Strive Masiyiwa: Blessing that can become a curse
Sunday, 23 June 2013 00:00
“INNOVATE or die,” Mutambara retorted dismissively in response to bankers’ complaints against the EcoCash platform. While it indeed might be true that the banking industry is protesting merely out of capitalist envy, they may have inadvertently stumbled on a serious regulatory issue.
If Econet is not reined in, it will soon present a significant national security threat. Yes, a national security threat.
Mutambara, despite his impressive technical background, has allowed the Econet PR machine to blur the facts of what is actually happening.
This is not a question of innovation; there is ample innovation within the mobile money sphere.
The point of contention is the USSD protocol and how Econet is trying to frustrate financial institutions that want to take advantage of USSD to create their own applications.
The USSD protocol cannot and should not be monopolised by a mobile operator.
Econet has managed to get away with their anti-competitive mischief by obfuscating the argument into one of integration with EcoCash.
This has absolutely nothing to do with EcoCash integration.
When questioned about these issues Econet misleads journalists by pointing to banks that have integrated with EcoCash.
USSD has nothing to do with EcoCash.
Financial institutions are interested in implementing their own solutions via USSD and Econet is frustrating their efforts.
A simple way to understand USSD is to think of it as an SMS service that can send commands and data to a computer. The computer then responds with information or a request for additional information.
The difference is that USSD creates what are known as sessions whereas SMS does not.
In an SMS you send a text to another phone while USSD involves a user interacting with computer software.
This is a crude abstraction but should be enough to give the technically uninitiated some insight into what is actually happening.
It would be outrageous if Econet refused to allow a competitor offering a rival product unfettered access to SMS.
This seems obvious to most of us as we use SMS daily and it seems intuitive that the service should be open to as many as can afford to pay the associated charges.
The same way subscribers feel about having unfettered access to SMS to conduct their daily business is precisely how software developers feel about USSD.
ZimSwitch has implemented its own mobile banking product that rivals EcoCash but Econet refuses to cooperate to allow its network to be used for unrestricted USSD operations outside of EcoCash. This is scandalous.
Telecel and NetOne have fully opened up their networks and ZimSwitch Mobile has already deployed on Telecel but the growth of their product is threatened because the largest network provider is being anti-competitive and is frustrating their efforts.
For the avoidance of doubt, I am talking about mobile-to-mobile payments on bank platforms as well as Zipit to mobile payments. Econet is the only operator in Zimbabwe that is refusing to allow these types of USSD transactions to operate on their network. When questioned, they offer slanderous and shamelessly dishonest excuses such as allegations that their customers will be spammed. This is nonsense.
It’s our spectrum not yours
It is important to realise that the spectrum that Econet is using belongs to the people of Zimbabwe.
There is a limited amount of spectrum and those who are given the privilege of being allocated usage of that spectrum must understand that they are leasing a resource that belongs to all Zimbabweans.
It is our spectrum; it does not belong to Econet.
It is because of this fact (the limited nature of spectrum) that network operators are obliged to allow access to the networks they develop.
This is the price they must pay for enjoying the privilege of having allocated space.
They cannot monopolise their networks through uncompetitive practices as Econet is currently doing.
The capital to set up the network might belong to Econet, but the right to use the limited spectrum is a privilege with carries with it a number of responsibilities.
Those responsibilities include providing access to other operators at reasonable cost. Econet is refusing outright to do this.
Regulating the Econet beast
This brings us to the wider issue of regulation.
While we applaud the growth of Econet and the many jobs it has created, we must also have the foresight to realise that this growth presents a number of regulatory challenges.
If we extrapolate the growth of Econet from the past five years into 2020, it is clear that it will soon completely dominate the market.
This is dangerous.
While Econet might seem very much benign with their cheerful ads on social responsibility, there are already some troubling indications that it is abusing its dominant market position.
The USSD battle with financial institutions is a clear example of this.
The authorities need to do more to create very vigorous regulatory framework to govern the operations of companies that gain a dominant market position like Econet.
This is not to suggest that they should be frustrated in their operations, far from it.
We simply need to ensure that they play by the rules of fairness and equity.
NetOne-MTN merger
It is quite unlikely that the management at NetOne (political as it is) will entertain a merger with MTN or another powerful player given that means they will likely lose their jobs.
Apart from political resistance, our indigenisation laws also present a number of complexities that would stand in the way of such a merger.
This is unfortunate.
A NetOne-MTN merger would rebalance Econet’s dominant position and ensure that a well-equipped rival keeps it in check. It would also offer mobile phone users more choice.
