Nokia enters into patent license agreement with Apple

impact on Nokias recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin for Devices & Services. AT

news

Nokia has finally signed a patent license agreement with Apple. The agreement will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.

The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement. The specific terms of the contract are

We are very pleased to have Apple join the growing number of Nokia licensees, said Stephen Elop, president and chief executive officer of Nokia. This settlement demonstrates Nokias industry leading patent portfolio and enables us to focus on further licensing opportunities

license agreement with Apple

2 South Africans named in global top 40

of telecom professionals under the age of 40


news

>> Vodacom is to build one of Africas greenest building at its HQ in Midrand near Johannesburg in South Africa. Its parent company Vodafone, plan an alternative energy innovation centre to help reduce carbon emissions across the world. >>

This launch by Etisalat and Alcatel-Lucent will see the UAEs first permission and preference-based mobile advertising services in the UAE. The opt-in mobile advertising service provides a very smart and unique advertising model that will allow advertisers and brands to have an engaging dialogue with their target audience via Rich SMS/MMS Dialogue Ads.

Moreover, it gives mobile customers access to a wide range of exclusive and relevant offers from leading brands in the UAE that is tailored to their personal interests and lifestyles.

The service will match customers voluntary preferences and deliver exclusive promotions and discounts accordingly. As such customers interested in sports, will get the latest on offers and promotions from sporting brands. The mobile advertising platform from Alcatel-Lucent Optism is also a monitoring tool for customers behaviors against the ads and promotions that they receive in a way that detects their registered interests and their interaction levels with the received offers. This type of intelligence, behavior monitoring and updating will get advertisers and brands to customize their offers to best suit their targeted audience and for customers to receive the best defined promotions that fit their likings.

The new service will give the entire mobile advertising ecosystem in the UAE exactly what they need; targeted ads, personalized ads, engaging ads and most of all very well defined tailored ads that will increase their sales, enhance their ROI, enable them for more intelligent campaign planning and provide them with real time reporting. At the same time it will increase targeted audience satisfaction as customers will receive offers that are tightly linked to their lifestyles and tastes.

Matthew Willsher, Chief Marketing Officer of Etisalat commented: There is a new wave of demand for deals, discounts and offers in the UAE. As part of our mobile strategy, we are constantly innovating to delight our customers. The UAEs first mobile advertising service ensures that customers who choose to receive targeted messages get better value as well as a richer mobile experience.

Amr El-Leithy, Head of Alcatel-Lucent business in the Middle East & Africa. We are very enthusiastic about working with Etisalat to bring a more personalized and compelling experience to their customers.

All mobile advertising with Etisalat is opt-in for customers, giving subscribers the freedom to choose. It ensures privacy of customers information and contact details through Etisalats Personal Information Identifiers system. Maha Muraish, Director of Online Channel and Portal at Etisalat added, Its not about spamming our customers with numerous ads; its about providing preference-based content. You will only receive offers from Etisalat that is relevant to you, at the time of day that suits you best and not more than 5 ads a week. AT

Nokia Siemens Networks has expanded its Liquid Radio architecture by launching a new, high power radio module for its Flexi Multiradio Base Station family at CommunicAsia 2011 in Singapore. The higher output power means that the module offers greater GSM coverage and increased 3G data capacity at the edge of cells, providing an overall 40% increase in performance. This provides operators with the ability to efficiently enhance their network. In addition, the ability of the new radio module to allocate carriers frequencies across a broad 60 MHz range reduces the size of hardware required per base station site allowing more flexibility in deployment.

In mobile networks, the radio module is the part of a base station that amplifies each individual radio signal before broadcasting it from an antenna. Due to its higher output power, the new module improves the signal used to transmit voice or data to a mobile phone user. This directly increases how much useful information the signal can carry or the number of people for whom it can provide a connection.

Nokia Siemens Networks all in one radio module can be used for all installation types, such as indoor, outdoor, distributed, mast pole and 6-sector sites, and it can provide

nokia siemens networks

new radio module provides 40% performance improvement at edge of cell while carriers can be distributed across 60 mHz frequency band range

boosts base station power for greater capacity

Etisalat launches the UAEs first personalised Mobile Advertising Service

news


>> Accenture has signed a definitive agreement to provide Symbian based software development and support services to Nokia through 2016. >>

The upcoming award-winning Snapdragon family of smart mobile processors, including the MSM8960 with integrated 3G/LTE modem, is designed to power devices running the next version of Windows. The companies collaboration continues to address the converging and fast-changing mobile computing landscape, and Qualcomms Snapdragon family of dual-core and quad-core processors will enable optimal computing performance, extended battery life and connectivity, and top-notch graphics and multimedia in devices.

Qualcomm and Microsoft have a long and productive history of collaboration focused on driving innovation forward, and we are pleased to be among the leaders of the next evolution of mobile computing, said Luis Pineda, senior vice president of product management, computing and consumer products at Qualcomm. Our upcoming family of Snapdragon processors is intelligently integrated, optimized for mobile and built smarter, making it the ideal processor to address consumers growing demands for new, innovative experiences and usage scenarios that we believe will be delivered by the next version of Windows.

