MOBILE
Technologies
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Thought Leadership with Alan Knott-Craig
Q&A with Craige Fleischer of Samsung
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contents
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Thought Leadership with Alan Knott-Craig
32
Gartner Identifies the Top 10
The CEO of Cell C chats with Steven Ambrose
Strategic Technology Trends for 2013.
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The Power of One
Zero Outage Computing in Digital Clouds
Increasing customer loyalty with real-time targeted offers. By Yann Chevalier, CEO of Intersec
Cloud is everywhere, Roelof Louw of T-Systems discusses strategies for zero outages
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Telecoms that Move to Engage will Reap Benefits Craig Holmes of IBM highlights key findings from IBM’s Telecommunications Consumer Survey
56 Smarter
Infrastructure needed to Handle Exploding Data Traffic Peter Karaszi looks at Key Strategies for Operators
Regulars [02] guest editorial
Bradley Shaw Managing Editor for Africa Telecoms.
[04] news
The latest local and global telecoms news.
for the mag [66] q&a
With Craige Fleischer, Director of Mobile Communications for Samsung South Africa.
[68] calendar
Upcoming events, shows and conferences you can’t afford to miss.
[18] gadgets
[70] jobs
[24] statistics
[72] lastword
Want the next big thing in portable devices? Our gadget review is here to help you. Africa Telecoms presents statistics and data relating to the African telecoms market.
A list of the latest telecoms vacancies from across Africa. Rotten Apple given 48 hours to clean up its Act.
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[ Managing Editor ] Bradley Shaw
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[ Art Director ] Hayley Davis
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[ Sub-Editor ] Yazeed Fakir [ Printing ] Tandym Press [ Contributors ] Bradley Shaw, Steven Ambrose, David N. Ceorley, Yann Chevalier, James Munn, Roelof Louw, Craig Holmes, Vishwanath Alluri, Peter Karaszi, Juanita Clark, Gary Allemann Africa Telecoms and Africa Telecoms Online are published by:
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Issue 26 AFRICA TELECOMS 1
guest editorial
by BRADLEY SHAW, MANAGING EDITOR, AFRICA TELECOMS
Will the real Regulators please STAND up! The advancement of telecommunications in Africa revolves around the speed and accessibility of data to the masses. With the next evolution focussing on 4G, whether through WIMAX or LTE technologies, the success of implementing fourth generation advancements require the support and guidance from regulators across the continent. From a purely technological perspective, although LTE is gaining the most support , it is probable that there will be a GSM/CDMA divide between theses two competing technologies. However, the major issue hindering LTE deployments in Africa hinges on spectrum and spectrum allocation, and this remains the purview of telecoms regulators. Spectrum, much like oil, gas and minerals, is a scarce and valuable resource, integral to the development of nations.
“A combination of 3G and 4G, in tandem with the boom in smartphone adoption and use, will bring about a major leap in the number of people using mobile broadband, the way they use it, and the amount they use it.” INFORMA TELECOMS AND MEDIA
Many operators across the continent are ready to deploy 4G rollouts yet for-the-most-part, regulators across Africa simply can’t or won’t make any paradigm-shifting decisions around the allocation of 4G spectrum. The requisite bands are 2.6GHz and 800MHz, which are suitable for LTE. Is it simply a case of regulators who simply are not prepared to release this spectrum? Probably not, with the more likely scenario being that they simply don’t have the requisite skills in place to fulfill this spectrum allocation with any degree of competence. In South Africa, for instance, MTN, Vodacom and Cell C have all announced plans to release commercially available LTE before the end of 2012. Can this be achieved without the requisite spectrum? It’s certainly possible, but definitely not preferable! Therefore, the operators are forced to ‘re-farm’ the 2G GPRS 2 AFRICA TELECOMS Issue 26
signal for LTE usage: • Vodacom is showcasing LTE and reportedly has 1,000 LTEready sites, with launch planned “when handsets become available”. • MTN is trialling LTE in 1800 MHz spectrum since 2.6 GHz is not currently available. • Cell C is reported to be trialling LTE in existing 900 MHz and in test 850 MHz spectrum. This has unique and unwanted consequences. Principally, with voice and data networks already stretched to breaking point in urban areas, this will put further strain on the networks and ultimately affect quality of service and service delivery. Icasa’s Paseka Maleka, in an interview with City Press, commented that: “[R]egarding the licensing of high-demand spectrum (4G), the process has been postponed until further notice, pending the finalisation and issuing of the policy direction by the minister of communications.” And so the blame game continues with ICASA laying the delays in spectrum allocation squarely at the feet of the Ministry of Communications. In Kenya, Safaricom is trialling LTE in its existing 3G spectrum. Regulatory policy remains unclear with the government reportedly deciding that LTE licenses will not be awarded to mobile operators, but instead will launch tenders for a part state-owned company to build a national LTE network to be shared by the mobile operators Elsewhere across the continent, 4G is gaining traction with operators in Namibia, Angola and Tanzania having already launched small-scale commercial LTE services with Nigeria expected to be LTE-ready by 2013 and Egypt by 2014. Informa Telecoms & Media forecasts nearly 350,000 LTE subscriptions in Africa by the end of 2012, with this number growing to around 40 million by the close of 2017. So, it still seems that Africa is having the same historic problems, with regulatory intransigence hindering new technologies. Decisions need to be made quickly and with plenty of planning to the benefit of data hungry communities, both urban and rural, across the continent. AT
BlackBerry Apps Lab Opens in Cape Town
Second Facility in South Africa to Help Enable Local Mobile Application Development Research In Motion (RIM), the maker of BlackBerry® smartphones and BlackBerry® PlayBook™ opened its second BlackBerry® apps lab in South Africa. The new lab is based in Cape Town and follows on the launch of the BlackBerry apps lab at the University of Pretoria (UP), a BlackBerry Authorised Academic Centre, in May this year. “Cape Town is a key innovation hub, and a natural site for RIM’s second BlackBerry apps lab in South Africa,” said Alexandra Zagury, MD for South Africa and Southern Africa at RIM. “We are now looking forward to fostering mobile innovation in the Western Cape and helping to grow South Africa’s next wave of mobile app developers. Our investment in this lab is a signal of our commitment to supporting South Africa’s thriving BlackBerry developer ecosystem.” The aim of the BlackBerry apps labs is to help accelerate mobile application development in South Africa, thereby creating new economic opportunities and jobs in the mobile space, and to support the larger context and objectives of the South African Department of Communications’ (DOC) eSkills Institute. The labs provide local developers, including students, start-ups, entrepreneurs and others, with access to resources in development, marketing, sales and training to help them expand their ideas and
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business opportunities. According to Blessing Mahlalela, a student at UP and a developer, the BlackBerry apps lab is every developer’s dream. “RIM has eliminated the cost that my startup company would have incurred by providing resources such as the latest BlackBerry devices for testing and high performance development machines,” said Mahlalela. Fellow UP student, Leon van Dyk added, “My programming abilities for the BlackBerry platform have increased monumentally - and so has my interests in mobile development as a career choice.” RIM will work with developers at the Cape Town lab to create local and regionally relevant applications for BlackBerry smartphones and the BlackBerry PlayBook, as well as for devices running the upcoming BlackBerry® 10 platform. The initiative is expected to help create locally relevant apps, new skills and job opportunities for graduates, and new revenue streams for developers. The BlackBerry apps labs form part of RIM’s extensive developer programme that spans Africa and includes facilities in key innovation hubs in Nigeria, Kenya, and Egypt. RIM has been working with 118 universities, colleges and schools across Africa through the BlackBerry Academic Program to provide institutions with course materials and content to teach and educate students on mobile application development.
news
Improved Connectivity to Support Growth of Converged Networks in Sub-Saharan Africa, Finds Frost & Sullivan Network convergence will offer long-term cost savings and create new revenue opportunities for CSPs The market for converged networks in Sub-Saharan Africa is still at an early growth stage as operators begin to invest in infrastructure. Communication service providers (CSP) face declining average revenue per user (ARPUs) and increasing churn, and have turned to converged networks to boost their revenue streams. Convergence offers service providers the opportunity to reduce their CAPEX and OPEX in the long-term, with cost savings projected to be as high as 50 % and 35 %; respectively, from legacy networks. New analysis from Frost & Sullivan, Overview of Converged Networks in Sub-Saharan Africa, finds that the number of subscribers is set to expand from 1.1 million in 2010 to reach 21.4 million in 2017. The research covers South Africa, Kenya, Uganda and Nigeria. “With improving bandwidth, CSPs are able to expand their revenue-generating opportunities by providing content-rich offerings such as TV and video services of IP networks,” noted Frost & Sullivan’s Information & Communication Technologies Research Analyst Lehlohonolo Mokenela. “This trend is being reinforced by customer demand for ubiquitous connectivity, as businesses and consumers seek on-the-go access and digitalised resources.” It is expected that the uptake of converged services will be driven by the increasing broadband penetration rate in Sub-Saharan Africa, thus motivating CSPs to invest in developing broadband infrastructure. By providing last mile fibre solutions, such as FTTP, CSPs are preparing to offer triple play packages that include IPTV. While migrating from legacy networks to an all-IP network will provide cost savings in the long-term, it can be very expensive in the initial stages. CSPs are therefore only gradually migrating to all-IP networks, more so as the business model for network convergence is still uncertain. However, the relative lack of infrastructure in most of Sub-Saharan Africa gives operators the opportunity to deploy converged networks in their geographical expansion strategies. “CSPs are still unable to estimate the ROI from deploying a fully converged network, as the business model for convergence in Sub-Saharan Africa is still uncertain,” explained Mokenela. “As a result, the move towards convergence has been gradual, with service providers offering broadband as stand-alone services and not as part of a bundled offering.” Service providers may not want to wait for the market to develop in order to invest in convergence. Instead of deploying fully converged networks, they can employ an IP multimedia sub-systems (IMS) architecture that can be integrated to their legacy networks. This solution will enable a seamless and gradual migration to an all-IP network in the long-term. “With improving bandwidth, CSPs should take advantage of increasing broadband uptake and position themselves to provide converged services,” concluded Mokenela. “This will require investment in network infrastructure so that operators can provide content-rich multimedia services that will boost the uptake of their converged services. A gradual shift to converged networks, using IMS solutions, will aid CSPs to gain a foothold in the market while preparing for a complete migration to next-generation networks (NGN).”
Smart Glasses and Other Wearable Technologies to be worth over $1.5bn by 2014, finds Juniper Research A report from Juniper Research has valued the next-gen wearable devices market, including smart glasses, to be worth more than $1.5 billion by 2014, up from just $800 million this year. These revenues will be largely driven by consumer spending on fitness, multi-functional devices, and healthcare. Wearables ~ The Next ‘Smart’ Thing Classified as a ‘future form factor’ for computing devices, next generation wearables, including smart glasses and other head-mounted displays, will provide a multitude of functions either independently or in conjunction with a third party platform. The new report, Smart Wearable Devices: Fitness, Healthcare, Entertainment & Enterprise 2012-2017 identifies 2014 to be the watershed year for wearable devices – in terms of roll outs and market traction. Large influential players such as Google and Apple have already made key strategic moves in this sector. Wearables Today The use of wearable devices connected to the smartphone in the fitness and sports environment has grown rapidly in the last two years with applications such as Nike+ and Fitbit Tracker allowing data from training sessions to be uploaded and analysed. Report author Nitin Bhas added: “With consumers embracing new technologies and form factors, wearable devices ranging from fitness accessories to heads-up displays will be more prevalent in the consumer market. While fitness and entertainment will have the greatest demand from consumers, within an enterprise environment, the demand for wearable devices will be greatest from the aviation and warehouse sectors”.
Issue 26 AFRICA TELECOMS 5
MTN Uganda commissions a new multi-million Data and Switching Centre at Mutundwe as it launches its new MTN Business Unit The launch of the multi-million dollar Data and Switching Centre by MTN in Mutundwe, just outside Kampala city centre, goes hand in hand with the launch of a new Business Unit which will be a world class provider of converged communications solutions aimed at providing MTN business customers with superior, directly managed services, fully backed by consistent service levels. In doing so, MTN has taken a special focus on the Small and Medium Enterprises (SME) and the Corporate/Business section of our customer base by ensuring that, through innovation, we are able to provide the necessary products and services to satisfy their needs. MTN business will be the arm of MTN Uganda responsible for providing business solutions that will satisfy the needs of our Corporate clientele. Our vision is to provide converged communications solutions for our customers through a dedicated team that will manage the entire product portfolio to ensure a seamless experience for our customers. “MTN Business will offer a wide range of business solutions through an array of technology options to suit our customers’ business needs both in and out of the office, locally and internationally. Customers can focus on their core business and MTN will deliver the needed communications solutions”, said Katlego Arnone, the General Manager MTN Business. “Over the next 2 to 5 years, it will be important for players in the industry to invest in converged communications solutions in order to remain relevant. The industry will continue to be a key driver of government revenue and transformation of lives - both in the business and personal space and with no doubt the telecommunications industry will continue to be a catalyst for economic development, said Mazen Mroué, the MTN Chief Executive Officer. This launch comes as MTN has just celebrated 14 years of operation in Uganda. Over the years MTN has been consistent in its investment in both infrastructure as well as social development in the country. MTN has introduced a number of innovative services that have changed the face of the telecommunications industry. One of these noteworthy services is the launch of the revolutionary MTN Mobile Money service. Over the last 14 years since the first mobile call was made in Uganda, we have seen number of subscribers to mobile phone services rise to over 14 million. This means that 14 million people in Uganda have access today to the mobile money service by default. Of the more than 7.5 million customers MTN Uganda has today, approximately 3.2 million are registered on MTN Mobile Money. Over the last two years MTN Uganda has made major investments in the Uganda. MTN Uganda launched the first mobile money service in Uganda with tremendous success, introduced 3G+, expanded our distribution foot print, and greatly enhanced our core, radio capacity and infrastructure technology. Furthermore, it extended the fibre network infrastructure and built regional switching centres in the East, West, North and Central regions. In terms of infrastructure, this year MTN Uganda will have an additional 600KM of fibre infrastructure completed and MTN Uganda will have close to 2,600km of fibre by the end of 2012 providing the capacity for high speed data connectivity and wider National coverage of 3G mobile data services that extend internet access to the rural areas of Uganda. In 2012 alone, MTN’s CAPEX investments will exceed USD 80 million by December. This investment has been mainly in expanding network infrastructure as well as rollout of new innovative products and services. “With MTN Business, our vision is to provide converged communications solutions for our customers through a dedicated team that will ensure a seamless experience for our customers,” concluded Mroué.
6 AFRICA TELECOMS Issue 26
news
Tigo launches nationwide SME Forums Tanzanian operator Tigo launched nationwide a program of networking sessions for start-up businesses as part of its commitment to enhance the growth and development of Small and Medium Enterprises (SMEs) in Tanzania. The aim of the sessions is to bring together SMEs and corporates from various sectors together to network and benefit from new business communications solutions. One of the goals is that SMEs benefit from mentoring workshops, training and nationwide talks on topics like marketing and management, finance and productivity. SMEs will also have access to business advice and additional skills to leverage technology for a competitive edge. “These sessions will reach businesses right across the country,” said Diego Gutierrez, Tigo General Manager. “Tigo is very excited about taking a different approach in supporting the socio-economic development of the nation,” Mr. Gutierrez said. Among the innovative business solutions presented at this forum is the launch of Tigo TELCO Solutions during the events, touted as ‘the one stop shop for your Telco needs.” Tigo Telco Solutions will provide tools that give business owners clarity on spend, allowing them to plan their business activities within budget. It also offers SMEs and corporates convenience to communicate affordably, as well, as bill paying options. “As Tanzania’s most innovative network, Tigo continually seeks ways to offer the best value propositions for SMEs and corporates through various products and services.” Mr. Gutierrez said.
