Kenya – legal VOIP begins to shake up the market and bring prices down

Kenya is now open for legal VoIP business and its impact has been to lower 
international calling prices by just under 80%. But the medium-term impact 
will be to act as a “can-opener” on questions about the cost of calling 
both regionally and nationally as the new operators go into discussions 
with the existing fixed and mobile incumbents. Back from a recent visit 
Russell Southwood looks at the runners and identifies where competition has 
still not happened.

When Telkom Kenya was the only legal voice carrier and before the rise of 
the grey market, it was relatively easy to get estimates of the number of 
incoming and outgoing minutes in the market. But when Telkom Kenya 
employees got embroiled in call diversion and grey market operators took 
advantage of the arbitrage opportunities offered by its high rates, it 
became significantly more difficult to estimate the size of the market. One 
VoIP operator told us that it might be anywhere between 50-70 million 
minutes a year, both incoming and outgoing. As this same operator told 
us:”We know of at least one carrier that deals with 5 million minutes a 
year.” Another calculates that there are between 2-3 million minutes a 
month incoming and that outgoing minutes are around 30% of that total, 
which would be approximately 47 million minutes. Whatever the true estimate 
is, there is no doubt that the amount of outgoing minutes is increasing as 
rates fall.

The new entrants are currently only taking a tiny share of that market. 
AccessKenya is only doing 50,000 minutes a month although that figures is 
rising very quickly. UUNet is currently billing US$25,000 a month although 
in the long run it believes this figure could easily rise to US3-4 million 
a month.

Seven ISPs have been granted the new licences by regulator CCK that allow 
them to offer VoIP. In a parallel move, it deregistered another 30 ISPs, 
almost all of whom are not well known in the market. At a corporate level, 
there are three main contenders: AccessKenya, Swift and UUNet. All three 
have chosen to go the quality over price route because VoIP is still an 
unknown quantity for most corporates. That said, all three are offering 
significant savings over existing rates offered by incumbent Telkom Kenya.

Access Kenya is offering “business quality voice” to its corporate 
customers. It has taken the “least-cost-routing” (LCR) technology it 
developed in the UK over the last ten years and modified it for local use 
to provide what it claims is a “no-hassle solution for the client”. The 
Least Cost Routing (LCR) box is put in after the PBX and it looks at the 
outgoing call and chooses the cheapest option. All domestic calls currently 
go into Kenya Telkom. Because the LCR box does the call routing it means 
that the client company does not need to install IP-enabled phones.

As AccessKenya’s MD Jonathan Somen told us:”We’ve been testing the service 
since last year and got our approvals in January this year. It is Tier 1 
quality with enough dedicated bandwidth to ensure carrier quality. We will 
scale the pipe to make sure it’s big enough to ensure this”. AccessKenya 
has made a US$250,000 investment in its IP platform.

Currently Telkom Kenya will charge a fixed line customer 90 cents a minute 
for a call to Washington DC whereas AccessKenya is charging 25 cents a 
minute. And as Somen says:”We’re charging 25 cents a minute to all main 
global destinations.”

UUNet launched its first enterprise VOIP service in October 2005 but found 
that customers kept asking: what’s the legal position? It offered what it 
described as “risk-free VoIP”, implementing gateways (using Quintum) and 
WANs for corporates that allowed them to call between offices for simply 
the cost of the bandwidth. So corporate clients like  Kenya Airways and 
Barclays Bank in Nairobi can call all their regional offices at almost no 
cost. Around 75 customers have signed up for this service.

Its international VoIP service has not been formally launched (although it 
started in November 2005) and has about 20 customers. It installs a gateway 
that diverts the traffic to IP also using an LCR box. The smallest gateway 
costs a client about US$500, whilst one of the larger ones (with around 30 
channels) would cost between US$2-3,000. Against Telkom Kenya’s 90 cents a 
minute to Washington DC it is offering 20 cents a minute to the USA and the 
UK but other destinations are slightly more expensive.

It is also launching a call-shop product offering both PIN-based and 
PIN-less dialling that according to UUNet CEO Charles Njoroge is a 
“retail-directed version of the same product.” The platform requires a 
leased line and a gateway but is pre- rather than the post-paid corporate 
solution. It will sell minutes to cyber-cafes and call-shops for about 
17-18 cents a minute allowing them to sell for 25 cents a minute to main 
destinations.