The first processor in the Snapdragon family to power devices using the next version of Windows will be the MSM8960, which is sampling this month, followed by the quad-core Snapdragon APQ8064, which is anticipated to sample in early 2012. Qualcomm has built its Snapdragon family of mobile processors from the ground up to deliver enhanced power efficiency for devices running the next version of Windows. The MSM8960 from the Snapdragon family of mobile processors provides the first dual-core solution with an integrated multi-mode 3G/LTE modem and is designed to meet the multi-tasking requirements of the next version of Windows. The Snapdragon family of mobile processors will include dual and quad asynchronous CPU cores that can be independently controlled to deliver maximum performance at maximum efficiency.

Windows 8 will enable customers to have the flexibility, connectivity and power that they expect from Windows today with new, touch-only devices like tablets. This will require high-performing, low-power processors like those from Qualcomm, with features like 3G and 4G wireless wide area network (WWAN) connectivity, said Mike Angiulo, corporate vice president of Windows planning, hardware and PC ecosystem. We collaborate with Qualcomm because Snapdragon-powered devices will help Windows 8 consumers experience more out of their Windows device and enable hardware manufacturers to try exciting new PC designs. AT

up to 240 watts output power per sector, or provide 80 watts output to each of three sectors. It is also capable of allocating carriers within a 60 MHz range, which is particularly useful for operators with fragmented frequency bands. The module supports any combination of GSM, 3G, LTE or LTE-Advanced technologies in a single unit, significantly further reducing the hardware units a site may need.

Our new radio module is especially suited for refarming GSM frequency bands for HSPA+ and LTE services and network sharing deployments, said Thorsten Robrecht, head of Network Systems product management at Nokia Siemens Networks. Moreover, we are the only vendor to combine the capacity to drive three remote radio heads or sectors into a single 25-liter unit, offering a smooth evolution for compact multiradio sites with lower power consumption.

Nokia Siemens Networks radio module is also the only three-sector remote radio unit in the industry that can be placed next to an antenna, enabling a light multiradio set-up in limited spaces and sites, which cannot be equipped with traditional base stations.

The first frequency variants of the new radio module including on the 900, 900 J, 1800 and 2100 frequency bands will be available for commercial deployment at the beginning of 2012. Further variants will be rolled out during the first half of 2012. AT

Qualcomm collaborates with Microsoft on next version of Windows

news

>> MTC of Namibia has slashed call rates for a limited period. The cut to 39 cents per minute from 49 cents per minute, making MTCs call charges cheaper than a sms. >>


This commercial investment agreement, between Intel Capital and Allied Technologies (Altech) is subject to Altech shareholder approval, is part of a strategic collaboration in which Intel and Altech will explore various areas of collaboration in the Telecommunications, Multi-media and Information Technology (TMT) sectors to accelerate the adoption of broadband services in Africa. With this investment, South Africa will become the 50th country to attract Intel Capital investment.

Arvind Sodhani, president of Intel Capital and Intel executive vice president said: Altech has a track record of bringing new broadband services and products to the African marketplace. Intel Capital is excited to have our team in South Africa complete our first investment in the country, which also marks the 50th country where we are investing. This is a clear indication of Intel Capitals strategy to invest in successful companies around the world. We strive to foster technology innovation globally

Intel Capital to Make First Investment in South Africa

and stimulate economic activity on the African continent and we are actively seeking additional opportunities to invest in technology companies in emerging nations.

According to Altech CEO Craig Venter, the investment is evidence of the new market opportunities that are emerging as large scale broadband communications infrastructure becomes available in South Africa, West Africa and East Africa.

He stated that: Communications plays a key role in job creation and economic development. As demand for more services grows, we will see more investment in communications infrastructure and the resultant services that follow on top of that infrastructure - be it mobile, broadband or data. Connectivity is a strategic driver of Africas growth. It is a well-known fact that the level of broadband penetration within a country has a direct impact on GDP as much as 1% for every 10% of broadband penetration achieved. This investment is part of an on-going strategic engagement to explore various areas of collaboration within the TMT sector across Africa and we look forward to working with Intel Capital in developing communication services in the region.

Aligned to this, the migration to digital terrestrial television will be a stimulant for South Africa and the regions telecommunication strategy that of encouraging innovation, the development of local IP and the resultant creation of more employment, which is all linked to increased growth of the economies of these countries, he said.

Christian Morales, Intel Corporation Vice-President for Europe, Middle East, Africa, stated that: Africa remains a key growth region for Intel and we believe the collaboration with Altech will create exciting opportunities in Africa for both companies and bring a great experience to users.

Intel Corporation has been trading in sub-Saharan Africa for over twelve years with offices in South Africa, Kenya and Nigeria. This Intel Capital investment forms part of Intels overall investment in the region which also includes education and corporate social investments such as training over 150,000 teachers on computer skills and the integration of ICT teaching and learning in the classroom.

