CONTENTS REGULARS
04 Guest Editorial Mohammed Khan, Chief Executive Officer, 3i Publishing.
06 News
The latest local and global telecoms news.
16 Calendar
ISSUE 7 2010
24 Thought Leadership In an exclusive interview with Africa Telecoms, Mr Mike van der Bergh CEO of Gateway Communications shares his insights into the voice and data market in Africa.
a Lasting 28 Leaving Legacy
The effect of the FIFA 2010 World Cup on South Africa and the lasting impression on South Africa’s technology landscape.
Upcoming events, shows and conferences which you can’t afford to miss.
20 Gadgets
Want the next big thing in portable devices? Our gadget review is here to help you choose.
40 Statistics
Africa Telecoms presents statistics and data relating to Voice and Data in Africa.
2 AFRICA TELECOMS Issue 7 2010
34 Africa Networx Summit An event overview of the summit held in Franschhoek, Cape Town.
42 Pre-paid Churn Michele Scanlon examines the problem of customer churn for mobile operators, in multiple SIM markets.
01 01 11 01 00 01 01 00 10 11 01 1
c
54
The BRAIN Model of Intelligibility in Business Telephony
c c
58 Roaming
The key to profitability in Africa.
Managing Editor Bradley Shaw bshaw@3ipublishing.co.za
LAY
Improving speech intelligibility for the 21st century
DE
??
?
kH
Executive Editor Mohammed Khan mkhan@3ipublishing.co.za
c
z
FOR AFRICA TELECOMS
Sales Director Sarah Theron stheron@3ipublishing.co.za Design Team: Alexander Flemming xflemming@3ipublishing.co.za Hayley Davis hdavis@3ipublishing.co.za Sub-Editor Niki Sampson Publishing Consultants Schreiber Media Printing Tandym Press
62 Q&A
Shirin Dehghan, Chief Executive Officer, Arieso Ltd.
66 World Cup
With the rise of Twitter, Facebook and YouTube the South African World Cup had much to live up to from a technology perspective. Lesley Stones reports.
70 Jobs Listing A list of the latest telecoms positions from across Africa.
72 Last Word
Cell C’s new campaign. ‘Hot air’ or industry revolution?
Contributors: Lesley Stones, Brett Haggard, Johann Barnard, Bradley Shaw, Michele Scanlon, Mohammed Khan Africa Telecoms and Africa Telecoms Online are published by: 3i Publishing Unit 9 & 10, Planet Art 2, 32 Jamieson Street, Cape Town 8001 T: +27 21 426 5590 E: info@3ipublishing.co.za www.3ipublishing.co.za www.africatelecomsonline.com BPA Worldwide Business Publication Audit, Membership Applied for – October 2009.
Issue 7 2010 AFRICA TELECOMS 3
Guest Editorial
Mohammed Khan CEO, 3i Publishing
WHAT A MOMENTOUS YEAR IT HAS BEEN FOR BOTH 3i Publishing, and the nation of South Africa. We launched Africa Telecoms in November 2009, and on behalf of all of us, may I please extend our warmest thanks and appreciation to all our clients, supporters, contributors and readers for making Africa Telecoms the leading monthly publication covering the African ICT market. It is indeed an honour for us all to be involved in an industry that is affecting so many and in such a profound and life altering way. Whether it is connecting the millions in Africa’s urban centre’s or the ability to provide Universal Access for the majority in the rural areas, ICTs have created a paradigm shift that has only been of benefit to the continent. In addition to the publication, 3i Publishing was also privileged to host its first conference, the Africa Networx Summit 2010, to coincide with the FIFA 2010 World Cup in South Africa. An overview of the event is covered in this issue and it is our hope that all delegates found the event of value and will join us as we hold similar conferences across the continent in the coming year. Once again, if I could take the opportunity to thank our sponsors and delegates for making the event possible. We plan to hold our next summit in Addis Ababa, Ethiopia in March 2011. Some highlights of summit included the interconnection debate, which has become a hugely emotive topic in the industry and it is our intention to dedicate some considerable time and column inches at examining the issue in considerably more detail. In our very first issue, we did publish the Namibian Interconnection Benchmarking Study, published by NCC. the During the week of the conference, ICASA, held their hearings in Midrand on the interconnect regulations, and again the gravity of this important issue was evident with submissions to ICASA from all the major operators. For ICASA, voice call termination is defined as the service one network offers to another to carry traffic to end-users. The interconnection rate, is therefore the charge for this service. In ICASA’s draft call termination regulations of 16th. April 2010, the regulator proposed a glide path for termination costs of ZAR 0.65 for mobile and ZAR 0.15 for fixed in July 2010. Then in July 2011, this would decrease to ZAR 0.50 and ZAR 0.12 respectively and finally in July 2012, this would settle at ZAR 0.40 and ZAR 0.10. This would apply to all individual or class licensees who are found to have Significant Market Power (SMP). In the case of South Africa, this refers to Vodacom, MTN, Cell C and Telkom. The most widely applied cost standard is the forward-looking long-run incremental cost (LRIC) of termination of an efficient 4 AFRICA TELECOMS Issue 7
operator. Termination rates at cost of termination will remove economic distortions witnessed in Europe and Africa today and prepare the markets for a smooth transition to IP based Next Generation Networks. This cost standard has also recently been applied by the Communications Commission of Kenya (CCK) and the LRIC methodology is quickly gaining traction across the continent. Whether the application of this standard yields substantive results, with the benefits of these termination cost reductions being passed on to consumers, is yet to be seen For the World Cup, there were many, and complex factors that contributed to a successful tournament such as the FIFA 2010 World Cup. From a technological perspective, the road to ensuring a glitch free tournament was as much a part of the success of the event, as ensuring world-class stadiums and roads. The process started back when South Africa was awarded the tournament. There began a significant investment by all the major operators in particular, Vodacom, MTN, Neotel and Telkom. MTN SA says it has spent nearly R450m on network investments directly related to the 2010 soccer World Cup, including the rollout of dedicated infrastructure at all the stadiums used during the tournament. The company built additional infrastructure at stadiums to ensure fans could always make phone calls, connect to the Internet and to ensure the connectivity of residents in neighborhoods next to stadiums were not affected. At Soccer City in Soweto, for instance, the operator set up 22 base stations, containing a total of 38 cells and 348 antennae, serving specific zones within the stadium. Similar systems have been installed at OR Tambo International airport, at the new King Shaka airport in Durban and at Cape Town International airport. From a technology aspect, the legacy of the World Cup will be felt for generations to come and for that alone, we must rejoice. AT
News INFOTEL, AIRCEL AND QUALCOMM EMERGE VICTORIOUS IN INDIAN BWA AUCTIONS
INDIA’S BROADBAND WIRELESS ACCESS (BWA) spectrum auctions has now closed after 16 days and 117 rounds of bidding, netting the government an estimated INR257 billion (US$5.5 billion). According to an official statement by India’s Department of Telecoms (DoT), the big winners were fixed-line service provider Infotel, which paid INR128.48 billion for licenses in all 22 of India’s service areas; and Aircel, which won eight regional licenses for INR34.38 billion. Eleven companies in total competed for two bandwidth slots in each of the 22 service areas. The bandwidth is suitable for technologies such as WiMAX. The BWA auctions followed the completion of the 3G auctions in the country , which raised around INR677.2 billion but did not result in any operator obtaining a pan-Indian 3G footprint. Among the other winners of note in the BWA
auctions was US chip-maker Qualcomm, which secured spectrum in four service areas, including in Delhi and Mumbai, the two most expensive zones. The vendor has said previously it plans to use the spectrum for deployment of TD-LTE technology, a move that appears to be an attempt to derail the mobile WiMAX community (the technology normally associated with the spectrum). It is also in the process of finding an Indian partner to help build-out its new network. Reports in April said that Qualcomm had formed a joint venture with GTL, an Indian network services and infrastructure provider. Meanwhile, Indian mobile market leader Bharti also acquired BWA spectrum in four zones. In separate news, Reliance Industries, India's largest-listed conglomerate, is in talks to buy BWA license winner Infotel as it looks to enter the telecoms sector. AT
Verizon extends Skype offering US operator Verizon Wireless is to further push its Skype offering by expanding the number of handsets supporting the service beyond smartphones. Currently available on 12 smartphones (from the likes of RIM, Motorola and HTC), ‘Skype mobile’ will be offered on “several 3G multimedia phones” later this year. Although the operator did not disclose which devices would support the service, these phones are not as advanced as smartphones but offer a number of advanced features without an established operating system. Examples include Samsung’s Reality, LG’s en V Touch and Nokia’s 7705 Twist. Verizon will also offer Skype mobile in Korean and simple Chinese, in addition to the current Spanish and English formats. Verizon’s move indicates it is taking the VoIP partnership with Skype, initially announced at the GSMA Mobile World Congress last February, seriously. Skype-to-Skype calls are unlimited and free when initiated with Skype mobile from a compatible Verizon device with a data plan to any of Skype’s 580 million global users. The support of VoIP by the largest US mobile operator is also reflective of a change in attitude among mobile operators who have historically been hostile towards VoIP providers. AT
>> 1.73 billion Internet users worldwide as of Sept 2009; an 18% increase from the previous year >>
6 AFRICA TELECOMS
Issue 7
News MobPartner extends Mobile Affiliate Platform to iPhone Applications MOBPARTNER, the leading worldwide mobile affiliate network, recently announced that mobile affiliate campaigns are now available for iPhone applications. Based on Cost-per-Download model, this new opportunity allows all free and paid iPhone applications to generate new downloads at a fixed price. Gameloft, the leading games provider on the Apple Store, is the first advertiser to create their iPhone campaign for their famous games on MobPartner. Eve Arakelian, D2C Director at Gameloft, said: “We are really satisfied with the results of our wap affiliate campaign with MobPartner. Already 100 000 transactions have been generated since the launch last year. With the dynamics of the iPhone market, we are convinced that this new partnership with MobPartner will be a success.” For publishers and developers, easy integration
Safaricom expands mobile money service
Kenyan mobile money service M-PESA has been expanded to include the ability to transfer funds to an interest-earning bank account. The service, which is operated by Safaricom, offers customers the chance to save money using a direct link to Equity Bank. Launched in 2007, M-PESA has given over 9.5 million Kenyans a safe, cheap alternative to carrying cash, and the new service – known as M-KESHO aims to build on this. AT
of the MobPartner SDK will allow them to display MobPartner’s campaigns within their apps. They can choose the offers and banners they wish to display to their users in order to optimize their revenues. With CPA campaigns, MobPartner guarantees a 100% fill rate, in all countries. Many new iPhone campaigns are going to be launched in the coming weeks, for applications like games, dating, entertainment, utilities... Vianney Settini, co-CEO of MobPartner, says: “We are convinced that affiliate marketing is the future of mobile advertising. In contrast to CPM or CPC, Cost-per-Action campaigns are 100% risk-free for advertisers who want a good SEO and increase their position on the Apple Store. This is the key and the safest solution to get quickly into the much sought-after Top 100.”. From launch, all partners can create their campaigns on MobPartner, for short or long term. AT
China Mobile eyes African investment CHINA MOBILE – the world’s largest operator by subscribers – is interested in investing in Africa. "We pay much attention to the African operators, but we don't have a target company currently ... It is not easy to get an agreement for M&A,” Chief Executive Wang Jianzhou told Reuters. “We can have a majority, we'd also like to be the minority.” Meanwhile Bloomberg cites the operator’s head man as stating in a separate interview: “We are interested in doing business in Africa, but we have no target company now. We are still looking at options. We would like to use our experience [in expanding services in rural areas]. If we have an opportunity, we’d like to use that in African markets.” Fast-growing Africa is increasingly a focus for mobile operators in developed markets, due to its quickly rising middle class and relatively low mobile-phone penetration. The continent is also seeing stiffer competition among operators though; MTN Group, Africa's largest mobile operator, is facing a threat
from India's Bharti Airtel, which recently bought the African operations of Kuwait's Zain. China Mobile’s Wang declined to say if China Mobile had considered acquiring the sub-Saharan assets of Egypt's Orascom Telecom, which may have been part of MTN's recent failed acquisition talks with Orascom. China Mobile has long been linked to strengthening its overseas operations following its first deal in 2007 when it bought Pakistan’s Paktel (later rebranded Zong). AT
>> There are roughly 26 million blogs on the Internet . >>
Issue 7
AFRICA TELECOMS 7
News
NOKIA SEES MEEGO DEVICES AROUND YEAR-END, DISMISSES ANDROID NOKIA is to launch the first high-end devices based on its new MeeGo operating system around year-end and ruled out any plans to support the rival Android platform. New Mobile Solutions Chief Anssi Vanjoki said MeeGo will be the base for a wide array of new computer-like devices (e.g. tablets) as the market for handheld gadgets diversifies. MeeGo will support a rich environment for application development and strong support for functions such as GPS and Bluetooth, Mr Vanjoki added. Meanwhile, he confirmed that Nokia doesn’t plan to launch any phones based on the increasingly popular Android platform because it can create more value by building its own hardware and software. Nokia, also confirmed it is to ditch Symbian software for its future highend smartphones, turning instead to the Linux-based MeeGo platform formed from its joint venture with Intel. The Finnish company’s next smartphone, the N8, will be the last N-series phone running Symbian software. The N8 will be launched in the third quarter and will run the upgraded Symbian 3 platform. Nokia will continue to use
Symbian for its vast portfolio of cheaper smartphones. Announced at the GSMA Mobile World Congress earlier this year, MeeGo combines Intel’s Moblin and Nokia’s Maemo open source projects into one Linux-based software platform hosted by the Linux Foundation. The project has already received backing from France Telecom’s Orange and Telefonica, as well as numerous OEMs and application developers. The platform is the latest open-source mobile operating system to take on Google’s Android, which is also Linux-based. In related news, Nokia and Intel have released an early version of the Linux-based MeeGo mobile OS to developers, in preparation of the launch of a retail-ready version in October. The joint MeeGo Project has made programming APIs, parts of the handset reference UI and the MeeGo Core OS available, and has stuck by Linux tradition by also releasing the source code. According to MeeGo Project, the release also marks the completion of the combination of Nokia's Maemo and Intel's Moblin OSes. AT
Telkom appoints Hedberg as acting CEO
Shaw contracts NSN for mobile rollout
South Africa’s telecom parastal Telkom has appointed Jeffrey Hedberg, head of its struggling Nigerian unit, as acting Group Chief Executive to replace Reuben September. September will retire as GCEO in November at the end of his contract, Telkom said in a statement. However, September and the Telkom board had now agreed that he step down as GCEO and resign as a director from July 7, 2010. Hedberg is regarded as a turnaround specialist and was brought into the company to assist with struggling Nigeria's Multi-Links, after he helped South Africa's smallest cellphone operator Cell C. "These arrangements provide leadership, continuity and stability at an important time given a number of key strategic and operational deliverables," Telkom said. "A successor to September will be announced in due course." Hedberg was initially employed as CEO of Telkom's Nigerian subsidiary Multi-Links. September worked at Telkom for 33 years. AT
Telegeography reports that Canadian startup operator Shaw has selected Nokia Siemens Network to provide network kit for its planned next generation mobile network, which will be designed to be fully capable of offering both 3G and LTE services using its existing Advanced Wireless Services 2100MHz spectrum, as well as future frequency bands to be auctioned in Canada. Shaw says its wireless network will be fully integrated into its extensive fibre-optic network to maximise data speeds available to users. The Cable Company is investing approximately C$100 million on its mobile development in the current fiscal year ending August 2010, and anticipates a commercial wireless launch in late 2011. AT
>>Apple’s iTunes Store has a catalog of 12 million songs, over 55,000 TV episodes, and 8,500 movies. It has sold more than 10 billion songs. >>
8 AFRICA TELECOMS Issue 7
News
NEW SUBMARINE CABLE PAVES WAY FOR CHEAPER INTERNET IN GROWING MARKETS LAGOS (Reuters) - An eagerly-awaited submarine cable linking West Africa to Europe has gone live, paving the way for cheaper and more reliable internet access in one of the world's fastest-growing telecoms markets. The 7,000 km (4,350 mile) fiber optic Main One Cable runs from Portugal to Nigeria and Ghana, and also branches out to Morocco, the Canary Islands, Senegal and Ivory Coast. The Main One Cable Company says it delivers more than ten times the broadband capacity of the South Atlantic Terminal (SAT-3), Nigeria's sole existing undersea cable, and 20 times the entire satellite capacity of sub-Saharan Africa. "The ramifications of Main One's cable will be felt in all sectors -- from education, to health, to entertainment, helping drive economic growth and creating job opportunities all over Africa," the company said in a statement. An expanding network and falling prices are expected to fuel explosive growth in mobile broadband in Africa over the next few years, particularly Nigeria, which has overtaken South Africa to become the
continent's largest mobile telecoms market. Internet connectivity in Nigeria, Africa's most populous nation of 140 million people, is expensive and unreliable and many businesses are forced to rely on satellite communications. Enhanced capacity will bring more competition among big operators such as South Africa's MTN and India's Bharti, who completed a $9 billion acquisition of the African operations of Kuwait's Zain. "Given the increase in bandwidth and the falling cost of accessing that bandwidth, it is really going to move West Africa and Nigeria into the 21st century," said Andrew Alli, Chief Executive Officer of the Africa Finance Corporation (AFC), which financed $37 million of the $240 million project. "There now needs to be investment within Nigeria to take that capacity to the end-user." There are around 10 undersea cables either under construction or in the planning stages around the whole of Africa. A second new fiber optic cable owned by Nigerian telecoms firm Globacom is also due to go live this year. AT
>>Twitter users send out 50 million tweets per day, an average of 600 tweets per second. >>
Issue 7
AFRICA TELECOMS 9