It makes much of its affiliation with Verizon (that now owns UUNet’s owner 
MCI):” Our affiliation with Verizon through MCI gives us access to tier 1 
services. Customers find the idea of tiered services hard to understand. 
You need lots of minutes to be able to deal with the big players. But we’re 
able to carry our minutes on tier 1 carriers with MPLS. Voice-quality is 
guaranteed”. Verizon wholesales minutes to them at 6 cents a minute (plus 
the cost of bandwidth).

Like AccessKenya it has chosen to go the quality route:”We’ve created both 
services with low margins by choice. We could squeeze more out of it with 
greater compression but we want to go for high quality to get big 
customers. It’s a strategic decision,” says Njoroge.

So who are the others in the market outside of the “big three”? Most of 
them are not well known for their voice services, although one of them – 
GeoNet – has launched a pre-paid calling card. But as one operator told 
us:”The suspicion is that some of them are simply in business to terminate 
non-Tier 1 minutes, particularly to mobiles.” The quality and volume of 
these non-tier 1 minutes has been so bad that leading mobile operator 
Safaricom was forced late last year to place adverts explaining that it was 
not responsible for the poor quality on these calls. As another operator 
told us:”It’s a real mess. There’s still an arbitrage opportunity and the 
only way out is to make the interconnection rate much cheaper. This will 
squeeze the grey market out of existence. The ball really is in the court 
of the mobile operators.”

And this is really the nub of the matter. It is relatively easy to send 
outgoing calls internationally by IP without needing to interconnect with 
the established networks. But for a proper market to function – with 
incoming terminations to all operators and national and domestic routing of 
calls – there needs to be a proper interconnection regime between the new 
and the old operators. As ever, interconnection is the devil in the detail.

Although no-one will go on the record because negotiations are clearly 
sensitive, it is clear that the old carriers are not making this process 
easy. They are putting up a range of quality-of-service barriers: for 
example, one of them is insisting on a minimum 120 millisecond delay on the 
network which is clearly not realistic when the satellite connection 
produces 4-500 millisecond delays on the international hop.

The other issue is that once everyone has gone through the predictable 
“delaying tactics” phase, there is the much more difficult issue of the 
interconnection prices themselves. Currently per minute landline to mobile 
is KS27 (US37 cents) and mobile to mobile KS10 (US14 cents). It doesn’t 
take a person of great genius to see that local interconnection rates are 
now well out of line with international rates that fall in the 20-25 cents 
range. It’s currently more expensive to call from the fixed network to a 
mobile network than it is to call the UK.

And as one operator observed ruefully:”It will hit the mobile carriers 
hardest, pulling income off their networks.” Another operator is more 
sanguine:” They have to give us what they already give each other. If 
Safaricom gives Celtel, KS10 to terminate on its network, they have to give 
us the same. The winner is the consumer who will get cheaper rates”.

Thus far everyone is focused on international calling but domestic calling 
cannot be far away. One operator explained to us that it would be perfectly 
possible to offer Nairobi-Mombasa calling for KS9 a minute against Telkom’s 
current rate of KS12 a minute. Or the client could pay a flat fee for all 
calls and simply use their bandwidth to make the calls. But as Njoroge 
noted:” Local VoIP will take some time but it will lead to the setting up 
of a local VoIP clearing house”.

But the process of customers deserting the incumbent’s network will 
probably take a long time as the majority of customers are still Telkom 
Kenya fixed line customers. The VoIP operators believe that the old 
operators should come to terms with them and together they would all grow 
the market.

Meanwhile Telkom Kenya has a pre-paid VoIP calling card for its fixed line 
customers. Although we have made requests for customer numbers, no 
information was forthcoming although one insider told us that it was 
probably in the “tens of thousands” on a fixed line customer base that was 
optimistically described as 300,000.  It offers the service with the 
interesting slogan of “Call internationally for the cost of a local call”. 
Think about the implications of that one: one or the other must be over or 
under-priced. A call to Washington DC costs KS15 (US21 cents) a minute 
against its own fixed line equivalent of 90 cents. In other words, the 
de-facto international rate is down to 20 cents and in the medium to long 
term it will lose 78% of its revenue from this type of calling. And for 
those without fixed lines, Telkom Kenya is probably already haunted by the 
spectre of legal VoIP call-shops and cyber-cafes.