Subject to the approval of Altechs shareholders, Intel Capital will invest a convertible loan amount of USD$5M into Altech. The loan will be convertible into Altech ordinary shares at any time between the first anniversary of the effective date of the transaction and the third anniversary thereof. The conversion price will be determined upfront and will be based on Altechs volume weighted average price, 30 days prior to the effective date of the transaction, plus a premium of 5% thereon. AT

news


The Annual CASBAA Satellite Industry Forum recently took place in Singapore on 20 June 2011, immediately prior to CommunicAsia 2011. The Forum brought together leading industry heavyweights from around the world to discuss the satellite industry in Asia, focusing on the effects of new technologies, hosted payloads and higher frequency utilisation.

The impressive line-up of market leaders and industry experts included: Dave McGlade, CEO Intelsat, Romain Bausch, President and CEO SES, Nongluck Phinainitisart, President Thaicom, Bill Wade, President and CEO AsiaSat, Paul Brown-Kenyon, CEO MEASAT, Tom Choi, CEO ABS and Cheng Guangren, President APT Satellite.

Romain Bausch, SES President & CEO, provided many insights into the satellite industry. Bausch highlighted government subsidised fibre as a major threat to satellite, reiterating the importance of satellite companies to work closely with telecommunications providers to ensure they have a thorough understanding of the complementary features and benefits of satellite which can work in conjunction with fibre.

NewSats Chief Technology Officer, David Ball, hosted the Leadership Kick-Off which openly debated the challenges many satellite operators are facing as well as initiating a lively discussion about possible solutions. The expert panel included:

Inoue Osamu, Senior EVP, SKY Perfect JSAT Corporation Cheng Guangren, President, APT Satellite Thomas Choi, CEO, ABS Paul Brown-Kenyon, CEO, MEASAT Nongluck Phinainitisart, President, Thaicom Andrew Wallace, Chief Commercial Officer, Eutelsat

Among the many key challenges discussed, Thomas Choi, ABS CEO, highlighted the need for more cost-effective satellite and launch solutions, such as off the shelf satellites, as technology costs within the industry are creeping up. He added that ABS is strategically focusing on markets such as DTH and video distribution, as satellite provides a superior solution compared to markets like consumer broadband, which compete with a range of technologies. Moreover, Andrew Wallace, Eutelsat CCO, underlined the continued growth of HD technology as opposed to 3D technology, which is not growing as expected and is still in its infancy. Also, Dr Nongluck Phinainitisart, Thaicom President, mentioned that the satellite industry can continue to grow as long as everyone works together to increase the size of the available pie. AT

Romain Bausch, President & CEO SES, being interviewed by Haslinda Amin, News Correspondent & Anchor, Bloomberg Television

CASBAA Satellite Industry Forum 2011

>> Nigerian, Edo State Government, will spend about N20 billion on different Information and Communications Technology projects in the state. >>

Service providers are now receiving an elegant and cost-effective solution for expanding their service offerings with the new Motorola VIP1853 an IP set-top with a click-in Digital Video Recording (DVR) module. The Motorola VIP1853 was designed to reduce set-top box deployment costs for operators without compromising on performance by enabling them to choose the DVR capacity for set-tops.

With the Motorola VIP1853, service providers can market a set-top that can be easily upgraded for customers wanting to add DVR capability to their basic box or wanting to expand their recording capacity with an additional or larger capacity module. The flexible design of the Motorola VIP1853 offers a choice of DVR capacity it has an 8GB DVR module that supports trick play/pause functionality, and hard drive capacity can be increased to 160, 320 or 500GB for full featured DVR functionality.

The Motorola VIP1853 can further strengthen the operators relationship with its subscriber base and differentiates its position in the marketplace by offering a high performance IP set-top with a lower cost DVR option, said Keith Kelley, vice president, home devices, Motorola Mobility. The modular design of the Motorola VIP1853 is attractive and environmentally friendly, and allows subscribers to increase the enjoyment of their home entertainment service with its opt-in DVR capacity at an affordable and easy-to-control price point.

This latest addition to Motorolas line of high-performance, IP set tops, comes in a sleek, compact design and by optimizing the feature set and employing an efficient mechanical design, Motorola has achieved an extremely cost-effective solution. In addition, the Motorola VIP1853 has low power consumption thereby helping to minimize its impact on the environment.

The Motorola VIP1853 works on the same hardware platform and runs on the same software as the highly successful Motorola VIP19x3 and Motorola VIP1003 set tops and boasts an even higher performance level. It is compatible with Motorola KreaTV 4.2 or higher, Motorolas open software application framework designed to enable operators to deliver carrier-class IPTV services, while being able to easily add new functionality and services at any time. This allows the service provider to grow according to business needs and customer demands.

The Motorola VIP1853 is expected to be available for delivery globally from Q3 2011 and be launched by a major European operator by the end of 2011. AT

Motorola Mobility Unveils New IPTV Set-Top with a Click-in DVR Module

GadGets H Uncool HH Poor HHH Average HHHH Excellent HHHHH Awesome


FujiFilm S2950

>>Rating: HHH PRiCE: R 2 000

thE Lowdown: Powerful zooming, outstanding quality are offered by the Fujinon 18x (28mm - 504mm) optical zoom lens.One of the oldest players in photography, is still around and kicking. Its newest line of cameras arent anything to be sneered at, either, with the X100 winning the praise of many photographers worldwide. One of its smaller brothers, the S2950, also boasts some respectable specifications. A 14-megapixel sensor means pics that are large enough to print out on A4 pages, and its 18x optical zoom lets you get in as close as you need to, without disturbing that sleeping lion.