I am not in the know as to why the regulators are unwilling to allow a fourth player into the industry but I could bet a tidy sum that it has more to do with protecting incompetence and mediocrity than protecting the interests of ordinary people.
National Security
These past few weeks we have all watched in disbelief as Edward Snowden, a former NSA contractor, detailed how PRISM, a covert spying operation by the Americans, is collecting mobile phone metadata and Internet communications and storing it in vast data centres. This has been facilitated through Internet companies and mobile phone network providers such a Verizon.
To put it in simple language, the United States has all the information that Walter Mzembi, Saviour Kasukuwere, Emmerson Mnangagwa, Jacob Zuma, Thabo Mbeki or any other public official has ever exchanged via services such as Yahoo, Gmail and other large internet companies.
We know that Verizon has been named as a co-conspirator as regards mobile phone metadata but cannot be sure that it is the only company that has co-operated with the Americans.
This brings us back to the issue of having a single dominant player who controls such a large amount of mobile communication data.
Given Masiyiwa’s cosy relations with the Americans one can be forgiven for being concerned.
The solution is not a direct assault on a particular operator.
Instead, what we need are broad regulations that impress upon all operators, encouraging open network as well as, perhaps even more importantly, robust competition.
Without that we risk entrusting one company with 80 percent of our national data.
Not entirely apropos
Talking about national security, I heard someone propose a communications interception centre of some sort.
Such a facility would chew up to US$22million
To me that would be a waste of funds.
We have plenty of office space at Mukwati Building.
What we need are competent computer scientists, software engineers and mathematicians.
Spending those millions on tempting back whiz kids like Tendekai Muchenje and other sharp minds who have been lured by Microsoft would be a far better use of funds.
The problem with information systems is the dynamic nature of the industry.
Hardware is not the issue.
You need to keep up with the leading technologies. Knowledge is the problem, not hardware. Many of the viruses wreaking havoc on the Internet are built in bedrooms and basements.
Many of the most prolific hackers do not even have offices.
It would be much more beneficial to invest those funds in human resources.
These talented minds will not subject themselves to poor salaries when they know full well what they are worth.
This is why GCHQ is now paying industry level salaries.
We need more brains and less bricks.
This is my own estimation; I hope time will prove me wrong.
Still deviating off topic, I remain puzzled by Strive’s self-imposed exile.
Unless he has done something particularly sinister that we do not know about I cannot see why the authorities would wish him ill.
Nigel Chanakira, who actually suffered scrapes with the law, lives peacefully in this country.
Geoff Nyarota, who did Strive’s Daily News dirty work, equally lives in peace to the point of actually seeking public office (an ambition sadly put to rest in the recent MDC-T primaries).
His political proxy, Tsvangirai, has cosied up to Mugabe and would have more reason to fear harm from an STI than fate at the hands of the security services.
He (Strive) has not been charged with any crime, nor has any public official made utterances that could be read as hostile.
Job Sikhala routinely calls Mugabe a murderer, but is allowed to carry on unmolested by the security services.
So what exactly is Strive afraid of?
Ndatenda, ndini muchembere wenyu Amai Jukwa
Labels: ARTHUR MUTAMBARA, ITC, MAI JUKWA
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Zimbabwe tele-density soars 16 percent
Sunday, 17 February 2013 00:00
Prince Mushawevato
The number of Zimbabweans with access to a telephone has risen by 16 percent, latest figures from the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) show. Potraz deputy director-general Mr Alfred Marisa last week said a continually expanding mobile telephone service sector was driving the growth of tele-density in the country.
Global telecommunication regulator, the International Telecommunication Union (ITU), defines tele-density as the number of telephone main lines per 100 inhabitants in a particular country or territory.
“A number of factors have contributed to the increase of tele-density over the years,” said Mr Marisa.
“We expect it (tele-density) to continue increasing as more people pursue these new technologies. The rural populace that has previously been marginalised is also moving in to close the gap.”
As of January 2013, the total tele-density rate for both mobile and fixed telephony stood at 91 percent from 75 percent that was recorded in December 2011.
While mobile tele-density has been on the increase, it is a different case with fixed tele-density, which has, since the advent of mobile technology, been on the decline.
In the last three years, TelOne has lost close to 100 000 subscribers.
In the period in question, mobile penetration increased by 16 percent, while fixed telephony dropped by 0,2 percent.
Local subscriptions for the Internet now stand at 4,5 million, representing a 34,4 percent leap from two million subscribers recorded in 2011, Potraz statistics also show.