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MAURITANIA GOES LOOKING FOR INVESTORS WITH A CALL FOR INTEREST

The Mauritanian government has just issued an international call for 
interest for the provision of new telecommunication services for the 
country. This includes mobile phone services, the routing of international 
traffic, the rollout and running of international links, the rollout and 
running of intercity links, the rollout and running of local links, the 
rollout and running of a VSAT network and the rollout and running of a 
pre-paid calling card platform for local, national and international calls. 
Mauritania wants to further expand its existing infrastructure which 
comprises two mobile network operators: Mattel owned by Tunisia Telecom and 
Mauritel the mobile arm of the privatised national incumbent (owned by 
Maroc Telecom) and one fixed line network (Mauritel).  Despite a 
teledensity of 26% at the end of 2005 which is above the African average 
teledensity,  Mauritania still remains behind some other countries in 
Africa with high calling charges, lack of service diversity and quality and 
an underdeveloped internet sector.

Rather than relying on the hypothetical goodwill of the existing providers 
to fill the service gaps (in 2004 the regulator ARE had to issue fines to 
the telcos for poor quality of service!), the government and the regulator 
have taken the view that further competition would spur the development and 
the improvement of the current service offering. With oil revenue expected 
to generate $300 millions this year Mauritania’s economic future is set to 
get better and this in return will stimulate enough demand for additional 
modern communications services. On the overall there is potential business 
to be made for any new entrants and furthermore there is the opportunity to 
acquire a telecommunication licence, something that is becoming rare in 
Africa too (see article about Telkom SA investments plans below).

When it comes to rolling out new telecommunication services pragmatism 
seems to prevail in Mauritania.  Through this call for interest, the 
Mauritanian regulator hopes to catch international investors attention and 
at the end of this process it will be in a position to evaluate who will be 
interested in putting money in a bid. This approach might show a lack of 
national strategy or vision of what the telecommunication sector should 
look like in Mauritania but it has the merit of maximising the success of a 
future call for tenders. Other African countries have failed to attract 
suitable bids when they put up for sale a stake in their national 
telecommunications assets – we only have to remember the failed call for 
tender for Nitel in Nigeria or Camtel in Cameroon.

Remi Fekete from Gide Loyrette Nouel, the lawyers appointed to advise the 
Mauritanian government and the regulator for this international call 
reckons that Mauritania is willing to become a leader in ICT in Africa and 
therefore it is prepared to implement a transparent bidding process to 
award new licences. According to Fekete, the national authorities have no 
preconceived ideas about which companies they would like to see applying 
and they have ensured that the selection criteria are clear to assess 
proposals based on service offering and business experience. Further 
information about this call for interest can be found on the regulator 
website at  www.are.mr

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SAFARICOM: GOVT COULD EARN BILLIONS FROM SALE OF 9PC SHARE TO VODAFONE

Until last week, the government was still clinging on to its shares in 
Safaricom Ltd, literally sitting on a jewel even as Telkom was tottering 
towards insolvency.

It has emerged that the Kenya government only consented to selling 9 per 
cent of the shares in mobile telephone company Safaricom Ltd to Vodafone of 
the UK, after realising that it was not going to be possible to raise the 
billions required to resuscitate the ailing Telkom Kenya.

President Mwai Kibaki also announced that an additional 34 per cent stake 
held by Telkom in the most profitable company in Kenya will be sold to the 
public in an initial public offering (IPO).

State-owned Telkom Kenya owns 60 per cent of Safaricom Ltd, with the 
British company owning the remaining 40 per cent.

The government must raise a massive Ksh27 billion ($375 million) to 
modernise the ailing parastatal and finance retrenchment of nearly 11,000 
staff who must be sent home to reduce the expenses from a bloated workforce.

But it does not have this kind of money in hand, and does not have the 
financial flexibility to borrow it.