Sadly, picture quality simply falls into the acceptable category, rather than blowing us away. In regular sunlight the snaps are clear and vivid, but the sensor struggles in conditions with less-than-ideal lighting conditions.

Its not all bad, though, since this is a budget camera at just under R2 000. The lens definitely makes it, along with the ability to record HD video (at 720P resolution), in addition to user-friendly scene modes, including a super macro mode that lets you take extreme close-up photos.

EpSon EH-Tm450

Rating: HHHH PRiCE: R 9 000

thE Lowdown: HD projector for less than R10k, Accepts HDMI, S-Video, VGA, Composite inputs, 1W Speaker provides basic sound.

The most important things to know about this projector are that it does HD and it costs less than R10k. Those two facts alone should already have you reaching for your wallet, but theres more it uses Epsons excellent 3LCD technology that results in brighter colours than competing DLP projectors can offer.

The excellent affordability and high display resolution on offer make it perfect for home and office use, especially if your desired use is to hook it up to your HD PVR decoder so you can watch sport in HD, or a PlayStation 3 for Blu-ray movies. 720p is only entry-level when it comes to high definition, but its still sharper and clearer than standard definition TV and even DVD.

If you have the space, the EH-TW450 can project an image that is up to 100 feet wide thats huge! In an average-sized room, expect to project a screen even bigger than a 55 TV can offer. Its fan is a little loud when in operation, but output your audio to a decent sound system, and you wont even notice. As a first-time HD projector, the EH-TW450 is a very good buy.

>>

mEdE8Er mEd-500X

>>

Rating: HHHH PRiCE: R 3 600 thE Lowdown: 2TB internal storage, Internet connectivity, HDMI output.

Last month we looked at the Mede8er MED 200X, a media streamer thatll play almost all digital movie and music files youve got stored on a USB hard drive. At the price, it had a solid feature set but lacked some things we considered essential. Now we have its bigger brother, the MED 500X, and its what you really want if youre backing up lots of DVDs, at around 8GB each. And the reason is simple: its got an integrated 2TB hard drive. Thats plenty of storage space - enough for around 250 uncompressed DVDs. Of course, its not just limited to what you can fit on the internal hard drive. Like the MED 200X, the 500X sports two USB ports, for attaching external hard drives. More importantly, it also has an Ethernet port, endowing it with network capabilities. This means it can either access shares on other computers (such as a home storage server) or additional online content, such as streaming radio stations, YouTube and more. Its network features also include being able to serve stored content to other devices. Any computers on the network will be able to see content on the Mede8er, even if its being used to play back content on a TV. Its far more complete than the 200X, but that does come at a price - it costs more than 3.5 times as much.

GadGets


Africa Telecoms is always in the know when it comes to the hottest gadgets and devices.

>> AliEnwArE m17X r3Rating: HHHHH PRiCE: R 30 000 thE Lowdown: High-end Core i7 processor, nVIDIA Geforce 460M graphics card, Full HD 3D display.

When it comes to high-end computers, theres little need to look any further than Alienware. The brand has earned its reputation through supplying the very best gaming rigs, to the most demanding computer users of them all: PC gaming enthusiasts.

A few years after its desktops made headlines, the company started rolling out mobile gaming machines, and the M17x R3 is the latest iteration of its fastest portable gaming rig.

The 17 display has a full HD resolution (1920 x 1080), but why stop there? Its also kitted out with 3D technology, used in conjunction with a wireless set of active shutter glasses. Powering the visual experience is a quad-core Intel Core i7 chip and a GeForce 460M graphics card. Compatible games look simply fantastic and run without a hitch.

The truth is that the M17x is more a mobile desktop than a portable powerhouse. It weighs a ton (well, 5.3kg), and the exterior design makes no bones about the fact that its a heavy piece of kit with one role to fulfill. Vents, glowing lights and gloss black trim lend it an almost... alien-like appearance. If you can afford to game without sparing an expense, then this is for you.

GadGets H Uncool HH Poor HHH Average HHHH Excellent HHHHH Awesome


Rating: HHH PRiCE: TBA thE Lowdown: 7 display, Dual-core processor, Runs BlackBerry Tablet OS.

BlackBerrys long-awaited tablet, the PlayBook, is finally available for consumers to get their grubby paws onto. Mind you, theyll need to be slightly undersized grubby paws, since the 7 form factor is smaller in person than it sounds on paper. As the adage goes, though, its not about the size but rather how you use it, and in the PlayBooks case it makes the most of what it has. The new operating system (based on QNX, a system that also runs power plants and automotive assembly lines) is super slick, no doubt aided by the dual-core processor and generous amounts of memory. Video playback is smooth, multitasking works a treat and web browsing is effortless. In fact, when you first unpack it, its a stunning device.