Airtel crosses 60 million active customer mark in Africa In a substantial achievement Airtel celebrated its 60 millionth customer in Africa. Airtel, which recently moved up one notch in global rankings to become the fourth largest mobile operator in the world in terms of subscribers, added 10 million customers across its operations in 17 African countries in less than 12 months of having crossed 50 million subscribers. “Since launching the Airtel brand in Africa in 2010, Airtel has been on a steady growth path,” explains Andre Beyers, Chief Marketing Officer, Airtel Africa. “The ability to communicate with each other is no longer a privilege on this continent, but a necessity. Airtel remains committed to ensuring that it continues to provide innovative and relevant communications solutions to all, which positively impacts as many lives as possible.” Airtel has remained steadfastly committed to providing customers with telecommunication services that make lives easier. Since celebrating its 50 millionth customer, the company has embarked on a journey to build the largest 3G network across the continent. To date, the company has rolled out its 3.75G network to 14 countries. Reaching speeds of up to 21 mbps, Airtel’s 3.75G network is one of the fastest available globally and will be immensely beneficial to large Corporates, Small and Medium Businesses and the Youth. “Access to telecommunications plays a crucial role in driving economies within Africa,” explains Mr. Beyers. “This includes access to both voice and data services. The biggest transformation on the continent is in bridging the digital divide and connecting the continent to the rest of the world; this remains Airtel’s commitment to the communities that we serve.” With the recent launch in Madagascar and Burkina Faso, Airtel Money, Airtel’s mobile money platform, Airtel Money, is now live in 14 countries across Africa. The service, allows communities to take maximum advantage of the mobile commerce reality sweeping through the industry by enabling them to conduct a range of financial transactions quickly, securely and
easily. Perhaps one of the most notable achievements is that the company has placed equal importance on reducing its carbon footprint. As part of its commitment to the environment Airtel has undertaken a series of ‘green’ initiatives that deliver tangible results. Over the last year, it has reduced the number of sites running solely on diesel by more than 50 per cent through the use of innovative models such as a Hybrid Battery Bank. By 2013, the Company aims to completely eradicate the constant use of diesel to power its network. This means no site will rely solely on diesel power 24 hours a day. “As a global company we need to ensure that we stay committed to the long-term well being of the environment in order to be truly successful and make a positive impact on the community,” continues Mr. Beyers. “Reaching this goal will be a huge accomplishment for us, and we intend to do whatever it takes to ensure that we completely reduce our dependence on diesel power and instead focus on alternative forms of energy like solar power.” Despite the company’s growing commercial success, Airtel remains focused on making a positive impact on the communities in which it operates. As part of this initiative, Airtel works with the respective Education Ministries in each country to identify schools in need of refurbishment and educational facilities in order to create a better learning environment for students. To date, the company has adopted 30 schools through its ‘Our School’ initiative across the continent, with plans to adopt up to 45 schools by April next year. Though Airtel has already notched up significant milestones, it remains dedicated to marking more successes in Africa. Moving forward, the company is hoping to grow its subscriber base on the continent through maintaining a strong focus on rural penetration, innovation and customer responsiveness. Issue 26 AFRICA TELECOMS 7
Global study gives SA mobile networks thumbs up In the second annual Cisco Global Cloud Index, Cisco forecasts that global data centre traffic will grow four-fold and reach a total of 6.6 zettabytes annually by 2016. The company also foresees that Middle East and Africa will have the highest cloud traffic growth rate at 79 percent Compound Annual Growth Rate (CAGR); followed by Latin America (66 percent CAGR); and Central and Eastern Europe (55 percent CAGR). Cisco predicts that global cloud traffic, the fastest growing component of data centre traffic, will grow 6-fold – a 44 percent combined annual growth rate (CAGR) – from 683 exabytes of annual traffic in 2011 to 4.3 zettabytes by 2016. The vast majority of the data centre traffic is not caused by end users but by data centres and cloud-computing workloads used in activities that are virtually invisible to individuals. For the period 2011 – 2016, Cisco forecasts that roughly 76 percent of data centre traffic will stay within the data centre and will be largely generated by storage, production and development data. An additional 7 percent of data centre traffic will be generated between data centres primarily driven by data replication and software/system updates. The remaining 17 percent of this traffic will be used for, accessing the cloud for web surfing, emailing and video streaming. Key Highlights from the Study for South Africa: South Africa ranks as one of the most improved countries in mobile network performance, improving by 50% from 2011 to 2012. Morocco received a score of 67%. 1. Overall consumer and business fixed network cloud performance in South Africa: • Download speed of 2.045kbps, • Upload speed of 764kbps, • Latency speed of 95ms 2. Overall consumer and business mobile network cloud performance in South Africa: • Download speed of 2.629 kbps, • Upload speed of 1.253kbps, 8 AFRICA TELECOMS Issue 26
• Latency speed of 134ms 3. Consumer mobile network cloud performance in South Africa: • Download speed of 2.629kbps, • Upload speed of 1.253kbps, • Latency speed of 134ms 4. Business mobile network cloud performance in South Africa: • Download speed of 2.069kbps • Upload speed of 865kbps, • Latency speed of 151ms Key Regional Highlights from the Study: 1. From a regional perspective, the Cisco Global Cloud Index predicts that through 2016, the Middle East and Africa will have the highest cloud traffic growth rate, while the Asia-Pacific region will process the most cloud workloads, followed by North America. 2. For global data centre IP traffic forecast for Middle East and Africa covering network data centres worldwide operated by enterprises and service providers, Cisco forecasts that global data centre traffic will grow nearly 11-fold over the forecast period and reach 251 exabytes annually by 2016. This represents a 60 percent compound annual growth rate or CAGR. 3. Global cloud traffic will account for nearly two-thirds of total global data centre traffic: 4. In Middle East and Africa, cloud data centre traffic will represent 64% of total datacenter traffic by 2016, compared to 37% in 2011. It will also grow 18.5-fold by 2016, at a CAGR of 79% from 2011 to 2016. Cloud data centre traffic grew 93% in 2011, up from 4.5 5. Workload transitions: From 2011 – 2016, data centre workloads will grow 2.5 fold; cloud workloads will grow 5.3 fold: 6. From a fixed network perspective, the average network performance characteristics for the Middle East and Africa can currently support intermediate cloud-computing applications such as high-definition video streaming and video chat applications.
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Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC The Android smartphone operating system was found on three out of every four smartphones shipped during the third quarter of 2012 (3Q12). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, total Android smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million smartphones shipped in 3Q12. The 91.5% year-over-year growth was nearly double the overall market growth rate of 46.4%. “Android has been one of the primary growth engines of the smartphone
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market since it was launched in 2008,” said Ramon Llamas,, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Androidpowered smartphones to market.” “The share decline of smartphone operating systems not named iOS since
news Android’s introduction isn’t a coincidence,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. Google has a thriving, multi-faceted product portfolio. Many of its competitors, with weaker tie-ins to the mobile OS, do not. This factor and others have led to loss of share for competitors with few exceptions.” Mobile Operating System Highlights Android, having topped the 100 million unit mark last quarter, reached a new record level in a single quarter. By comparison, Android’s total volumes for the quarter were greater than the total number of smartphones shipped in 2007, the year that Android was officially announced. Samsung once again led all vendors in this space, but saw its market share decline as numerous smaller vendors increased their production. iOS was a distant second place to Android, but was the only other mobile operating system to amass double-digit market share for the quarter. The late quarter launch of the iPhone 5 and lower prices on older models prevented total shipment volumes from slipping to 3Q11 levels. But without a splashy new OS-driven feature like Siri in 2011 and FaceTime in 2010, the iPhone 5 relied on its larger, but not wider, screen and LTE connectivity to drive growth. BlackBerry’s market share continued to sink, falling to just over 4% by the end of the quarter. With the launch of BlackBerry 10 yet to come in 2013, BlackBerry will continue to rely on its aging BlackBerry 7 platform, and equally aging device line-up. Still, demand for BlackBerry and its wildly popular BBM service is strong within multiple key markets worldwide, and the number of subscribers continues to increase. Symbian posted the largest year-on-year decline of the leading operating systems. Nokia remains the largest vendor still supporting Symbian, along with Japanese vendors Fujitsu, Sharp, and Sony. Each of these vendors is in the midst of transitioning to other operating systems and IDC believes that they will cease shipping Symbianpowered smartphones in 2013. At the same time, the installed base of Symbian users will continue well after the last Symbian smartphone ships. Windows Phone marked its second anniversary with a total of just 3.6 million units shipped worldwide, fewer than the total number of Symbian units shipped. Even with the backing of multiple smartphone market leaders, Windows Phone has yet to make a significant dent into Android’s and iOS’s collective market share. That could change in 4Q12, when multiple Windows Phone 8 smartphones will reach the market. Linux volume declined for the third straight quarter as did its yearover-year growth. Samsung accounted for the majority of shipments once again, but like most other vendors competing with Linuxpowered smartphones, most of its attention went towards Android instead. Still, that has not deterred other vendors from experimenting, or at least considering the open-source operating system, as multiple reports of Firefox, Sailfish, and Tizen plan to release new Linux-based experiences in the future.
Worldwide smartphone os market share, 2012 q3
top 6 smartphone mobile os, shipments and market share, 2012 q3 (preliminary, units in millions)
Source: IDC Worldwide Mobile Phone Tracker, Nov 1, 2012
android smartphone shipments and market share, 2008-2012 (millions)
Source: IDC Worldwide Mobile Phone Tracker, Nov 1, 2012
Issue 26 AFRICA TELECOMS 11
Microsoft Unveils Windows Phone 8
Latest smartphones from Nokia, Samsung and HTC go on sale in November Less than a week after unveiling its new Windows 8 operating system, Microsoft launched Windows Phone 8, the latest version of the company’s smartphone operating system, calling it “a truly personal phone experience”. As part of the announcement, Microsoft revealed new features, along with the range of new smartphones from Nokia, Samsung and HTC, each with their own differentiated designs, colours and features. Windows Phone 8 devices will go on sale in November in South Africa. Microsoft South Africa’s Anthony Doherty says live tiles, which allow users to customize the start screen and update automatically, are the heart and soul of Windows Phone. “With a similar look and feel, the same technology core, and the same built-in SkyDrive cloud service, Windows Phone 8 is built to work seamlessly with Windows 8 PCs, tablets and the Xbox 360 console,” said Doherty. “For example, now you can edit a document on the go with Windows Phone 8 and pick right up again on your PC when you get home.” Windows Phone 8 offers a range of new features to make users’ smartphone experience even more personal, including: • Live Apps, which bring information directly to the start screen, such as weather and news headlines. Live Apps such as Facebook can even deliver real-time information right to the lock screen with updated wallpaper. • Top apps. The Windows Phone Store has 120 000 apps to choose from, such as Angry Birds Star Wars, Cut the Rope Experiments and Disney’s Where’s My Water. • Kid’s Corner. Exclusive to Windows Phone 8, Kid’s Corner is a worry-free way to share your phone with your kids, so they can play Angry Birds without texting your angry boss. Parents can now hand over their phones to the kids without worrying about deleted photos, misdirected emails, unapproved purchases or accidental phone calls. After a simple setup, parents can activate a specialized place on the phone for kids to play — complete with their own customisable Start screens — where they can access only the apps, games, music and videos picked by parents. • Rooms. Sometimes you want to share and chat with one group, not your
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•
entire social network. Rooms allow you to create private groups of people who have Windows Phone 8 — like your family members best friends or fantasy football league — and easily connect with just them. Chat, share calendars, shopping lists or photos in an ongoing conversation where only those invited can join in. You can share some aspects of Rooms with friends and family on other smartphones as well. Always-on, premium Skype experience. With the new Skype app, coming soon to Windows Phone 8, you can make and receive Skype calls just like a regular phone call. Simply tap a friend or family member’s contact card in the People Hub, or just pick up when the phone rings. Skype is always on and available so you can choose how to connect with people.
Nokia, Samsung and HTC have announced an array of phones for Windows Phone 8, featuring large, vivid screens, new camera innovations, NFC capabilities, and bold colors. Each phone offers unique features and comes in a variety of price points. • Nokia. The Nokia Lumia 920 offers state-of-the-art photography that fits in your pocket, and it is the world’s only smartphone to include Optical Image Stabilisation. The Nokia Lumia 920 offers wireless charging. • HTC. The Windows Phone 8X by HTC was designed with sleek lines and radiant colors to match Windows Phone’s new Live Tiles. This phone also breaks new ground in optics with 1080p video recording, f2.0 aperture and a dedicated HTC ImageChip on the main 8-megapixel camera and an ultrawide-angle lens on the front camera that lets you fit up to four people in the frame for a premium Skype experience. The 8X and its smaller sibling, the 8S, both boast a killer music experience with Beats Audio and exclusive built-in amps that pair perfectly with Xbox Music. • Samsung. The Samsung ATIV S brings the biggest screen to Windows Phone, with a bright 4.8-inch touch screen and large battery for extended battery life. Wrapped in brushed aluminum, the ATIV S balances high-end materials and technology with a hairline design and lightweight. The ATIV Odyssey was announced today as the latest Windows Phone from Samsung with more details to come.
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VMK now launches African Smartphone VMK, the Congo-Brazzaville-based website design, application development and consulting company that released a 7-inch tablet the Way-C in 2011, has now released its own smartphone, called the Elikia. VMK’s Verone Mankou announced this at the recent Tech4Africa conference in Johannesburg, saying that the device was built with Africans in mind. Built as an entry-level smartphone, it has an impressive list of features including, capacitive multi-touch screen, 2G/3G connectivity, 5MP camera, 650MZH processor, 1300 mAh battery and will run Android 2.3.6 (Gingerbread). As far as smartphone specs go this is certainly not a high-end device but it certainly fills a gap in the market for cost effective smartphones for Africa. Africa still has very low smartphone penetration and feature phone dominate, however should VMK have their way this will change and change rapidly. Another problem that faces VMK in its home market of Congo Brazzaville is inability to connect to the Google App Store. VMK have found a work around and have there own Android store available on their devices the VMK Apps Market and VMK Games Market. Mankou concluded his address stating that, “Only Africans can know what Africa needs, Apple is huge in the US, Samsung is huge in Asia, and we want VMK to be huge in Africa.”
PnP charts new e-reading territory Pick n Pay is bringing the world-class Kobo eReading platform to South Africa.
This award-winning device has one of the largest content catalogues in the world, as well as a localised online customer experience. Content offerings will include works by notable local authors and books in both English and Afrikaans. The award-winning Kobo Touch, rated Wired magazine’s 2012 Editor’s Pick for Best eReader, is now available at selected Pick n Pay Hyper and Supermarkets and online, for the low introductory selling price of R995. In addition, customers can also earn Pick n Pay smart shopper points on all Kobo Touch devices and accessories purchased. “There’s no getting away from the fact that the world is becoming increasingly more digitally focussed, and by offering quality digital products at competitive prices we can ensure that these platforms become more accessible to a greater base of South African consumers,” says Marketing Director of Pick n Pay, Bronwen Rohland. CEO of Kobo, Michael Serbinis, concurs: “We’re excited to enter a new continent, and happy to be able to do so in partnership with Pick n Pay. Together we hope to transform the digital publishing market by making more e-books available to more people throughout South Africa.” 14 AFRICA TELECOMS Issue 26
Creating rewarding customer experience to help you maximise revenues and increase loyalty.