One of the largest corporate organisations in Kenya – with a workforce of 
18,000 – Telkom is in deep distress, with losses ranging from Ksh3 billion 
($41.6 million) to Ksh5 billion ($69.4 million) per annum.

Indeed, Telkom Kenya's only valuable asset at the moment is the 60 per cent 
stake in Safaricom.

The government's argument has all along been that no potential strategic 
investor will take an interest in Telkom if its Safaricom shares are 
excluded from its balance sheet.

Thus, Kibaki's announcement last week not only signalled a major change in 
strategic thinking on the part of the government, but also showed that it 
had – at last – realised that there was more to gain in unlocking the value 
it owns in Safaricom shares, than in holding onto the shares of a company 
that has not paid it a dividend since it was established more than five 
years ago.

Indeed, at the rate at which Safaricom has been growing, and with reports 
that the company will this year be taking on a huge syndicated loan from 
the local banking sector, the likelihood is that the government and Telkom 
will have to wait for several more years before they can start receiving 
dividends from the company.

Still, success in either selling 9 per cent shares of Safaricom and 
floating another 34 per cent on the Nairobi Stock Exchange will depend 
greatly on what Vodafone wants and its own strategic interests.

Under an existing shareholders agreement signed in 1999, the government 
cannot sell its shares of Safaricom Ltd without the consent of Vodafone, 
which has pre-emptive rights over the shares.

In addition, the government will need Vodafone's co-operation to deal with 
the charges that have been placed on the company's shares by creditors.

Indeed, Safaricom has borrowed heavily, using the shares as security, with 
the consequence that these shares may not be available for sale until the 
debts are discharged.

In negotiating with the government, Vodafone will want major concessions, 
including renegotiation of the shareholders' agreement to reflect its 
enhanced shareholding position.

It is noteworthy that Vodafone is on record as having sought to buy more of 
Telkom's Safaricom shares, it intention being to assume 51 per cent 
shareholding of the profitable company and to include it in its 
consolidated accounts.

In April last year, the British conglomerate wrote to the Ministry of 
Finance offering to purchase 11 per cent of shares in Safaricom Ltd from 
Telkom at a price of $100 million.

The letter was addressed to the then Finance minister David Mwiraria.

The offer was accompanied by three proposals:

First, that Vodafone would waive its pre-emptive rights on Safaricom shares 
to support a listing of the company on the Nairobi Stock Exchange.

Second, that it would consent to a new shareholders agreement to reflect 
the new ownership structure.

And, finally, that Vodafone would expect Telkom to use some of the proceeds 
to clear interconnect debts owed to Safaricom.

Audit firm PKF Consulting, which had been appointed by the government to 
advise on the corporate restructuring of Telkom, had recommended that the 
government only sell 9 per cent of Safaricom shares to Vodafone.

It said that, with Vodafone at 49 per cent, the government could then 
negotiate a shareholders agreement whereby Vodafone and the government 
disposed of 12.5 per cent each to the public so that the public ended up 
with 25 per cent shares of the company.

How much is Safaricom worth and can the government raise enough money for 
Telkom's restructuring from selling 9 per cent?

That remains an open-ended question. However, going by the $1 billion 
enterprise-value-price that Vodafone put on the table in April last year, 
it is clear that it is possible for the government to get the money it 
needs – depending on how it negotiates.

It is to be remembered that the $1 billion enterprise value set by Vodafone 
in April last year was essentially a negotiating position to start proper 
haggling.

According to international conventions, prices of telecommunications 
companies are determined by the number of subscriptions.

Under one such convention, one line is valued at $400. With Safaricom's 
lines having increased to an estimated 3.8 million, sale of even a small 
amount of Telkom shares in the company can earn the government billions of 
shillings.

According to a valuation by PKF Consulting, the value of Telkom's 60 per 
cent shares in Safaricom is in the region of $471 million and $790 million, 
based on the financial statements and subscribers as at May 31 last year.

 From a review of Safaricom's financial statements for the four years upto 
March 2004, the following trends emerge:

First, revenues increased from Ksh1.6 billion ($22.2 million) in 2000 to 
Ksh18.8 billion ($261 million) in 2004.