News NOKIA AND MICROSOFT DEBUT ALLIANCE APP Microsoft is to axe its Kin family of mobile phones aimed at young, social networking consumers, less than three months after unveiling the products. Poor sales are believed to have been blamed for the decision. It is reported that the cost of the devices had been cut by around half. Following the launch of the two devices via US operator Verizon Wireless in May, the plan was for Vodafone to sell the portfolio in Europe this autumn. That plan has now been shelved. In a statement, Microsoft said it will work with Verizon to sell its remaining supplies of Kin in the US. Microsoft employees who worked on the Kin project will be folded into the company team working on Windows Phone 7, the company’s new operating system for mobile phones that is expected to ship on handsets by the holiday season (although the failure of Kin may strengthen recent rumours that the release of Windows Phone 7 devices could be available as early as October). “It’s an absolute failure,” remarked Charles S. Golvin, an analyst at Forrester Research, on the demise of Kin. The portfolio is believed to have taken two years to develop and had a large marketing campaign budget. The New York Times notes that it raises question marks over Microsoft's credibility, especially as it recently cancelled a project to develop a tablet computer that would compete with Apple’s popular iPad. Many believe the future success of Microsoft’s mobile division now rests firmly with the fortunes of the Windows Phone 7 platform. AT
Gilat to provide satellite communications equipment for SchoolNet project expansion in Ethiopia Gilat Satellite Networks Ltd. has been chosen by Ethiopian Telecommunication Corp. (ETC), Ethiopia's national telecom operator, to provide satellite communications equipment which will be deployed as part of the nationwide SchoolNet project. SchoolNet is a satellite-based network which provides Internet connectivity as well as TVbroadcast educational content to secondary schools across Ethiopia. The network has successfully enabled students in hundreds of rural schools to enjoy equal learning opportunities like those
of their colleagues in urban schools throughout the country. ETC is now expanding the network to serve several hundred additional schools and will integrate Gilat's satellite communications equipment as part of this expansion. Gilat has enjoyed a successful business relationship with ETC for close to 12 years. Recently, Gilat announced that it is providing an upgrade to ETC's existing Gilat VSAT network to enable ETC to deliver advanced broadband services, which include video and datacentric applications, to meet the growing demands of its enterprise
and government customers. ETC is also deploying Gilat's VSATs at remote community centers nationwide to provide citizens with toll-quality telephony and reliable broadband internet access. Nir Korman, Gilat's Regional Vice President, Africa, said, "We are pleased to take part in such an important project which is helping to shape the future of education in Ethiopia and to once again help ETC fulfill its commitment to provide advanced services that meet the critical communications requirements of the country." AT
>> 81.8 million .COM domain names at the end of 2009; 12.3 million .NET names & 7.8 million .ORG names. >>
10 AFRICA TELECOMS Issue 7
News
MENATELECOM SIGNS EXPANSION CONTRACT WITH MOTOROLA TO 100,000 SUBSCRIBER CAPACITY MENATELECOM, the second largest internet service provider in the Kingdom of Bahrain, has recently signed up with Motorola, the worldwide leader in developing and deploying WiMAX 802.16e networks and consumer devices, to boost its WIMAX network capacity and coverage in Bahrain to handle 100,000 subscribers. This has been initiated as the company recognised a sharp rise in its broadband subscriber base, which recently exceeded 45,000 subscribers within only 18 months of service. This trend is expected to rise significantly in the coming year. Mr. Abdulhakeem Al Khayyat, Managing Director & CEO of Kuwait Finance House – Bahrain and Chairman of Menatelecom commented on the expansion,"We at Menatelecom have been able to maintain and increase our growth expectations in terms of financial and operational parameters. This means that we remain on course to achieving our goal of being one of the top operators in the region. Our growth is fuelled by the success of our products and through our successful investment in new technologies. We are moving to expand our service portfolio steadily as we look to consolidate our market
position and realize our long-term goals", he added. “Menatelecom’s initiatives within this area are very much in line with the Kingdom of Bahrain’s Economic Vision 2030, which has, as part of its primary focus, the aim of further developing its telecommunications sector,” said Mr. Abdul Razak Jawahery, Executive Manager at Kuwait Finance House - Bahrain (KFH-Bahrain), and Vice Chairman and Managing Director of Menatelecom. Echoing sentiments expressed recently by the Minister of State for Cabinet Affairs Shaikh Ahmed bin Ateyatala Al Khalifa, Mr. Jawahery added, “Information Communications Technology is considered to be one of the key factors in achieving this economic vision and making Bahrain a telecommunications hub and at Menatelecom, we share this vision and constantly strive to make it a reality.” “Menatelecom’s network expansion underscores its vision and foresight to advancing the way people and businesses connect in Bahrain,” said Ali Amer, vice president and general manager, Motorola Networks EMEA. ATT
>>In 2006, Internet users in the United States viewed an average of 120.5 Web pages each day.>>
Issue 7 AFRICA TELECOMS 11
News
NEW OWNERS OF ZAIN TO PUMP $200 MILLION INTO OPERATIONS BHARTI AIRTEL, THE NEW COMPANY that has acquired the African operations of Zain, is pumping $200 million dollars to expand its operations in Ghana. Mr Manoj Kohli, Chief Executive Officer (International) of Bharti Airtel Africa, told journalists in Accra that the company had arrived in Ghana for the long run and wanted to be a partner in the growth story of the country. The company, which only recently paid 10.7 billion dollars for Zain's African operations, reiterated its long-term commitment to Ghana and contribute to the growth of the telecommunications sector by providing "affordable services that touch the common man". Kohli said the company would continue to work with the government by providing Foreign Direct Investment with a multiplier effect that would result in raising the standard and quality of living of the citizenry across every nook and cranny of the country. "We are committed to offering affordable services, deep network coverage and distribution backed by a
superior brand experience to customers," Mr Kohli said. He noted that telecommunication services are expensive in Ghana and said the new company is of the firm belief that citizens deserve more affordability. "There is tremendous opportunity in Ghana. I believe that our unique business model will allow us to unlock the true potential of Ghana." Mr Kohli spoke about sharing costs with other telecommunication companies, in terms of some facilities, to cut down costs saying they would bring their experience in India where costs have been brought very low to make the rural people benefit and use telecommunication gadgets to their advantage. "The customers need choice," he said, and threw his weight behind the move to implement mobile number portability. "We believe we have inherited very well run operations in Ghana and look forward to working with our team of highly talented professionals and take these operations from strength to strength.
Bharti Airtel has planned to bring its ecosystem of global partners to Ghana and this would result in additional employment opportunities. "The company also plans to introduce its Corporate Social Responsibility programme in Ghana under which it will set up schools that offer free quality education to underprivileged children in rural areas," Kohli said. Bharti Airtel is now in Burkina Faso, Chad, Congo Brazzaville, DR Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. With the successful completion of Zain's acquisition, Bharti Airtel is now the fifth largest mobile company in the world with 180 million customers. Mr Philip Sowah, Chief Executive Officer of Zain Ghana expressed gladness that Bharti Airtel had landed in Ghana with its vast technological know-how and corporate social responsibility initiatives that promise to add value to millions of people. Ghana National Petroleum Corporation has 25 per cent shares in the company. AT
>> YouTube reports that 20 hours of video are uploaded to the site every minute,[10] and 1 billion videos are served up daily by YouTube. >>
12 AFRICA TELECOMS Issue 7
News Transit Telecom - ooVoo is
leading the evolution in high quality, video-driven communication
With video as the fastest growing contributor to data usage over Internet Protocol (IP) networks, ooVoo is leading the evolution in high quality, video-driven communication delivered anywhere and anytime. "The ooVoo service is being adopted by major carriers around the world,” said Rodger Wells, Director Vice President of Business Development at ooVoo. “In Brazil, we chose Transit for its innovative profile and the company’s focus on the latest trends in communication over the Internet." Transit Telecom has a history of innovation in developing solutions for telecommunications in Brazil. The video-driven communication service provided by ooVoo, a privately-held company based in New York, was brought to Brazil by Transit Telecom. Key differentiators of the ooVoo service include real-time videoconferencing for up to six people simultaneously, computer-to-phone calls to more than 30 countries at affordable prices, text chat with contacts during video calls, desktop sharing of files with users while on video calls, and the ability to record and send video messages up to five minutes in duration. “The ooVoo communications service is ideal for people and businesses who want to reduce travel costs and increase productivity,” said Jorge Noboru Nakamura, Director of Marketing and Products at Transit. “Compared to current solutions that are somewhat limited, the features provided by ooVoo and Transit meet the communication needs of small-tomid-sized businesses and corporate users." Users can download the tool on the Transit portal. The free service includes chat and video conferencing between two users. Business plans for up to 6-way multi-point video calls are available for easy administration. Transit will also provide a trade group specifically to serve customers who want a solution for corporate use. AT
HP Networking is open for business AS THE HP ACQUISITION of 3Com is finalised in South Africa, Lorna Hardie has been confirmed as HP Networking country manager for South Africa while formerly regional manager for 3Com, is the HP Networking country manager for Africa. Hardie has been with HP for well over 10 years. Prior to her role within the HP Networking division, Lorna developed and managed the HP Imaging & Printing Group’s business for English-peaking Africa and was responsible for channel management across southern Africa. She will continue to manage the overall HP Networking business across the board including sales and marketing, product management, account
management, forecasting, planning and training. Wiggill has been with 3Com for three years and, in his new role at HP, will be responsible for defining strategy for the company beyond the borders of South Africa. “Derek has an excellent track-record and will help to drive future growth in Africa. His extensive experience in telecommunications, consultancy and channel management on the continent makes him an excellent fit for this role,” says Hardie. “Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor. By acquiring
3Com we are accelerating the execution of our Converged Infrastructure strategy and bringing disruptive change to the networking industry,” she adds. The new HP networking has been formed as a result of integrating 3Com’s network switching, routing and security solutions with its existing HP Networking solutions. AT
Issue 7 AFRICA TELECOMS 13
News
HTC posts record revenue as momentum grows
TAIWANESE SMARTPHONE MANUFACTURER HTC revenues and a 32.8 percent jump in profit. yesterday reported a 58.5 percent year-on-year billion), whilst unaudited net profit came in at a was the company’s highest quarterly unaudited profit for the fourth quarter of 2007, before bonuses as expenses. The results far exceeded said it expected second-quarter revenue to rise 50 percent from a year earlier to 4.5 million hit record highs, [showing] good execution of in a statement. HTC is a fast-rising player in the mobile phones, it began making own-brand devices a most innovative smartphone manufacturers. phones using Microsoft's operating system biggest proponent of Google’s Android OS, such as the Droid Incredible, Desire and Evo. in the second half of the year. Yuanta Securities she expects HTC's shipments to rise to 20 million
continues to impress with record second-quarter The world’s fourth-largest smartphone vendor jump in revenue, to NT$60.53 billion (US$1.88 2.5-year high (NT$8.64 billion/US$268 million). This net profit since it reported a NT$9.99 billion net Taiwanese companies started to treat employee internal expectations; in late April the company grow to NT$50 billion and handset shipments to units. “Both June and 2Q revenues continuously brand strategy and grow scale strategy,” noted HTC handset space. Originally a contract maker of few years ago and is now regarded as one of the As well as being the world's largest maker of (OS) in terms of shipments, it is also arguably the producing critically acclaimed high-end devices Analysts expect the strong momentum to continue analyst Bonnie Chang told Dow Jones Newswires units this year, up from 12 million in 2009. AT
Google CEO rules out Nexus One successor GOOGLE CEO ERIC SCHMIDT (pictured) has said the firm will not launch a new version of its own-branded Nexus One smartphone, claiming the original device has been a success despite reports of weak sales. In an interview with the UK’s Daily Telegraph newspaper, Schmidt said that the Nexus One “was so successful, we didn't have to do a second one.” He continued: “The idea a year and a half ago was to do the Nexus One to try to move the phone platform hardware business forward. It clearly did.” He added that the shift in strategy away from producing its own phones was proof of Google’s “flexibility” and “characteristic of [our] nimbleness.” Google launched the HTC-manufactured Nexus One in January making it available SIM-free and unlocked via the web, marking the first time the Internet search
" The Apple model is the inverse." Google CEO, Eric Schmidt
giant has sold a hardware device directly to consumers. However, according to independent studies, the firm shifted just 135,000 phones in its first two months. It has since started selling the Nexus One via operator stores in a bid to boost sales. Elsewhere in his interview, Schmidt was keen to play down the conflict between Google and Apple, despite the fact that the latest version of Google’s Android mobile platform coincided with the launch of the new iPhone. "We don't have a plan to beat Apple, that's not how we operate," said Schmidt. "We're trying to do something different than Apple and the good news is that Apple is making that very easy. The difference between the Apple model and the Google model is easy to understand - they're completely different. The Google model is completely open. You can basically take the software - it's free - you can modify whatever you want, you can add any kind of app, you can build any kind of business model on top of it and you can add any kind of hardware. The Apple model is the inverse." AT
>> Developers have created over 140,000 apps for the Apple iPhone and iPod and iPad and made them available in the Apple App Store. >>
14 AFRICA TELECOMS Issue 7
Global Leaders in Radio Communication
Talk2us - www.talk2us.co.za - CE#512
• WiMax in Licensed and Unlicensed frequency bands • Icom Digital Two-way Radio • Microwave Backhaul Wireless Access
SA Multisource Telecoms (Pty) Ltd Telephone Email Website
+27 (0) 11 321 0333 info@multisource.co.za http://www.multisource.co.za
Multisource Western Cape:
Samantha Van Jaarsveld Telephone Mobile Email
SA Dealer Sales Executive +27 (0)21 555 1574 +27 (0)76 483 3580 sam@multisource.co.za
Multisource KwaZulu Natal:
Deon Swanepoel Mobile Email
SA Dealer Sales Executive +27 (0) 84 555 0333 deon@multisource.co.za
Multisource Generic Advert 1-2 (Africa Telecom).indd 1
2010/07/16 03:58:28 PM
EVENTS CALENDAR EVENT
DATE
aug
sep
02
Julie Phillips +27 11 516 4058
2010 Terrapinn
www.terrapinn.com/2010
Ghana
Rumana Bukht +44 208 600 3800
http://www.cto.int
17-19
5Th COnnECTIng RuRAL COMMunITIES FORuM 2010
Accra Ghana
Rumana Bukht +44 208 600 3800
http://www.cto.int
Cape Town South Africa
Julie Phillips +27 11 516 4058
www.comworldseries.com
Lagos Nigeria
Caroline Wiezien +44 207 017 5605
Sri-Lanka
Rumana Bukht +44 208 600 3800
http://www.cto.int
Maputu Mozambique
Helen Moroney +44 148 088 0774
www.aitecafrica.com
Cairo Egypt
Veronika Pete +44 207 017 5818
Informa Telecoms & Media
Cape Town South Africa
Caroline Wiezien +44 207 017 5605
Informa Telecoms & Media
13
TELECOMS wORLd AFRICA 2010 nIgERIA COM
20-24
8Th AnnuAL CTO FORuM 2010
06-07
AITEC MOzAMbIquE ICT COngRESS
10 17-18 30
jan
Johannesburg South Africa
ORGANISER
COMARCIIn-COunTRy wORkShOpS
26
nov
CONTACT
11-14
28
oct
ThE InTERnET ShOw
CITY
20-21 26-27
nORTh AFRICA COM AFRICACOM gSMA MObILE ASIA COngRESS gSM 3g MIddLE EAST TELCO wORLd SuMMIT
3.9 g InTERnATIOnAL SuMMIT MAnAgEMEnT wORLd ASIA 2011
30 AFRICA TELECOMS Issue 6 2010
C.T.O
C.T.O
Terrapinn
Informa Telecoms & Media www.comworldseries.com
C.T.O
AITEC Africa
www.comworldseries.com
www.comworldseries.com
GSMA Hong Kong
www.mobileasiacongress.com
Dubai UAE
Veronika Pete +44 207 017 5818
Cape Town South Africa
Patricia Chong +65 6391 2555
Informa Telecoms & Media
2011 www.comworldseries.com/me
Magenta Global
www.magenta-global.com.sg
TM Forum Singapore
http://www.tmforum.org
AuguST 2010 - SEpTEmbER 2011 DATE
EVENT
feb 01-01
6Th AnnuAL dIgITAL bROAdCASTIng SwITChOvER FORuM SOuTh AFRICA South Africa
11-17
mar01-02
gSMA MObILE wORLd COngRESS MAnAgEMEnT wORLd MIddLE EAST 2011
01-03
5Th AnnuAL E-gOv AFRICA FORuM
02-03
AITEC bAnkIng & MObILE MOnEy COMESA 2011 hR4ICT11
21-23
CITY
Rumana Bukht +44 208 600 3800
ORGANISER C.T.O http://www.cto.int
Barcelona Spain
www.mobileworldcongress.com
Dubai UAE
http://www.tmforum.org
GSMA
TM Forum
Rumana Bukht +44 208 600 3800
http://www.cto.int
Nairobi Kenya
Helen Moroney +44 148 088 0774
www.aitecafrica.com
Nairobi Kenya
Rumana Bukht +44 208 600 3800
http://www.cto.int
C.T.O
AITEC Africa C.T.O
28
pREpAId CARdS AFRICA 2011
Johannesburg South Africa
Julie Phillips +27 11 516 4058
www.terrapinn.com/2011
31
MObILE MOnEy wORLd AFRICA
Johannesburg South Africa
Julie Phillips +27 11 516 4058
www.terrapinn.com/2011
Nairobi Kenya
Veronika Pete +44 207 017 5818 Helen Moroney +44 148 088 0774
apr 12-13
EAST AFRICA COM
may11-12
AITEC bAnkIng & MObILE MOnEy wEST AFRICA 2011
Accra Ghana
MAnAgEMEnT wORLd 2011
Nice France
23-27 30
jun 15-16 jul
CONTACT
20-21
sep 28-29
SATCOM 2011 AFRICA wEST & CEnTRAL AFRICA COM MAnAgEMEnT wORLd AFRICA 2011
Terrapinn
Informa Telecoms & Media www.comworldseries.com
AITEC Africa www.aitecafrica.com
TM Forum http://www.tmforum.org
Johannesburg South Africa
Julie Phillips +27 11 516 4058
Dakar Senegal
Veronika Pete +44 207 017 5818
Johannesburg South Africa
Johannesburg AITEC bAnkIng & MObILE South Africa MOnEy SOuThERn AFRICA 2011
Terrapinn
Terrapinn www.terrapinn.com/2011
Informa Telecoms & Media www.comworldseries.com
TM Forum http://www.tmforum.org
Helen Moroney +44 148 088 0774
AITEC Africa www.aitecafrica.com
If you would like Africa Telecoms to add an event to the calendar, please contact Mr. Bradley Shaw at: bshaw@3ipublishing.co.za
Issue 6 2010 AFRICA TELECOMS 31
Gadgets
Africa Telecoms gives you the inside scoop on what’s hot in the digital consumer world. H Uncool HH Poor HHH Average HHHH Excellent
HHHHH Died and gone to heaven
Nokia E72 smartphone
Apple Time Capsule
NEED TO KNOW
NEED TO KNOW
Multimedia-friendly smartphone, 4GB MicroSD card included,
500GB or 1TB storage capacity, 802.11n Wireless Networking, USB port allows
3G/GPRS/HSDPA/WLAN connectivity.
for printer sharing, Windows and Mac compatible
Nokia E-series one-touch keys for Home, Calendar, Contacts and Email. Cost: 1 TB – Approximately R3 200 Cost: Approximately R5 500
2 TB – Approximately R5 300
Rating: HHHH Rating: HHHHH The E72 is the upgrade from the E71 and it brings with it perks like a faster processor, more memory, and a better camera. The phone’s design is still sleek
No small business should be without a wireless network and the same holds
and sturdy and it offers excellent messaging capabilities as well as 3G support,
true for backups. While more offices are becoming kitted out with these
Wi-Fi, Bluetooth, and built-in GPS navigation.
functionality, generally speaking these requirements are considered and
Aimed at business users, you’ll get the full constantly-in-touch experience
catered for, separately. The exception to the rule is Apple’s Time Capsule; this
with push e-mail and your own personal assistant with the E72’s Organiser,
product is an automated wireless access point and server-grade backup hard
Document editor, which comes with mobile-friendly versions of Word, Excel,
disk all in one device.