Allied Group is the leading provider of comprehensive logistics and technical services to mobile network operators, wholesalers and retailers, and a value-adding independent specialist distributor of cellular devices and related products such as phones, SIM cards, data cards, netbooks, laptops, collaterals and other accessories in the fast growing sub-Saharan mobile telecommunications market. The company’s addressable market comprises 26 countries, with a total population of over 550 million. Allied shipped approximately 23 million units in 2011 and expects to increase its shipment volume twofold in 2012. Allied was initially established as a distributor of handsets to mobile service providers and retail outlets. The company soon expanded its portfolio to include value-added services such as managing the end-to-end supply chain for its customers, including all warehousing, customisation, forecasting, purchasing, inventory management and distribution. Through the company’s interaction with both cell phone manufacturers and retailers, Allied created a fulfilment model that minimises the response time for the delivery of customised handsets and for the maintenance and repair of handsets. The logistics business allows the company to offer best-in-class services and strengthen its relationshipswith its clients. Allied was established in 2003 by a team with extensive experience in the EMEA region, as well as knowledge of the cellular telecommunications industry and logistics management services. The team had already identified a tremendous opportunity to conquer Africa in the cellular telecommunications space. “The reason our company is unique is because the evolution of the Allied business model resulted in the company becoming the independent market leader. We customise and specialise to meet the customer’s requirements. Today we distribute cellular phones to major operators, service providers and retailers in South Africa and selected countries in Africa. Allied ships to over 8,000 retail outlets throughout Sub-Saharan Africa,” says Jason Harmsen, Allied’s Chief Strategic Officer. Allied offers a unique combination of local market expertise and best-in-class business practices, and is ideally suited to capture the continued strong growth expected in themobile telecoms market in Sub-Saharan Africa. “Allied has a blue-chip customer base across the region,” states Francois Van Eyssen, Allied’s CEO, Africa Region. “The company is expected to increase its revenue more than twofold in 2012 as a result of its continued international expansion and winning some key strategic contracts such as the one it signed in 2010 with Telkom, under which the company acts as a supplier of handsets and ancillary products and third-party logistics services to 8ta, the
fourth entrant to the South African mobile telecommunications market.” The company is also an exclusive supplier of handsets and logistics services to Virgin Mobile South Africa, the continent’s first mobile virtual network operator (MVNO). Allied’s expansion strategy reflects Africa’s increasingly important role in the global economy. Economic growth stimulated by development of Africa’s natural resources is anticipated to lead to consumer-facing sectors growing two to three times faster than those in the OECD countries. The company has comprehensive agreements with key cell phone manufacturers, including Samsung, Nokia, RIM, Motorola and others, who see Allied as the ideal partner to expand their business in Africa. With Nokia, Allied has entered into a fulfilment contract, as well as distribution agreements in Mozambique and Zambia. And in 2010, the company extended its long-term co-operation with Samsung, entering into a pan-African fulfilment contract covering an additional 18 African countries. Allied’s contracts reflect a long-term relationship with its partners, supported by its access to diversified distribution channels, including mobile operators, their franchise networks, service providers, retailers and wholesale dealers. Allied makes a high percentage of sales directly to operators, demonstrating its ability to enter into high valueadded relationships with its key business customers, that deliver above market gross margins. “Allied has been rapidly expanding its presence into a group of high-growth African countries, in which it plans to sell cellular products and handset services, with sales volumes growing above 30per cent annually,” says Jacqueline Cole-Courtney, Group CEO, Allied International Investments. “Since these countries are at different
economic and technological stages in the development cycle, Allied has approached these markets with a tailored product offering and a strategy to address specific local needs. Furthermore, the geographical expansion programme is being conducted in a very cost-effective and efficient manner, from Allied’s six hubs and repair centres located throughout Sub- Saharan Africa. “Our focus over the next five years is to connect the African continent by offering the best product and services,” she continues. “We will
advertorial also continue our investment programme which started 10 years ago. Our company is also ensuring that we ‘give back’ to the local communities where we operate, especially through the education of children and training and development of the indigenous workforce.” “The company’s operational excellence, strong relationships with both original equipment manufacturers (OEMs) and customers, limited competition, and a large share of value-added and logistics services (such as customisation, procurement and fulfilment) result in top-ofthe-industry margins and strong profitability,” comments David Morris,
Chief Commercial Officer. “As a result of Allied’s market leadership and unique position in the fast-growing African telecoms market, the company is expected to continue to grow strongly, outperforming its international peers in terms of profitability and growth.” Guided by its founders, Allied has a strong and experienced management team, with a highly entrepreneurial and success oriented culture. Over the last few years, the company’s founders have focused on emphasising clear accountability across the organisation and pushing key customer relationships to the operational level. The growth of GDP levels across Africa and resulting increase in disposable income, combined with an expanding population and higher mobile penetration rates, have led to increasing demand for mobile devices. In addition, the market is benefiting from consumers trading up from older handsets to newer and increasingly sophisticated models, such as smartphones. The mobile telecommunications devices market in South Africa has shown remarkable growth in the last five years (2006 to 2010), with close to 55 million handsets sold throughout the period and sales growing at 13.7 per cent per annum. Other African markets in which Allied has already established its presence, such as Zambia, Namibia and Mozambique to name a few, showed even higher growth rates of above 20 per cent annually. The company has sales agents in many Sub-Saharan countries, including Angola, Botswana, Uganda, Lesotho, Malawi, Swaziland, Tanzania and Zimbabwe, which gives it the opportunity to expand its footprint rapidly. This growth is expected to continue in the near future, with international experts expecting over 22 million handsets to be sold in South Africa in 2012 (an 18 per cent increase on 2011) and other markets addressable by Allied growing at 20 to 40 per cent per annum or even above 40 per cent, as in the case of Madagascar, DRC and Angola. In addition to their importance as a means of communications in a continent where mobile networks are the key communications infrastructure, mobile handsets are the number one aspirational product and a status symbol in Africa, with customers willing to spend a significant share of their income on them. As in more developed markets, a key trend in the African mobile handset market has been the growing popularity and availability of smartphones. With such devices generating higher margins than basic handsets for Allied, the expected increase in smartphone sales will have a positive impact on the revenues and profitability of the company. Since Africa has relatively low internet penetration rates and low sales of PCs and laptops, attractive and affordable smartphones, netbooks and tablets are the tools that could provide fast connectivity to the internet to the broad population. After growing at a world-leading average annual real growth rate of over five per cent between 2002 and 2010 and weathering the global downturn better than the rest of the world, SubSaharan Africa is projected to grow in real terms by 5.3 per cent and 5.1 per cent in 2011 and 2012, respectively—faster than virtually any other market. Africa is widely expected to play an increasingly important role in the global economy, with the increasing size and attractiveness of its labour force. According to the global consulting firm McKinsey, Africa’s
rate of return on foreign investment across various sectors is higher than in any other developing region. This extraordinary growth has coupled with other crucial structural changes that have positioned the region for strong and sustainable future growth and enhanced its political and macroeconomic stability, such as strengthened political commitment to private sector growth, increased investment in infrastructure and education, trade liberalisation, increased fiscal soundness and monetary discipline and reduced debt levels resulting in improving sovereign credit ratings. The region is continuing its reforms towards a more investor / business friendly environment in order to increase integration with the global economy. Further, gradual development of common monetary areas and trade agreements between countries with close geographic proximity has also stimulated broader economic growth in the region. “Allied has positioned itself across the region to benefit from this growth opportunity. Overall, the company’s addressable market comprises 26 countries with a population of over 550 million, which are expected to grow their economies at eight per cent per annum through 2015,” says Cole Courtney. Africa has also attracted a significant amount of infrastructure investments amounting to $45 billion a year and absorbing more than five per cent of total GDP. In particular, as the telecommunications sector has been an important driver of Africa’s economic growth in the last years, investments in (mostly mobile) telecommunications infrastructure have been growing significantly, with a 33 per cent CAGR between 2003 and 2008. Allied has demonstrated strongly that it is perfectly positioned and equipped to take full advantage of this growth.
Samsung Galaxy Note 10.1 Rating: hhhh Price: R 8 499 Features: • • • • • •
10.1” WXGA (1280×800) Exynos Quad-core 1.4 GHz Processor 2Gb RAM, 32Gb Internal Storage with MicroSD up to 64Gb 5MP rear camera, 1.9MP front-facing Android 4.03 (Ice Cream Sandwich) 7 000mAh batteryn
Can any Android tablet give the iPad a run for its money? Well, the Note 10.1 has certainly got game. The S-Pen stylus writing interface, expandable memory, quality 5.2 megapixel (rear) and 1.9 megapixel (front) cameras, and superfast quad-core processor makes it a worthy successor to the first “Note” (the 5.3” smartphone). Stylus, you say? Isn’t this all rather retro for 2012? Sure, but the supersensitive S-Pen can “feel” up to 1024 pressure variances, plus true multitasking has come to a tablet with the ability to browse the web while having your mail open on the same screen, and doing this while watching a movie on a small pop-out screen. Translation? Perfect for amateur artists, students scribbling research notes, or professionals wanting to power up their presentations with a personal textual touch with some of the custom-built apps. The Mali-400MP graphics processor makes tablet gaming a pleasure, rendering intense graphics pretty seamlessly. Add into the mix powerful stereo-mounted front-facing speakers on either side of the screen, and movies, music and games start to make sense. On the downside, Samsung is still sticking to its proprietary charger rather than a Micro USB. The screen’s 1280 x 800 pixel resolution is underwhelming, and HD junkies are going to be hankering for an HDMI port too. Still, you can shoot up to 2560 x 1920 HD still pictures, or record 30fps video at full 720p HD resolution.
18 AFRICA TELECOMS Issue 26
JBL OnBeat Xtreme Rating: hhhh Price: R 7 694 Features: • • • •
Bluetooth wireless music streaming with JBL Ridge tweeters Atlas woofers Docks iOS devices Rotates iPad, iPod and iPhone devices
JBL has been synonymous with quality speakers for years, and this little dock is no exception. “OnBeat Xtreme” is no sales pitch – the sonic output is impressive. Bang out Felix Laband’s electro classic “Donkey Rattle” or Professor’s kwaito anthem “Jezebel”. You will literally feel the bass inside your head with little distortion and crystal-clear upperend clarity.
gadgets
Microsoft Windows 8 Rating: hhhh Price: R 700 Features: • • • •
Natively cloud-connected Built-in 3G and 4G support Reimagined new start screen is smooth and intuitive Instant access to your people and apps
Windows 8 is a huge step in the right direction for Microsoft. With a complete redesign of its OS, 8 brings a slick new “tile” approach first seen on its mobile operating system Windows Phone 7 (WP7). Once manufacturers start to use this in smartphones and tablets, the multi-screen offering and syncing across devices will certainly give the OS impetus to become more than just a novelty for users.
Nokia Lumia 900 Rating: hhhh Price: R 7 999 Features: • 1.4GHz single-core Qualcomm Snapdragon Processor • 4.3” WVGA AMOLED capacitive touch ClearBlack display • 512MB RAM 8MP camera with a Carl Zeiss lens The best Windows Phone (WP7.5) on the market by a country mile. The 4.3” in ClearBlack display performs superbly in direct sunlight, unlike any other device available. The phone is sync’d to Microsoft Exchange Server for mail and with access to Word, Excel and PowerPoint it’s a compelling device for the corporate environment. It’s a dream with access to Nokia Music, enabling you to listen to your favourites – whether that’s Fokofpolisiekar, Shadowclub or Oom Steve Hofmeyr – for free (you just pay for the data) with an option to buy tracks for R8 each. The 14 million tracks in the Nokia catalogue include a wide range of South African and African artists, making this is a favourite because of the support it gives to local musos. In addition, the People Hub has to be the best social-media offering on the market, integrating all the social profiles of your contacts under each of their names, making viewing streams easy and accessible in one location. The device has a quality feel, which comes with Nokia’s signature reliability and backup.
Issue 26 AFRICA TELECOMS 19
WD My Passport Studio 2TB Rating: hhhh.5 Price: R 2 499 Features:
• FireWire 800 and USB 2.0 • All-aluminium build • Time Machine compatible This is a drive designed for Mac users, but with simple formatting it can be used on a PC. This sexy device with brush aluminium finish is about as good as portable storage gets. FireWire 800 gives a reported 800Mb/s transfer; it’s certainly faster than even using the latest USB 3.0 devices. With a staggering 2TB storage without additional power cables, this is a must-have for the gadget gurus.
Motorola Xoom 2 Rating: hhh.5 Price: R 6 500 Features: • • • • • •
HD-IPS LCD capacitive touchscreen 16M colours 1.2 GHz dual-core processor 5MP rear camera, 1.3MP front facing Android 3.2 (Honeycomb) Splash-guard coating
Comparing the Xoom 2 to the original Xoom is like comparing the great Bob Dylan to Justin Bieber – they are simply worlds apart. The latest version is slick and precise and the build quality feels far superior. Although the Xoom 2’s Ice Cream Sandwich upgrade has not been made available in South Africa yet, when it is, this device will hold its own in a market overdosing on a plethora of tablets. While it is still running the quite dated-feeling Honeycomb OS, it remains a quality device with the dual-core processor making a huge difference. Motorola’s decision to go for a slightly different design aesthetic from most of its competitors - have a look at those sculpted corners - means it also feels great in your hand. There will definitely be no patent cases for this device looking like an iPad. The 7, 000mAh battery should be sufficient for most users, with CNET in Australia reporting 5.5hrs of 720p video playback before the battery died under a stress test, which is a massive improvement on its predecessor. On the downside, while browsing, the pinch to zoom functionality is sometimes clunky and the slow scroll speeds are not ideal. Overall, this is a solid contender and certainly worth considering if you are in the market for an Android tablet. The nifty splash-guard coating also keeps it safe from your morning coffee or your evening beer while you catch up on the news.
20 AFRICA TELECOMS Issue 26
gadgets
Supertooth HD Rating: hhh Price: R 999 features: • Bluetooth 3.0 technology • Dual microphones • Voice recognition; use your voice to make calls directly from the kit Hands-free kits are a legal necessity, but that doesn’t mean they need to be boring. The HD has dual mics for noise cancellation, syncs seamlessly via Bluetooth to up to eight devices and has two concurrent connections. It also reads the names of contacts when they call and with a complex Web-based procedure you can dictate text messages and/or e-mails. With up to 1 000 hours of stand-by time, it keeps you connected.
Logitech Boombox Rating: hhhh Price: R 1 999 Features: • • • • • •
Wireless audio: Bluetooth (A2DP) 2 x 3” laser-tuned neodymium drivers 2 x ½” neodymium tweeters 4 x 2” passive radiators Rechargeable battery Nickel-metal hydride
For their size, these speakers are pretty sensational. Boasting deep bass tones, crystalclear high notes with five-point sound and six hours of battery life, the Boombox is a veritable portable party starter. Whether you’re pimping your hip-hop house party or chilling out to Farryl Purkiss’ surf strums on a beach towel, Bluetooth connectivity to a phone, tablet or iPod means you’re ready to rock!
Issue 26 AFRICA TELECOMS 21
SanDisk Extreme USB 3.0 16GB Rating: hhh Price: R 285 features: • Exceptional file transfer speeds up to 190MB/s • Password protection with SanDisk® SecureAccess™ Software • Includes 2GB of online backup via YuuWaa cloud storage USB storage technology is growing in leaps and bounds, evolving as quickly as the rest of the consumer electronics field. USB 3.0 takes storage to the next level with far superior transfer rates. SanDisk again come to the party with this little USB device, giving you 16Gb of storage and cloud storage of up to 2GB free.
Uniross Power Pod Rating: hh.5 Price: R 399 Features:
• Ten interchangeable tips • Charging available for up to 3 000 different devices • Two USB power ports This innovative multipoint charger has four docking points and two USB power points on the side, making it possible to charge six devices at once. Digital camera, mobile phone, tablet or GPS unit – they can all be charged. Plus, 10 interchangeable tips means you can charge up to 3 000 different types of devices. Say goodbye to that mass of tangled cables.
Huawei U8860 Honor Rating: hhh Price: R 2 399 Features:
• Android Gingerbread 2.3.5 OS • 1.4 GHz processor • 4.0-inch true colour FWVGA capacitive touch screen The Chinese have the technology to build any smartphone, and on paper the Honor looks great. At the price, the spec sheet is impressive: 8MP rear-facing camera; 2MP frontfacing camera; HD video recording; and 1.4GHz processor should say it all. Pity then, that Huawei’s flagship just doesn’t have the X-factor of other similarly-priced Android devices.
22 AFRICA TELECOMS Issue 26
This month’s statistics focuses on Mobile Technologies 5 Largest African 3G Markets Q2 2012
5 Largest African WiMAX Markets Q2 2012
35 000 000
140 000
Subscribers
Source: Telegeography
Subscribers
Source: Telegeography
0
0 Egypt
South Africa
Kenya
Nigeria
Morocco
Cote d’Ivoire South Africa
Algeria
Namibia
5 Largest African Markets, 3G vs Fixed Broadband Subscribers
35 000 000
Source: Telegeography
Subscribers
3G Fixed Broadband
0 Egypt 24 AFRICA TELECOMS Issue 26
South Africa
Kenya
Morocco
Nigeria
Kenya
Statistics
Global Mobile Roaming Revenue ($bn) Split by Segments, 2017 - $ 80 Billion
Voice SMS Fixed Broadband
Source: Juniper Research
Africa 3G vs WiMax Subscribers, Q2 2008 - Q2 2012 Source: Telegeography
70 000 000
Subscribers
3G Fixed Broadband
0 Q2 2008
Q2 2009
Q2 2010
Q2 2011
Q2 2012 Issue 26 AFRICA TELECOMS 25
26 AFRICA TELECOMS Issue 26
thought leadership
the Rule of Thirds Alan Knott-Craig and
by Steven Ambrose
Issue 26 AFRICA TELECOMS 27
If Alan Knott-Craig, CEO of Cell C, has his way, the “rule of thirds” governing all great art would also hold sway in the world of mobile operators in South Africa. The “rule of thirds” holds that there are three imaginary lines along which subjects in art are composed – whether in photography, painting or sculpture – that render them most pleasing to the eye. Similarly, Knott-Craig believes that there should ideally be three mobile operators doing business in South Africa: just one is a problem, two would be far better and three may well be the magic number most pleasing – and beneficial – to the consumer. Clarity and a calm assurance are the overriding impressions left after a conversation with the experienced Knott-Craig, who says his mission is for Cell C to grow rapidly and take its place as an equal player alongside current incumbents Vodacom and MTN. This he plans to achieve in the next three to five years. Knott-Craig’s three-year hiatus from Vodacom has allowed a level of focus that may well result in a shake-up of telecommunications in southern Africa going forward. The opportunity to be the mobile David conquering the two-headed Goliath of the mobile industry in South Africa appears to be massively energising for him. Energy harnessed with his depth of technical and operational experience, spiced up with clear thinking and a grasp of what needs to change at Cell C may well lead to the emergence of the “next big thing” in mobile in South Africa.
The uncomfortable disruptor? Knott-Craig is uncomfortable with the “disruptor” label. Asked to describe his role, he said he felt he was simply doing what was best for Cell C and that that would, in turn, influence the industry as a whole. His key focus areas are competitiveness, cooperation and efficiency, and he believes firmly that if these values succeed at Cell C, the impact would ripple across the entire mobile sector. “You can’t achieve scale if there are too many players in the market,” he quipped when asked about consolidation in the industry. In his estimation, the process of driving down prices and the scale of the company doing so are inextricably linked. Driving down prices was one of his first “disruptions” to the cosy mobile industry he orchestrated shortly after taking over the reins at Cell C. This is but one tactic in his master plan to capture 33% market share. Moreover, Knott-Craig maintains that price will be a key driver in his first imperative of competitiveness. He firmly believes that Cell C’s current pricing strategies are sustainable, and though many call them “price wars” and warn that they may have to end soon, he believes this is just the beginning, and with declining Mobile Termination Rates (MTRs) - down from R1,25 at their peak to R0,40c foresees more reductions in the years ahead. The current “price wars” are not short-term battles, he says, but, in fact, a major correction in pricing strategies that were way past their sell-by date. Cell C also currently enjoys asymmetric MTR rates and 28 AFRICA TELECOMS Issue 26
thought leadership days of super-profits where South African operators were among the top 10 profit-earners globally. After only a short period of disruption, South African operators have now fallen below the top 100 earners, and would fall further – and much further, if KnottCraig and Cell C have their way. The business models based on the traditional “cosy” arrangement, which Knott-Craig unapologetically agreed was due in no small part to his stewardship of Vodacom for much of the 2000s, are well and truly a thing of the past. The paradigm going forward would be that of innovative pricing models, proliferation of niche services and far greater customer focus. The current market-share leaders in mobile in South Africa would have no choice but to change their business models to realign with this new reality – and that is good news for South Africa’s consumers.
can charge the major operators more than they pay for termination.