Although the company had a high gearing ratio, it was attributable to 
syndicated term loans from local banks in 2002 and a euro-denominated term 
loan in 2003. There has been a tremendous improvement in debt collections 
and the ability of the company to offset its short-term maturing 
obligations, especially trade creditors.

Vodafone is one of the largest recent inward investors in Kenya, its first 
investment being the 40 per cent stake in Safaricom.

Since that time, the business has grown phenomenally. Safaricom has 
attracted over Ksh11.5 billion ($159.7 million) in private sector 
investment from both international and local investors, created over 15,000 
direct and indirect telecommunications jobs, and contributed more than 
Ksh25 billion ($347.2 million) in taxes as at 2004.

(SOURCE: The EastAfrican)

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UNITEL IN ANGOLA TO EXPAND ITS GSM NETWORK

Omnitele says that it has been contracted by operator Unitel to provide 
support services for the network expansion projects in Angola. Unitel has 
operated a GSM network in Angola since early 2001. Since the introduction 
of GSM services Unitel's subscriber base has been in rapid growth and today 
Unitel has more than one million subscribers. Due to strong demand for 
basic services and in order to enable mobile data services, Unitel is 
starting an important upgrade of the network functionality and capacity to 
serve up to 3 million subscribers.

The network expansion project includes deployment of various next 
generation MSC-servers in Luanda and Media Gateways in each of the 15 
provinces of Angola. At the same time EDGE will be deployed in the whole 
network in order to enable enhanced data services. In parallel with the 
core network capacity and functionality upgrade, a roll-out of 
approximately 700 base stations will take place to increase the radio 
network capacity and coverage.

Omnitele's services during the project consist of supervision of quality of 
network planning, different acceptance processes, project management 
support and technical support.

"This support agreement extends our cooperation to new areas. Previously 
Omnitele has been engaged in network quality audits, process development, 
network improvements and technology selection to name a few. The project 
schedule, the new technologies introduced in the network and the mere size 
of the radio network roll-out in sometimes difficult conditions is a great 
challenge to all parties involved in the project. Based on our experience 
of Omnitele's performance in the previous assignments, we are confident 
that Unitel will benefit greatly from Omnitele's vast expertise in this 
demanding network expansion project" - Mr. Nicolau Netto, CEO, Unitel.

The Mobile World notes that Angola has two active networks. They report 
that Unitel actually ended last year with just under 1.2 million customers 
while the CDMA operator, Movicel Telecomunica?s (a subsidiary of Angola 
Telecom) ended Q3 2005 a little short of 400,000 subscribers.

(SOURCE: Cellular News)

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SOUTH AFRICA: TELKOM EYES STAKE IN PORTUGAL TELECOM

Telkom may make a bid to expand its footprint into several African states 
in one large leap, by teaming up with potential bidders for Portugal's 
biggest telephone group, Portugal Telecom.

Telkom CEO Papi Molotsane was in Lisbon last week, and was in talks with 
telecoms company AR Telecom about making a joint bid for Portugal Telecom, 
according to media reports in Portugal.

Telkom spokeswoman Lulu Letlape declined to give further details, but said: 
"We're looking at growing, and this is one of the many opportunities that 
we've been approached about." Telkom would be interested in Portugal 
Telecom for its operations in several African countries, including a 25% 
stake in Angola's Unitel and a 32% holding in Morocco's Medi Telecom.

Portugal Telecom also has operations in Democratic Republic of Congo, and 
in Mozambique, Guinea Bissau, Kenya, Sao Tome and Cape Verde.

Telkom wants to expand across Africa, and has cited Angola, Botswana, 
Kenya, Nigeria and Congo as the most attractive targets. Last year it bid 
for a 51% of Nigeria's fixed and cellular operator Nitel, but pulled out 
because of a lack of transparency over Nitel's debts.

"There are very few greenfield licences available, so the only way for 
Telkom to expand into Africa is through acquisitions. Angola is an area 
that Telkom is interested in," said Gavin Joubert of Coronation Fund Managers.

"There is a chance that Telkom will want to buy the African assets of 
Portugal Telecom," said Claude van Cuyck of Sanlam Investment Management. 
"If there is any logic in such a transaction, it will be the focus on Africa."

Shares in Telkom were trading 1,4% down at R150,80 yesterday, giving it a 
market value of R84bn. Portugal Telecom has a market capitalisation of 
$11,2bn.