Local information communication technology (ICT) players contend that the introduction of favourable policies by Government and the slashing of SIM card prices have helped boost business within the sector.
The duty-free rebate on the importation of ICT gadgets has also been a boon for mobile handset vendors, including other equipment suppliers as well.
Also, increased investment in communication infrastructure has meant that previously marginalised areas can now afford to use mobile phones.
Since the stabilisation of the economy in 2009, SIM cards are now reasonably priced.
During the height of the country’s economic challenges, the price of SIM cards peaked to more than US$100 on the black market as the cards were scarce.
However, they now average US$1 and are readily available.
Furthermore, an ordinary handset can now be purchased for as little as US$10.
It is believed that Zimbabwe’s three mobile service providers — Econet Wireless Zimbabwe, Telecel Zimbabwe and the State-run NetOne — now have a combined subscriber base of more than 10 million.
In 2011 the figure stood slightly above seven million subscribers.
Recently, Econet, which is the country’s largest telecommunications company by market value and subscribers, announced that its subscribers had reached 8 million, buoyed by the company’s extensive coverage around the country.
Going forward, Mr Marisa also noted that the increase in tele-density has been in line with the increase in the country’s population.
The Zimbabwe National Statistics Agency’s (Zimstats) recent preliminary national population census results revealed that the country’s population had marginally increased to 13 million, up from the 11,6 million figure that was recorded in 2002.
The country’s tele-density has been gradually increasing since the adoption of the multi-currency system.
However, in 2011 the figure took a dip after Potraz de-registered subscribers that had not registered their lines.
The increase in telephone penetration has seen the country improve its ranking in the region, competing with countries such as Botswana, Namibia and South Africa.
Government intends to achieve a 10 percent growth rate in tele-density on an annual basis through 2015.
Meanwhile, the tele-density figures are expected to continue growing as Potraz is set to roll out more base stations across the country.
The tele-communications regulator announced last year that it would construct at least 43 new base stations in poorly serviced areas throughout the country under the second phase of the Universal Services Fund (USF). More than US$20 million is expected to be sunk into the project.
Labels: ALFRED MARISA, ITC, POTRAZ (ZW)
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Bolivia: Evo Morales Announces Nationalisation of Spanish Electric Company
by Allendria Brunjes, 01 May 2012.
The Red Eléctrica Internacional SAU is now in Bolivian hands, after President Evo Morales announced today the nationalisation of the Spanish-owned electric company.
About an hour before the Labour Day announcement, military personnel in Cochabamba occupied Calle Colombia outside of the Transportadora de Electricidad building, according to the Bolivian daily Página Siete.
The national newspaper reported that the president read a Supreme Decree of nationalisation, then instructed the Armed Forces to take over the company’s headquarters.
“Nationalised are all the shares comprising the capital stock held by the company Red Eléctrica Internacional SAU, to be transferred and registered as shares of the State of Bolivia under the ownership of the National Electric Company of Bolivia (NSDS).”
Morales said that the decision is a fair recognition to the workers and the Bolivian people who “fought for the recovery of natural resources and basic services.” He noted the nationalisations of oil companies, telecommunications and power generation facilities that also share the May 1 anniversary. On May 1, 2010 the president also nationalised the four largest hydroelectric plants in Bolivia.
The move comes just a couple of weeks after Argentine President Cristina Fernández de Kirchner announced that her country would be renationalising YPF, taking over 51% of the oil giant’s shares. The move was met with hostility from Spain, where Repsol-YPF is currently based.
“Breaking the rules comes with a cost and Argentina could turn itself into an international pariah,” Spain’s secretary of state for European Affairs Inigo Mendez de Vigo said in an interview after the announcement.
Labels: BOLIVIA, EVO MORALES, ITC, NATIONALISATION
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Zamtel customer base expansion plan will continue - Mwanakatwe
By Speedwell Mupuchi and Gift Chanda
Thu 02 Feb. 2012, 13:59 CAT
NEWTON Ng'uni says Zambia has suffered great losses in privatising some of the public companies. And Zamtel's newly appointed chairman and chief executive officer Dr Mupanga Mwanakatwe says the company's network and customer base expansion programme will continue following the government's recent takeover of the institution.
Congratulating President Michael Sata and his Cabinet's decision to reverse the sale of 75 per cent shares of Zamtel to Lap Green Network of Libya on account of corruption, Ng'uni, former Deputy Minister of Finance during Frederick Chiluba's regime, also said the simplicity with which the head of state is dealing with many of the issues afflicting Zambia must have unsettled many of his would-be critics as they do not know how to respond.