Long Term Evolution (LTE) will dominate data The race to launch LTE currently unfolding in South Africa will create frustration and confusion for many, according to KnottCraig. He maintains that operators wishing to partake in the promised land of massively fast LTE networks need to heed one critical success factor: co-operation, as the current fragmentation of frequencies and spectrum availability will not allow the growth required for critical mass. The costs of each operator going it alone are simply far too high, and for the consumer to truly benefit, the costs of high-speed LTE data would need to fall significantly, though this would be limited by the costs of rolling out four competing networks. The current LTE networks currently trialling or being launched are deploying on spectrum that is not ideal and mostly insufficient. Then there is also the problem of user-device compatibility. KnottCraig says that 99% of current phones available on the market are not compatible with any LTE network, and while there are some data dongles that work, there would be a “very low level” of interoperability for most of these. The result would be confusion and disappointment for many users, though a privileged few would have “a great experience”. He doesn’t see this situation changing until broadcast regulator ICASA allocates spectrum properly, neither that Cell C would waste its resources chasing LTE commercially, until the spectrum issues are properly resolved.
The good times for mobile are over
‘‘
‘‘
These “good times” are now firmly over, and the new reality, where the third and fourth operators played their intended role of driving prices down, would now introduce a new era for mobile communication
Consolidation mergers and acquisitions While not commenting directly on recent talk about a merger between Cell C and 8ta, the third and fourth operators respectively in South Africa, Knott-Craig does believe that there will inevitably be some consolidation in the near future, but that consolidation will be on the infrastructure level and not the retail customerfacing level. He was insistent on one matter though – the urgent need for a wholesale operator to hold and manage the critical spectrum needed for the roll-out of a national LTE high-speed broadband network. He is convinced that a consortium of at least the four main mobile operators, along with many other key players, would emerge to manage and run a national LTE wholesale network. The main benefit of this would be massive cost savings in the creation of one network, rather than four. In addition, it would also solve the dilemma that government currently has in awarding the relevant chunks of critical LTE-capable spectrum. The creation of a consortium to hold and manage this spectrum, access to which would be sold on a wholesale basis, would allow the involvement of as many players in the market as possible, and not limit spectrum access to the top players only. At the same time, this wholesale provider with a diverse and, most importantly, politically-correct ownership structure, would result in an explosion of providers at the retail level. The tenets of open access and low managed costs would allow the mobile industry to diversify and expand nationally and regionally in ways most could not even imagine.
Knott-Craig defended the pricing policies of Vodacom and MTN in the early years of mobile; both operators had to roll out a massive, countrywide network that comprehensively covered South Africa. In addition, in these early days, banks were not rushing to offer financing. The mobile industry had grown exponentially in the 1990s and early 2000s and had become veritable moneymaking machines. These “good times” are now firmly over, and the new reality, where the third and fourth operators played their intended role of driving prices down, would now introduce a new era for mobile communication – that of the lean, agile and, most importantly, co-operative operator. He maintains that the good times for mobile operators ended globally around 2005, thoughfor South Africa that happened only in late 2011. Part of the change was due to ICASA finally cutting termination rates, and the decisive push was Cell C’s aggressive pricing that came into effect in early 2012. The implications for the industry are fundamental – gone are the
More providers of broadband coming soon Voice and data are quite different business models, but data needed far higher levels of servicing than voice. The average consumer needed far more intensive technical advice when, for example, their laptop or tablet connects to the network, than assisting a customer with only “voice” concerns. This need would lead to differing service offerings from many diverse providers with competencies in each specific area. The existing providers of voice services would, simultaneously, continue to do what they do best – supply and service voice on their networks. This was not to say mobile operators would not remain data providers, but simply that Issue 26 AFRICA TELECOMS 29
opportunities for added value services and providers would make good business sense. Mobile operators were essentially fixed-network operators who still needed to offer a reliable and high-quality connection at competitive prices between people or devices. Many called this the dreaded “dumb pipe” service, but Knott-Craig is adamant that this term is misleading, as there was nothing “dumb” in offering this type of service. Mobile operators should focus on being the best possible connectors of people and devices, and largely leave other services to those “over the top” operators specialising in services that run on top of superefficient networks. In this way, each maximises their return on investment while the customer scored on getting the best service at the lowest cost.
No one wants to be a “dumb pipe” Knott-Craig says that no mobile operator wanted to be seen in the same light as old-fashioned, wire-bound fixed operators; they all wanted to be part of the “sexy” new world of mobile communication. The reality was that the vast majority of the sexy new mobile operator networks were identical to that of the old-fashioned fixed networks, except that in many cases fibre and microwave links have replaced copper wires. Only the last mile, or the final connection, to the users’ devices, are, in fact, wireless. The skills required operating the network and the basic nature of the networks have not essentially changed. The wired operators connected people from point A to point B using copper cables, and mobile operators did exactly the same thing, though using only wireless for the last mile. Being a “dumb pipe” was good for business; mobile operators should not be scared off, and neither should they try to get too involved with the actual process of communication as users did not want their connectivity provider intervening directly with their communication in any way. The connection, though, needed to be of high quality, secure and seamless. Furthermore, mobile operators should revel in their role as network providers, as this was their core competency, and has proved to be profitable to date. Knott-Craig pointed out that services that engaged or involved consumers over and above this connection were not really the primary domain of mobile networks. His goal was to turn Cell C into a superior network operator, clear in the
‘‘
‘‘
Knott-Craig pointed out that services that engaged or involved consumers over and above this connection were not really the primary domain of mobile networks.
30 AFRICA TELECOMS Issue 26
thought leadership understanding that the majority of the network was fixed and that the wireless component merely made mobility possible; ever the top operators should provide the other services capable of running over the network.
Consumer behaviour must change The Cell C chief became almost evangelical when discussing customer behaviour, saying that, while most consumers realised there was no such thing as a free phone, they still signed contracts, and left stores with “shiny, new phones” all the time. Changing this behaviour would be hard, and may only fully occur once a new generation of mobile consumers emerged. He freely admitted that current behaviour was a direct result of his and the industry’s conditioning over the past 18 years, that these practices were detrimental to his company’s continued growth of Cell C and needed to change in time. Still, he is committed to pushing on with his strategy of simplifying and clarifying the role of the phone in the cellular contract buying process. The latest offerings from Cell C have highlighted simplicity and flexibility, along with a clear indication of how much the actual mobile device would cost the customer. These initiatives would continue in order to offer greater clarity and simplicity to customers, along with greater choice and flexibility, at lower overall cost. The benefit for Cell C would be greater penetration in the critical contract market, and enhanced market-share overall. The challenges of behaviourchange did not stop with the consumer, however; there are even larger challenges in retraining the distribution channel in order to ensure that customers received the correct advice.
Times are still changing Knott-Craig does not shy away from the challenges facing Cell C. His main task when he started at Cell C was the need to stabilise and dramatically improve the quality of the network expansion that his predecessor, Lars Reichelt, had initiated. The introduction of a 3G-based data network, and the speedy and large-scale national rollout, had resulted in technical challenges that needed rapid correction. While the project is still ongoing, Knott-Craig points to major strides, and says the team he works with are dealing with the challenges admirably. The current Cell C network is maturing quickly and becoming far more effective at meeting the needs of its current users, and the data and voice network would soon have the resilience and capacity to cope with the massive growth planned in the coming years. Balance coupled with reasonable profits are his ultimate goals, said Knott-Craig; his vision for the company and for the mobile industry at large is one of sustainable growth and innovation, along with technical excellence. He and his team may well drive the mobile operators’ agenda in South Africa over the next few years if they apply themselves with confidence, ability and a touch of daring – qualities that have produced great art throughout the ages. AT
Issue 26 AFRICA TELECOMS 31
32 AFRICA TELECOMS Issue 26
Gartner Identifies the
Top 10
by david w leorley vp of gartner
Strategic Technology Trends for 2013 Gartner defines a strategic technology as one with the potential for significant impact on the business in the next three years. Factors that denote significant impact include a high potential for disruption to IT or the business, the need for a major dollar investment, or the risk of being late to adopt. A strategic technology may be an existing technology that has matured and/or become suitable for a wider range of uses. It may also be an emerging technology that offers an opportunity for strategic business advantage for early adopters or with potential for significant market disruption in the next five years. These technologies impact the organisation’s long-term plans, programmes and initiatives. “We have identified the top 10 technologies that will be strategic
for most organisations, and that IT leaders should factor into their strategic planning processes over the next two years,” said David Cearley, vice president and Gartner Fellow. “This does not necessarily mean organisations should adopt and invest in all of the listed technologies; however companies need to be making deliberate decisions about how they fit with their expected needs in the near future.” Mr Cearley said that these technologies are emerging amidst a nexus of converging forces - social, mobile, cloud and information. Although these forces are innovative and disruptive on their own, together they are revolutionising business and society, disrupting old business models and creating new leaders. As such, the Nexus of Forces is the basis of the technology platform of the future. Issue 26 AFRICA TELECOMS 33
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Mobile Device Battles
Mobile Applications and HTML5
Gartner predicts that by 2013 mobile phones will overtake PCs as the most common web access device worldwide and that by 2015 over 80 per cent of the handsets sold in mature markets will be smartphones. However, only 20 per cent of those handsets are likely to be Windows phones. By 2015, media tablet shipments will reach around 50 per cent of laptop shipments and Windows 8 will likely be in third place behind Google’s Android and Apple iOS operating systems. Windows 8 is Microsoft’s big bet and Windows 8 platform styles should be evaluated to get a better idea of how they might perform in real-world environments as well as how users will respond. Consumerisation will mean organisations won’t be able to force users to give up their iPads or prevent the use of Windows 8 to the extent consumers adopt consumer-targeted Windows 8 devices. Businesses will need to support a greater variety of form factors, reducing the ability to standardise PC and tablet hardware. The implications for IT is that the era of PC dominance with Windows as the single platform will be replaced with a post-PC era where Windows is just one of a variety of environments IT will need to support.
The market for tools to create consumer and enterprise facing apps is complex with well over 100 potential tools vendors. Currently, Gartner separates mobile development tools into several categories. For the next few years, no single tool will be optimal for all types of mobile application so expect to employ several. Six mobile architectures – native, special, hybrid, HTML 5, Message and No Client will remain popular. However, there will be a long term shift away from native apps to web apps as HTML5 becomes more capable. Nevertheless, native apps won’t disappear, and will always offer the best user experiences and most sophisticated features. Developers will also need to develop new design skills to deliver touch-optimised mobile applications that operate across a range of devices in a coordinated fashion.
Hybrid IT and Cloud Computing
03 34 AFRICA TELECOMS Issue 26
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The implications for IT is that the era of PC dominance with Windows as the single platform will be replaced with a post-PC era where Windows is just one of a variety of environments IT will need to support.
As staffs have been asked to do more with less, IT departments must play multiple roles in coordinating IT-related activities, and cloud computing is now pushing that change to another level. A recently conducted Gartner IT services survey revealed that the internal cloud services brokerage (CSB) role is emerging as IT organisations realise that they have a responsibility to help improve the provisioning and consumption of inherently distributed, heterogeneous and often complex cloud services for their internal users and external business partners. The internal CSB role represents a means for the IT organisation to retain and build influence inside its organisation and to become a value centre in the face of challenging new requirements relating to increasing adoption of cloud as an approach to IT consumption.
Enterprise App Stores Organisations face a complex app store future as some vendors will limit their stores to specific devices and types of apps forcing the business to deal with multiple stores, multiple payment processes and multiple sets of licensing terms. By 2014, Gartner said that many organisations will deliver mobile applications to workers through private application stores. With enterprise app stores the role of IT shifts from that of a centralised planner to a market manager providing governance and brokerage services to users and potentially an ecosystem to support apptrepreneurs.
04 In Memory Computing In memory computing (IMC) can also provide transformational opportunities. The execution of certain-types of hours-long batch processes can be squeezed into minutes or even seconds allowing these processes to be provided in the form of real-time or near real-time services that can be delivered to internal or external users in the form of cloud services. Millions of events can be scanned in a matter of a few tens of millisecond to detect correlations and patterns pointing at emerging opportunities and threats “as things happen.” The possibility of concurrently running transactional and analytical applications against the same dataset opens unexplored possibilities for business innovation. Numerous vendors will deliver in-memory-based solutions over the next two years driving this approach into mainstream use.
05
Actionable Analytics
06
Analytics is increasingly delivered to users at the point of action and in context. With the improvement of performance and costs, IT leaders can afford to perform analytics and simulation for every action taken in the business. The mobile client linked to cloud-based analytic engines and big data repositories potentially enables use of optimisation and simulation everywhere and every time. This new step provides simulation, prediction, optimisation and other analytics, to empower even more decision flexibility at the time and place of every business process action.
Strategic Big Data Big Data is moving from a focus on individual projects to an influence on enterprises’ strategic information architecture. Dealing with data volume, variety, velocity and complexity is forcing changes to many traditional approaches. This realisation is leading organisations to abandon the concept of a single enterprise data warehouse containing all information needed for decisions. Instead they are moving towards multiple systems, including content management, data warehouses, data marts and specialised file systems tied together with data services and metadata, which will become the “logical” enterprise data warehouse.
07 Issue 26 AFRICA TELECOMS 35
08
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The Internet of Things
Personal Cloud
The Internet of Things (IoT) is a concept that describes how the internet will expand as physical items such as consumer devices and physical assets are connected to the internet. Key elements of the IoT which are being embedded in a variety of mobile devices include embedded sensors, image recognition technologies and NFC payment. As a result, mobile no longer refers only to use of cellular handsets or tablets. Cellular technology is being embedded in many new types of devices including pharmaceutical containers and automobiles. Smartphones and other intelligent devices don’t just use the cellular network, they communicate via NFC, Bluetooth, LE and Wi-Fi to a wide range of devices and peripherals, such as wristwatch displays, healthcare sensors, smart posters, and home entertainment systems. The IoT will enable a wide range of new applications and services while raising many new challenges.
The personal cloud will gradually replace the PC as the location where individuals keep their personal content, access their services and personal preferences and centre their digital lives. It will be the glue that connects the web of devices they choose to use during different aspects of their daily lives. The personal cloud will entail the unique collection of services, web destinations and connectivity that will become the home of their computing and communication activities. Users will see it as a portable, always-available place where they go for all their digital needs. In this world no one platform, form factor, technology or vendor will dominate and managed diversity and mobile device management will be an imperative. The personal cloud shifts the focus from the client device to cloud-based services delivered across devices.
Integrated Ecosystems
10 36 AFRICA TELECOMS Issue 26
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Driving this trend is the user desire for lower cost, simplicity, and more assured security. Driving the trend for vendors the ability to have more control of the solution stack and obtain greater margin in the sale
The market is undergoing a shift to more integrated systems and ecosystems and away from loosely coupled heterogeneous approaches. Driving this trend is the user desire for lower cost, simplicity, and more assured security. Driving the trend for vendors the ability to have more control of the solution stack and obtain greater margin in the sale as well as offer a complete solution stack in a controlled environment, but without the need to provide any actual hardware. The trend is manifested in three levels. Appliances combine hardware and software and software and services are packaged to address and infrastructure or application workload. Cloud-based marketplaces and brokerages facilitate purchase, consumption and/ or use of capabilities from multiple vendors and may provide a foundation for ISV development and application runtime. In the mobile world, vendors including Apple, Google and Microsoft drive varying degrees of control across and end-to-end ecosystem extending the client through the apps. AT
Yann Chevalier CEO, Intersec
The ‘Power of One’: Increasing customer loyalty with real-time, targeted offers
38 AFRICA TELECOMS Issue 26
opinion piece The mobile market is an increasingly competitive environment and the rise of new entrants such as OTT players is changing the rules of the game by bypassing the operators and striking up direct relationships with subscribers. With high smartphone penetration rates and 3G service consumption, an established trend in mature mobile markets and operators in emerging markets facing the issue of highmarket volatility and price wars, operators are under considerable pressure to find new and innovative ways to engage with customers, ensure ROI and reduce churn. They need to find new ways to increase the value of their customer base by offering highly personalised and targeted offers, in real-time, based on subscribers’ actual behaviour. Harnessing these behaviour patterns to create tailored marketing propositions is a powerful way in which mobile operators can dramatically improve their customer loyalty and engagement and strengthen their relationship with subscribers through customer knowledge enrichment. Today, Customer Base Management solutions exist that can effectively fulfil this function and such technology is already installed in many emerging market countries by Tier One operators. The technology has proven particularly effective in targeting the prepaid-user community, where operators hold scant information, enabling them to make timely offers to encourage top-ups and gain greater loyalty from subscribers switching between multiple SIMs. In these highly competitive emerging markets, this type of technology has been proven to increase Average Revenue Per User (ARPU) by 5 to 9% per annum. Here, I examine the merits of the latest Customer Base Management Solutions and share examples of how operators have deployed them to best effect.