Telkom and AR Telecom could launch a joint bid against another Portuguese 
operator, Sonae, which made a $10,7bn offer for Portugal Telecom last 
month. Portugal Telecom rejected Sonae's "hostile bid" on the grounds that 
it was too low. Forbes.com reports that since Sonae was rebuffed, one of 
the country's leading banks, Banco Espirito Santo, has been preparing a 
counter bid. The bank is Portugal Telecom's second-biggest shareholder.

(SOURCE: Business Day)
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UGANDA: CMI, NETWORKS DENY PHONE TAPPING CLAIMS

The head of Military Intelligence and mobile telephone network operators 
have denied claims of mobile phone tapping and bugging. The claims, 
detailing the technical process, capacity and staffing were placed on the 
previously blocked website www.radiokatwe.com by "a Ugandan in the 
diaspora." The document claims that CMI and State House working with 
network operators tap into private phone calls of "suspects."

The site claims tapping is done in three categories; Levels 1, 2 and 3. 
"Currently, CMI can only tap and record 12 lines at a time. This is what 
they term as a "Level 1" report. Every two days, the recorded phone calls 
are taken to CMI headquarters at Kitante Road where they are tallied 
manually by a sorting team to search for call patterns and filtering for 
most suspected calls on these computer print outs," it alleged. At "Level 
2", it claims the tapping is done on foreign calls from countries of 
interest and are selected on the basis of the frequency of calls, time and 
area of the receiver.

"A foreign number calling politically sensitive parts of Gulu, Kitgum, and 
Kizza Besigye's home area of Rukungiri are made into a "Level 2" report," 
according to the website.

The "Level 3" report, category A is for phone numbers from a database that 
has been created and is constantly being updated. "Category A are numbers 
of high damage risk personalities," it claimed. This level's targets, it 
claims include; police officers from the rank of assistant inspector of 
police to inspector general of police, all cabinet ministers, all key media 
editors and reporters, and all major players and officials in the Buganda 
Kingdom.

It further said, "possible ways of realising that your phone is tapped is 
when you are speaking and you hear too much noise in the background or you 
hear an echo."

The site said the biggest mobile operators; MTN and UTL-Mango have CMI 
communications engineers stationed in their offices. CMI, MTN and UTL have 
dismissed the claims as rumours. The UPDF spokesman, Major Felix Kulayigye, 
dismissed the claims as political rumours.

'CMI is not tapping anyone's telephone," Kulayigye said last week. " This 
is one of those claims that should not be given attention, all the 
allegations on that website are false."

Asked whether CMI would tap phones of suspected terrorists, Kulayigye said 
that would not be a subject for media discussion.

MTN publicist Phillip Besiimire on Sunday said the network "does not have 
technical capacity to tap anyone's telephone."

This is not the first time a complaint of phone tapping comes to light. 
Former Lira Municipality MP Cecilia Ogwal in 2003 attacked MTN and CMI 
accusing the two organisations of tapping her mobile phone.

FDC Coordinator Anne Mugisha also accused UTL of conniving with the 
government to tap phones of political opponents during the recently 
concluded general elections.

(SOURCE: The Monitor)
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RACE FOR TUNISIE TELECOM STAKE HEATS UP

Six companies are reported to have placed bids to acquire a 35% stake in 
Tunisia's state telco Tunisie Telecom, according to the Tunisian 
communication ministry.

Tunisie Telecom is the monopoly fixed-line operator in Tunisia and is 
estimated to control 72% of the country’s mobile market with 3.2 million 
subscribers at the end of last year. It also holds a 51% stake in 
Mauritania’s Mattel, which had 250,000 subscribers at the end of last year.

The stake is valued at around US$1.8 billion and is reported to have 
attracted bids from France Telecom; Vivendi Universal; South Africa’s MTN; 
as well as Etisalat. It has been reported that TECOM, the Dubai-based 
telecoms provider that was acquired by Emirates Integrated 
Telecommunications Company in February for US$330 million, and the 
organisation behind the second operator all-service UAE operator, ‘du’ is 
also a qualified bidder.