PowerPoint and a PDF-viewer.
Essentially, by combining wireless networking with a robust hard disk, the aptly
In terms of doing the important things that a phone needs to do, like call and
named Time Capsule allows users to perform their Time Machine backups with
send text messages, the E72 ticks all the right boxes and there’s conference-
far greater ease than ever before. With a Time Capsule all you have to do is
calling with up to six participants and VoIP calls.
connect to the wireless network and this device automatically takes care of
The one thing that definitely was impressive about this device is its battery
business. And since the wireless network created by the Time Capsule makes
life – it was two or three days of heavy usage before the E72 required a
use of the 802.11n standard, it’s faster than most wired connections today.
recharge. Combine that impressive battery life with user-friendly applications
The Time Capsule is also equipped with a USB port, a Gigabit WAN port
and complete business and messaging functionality, as well as more calling
and three Gigabit Ethernet ports, allowing you to configure your network,
options than one person can handle and put them together in one device.
computers and printers, any way you like. So, while the price tag might seem a
What do you get? The E72 and it’s a really smart, beautifully simple business
little excessive for a network-based hard disk, the features of the Time Capsule
handset that does everything any power-user could expect.
add more value than you’d expect from such a small device.
20 AFRICA TELECOMS Issue 7 2010
GaDGETs
acer Timeline X 4820T
TomTom GO 750 GPs
NEED TO KNOW
NEED TO KNOW
Evolution of 2009’s Timeline series, Retains the same thin lightweight design,
Pre-installed maps of Southern Africa & Europe, TomTom Google Search,
Great mix of performance and power efficiency
Responds to voice commands, Make hands-free calls
COsT: Approximately R10 000
COsT: Approximately R 3 000
RaTiNG: HHHHH
RaTiNG: HHHH
Last year, Acer brought out its new Timeline range - they were slim, looked
The TomTom GO 750 adds voice control to its functionality collection. In terms
great and delivered on the promise of longer-lasting batteries, but at the
of looks, the important features remain the same: an interface that’s controlled
cost of performance. This year, Acer has brought out new Timeline laptops,
entirely by a finger-operated touch screen and a button for power. A more
called the Timeline X range, that offer a much better balance between good
curved shape, a silver border around the screen and metallic grey back-casing
performance and solid battery life. The 14-inch 4820T, sits nicely in the middle
distinguish the TomTom GO 750 from those that came before.
of the range, as it has great hardware, its battery lasts around five hours and it
Searching for an address is made easier by the fact that the device offers voice
doesn’t cost the earth.
control. There are more than 140 commands that you can use; in addition to
Scoring high with this device is the fact that its waistline has not been slimmed
finding your way to an address, you can also avoid a roadblock, zoom in and
by leaving out ports – there’s plenty here - USB, card readers, a VGA and even
out of the map, increase the volume, and add any location to your favourites.
an HDMI output. The LED-backlit display is simply stunning and this one has a
Once your destination has been selected, your GO 750 displays the fastest
native resolution of 1366 x 768, and it’s just gorgeous to look at.
route available using IQ Routes and allows you to modify it if necessary. Here
Where this new model gets its power is in its choice of processor – Intel’s
you can avoid a roadblock, calculate an alternative route or make different
Core i3-350M, which has an integrated graphics unit that handles all visuals
stops along the way. The IQ Routes technology is based on actual user data
when the laptop is unplugged from the mains, which saves power. Acer
rather than the traditional maximum speed process.
has also included a dedicated ATI HD5650 graphics card for more intensive
This device also includes a Bluetooth hands-free function for making calls
3D applications, and to access it users must manually switch between the
through your Bluetooth-enabled mobile phone. Perfect for complying with
integrated graphics unit and the ATI card.
traffic legislation that requires a hands-free kit if you’re going to be making
This balancing act between power and battery puts the 4820T squarely in the
calls while cruising the roads.
sights of anyone looking for a notebook that performs well, lasts more than
TomTom is dedicated to keeping you safe, both on the road and in an
just three hours on a charge and looks great to boot. It’s a solid evolution of
emergency and if you’re looking for a reliable traveling companion, look no
the Timeline concept, and betters its predecessors in every way that counts.
further than the GO 750.
Issue 7 2010 AFRICA TELECOMS 21
GaDGETs
acer eMachines V700 HD Projector
Canon selphy Es3 Wireless Photo Printer
NEED TO KNOW
NEED TO KNOW
One of the cheapest HD-ready projectors available, Native resolution
Portable photo printing companion, Multiple connectivity options , 1 GB
of 720p; 1080p also supported, HDMI input connects to consoles
built-in memory stores up to 999 photos, Edit photos without using a PC
& Blu-ray players COsT: Approximately R 1 200 COsT: Approximately R 8 000
RaTiNG: HHHHH
RaTiNG: HHHH Having a digital camera that you can take anywhere is great. Being able to take With home entertainment taking off in a big way, an HD projector is a big deal.
photos whenever and wherever you like, is convenient. The only inconvenient
What we liked about the V700 is the fact that it not only has a native projection
part is having to wait until you get home to edit and print your snaps. This
resolution of 1280 x 720 (i.e. 720p), but it can also handle other resolutions, all
inconvenience is a thing of the past, with the Canon Selphy ES3 you can edit
the way up to 1920 x 1080 (1080p) and the projected image is excellent.
and print your photos, wherever you like, to produce customised unique
What’s important to consider when buying a projector is its rated lamp life.
photo prints whenever the creativity bug strikes.
The V700 clocks in at 4 000 hours, respectable for such an affordable projector,
This device is all about portability and convenience - you no longer need a PC to
but of course that depends heavily on how often you use your projector and
edit or print your photos – everything can be done directly on the printer. The
which settings you choose. The projector is ceiling-mountable, has a built-in
Selphy ES3 is compatible with over 20 different kinds of memory cards and is
speaker for those times you want sound with your pictures.
PictBridge enabled – allowing you to upload snaps directly from your camera.
One of the best features on offer is ‘Instant Resume’. For a period of two minutes
There’s also Bluetooth, which allows you to print photos that you’ve taken on
after the projector has been turned off, you can press the Power button again
your mobile phone or stored on any other Bluetooth enabled device.
and immediately pick up where you left off without waiting for the projector
The onboard 1GB of flash memory is a big bonus, it lets you do things like
to warm up again. Sheer genius!
copy all your photos to the device and take it along with you and print photos
We think the eMachines V700 projector is a really good place to start if you’re
on demand, eliminating the need to carry memory cards or your camera
a budding home cinema enthusiast or business person. It can accept input
with you. When it comes to portability and convenience in the field of digital
from gaming consoles and Blu-ray players via HDMI, setup is very simple and
photography, the Canon Selphy ES3 is fun, light-hearted and practical. Best of
the image quality is very good even in well-lit rooms. For less than eight grand,
all, it’s beyond simple to use – and this ease of use, along with great quality
you’ll be getting a very good bargain.
prints, is what earns the Canon Selphy ES3, the thumbs up from us.
22 AFRICA TELECOMS Issue 7 2010
GaDGETs
Logitech Professional Presenter R800
Packard Bell Gateway VR46 Valentino Rossi Netbook NEED TO KNOW Bold, racy design, Impressive battery life, Microsoft Windows 7 Home
NEED TO KNOW
Premium, Built-in webcam
Green laser pointer makes presentations a snap, 30m effective range with 2.4 GHz wireless technology, LCD display with timer, battery-power and reception-
COsT: TBC
level indicators, Intuitive controls for easy, one-touch slideshow navigation
RaTiNG: HHHHH
COsT: Approximately R1 100
If you’re a fan of the Moto GP, you’ll know what the number 46 means. Nine
RaTiNG: HHHHH
times world champion, Rossi is now lending his name and number to a slick, racy netbook made by Packard Bell and named the VR46.
If presentations are a big part of your work life, chances are you need to add
If you could take a look under the hood of this beast, you’d see an Intel
the Logitech Professional Presenter to your arsenal. Let’s have a look at the
Dual Core SU4100 processor with a run rate of 1.2GHz, usually only used on
reasons why it’s a must-have for the PowerPoint junkies.
a full-power notebook – meaning this netbook is all about performance.
It’s easy to get everyone to see your point with this device - it’s brilliant green
Furthermore, it’s beefed up with 3GB of RAM and has masses of storage space
laser is strong enough to be seen clearly, even across a large conference hall.
with a 320GB hard drive, all of which make this netbook snappy, spacious and
Switch smoothly and confidently from slide to slide with intuitive one-touch
smart. That Intel processor isn’t only just for thinking power – it’s also ultra-low
controls located on a convenient remote that fits snugly in your hand.
voltage, which means only good things for battery life.
This device allows you to focus entirely on your presentation instead of the
When you open it up, you’ll probably admire the brilliance that is the 11.6-inch
clock, as it has an easy-to-set timer and vibrating alerts help you manage your
Diamond View display screen with 1366 × 768 pixels of viewing real estate
time efficiently. With no wires or cables, there’s nothing to hold you keep you
that’s powered by an Intel integrated graphics card and an Intel GS45 Express
from moving around and working the room. The device has a range of 30m
chipset. It wouldn’t be a netbook without a having an impressive offering in
and the built-in reception-level indicator on the LCD display keeps you from
terms of connectivity. You can choose between 802.11b/g/n wireless, Ethernet
going astray.
connectivity and built-in Wi-Fi and Bluetooth 2.1. In terms of hooking up and
When it came to setup, it was a simple matter of plugging the nifty, reliable
plugging in, there’re three USB ports, a VGA port, a 5-in-one memory card
2.4 GHz receiver into the computer’s USB port and the device is ready to rock
reader and an HDMI-out port that lets you hook up to your television or an
any presentation, with absolutely no software needed for installation. Once
external monitor. The real cherry on top of this sweet deal is the excellent
the presentation is done, the receiver can be stored in the built-in docking bay
software package included. Microsoft Works provides basic home office
inside the presenter remote.
tools, Norton Internet Security protects you and your data when online and
So if you’re looking for a compact, ergonomic powerful presentation tool,
Adobe Photoshop Elements delivers hassle-free, easy-to-use photo editing
we suggest that you stop looking and rush out and purchase the Logitech
capability. If you’re looking for a machine that’s rugged, good-looking, brainy
Professional Presenter R800 – you wont have a moment’s regret with this one.
and powerful to fit into your busy lifestyle, look no further.
Issue 7 2010 AFRICA TELECOMS 23
THOUGHT LEADERSHIP
Mike van den Bergh CEO of Gateway Communications
Plugging in to the BY BRETT HAGGARD
Mike van den Bergh, CEO of Gateway Communications gives his views on the numerous undersea cable projects presently underway and the growing demand for communications in Africa. He sees the African continent swiftly coming out of its digital dark age.
24 AFRICA TELECOMS Issue 7
WORLD
LEAD STORY
Issue 7
AFRICA TELECOMS 25
“
”
THE RESTRUCTURING WAS A GREAT IDEA, SINCE IT GIVES OUR TELCO AND ISP FOCUSED BUSINESS UNIT – KNOWN AS GATEWAY COMMUNICATIONS – THE ABILITY TO DELIVER A RANGE OF HIGHLYFOCUSED SERVICES INTO AFRICA.
R
IGHT AT THE FOREFRONT OF AFRICA'S EMERGENCE,
are companies like Gateway Communications – who provide a variety of wireless, satellite and terrestrial network services to the African telco and business sectors. They are going from strength to strength. That's possibly one of the primary reasons Vodacom’s decision to acquire Gateway Communications a little more than a year and a half ago couldn’t have been more perfectly timed. Since the acquisition, Mike van den Bergh, Gateway Communications’ CEO says the company has restructured slightly and that efforts to become more tightly integrated with Vodacom are going well. “Prior to the acquisition, we were providing all forms of network services to carriers, large enterprises and multi-national corporations (MNCs). “A year ago however, we realized that this structure doesn’t make perfect sense – since telcos, large enterprises and MNCs have different needs,” he says.
Cup and the semi-finals, representing a 40% increase in traffic for that time of year. “Add to that, Pyramid research’s prediction that SMS revenues will double to $12 billion by 2013 and it’s clear why this is a focus for the mobile telcos,” he says. The popular market opinion that increasing data revenues and sliding voice revenues will ultimately mean the data market swallows the voice market and all forms of mobile communications traffic gets carried across a single, converged,
WHERE’S THE REVENUE AT?
Another reason van den Bergh believes Vodacom will see a great deal of value from its acquisition of Gateway Communications is the fact that the revenue scales are beginning to tip in the direction of data. “There are a couple of realities telcos are having to deal with at present,” he says, “and one of the most sobering is the fact that although voice is still the dominant revenue driver in their business right now, data is where the real growth is taking place. “Data needs to be a big focus because voice rates are decreasing – a trend that’s driven predominantly by the increased competition in the market (and the drop in margin telcos are having to contend with in order to remain competitive), as well as the decrease in mobile termination rates,” he says. Interestingly enough, van den Bergh says SMS is a huge driver when it comes to mobile data – since it’s accessible to every mobile phone user and the barriers to entry are minimal. “There’s also the fact that research shows the youth market is more comfortable using text messaging than initiating a voice call to someone in their social circle,” he says. Showing just how important SMS is in the greater scheme of things, Vodacom reported that it had carried in excess of 600 million SMS messages between the start of the 2010 Soccer World
26 AFRICA TELECOMS Issue 7
MULTI-TASKING WILL UNDOUBTEDLY BECOME A NECESSITY IN REGIONS PREVIOUSLY DEPRIVED OF ANY MEANINGFUL BROADBAND OR SPEED.
”
ALIGNING WITH VODACOM While van den Bergh doesn’t say it directly, another reason for the restructuring is in all likelihood the fact that Vodacom saw a ton of value in enriching its core offerings as a telco with the services and intellectual property Gateway Communications has at its disposal. “In October 2009 this restructuring process started with us separating the business into two distinct parts. “One is focused on the carrier and wholesale services portion of the business – or that part of the business that typically interacts with telcos and Internet service providers (ISPs) – and the other is focused on the business sector and as such, providing services into the MNCs, banks and other large enterprises,” he explains. That shouldn’t suggest that the one part of the business works closely with Vodacom and the other doesn’t however. Van den Bergh is quick to point out the part of the company that’s focused on the business sector, namely Gateway Business, works well with the effort Vodacom is itself putting into providing services to businesses under the Vodacom Business banner. “The restructuring was a great idea, since it gives our telco and ISP focused business unit – known as Gateway Communications – the ability to deliver a range of highly-focused services
IP-based network is inevitable. But, says van den Bergh, it’s further off than what many people think. “Five years from now, I still see voice as a separately reported component – and furthermore, one that is carried differently across the network,” he says. “Beyond that, we might see completely converged IP-based networks making their debut in more developed markets. “It will take longer for this trend to hit the emerging markets though,” he adds.
DATA HUNGRY MARKET
In a sense, van den Bergh says the world has always assumed that the adoption of broadband data capabilities will be different – or at least take place at a slower rate – in Africa than what has been the experience in other markets. But, he says, if you look at what happened when large amounts of submarine capacity suddenly became available with Seacom’s arrival, it’s clear that the only difference is that the adoption rate is far more accelerated. “I was in Kenya when the Seacom cable came ashore and, it was like Christmas, a couple of national birthdays and a few other
into Africa. While this will obviously assist all of Vodacom’s operations across the continent, it will also target every other mobile carrier on the continent. “We remain independent in that way,” he says. “Not only can Vodacom now draw on our expertise when it comes to fine-tuning their mobile network, it can leverage our expertise in the management of large satellite networks as well as mobile and terrestrial communications solutions. “It’s also no secret that Vodacom is keen on the converged communications space – and since a great deal of our expertise is squarely in this space, there’s a great deal of value we’ve already added here,” he says.
celebrations rolled into one,” he chuckles. “The rate of uptake in Kenya, Tanzania and neighbouring countries has been astounding and despite the dearth of voice and data communications there, the focus has been on data and not voice,” he adds. As the trend continues, van den Bergh says the undersea cables that have yet to land will add another dimension to what’s possible. “In today’s context, we’re finally becoming able to provide world-class access to parts of the continent where nothing existed before. “And believe me, looking at adoption rates thus far, the more we provide, the higher the uptake will be. “With that increase in usage, the rates will drop,” he says. “The elasticity of demand is virtually unlimited in our market,” he enthuses.