Defining a Customer Base Management Solution Frequently confused with Customer Relationship Management (CRM), a Customer Base Management Solution (CBM) is an end-to-end solution that provides marketing teams with comprehensive information to analyse and
segment users based on their behaviour, and to create tailored campaigns to meet the individual’s specific needs in real-time. The aim of these solutions is to deliver highly-targeted campaigns to reduce churn, engender loyalty and improve customer experience. Traditional CRM solutions are not capable of processing the high volume of event-based information that an operator generates through the day-to-day activities of its consumer base, including all Call Data Records (CDRs). Instead, they focus on providing in-depth analysis of smaller volumes of data. In a world obsessed with Big Data, nowhere is the thirst for insightful customer information more sought after than in the telcom sector, and operators equipped with a CBM solution avoid facing risky decision-making based on assumptions or unrelated data. Customer Base Management solutions sit in the network core collecting meta-data about all network events concerning the type and pattern of usage of both voice and data traffic and building up a valuable profile of the individual, their preferences, habits and lifestyles. The CBM is also integrated into the organisation’s billing, Intelligent Network, Data Warehousing and CRM systems, offering three key advantages: customer knowledge, contextual data to ensure optimal timing, and targeting - all of which help to arrive at the age-old marketing mantra of “providing the right products, to the right people at the right time”. Real-time reporting is vital to increasing an operator’s reactivity and identifying new consumption patterns rapidly, ahead of competitors.
Making an impact in emerging markets While the mobile device is currently no longer seen as a luxury item, but is widely viewed as a commodity, and mobile penetration is approaching or even exceeding 100%, the emphasis for all operators, even in emerging countries, has long since moved from customer acquisition to focus on increasing customer usage and loyalty and reducing churn. To this end, CBMs have been used very effectively in the prepaid environment where aggressive price-wars have served simply to cut operator margins and the
Holy Grail has long since moved from price-cutting to delivering extra value. One of the main challenges operators face in these markets is the lack of accurate and reliable subscriber consumption data, limiting considerably their effectiveness in implementing an effective customer loyalty programme. In one such situation in Africa, the Intersec Loyalty Management Suite proved particularly effective for Tier One operators who wanted to increase usage of their service in a market typified by users with two or more SIM cards who alternated between operators to use the same operator as their friend or family member in order to reduce call charges. To counter this tendency, the operator offered incentives based on the number of calls received to encourage them to keep their SIM in the phone longer. The results of such campaigns have been shown successfully to increase annual ARPU by 5 to 9% per year and decrease churn by between 10 and 20% annually, offering a Return on Investment (ROI) within 3 to 9 months. Nonetheless, the relevance of behaviour-based solutions is not only limited to emerging countries or prepaid environments. Mature markets pose their own set of challenges and the recent trend for “all-you-can-eat” bundles has resulted in the operators losing touch with how consumers are using their services. This lack of visibility has itself created difficulties in knowing the optimal timing to offer incentives such as a handset renewal or a service migration. Top-ups themselves are another service where timing is critical. Being able to identify the normal pattern of top-ups for users and sending a timely reminder just before their credit expires can be useful for consumers. This offers operators an early-warning that someone may be considering changing to another operator, thus prompting a more enticing incentive. There are a number of applications where CBMs have proven to be particularly effective. These include: usage stimulation, inactive account revival, securing “at risk” customers, offer migrations or up-selling and handset renewals. Equally, there are a range of offers that have been proven to be effective in achieving these goals such as: incoming Issue 26 AFRICA TELECOMS 39
opinion piece
In-House vs Off-the-Shelf While the wisdom of deploying Customer Base Management Solutions can offer excellent rewards for operators, it’s worth considering carefully the different approaches to obtaining such a system. Firstly, there is the choice between developing such a solution in-house versus a customisable off-the-shelf alternative, and secondly – when opting for the latter – what criteria should one consider in choosing between the various solutions available on the market. Regarding the choice of custombuilt or off-the-shelf – developing such a sophisticated system from scratch would take years and entail a major investment of both time and money. Outsourcing the task to a company – whose core business is developing such solutions and possesses extensive experience and knowledge in this specialist market area – seems much less risky. But, before going down this route, it would be wise to evaluate the range of customisable solutions available which can be integrated and fully deployed within a three- to four-month timeframe. Operators
40 AFRICA TELECOMS Issue 26
need to ensure that their chosen solution is able effectively to process high volumes of data in order to facilitate real-time offers and ensure it has the ability to quickly analyse trends in usage or competitor activity, and instantly respond with a tailored campaign. Another key requirement is ease of use. A key prerequisite of CBMs is the ability to empower the marketing team to analyse data, create meaningful segments, launch campaigns and evaluate results without needing recourse to the IT department. An intuitive and easy-to-use solution will optimise internal processes, increasing marketing professionals’ autonomy and saving precious resources. Another point worth remembering is to ensure that a chosen solution is able to deal with fixed, mobile and CDMA traffic using multiple channels and multiple screens. These are important factors for operators and explain why it is generally advisable to work with a specialist provider of these solutions as it not only reduces Time to Market (TTM), but the technology is now
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widely recognised and has been specifically developed to address telcom industry demands.
Winning the hearts and minds of customers In examining how understanding and dissecting actual usage patterns and behaviour can allow operators to create highly segmented, personalised offers to individuals or groups of subscribers, we should not forget the consumer’s perspective. In a market where new OTT competitors like Google and Apple are battling with incumbents and new operators for the hearts and minds of the mobile consumer and margins are under attack like never before, the ability to create individually-tailored services based on a customer’s known preferences and behaviour at the optimal time via the channel they most engage, will have an equally favourable impact on the customer experience. Operators around the globe both in the emerging territories and the mature markets - are now truly realising the “Power of One” and opting to deliver tailored propositions to delight and engage their customer base. AT
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call bonuses, opt-ins to gain bonuses, and service subscription incentives where subscribers (who, for example, are using ringtones) may be incentivised to try ringback tones in return for a particular offer.
there is the choice between developing such a solution in-house versus a customisable off-the-shelf alternative
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Scripting the smartphone
evolution in Africa
42 AFRICA TELECOMS Issue 26
by james munn vp sub sahara region qualcomm
In emerging markets across Africa, the affordability of 3G devices is often the barrier to entry for widespread smartphone adoption. Having identified this, Qualcomm believes that backing smartphone development and adoption will drive the evolution of the mobile industry. From its Snapdragon purpose-built chipsets, lowcost reference designs to developing the application ecosystem, Qualcomm is set to bring these three elements together to help operators monetise their 3G network investments.As the representative of one of the main sponsors for the AfricaCom Conference in Cape Town from 1315 November, 2012, Qualcomm’s Vice President of Business Development in Sub Sahara Africa (SSA) James Munn is gearing up to demonstrate the company’s comprehensive suite of capabilities and showcase how these can benefit the 3G value chain. “From devices to the applications ecosystem, what we are trying to say is that pulling it all together can help boost opportunities for operators to monetise their investments in 3G technologies,” says Munn, who is based in Johannesburg. For this strategy to reach fruition, breaking through the smartphone price bands to deliver lower-priced intelligent devices will be the dealmaker. “The beauty of the market is the fact that today, thanks to the powerful Snapdragon family of Qualcomm chipsets coupled with a new selection of very capable lowercost Android smartphones, the available market has opened up exponentially to new opportunities,” said Munn. The message Qualcomm has for the African context is simple - it’s about encouraging operators and reaching out to consumers to ensure they make full use of the new 3G devices now available in price segments only previously covered by GSM devices. In today’s terms, that refers to smartphones at retail prices well below US$100. Issue 26 AFRICA TELECOMS 43
Building the foundation “The starting point for Qualcomm was to use its family of chipsets which range from high level multimode LTE, HSPA+, CDMAcapable chips to the entry-level HSPA+ chips to develop a series of cost-optimised reference designs which partner OEM (original equipment manufacturer) could choose from to develop smartphones with,” Munn says. Time to market is quite evidently a critical factor when aiming for the mid-market and this strategy delivers exactly that advantage. “It becomes even more important when you want to tackle a segment that is dominated by GSM phones. Manufacturers today can take this design and go to market in as little as 60 days compared to six months,” explains Munn. With enough value-added services, local and relevant applications, and a compelling data bundle to complement these services, it should be possible for operators to attract more and more customers onto smartphones and away from basic feature phones in the similar price-segment range.
Content takes the centre stage One of the main propositions for Qualcomm’s end-to-end strategy is to make smartphones user-friendly and to enrich it with localised applications in order to drive adoption and usage. “Monetising 3G in the African context in large part is based on the availability of the right content and applications that can be made available on smartphones. To support these needs, Qualcomm have launched its Qualcomm Developer Network in Africa to assist the local application ecosystem to develop through free access to a number of relevant SDKs,” Munn says. For the Qualcomm team, it’s simply not good enough to have just the low-cost device. For the smartphone to achieve its end-goal it needs to be pre-loaded with relevant African applications developed specifically for the market, based on consumer usage and interest. “In some cases, we need to purposebuild and pre-load specific applications that we know are popular in the African context, which include banking apps, search applications, crowd sourcing, social 44 AFRICA TELECOMS Issue 26
networking, etc,” says Munn. Qualcomm particularly sees great value in being able to cater to the needs of first- and second-time 3G phone-users by investing in the creation and delivery of an end-to-end value proposition. “The end-game is about offering a compelling and unique value proposition and the vehicle to achieve that is content,” Munn emphasises.
Plugging into the ecosystem Qualcomm’s innovation and partnership initiatives are certainly aimed at making devices more efficient in such areas as battery-life, processing-power and graphicsrendering, to name just a few, while ensuring that affordability remains a key priority. More importantly, the focus is on making these devices more useful and enjoyable to the customer. Munn said Qualcomm’s efforts would
push towards integrating affordable smartphones and developer initiatives to create value. “Our vision is to create a phone that can be an end-to-end solution for a consumer, so combining affordable phones with the application developer ecosystem can be extremely powerful. While content plays strong on one side, the other side of the coin is our Qualcomm Developer Network (QdevNet), which allows us to invite any developer in Africa to download SDKs for iOS, Android and Windows phones. The beauty of this initiative is the fact that Qualcomm have made the investments in developing the code for these SDKs in order to make them ready for the developers to start developing from, reducing time to market and lowering the barriers to entry.” In order to expand on this, Qualcomm is extending the plan to reach out to local developer communities through universities, and MoMo (Mobile Monday) the iHubs in South Africa, Nigeria and Kenya, besides collaborating with telecom operators. Enriching this ecosystem by cascading down technologies typically available only on high-end phones is part of this effort. For instance, augmented reality is a key technology that will function on any Snapdragon-enabled smartphone. The QDevNet initiative is also being equipped to deliver Vuforia (Qualcomm’s augmented reality platform) SDKs for Android-based phones. “The idea is to deliver a completely new augmented reality experience by promoting applications built by the local community for the African market,” Munn says. “Overall, the strategy for Qualcomm is built around packaging the phone with the right value at the right price point. When you look at the size of the affordable smartphone segment now accessible thanks to the reference design range of devices in raw volume terms, this represents about 20-30% of the entire market in Africa that is currently using basic GSM phones. This is a huge addressable market opportunity. And when you package the phone with the right value and the package, you will get exponential growth in data consumption, which, in turn, will start to contribute towards the monetising of the 3G network,” Munn says. AT
By Roelof Louw, Cloud Expert at T-Systems in South Africa 46 AFRICA TELECOMS Issue 26
Zero outage computing
in digital clouds The cloud is everywhere. And it is the main topic of discussion at IT conferences and trade shows. Nevertheless, a number of business enterprises are still sceptical when it comes to security and availability requirements in cloud environments. Cloud providers are responding to these worries with the zero outage strategy. The seriousness of the matter became evident during CeBIT in March 2012: Facebook suffered a major outage and was unavailable for hours. Millions of users worldwide could not access the social network due to technical problems. Today mobile applications for smartphones and tablets are also at risk. Outages of this magnitude can be very costly. In 2010 the Aberdeen Group surveyed 125 enterprises worldwide and discovered that outages of just a few minutes per year can cost an average of USD 70,000. Surprisingly, only four percent of the businesses surveyed had guaranteed IT availability of 99.999 percent. This should be unsettling, especially since experts claim that one hour of downtime in production costs some USD 60,000, and for an online shop the figure is USD 100,000. Banks are at the top of the list. They can lose up to USD 2.5 million in one hour of downtime.
Zero outage is only possible in private clouds To win the trust of cloud sceptics despite these kinds of worst case scenarios, external data centre operators are striving to implement consistent management of their IT systems based on a zero outage principle. This includes high availability of services which, according to a definition by the Harvard Research Group, means that systems should be running at an availability level of 99.999 percent – that translates into one outage lasting a maximum of five minutes per year. The only exceptions to the principle of “zero outage computing” are agreements made with customers that govern new releases, updates or migrations. But are such high levels of availability realistic, and if so, how can they be achieved and maintained? Those attempting to provide the perfect cloud must be able to discover errors or failures before they arise – and take every technical step possible to prevent them from occurring. What’s more, the cause of every possible failure must also be carefully analysed. It should be noted that more outages result from software issues rather than problems in the cloud architecture itself. And there are a number of inherent differences – for example, users should not expect zero outages in the public cloud, which by nature is in the public Internet and susceptible to downtime. The trade-off for that are the many services offered at no charge in the public cloud. You can have almost limitless gigabytes of storage capacity without having to pay for it. However, you will have to do without support services.
Multiple security But things are much different in the private cloud: Using their own individually designed end-to-end network solutions, providers can guarantee high availability if their ICT architectures are based on fault resilience and transparency, with integrated failure prevention functions and constant monitoring of operations and network events. What’s more, having intelligent, self-healing software is also essential, enabling automatic rapid recovery in critical situations without any manual intervention so that system users are able to continue working without noticing any kind of interruption. One example of high fault resilience are RAID (Redundant Array of Independent Disks) systems. They automatically mirror identical data in parallel on two or more separated storage media. If one system fails, this has no impact on the availability of the entire Issue 26 AFRICA TELECOMS 47
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Studies indicate that more than 50 percent of all outages are the result of human error. That is why training is being focused on quality management as a basic integral element of company culture
environment – because the mirrored systems continue running without interruption. The user is completely unaware of any issues. In addition, RAID configurations have early warning systems, and most of the incidents that occur are automatically corrected without the need for support from a service engineer. However, the so-called SPoF (single point of failure) is especially critical for the overall IT environment. These SPoFs include individual storage, computing or network elements, installed only once in the system, that can completely shut down operations if they fail. Since mirroring these components is relatively expensive and complex, some IT providers do not install mirrored configurations – and that is extremely risky. But with zero outage this risk must also be eliminated. Zero outage also means safeguarding the data centre against a catastrophic failure through the use of a UPS (Uninterruptible Power Supply). If one application fails, however, there will be a processing gap, for example in the form of lost transactions, no matter how fast operations are shifted to an alternate system. The failed system must be able to automatically take action to fill this gap by repeating all of the processing steps that were skipped at a later time, after the shift to the alternate system.
Data protection is just as important The seriousness of the matter and urgency to mitigate the risk of data loss or leakage is evident in the South African market from the requirements for full disaster recovery and fail-over capabilities in solutions. In many cases organisations look to cloud solution providers for an IT business continuity solution. The solution is, however, not in using cloud services for disaster recovery but to source cloud solutions that have disaster recovery capabilities engineered into the solution. The same awareness and requirement for data protection is seen in the regulatory developments that applicable to sourcing IT services and specific cloud services. The Protection of Personal Information act (POPI) and King III, relevant to the South African market is becoming a major consideration when sourcing IT services and looking for a provider who is compliant with the relevant acts or frameworks. In addition, existing related certification such as ISO 27001 and Sarbanes Oxley (SoX)/ Statement on Auditing Standards 70 (SAS 70) compliance, should be mandatory when considering a cloud service provider who views data protection as critical part of their solution.
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Quality needs dedicated employees Cloud providers must make sure that their employees adhere to the same standards and processes at all locations and even across multiple time zones. Studies indicate that more than 50 percent of all outages are the result of human error. That is why training is being focused on quality management as a basic integral element of company culture. This approach requires a central training plan, globally standardised manuals and comprehensive information provided by top management. Every employee must do everything possible to prevent a potential failure or incident from even happening. And that also means having an understanding of what causes outages. They should act in accordance with the old saying “fire prevention is better than firefighting.” If the worst case should ever occur, employees must not be afraid to admit their mistakes, so that they can avoid making them again in the future. It is also vital to have a centrally organised specialist team that is ready to go into action, finding solutions to problems that arise unexpectedly and implementing these solutions throughout the enterprise. When faced with a serious outage, the shift manager can quickly call the team together to begin the recovery process. Employees working at the affected customer site can follow the action being taken via a communications system. Quality management is an ongoing process ensuring that required knowledge is always systematically updated and expanded. It will never really be possible to guarantee zero outages in cloud processes – not even the best in class can do this – but delivering system availability that goes beyond 99.999 percent can be achieved. Businesses can be sure of this by concluding service level agreements with their service providers. AT 48 AFRICA TELECOMS Issue 26
Introducing the all-in-one mobile processor. Snapdragon™ processors bring together all the best-in-class components a Smartphone needs on a single chip. Because when everything is made to work together, everything works more efficiently. So you can do more. Do it faster.