TECOM’s apparent qualification would be anomalous for two reasons. First is 
that the entity no longer exists in its own right having now been absorbed 
into EITC, and second that Ahmad Bin Byat, chairman of EITC has stated that 
the company will effectively be a local one, restricting its focus of 
activities on the UAE market.

“This is an emirates company, its main focus is the emirates and I believe 
we have the world here,” Bin Byat told CommsMEA recently.

The sixth bidder for the stake in Tunisie Telecom is reported to be a 
partnership between Telecom Italia and Saudi Oger, a bid no doubt 
established to replicate the success the two parties enjoyed in bidding for 
a controlling stake of Turk Telecom last year.

Last October, thirteen players were reported to have pre-qualified for the 
stake in the Tunisian telco – and included Bahrain’s Batelco, Saudi Telecom 
Company, Telefonica Portugal Telecom, Bouyges Telecom, and T-Mobile.

Financial offers for the operator are set to be examined in the second half 
of March in the presence of all the bidders but the name of the winner will 
only be known in about three months time, according to reports quoting the 
ministry. An auction may be considered if offers are within 10% of each other.

(SOURCE: ITP Technology)
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ETHIOPIA: TEN HOSPITALS TO BEGIN TELEMEDICINE SERVICES SOON

Ten selected hospitals in the country will soon begin telemedicine services 
to fight poverty and increase the current poor health coverage, officials 
said on Wednesday.

The hospitals to get the facility are those in rural parts of the country 
with an average distance of 500 KM from the capital.

"We have been undertaking pilot projects in the past few weeks where we 
have seen encouraging results to expand the service at large. Thousands of 
people are expected to get the service, particularly in the rural areas of 
the country. The service seeks to provide an online network for selected 
ten hospitals and health districts in the country" Ethiopian Minister of 
Health, Dr, Thewodros Adhanom Said.

When the service goes fully operational in all the selected hospitals and 
health districts, the telemedicine is hoped to help reduce the high 
infant's mortality rate, one of the highest in the world, and to increase 
the current 60 % health coverage in the coming few years.

"The telemedicine service we have launched here in Ethiopia would also help 
us in the fight against poverty and would reduce infant mortality rates in 
the country to achieve the Millennium Development Goals (MDGs). 
Telemedicine has a big advantage for countries like Ethiopia where over 85 
% people are living in rural parts," Dr. Adhanom said.

With an estimated 74 million people, Ethiopia has 190 hospitals, including 
those hospitals belonging to private and NGOs.

According to available information from the Ethiopian ministry of health, 
one doctor is said to give medical services for 38,000 people.

Statistics shows that Ethiopia has around 2,000 doctors in total.

Out of the estimated 2,000 doctors, around 60 % of them are said to be 
concentrated in the capital, Addis Ababa where around five million people 
live.

Telemedicine is most useful when patients are extremely isolated such as in 
remote and rural communities or where specialist are in a very high demand, 
according to Dr, Nega Alemayehu who is a telecommunication expert .

"The already installed Broadband Multimedia and Broadband VSAT networks 
could therefore enable telemedicine to run successfully and properly 
implemented far better than the previous available telecom technologies," 
the expert said.

(SOURCE: The Daily Monitor)
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WEB TOOL BUILDS AFRICAN LANGUAGE COMPUTING

LocaleGEN, an online tool to help build African language locales in up to 
700 African languages, will be released. Alberto Escudero-Pascual, a 
software localisation developer known for his work on the Swahili 
translation of Linux (KiLinux) is responsible for the development, and says 
the tool aims to help facilitate the creation of African language locales.

A locale is a set of software parameters that defines a user's language, 
country and any special variant users want to see in their computer 
interface, he says. “A major challenge for Africa in terms of computer 
access is language and linguistic barriers,” says Escudero-Pascual, who is 
based in Sweden. LocaleGEN aims to overcome these barriers.

There is a great need for localisation projects like the one 
Escudero-Pascual has developed, says Nhlanhla Mabaso, manager of the CSIR 
Open Source Centre. “About 50 million people in East, Southern and Central 
Africa are unable to absorb the Internet and other computer software suites 
because all the ICT vocabulary is in the mainstream languages of English 
and French, leaving Africa and Africans with a great need for IT software 
support”

According to Escudero-Pascual, the online tool is a platform which allows 
not only developers but “minority” language users to submit language 
specific information in order to build locales that suit specific users and 
communities. “In the Igbo province of Nigeria for example, there is 
four-day week as opposed to a conventional seven-day Western day week.”