Ng'uni said reversing the Zamtel sale was one of those things that the Patriotic Front government has done correctly.
"Zambia has suffered great losses in privatising some of the public companies. For instance, Zanaco was stolen from the people of Zambia and I do not understand why the transaction has not been reversed or the buyers asked to pay the true value of the bank at the time of acquisition. The mines, Konkola and Mopani, were sold for a song at the behest of the IMF and the World Bank. At least we should have imposed a high tax on these mines to compensate Zambia," he said.
Ng'uni said former finance minister Dr Situmbeko Musokotwane's sentiments that reversing the sale of Zamtel would be costly and injurious to Zambia's attraction as an investment destination for foreign capital was false.
"Similarly, the declaration by the chairman of LAP Green that Zamtel belonged to the Libyan people and therefore, the Libyan people will fight to retain it is a misplaced form of ill conceived and internally doomed bravado," he said.
"The true position is that the purported sale of Zamtel by the Zambian Government and the purchase of the sale by the LAP Green were non-events as they did not occur. The procedure to buy a parastatal company in Zambia is cast in law. Anything done outside that procedure renders everything null and void, regardless of the position assumed by the President in private meetings with the buyers."
Ng'uni said the transaction consummated by LAP Green over Zamtel was stillborn from the beginning.
He said there was no expense incurred in reversing a fraudulent transaction and urged government to quickly decide whether there should be any compensation to be considered.
"Foreign investors are not thieves and all genuine investors will be happy with Zambia because they now know that one cannot cut corners to acquire public property in Zambia. They will all ensure that procedures are followed to the letter when investing in Zambia," he said.
Ng'uni said the Libyan people were not thieves who want to be going around the world fraudulently acquiring other nations' properties.
And in a statement yesterday, Dr Mwanakatwe assured the general public that Zamtel's ambitious growth and investment plans had remained on track.
He stated that the country's only total communication solutions provider would continue to pursue an aggressive growth path, adding that operations have continued to run smoothly since he assumed office on January 25.
The Zambian government recently wrestled control of Zamtel from Lap Green Networks after a commission of inquiry set up by President Sata revealed irregularities in the sale of the telecommunication company.
Over a week ago, the government announced the reversal of the sale of Zamtel's 75 per cent shareholding to LAP GreenN, saying the transaction was done corruptly.
And Dr Mwanakatwe paid tribute to Zamtel employees for their professional conduct and dedication towards the growth of the telecommunication company.
"Our ambitious growth and investment plans remain fully on track. We are, for instance, currently in the initial phase of replacing our copper wire network with a modern state-of-the art optical fibre network," Dr Mwanakatwe said. "Our 3G roll-out plan is also on course and very soon we shall be inviting some of our valued customers to participate in product testing."
He said the company is committed to running as a profitable entity dedicated to making a meaningful and lasting contribution to national development.
Dr Mwanakatwe further called on stakeholders to support Zamtel by signing up for its wide range of products and services cutting through its three product descriptors - fixed line, mobile and broadband data.
"Our biggest stakeholder is the Zambian people and if we are to show leadership as is expected of us, it is imperative that we have their support," said Dr Mwanakatwe.
Labels: ITC, ZAMTEL
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Irregular deals face reversal, says PF
TIME PUBLISHED - Saturday, January 7, 2012, 5:44 am
THE Patriotic Front (PF) says it may reverse “all” the wrongly awarded contracts that were entered into illegally by the former MMD government in various sectors, party secretary general Wynter Kabimba has said.
Mr Kabimba said the MMD government committed many mistakes during its tenure of office and that the PF government has started “correcting” them.
“All Zambians know that the sale of the US$257 million Zamtel to Lap Green of Libya was not done in the best interest of Zambia,” Mr Kabimba said.
“The President is even failing to have private conversations with other Heads of State because the security system of the country has been sold to another country.”
“The sale of the Zambia Telecommunications Company Limited (ZAMTEL) by the previous administration to Lap Green of Libya has put the country’s communication security at risk,” he said.
PF Secretary General Wynter Kabimba said the sale of ZAMTEL to a foreign country was not done in the best interest of citizens and that the PF was resolved on correcting such wrongs.
“It is a well known fact by all Zambians that the sale of ZAMTEL to Lap Green of Libya was not done in the best interest of Zambians. As PF Government, these are wrongs that we want to correct, in the best interest of the nation,” Mr Kabimba said.