THE BUSINESS OF NETWORK SERVICES
Turning to Gateway Communications' use of Seacom and what it has used that influx of capacity to achieve, van den Bergh says the company has provided increased levels of connectivity to mobile operators and ISPs, up the East coast of Africa – something it
Issue 7 AFRICA TELECOMS 27
THRIVING UNDER ADVERSE CONDITIONS
While Gateway Communications has by all accounts been through an interesting time over the past 18 months, van den Bergh admits that the effects of the world economic crisis was at times cause for concern. “Over the past two years, we’ve seen the market become a great deal more cost aware, something that was driven by the increasing pressure on sales margins,” he says. “And unfortunately, nobody is immune to this, as operators and businesses feel pressure from their customers and in turn, have to drop their margins and place pressure on their entire chain of suppliers,” he says. “The opportunity we had at our disposal however, was to make smart investments for the future – not just in terms of choosing the right technologies and business practises, but in choosing investments that would allow us to be far more cost effective into the future,” he says. “We had to re-assess our own market priorities,” he continues, “and that’s’ one of the primary The first undersea cable, the transatlantic cable between Newfoundland and reasons we split the business into those two areas. Ireland, was completed in 1866 and hailed as the eighth wonder of the world. It “It gave us more focus and made us far more was the beginning of fast communication on a global scale. reliant on what our customers actually needed, forcing us to make a real effort to understand our customers and how we could do a better, more cost would never have been able to do under any other circumstances. effective job of helping them navigate their challenges,” he says. Some of those investments were obvious, like increasing the “In fact, the first tranche of capacity we ordered was completely taken up in the first month and we’re currently scrambling to get company's investment in submarine cables, but also focusing on terrestrial network build-outs and getting high capacity backhaul more,” he says. Van den Bergh says Gateway Communications has also used to areas where it was needed. that new capacity to establish the first Multiprotocol Label Switching (MPLS) network up the East coast of Africa. LOOKING AHEAD “In the wake of the new capacity Seacom has on offer, we’ve While the developments in the market over the past 18 months seen ISPs we never knew existed before creeping out of the have been significant and the next 18 months are likely to eclipse woodwork and a number of new ISPs being formed. even that, van den Bergh says we can only truly understand how “The market has literally mushroomed overnight,” he says. far we’ve come if we cast our minds back in time. Van den Bergh says that the landing of the Seacom cable has “And the truth is, things have changed immeasurably,” he says. also allowed Gateway Communications to gain a range of new “Ten years ago, Africa was without a doubt the dark continent licenses – in countries like Kenya – for the building-out and and you’d be grateful for whatever form of connectivity you could provisioning of backhaul capacity. find. “Now we have cables everywhere and as a result of that, “We’ve also learnt valuable lessons and seen the market learn a MNCs have the same connectivity expectations in any African couple of its own, specifically with regards to redundancy, putting country as they would anywhere in the developed world,” he says. all their eggs in the Seacom basket and paying dearly when the “Now, if we look forward five years, we won’t recognise cable experienced issues,” he says. Africa,” he adds. Thankfully, because of its legacy van den Bergh says Gateway “As more and more cables land, we’ll begin asking what today Communications had configured resilience into its offerings and sounds like a ridiculous question, like: ‘how good is the average could very quickly cut over to other cable systems and satellite, Cameroonian’s access to Youtube on their smartphone?’ where needed. “With world-class infrastructure we will also begin asking what
28 AFRICA TELECOMS Issue 7
new, innovative services can be built,” he says. “We’ve all heard the example of a rural fisherman using SMS to check the stock levels at a market and potential selling price of his catch before actually going to one or another market. “Add convergence and world-class infrastructure into the mix and suddenly that same fisherman is able to send buyers a picture or video of his catch and actively begin engaging with his customers,” he says.
CHALLENGES REMAIN
The biggest challenge the African communications market faces however is over-regulation and the fact that often regulators don’t understand the market entirely and as such, draw on greedy international companies for input. “One of the worst sins we’ve seen committed in this industry over the years relates to companies who come along to regulators and governments and convince them that more money can be made out of things like international termination,” van den Bergh says. “In turn, the regulators raise these rates, which initially makes
Innovations in technology are helping rural farmers and fishermen become more productive. An SMS to a local market can check prices before delivery, or in this case, Siemens provides an effective night fishing solution.
the government more money, but very quickly also drives down calling rates,” he adds. It doesn’t end there however. Van den Bergh says you then see grey markets emerging, shortcutting the usual telecoms infrastructure to offer much cheaper calling rates, but shocking call quality. The result is that even fewer people make use of telecoms and the GDP of the country is affected negatively. “Why not focus on making less money per unit of calling or Gigabyte of data usage, but doing so across a much larger volume of calling and data usage?” he asks. “This allows you to focus on quality and deliver truly compelling service levels – in turn encouraging even more usage,” he says. Van den Bergh says there’s an annoying myth out there, that Africans will accept what they can get. “In our experience however, if you give someone a high-quality service they will use it for longer and more often. “And it’s our belief that the revenues grow for everyone and markets flourish if this happens,” he concludes. AT
Issue 7 AFRICA TELECOMS 29
South Africa’s success in hosting the 2010 Soccer World Cup – an event that’s said to be the biggest, most scrutinized event in the sporting calendar – was a feat that will for decades to come, be viewed as nothing short of remarkable. What has the effect been on the country however and will it leave a lasting impression on South Africa’s technology landscape? Brett Haggard takes a closer look at what was invested, what it delivered and what the after-effects are likely to be.
Green Point Stadium, Cape Town 30 AFRICA TELECOMS Issue 7
LEAVING A LASTING
B
y all accounts, the 2010 Soccer World Cup was the bestorganized and most technologically advanced World Cup ever staged. And for it to have been staged in South Africa, a country that’s perceived to be a dangerous, backwards place to live with hardly anything to offer the rest of the world in the way of technology, was important. Not only did the event turn the world’s eyes on the natural beauty and unique, rich culture that South Africa has to offer, it showed that South Africa is catching up with the rest of the world technologically – and in some cases excelling far beyond some ‘more developed’ regions. The great news for South Africa is that the infrastructure, which was purpose-built for the hosting of the World Cup, was simultaneously built with the after effects in mind. And if sentiments from the likes of Telkom, MTN and Vodacom are anything to go on, the country’s in for a real treat as undersea cables are due to continue landing over the next 18 to 24 months and the investments made thus far will go a long way towards solving the country’s local-loop issues.
Issue 7 AFRICA TELECOMS 31
FIXED LINE FOUNDATIONS Despite the role Telkom and shoddy legislation played in creating the relatively broken telecoms industry, South Africa has been saddled with for the past decade, the infrastructure provided by the age-old incumbent for the World Cup deserves notice. To comply with FIFA’s requirements, Telkom had to ensure that it had provisioned dual fibre-optic routes from each stadium to the International Broadcast Centre. These dual fibre links were there to ensure there was sufficient failover to avert even a moment’s downtime (99.99% uptime was a requirement) and furthermore, that there was sufficient bandwidth (20GBps in fact) to carry a high definition television broadcast signal. Apart from that, Telkom provisioned an additional 2.5GBps of protected bandwidth from each stadium for the likes of generic ICT purposes – like telephony, Internet connectivity, faxes, e-mails, as well as dedicated connectivity for the media in the grandstand, on the pitch and in radio booths. What is likely to happen to this infrastructure now that the World Cup is over isn’t particularly clear from Telkom’s side, suffice it to say that it will no doubt be used to bolster Telkom’s existing capacity across the country. It’s also worth noting that Telkom has been particularly hushed about how much of this infrastructure was newly laid and how much of it was pre-existing. Another fact worth noting is that this infrastructure Telkom provisioned for the World Cup was set aside to enable highdefinition television signals to be carried, as opposed to the mobile operators whose infrastructure was put in place to support tourists, fans and match attendees. CONNECTIVITY THAT’S AYOBA With a relatively incomprehensible sum of money paid to FIFA to be named as an official sponsor of the 2010 World Cup, MTN’s ability to carry voice, data and SMS traffic was placed in the spotlight during the event. And by all accounts, MTN’s network performed well before, during and now after the event. The company claims to have invested hundreds of millions of Rands in its network in preparation.
32 AFRICA TELECOMS Issue 7
At each of the designated stadia, MTN installed Distributed Antenna Systems with dedicated BTS (Base-station Transceiver System) hotels, which are designed to allow the operator to carry thousands of calls within a confined space. In a nutshell, the system converts radio signals to light, distributes the light and then converts it back to radio, allowing MTN to create a number of smaller cells that enable it to carry a much bigger volume of traffic. By contrast, a typical radio site contains three radio base stations. The BTS hotel MTN installed at Soccer City contains 22 radio base stations. Similarly, while a typical site has six cells, at Soccer City there are 38. The MTN installation at Soccer City, furthermore contains almost 6km of fibre optic and approximately 10km of radio feeder, not to mention the 348 antennae installed throughout the stadium. MTN says its investment in the system at Soccer City alone cost it in excess of R25-million to design and install. Similar systems, but on a smaller scale, have been installed at each of the other nine stadiums. In addition to stadium infrastructure, MTN provisioned additional capacity at South Africa’s airports with radio systems identical to the one installed at Soccer City, installed at OR Tambo and Cape Town International Airports, as well as the newly opened King Shaka Airport in Durban. It also upgraded its network infrastructure around the main hotels, training venues, places where people gather, and routes to and from the stadiums, airports etc.
To support the MTN Fan Zones and the FIFA Fan Fests, MTN equipped eight vehicles as mobile radio base stations, which were deployed at a moment’s notice to any area that required extra network capability. VOICE OF VODACOM While it wasn’t a FIFA sponsor, Vodacom had an awesome opportunity to capitalize on the influx of international visitors who would be roaming on its network and as such, would be required with an increased load during the World Cup. From a nuts and bolts perspective, Vodacom embarked on a similar project to MTN at all 10 of the official stadiums and in some cases shared infrastructure with its competitor. As such, MTN and Vodacom decided to share the signal distribution system (based on DAS) and facilities at each of the stadiums, but installed their own distinct radio BTS equipment. At Soccer City, Vodacom installed the equivalent of sixteen 2G/ GSM and ten 3G/UMTS base stations to provide enough capacity for the more than 85,000 spectators. Overall, at all ten stadiums Vodacom installed the equivalent of 112 x 2G and 81 x 3G base stations. Looking at cost, Vodacom invested ZAR24 million to install the DAS system, 291 antennas and 32 base stations at Moses Mabhida Stadium in Durban alone. Extrapolating this across the other nine stadiums and making some allowance for different levels of spend at the various stadiums, it’s probably safe to assume that the operator spent, like MTN, hundreds of millions of Rands on its stadium infrastructure. Vodacom also provisioned additional 36 mobile units to provide voice and data coverage to all the FIFA Fan parks, hotels, public viewing areas, training facilities and the like. At the Durban Fan Mile in particular, Vodacom also installed (in conjunction with other operators) a unique system that made use of the light masts along the beachfront. The system saw Vodacom installing the equivalent of 27 base stations to provide our customers with enough capacity on the 5km beachfront, as more than 100 000 people were expected to visit the Durban Fan Mile. In preparation for the event Vodacom by February had also replaced the radio equipment at about 2,000 sites with the latest generation radio equipment and at the same time increased the capacity at many of the new base stations. Rounding things out, all of this was backed by the construction of 11 fibre optic rings in major metropolitan areas, which substantially increased local bandwidth capacity. TRAFFIC LEVELS AND TRENDS While MTN and Vodacom haven’t been explicit as to what will happen to their infrastructure now that the World Cup is over, a couple of assumptions are safe. The first is that because of its hosting efforts, South Africa is infrastructurally geared up to handle a number of other sporting events of epic proportions. The second is, since much of the infrastructure built for the
event is mobile, it will either be relocated to areas in need of load alleviation and a general upgrade of capabilities, or be used in its mobile form to plug coverage and capacity holes in the telcos’ respective network as they appear. Additionally, it’s clear that undersea cables are only half of the equation when it comes to healing South Africa’s telecoms woes. Fast, reliable and redundant local networks are the more important shortfall right now and it’s hoped that some of the investments made by MTN and Vodacom will go a long way towards plugging
the holes in the country’s local loop. Placing all of the investment made by operators in perspective, all through the tournament, the MTN network carried approximately one terabyte of traffic in locations like stadia, airports, and fan parks. It’s conceivable that Vodacom saw the same kind of increase. Additionally, MTN customers accounted for approximately 590 million SMSs and 10 million MMSs in South Africa during the 2010 World Cup. Vodacom says that approximately 600 million SMSs were sent over its network from the start of the tournament until the semi-finals - an increase of more than 40% on normal network traffic. In some cases, it says, the traffic on a single base station increased by more than 500% compared to just prior to the start of the tournament. The mere fact that MTN and Vodacom’s networks held up during the 2010 World Cup and not a second of footage was lost over Telkom’s network during the time FIFA was using it, should give South African consumers heart. It should also serve as a wake-up call to all in the telecoms market, not only showing us that exemplary service levels can be achieved if the companies involved set their minds to it, but asking the one question every consumer is dying to get an answer to, namely: “Why should this level of service only exits when an event such as the World Cup comes to our shores?” South Africa has shown the world that it can be a first world destination – it should now make every effort to ensure it does this day after day, year after year, for its citizens. AT The mere fact that MTN and Vodacom’s networks held up during the 2010 World Cup and not a second of footage was lost over Telkom’s network during the time FIFA was using it, should give South African consumers heart.
Issue 7 AFRICA TELECOMS 33
30 JUNE - 2 JULY 2010 FRANSCHHOEK, CAPE TOWN
The Inaugural Africa Networx Summit, was hosted by 3i Publishing in partnership with o3B Networks, Global Voice Group, Digital Solutions Group and Digital Mobile. The Summit was set in the historic town of Franschhoek, South Africa, and against this backdrop the guests and delegates were provided the opportunity to openly discuss and debate a number of key issues through roundtable sessions and in more detail through one on one networking opportunities. The primary aim of the event was not only to debate issues surrounding the importance of Information and Communication Technologies (ICTs) for the sustained and improved development of the continent but also to define the real central topics that will be occupying our attentions over the coming weeks, months and years. May we also take the opportunity of thanking all our panellists for their enthusiastic involvement and participation in the sessions. This format of intense, intimate discussion, engagement and networking around those sessions we believe will set a precedent for a new approach and format to address the main issues facing Africa’s communication needs. Telecommunications, within an African context, is a great enabler and has democratised the ability of millions across the continent to communicate, have access to the Internet, and in general allow for people to connect in a way previously thought impossible. Products such as the mobile pre-paid model and mobile banking have allowed the continent not only to adopt but actually innovate new products and services tailor-made for Africa.