The data collection and standardisation tool has been on trial for a month, 
and has already been used to build six locales in the African languages of 
Ewe, Akan, Gaa, Lingala, Igbo and Kamba, says Escudero-Pascual.

He is hoping local developers will use the tool, to build a large common 
locale data repository.

After the submission of the different linguistic data by the interested 
user, Escudero-Pascual and his team are responsible for the checking of the 
internal technical details and the submission and standardising process.

Escudero-Pascual and his team are creating the locales around the open 
source OpenOffice software package.

“Localisation of software in Africa is slowly taking shape, but there is a 
definite gap around the developing of ‘African' software,” said 
Escudero-Pascual.

(SOURCE: http://www.itweb.co.za)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A COMPUTER FOR AFRICA

Ochuko Onoberhie is from the Fantsuam Foundation in Nigeria, a non-profit 
founded in 1996. Among the many many projects pursued by the organisation 
one -- the Solo computer -- stands out. The Solo computer is a plan to 
create a computer that can withstand the heat, dust and irregular power 
challenges many African countries suffer from.

The Solo is being developed in partnership with a group of software 
designers based in the UK with Fansuam field-testing the latest prototypes. 
Visually the Solo is noticeably different to other PCs: It looks -- and is 
-- small and not much bigger than a regular motherboard.

Despite its very different appearance and its size the Solo comes with all 
the same ports and connectors as a regular PC. Unlike most other computers 
other machines, though, it doesn't have any moving parts that might fail, 
the hard disk is replaced by a flash card and it has been engineered to 
work with as little power as possible so it can run from a solar panel. A 
typical PC's power consumption is around 300 watts, whereas a Solo's is 
just 8.5 watts.

The prototype Solo uses a meagre 17 Watts of power including the LCD 
screen. The final design of Solo will use a digital screen interface and is 
expected to draw only 8.5 Watts including other power-saving refinements. 
These will permit it to be run from a single 10W solar panel, and still 
leave a little spare to charge a battery.

"We didn't want to call it the solar computer," says Ochuko Onoberhie, "but 
it does work with renewable energy. So, the name solo computer was coined 
for it, in part because of its mobility."

The Solo is currently in a testing and development stage although Onoberhie 
says a production version is likely to be ready later this year.

Onoberhie says that the Solo has been designed to deal with the challenges 
of technology usage in developing nations. One of these challenges is the 
issue of heat and dust which causes computer failure. Then there is also 
the issue of high humidity, high temperatures and harsh weather conditions.

"The Solo doesn't have any hard-driver with any moving parts and it works 
on eight-and-half watts. If you can afford a 650 va UPS you can be on for a 
very long time when the power fails," says Onoberhie. British company 
Explan are the technical partners on the project.

The production units will be a single-box design with the LCD screen in 
front of the computer motherboard. The entire device will be solid state, 
incorporating a derivation of RISCOS in ROM, applications in Flash RAM and 
the usual RAM for workspace.

Onoberhie says they expect that once released the Solo will have a lifespan 
of many years and need little in the way ongoing maintenance. "The only 
thing you might want to replace is your battery. These are nickle metal 
hydride high-temperature batteries. They are triple A battery size, and 
stacked in two sets, in a box with an intelligent processor, which makes it 
hot-swappable so you can swap one out when low on charge," he says.

Once in production the Solo will run at around 500 megaherts on an ARM 
processor with 256MB of memory and 2.5GB of flash drive capacity. "It's 
hoped that data storage will be more external than internal -- through 
devices like the USB pen, and flash disks. You could plug in a USB CD 
drive, which it supports. Maybe even find a way to power it externally, if 
it's necessary," says Onoberhie.

The Solo will run the Debian GNU/Linux operating system. Currently, during 
the testing phase, the Solo has been installed with Debian Woody but once 
released it will be installed with Debian Sarge, the latest version of the 
community-driven Debian Linux distribution.

(SOURCE: Tectonic)



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