Š2012 Qualcomm Incorporated. All rights reserved. Qualcomm and Snapdragon are trademarks of Qualcomm Incorporated, registered in the United States and other countries. The Snapdragon logo is a trademark of Qualcomm Incorporated.
Telcoms That Move to Engage Will Reap Benefits
craig holmes communications and industrial sectors executive, ibm mea 50 AFRICA TELECOMS Issue 26
IBM’s Global Telecommunications Consumer Survey highlights the need to address consumer advocacy The telecoms industry is one which, by its very nature, is in a state of constant evolution. Unlike its arguably predictable counterparts of broad-based industries like manufacturing and agriculture, this uniquely challenging sector is known to shift unexpectedly, constantly fluctuating according to technological trends and consumer sentiment. Today, communications service providers (CSP) responsible for delivering the means by which billions around the globe access mobile voice and data services are encountering new challenges more consistently. Fortunately, these obstacles can often be used as platforms for fresh opportunities within the international telecommunications market. The key to harnessing these opportunities is a clear understanding of developing trends. Without keen insight into how customer behaviour is influenced by new technology and expectations, it is virtually impossible for industry players to predict and meet future demand. IBM’s recently conducted Global Telecommunications Consumer Survey is a key source of offering a closer look at emerging developments within this environment. With a response base of over 13 000 customers in 24 countries, this study not only sheds light on potential opportunities to improve CSP service offerings internationally, but also highlights a collection of uniquely South African behaviours and expectations. Amongst these general attitudes, priorities and grievances lie six pertinent influences shaping the future of the industry:
Consumers Will Spend More Most significantly, the survey revealed that more spend is headed for CSPs in emerging markets. Globally, more than one third of all consumers in the emerging markets anticipate that they will spend more on mobile telecommunications in the next two to three years. By contrast, only 14% of respondents in mature markets agreed, with a fair portion indicating that they expected to spend less as the international economic climate worsened. These results held true within the South African market, with the majority of consumers highlighting an expectation of greater spending on mobile telecommunications in the future. Unsurprisingly perhaps, only 4% of locals surveyed suggested that they planned to allocate more funds to fixed-line product offerings. “What is notable is that, despite an overall lack of confidence in local telecommunications solutions providers, South Africans still expect to spend more on these Issue 26 AFRICA TELECOMS 51
services in the coming years,” says Craig Holmes, Executive: Telecommunications and Utilities for IBM Middle East and Africa. “Furthermore, the bulk of this is forecasted to originate from the existing subscriber base, not new customers. This seems to suggest that domestic consumers are typically more brand-loyal to their CSPs than their international counterparts - something CSPs should be considering.”
Emerging Markets will See Bigger Growth The survey suggests that CSPs based in emerging markets would continue to enjoy uninhibited growth within coming years. This is expected to be fuelled by a shift in consumer demand, economic power and innovation in nations such as Brazil, Russia, India, China and South Africa. With an approximate population of 5,7 billion, these nations hold significant potential for continued development within the telecommunications industry. In addition, mobile technology continues to outpace fixed-line services in terms of sheer growth. This trend is particularly notable in emerging markets where the geographical and infrastructure-based challenges related to more traditional services have been overcome through the provision of more favourable alternatives such as 3G, EDGE and GSM networks. Today, mobile subscribers in emerging markets outnumber fixed ones by more than five to one. And in South Africa, 71% of respondents under 25 indicated that their mobile phone is their mostused device when accessing content online. These statistics undoubtedly bode well for CSPs operating in emerging markets across Africa.
But Social Media Poses a Threat Consumers in emerging markets are also interacting online in greater numbers than previously estimated. With social networking at the forefront of this progression, these figures are expected to show persistent growth in coming years. For example, 40% of emerging market consumers with an Internet connection indicated that they access user-generated video daily, versus only 22% in more mature markets. Ninety-five per cent of South Africans under 25 use social media daily as a means to communicate and interact with the external world. This segment has the highest propensity for social media usage locally and globally. These results shed light on a budget conscious, demanding consumer base which would rather interface with family and friends over
52 AFRICA TELECOMS Issue 26
social networking platforms such as Facebook and Twitter to discuss telecommunications services, than liaise directly with their provider. The survey also paints a picture of a sudden, perhaps unexpected, rise in mobile and Internet usage in growth markets – highlighting new opportunities for CSPs to target an increasingly sophisticated and ultimately more desirable consumer. Although these users are embracing new technology at a steady pace, many feel that there is a significant disconnect between their needs and the manner in which providers communicate with the public. In future, telecommunications operators will undoubtedly be required to dedicate further resources to meeting customers on these platforms in order to operate competitively. Says Holmes: “The rise in the popularity of social media channels as a means to more effectively, and regularly communicate is a trend which simply cannot be ignored. Locally-speaking, users are beginning to indicate a strong preference towards these utilities and are, in some cases, using them more frequently than voice- or text-based services. Although many CSPs are still heavily focused on voice services as a means to improve their bottom lines, their customers are tending to favour more innovative options. As a result, it is important that providers begin to engage with users socially while working to better understand the platforms and online behaviours which customers favour.”
Consumers Are Unwilling to Complain Although many consumers negatively perceive network services, most do not choose to engage with their providers on these issues. As part of its study, IBM discovered that a staggering 54% of users globally elect not to file a complaint when disconnected from the network while using voice or mobile broadband services. In the United States, this number is significantly higher at 71%.According to the study, the key reasons underlying this trend are that it is simply too much trouble to contact the call centre (45%) and that complaining would not make a difference (44%).In emerging nations, 30% of consumers indicated that they perceive networks as unreliable and have come to expect service levels to vary. Globally, 77% of customers surveyed confirmed that they tell friends and family about poor experiences with their providers. Furthermore, 81% of all respondents suggested that they would avoid CSPs with whom their family and friends had suffered deficient services levels. This suggests that service providers the world over have some way to go in terms of better connecting with their client base. As consumer expectations and behaviours begin to shift, so should the industry timeously adapt to meet them. Holmes says that, although South African consumers reflect these statistics, they are among the most loyal in the world. “According to IBM, only 14% have switched to another service provider in the past two years. CSPs should be wary of this trend. While it may be good news for their profitability, domestic customers are just as willing to complain to family and friends regarding poor service quality. Local telcoms should be dedicating significant resources towards keeping their existing user-base happy – ultimately, it is much more cost effective to retain loyal clients than to acquire new consumers.”
Significantly, the survey also points to a gap between how consumers perceive their providers and how they perceive their device. Throughout the survey, respondents indicated that, although they are pleased with their mobile handsets, the level of service delivered by operators is frequently disappointing. Holmes says: “There is a gap in the marketplace in how consumers perceive their provider versus how they perceive and value, for example, their actual device. The industry is facing a critical time period where reaching the consumers and understanding how they communicate has become paramount. Future success will belong to the CSPs that can amass more loyal customer, lower churn rates and acquisition and service costs matched to the value of the customer. To gain competitive advantages, CSPs must deepen their consumer insights, encourage interactions and create an emotional connection to their customers like we see in other industries.” Similarly, 26% of S.A. respondents indicated that they sometimes, or never, have access to mobile broadband in the country. This suggests that local providers may have some distance still to travel in terms of truly understanding and meeting customer expectations. With these trends taken into account, how can CSPs, both locally and internationally, gain a more loyal customer base while encouraging lower churn rates and continued acquisition? In essence, providers must learn to connect with consumers on a deeper, emotional level. This means that CSPs need to find a solution to shift resources from traditional channels such as retail stores and advertising, to the powerful emerging channels of social media, comparison shopping and community influencers. In order to remain competitive, these entities must find ways to understand consumers as individuals and encourage interaction with them across multiple channels. A few starting points towards achieving these goals may be: • Improving non-traditional customer experience insight; • Better understanding advocacy and antagonism triggers in order to help CSPs predict and influence the situations where customers are likely to move towards advocacy; and • The application of a social behaviour “outside-in” perspective. Consumers have unprecedented power to build and demolish brand strength as they blog, text and comment via social media about their consumer experiences. CSPs need to become part of the digital dialogue and be prepared proactively to respond to negative chatter. The targeting of advocacy segments Providers must focus on the relationship rather than transactions in an attempt to move customers up the advocacy scale. The large number of apathetic consumers could be prime candidates to sway into advocacy. At the very least, CSPs should target them to help ensure they don’t become antagonists. Build multilevel capabilities This new approach requires transformation in strategy, processes and analytical capabilities. CSPs should invest in non-traditional analytical capabilities to mine digital channels and help generate intelligence about customers. Business Analytics Become Critical
The wonder of advanced business analytics may be one of the most logical and cost-effective methods for telcoms across the globe to gain a deeper insight into the wants and needs of an often unevenly distributed and varied consumer base. “The implementation and effective usage of an advanced business analytics platform by a telecommunications operator would deliver significant benefits to both the organisation and the customer,” says Holmes. “Not only would the CSP have access to far deeper insight than ever before, but users would also benefit from products which are tailor-made to their habits and preferences. This kind of micro-segmentation could encourage consumers to use more data in geographic areas which are under-utilised, or opt for voice services in cells experiencing high traffic loads. Imagine receiving a text message from your provider apologising for the dropped call you just experienced? This kind of technology is currently available – it is simply up to telcoms both locally, and globally, to embrace it.” Such a focused understanding of the customer would allow telcoms to better cater to individual requirements, and would surely influence product offerings as the technology matures. A primary example of how CSPs can better engage with their user-base lies in the U.S., where telecommunications operator T-Mobile recently partnered with IBM to apply an advanced business analytics platform to its domestic operations. Today, the provider is able to swiftly analyse up to two years of voice and data usage and compare relevant information to current trends, in near-real time. This has enabled T-Mobile to gain closer insight into shifting consumer habits while more comprehensively catering to their needs. “This is a principle case study in how data analytics can be leveraged to improve customer experience,” concludes Holmes. “Locally speaking, CSPs should also be investigating technology of this nature as a means to close the gap between user and service provider.” One clear message that may be gleaned for these insights is that, despite its investments in infrastructure and customer experience initiatives, the industry has yet to achieve customer-related goals. To reach these, providers the world over will be required to completely rethink the manner in which they relate to consumers. AT
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In order to remain competitive, these entities must find ways to understand consumers as individuals and encourage interaction with them across multiple channels.
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“I Love My Phone but Hate the Service”
Issue 26 AFRICA TELECOMS 53
an open approach to embrace the OTT opportunity
By Vishwanath Alluri Founder, Chairman & CEO of IMImobile
For mobile network operators that have provided commoditised core services such as voice and text, profitability is becoming increasingly threatened by over the top (OTT) services providers whose users simply bypass operator networks entirely. The numerous OTT players entering the market are connecting consumers to a wide range of organisations and services. MNOs must change their approach to service delivery to re-establish themselves in this value chain and adapt to this competitive environment. MNOs must offer organisations a simple, easy, fast and cost-effective method to enable mobility on a global scale. Rather than try to fight the threat, the key to MNO success will be to adopt an “open” approach to actually embrace a new generation of OTT services that organisations look to leverage. MNOs must open network assets to enable an environment for organisations to easily create, launch and manage new mobile services to accelerate new revenues. Service delivery platforms (SDPs) have been considered the most appropriate approach to this challenge as they offer a standardised platform that provides an environment to create, manage and deliver a wide variety of services. But SDPs, built to standardise access to the network, have now become unnecessarily complex. It has become necessary to consider a new approach and the cloud may well be an MNO’s most powerful weapon to solve these challenges. The cloud has become an incredibly powerful resource that fundamentally changes the way organisations access and process data. A big shift towards Cloud Service Delivery Platforms is allowing MNOs to leverage cloud technology to meet market needs and support collaborative service creation on a global scale. A CSDP leverages an ecosystem of third party service providers and integrates with a wider set of telecom and IT capabilities to enable the creation of services
that cross technology and network boundaries. It can also simultaneously enable multiple MNOs to support collaborative services and share in potential new revenue streams. By deploying CSDPs, MNOs are able to distribute risk, reduce capital (CAPEX) and operating expenditures (OPEX).
“Mobile Network Operators must offer organisations a simple, easy, fast and costeffective method to enable mobility on a global scale.”
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Standard interfaces are exposed to organisations so that underlying complexities are removed, and can instead focus on creating innovative, elastic, scalable, multi-region services. In addition, CSDPs enables multiple players with niche services to collaborate and come up with mashed-up
For organisations wishing to deploy new services, OPENHOUSE provides the functionality they need to focus on the customer lifecycle, and also improve their internal business processes. For each stage of the lifecycle, mobile functionality can be used to streamline experiences, add value to services or increase the potential of applications. Delivered in one simple interface, OPENHOUSE combines four key layers – Service Creation, Service Execution, User Management and Network Access – to allow the delivery of an engaging and “connected” consumer experience. OPENHOUSE also offers important governance, operations and security capabilities that ensure peace of mind for those using the platform. OPENHOUSE allows MNOs to re-establish a presence in service-to-consumer value chain by engaging thousands of organisations across the globe that are interested in building network-aware applications.
the CDSP architecture with simplified integration between network assets and services
services that would not have been possible out of the box. Fundamentally, opening standardised interfaces means that the entire ecosystem of organisations, development partners and MNOs can realise a wealth of new revenue streams. OPENHOUSE is IMImobile’s CSDP solution that is powered by IMImobile’s DaVinci Evolved Service Platform (ESP). The DaVinci ESP powers revenue generating services for more than 90 operators in over 65 countries. It provides a unified experience for organisations, whether they are looking to use ready-made components or engage directly with exposed APIs.
Cloud SDPs are an enabling platform for revenue generating services. Having taken the complexity away from elaborate integration work, CSDPs create a simple environment for service creation, management, testing and execution. CSDPs are an enabling platform for revenue generating services. Having taken the complexity away from elaborate integration work, CSDPs create a simple environment for service creation, management, testing and execution. According to Coleman Parks Research, over 70% of operators believe that OTT represents a powerful opportunity rather than a worrying threat. By deploying CSDPs, and opening up their network resources, MNOs can bridge an ecosystem of third party organisations, enterprises and developers who can use out-of-the-box solutions that are fast to market. In turn, MNOs will offer a better experience to their subscribers and business customers. Put simply, a CSDP solution like OPENHOUSE makes it easy for organisations to do more with mobile.