“ The summit is an attempt to create a forum and platform for key decision-makers to discuss and debate the crucial issues facing Africa in the second decade of the new millennium. ”
Picture From Left to Right Ilyas Bham, Bradley Shaw, Mohammed Khan, Omar Trujillo, Rahul Sethi, Marius Conradie, Steven Ambrose, Caroline Aurouet, Sarah Theron, Sipwe Chireka, Birgitta Cederstrom, Yaron Assabi, Miemie Viviers, Ladi Okuneye, Richard Smuts-Steyn, Minnie Maharaj, Patrick Sinclair, Margaret Abba-Donkor, Charlotte Wolseley Brinton, Judge Stanley Moore, Ndongo Diao, Noel Deyzel, Morlaye Youla, Laurent Lamothe, Aissatou Dieng Diop 34 AFRICA TELECOMS Issue 7 2010
“ We feel that it is important to bring together, to events such as this, the chief decision makers from across the continent to discuss, debate and lay out a blueprint on ICT development in Africa for the coming decade. ” DAY 1 1. Public-Private Partnerships – The first roundtable of the Summit provided the opportunity for the Public and Private sectors to discuss the challenges they face, to share their successes and to give some insight on how they view the second decade of the millennium, and how through collaboration of the public and private sectors can real and significant growth occur. DebAte HigHligHts: MohaMMed Khan The first session is going to be touching on public-private partnerships, and how that drives the growth of ICT in the African continent. Over the last couple of years, we’ve seen considerable growth in ICT across Africa. Connectivity has improved significantly, and this drive has come predominantly from the partnerships between the public and private sectors. Within public-private partnerships there should be included a fourth P, which is People. So public-private partnerships shouldn’t just encapsulate the concept of a partnership between the public and private sectors to drive growth and profits, but also for that growth to be of benefit to the citizenry of the countries where that growth is taking place. ndongo diao Many private partners have expressed their interest in investing in the public sector through the Assist Africa initiative, to bridge the gap between those who can communicate and those who cannot communicate because of the lack of means; and the issue is how could people have access to what is called Universal Service. I can’t speak on behalf of other countries, but in Senegal I did launch the Universal Service in the countryside, in the region which is called Matam. We are in the process of testing the program in 160 villages in the north of the country. And if this project is successful, it will be extended to the 14,206 villages in Senegal.This will mean that somewhere there are investors who contribute, and who finance these ICT projects. In Senegal we mobilised, as I said, a significant amount to bridge the gap in those areas, and we have a target: that by 2012, we would have internet
Issue 7 2010 AFRICA TELECOMS 35
“ Connectivity has improved significantly, and this drive has come predominantly from the partnerships between the public and private sectors. “ partnerships, whereby our capabilities that we developed over time, are there to match the responsibilities that we see in the public sector. MieMie vivierS Digital Solutions Group is a group of companies, predominantly focusing on the digital media and mobile data solutions, so we work with mobile operators, we work with private companies, and the public sector, so we definitely have strong social initiatives running. access, IT services access, for all rural areas. Investors are really interested in Senegal and in Africa- ICT is a cornerstone to ensure the sustainable development of Senegal. This means that progress in Senegal in the area of regulation of communications is to ensure the promotion of ICTs, and also to ensure that foreign investors will find a sound environment to motivate them to invest. Margaret abba-donKor Ghana needs more revenue for redevelopment. That doesn’t mean we are diverting the ICT monies for road construction or other projects. I mean the Investor Access Fund is purely for ICT expansion to the remote areas of our country. And, we have that also in our service level agreements with the operators. The service level agreement allows operators to contribute to the Investor Access Fund for ICT expansion to the rural areas. In Ghana, as a result, we have been able to build ICT kiosks in almost every village, but that’s not enough, and that’s the reason why we want to be able to monitor, to have oversight of the quantum of what comes into our country. PatricK Sinclair Global Voice believes that our expertise is being able to come to a regulator and say that we can provide you the visibility to fulfil your regulatory requirements and to provide a solution that allows for the more efficient interconnection of calls within a country. We see ourselves as a company who specialises in public-private
36 AFRICA TELECOMS Issue 7 2010
DAY 1 2. Satellite and Fibre – With increasing connectivity reaching the continent via undersea cabling, there remains ample opportunity for satellite providers to offer services to reach those that fibre simply cannot reach. Backhaul remains integral to allow ICTs to reach those that require it most and to allow for Universal Access and to fulfil the Millennium Development Goals. DebAte HigHligHts: oMar trujillo O3b is in the process of becoming a satellite operator. We are launching a constellation of satellites. There will be eight to start with, and we are going to provide services mainly in developing economies, developing countries. We will be providing IP trunking, IP communications either for voice or for data. Some challenges faced by 03b’ s founder, Greg Wyler, during his tenure as General Manager at Rwandatel included lack of connectivity and high prices for satellite connectivity. In Africa,
in Latin America, and in Asia Pacific, he looked and saw a lot of fibre connectivity around the continents, but when it comes inland, there is either no or limited fibre connectivity. With this in mind, he thought that maybe a solution could be developed to fix this problem, and provide the connectivity that people need in so many areas. This is roughly about 3bn people. Our niche is somewhere in the middle between the traditional geostationary satellites and the fibre optic links. We can provide more throughput than a traditional satellite and our latency is lower than a traditional satellite. We are therefore focusing on two main types of applications, IP trunking connectivity and more and more, GSM or 3G backhaul. The coverage for the constellation is not going to be only in Africa, it’s going to be a global coverage so we do face some issues. Historically, places like Brussels, India or Russia have a strong regulatory frameworks and it’s not so easy to enter the market. In those places we need to go through a long process to be able to get a license. In most of those places, and for the most part in Africa, with the exception perhaps of Nigeria, it’s relatively easy to enter and provide the services. Additionally we have, as one of our partners SES, which has been known in Africa as New Skies. They have a lot of experience providing the legal frameworks and getting access to the licenses and the supervised services in most countries of the world. So having the legal team with us has been a great help on navigating through all these processes. Kevin viret Yahsat is a fledgling entrant into the satellite industry. We’re a company based in Abu Dhabi in the UAE. We are owned by Mubadala, the investment arm of the Abu Dhabi government. In 2008, the funding was approved for two satellites. The first satellite is in-build and is going to be launched on 14th. February next year (2011). Half of it is for the UAE armed forces and to do that we had to get UN clearance for encryption, encoding and to be secure. That’s all been achieved. The second half of the satellite has BSS which is for broadcasting over N. Africa and the Middle East for Direct-to-Home television. For that, we have gone into a joint venture with SES on the broadcasting. That product is called YahLive. For the first satellite, there is no capacity available. The second satellite is in Q4 2011. It is a Ka Multiple spot
beam frequency reuse technology. That technology we adopted and took into the second satellite. That satellite’s service is broadband. It is a bit of the DSL world, and a bit of the wireless world, we are taking on and it’s something that hasn’t come to Africa yet. DAY 2 3. The Great Interconnection Debate – Over the past twelve months, the interconnection debate has been raging across South Africa and the rest of the continent. This roundtable session allowed those intimately involved in the debate to provide their opinions and views, to define a middle ground that is suitable for the many stakeholders involved. DebAte HigHligHts: Steven aMbroSe Initially, I just want to give you a brief insight into some of the research that World Wide Worx does. We are somewhat South African based, however, we are moving into Africa, and our first study of Internet access in Africa should come out later this year. In essence, the internet finally has become mainstream in South Africa. It’s no longer something for the have’s and for the wealthy. In terms of termination rates, the interconnect is essentially a fundamental business tool of any operator or any supplier of telecommunications services worldwide. In most instances around the world, the regulator and governments have had to actually mandate and regulate the environment and insist on some form of interconnection regime in order to facilitate competition and new entrants to the market. It is an incredibly fraught environment, it’s an incredibly complex environment, and depending on which side of the divide you sit, if you’re sitting on the incumbent’s side you have one view, and if you’re sitting on an aspirant new entrant to the market, you have a completely different and often diametrically opposed view. That
Issue 7 2010 AFRICA TELECOMS 37
is exactly what has happened in South Africa. The incumbents have agreed amongst themselves, not colluded... we never use that word. They’ve agreed amongst themselves on a particular tariff and regime on how to interconnect. ICASA, the regulator in South Africa has come along and said; well perhaps that’s totally non-competitive, there’s dominant market forces. And they are proposing another tariff which is far below the current tariffs and this has created enormous debate. richard SMutS-Steyn I think if I look at Multisource and XConnect, from our perspective, insofar as we provide a neutral interconnect hub that is rules-based and gives all kinds of reporting. The feeling is that market forces need to pertain, and you’ve got to decide whether you are a regulator or a de-regulator? And I think we’re entering into an era really where deregulation across the continent has been prominent, and perhaps a means of government intervention, policing and adding tariffs to individual calls is now perhaps a step away from deregulation. I put it to the regulators that there are other means, there are fiscal and tax mechanisms to achieve that kind of revenue growth that you’re looking for without having to implement or keep control of the interconnect that happens between the companies. I’m not sure that that has to be regulated. I think the only reason is when abuse happens through fraud this is defined as breaking the law for monetary gain. Well, if there isn’t a law then you can’t be breaking it, so I would suggest that if there was a total deregulation and an allowance to really interconnect at any levels then there won’t be any arbitrage to allow for a least cost return, there wouldn’t be arbitrage to allow between routing internationally and locally; and market forces would pertain and would sort itself out very, very quickly. ladi oKuneye When we’re talking about interconnects here, we cannot overlook the fact that it’s based on pure financial business considerations. This is how much it costs me to set up my network; this is how much it costs me to set up bandwidth. Each time I connect an operator and give them access into my switch, this is the cost impact of that to me. So you need somebody to look at all those numbers and say, well this is right, or no, I don’t agree here. These are not technical issues. These are purely financial. So you get a management consultant who has some level of expertise in that area. rahul Sethi Government must focus on transparency and players must focus on profits. And when I say, must focus on, government would like transparency and operators would like profitability. Regulators are the ones who drive the transparency projects and ensure that to the consumer that they take care of the interests of the general public who pays them taxes. The success story of India is really when the government projects gave a boost to creating transparency in its own policies. More transparency will lead to people coming out in the open, talking and communicating the right message and I believe that’s the mobile of, for that matter any communication model, be that a wireless, 3G or a landline or fixed line.
38 AFRICA TELECOMS Issue 7 2010
LAURENT LAMOTHE Global Voice Group provides the tools for the regulators to do their job, which is as an independent referee and at the same time to be able to monitor and track what is causing bad quality of service, and loss of revenues, which is the fraud on the networks. In the case of Guinea for example, we’ve worked between the regulator and the operators to have basic uniformity. We were able to work together. We are working together with the regulator in order to fight fraud. We have disconnected over 6,000 fraudulent lines in Guinea in one month, and since the project started in September 2009, we disconnected 34,000 lines, and SIM boxes. That would amount to a US$140,000 a month loss. So imagine, multiplying that by over 30,000 lines. So, this is an innovative subject and the operators in Guinea worried about the model, believing that it’s going to reduce their revenues. All the operators are earning more today than they were earning yesterday. It’s a basic argument. Those that say that the regulators should stand idle and let it happen, that’s their right. That’s their opinion but the fact is that it’s causing both the operators, the regulators and the state a significant loss of revenue. Minnie Maharaj Our position really is for regulators to intervene as little as possible and let market forces take place to allow for competition – And, yes, I don’t know whether the regulator needs access necessarily, in terms of what the flow of traffic is in and out; I don’t think that that is necessarily something that the regulator needs access to. The regulator only needs to intervene if market forces aren’t working, and so that is for the operators to compete as efficiently as possible and that will not necessitate intervention by regulators. So, for me, operators need access to that information not necessarily the regulators. I would like to say that there is the need for best practices and processes when it comes to determining interconnection rates, because a recent study that we completed on the SADC region, looking at the interconnection fees, and how they’re determined. One key complaint that came across from most operators is that it seems like every single regulator, every individual country has it’s own approach and processes and procedures that they apply when trying to determine interconnection fees. THE HON. THIERRY SAVONAROLE MALEYOMBO The question of the interconnection, is where I think the role of the regulator is important. We can’t give the historic operators or the other operators, the choice of determing the price of interconnection otherwise there’ll be disorder. The example in Africa, where operators debate the price of interconnection under the supervision of the regulator. Once the discussions come to an end, the operator can’t apply other tariffs than those that were agreed on. On a historical level that comes back to the historic operators. But we can’t say that it’s only the
historic operators who should manage the interconnection tariffs. So all the operators around the table decide together and decide on the tariffs and the regulator’s there to ensure that this tariff is respected. I received the World Bank and I explained the project to the them [World Bank], and the World Bank said that it was a project that represented good governance which they encouraged me to go through with. So we, as the government of Central African Republic are very happy to have this service in place. The operators have understood that it’s not war, but rather collaboration. DAY 2 4. Smartphones & APPS – Applications or APPs as they are known, are driving considerable growth in more developed markets. The growth of the APPs and widgets market is bringing significant additional revenue streams for operators. This is being driven predominantly by the emergence of the smartphone market. From an African context, the question becomes how can operators tap into this lucrative market for the consumer through more affordable handsets. Debate Highlights: YARON ASSABI We actually launched the first mobile commerce transaction in the world in March 2000, and at that point we worked on WAP, which made the World Wide Wait even longer, at 9.6 Kbs. Today, most networks in Africa are looking at 3G or already have 3G deployed. Then, LTE is really going to be the future, and we’ve seen a lot of networks committing to LTE by 2012/2013. Therefore, the mobile phone becomes a multi-purpose device especially in Africa where the PC penetration is so low. In terms of international market trends, ARPU voice is down, data is up. In terms of smartphones, they are increasingly becoming the mass market with up to 21% penetration in markets such as the US. According to Nielsen, this is projected to be at approximately 42% by 2013. Location is probably the mobile operators’ biggest asset and we’ve seen some really nice location based services such as Vodacom with GRID, and cloud computing, which implies ondemand capacity and lower barriers to launch new services, given the lower CAPEX requirement. In Africa, cloud computing makes a lot of sense, for mobile the cloud has been around a long long time. BIRGITTA CEDERSTROM Frost & Sullivan is looking currently at the mobile advertising space in South Africa, and it’s very interesting what’s happening. When we talk about mobile advertising, its very nice to talk Issue 7 2010 AFRICA TELECOMS 39
Attendees & Delegates from a South African angle, and very much because of Vodacom actually. Mobile advertising is such an important media and is ready to explode in South Africa. Mobile advertising is where the operators can segment the market and generate significant data revenue. If we look at the trends going forward, and the global companies looking at mobile advertising, they do all mention South Africa. I believe that we will find similar uptake in markets in West Africa such as Nigeria and Ivory Coast, and in East Africa, going to Kenya. AT
MARGARET ABBA-DONKOR
STEVEN AMBROSE
Assistant Manager, National Communications Authority, Ghana
Chief Executive Officer, World Wide Worx Strategy
YARRON ASSABI
Birgitta Cederstrom
Spiwe Chireka
MARIUS CONRADIE
Chief Executive Officer, Digital Solutions Group
Programme Manager, Africa ICT Frost & Sullivan
Senior Industry Analyst - ICT Africa Practice Frost & Sullivan
EHOD Group Strategy & Innovation, Vodacom Group
AISSATOU DIENG DIOP
MOHAMMED KHAN
LAURENT LAMOTHE
Director General, Agence de Régulation des Télécommunications et des Postes, Senegal
Manager, ATELCO, Senegal
Chief Executive Officer, 3i Publishing
Chief Executive Officer, Global Voice Group
MINNIE MAHARAJ
THE HON. MR THIERRY MALEYOMBO
NDONGO DIAO
Managing Executive of Wholesale Services, Vodacom S.A.
Minister of Posts and Telecommunictions, Central African Republic
LADI OKUNEYE Director of Communications, O3b Networks
RAHUL SETHI Chief Executive Officer, Integral Fusion
BRADLEY SHAW
PATRICK SINCLAIR
RICHARD SMUTS-STEYN
SARAH THERON
Managing Editor, 3i Publishing
Director of Projects, Global Voice Group
Chief Executive Officer, Multisource
Sales Director, 3i Publishing
OMAR TRUJILLO
KEVIN VIRET
MIEMIE VIVIERS
MORLAYE YOULA
Vice President - Africa, 03b Networks
Regional Director - Africa, Yahsat
Group Sales Director, Digital Mobile
Director General, L’Autorité de Régulation des Postes et Télécommunications, Republic of Guinea
40 AFRICA TELECOMS Issue 7 2010
C
M
Y
CM
MY
CY CMY
K
TACKLING PREPAID CHURN in multiple SIM markets remains a large operational challenge
BY MICHÈLE SCANLON
42 AFRICA TELECOMS Issue 7
PREPAID GROSS CONNECTIONS AND CHURN
C
hurn is a constant headache for mobile operators to manage. The nature of anonymous prepaid services operating in highly competitive environment in lowincome markets has created a band of multiple SIM customers, or worse still disposable SIM users, displaying little or no loyalty to a specific network. Such users tend to place more value on the promotional on-net offers of the moment, rather than an inherent affinity to having a single telephone number. Although operators still favour seasonal campaigns running for fixed periods of time, alongside a promotional draw attracting additional press coverage, there is movement towards better churn management and customer retention through ongoing direct communication with their customer base. IMPACT OF MANDATORY PREPAID REGISTRATION The advent of enforced registration processes for prepaid customers is having a positive affect on churn in that operators are being forced to cleanse their customer databases of unregistered users. Africa saw its first instances of mandatory prepaid registration in 2009 with implementations in Botswana, DRC and South Africa with Kenya and Nigeria announcing similar policies for implementation in 2010. In some instances the requirement to become a prepaid GSM customer is more rigorous than that to open a bank account in the same market! In South Africa, mandatory prepaid SIM card registration was introduced in July 2009 under RICA (Regulation of Interception of Communications and Provision of Communication-Related information Act). Authorities accept as proof of address a reference to a local church or school for those living in informal settlements. The disconnection of unregistered SIM cards was thought to mainly affect dormant SIM cards, most of which might anyway have been disconnected during the usual time window lock clean-up process. Subsequent results from South African mobile operators revealed that the impact of mandatory registration was larger than expected. In its Q3 2009 results, MTN announced a 3% reduction in its prepaid base which it directly attributed to RICA. In its FY 31 March 2010 results, Vodacom South Africa reported the impact of the RICA implementation resulting in a 4.9% customer decline as a result of a 1.9 million reduction in prepaid customers following the implementation of RICA. In the same period, market leader, Vodacom, focused on increasing implementations of direct prepaid campaigns resulting in significant prepaid churn reduction from 48.1% at Q3 2008 to 38.1% at Q3 2009. Customer registration together with focused loyalty programmes has resulted in overall improvement of prepaid churn for the operator as illustrated above.
thousands 1 600
Gross connections
Churn
1 300 1 000 700 400 100 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: Vodacom Group FY 31 March 2010
CHANGE IN INTERNAL CHURN POLICIES Operators are also able to improve on churn figures through management of their own internal churn policies. For example, in Q4 2009, Vodacom Congo changed its disconnection policy from 215 to 90 inactive days resulting in a (hopefully) onetime increase in churn to 157% for the quarter (compared to normalised churn in the quarter of 78% up from churn in Q3 2009 of 57%). The policy resulted in Vodacom disconnecting 1m customers equivalent to 23% of its reported base before the new policy came into effect. The ongoing impact is that the operator should be better able to reflect its true active customer base and thus indicate lower ongoing churn. Other examples of managing churn through internal policy include how operators account for customer migration from contract to prepaid services whilst staying on the same network. IMPROVING SHARE OF THE WALLET IN MULTI-SIM MARKETS One of the main challenges facing African mobile operators is not low ARPU spend, but the existence of multiple SIM environment where consumers consciously divide their discretionary spend between more than one operator availing of promotional tariffs and recharge bonus campaigns. The competitive environment for share of the wallet has intensified in these multi-SIM markets, and as such operators are implementing retention and loyalty plans aimed at driving usage levels and becoming the primary SIM of the consumer. The point of recharge remains the favoured customer touchpoint by operators for loyalty programmes and usage stimulus campaigns. Similarly in Indonesia, Telkomsel which has been characterised by high rotational churn with prepaid customers buying a new SIM card each time airtime credit expired, has launched a new reward campaign which only kicks in with an IDR 5,000 bonus
Issue 7 AFRICA TELECOMS 43
... an operator’s overall service offering to encourage ‘customer stickiness’ utilising prepaid airtime agents ... on the first and second recharge after activation. Continuing with experiences from Indonesia which exhibits similar demographics to many African telecoms markets, Indosat launched a new tariff plan in Q2 2009 offering discounted call rates based on maintaining a minimum account threshold of IDR 3,000. MOBILE MONEY AS A RETENTION TOOL Mobile money transfer services are also seen as part of an operator’s overall service offering to encourage “customer stickiness” utilising prepaid airtime agents as cash-in/cash-out agents and generate incremental revenue, especially prepaid SMS revenue. Previous results from Smart in the Philippines indicated churn rates of 3% for non-Smart Money users compared to 0.5% per month for those using its Smart Money service. Safaricom’s six month results for end of September 2009 attributed exponential growth in M-Pesa and SMS revenue to its non-voice revenues being 18% of overall revenues (compared to 11% a year previously). Zain reports that its Zap users in Kenya generate 20-25% more ARPU than non-Zap users. CALLER USER GROUP PATTERNS AS CHURN PREDICTION Call records can be used to identify groups or communities of
44 AFRICA TELECOMS Issue 7
users. Detailed call analysis to identify traffic relationships between users can help identify potential churners as well as be used to stimulate usage by monitoring current actual usage against predicted or past usage. While this level of analysis is still in its infancy and mainly focused on developed markets, there is potential for implementation in emerging markets with large youth populations. Younger consumers tend to have bigger, but less stable networks, thus underlining the importance to identify groups or sub-groups of users, so that churners do not influence existing users to churn. CONTINUAL 1:1 COMMUNICATION REQUIRED Prepaid loyalty is seen as extending the customer lifetime on the network and the overall communication process is seen to begin in the pre-acquisition phase through building brand equity and market trust. Operators need to commence their customer relationship from the outset and continue to interact with them to retain them on their network, drive additional switched revenue through ongoing usage – not just the next recharge – and focus on becoming the primary SIM of choice. To achieve this, operators need to focus on direct 1:1 communication with their customers through continual campaigns where rewards are timely, relevant and personal to the specific customer. AT
Fiber speed, satellite reach.