Its only once you realise that you need a BlackBerry phone to get more out of it, that the fairytale takes a turn for the worse. Want email, address book or calendar functionality? Youll need to use it with a BlackBerry phone, over Bluetooth. Want to post stuff on Twitter? Theres no app for that. In fact, the software selection is very, very limited. Until these two negatives are sorted, its going to be difficult recommending the PlayBook over its competition running iOS or Android.

BlAckBErry plAyBook

>>ApplE ipAd 2>>

Rating: HHHHH PRiCE: R 4 400

thE Lowdown: 9.7 display, Dual-core processor, Fast graphics, Great design.

Just like you can count on the sun setting and the hour hand passing the minute hand, Apple will release an update to a successful product. In this case, its 2010 gadget-of-the-year, the iPad, was on the receiving end of the facelift treatment for the 2011 model year.

Much can be said about the iPad - who its for and what it can be used for - but well let its immense popularity (25-million units sold) and software selection (90 000 applications in the App Store) tell the story.

The second-gen device refines the original concept. Its now faster, boasting a dual-core processor and more memory, while retaining the proven 9.7 IPS display. The new processor also has improved graphics capabilities - Apple says it is up to nine times faster - but the impressive battery life remains unchanged, at 10 hours during use and up to a month on standby.

More performance for the same battery life hasnt even resulted in a form-factor compromise, since its thinner and lighter than before. Theres no denying that this has upped the bar for other tablet manufacturers, and even though Apple might be leading the pack for now, consumers are going to be the real winners in the end.

GadGetsAfrica Telecoms is always in the know when it comes to the hottest gadgets and devices.


>> 8TA HuAwEi E367 HSpA+ uSBRating: HHHHH PRiCE: R 699

thE Lowdown: 8ta have been causing a stir in the Mobile broadband market in South Africa offering a 10Gb data bundle package on their network for R199 per month (the equivalent of 28USD). This has taken many of the operators in South Africa by surprise as it is by far the best priced mobile broadband offering in South Africa at the moment.

This test was conducted using the 8ta network and Africa Telecoms was well surprised by the throughput speeds seen off this Huawei device. It supports HSPA+/UMTS 2100/1900/900/850MHz, GSM/GPRS/EDGE 850/900/1800/1900MHz, with HSPA downlink speeds of up to 21.6Mbps and uplink speeds of up to 5,76Mbps.

The design of the device is slick and looks great. The USB rotator makes connecting easy as well as keeping the USB connector protected when not in use.

From the 8ta network perspective this test was done in Cape Town and have received fairly impressive speeds and the best I have seen using a Mobile Broadband connection peaking at 11Mbps down and averaging at around the 6Mbps area. Overall this is a very compelling Mobile Broadband proposition.

>> nikon d5100Rating: HHHH PRiCE: R 9 000

thE Lowdown: 16-megapixel stills, Full HD 1080p video recording, Flip-out screen with live view.

Nikon and Canon both started selling entry-level digital SLR cameras a few years ago, with prices sneaking in at just under R10 000. That was the magical mark, then, but things have changed. The entry-level models have dropped in price (even while growing in feature set) and now cost around R5 000. The cameras that were originally just under R10 000 have only dropped in price slightly, sticking around the R8 000 or R9 000 mark, but their feature sets have grown significantly. The D5100 is one such camera. While its baby brother, the D3100, has many powerful features for beginners, the 5100 is aimed more at those who want to upgrade their ageing D70 or D90 camera bodies. 16-megapixels might not sound like much if the average point and shoot now boasts around that much, but its how you use those pixels that count. In the Nikons case, the bigger sensor means better picture quality. Being a dSLR, it can also be used with most of Nikons high-end quality lenses (except older ones that require an in-camera autofocus motor). Resulting photo quality is magnificent, even in very poor light, and the 1080P video is extremely close to the quality youd get from a dedicated HD video camera.


thought leadership

Claire paponneaudireCtor of the West and Central afriCa region for orange

colourof innovation

the


thought leadership

by brett haggard

How Orange is winning in West and Central Africa

Managing ones business dealings across a massive geographical area like Africa from a single, regional head office is

no mean feat. It takes solid insight into each countrys cultural

nuances, a good understanding of how mature that countrys market forces are and someone heavily focused on the legislative landscape. But, as different as some of the countries on the African continent are (think South Africa and Nigeria), certain constants exist.

A case in point, says Claire Paponneau, Director of West and Central African Operations

at Orange, is the booming demand for mobile communications and the strong appetite for data services, which make product development a far more predictable process for large, multinational operators.

That said, she continues, each country has different economic and regulatory environments. Our aim in all of the African markets we do business in is to get the coverage that is expected by the population and the government, while at the same time remaining profitable.

Its a goal that sounds far easier to attain than what it is in reality.


thought leadership

The reality is that we have successful

operations regardless of the language spoken

within the markets we operate. This is

because we go to great lengths to understand

the market and are committed to the

long-term.

all about loCal relevanCe Oranges presence in Africa is not exactly something thats recent. And Paponneau says that her company hasnt seen Africa as a territory to conquer, like so many of its peers.