He said ZAMTEL was a significant communication service provider and needed to be handled prudently to avoid placing the country’s communication system at risk.
Mr Kabimba said that the MMD acted against the will of Zambians to sell ZAMTEL.
Mr Kabimba said; “These are the wrongs that we want to correct, in the interest of the nation.”
He was speaking on the Radio Phoenix programme “Let the people talk” with veteran journalist Frank Mutubila from Lusaka yesterday
He also said the PF is ready to work with opposition United Party for National Development (UPND) to foster economic development in Southern Province.
Mr Kabimba said government is willing to work with the UPND to enhance development in Southern Province.
He said the PF does not perceive UPND “as an enemy” of the government and that it is more than ready to work with the opposition party in implementing development projects in the province.
Mr Kabimba said the PF is happy that some UPND members have shown willingness to work with the ruling party.
He was responding to a caller who wanted to know if the PF government perceives some people in the UPND as enemies.
But Mr Kabimba said despite the political differences that existed between the two parties in the past, the PF government is working hard to unite all the 73 tribes in Zambia to promote peace and unity and spearhead development in all parts of the country.
“The Patriotic Front doesn’t have enemies in the UPND or other opposition parties. We want to work with our brothers and sisters in the opposition. We are happy that UPND has supported us in some of the governance issues.
“We are inviting them to work with us so that we can develop this country. Let us put all our political differences aside and unite for the sake of development,” Mr Kabimba said.
He also said the PF government remains committed to fighting corruption in the country.
He assured the nation that the PF will continue to pursue and implement pro-poor social and economic policies, which will help to improve living standards.
Meanwhile, the UPND has welcomed Mr Kabimba’s call for the two parties to work together.
Spokesperson Charles Kakoma said the UPND is happy that the ruling party has extended an olive branch to it.
Mr Kakoma said the move taken by the PF will help to promote unity and development not only in Southern Province, but in all parts of the country.
He said the UPND is happy that the PF has shown political maturity by inviting the opposition to work with it in implementing development projects around the country.
“We have accepted this olive branch which has been extended to us and we are pledging to work with the PF government for the purpose of fostering development in our country,” he said.
Labels: CORRUPTION, ITC, NATIONAL SECURITY, WYNTER KABIMBA, ZAMTEL
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Zamtel 3G technology rollout advances
By Mwila Chansa-Ntambi
Thu 15 Dec. 2011, 13:55 CAT
ZAMTEL says its 3G technology rollout has reached an advanced stage. In a media statement released yesterday, ZAMTEL chief commercial officer Amon Jere stated that 92 3G (third generation) sites had so far been deployed in Lusaka and the Copperbelt while Southern Province was expected to go on air by the end of the year.
"It's a countrywide roll out that will see us deploy 450 new 3G and 2.5G sites and once these go live, our customers will enjoy the fastest mobile broadband in the country with high internet speed downloads for multi-media content," Jere stated.
And Jere has assured ZAMTEL customers that the telecoms company would provide the high speed broadband at affordable rates and provide affordable mobile broadband terminals in all outlets countrywide.
"We want to add value for money for our customers. Our strategy is to provide something for everyone. At ZAMTEL, we do not believe in one size fits all products and services because we understand that people have varying lifestyles and so we endeavor to introduce tailor made offerings to fit individual lifestyles and pockets," Jere stated.
He noted that internet penetration in Zambia was quite low estimated at 3.7 per cent of the population but that the status quo was expected to improve once the 3G mobile internet is launched.
Jere stated that ZAMTEL's network expansion had come in the wake of its increased investment into the mobile network which had seen its customer base grow by 200 percent in 12 months, a development Jere says makes
ZAMTEL Zambia's fastest growing network.
Labels: AMON JERE, ITC, ZAMTEL
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Zim sees mobile phone sector boom
by Godfrey Marawanyika
28/09/2010 00:00:00
ZIMBABWE’S cellphone subscribers have increased four-fold since a unity government took office last year, but local firms say they battle to attract investors who worry the country’s political truce won't last.
In 2008, when the local currency was ravaged by world-record hyperinflation, SIM cards were selling for up to $220 - not including a phone.
The lucky - and wealthy - few who could afford cellphones were routinely greeted with messages such as "The number you have dialled is not reachable, please try later" or "The number you dialled does not exist."
Then the local currency was abandoned and the unity government took office in February 2009, and the price for a SIM card fell to $1. Even in a country where per capita GDP is just $160, and unemployment is estimated at over 90 percent, people have snapped up phones.