Satellite technology connects you to the most remote locations of the world. Our next-generation MEO satellite constellation will deliver the highest combination of bandwidth, speed, low latency, coverage and availability. Bringing the internet closer to you. O3b, the satellite company closer to you. Visit our website at www.o3bnetworks.com or email us at getconnected@o3bnetworks.com to join the bandwidth revolution.
10 11 10 1 00 10 11 0 01 10
c
10
00
10
10
01
The BRAIN Model
c
D
espite the vast technological advances in telephony over the past century, there are still many challenges and obstacles that remain in terms of intelligibility. George Ashley Campbell, a pioneer in long-distance telegraphy and telephony, showed in 1910 that accuracy over the telephone stood at only 59% as opposed to 96% over open air, and although things have come a long way since then, we still find ourselves putting up with inaccuracies that we encounter in telephone conversations today. The “BRAIN” model of critical elements in business telephony shows how mutual dependencies can be used to improve intelligibility, and how modern solutions can directly benefit communication.
46 AFRICA TELECOMS Issue 7
c
BY FIONA McLEAN-BANKS , Polycom Business Development Manager
LAY
c
DE
??
?
kH z
01
01 11 0
of intelligibility in business telephony
Analogue loop lengths, building wiring, variable line equalisation characteristics, poor handset and speakerphone designs, mixed networks, noise in conference rooms, paper shuffling, pen tapping, fan noise, and a host of other issues, still pose a considerable challenge to telephony intelligibility. With globalisation and the rise of the mobile workforce, the importance of intelligible telephony is magnified, yet, so are the obstacles. Business people do not have enough time to complete their work and misinterpretation due to voice quality is a frustration. Accuracy and quality associated with voice conversations is therefore ever-more important. Users are often talking to people they haven’t met, and usually need to forge high-value relationships over the phone. Users also sometimes speak different native languages so accented speech becomes a further burden to intelligibility. Conferences often occur among groups, increasing the
potential for inaccuracies due to background noise, and increasing the importance of a successful conversation due to difficulty in scheduling the meeting. And lastly, meetings can be very long, yet require sustained attention. Small inaccuracies have a big impact on attention-span. THE COMPONENTS OF SPEECH INTELLIGIBILITY The hearing and understanding of speech takes place through three stages: physical, cognitive and analytical. In the physical stage, speech travels from the talker’s mouth to the listener’s ears. In the analytical stage, ambiguities are resolved by the listener through knowledge of grammar and accent rules, and the local context of the words. In the analytic stage, those words that have still not been resolved are scrutinised, whereby the listener examines them in broader context and tries to interpret the intended meaning. The second and third phases lend themselves to distraction, particularly when ambiguities stem from communication between foreign talkers, where the same contextual assumptions may not be applicable. Thus, the best defence against misunderstanding is to minimise obstacles in the physical stage. THE PHYSICAL ELEMENTS OF INTELLIGIBILITY The BRAIN model of physical speech communication comprises five critical parameters: Bandwidth; Reverberation; Amplitude; Interaction; and Noise. Together, they form the basis for intelligibility. What is interesting is that these elements work together, and research has shown that to a large degree, each of these parameters can compensate for deficiencies in another. This means that problems can be solved by improving parameters that are more accessible in a particular room environment in order to achieve the desired result. In order to do this it is essential to understand what can be done when each of the five parameters is deficient: 1. Bandwidth Bandwidth is the amount of speech bandwidth that is carried to the listener. Telephones are limited to the band 300 Hz to 3.3 kHz, and carry only 20 percent of the frequencies present in human speech. Some modern business audio systems, on the other hand, carry frequencies as high as 22 kHz. A deficiency in bandwidth is usually caused by narrowband Plain Old Telephone System (POTS) or IP connections to carry a telephone connection and has until recently, been regarded as an insoluble problem, constrained by infrastructure. Thanks to new technology this problem is disappearing, with standardscompliant IP telephones and speakerphones becoming available to take advantage of available data bandwidth, and delivering much higher audio bandwidth and fidelity.
A deficiency in bandwidth is usually caused by narrowband Plain Old Telephone System (POTS) or IP connections to carry a telephone connection and has until recently, been regarded as an insoluble problem, constrained by infrastructure.
2. Reverberation Reverberation measures the amount of room echo that occurs between the talker and the microphone. It makes speech more difficult to understand and is strongly affected by room characteristics (hard, reflective walls, floor and ceiling), room size, and the position of the speaker in relation to the microphone. Reverberation can be addressed most easily by optimising the placement of the microphone in relation to the talker. In a larger room environment with multiple talkers this can be done by using a multiple-microphone system which intelligently selects the microphone with the best pickup for each talker – and by ensuring that principle talkers are positioned closest to the microphone. Direct solutions also include improving the room acoustics by mounting acoustic diffuser and absorbing elements on the walls, ceiling, and corners. Increasing the bandwidth can compensate significantly for reverberation, while increasingly amplitude and reducing noise can also be effective to an extent. 3. Amplitude Amplitude refers to how loud the talker sounds to the listener. Quiet talkers are more difficult to understand than loud ones and a listener who is distant from the loudspeaker will have a harder time hearing than when close
Issue 7 AFRICA TELECOMS 47
to it. Telephone networks also have different gains, varying in loudness from connection to connection. While moving the position of the talker or listener is an obvious solution to amplitude deficiency, it is not always practical. Systems capable of automatically adjusting gain when needed can improve intelligibility greatly in these situations. Increasing bandwidth, reducing reverberation and reducing ambient noise can also compensate significantly for low amplitude. 4. Interaction Interaction is the ability of two or more participants to naturally interact with each other during a telephone conference. One speaker should be able to interrupt the other without disturbing the flow of conversation – preventing the “what?”; “you go ahead”; “no you go ahead” exchange caused by mediocre speakerphones. Interactive speech between distant groups can be difficult for several reasons, with the most obvious being the absence of a true fullduplex system that allows for transparent interactive speech. Better microphone placement, wider bandwidth and a stronger signal can also assist. Often, poor interaction is cause by an excessive end-toend delay of the audio signal. This can be caused by the communication channel itself – satellite connections have a longer connection delay than earth-based ones. IP telephony systems can also have delays for as long as 150ms, and delays can also come from some conference bridges, which can insert delays in their processing. Room reverberation can also increase delays between talker and listener. c
c
5. Noise Noise refers to the ambient noise picked up by the microphone along with speech. This is strongly impacted by the room environment. Because common noise sources and speech share much of the same spectrum, reducing noise is imperative for intelligibility. Fixing noise at the source should be the first step – moving microphones away from air conditioning ducts, overhead projectors, coffee makers etc. Directional microphones should be pointed away from noise sources. Aside from these direct approaches, increased bandwidth can also significantly improve the situation. Conference solutions that eliminate noise from the telephone line, such as clicking, buzzing and hissing also assist in this regard. Further to this, some systems today incorporate active noise reduction algorithms that analyse microphone audio in time and frequency domains and apply a form of filtering that can reduce fan noise by 6-9 dB, without affecting speech.
48 AFRICA TELECOMS Issue 7
TOWARDS A FLAWLESS CONFERENCING EXPERIENCE A thorough understanding of each of the elements of the BRAIN model, and how they work together, combined with continual enhancements to conferencing technology, means that many of the problems experienced in telephony over the last century can now be remedied. As conferencing becomes an increasingly popular business practice, it is good to know that there is a solution appropriate for any given conferencing environment, at a reasonable cost. AT
One speaker should be able to interrupt the other without disturbing the flow of conversation – preventing the “what?”; “you go ahead”; “no you go ahead” exchange caused by mediocre speakerphones.
ROAMING BY EUGENE BERGEN HENEGOUWEN
the key to profitability in Africa...
EXECUTIVE VICE PRESIDENT, EMEA, SYNIVERSE TECHNOLOGIES
A
frica is well known as one of the world’s most competitive mobile marketplaces, with more than 400 million subscribers and hoards of new connections added every month. Vying for a piece of this growing revenue pie are more than 170 mobile operators, including large Tier 1 providers, operator groups, and a slew of smaller players and start-ups.
In the face of such fierce competition, African operators must continually look for innovative ways to achieve profitability and sustain growth – all while identifying areas where they can add additional value for subscribers and ensure quality of service. This is a tall order for any operator – large or small, independent or group. So what’s an essential key for success? Establishing a global footprint for inbound and outbound roaming traffic. To the mobile subscriber, seamless access to voice and data connectivity anytime, anywhere is not a privilege – it’s an expectation. If an operator cannot
50 AFRICA TELECOMS Issue 7
provide the reach a customer expects, that user will simply move on to one who can. This is especially true in Africa where a majority of mobile subscriptions are prepaid, making it easy for users to simply swap out their SIM and take their cash to a competing provider at any time, for any reason.
COMPLEX REGION - COMPLEX ROAMING In a vast market like Africa, enabling subscribers to access their mobile services across the continent and the globe is a complex endeavour, regardless of an operator’s size. The region’s largest players are tasked with cost-effectively managing hundreds of individual bilateral roaming agreements. They also must address the additional complexity and expense associated with rapidly launching new services for subscribers and evolving their networks to keep up or prepare for next-generation 4G technologies. Small operators and new entrants who must grow and then retain their subscriber bases face an uphill battle to quickly
expand their reach, as they often do not possess the necessary relationships and capital to establish and manage roaming with fellow operators. Further complicating matters, it can be extremely challenging for small operators to create roaming agreements with larger operators who are not likely to benefit strategically from such a relationship. No matter the behind-the-scenes complexities their home operators must address, end-users perceive insufficient roaming connectivity as nothing more than service failure. With stakes this high, African mobile providers are fortunate to have several options for addressing challenges and delivering on subscribers’ ever-growing expectations.
MAKING SMART CONNECTIONS In a highly competitive market like Africa, speed and cost efficiency are paramount, and a connection to an Open Connectivity (OC) roaming hub can provide both of these. Instead of inefficiently dealing with the complexities of managing individual agreements with
roaming partners around the globe, OC hubs provide instant roaming reach on the network of every hub member, all via a single point of entry. In addition to reach, many of the best OC hubs will provide access to other critical roaming functions, including signaling, agreement management, clearing, fraud prevention and more. Large group operators with affiliates across
managing roaming operations or providing training for an in-house staff. The decision to outsource all or part of its roaming duties allows the operator to direct its valuable internal resources on other areas of its mobile business without having to dedicate them to the arduous process of establishing and testing roaming agreements. Africa’s large population of prepaid subscribers adds an extra level of
and agreement with the hub. In addition to increasing efficiency for operators, CAMEL hubs reduce costs for end users by eliminating the need for them to purchase and keep track of multiple SIM cards when traveling. Without question, the dynamic African market represents ample opportunity for all types of operators, as subscribers’ insatiable demand for all that’s mobile
Without question, the dynamic African market represents ample opportunity for all types of operators, as subscribers’ insatiable demand for all that’s mobile continues to grow.
the continent and even the Middle East are extremely common in the African mobile market and are uniquely positioned to take the hub concept to an even greater height. Instead of simply joining a hub, a group operator can implement a third-party platform to develop and host its own OC roaming hub that will centralize activities across group affiliates. The result is cost efficiencies and intra-hub transparency that will allow the group to troubleshoot subscriber issues and analyse network data. Smaller operators and new entrants looking to establish an immediate global footprint can connect to an existing sponsor network to gain immediate reach via that networks existing roaming agreements with a large number of operators around the world. A sponsored-roaming environment is transparent to subscribers and helps fill in the gaps whenever a user travels to a market where his or her home operator does not already have a roaming relationship. Another option for any operator, no matter its size, is to rely on the help of a trusted third party capable of either fully
complexity. Users need access to CAMEL services while roaming, and if they can’t get this from their home operator, they are happy to purchase a SIM from a prepaid operator wherever they’re roaming. One of the best ways for any sized operator to address this need is by connecting to a CAMEL hub. Similar to the OC approach, a CAMEL hub simplifies prepaid operations by providing access to key roaming partners via a signaling connection
continues to grow. At the same time, competition in this environment is likely to grow increasingly stiff, as the mobile lifestyle becomes a reality and subscribers’ expectations mount for the latest and greatest technologies. Those operators that will find long-term profitability are the ones who successfully implement roaming to provide the full service suite wherever their customers travel, eliminating the desire and need for a subscriber to look elsewhere for service. AT
In a highly competitive market like Africa, speed and cost efficiency are paramount, and a connection to an Open Connectivity (OC) roaming hub can provide both of these.
Issue 7 AFRICA TELECOMS 51
6470 Africa COM Ad 205x265.qxd:Layout 1
16/7/10
09:53
Page 1
E E FR
Now in Its 13th Year
99 an 2 ic $2 fr S rA U fo rth es wo ss rs pa to a er op
THE LEADING PAN-AFRICAN COMMUNICATIONS EVENT....
10-11 November 2010 Cape Town Convention Centre, South Africa
Driving the Next Stage of Growth in African Telecoms NEW 8 Special Focus Sessions:
If you are in African telecoms, there is nowhere more important to be….
NEW 2 day conference agenda dedicated to:
Hear from 30% MORE CxO Level Operator Speakers:
Marc Rennard, Executive Vice President for Africa, the Middle East and Asia, Orange Group
Nkateko Nyoka, Chief Officer - Regulatory & Stakeholder Relations, Vodacom Group
Mickael Ghossein, CEO, Orange Telkom Kenya
Wessel Van der Vyver, General Manager, Telecom Namibia International
Jose dos Santos, CEO, Vodacom Mozambique
Hussein Rifaii, Chairman & Managing Director, MDC
Noel Herrity, CEO, Zantel Tanzania
Megan Arthur, General Manager for Customer Development & Retention, MTN South Africa
Nazar H. Sahal, Rachid Sefrioui, Executive Information Technology Director, VP of Strategy & Regulation, Expresso Telecom Wana, Morocco Group Ltd
Paul Edwards, Chairman, Starcomms Nigeria
Dr Angus Hay, Chief Technology Officer, Neotel, South Africa
Don’t miss out on this world-class event. Register today: www.comworldseries.com/africa Sponsored by: Official Broadcast Partner:
WITH SHIRIN DEHGHAN CEO, ARIESO LTD This issue of Africa Telecoms is dedicated to Voice and Data in Africa. Arieso, is described as a location aware network management solution provider, what does that mean to modern mobile networks and how can you assist in optimizing their networks? We believe in the next five years, mobile networks will operate very differently. Increasingly business models will become Application Focused as the emphasis for network management shifts from ‘network centric’ to ‘customer centric.’ Arieso will play a pivotal role in this shift. Arieso’s technology will help mobile operators change their approach to network engineering. Arieso will help operators to directly align their networks with customers’ needs by evaluating each individual subscriber’s experience as when and where it happens - down to resolutions that have never been possible before. Arieso is a trusted partner who is committed to providing mobile operators with superior technology that is carrier grade, proven and reliable. Arieso’s technology enables operators to deliver high quality services which meet consumer demands which are constantly evolving.
54 AFRICA TELECOMS Issue 7 2010
Having founded the business in 2002 Arieso has grown substantially and now has an impressive client base and enviable track record, with yourself being included in the Mobile Communications International’s “Leading Ladies” for 2009. To what do you attribute this success to? Tenacity and determination, for which my staff collectively presented me with an award recently at the Arieso annual summer ball for staff and partners. At Arieso we employ some of the brightest stars of the mobile industry and working closely together with our T1 customers this journey has been an extremely satisfying one.
Arieso made a significant leap into the Africa Market late last year with the deployment of AriesoGEO for MTN. This solution is described as a Geo-Location Solution. Can you tell us more about the development and deployment of this solution with MTN. With the World Cup Football successfully over, has the feedback been positive from MTN? Sameer Dave, Chief Technology Officer, MTN South Africa has said, “our partnership with Arieso has enabled us to determine accurately
which geographic areas need the most attention to ensure that our network coverage is up to speed to handle the expected demand for both voice and data services. As Africa’s first global sponsor of this major international event, MTN has a responsibility to ensure that our network provides a seamless service to our current customers, and the thousands of international visitors expected in our country for the World Cup.” Thaigan Govender, General Manager of Radio Network Planning and Optimisation, MTN South Africa also contributed by saying, “we needed to explore different ways of enhancing our customer experience. AriesoGEO has provided MTN with all the information it needs to make these decisions and puts it in a strong position to provide a high quality user experience ahead of this major tournament.”
Are you going to be rolling out the service across the entire MTN Group in Africa, or was this an investment by MTN specifically for the World Cup Football in South Africa?
•
•
•
• Arieso has signed a framework agreement with MTN Group. The
C C
Africa-Tel
agreement makes Arieso the preferred supplier of software and systems for subscriber-centric network design, planning and optimisation to MTN Group. Under the terms of the agreement, all 21 of MTN’s operating companies can use Arieso’s full suite of mobile network planning and optimisation solutions to manage and improve the performance of their 2G and 3G networks.
AriesoGEO won the Alcatel-Lucent’s Communications Innovation Challenge at the end of 2009. Can you provide some insight into the award and its importance for Arieso? It’s always nice to get an award, especially when it is unexpected. We are honoured and pleased to be recognised as pioneers by one of the leading vendors within the industry. This gives credence to us not simply being about power points. Instead, we
deliver carrier grade, reliable, field proven technology that is breaking down the engineering boundaries. This ultimately allows our customers to deal with the challenges of the new data era.
Africa having both GSM and CDMA networks, does Arieso work on both or are you focusing on one in particular? Arieso technology can cover both network types. We are working closely with MTN to roll-out our GSM solution on a massive scale to those operators who have not yet or begun migrating towards 3G and LTE. MTN are true pioneers. They have a fantastic team of people running its operation. We are proud to be associated and working with them.