Orange has been active in a number of countries on the African continent since the eighties and nineties. And in every case, its been a distinct opportunity thats lured us there as opposed to a need to conquer the continent, she explains.

Paponneau says Oranges past policy preferred a greenfields environment where it could shape and mould the go-to-market strategy and infrastructure before taking any steps into the market.

Today, however, some of Oranges most successful ventures have been into markets where theyve taken over or merged with existing players.

Theres also a misconception around Orange being more successful and comfortable with operations in French-speaking countries, because of the companys clearly French roots, she adds.

The reality is that we have successful operations regardless of the language spoken within the markets we operate. This is because we go to great lengths to understand the market and are committed to the long-term.

Strong evidence of this is provided by its investments in entities such as its Africa technology centre, which staffed by a research and product development team from the Ivory Coast and a manager from Senegal.

This centre has worked on and developed a multitude of services and solutions that have been successful on the African continent, Paponneau says.

A great example of such a service is Facebook for mobile, which Orange developed and launched in multiple African countries six months ago.

In six short months, the service has already garnered one million customers and is continuing that growth. Its important for us that these services werent exported from other parts of the world.

They were designed in Africa with local relevance in mind, she says.

says that although Orange has a name thats synonymous with mobile telephony throughout the world, it has a convergence strategy at heart that sees it committed to driving new services on the voice and data fronts.

Paponneau says Orange is driving voice, data and new services such as mobile banking for the African markets

the groWth of broadbandStill speaking to the topic of local relevance, Paponneau


thought leadershipit operates in.

We see broadband as a key lever for growth in the next years, she adds, and thats the reason we launch a 3G network wherever possible.

And where we cant have a 3G service, for whatever reason, we do our best to roll out a WiMAX service to ensure that the high-value business segment is addressed with speedy, reliable communications infrastructure.

Less visible but nonetheless critical, Paponneau believes, is Oranges involvement with the submarine cables providing backhaul to Africa; and the numerous terrestrial cable projects focused on assisting countries without direct access to the submarine cables to still be provided with cheap international capacity.

We feel its key for us to assist in developing this connectivity terrestrial or submarine since broadband is a key driver and enabler for our customers, she says.

Competitive landsCapeDespite its commitment to providing locally relevant services, driving broadband penetration and the fact that its the top operator in a number of the countries it operates in (Senegal, Mali, Ivory Coast and Madagascar, to name a few), Paponneau says that Africa is a competitive region.

Its difficult to say which countries have the most competitive landscape, since there are some factors that make markets with two to three players competitive and other factors that make markets with upwards of five players difficult to operate in, she says.

If I had to choose, however, Id say that markets saturated with upwards of five players arent a good landscape for competition, since theres just insufficient room for all of the players to be profitable while at the same time developing a quality of service thats of


thought leadership

We already have interconnect costs that have been decided and defined

by a regulatory body. If the retail market is also decided upon by a regulator, we will

find ourselves in a situation thats not very stable for very long,

outsourcing certain elements of the business to effect reductions in operating expenditure.

For Orange, Paponneau says this takes on the form of infrastructure sharing, site sharing and outsourcing non-core activities, as this can reduce costs while leaving quality of service unaffected.

a high standard.The risk is always there that a price

war will develop and as weve seen in markets such as Kenya, where a price war happens there are lower costs but also a lower quality of service.

In the beginning, she says, theres benefit for the consumer and it might seem as if the price war is a good thing. All it does is drive down innovation, which is counterintuitive to what an operator should be doing in any market.

On the topic of a price floor, which has been suggested for the Kenyan market, Paponneau says its an interesting suggestion, but not one she feels is achievable.

The price should be linked to the cost and when costs reduce, reductions in price should follow, she says. Its a good suggestion and were ready to contribute, but its something that needs to be carefully worked through.

We already have interconnect costs that have been decided and defined by a regulatory body. If the retail market is also decided upon by a regulator, we will find ourselves in a situation thats not very stable for very long, she says.

Paponneau says its sad when youre part of a market where you cant build value. For me its not about where competition exists, but rather where were stronger for the existence of competition.

Those markets, in my opinion, are the ones where were able to and encouraged to differentiate on services innovation like bringing new devices to market before our peers, and launching innovative broadband offerings and services that enrich our customers lives, she says.

the Customer is kingAn area thats considered innovative to some and just plain smart business practice to others is the act of


thought leadership

We wont do more than that, however, she says, as we want to remain masters of the customer relationship and quality of service.

Instead weve embarked on a project to outsource internally, forming a single entity that is dedicated to developing and managing all of the value added services platforms across our African operations.

This gives us the dual benefits of being able to reduce the costs of developing and managing value added services platforms in-country, while still being able to provide a guaranteed quality of service and local relevance, she says.

innovation the way forwardWhile Paponneau admits that its difficult to talk about what Orange has in the pipeline when it comes to upcoming services and differentiation, she says its clear that innovative services are the best way to add value to customers lives.

We will continue looking at services that are heavily linked to content, such

as the football fan club weve launched in more than 10 countries to date.