Peter Karaszi is a communications expert in intelligent telecom solutions based in Cape Town, South Africa. 56 AFRICA TELECOMS Issue 26
Smarter infrastructure needed to handle
exploding data traffic Mobile operators across the globe are being squeezed by decreasing revenues per user, and a seemingly insatiable demand by users for more data. To efficiently manage the rapidly growing increase in data traffic in their networks, mobile operators need to build and improve their infrastructure in a much smarter way than they have hitherto done. Telecoms expert Peter Karaszi take a look at some new infrastructural solutions that can help mobile operators do just that. According to Cisco, the mobile data traffic in the world’s mobile networks grows by 150 per cent per year, driven by the emergence and use of smartphones, apps and videos. Traffic is expected to increase 26-fold between 2010 and 2015. Other sources have even scarier estimates but the conclusion is the same: Mobile operators need to speedily improve their network infrastructure to handle this rapid and significant increase in traffic. There is enormous pressure on operators’ network equipment and networks – that the end customers are already experiencing by poorer coverage, slower up- and downloads, dropped calls etc. And no, charging, restricting or capping your way out if this predicament is no option for mobile operators. It is clear that they have sold data traffic too cheaply, but for most of them competition is now too strong to afford any major price increases. The end customers, cellphone users, like their smartphones and their apps and the ability to be connected all the time and everywhere, and will expect more of the same rather than less (or more expensive) of the same. Cellphone manufacturers and application providers simply do not care – they keep churning out more bandwidth consuming products and services. As the saying goes, “give me bandwidth and I will fill it”. It will really never be enough. On the flip side, there is an emergence of smart technical infrastructure solutions that can help mobile operators manage the increasing data traffic. The solution is not to build more base stations, but rather to preserve existing capacity. An area where there has been radid technological developments is in antennas. Antennas?? Yes, I know, antennas are regarded as a low-
tech and inexpensive commodity in a network. But Swedish antenna specialist CellMax has developed ultra-high efficiency antennas that are based on quasi waveguide technology with air as dielectric instead of cables. Traditional antennas lose 20-60 percent power through the cables. Air loses close to zero. With ultra-high efficiency antennas, mobile operators can reduce the power consumption in their radio networks by up to 30 percent – or use the same amount of power to improve network performance. CellMax’ antennas also provide a better delimitation of the cells with a better focus inside the cells; to minimize unnecessary spillover and interference. With a higher signal strength, mobile operators can achieve an increase in geographical area coverage, improved indoor penetration, increased traffic, improved data throughput and reduced production costs per call – all without any increase in power consumption. So fewer base stations will be needed. Another solution that deals with suboptimal transmission, is the distributed antenna systems (DAS) for active distributed coverage offered by companies such as Delta Node. From base stations, signals are transmitted via fiber to small one-sector antennas with radio heads that are close to the users, indoor or in clearly defined outdoor areas. The DAS solutions are in short based on the mantra “dominance and containment”: focus the transmission on the user, do not “waste” the signal on areas outside your focus area, and block all interference. Another benefit of DAS is the ability to build multi operator networks and multi band networks in the same architecture, which is valuable when site sharing and when covering different venues. In conclusion, mobile operators need to take a hard look at their business models and their infrastructure to efficiently manage the explosion in data traffic. Maybe some operators can get away with restricting data or charging more for it. But for most, investing in new, smart and more efficient infrastructure is the way to go – and one that could also give them a competitive edge. AT Issue 26 AFRICA TELECOMS 57
The Digital Divide
Africa’s challenge on the fibre front
58 AFRICA TELECOMS Issue 26
We talk to Juanita Clark, CEO of the FTTH (Fiber to the Home) Council Africa, and Graham Gamble, of Dartcom, FTTH Council Africa founder member. Juanita, what is the FTTH Council Africa? The FTTH Council Africa is a non-profit independent organisation that drives the development and deployment of fibre-based broadband networks. The organisation was established in the latter part of 2010 by 10 founding organisations with a vested interest in the fibre-optic industry. Today we comprise 32 members from South Africa alone, but we are now looking towards the rest of Africa to provide them with support. Fibre-optic deployments are to a large extent still in its infancy in Africa and therefore certain aspects of this growing industry have not been addressed, such as regulation. We require a well-regulated continent and we work hard to develop standards and deployment methodologies to support governments to attract investment and expedite the deployment of infrastructure. We believe that fibre-optic networks will allow African countries to increase their effectiveness and competitiveness within the global marketplace. The council’s charter is to educate governments, policymakers and political leaders in Africa on why and how highspeed fibre connectivity can be delivered within the next years. Graham, why fibre? Put simply - bandwidth demand. Things have changed and copper is becoming increasingly outdated. However, this demand runs much deeper than just basic consumer internet bandwidth. Massive increases in video content, high bandwidth applications, Cloud computing, software as a service and convergence are all driving broadband bandwidth requirements; and although several technologies are available to satisfy this demand, fibre in the local loop – and, more specifically, fibre directly connecting the customer premise – will be one of the very few technologies that are able to keep pace with projected increases in the future. When we consider the fact that fibre has no street value, it allows more throughput, maintenance is easier, it is greener as it consumes less energy, has a longer lifespan and provides improved network reliability, then it is the clear winner over any other carriers. Juanita, what’s driving the exploding interest in fibre optic deployments? The complete answer speaks to a few things. In South Africa, the Altech ruling ensured that the industry was opened up for competition and in South Africa alone there is more than 450 telecoms licenses issued by ICASA. This has resulted in traditional telecoms companies diversifying their offerings to include that of services, or
the other way around, to build networks. Mobile operators in Africa are experiencing unprecedented growth on their mobile networks, and in order to accommodate that, many are investing in fibre-optic back-haul. Also, for the early investors, building networks offers a compelling return on investment that is supported by the recurring revenue and the asset value of the network, and this in an inhibitive environment with regard to access to rights-of-way approvals, environmental impact assessments and water-use licenses that can in some cases take up to two years. Once these issues have been resolved, we will see an even greater investment in fibre-optic infrastructure rollout and speedier deployment. Graham, where do we see fibre being deployed at the moment? The bulk of deployment remains base-station back-haul. We all know the statistics on Africa’s ever-hungry mobile consumers, and the race is on for mobile operators to deploy infrastructure to accommodate the data demand. Subscriber-growth and the many new data offerings are dictating the pace at which mobile operators are deploying. Having said that, we are also seeing many end-to-end fibre networks being deployed and many companies are announcing strategies for either FTTB (fibre to the business) or FTTH deployments. We do find that companies focus on one or the other, simply because the applications for both are very different. Where FTTH is more geared towards triple-play apps, FTTB is more aimed at commercial apps such as Cloud offerings and SaaS (software as a service). Education is key as operators still have problems getting access to business parks and gated communities. Graham, we understand the challenges facing operators, including access to wayleaves and environmental impact assessments. As a product vendor, what are some of the challenges you have to face? The unpredictable nature of the roll-out programmes requires product vendors to be flexible and innovative. Product vendors need to add value by assisting the operators to choose optimal solutions which will meet longer-term requirements, whilst ensuring that short-term goals are achieved. Management of inventories to match unpredictable roll-out demand is a critical element to be managed by vendors, coupled with the financial impacts of carry-excessive inventory. Juanita, there are clear distinctions between FTTH and FTTB. Looking at FTTB, what are the benefits of fibre for property managers and business parks? Deploying of fibre infrastructure to corporate tenants allows the Issue 26 AFRICA TELECOMS 59
highly competitive commercial property Industry to diversify their historical property offering; fibre is therefore a key value proposition and strong differentiator for today’s property management companies. We are also arguing that fibre should be viewed as a standard infrastructure service such as electricity, water and sanitation. Developers should already make provision for telecoms infrastructure during the development planning phase. This will remove a lot of headaches later on when operators request access to properties to deploy infrastructure. Further, the practicality of a tenant rolling out his own infrastructure is impossible. In addition, property-management companies can utilise the same infrastructure for their own benefit, such as property security – onsite video surveillance or remote monitoring which adds to the value proposition of one business park being chosen over another. It can also mean rejuvenation of “less popular” business parks through the provision of high bandwidth. International clients have a greater demand for bandwidth as certain applications may be in Cloud. Property management companies are constantly searching for unique value propositions and ways to enhance their offering. Fibre is that differentiator. And for home-owners? Most home-owners consume bandwidth and rely on technology when at home, but few understand the value of a fibre-connected community. More and more people are working from home. In order for this to be effective and include virtual participation (the ability to behave as if one is in the office even if you are not), high-speed broadband is needed. Not only will this save companies millions in fuel consumption, but statistics show that home-workers are much more productive than office-workers who are constantly interrupted. Consider the savings in office space required and then, of course, the benefits to the environment when you take thousands of commuters of the road. In addition to ultra-fast internet access, FTTH can offer speciality interests such as internet gaming or international TV programming. Community and home security are priorities for most residents and FTTH can support everything from community-based IP cameras to traditional home security. How does the continent differ across Africa? Africa is a big continent and the issues are very different from country to country. A few threads carry through the industry and that pertains mostly to a lack of standards, and lack of legislation. In South Africa, it is the delays in right-of-way approvals, environmental impact assessments, water-use licenses; the delay in projects are costing
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companies millions of rand. Across Africa, all is different and from each country we get different reports on the status of that country. We have also become a buffer between authorities and the industry and they often send us emails to refer issues to us in an attempt to help them resolve these. Even though this is not really our mandate, we feel compelled to support them in the absence of legislation and a single set of standards. The FTTH Council Africa is looking at ways of self-regulating the industry and getting companies to adopt a single set of standards for deploying infrastructure in addition to following a simple set of rules for engaging with authorities until such time as effective legislation is passed. Will all citizens have access to fibre? Even though FTTH Council Africa are still very focussed on issues pertaining to the deployment of national long-distance and metro networks, we are seeing a large increase in the amount of companies competing in the access market. At this stage, the business case for FTTB is still stronger than that of FTTH, but I believe it will be a natural progression and eventually many homes will have access to fibre. While ubiquitous access would be fantastic, the fact is that it is not practically or financially feasible as rural areas are expensive to deploy and uptake just won’t be there. Operators will go after areas that can provide them with a clear ROI and the more remote areas may see other technologies offered as a hybrid solution. On the role of government – current broadband speeds are far behind global averages, and if African countries do not build effective broadband strategies to counter this, we will see the digital divide increase. The rollout of fibre-optic networks required significant investment from the private sector and is mainly ROI-driven. With the amount of social challenges on the continent it is often difficult to convince governments to invest in infrastructure, but broadband has major economic development benefits per capita. Will the private sector go after areas that do not offer a resilient ROI? That leaves the role of government and SOEs. In Africa, there is a strong case for PPPs, but it is difficult to get a dialogue going between the private sector and government (that often develop strategies in isolation). Through consultation with all major stakeholders, we could see rapid penetration on the continent, but this process needs to be driven by government and include open dialogue with the private sector that has much experience in this area and could bring not only advice but also infrastructure to the table. We are more than happy to facilitate such meetings on behalf of government as we believe that it is in the best interest of the inhabitants of the continent. AT
Even though FTTH Council Africa are still very focussed on issues pertaining to the deployment of national long-distance and metro networks, we are seeing a large increase in the amount of companies competing in the access market. At this stage, the business case for FTTB is still stronger than that of FTTH, but I believe it will be a natural progression and eventually many homes will have access to fibre.
60 AFRICA TELECOMS Issue 26
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By Gary Allemann Managing Director at Master Data Management 62 AFRICA TELECOMS Issue 26
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a recent Forrester Research report titled “Trends in Data Quality and Business Process Alignment” shows that quality data is vital for supporting business process improvements. Process transformation and optimisation is worthless if the foundation for core process improvement is not based on trusted, high quality data.
Data quality management is vital for business process improvements Data quality management is something that has been viewed in the past as the sole domain of the IT department. However, a recent Forrester Research report titled “Trends in Data Quality and Business Process Alignment” shows that quality data is vital for supporting business process improvements. Process transformation and optimisation is worthless if the foundation for core process improvement is not based on trusted, high quality data. As a result, managing data quality has become something of strategic organisational importance, requiring collaboration between business and IT stakeholders. Issue 26 AFRICA TELECOMS 63
The Forrester report highlights that data quality initiatives have graduated from tactical projects to more strategic initiatives with senior sponsorship and prioritisation. However, as data quality maturity levels and internal expertise remain low in most companies, investments must be made in data quality in order to positively impact operational processes, customer relationship management and other core functions. The move towards improved data quality management is a growing trend at large organisations around the world, and for many reasons, depending on the nature of the organisations. In highly regulated industries such as financial services, the main driver is often the need for compliance and risk management. In the commercial sector on the other hand, improved business performance and efficiency coupled with reduced costs are often common drivers for data quality. Whatever the industry within which an organisation operates in, there are several common underlying needs that result in investments into data quality management systems and business process alignment. These include increasing revenue through improved direct marketing and account management; reducing costs by improving operational efficiency; and mitigating and controlling both regulatory and financial risk. However, in order for data quality management to be effective, It is important to remember that there is a symbiotic relationship between data quality and business processes, and each must work with the other in order to deliver. Business processes must have trusted, quality data in order to be effective, and data quality initiatives will fail to deliver value if the data does not support business processes. Data quality impacts the entire organisation and is critical for optimising not only business processes, but also business decisions and customer interactions. One of the biggest challenges facing organisations is how to correctly scope and prioritise data quality investments and resources. In order to do this, it is vital to identify the areas within an organisation that are most affected by data quality. These differ depending on the individual organisation. According to the Forrester report, 55% of respondents shared that data quality was a key dependency for improved operational efficiency. Other areas identified as being heavily impacted by poor data quality included: the customer experience; customer relationship management; and product management. Once the areas that are impacted have been identified, and the data quality process has been scoped and prioritised, the next challenge is to develop a multi-dimensional people, process and technology data management approach to address individual business challenges. There are a number of different steps that can be taken to achieve this, again depending on the nature of the organisation and its specific needs. Firstly, business process and data management initiatives should be aligned, since business process transformation and optimisation efforts require trusted data and data cannot provide value if it is not delivered in context for business users. Secondly, it is vital to formalise an enterprise data governance programme to define data quality standards and processes, because it is impossible to achieve the desired levels of data quality if it cannot be defined what data 64 AFRICA TELECOMS Issue 26
quality means to the business. The data governance programme will lay out the policies, business rules and standards that need to be embraced across the data lifecycle, from capture to retirement. Consequently, it is also important to define roles, responsibilities and processes to mitigate data quality issues, as well as appoint responsible personel. These best practices will stand the organisation in good stead for ensuring the success of data quality initiatives. The next step is to deploy data quality cleansing and validation capabilities in the form of data quality software. While best practices are important as enablers for achieving high levels of data quality in the future, the data that is currently contained within existing systems must also be addressed. These tools enable organisations to automate and implement batch and transactional data cleansing and validation capabilities. This, in turn, ensures that critical data is standardised, cleansed, validated, verified, matched and enriched, based on the previously-defined rules and standards of the organisation. Following from this, master data management capabilities augment data quality management systems. Where data quality software enables defined and centralised business rules to ensure high quality data, master data management enables organisations to deploy a centralised master data repository to deliver a single trusted view accross various master data. Master data management takes data quality to the next level by enabling those responsible for data quality to directly mitigate issues, manage data hierarchies and, if necessary,override exceptions to data standards and policies. It also enables data to be made available for analytics engines and systems, to drive business value from data. The final step in the data quality implementation process is the rollout of data quality monitoring capabilities. This will enable organisations to determine whether business value and return on investment are being achieved to justify resource investments, and measure the success of data quality improvements in operational data, business performance indicators and programme level metrics In recent years, data quality and management have emerged as strategic organisational competencies, which require that the traditional gap between business and IT be addressed. Data needs to be useful to the business in order to deliver value and return on investment. Ultimately, poor data quality acts as a bottleneck when it comes to business process improvements. This makes addressing data quality problems an item of high importance on the business agenda. Forrester Research’s recommendation is that data management professionals should assist in the change management process by educating their partners, in business and in IT, on best practises, trends and methodologies for building data governance and data quality competencies in-house. AT
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One of the biggest challenges facing organisations is how to correctly scope and prioritise data quality investments and resources. In order to do this, it is vital to identify the areas within an organisation that are most affected by data quality.