In addition to AriesoGEO you also offer the AriesoACP and AriesoCMP. Can you give us
a short summary of what these services are and what they offer network operators? AriesoACP enables automatic setting of network configuration to better optimise the network. When integrated with ariesoGEO, it can use actual subscriber data as its source to generate network models and simulations in order to deliver the optimum design for a mobile network. It can also use this data to explore and identify the effects of any changes to the network design. The AriesoCMP solution, meanwhile, focuses on managing an operator’s capital expenditure on its network, for when all other methods for improving network performance have been exhausted and the only option left for the operator is to add more sites or carriers. AriesoCMP integrates with GEO so that the network manager can
L o INX n th Fo , pl e b r fur eas ene the e e fits r d ma of eta il jo pe ils inh erin elp g a @li t nx. net Make your connection in Europe at the London Internet Exchange
London Peering
• LINX runs one of the world’s largest Internet Exchange Points Membership gives a cost effective way of improving traffic latency and quality by direct peering with other network operators
• LINX connects 360 networks from over 50 different countries
Networks from Africa, Europe, the Americas, Asia and the Middle East all connect at LINX in London
• LINX provides Public Peering and Private Interconnection facilities
LINX has a presence at eleven London sites connected by secure fibre and DWDM links. LINX also offer a managed private network interconnect service
• LINX from Anywhere
LINX from Anywhere connections are provided by layer 2 carriers enabling peering at LINX from anywhere using your existing network architecture
Come and meet us to discuss your peering requirements at Capacity Africa in Nairobi, Kenya on 21-22 September 2010 Africa-Telecoms-advert.indd 1
www.linx.net 14/07/2010 09:51
accurately evaluate what ROI they will get for each dollar that they spend on the network.
Are you involved with any other operators in Africa? If so, can you specify? If not, are there discussions taking place that could lead to further business for Arieso in Africa? Africa is a key market for us right now, especially following our recent success with MTN Group.
Arieso’s services are able to assist in reducing Energy and Opex costs for Mobile Operators. Can you give a brief description of how this is done? Do you have any specific examples of where you have seen these services deployed and what the experience has been for the Operator? AriesoGEO’s software automatically determines the network performance and the spatial characteristics of the subscriber. Subscribers’ quality of experience is measured in terms of dropped calls, low data throughput, coverage “holes” and capacity bottlenecks in mobile networks. This valuable data is transmitted by mobiles in the normal course of conducting a call. It requires no additional hardware, such as network located probes, or GPS-enabled handsets. The above data offers a powerful combination to operators and is fundamentally game changing. This subscriber data enables operators to: • React quickly to subscriber issues, or even be proactive when linked with their customer support • Focus new capital where it really matters; covering data hotspots to relieve the capacity crunch • Avoid lengthy, resource intensive and CO2 producing drive testing. By using ariesoGeo, each subscriber drive tests the network. The best part is, subscribers are mobile,
56 AFRICA TELECOMS Issue 7
limitless. They go everywhere, indoors, outdoors and with such high numbers of subscribers on a network they offer a much better statistical representative of network quality versus one individual monitoring network performance by making calls in a van • Take care of your most valued customers, VIPs, Corporate, Roamers.
Arieso runs its Middle East and African operations out of London, should Africa develop as a region for Arieso are you going to be opening offices in the region? We are already employing our own staff in the region and we will expand as we make further progress in these markets.
Stated in your product offering information, you offer 4G/LTE deployment planning solutions. From this can we assume that Arieso is not working in the WIMAX space? Do you see a trend more toward LTE networks as the preferred option rather than WIMAX? From your perspective what do you see the reason for this being? No, we do not cover WiMax. We made the decision sometime ago to focus on technologies which are dominating the industry such as Edge, 3G and LTE. Even before LTE penetrates the mass market, we are delivering unique value to operators who want to be the leaders in migrating towards LTE. Arieso’s technology allows operators to accurately plan their investment by geo-locating their 3G subscribers and providing subscriber data such as types of devices, quality of experience, voice and data usage patterns etc. This data which Arieso’s technology gathers, in conjunction with being able to identify network hot spots, enables operators to
better plan their network infrastructure and ensure high quality of user experience no matter where or when calls are made. Arieso’s technology is proven, reliable and actively deployed by tier 1 network operators who are migrating towards LTE and/or working towards mitigating the impacts of the capacity crunch.
Mobile Apps are increasing the usage of data across all networks worldwide. How is Arieso assisting mobile networks to identify any potential bottlenecks? Also, how does Arieso’s suite of products assist in optimizing the networks to accommodate for this growth in data usage? For a number of years, we have been at the forefront with helping operators tackle the challenges brought by the data tsunami and the iPhone. Having worked with major operators, we understand the impacts on the network caused by ‘data hungry’ smartphones, such as the iPhone. From our experience we are able to provide solutions to solve issues such as: • Where do I put my WiFi/Micro/Pico to relieve my capacity crunch in the macro layer • How can I more effectively and surgically optimise my network? A pre-requisite is to know where and what quality from your sub base and this information is available 24/7 for totality of subs, specific handheld users, specific group, specific person • Keeping VIPs is the most important thing a network operator can do to keep margins high - Corporate customers, Roamers, and high value customers are key. In order to achieve the above, Arieso’s carrier grade technology provides invaluable, real-time subscriber data. Arieso’s technology currently processes nearly one billion calls per day across all of our deployments. AT
AFRICA TELECOM STATS The purpose of this page is to give readers of Africa Telecoms a brief overview as to the growth and statistics related to the Telecoms and ICT markets in Africa. What we will be doing on an annual basis is relooking at the statistics, this way over time Africa Telecoms will have a basis for tracking developments and growth in the Africa Market. Each Edition of Africa Telecoms will be focused on a specific area. This month we focus on Voice and Data in Africa, to this end we have
tried to include a range of Data and Voice related statistics relevant to the African Market. I trust that you will find this information of value and interest, should you have comments on this page or statistics that you think would be relevant that we have not included (or that you have access to and would be of interest to our readership) the Africa Telecoms team would appreciate an e-mail to bshaw@3ipublishing.co.za
Fibre Capacity in Africa Internet Access in SA 2010, World Wide Worx
CAPACITY IN GBPS
2008
2009
2010
2011
2012
2013
Atlantis-2
40
40
40
40
40
40
SAT3/SAFE
40
250
770
770
770
770
SEACOM
0
1 280
1 280
1 280
1 280
1 280
TEAMS
0
120
120
1 200
1 200
1 200
GLO-1
0
0
640
640
640
640
EASSY
0
0
640
640
640
640
MAIN ONE
0
0
1 920
1 920
1 920
1 920
ACE
0
0
0
1 920
1 920
1 920
INFINITY
0
0
0
2 560
2 560
2 560
WACS
0
0
0
3 800
3 800
3 800
FLAG SYSTEM-2
0
0
0
0
2 560
2 560
80
1 690
5 410
14 770
17 330
17 330
TOTAL CAPACITY
AFRICAN UNDERSEA CABLE CAPACITY Excluding Mediterranean, 17 330 Total Capacity in Gbps World Wide Worx 14 770
INTERNATIONAL BANDWITH USAGE MENA (GBPS) Telegeography
17 330
Gbps 1000
Northern Africa Middle East
750
500 5 410 250 1 690 80
2008 2009
0
2010
2011
58 AFRICA TELECOMS Issue 7 2010
2012
2013
2002
2003
2004
2005
2006
2007
2008 2009
30
60%
20
40%
10
20%
0
0%
MENA SUBSCRIBER GROWTH Telegeography Broadband Subscribers 20
125%
Annual Growth
100%
15
75% 10 50% 5
25%
0
ANNUAL GROWTH RATE
80%
BROADBAND SUBSCRIBERS (IN MILLIONS)
40
ANNUAL GROWTH
USED INTERNATIONAL BANDWIDTH (GBPS)
SUB-SARAHAN - AFRICA BANDWIDTH USAGE (GBPS) Telegeography 100% 50 International Bandwidth Usage Annual Growth
0% 2005 2006 2007
2008
2009
2002 2003 2004 2005 2006 2007 2008 2009
800
80 70
700
SUBSCRIPTION PENETRATION (%)
NUMBER OF SUBSCRIPTIONS (MN)
900
MOBILE SUBSCRIPTIONS/SUBSCRIBER FORECASTS AFRICA 2009-2014 Informa Telecoms & Media No. of mobile subscriptions (mn) LHS No. of subscriptions (mn) LHS Subscription penetration (mn) RHS Subscriber penetration (mn) RHS
60
600
50
500 40 400 30
300
20
200
10
100
0
0 2009
2004
2005
2006
10
SUBSCRIPTIONS (MILLIONS) 20 30 40 50 60
2008
Interregional Traffic Flows, 2008 Telegeography
Leading investors Africa Mobile Market 2009 0
2007
70 U.S. & Canada
←21.7
MTN
12.2→
→
←3.5 .4 → 9 ←6 0.
5.5
Latin America & Caribbean
3→
→
←0.5
Europe
Africa
12 .7
2.
5.4
MIC
1.3→
←
ORASCOM FRANCE TELECOM
←3
0.3 →
←8.8
5 0.
VODACOM
→
6.8
←
Asia
2.7→
VODAFONE
0.3
ZAIN
ETISALAT QTEL
Issue 7 2010 AFRICA TELECOMS 59
SUBSCRIBE TO AFRICA TELECOMS MAGAZINE
V
Q e F
R ] D/V
UL F D W e O e F R P
V X E V F UL S W
OL RQ
DI Z
7
PHONE
F
XE
V LE e
+2
3 L S X E OL V h L Q J
FU
V@
]D
LR Q
6 55 7 4
R
2
42
CLICK
ZZ **Please quote reference code: 022010
‡ ‡ ‡ ‡ ‡ ‡ ‡
7KH ¿UVW IXOO\ LQWHJUDWHG PRQWKO\ SXEOLFDWLRQ DLPHG DW DOO VWDNHKROGHUV ZLWKLQ WKH $IULFDQ ,7& HQYLURQPHQW 7KH $IULFD 7HOHFRPV ZHEVLWH SURYLGHV IXUWKHU FRYHUDJH DQG H[WHQGHG UHDFK 7KH VLWH LV XSGDWHG GDLO\ DQG IHDWXUHV DOO WKH ODWHVW QHZV RQ WKH $IULFDQ 7HOHFRPV ODQGVFDSH $IULFD 7HOHFRPV KDV DQ DXGLHQFH UHDFK DFURVV WKH HQWLUH $IULFDQ FRQWLQHQW WKH 0LGGOH (DVW $VLD (XURSH DQG WKH $PHULFDV 7KH PDJD]LQH VWULYHV WR EULQJ LWV UHDGHUVKLS IDLU EDODQFHG DQG VWLPXODWLQJ QHZV LQ DGGLWLRQ WR DUWLFOHV E\ WKH WRS SOD\HUV LQ WHOHFRPPXQLFDWLRQV LQ $IULFD 7KH PDJD]LQH LV SXEOLVKHG WLPHV D \HDU $UWLFOHV IURP WKH &RQWLQHQW¶V 7KRXJKW /HDGHUV DQG ,QQRYDWRUV $IULFD 7HOHFRPV LV WKH ¿UVW $IULFDQ SXEOLFDWLRQ WR EH DXGLWHG E\ %3$ :RUOGZLGH
www.africatelecomsonline.co.za/subscribe
62 AFRICA TELECOMS Issue 7
WORLD CUP 2010 By Lesley Stones
REACHES IT’S GOALS
Images: www.mediaclubsouthafrica.com, www.capetown.travel
Mention technology and the World Cup in the same sentence and you’re likely to be met with a very pithy reply: goalmouth technology.
Issue 7 AFRICA TELECOMS 63
F
OR ALL THE THOUSANDS OF CAMERAS, hundreds of broadcast crews, endless kilometres of cables, and an atmosphere throbbing with wireless signals as well as vuvuzelas, the only technology that many fans craved was action reply video to let the referees see what rubbish decisions they were making. But apart from that minor niggle, the whole glorious event went incredibly well, boosting South Africa’s confidence, its unity and its reputation on the international stage. Much of that was due to the flawless technology that allowed millions of people around the world to watch the games, see live news reports about the country, and let the estimated 300,000 foreign visitors keep in touch with friends and family back home. South Africa’s network operators were still compiling detailed statistics at the time of going to press, but Vodacom said traffic on some of its crucially placed base stations soared by more than 500%. Vodacom reckoned it handled a 40% rise in SMS traffic with 600 million messages sent during the tournament. Cell C said SMS traffic rose by more than 15%, while in-bound roaming calls trebled their normal volumes. Edwin Thompson, the GM for Infrastructure and Technology at MTN Business, said traffic volumes were up roughly 20% to 30%. Statistics from global operators are even more impressive than some of the football players’ fake dives and injuries. Twitter scored big time, hitting recordbreaking tweets per second during the World Cup. On an ordinary day, its users send 750 tweets per second, adding up to a staggering 65 million a day. But when Japan scored against Cameroon, it hit a record peak of 2,940 tweets per second. The UK-based mobile phone operator 02 said during the first three England matches its customers sent 75 million text messages - an average of 25 million per game. The highest spike occurred when England’s Jermain Defoe scored against Slovakia, with almost 4,800 messages sent every second from O2 phones. “Big, unifying events like the World Cup generate an astonishing amount of mobile traffic. At its peak, our network delivered over 285,000 texts per minute,” said O2’s head of networks Gavin Sheldon. Blackberry users were equally active, with a clear correlation between major moments of the matches and spikes in BlackBerry Messenger traffic. When Spain’s Andrés Iniesta scored the winning goal in the tense last moments of the final match, BlackBerry Messenger traffic soared by 280%. In the Argentina vs Germany match traffic rose by 178% globally when Germany hammered home its third goal. One technical hitch that incensed an estimated 1.4 million fans
happened not in South Africa, mercifully, but in the UK. The high-definition TV broadcast from ITV suddenly cut coverage of the England vs USA game and switched to an advertisement for Hyundai, before going blank completely. When the picture resumed 20 seconds later, viewers saw Steven Gerrard celebrating his goal against the USA. The broadcaster was deluged with complaints and livid fans bombarded internet forums. “ITV do not deserve to cover football,” one angry viewer vented on the broadcaster’s Facebook page. Another said: “Waited four years for this and ITV cock it up again.” ITV’s sports production team in South Africa were in no way responsible, a spokesman said, blaming human error at another company, Technicolor, which was responsible for the transmission. Technicolor apologised by saying a transmission error in its London centre affected the high definition channel, which went down for just 20 seconds. But they were crucial seconds – particularly since the failure happened in England when English fans were supposed to be watching England score. At least the ITV disaster serves to highlight why Fifa put so many heavy demands in place on South Africa’s technology suppliers. There were numerous flaws with the ticketing system, of course, with Fifa’s website crashing when too many people tried to buy tickets online. And it was a questionable decision to expect South Africans to buy online anyway when so few people have internet access. But once the matches began the euphoria swept those issues away. Eventually, according to Danny Jordaan, the head of Fifa’s Local Organising Committee, more than three million tickets were sold and three million additional fans went to official fan parks. And when the final match between Spain and the Netherlands kicked off in Johannesburg’s Soccer City stadium, an estimated 700 million people around the world were watching on television. One incident that sounded like a potential disaster - but actually had little impact - was the collapse of the Seacom undersea cable, just a year since its inauguration. Seacom went down on July 5, cutting off broadband customers whose service providers rely exclusively on its bandwidth. Seacom quickly rented capacity on other international systems as it struggled to repair a fault lying deep under the ocean. Although MTN had leased additional capacity on Seacom to support its role as the World Cup’s sole African sponsor and the mobile telephony sponsor, the outage did not affect its services,
The highest spike occurred when England’s Jermain Defoe scored against Slovakia, with almost 4,800 messages sent every second from O2 phones.
64 AFRICA TELECOMS Issue 7
The interpretation centre was heavily used, with Fifa holding a media briefing every morning, and each game having pre- and postmatch press conferences attended by numerous foreign journalists.
said Thompson. “It only affected us from the perspective of resilient capacity being available. It didn’t affect our customers at all because we had enough capacity to weather it, because for us it had been critical not to allow anything to impact our users.” MTN Business instantly routed its international traffic via the west coast Sat-3 cable instead, since MTN had taken the precaution of increasing its capacity on Sat-3 as well. “Last year we had issues with Sat-3 and Seacom bailed us out: it’s the nature of our business to ensure we have extra capacity,” said Thompson. Corporate demand for MTN’s bandwidth capacity is so aggressive that the extra equipment and capacity installed for the World Cup will be fully utilised within a couple of months, so none of its investment has been superfluous. “For us its been a big success story that what we planned, worked,” said Thomson. Keeping the technology simple worked best for Conference Communications, a specialist in simultaneous interpretation systems. For the Confederations Cup, Fifa ran a language interpretation
system for the media via high-tech audio streaming over the internet. But it was plagued by glitches caused by jittery bandwidth. For the World Cup, Fifa’s Local Organising Committee asked Conference Communications to handle the task. The interpretation system was centralised in Soccer City’s media centre, so audio from press briefings at any stadium was fed through to Soccer City to be translated and the responses sent back to the originating stadium, said MD Martin Macphail. That was all done via standard ISDN phone lines, with no audible delays between the end of a question or comment and the interpretation in a variety of languages. “I thought the answer should be low-tech rather than trying to do everything across the internet,” Macphail said. “I still don’t believe there’s enough bandwidth, so we used standard phone lines and it worked perfectly. The telephone system is stable and copper lines give the best quality audio and the quickest feed.” The interpretation centre was heavily used, with Fifa holding a media briefing every morning, and each game having pre- and post-match press conferences attended by numerous foreign journalists.