Paponneau says that the service provides users with access to a number of news articles related to African and European football (since a large number of professional African players play the majority of their football in Europe), information on upcoming games, as well as a chat feature for community members.

So far, Paponneau says, the service has been very successful and it provides a good blueprint for other content-driven services.

Orange feels that even though technical innovation is important, innovation that centres on services customers can derive real value from is just as important, she says.

And as such, it wont be surprising to see the company centring on services that reside above cost-effective, solid data services as opposed to focusing on the data services themselves, as so many other telcos do today. AT

Orange feels that even though

technical innovation is important, innovation

that centres on services customers can derive

real value from, is just as important. And as such,

it wont be surprising to see the company centring on services

that reside above cost-effective, solid data

services as opposed to focusing on the data services themselves, as

so many other telcos do today.

africa telecom stats


cost of simairtime (peak/min)

NigeriaN mobile off-Net peak period tariff aNd coNNectioN fee (2001-2009)nigerian communications commission

airt

ime

cost

of s

im

0

10

20

30

40

50

2001 2002 2003 2004 2005 2006 2007 2008 2009

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10,000

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cellular phoNe haNdset shipmeNt forecast (2002-2014) ic insights

mill

ions

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ands

ets

grow

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ate

worldwide handset shipmentsgrowth rate

0

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900

1200

1500

1800

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30 %

50 %

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f

the purpose of this page is to give readers of africa telecoms a brief overview as to the growth and statistics related to the telecoms and ict markets in africa. What we will be doing on an annual basis is relooking at the statistics, this way over time africa telecoms will have a basis for tracking developments and growth in the africa market.

each edition of africa telecoms will be focused on a specific area. in this months issue we are focusing on West and central

africa, with the broader african telecoms market place. there is an emphasis on Nigeria as it is africas largest telecoms market by subscriber numbers.

i trust that you will find this information of value and interest, should you have comments on this page or statistics that you think would be relevant that we have not included (or that you have access to and would be of interest to our readership) the africa telecoms team would appreciate an e-mail to [email protected].

africa telecom stats

gartner (may 2011)

top five eNterprise softWare veNdors WorldWide by total eNterprise softWare reveNue, 2010 ( us$ millioNs)

2010 revenue

54,711microsoft

iBm

oracle

sap

symantec

2010 market share (%) 2009 revenue 2009 market share (%) 2009-2010 growth (%)

25,436

23,918

12,979

5,655

other Vendors

Total

121,945

244,644

22.4 %

10.4 %

9.8 %

5.3 %

2.3 %

49.8 %

100.0 %

48,650

24,073

20,037

11,390

5,513

115,842

225,505

21.9 %

10.7 %

8.9 %

5.1 %

2.4 %

51.3 %

100.0 %

12.5 %

5.7 %

19.4 %

13.9 %

2.6 %

5.3 %

8.5 %

mtn

mtel

globacom

nigerian communications commission

airtel (i.e. celtel)

emte (i.e. etisalat)

NigeriaN market share of mobile operators (dec 2010)

total suBscriBers

teledensity

NigeriaN subscriber data (2000-2010)nigerian communications commission

Num

ber o

f lin

es (

mill

ions

)

tele

dens

ity5

10

20

30

40

50

2001 2002 2003 2004 2005 2006 2007 2008 2009

55

10 m

20 m

30 m

40 m

50 m

60 m

70 m

80 m

15

25

35

45

90 m


According to the February 2011 figures from the RSA Anti-Fraud Command Centre, South Africa was, after America and Britain, the country experiencing the greatest volume of phishing attempts. In addition, according to the figures, over the past three years more than R1 billion is estimated to have been lost in South Africa alone owing to cybercrime a startling statistic!

And, as the Internet penetration in South Africa and other African counties becomes more widespread in light of broadband fibre being made available, cybercriminals will become more sophisticated, developing viruses and real-time threats to target enterprises in a variety of ways all of which can have detrimental consequences. With this in mind, it can be said that Africa is fast becoming a hot cybercrime destination, creating the need for businesses operating within the continent to be cautious and take the necessary measures towards effective network security.

If we consider the rapid landing of the undersea cables, with data becoming more of a commodity, an increasing number of Africans can now access the internet anytime and anywhere. According to World Wide Worx, 10 million internet users are forecast in South Africa by 2013*, which highlights not only the potential growth in an unsaturated market, but also the potential for

AfricA is A growing cybercrime hub

by costin rAiu chief security expert,eemeA globAl reseArch & AnAlytics teAm At KAspersKy lAb


further cybercriminal activity throughout the African continent.Emails are often the main form of this activity through

spam and if we consider the stats, African companies should be warned. In the first half of 2011, according to statistics**, 14 893 cybersecurity incidents have been reported, of which 3 477 were related to fraud. Of these figures, 1 280 were phishing attacks that targeted banks in East and Southern Africa.

Whats more, according to Kaspersky Lab research, in Africa Egypt accounts for 31 percent of victims affected by malware. Algeria sits at 12 percent, Morocco at nine percent and South Africa at seven percent.