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The use of services where and when users want them, particularly high end video, is driving traffic inexorably upwardsusers want them, particularly high end video, is driusers want them,
Africa Telecoms chats with Craige Fleischer, Director of Mobile Communications at Samsung South Africa Samsung has been in the spotlight for a variety of reasons over the last year, since joining Samsung just over a year ago, what has been the most challenging part of joining this international electronics manufacturer? I would have to say that the scope of working with an international organisation and getting to understand the dynamics between the various parts have been interesting to understand. Also, the opportunity to leverage off the relationships between our CE and IT divisions has been a great learning experience. The converging technologies across all areas of Samsung are exciting and as a technology geek I’m excited to see were the technology evolution will take us in my lifetime at Samsung. Apple and Samsung are amidst a huge patent battle internationally, are you seeing any effects in South Africa? Certainly there is a public battle between the brands in the US however, it is safe to say that this is certainly not impactful on local business at all and in fact, is contained to the US market. Of course, major legal battles such as these create talkability in local markets by default and we believe that this can only assist in bringing our brand to the forefront of consumer minds. The Samsung Galaxy S III is probably the most successful device launch of 2012 internationally. Was this experience the same in South Africa? Can you disclose the actual numbers sold thus far in Africa and the rest of Africa? The demand created for the Galaxy S III in global markets most certainly created a strong interest for the product in our local market and by the time we launched in South Africa, there was a massive demand for the product. People were not only talking about the product in anticipation, but prior to launch we witnessed a preorder on the product of approximately 50 000 units, a phenomenal number – one that is not witnessed very often in a market such as ours. Unfortunately, I can’t disclose actual numbers sold thus far across Africa, however I can say that we have far surpassed our expected sales targets here and are continuing to see strong market growth for the brand as a result of this high-end, innovative product offering. 66 AFRICA TELECOMS Issue 26
Recently Samsung also launched the Galaxy Note II, this device surprised many, including Africa Telecoms, due to its large size. What do you attribute the success of a device that is akin to a cross between a smartphone and a tablet? This has been referred to as a “Phablet”, do you think Samsung will start using this in the marketing of the Note II? The Note II is a unique device, born from an evident market requirement that addresses the need for the best of both the smartphone and tablet worlds. The device in fact is not that much larger than the original Note device but certainly boasts a larger screen – with the bezel size minimised. The larger form factor allows for stronger usability and delivers an enhanced graphical experience – key to the device’s functionality and features. This device also comes with a range of features that require a larger screen and provide a strong user experience as a result, such as split screen multitasking for example. The word ‘Phablet’ is most definitely a market catch phrase and will not be used by Samsung to market this product. However, what is key to note is that the Galaxy Note range of products will become a new product category for the Samsung brand – focusing on productivity, design and creativity - falling within the larger Galaxy range of products. The “Built for Africa” program has seemingly grown in leaps and bounds during 2012. The performance of the Galaxy Pocket this first device in this range has been noted and subsequently launched by Samsung in markets outside of Africa. To what do you attribute the success of this device? At Samsung we are always looking for ways from which to access every touch point of the African market – ensuring that we provide products that meet different consumer needs and levels of affordability. By this we mean not just any products but those that offer the best possible user experience for their price points. The Galaxy Pocket does just this – offers a superior entry level smartphone experience – bringing much of Samsungs innovation to a cost effective handset for the broader market. It is this value proposition that has ensured the success of this device in SA and we are sure that the market will continue to see a strong adoption
q&A
of these types of offerings. The Samsung Internet School initiate is a great concept, have you had any actual deployments of the classrooms? The Solar Powered Internet School project is headed up by the Samsung’s Africa Regional Headquarters Team however, I can say that it has most definitely already been deployed in 8 countries, including; Angola, Cote d’ Ivoire, Senegal, Cameroon, Botswana, Lesotho, Nigeria, SA. What is the cost of one of these units and how many are Samsung looking at deploying in Africa during 2013? These units are an investment of $100 000 each – those that are built and ready for shipment from JHB. However, of course if clients place larger orders so the price will come down per unit. Our aim is to drive this project through as many underprivileged and rural communities across Africa, where we are working with governments in many countries to drive this project. We currently have a number of pending deals which we hope to see reach fruition in 2013 and look forward to updating you around this next year. The tablet market is growing at an ever-increasing rate, what do you think defines what the tablet market is? Why do you think Tablets have taken the market by storm? The tablet market is all about mobility. Today consumers within their personal and business lives want compact but highly functional devices to use while on the move. Connectivity and constant access to one’s personal information and the internet respectively, is a non-negotiable in this regard too. Tablets offer this functionality and convenience and it is for this reason that they are gaining momentum in both the global and, very much so, in the local market too. Do you think that tablets will ever replace PC’s? Like with anything, different people have different needs and preferences when it comes to technology and lifestyle and as a result, I don’t see the tablet replacing PCs. Rather, what we are witnessing is a strong move on the PC side from traditional, bulky desktops and laptops to ultra thin, feature rich mobile PC uniti – that provide similar functionality and convenience to the tablet. In fact, we are also seeing (with Samsung’s All in One PC for example) the move towards the integration of PC and tablet functionality and portability – where consumers can get the best of both worlds; a laptop/desktop based PC that can be converted into a tablet for portability. I feel there will always be the need for both however and that it will simply boil down to consumer preference. Samsung is diversifying its portfolio of products to now include Windows 8 devices. When can we expect to see the ATIVs available in South Africa? Samsung’s PC based ATIV devices launched in Johannesburg this week (on 30 October 2012) and will be available in market at the beginning of December through Dion Wired, Incredible Connection and Samsung brand stores, with the Samsung ATIV Smart PC at a RRP of approximately R9 999 and the ATIV Smart PC Pro at an RRP of R17 999. On the mobile side we are expecting to officially launch this
device into market at the end of January 2013 – where we are in the process of refining the device and respective software for market consumption. Samsung and Intel created the Bada Operating System (OS) some time ago, are Samsung still developing for this OS? And can we expect new devices using the OS in the future? Samsung’s strategy is to provide the consumer with any technology and product innovation that they require – ensuring that we are adapting to and understanding our consumer needs and preferences. As a result, we will continue to support and bring to market products that operate across different platforms and price points. However, with regards to Bada – while this platform is most definitely very popular for the brand in a number of markets, this is not mapped locally. Therefore, while we will most certainly support this OS locally and ensure constant service delivery in this regard, it is not an OS that we are focusing our innovation around for the SA market – given that there is a lesser demand for it. Our focus will remain on Android and Microsoft. But who knows what the future holds from an OS perspective, as the markets change so do we – that’s the power of being an innovative brand. Windows 8, across 3 screens, PC, Tablet and Phone, makes it a very compelling offering, when will consumers in Africa be able to use Samsung devices across all 3 screens? Unfortunately, I am not in a position to provide any forward looking statements with regards to product movements and new developments however, what I can say is that Samsung are committed to creating an eco-system within their product range – one that enables convenience and ease of product use – and will continue developing products that align to this commitment. If it was up to you, what would your OS of choice be, Android, Windows 8 or Bada? And would this be the same for PC, Tablet and Phone? If have to say that open source on a phone has done it for me, the plethora of free apps and solutions in this space are astounding. Additionally, globally Android has more than 70% of the global smartphone share according to IDC as of Q3 this year. From a pc perspective I am still a windows man. What is the App that you use most during your every day life at the office? And at home? And what app do your kids most enjoy? It’s got to be all my social media apps like twitter, Linked-in and Facebook for Android. The kids are into games at the moment. So anything that jumps or shoots is the order of the day! What would you rather lose your phone or your wallet? Well this would be a tough question to answer without the Samsung cloud back up. Thank goodness for this, as it allows me to save all my apps, contacts to my Samsung account and if I lose my Galaxy all I need is to put my username and password into my new Galaxy to restore all my details. But I’d hang onto my wallet for sure! AT Issue 26 AFRICA TELECOMS 67
Africa Telecoms Events Calendar November 2012 – June 2013
november 13-15 africa com Cape Town, South africa
informa
Louisa Rogers: +44 (0)20 7017 51575
2013
february 25-28 MOBILE WORLD CONGRESS Barcelona, SPAIN
GSMA
25-27 7th annual e-gov africa Munyono, Uganda
cto
march 13-14 aitec banking & mobile money west africa Lagos, Nigeria
Helen Moroney: +44 148 088 0774
www.aitecafrica.com
25-27 7th annual e-gov africa Munyono, Uganda
cto
april 17-18 rwanda ict summit Kigali, Rwanda
Helen Moroney: +44 148 088 0774
www.aitecafrica.com
22-26 commonwealth cybersecurity conference Yaounde, Cameroon
cto
23-24 cloud world forUm africa Johannesburg, South Africa
Denise Duffy: +44 20 3377 3136
informa
Denise Duffy: +44 20 3377 3136
informa
25-26 vas africa Johannesburg, South Africa 68 AFRICA TELECOMS Issue 26
Calendar
may 14-15 north africa com Tunis, Tunisia
informa
Denise Duffy: +44 20 3377 3136
20-21 east africa com Nairobi, Kenya
informa
Denise Duffy: +44 20 3377 3136
27-30 satcom africa Johannesburg, South Africa
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
27-30 submarine networks world africa Johannesburg, South Africa
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
27-30 the broadcast show africa Johannesburg, South Africa
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
28-29 the ip networks show africa Johannesburg, South Africa
Tarryn Volkwyn: +27 (0)11 516 4000
www.terrapinn.com
june 11-12 west & central africa com Dakar, senegal
informa
Denise Duffy: +44 20 3377 3136
25-26 vas africa Johannesburg, South Africa
informa
Denise Duffy: +44 20 3377 3136
26-27 Aitec banking & mobile money comesa 2013 Nairobi, kenya
Helen Moroney: +44 148 088 0774
If you would like Africa Telecoms to add an event to the calendar, please contact Mr. Bradley Shaw at bshaw@3ipublishing.co.za
www.aitecafrica.com
26-28 MOBILE asia expo Shanghai, China
GSMA Issue 26 AFRICA TELECOMS 69
ICT Jobs at your fingertips How To Apply Step 1: Visit www.careerjunction.co.za Step 2: Type the CJ Ref# in this box on the CareerJunction site and search.
Register free at www.careerjunction.co.za and create a professional online Resume!
Web Ref.
* Please note that Recruiters may expire/delete Job Ads at any time.
Technician
Secure Transactions Consultant / Intern
Technical Consultant / Intern
Durban , South Africa ( KwaZulu-Natal )
Johannesburg , South Africa (Gauteng)
Johannesburg , South Africa (Gauteng)
R10,000-14,000 Per Month CTC
R5,000-7,500 Per Month Basic Salary
R5,000-7,500 Per Month Basic Salary
Permanent skilled level position at Teleresources Durban in the Telecommunications industry.
Permanent junior level position in the Telecommunications industry.
Permanent junior level position in the Telecommunications industry.
CJ Ref# 1442645
CJ Ref# 1442635
CJ Ref# 1442637
Logistics Manager
SQL Database Administrator / Developer
PHP Developer
South Africa (Gauteng)
South Africa (KwaZulu-Natal)
South Africa (KwaZulu-Natal)
R40-50 Per Month Basic Salary Plus Benefits Neg
Market Related CTC
Market Related CTC
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
Permanent senior level position in the Telecommunications (Telecommunication) industry.
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
CJ Ref# 1442490
CJ Ref# 1430895
CJ Ref# 1431420
Pricing & Viability Studies
Pricing & Viability Studies
CA / Audit Services Manager
Centurion , South Africa (Gauteng)
Centurion , South Africa (Gauteng)
Pretoria (Pretoria), South Africa (Gauteng)
R690,000-990,000 Per Annum CTC Incl Benefits Neg
R790,000-990,000 Per Annum Basic Salary Plus Benefits Neg
R850,000-950,000 Per Annum CTC Incl Benefits Neg
Permanent senior level position in the Telecommunications (Telecommunication) industry.
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
Permanent management level position in the Telecommunications industry.
CJ Ref# 1440738
CJ Ref# 1433106
CJ Ref# 1440742
Senior C# Developer
EE Sales Consultant
PHP Developer / Python Developer
Pretoria , South Africa (Gauteng)
Rustenburg (Rustenburg), South Africa (North West)
Pretoria, South Africa (Gauteng)
R40,000-50,000 Per Month Basic Salary
R10,000-14,000 Per Month Basic Salary Plus Benefits
R22,000-27,000 Per Month Basic Salary
Permanent position in the Telecommunications industry.
Permanent skilled level position at Drake International in the Telecommunications industry.
Permanent position in the Telecommunications industry.
CJ Ref# 1441816
CJ Ref# 1441815
CJ Ref# 1441999
Mobile Developer
.NET Developer
EE Head Business Development
Randburg (Blairgowrie), South Africa (Gauteng)
South Africa (Gauteng)
Roodepoort (Roodepoort West), South Africa (Gauteng)
Market Related Basic Salary Neg
Market Related Basic Salary Neg
R800,000-850,000 Per Annum CTC Incl Benefits
Permanent position in the Telecommunications industry.
Permanent position in the Telecommunications industry.
Permanent executive level position in the Telecommunications (Telecommunication) industry.
CJ Ref# 1441810
CJ Ref# 1441820
for more jobs visit www.careerjunction.co.za
CJ Ref# 1441858
Web Developer
EE Solutions Architect
Recruiting Partner
Sandton , South Africa (Gauteng)
Durban , South Africa (KwaZulu-Natal)
Cape Town, South Africa (Western Cape)
R15,000-30,000 Per Month Basic Salary
R37,500 Per Month Basic Plus Commission Neg
R22,000-25,000 Per Month CTC
Permanent position in the Telecommunications industry.
Permanent senior level position in the Telecommunications industry.
Permanent position in the Telecommunications industry.
CJ Ref# 1430296
CJ Ref# 1441818
CJ Ref# 1441460
Knowledge Author
Developers
EE Java Developer
Johannesburg, South Africa (Gauteng)
South Africa (Gauteng)
Roodepoort , South Africa (Gauteng)
Market Related CTC
R240,000-500,000 Per Annum Basic Salary
Market Related CTC Neg
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
Permanent skilled level position at TPG on behalf of client in the Telecommunications industry.
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
CJ Ref# 1441270
CJ Ref# 1441425
CJ Ref# 1364872
Systems Developer (C++)
Direct Sales Conversion Agents
PABX Installation Technician
Midrand (Midrand), South Africa (Gauteng)
Centurion South Africa (Gauteng)
Pietermaritzburg, South Africa (KwaZulu-Natal)
CTC Neg
Per Month Basic Salary
R8,000 - R12,000 Per Month Basic Salary
Permanent skilled level position in the Telecommunications industry.
Contract skilled level position at FastNet in the Telecommunications industry.
Permanent skilled level position at Greys Personnel in the Telecommunications (Telecommunication) industry.
CJ Ref# 1231413
CJ Ref# 1440969
CJ Ref# 1440505
Direct Sales Consultants
PHP Developer
Senior ASP.Net Developer
Centurion South Africa (Gauteng)
South Africa (KwaZulu-Natal)
South Africa (KwaZulu-Natal)
Market Related Salary
Market Related CTC
Market Related CTC
Contract skilled level position at FastNet in the Telecommunications industry.
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
Permanent senior level position in the Telecommunications (Telecommunication) industry.
CJ Ref# 1440608
CJ Ref# 1440531
CJ Ref# 1440614
Legal Specialist Telecommunications
Financial Administration Clerk
EE Solutions Architect
Midrand, South Africa (Gauteng)
South Africa (Western Cape)
Durban, South Africa (KwaZulu-Natal)
Market Related CTC
Market Related CTC
R37,500 Per Month Basic Plus Commission Neg
Permanent senior level position in the Telecommunications industry.
Permanent junior level position in the Telecommunications (Telecommunication) industry.
Permanent senior level position in the Telecommunications industry.
CJ Ref# 1440702
CJ Ref# 1440620
Recruiting Partner
Knowledge Author
CJ Ref# 1430296
Direct Sales Consultants
Johannesburg, South Africa (Gauteng)
Cape Town, South Africa (Western Cape)
Market Related CTC
R22,000 - R25,000 Per Month CTC
Market Related Salary
Permanent skilled level position in the Telecommunications (Telecommunication) industry.
Permanent position in the Telecommunications (Telecommunication) industry.
Contract skilled level position at FastNet in the Telecommunications industry.
Centurion South Africa (Gauteng)
CJ Ref# 1441460
CJ Ref# 1441425
CJ Ref# 1440531
Sales Account Manager
Installations Manager
Centurion South Africa (Gauteng)
Centurion South Africa (Gauteng)
Cape Town (Royal Cape), South Africa (Western Cape)
R300,000 - R350,000 Per Annum CTC
R300,000 - R350,000 Per Annum CTC
R18,000 - R25,000 Per Month Basic Salary Plus Benefits Neg
Permanent skilled level position at FastNet in the Telecommunications industry.
Permanent skilled level position at FastNet in the Telecommunications industry.
Permanent skilled level position at A client of Your Move Personnel in the Telecommunications (Telecommunication) industry.
VPN Sales Manager
CJ Ref# 1381112
CJ Ref# 1440053
for more fmcg jobs visit www.careerjunction.co.za
CJ Ref# 1442824
Last word
The full statement by Apple reads: On 9 July 2012 the High Court of Justice of England and Wales ruled that Samsung Electronic (UK) Limited’s Galaxy Tablet Computers, namely the Galaxy Tab 10.1, Tab 8.9 and Tab 7.7 do not infringe Apple’s Community registered design No. 0000181607-0001. A copy of the full judgment of the High Court is available from www.bailii.org/ ew/cases/EWHC/Patents/2012/1882.html. That Judgment has effect throughout the European Union and was upheld by the Court of Appeal of England and Wales on 18 October 2012. A copy of the Court of Appeal’s judgment is available from www.bailii.org/ew/cases/EWCA/ Civ/2012/1339.html. There is no injunction in respect of the Community registered design in force anywhere in Europe.
rotten Apple given 48 hours to clean up its act The patent wars in the telecoms sector are going from the sublime to the ridiculous. Apple and Samsung have been going at each other with hammer and tongs for a quite some time now. Samsung wins in some territories and Apple in others, but the most recent set of circumstances takes the litigants into the theatre of the absurd when you understand how ridiculous this ‘war’ has become. The U.K. Court of Appeal had recently ordered Apple to post a notice on its website and a number of print publications making a retraction of the statement that: “Samsung copied its iPad designs”. Apple did this in a “Fast and Loose” manner according to the U.K. Judges hearing this case. Apple focused on the judges comment that Samsung could not have copied the iPad as the Samsung tablet was not “as cool” as the iPad. Samsung appealed to the U.K. court to have Apple change this website post due to inaccuracies and untruths. This post was also made in a ludicrously small 8-point font. The court agreed and insisted that Apple remove this post. Judge Sir Robin Jacob said: “I’m at a loss that a company such as Apple would do this. That is a plain breach of the order.” Apple then made the statement that it would take them 14 days to remove this post! 14 days to remove a web post. Seriously? Judge Jacob asked Apple attorneys to have Apple CEO Tim Cook to provide an affidavit as to why this would take 14 days. The ruling 72 AFRICA TELECOMS Issue 26
was then made that Apple had 48hrs to remove the post and put a corrected one up and also at a minimum of an 11-point font. The attitude of Apple to fly against rulings such as this make a mockery of the judicial system and cast the company in a dim light. However one has to question what the company was thinking by stating that it would need 14 days to remove a post from a website? Does Apple only use web developers in the Arctic that are only contactable via carrier penguin, as they are concerned about the risk of e-mails being hacked? Samsung executives must be sitting in South Korea watching these events unfold, astonished at the idiocy of what Apple are trying to achieve by stunts like this. Samsung, however, are still on the hook for the USD$1.05 billion payment to Apple for the loss of the patent infringement court case in the US Federal court in California. Anecdotal evidence suggested that Samsung was planning to pay this amount in 5c coins loaded onto lorries and drive the lorries into the parking lot of Apple HQ and simply dump. Whatever the outcome of this patent war is, there will surley be more entertainment for those who enjoy the technology sector
Bradley Shaw writes exclusively for Africa Telecoms Magazine
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