Issue 7 AFRICA TELECOMS 65
South Africa’s technology and telecoms companies helped to make this an event the country can be proud of for years to come, said Irnest Kaplan, MD of Kaplan Equity Analysts. “The 2010 World Cup in South Africa was one of the best World Cups ever. The world’s biggest event proceeded smoothly without any major glitches or catastrophes.” Dimension Data’s state-of-theart networking at the stadiums and Telkom’s fibre connectivity ensured a flawless high definition viewing experience, he said. “Ten years ago, this would all have seemed highly unlikely. But it happened - and it happened well. The event is proof that we can achieve great things with the correct planning, determination, unity and focus.” Kaplan believes the event will leave many positive legacies. “Never before have so many South Africans posted pictures on FaceBook and other social media proudly announcing that they had arrived at Ellis Park or Soccer City. Showing envious overseas friends that we’re here in SA has never been this good!” he said. In countless newspaper articles, online forums and Tweets, everyone is now urging the powers that be to apply the same level of planning, determination and unity to seize the momentum and make real improvements in public service delivery, crime, education and health now the country has shown what it can achieve. Rich Mkhondo, Chief Communications Officer for the Local Organising Committee, says it was a condition from Fifa that consistent and reliable access to information was available throughout the event to all participants, including the teams, media, officials, security staff, ticketing centres, Fifa itself and volunteer helpers. Much of the communication was between the stadiums, the media centres and Fifa. But massive demands for capacity also came from fans at the matches - or those unable to reach the games in time – who shared their excitement, joy or despair with their families back home, sent them photos and video clips, and contacted friends to make arrangements, all via their cellphones. Fifa sees it as important that the legacy of IT infrastructure will be useful in the future. And there is no reason why it won’t be, since the demand for voice and data capacity is growing daily for normal business use, and since South Africa is now planning to bid to host the Olympics. Telkom was responsible for all the technology required to carry fixed-line voice, data and broadcasting feeds, and it laid 128,000km of new fibre optic cable. Fifa demanded dual fibre optic routes between each stadium and the International Broadcast Centre (IBC) in Johannesburg to avoid any single point of failure. It also required 99.99 percent network availability without any failure during any matches; self-healing capability for the network; and 20GB per second of
Fifa sees it as important that the legacy of IT infrastructure will be useful in the future.
66 AFRICA TELECOMS Issue 7
The price was a huge commitment too: $70 million. Of that, $65m was paid in cash to Fifa for the sponsorship rights; equipment worth $4m including Sim Cards and a dedicated number range was supplied to Fifa officials; and it paid a further $1m to be involved in the 10 official Fan Parks.
Soccer City holds more than 90,000 people, so the networks had to handle massive numbers of voice calls, SMS, MMS and video clips being sent during the matches, with enormous spikes just before the game, at half time and immediately after. bandwidth capacity for high-definition TV broadcasting. Telkom designed its network to meet all those specifications. All routes and equipment to and from the stadia and the IBC had back-up networks so if anything was damaged, traffic could be re-routed. Two Telkom hubs were set up in each stadium to further reduce the possibility of any service interruption. It provided 20GB per second of protected bandwidth from each stadium to the IBC for video images to be packaged for television broadcasts. An additional 2.5 GB per second of protected bandwidth from each stadium was supplied to carry voice calls, internet traffic, faxes and e-mails. Multiple video feeds were carried to the TV compound in each stadium via camera cables in both high-definition and standard video format. Telkom then converted the video signal into a digital signal and sent it to the IBC via its hubs in each stadium. In the IBC the digital signal was converted back
68 AFRICA TELECOMS Issue 7
to video by Media Broadcast SA, and was distributed to the broadcasters. Some international broadcasters, such as the Brazilian crew, chose to use Telkom’s undersea infrastructure to transmit their signal to their destinations. Each stadium had a Stadium Media Centre where Telkom installed phones, fax machines, printers and data ports, and an additional media area in each grandstand was equipped with phones and data ports. Photo-journalists down on the pitch didn’t have to bother dashing to the media centres though, as Telkom installed equipment at the four pitch corners so they could download and send pictures to their offices as the action happened. Back up for the transmission of broadcast signals was guaranteed by Sentech, which installed satellite equipment at each venue for national and international backup services.
MTN’S INVOLVEMENT
MTN’s involvement in the World Cup was enormous – and expensive – as it was the only African global sponsor and the official mobile operator. The opportunity was too good to miss, says Anthony Garstang, MTN’s General Manager for the 2010 Fifa World Cup. With South Africa hosting the event this was the perfect opportunity to help put MTN on the world map as a global business.“It’s been a huge commitment but it was too big an occasion for us not to be part of it. We are a proudly South African and a proudly African company so it was important to get involved,” he said. The price was a huge commitment too: $70 million. Of that, $65m was paid in cash to Fifa for the sponsorship rights; equipment worth $4m including Sim Cards and a dedicated number range was supplied to Fifa officials; and it paid a further $1m to be involved in the 10 official Fan Parks. “In addition we put in R450 million in network investments to create bespoke solutions and incremental network capacity so we could handle traffic in all these areas,” Garstang said. MTN worked in partnership with Vodacom and Telkom to install infrastructure in the stadia to sensibly share the capex costs. Soccer City holds more than 90,000 people, so the networks had to handle massive numbers of voice calls, SMS, MMS and video clips being sent during the matches, with enormous spikes just before the game, at half time and immediately after. “We couldn’t afford people not to be able to make calls in the stadia, so I’d say we quadrupled the capacity in pretty much every stadium,” Garstang said. MTN promised its board that the sponsorship deal would achieve a number of things, including revitalising its brand and ensuring that the 20,000 key stakeholders and customers who it entertained at the matches enjoyed a superlative experience. It also promised to recoup its heavy investment, partly from the increased user traffic and roaming fees. As an example of the initiatives designed to bring the money back in, one competition that MTN ran saw 4-million people enter by SMS. Signing up foreign customers as they landed at airports was also important,
both by getting them onto its network and further boosting its brand’s international exposure. “It’s quite tricky with sponsorship to show a return on investment, but we are fairly comfortable that the investment we made has paid for itself,” Garstang said. But there were some technical hitches. “For the opening game there were issues with the bandwidth we were providing,” Garstang admits. MTN was supplying bandwidth to the Visa terminals so people could pay for goods in and around Soccer City. But the terminals stopped functioning. “People could make calls and send SMSs but they couldn’t pay for things with a Visa card,” said Garstang. As frantic technicians tried to figure out what was wrong, they discovered that some people in the stadium were broadcasting pirate TV feeds that were sucking up bandwidth. “Fifa had never seen that before,” Garstang said. One precaution that the mobile operators had to take was to ring-fence their capacity around each stadium to comply with Fifa requirements, yet to ensure that did not steal capacity from South Africans going about their normal daily lives outside. At each stadium MTN installed Distributed Antenna Systems with a dedicated ‘Base-station Transceiver System Hotel’ to solve the problem of carrying thousands of calls in a confined space. The system converts radio signals to light, distributes the light and then converts it back to radio. This let MTN create a great many small cells to carry excessive amounts of traffic. The MTN installation at Soccer City featured almost 6km of optic fibre, 10km of radio feeder and 348 antennae throughout the stadium. “The investment at Soccer City alone cost us R25 million to design and install,” said Garstang. “Similar systems on a smaller scale were installed in the other nine stadia.” MTN also covered the main airports with identical radio systems, and upgraded almost all the smaller airports. It upgraded its network infrastructure around the main hotels, training venues, and routes to and from the stadia. And just in case that wasn’t enough, eight vehicles were kitted out as mobile radio base stations to be quickly deployed to any areas that required extra capability. The sponsorship deal also gave MTN the exclusive right to provide mobile content across Africa and the Middle East so people could watch the matches on their phones. That was done through the MTN Play portal, which also offered team and player information, and made match highlights available for downloading. Now that all the excitement and euphoria is over, the pessimists predict that South Africa will fall into a post-match depression. But the optimists are determined to capitalise on the momentum created by the event and the fact that we have shown the world, and ourselves, just what we can achieve. As MTN’s Garstarg says: “It was a monstrous undertaking, and it went better than we ever thought it would.” AT
Issue 7 AFRICA TELECOMS 69
.co.za
ICT Jobs at your fingertips
How To Apply Step 1: Visit www.careerjunction.co.za Step 2: Type in the main job title accurately. Step 3: Locate job on page (or similar jobs) and hit the apply button - you will need to be registered. * Please note that Recruiters may expire/delete Job Ads at any time.
Register free at www.careerjunction.co.za and create a professional online Resume!
Divisional Head: ICT Logistics Systems
ICT Infrastructure Manager
Senior Legal Adviser
(Gauteng)
(Gauteng)
(Western Cape)
Up To R650,000 Per Annum CTC
Market Related CTC Neg
R50,000-58,000 Per Month CTC Incl Benefits
Contract/Permanent management level position in the Engineering sector at OUTGROW INFORMATION TECHNOLOGY GROUP in Pretoria in South Africa (Gauteng).
Contract/Permanent management level position in the Financial sector at OUTGROW FINANCIAL SERVICES in Centurion/Midrand in South Africa (Gauteng).
Permanent management level position in the Telecommunication sector in Cape Town in South Africa (Western Cape).
Legal Adviser
ICT Auditor / Manager - Audit
Solutions Architect (CISCO solutions)
(Western Cape)
(Zimbabwe)
(KwaZulu Natal)
R40,000-45,000 Per Month CTC
Market Related Basic Salary Neg
R300,000-400,000 Per Annum CTC
Permanent skilled level position in the Telecommunication sector in Cape Town in South Africa (Western Cape).
Permanent senior level position in the Financial sector in Harare in Zimbabwe.
Permanent senior level position in the Information Technology sector at ICT Solutions and Services provider in Umhlanga Ridge in South Africa (KwaZulu-Natal).
Chief Information Officer
ICT Sales Managers
Chief Information Officer
(Gauteng)
(Gauteng, Western Cape, KwaZulu-Natal)
(Gauteng)
Market Related CTC Neg
Up To R750,000 Per Annum CTC Neg
Market Related CTC Neg
Contract/Permanent executive level position in the Financial sector at OUTGROUW FINANCIAL SERVICES GROUP in Johannesburg in South Africa (Gauteng).
Contract/Permanent management level position in the Telecommunication sector at OUTGROW TELECOMMS GROUP in various in South Africa (Gauteng,Western Cape,KwaZulu-Natal).
Contract/Permanent executive level position in the Information Technology sector at OUTGROW INFORMATION TECHNOLOGY UNIT in Johannesburg in South Africa (Gauteng).
Key Account Manager / Sales Manager
Solutions Architect
Sales Managers / Account Executives
(Gauteng,Western Cape, KwaZulu-Natal)
(Gauteng, Western Cape)
(Gauteng, Western Cape)
Up To R550,000 Per Annum CTC Neg
Market Related CTC Neg
Up To R600,000 Per Annum CTC Neg
Contract/Permanent management level position in the Telecommunication sector at OUTGROW TELECOMMS GROUP in Johannesburg in South Africa (Gauteng,Western Cape,KwaZulu-Natal).
Permanent executive level position in the Telecommunication sector at OUTGROW TELECOMMUNICATIONS GROUP in various in South Africa (Gauteng,Western Cape).
Contract/Permanent management level position in the Telecommunication sector at OUTGROW GROUP COMMUNICATIONS SERVICES in REGIONAL OFFICES in South Africa (Gauteng,Western Cape).
ICT Professionals
Security & Compliance Specialist
ICT Manager
(Gauteng)
(Gauteng, KwaZulu-Natal)
(Gauteng)
Market Related CTC Neg
R450,000-650,000 Per Annum CTC
R550,000-700,000 Per Annum CTC
Contract/Permanent executive level position in the Information Technology sector at OUTGROW OUTSOURCED TECHNOLOGIES in VARIOUS in South Africa (Gauteng).
Permanent senior level position in the Information Technology sector in Richard’s Bay in South Africa (Gauteng,KwaZulu-Natal).
Permanent management level position in the Education sector in Johannesburg in South Africa (Gauteng).
for more jobs visit www.careerjunction.co.za
f
ICT Solutions Engineer
Administration & Logistical Co-Ordinator
Divisional Head: ICT Logistics Systems
(Gauteng)
(Gauteng)
(Gauteng)
Market Related CTC Neg
Market Related Basic Salary Neg
Up To R650,000 Per Annum CTC
Permanent senior level position in the Information Technology sector in Tshwane (Pretoria) in South Africa (Gauteng).
Contract skilled level position in the Information Technology sector in gauteng in South Africa (Gauteng).
Contract/Permanent management level position in the Engineering sector at OUTGROW INFORMATION TECHNOLOGY GROUP in Pretoria in South Africa (Gauteng).
Cybernest: Strategy, Architecture & Innova
Linux Administrator
Senior Specialist : Online Service Integration
(Gauteng)
(Gauteng)
(Gauteng)
Market Related CTC
R360,000-420,000 Per Annum CTC
Market Related Basic Salary
Permanent senior level position in the Telecommunication sector at Telkom SA Limited in Centurion in South Africa (Gauteng).
Permanent senior level position in the Information Technology sector at large educational institution in Johannesburg in South Africa (Gauteng).
Permanent skilled level position in the Telecommunication sector in Midrand in South Africa (Gauteng).
Technical Service Development
Remedy Applications Manager
Senior Manager: Strategic Sourcing
(Gauteng)
(Gauteng)
(Gauteng)
Market Related CTC
Market Related Basic Salary
Market Related CTC
Permanent senior level position in the Telecommunication sector at well established ISP based in Midrand in South Africa (Gauteng).
Permanent management level position in the Information Technology sector at GijimaAst in Samrand in South Africa (Gauteng).
Permanent executive level position in the Telecommunication sector at OUTGROW GLOBAL STRATEGIC SOURCING MANAGEMENT in Johannesburg in South Africa (Gauteng).
Online Service Specialist
Market Related CTC
Cisco Consultant - Advisory
(Kenya)
(Gauteng)
(Gauteng)
R450-R500 Per Day
Market Related CTC
R790,000-980,000 Per Annum CTC
Contract skilled level position in the FMCG, Retail & Wholesale sector in Various African in Kenya.
Permanent position in the Telecommunication sector in Midrand in South Africa (Gauteng).
Permanent management level position in the Information Technology sector at Top IT Services Company in Midrand in South Africa (Gauteng).
ERP Consultant
Enterprise Architect
Voice & LP Managers / Specialists
(Western Cape)
(Gauteng)
(Gauteng)
Market Related CTC
R550,000-850,000 Per Annum CTC
Market Related CTC Neg
Permanent position at International media company seeks ERP Consultant in Cape Town, Southern Suburbs in South Africa (Western Cape).
Permanent senior level position in the Information Technology sector in South Africa (Gauteng).
Permanent management level position in the Telecommunication sector at OUTGROW GROUP ICT COMMUNICATIONS in various in South Africa (Gauteng).
Key Account Manager
Commercial / Operations Manager
Communications Specialist
(KwaZulu-Natal)
(Gauteng)
(Gauteng)
R480,000-520,000 Per Annum CTC
R600,000 Per Annum CTC
Market Related Basic Salary Neg
Permanent management level position in the Telecommunication sector in DURBAN in South Africa (KwaZulu-Natal).
Permanent management level position in the Admin, Office & Support sector in Johannesburg in South Africa (Gauteng).
Permanent position in the Information Technology sector in MIDRAND in South Africa (Gauteng).
Development Manager
Technical Product Development Specialist
Accounts Manager
(Western Cape)
(Western Cape)
(KwaZulu-Natal)
Market Related CTC Neg
R550,000-650,000 Per Annum CTC
R450,000-450,001 Per Annum Basic Salary
Permanent position in the Information Technology sector in Cape Town in South Africa (Western Cape).
Permanent management level position at an international telecommunications company in Midrand in South Africa (Gauteng).
Permanent position in South Africa (KwaZulu-Natal).
for more fmcg jobs visit www.careerjunction.co.za
.co.za
THE LAST WORD
CELL C – The Power is in YOUR Hands AT A RECENT press conference in Johannesburg, South African mobile operator Cell C launched a new corporate strategy, a new corporate identity and an innovative approach in attempting to make the company truly customer-centric. This is in addition to the well reported ZAR 5bn investment Cell C is making in its infrastructure to update its network and ultimately improve service delivery. Cell C CEO, Lars P. Reichelt said that to ensure the changes are in line with what customers want, Cell C has partnered with comedian Trevor Noah to be “the company’s eyes and ears”. For many years, Noah had been very critical of the issues with the mobile networks’ service delivery and particularly Cell C, and in a campaign that has had as many critics as supporters, Cell C sparked a chain of events that might perhaps change the face of the mobile industry in South Africa. It starts with Noah, who, in his stand up routine, informs the audience that someone suggested the Cell C network as an alternative to its competitors MTN and Vodacom. His reaction was “Yeah Right!!! (Chuckle Chuckle)…They are like the worst network. They don’t even have their own network. They piggy back on Vodacom.” He continues that if “Vodacom is ANC, then Cell C is COPE, that’s just disastrous. Nothing’s gonna come from that.” "Cell C drops more calls than Jacob Zuma drops people's underwear. This is horrible," he concludes. In response to the criticism, the company chose to be the butt
of criticism. Cell C took out a full back page ad in the SouthAfrican Business Day and Rapport publications. There, Mr. Reichelt apologises and states, “Your (Noah’s) criticism about spotty coverage, dropped calls and overall lack of delivery is not unfounded… I would like to apologise to you and every Cell C customer who is experiencing similar problems.” Arthur Goldstuck, MD of World Wide Worx, said in Business Day that Mr Reichelt’s conduct was “revolutionary”. “It is a conceptual breakthrough for a company to engage with a social media initiative. It is unusual in SA and internationally for the CEO of a telecommunications company to respond to a client by way of such an initiative. The usual approach of a senior executive in such circumstances is to either ignore such conduct, or to deny it, or to smooth-talk the problems — which is ironic because everyone knows there is a problem,” said Mr Goldstuck. “Mr Reichelt clearly understands the power of social media.” The Cell C promise will focus on creating a 4G network, improving call centres and billings, and point of sale systems. Whether this is all ‘sounds like a lot of hot air’ as Mr. Reichelt describes is yet to be seen, and Cell C have certainly thrown down the gauntlet, whether through a cynical communications campaign or one that will revolutionise the industry. Its fitting to return to Cell C’s new CEO (Customer Experience Officer) when he asks the question, “When was the last time you made a call that ended when you wanted it to?”. And on that note……….
Cell C has partnered with comedian Trevor Noah to be “the company’s eyes and ears”.
THE AUTHOR | Bradley Shaw is the Managing Editor of Africa Telecoms Magazine
72 AFRICA TELECOMS Issue 7