And, as if spam and phishing attacks arent enough, social engineering is on the rise, with many corporates allowing employees to use such sites on their business network. Globally we have already seen numerous natural disasters in 2011, all of which serve as an ideal platform for cybercriminals to exploit Internet users at work or at home. Social networking sites such as Twitter and Facebook are making this task much easier. Despite the tragic element associated with natural disasters and the deaths of high-profile people, hackers thrive on these types of events through cybercriminal activity for their own financial gain.

Adding to this is the growth in usage of mobile devices,

which also poses a potential security risk. Having access to the internet and emails on the go is certainly very convenient for the everyday working person as well as for the smart cybercriminal.

The fact is that there is no such thing as an ethical cybercriminal as they are constantly looking for more sophisticated ways to hack into corporate networks and entice internet users into giving up their personal information. This is evident in the number of attacks that are occurring every day. If we consider the security market in 2010, these events are likely to bring about a major shakeup in the types of criminals orchestrating cyber attacks as well as their aims and methods.

As a result, this year and going forward, businesses and the consumer will be faced with the widespread use of a new class of spyware programs, the aim of which can be defined quite simply as: steal everything! They will gather any information that they can about users, right down to the colour of their hair and eyes, and will examine every document stored on infected computers.

Furthermore, industrial and state espionage will become more pervasive, with less emphasis on precision attacks. Cybercriminals will start targeting a much broader range of


organisations, no longer concentrating solely on online banks and electronic payment systems. The principal aim of many new virus writers and their clients will be the acquisition of someone or somethings complete profile, rather than making a quick buck by stealing credit card details or distributing spam.

Potential changes to the structure of the malware authoring community are also likely to have a profound impact on the IT threat landscape. The emergence in 2010 of the technologically sophisticated Stuxnet worm that attacked industrial-class programmable logic controllers, was an impressive demonstration to the whole world of just what can be accomplished by a malicious program, as well as a wake-up call to the IT security industry because of how difficult it was to counteract. It cannot be ruled out that governments and commercial organisations will make use of Stuxnet-like programs for their own ends.

It is possible that we will only see the beginnings of these kinds of attacks in Africa, with their full force only being felt in the years to come. However, it is already clear that the increase in internet access and subsequently this new generation of cybercriminals means that those tasked with counteracting such cyber threats will need to raise their game considerably. AT*World Wide Worx Research Group, IT Leaders Summit in Johannesburg 2010**Cyber crime in Africa, May 2011, http://contadorwanarua.wordpress.com/2011/05/22/cybercrime-in-africa/

BY Jacques RautenBach, ceO: emeRging sOutheRn afRica & chief stRategY OfficeR

taking On the challenges in afRica fOR pROspeROus gROwth

OpiniOn piece


As Africa continues to outperform the developed world in terms of economic growth, and leads the way in terms of emerging market development, many companies are looking to the continent to drive their expansion and deliver an appreciable return.

It is for all these reasons that Dimension Datas Internet Service Provider (ISP) subsidiary, Internet Solutions (IS), has been embarking on an aggressive African expansion strategy over the past five years. However, the reason for our growth into Africa differs from that of a number of other companies as our expansion serves a dual purpose, explains Jacques Rautenbach, Chief Strategy Officer: Emerging Africa at IS.

Not only are we looking to grow our top line revenue and increase profitability, as an ISP we also play a vital role in enabling our clients expansion into the continent. This requires that we have a presence in all the countries within which they operate, which gives them the ability to work with a single entity for all their connectivity requirements and ensures a level of consistency is maintained with regard to these mission critical services. This, in turn, allows our multinational clients to focus on their core business and execute their own expansion strategy into Africa.

The global business market has generally equated the developing region of Africa with the likes of the other emerging market superpowers, like Asia, continues Rautenbach. However, the African business environment is much more complex than these markets, as it is not merely one country. Africa is made up of various different countries, each with its own regulatory framework, tax structure, import laws and varying levels of infrastructure quality, making it difficult to leverage continental scale over the distinct boundaries.

As such, it is difficult to make comparisons or draw similarities with the rest of the world, or even South Africa for that matter especially when trying to cookie cut business models and structures that have worked in other countries, and then apply them to the African market. There is no one-size-fits-all solution for conducting business in Africa and each country needs its own unique strategy, while maintaining as much operational uniformity as possible.

Further to this, IS also seeks to find solutions to the various other challenges facing ISPs in Africa, such as building out network infrastructure in geographically diverse countries with varying degrees of population density, securing bulk power supply, mitigating the variable costs associated with securing materials, bureaucratic red tape, widespread corruption and the associated bribery.

From a technology standpoint, Africa has moved from a broadband market that was predominantly enabled through satellite connectivity, to a position of having robust and abundant fibre infrastructure, which in most instances is now in oversupply, explains Rautenbach. This shift has been driven

OpiniOn piece


by the large-scale fibre infrastructure projects that are aimed at harnessing the massive amounts of international bandwidth available on a number of undersea fibre-optic cable systems running along both the west and east coasts of Africa, which have recently come online. These include the SEAC

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