Forty nine percent of the nation's 12-million people now have a cellphone, up from 9 percent 17 months ago, according to government data - making telecoms of the few industries to rebound strongly after a decade of economic freefall.
Zimbabwe has three mobile operators, but Econet Wireless controls 73 percent of the market and has dramatically upgraded its network, using earnings from its operations on the rest of the continent.
When Econet unveiled its 3G network a year ago, lines snaked through the streets as people rushed to spend $100 for the service. Econet CEO Douglas Mboweni believes telecoms in Zimbabwe still have room to grow.
"With a mobile penetration rate of 40percent, there is still a significant demand for communication services in Zimbabwe," Mboweni said in a circular to shareholders.
Investors are still reluctant to enter the market, as long-ruling President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai feud over political posts and begin to mull elections in the next year or two.
Political risks only add to difficulties of investing in Zimbabwe, which ranks 159 out of 183 countries in the World Bank's ease of doing business index.
While Econet has expanded rapidly, state-owned operator Net One has battled to find investors to upgrade its systems.
"This is a vibrant market, but the problem is that investors always want to buy our companies at discounted prices because of perceived risk and they want to use this as a discount to get our assets at a lower value," said Net One managing director Reward Kangai.
Zimbabwe's government is spending $6,2-million dollars to link Zimbabwe to fibre-optic cables running under the sea on both the Atlantic and Indian coasts of Africa.
Technology minister Nelson Chamisa says the link will improve both phone and internet services for fixed lines and cellphones, which he hopes will help lure investors.
"This is the best time to enter the market because we are a virgin market, there is huge potential," said Chamisa.
"We are inviting investors to launch internet, mobile connectivity here despite the 'so-called fears'. We need investors."
Government has also removed import duty on all cellphones and computers, hoping to promote investment in technology.
Aimable Mpore, chief executive offer of Telecel, the second largest mobile operator, said he believed links to the undersea cables will change the market.
"Zimbabwe has been starved (of connectivity) but it's coming," he said.
"The sector has recorded growth over the past two years due to dollarisation. Before that operators could not buy equipment like base stations and other things we use."
"Even in stable economies there are risks," he added. - AFP
Labels: DOUGLAS MBOWENI, ITC, MOBILE PHONES
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MDC claims news service blocked
by Staff Reporter
22/06/2010 00:00:00
THE MDC-T party has accused the country’s telecoms regulator of leaning on mobile phone companies to block its news platform which was meant to counter “biased” coverage of its activities and leaders by the state media.
Under the platform, which was launched a week ago and dubbed “voice of real change”, subscribers could dial given numbers and the party would call them back with various news and information options.
“The options will include, news round-up, President Morgan Tsvangirai’s weekly message, the MDC’s position on the Constitution making process, party events and a feedback platform where Zimbabweans can leave their messages to the party,” the party said.
The service was initially said to be available on Econet lines – the country’s largest mobile phone service provider - but the MDC-T insists that Telecel, another private operator and the state-owned NetOne were also offering the service.
However the party said Econet has since terminated the service under pressure from the country’s telecoms regulator.
“(Still) it is heartening to note that the other lines, Net-one and Telecel lines used in the audio service have not been blocked and continue to operate without any hindrances,” the party said on its website.
Closure of the service followed a threat issued by columnist Nathaniel Manheru in the state-owned Herald newspaper who warned Econet to be careful since “operating licences would be up for renewal soon”.
"The next polls will be fought on the waves, which is why Econet, and its card-carrying owner, Strive Masiyiwa, are so critical to the MDC-T.
"We wait for a new propaganda service, which MDC-T seeks to unveil on June 14, using Masiyiwa’s network, through a toll-free facility. Thank God cellular licenses are up for renewal and Government has to deal with all manner of mischief," Manheru wrote in The Herald's June 12 issue.
The MDC-T claims Manheru's ominous words were behind Econet's decision to terminate the service.
“It is telling to note that our service was disrupted hard on the heels of a threat to one of the cellular phone service providers by one Nathaniel Manheru, who is widely believed to be a senior but misguided civil servant in the Ministry of Media, Information and Publicity,” the MDC-T said.
Prime Minister Tsvangirai’s party continues to express concern over the adverse publicity it gets in the state media despite joining President Robert Mugabe’s Zanu PF in a coalition government.
Labels: ITC, MDC
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ZICA urges floating of govt shares in Zamtel
By Chiwoyu Sinyangwe and Fridah Zinyama
Tue 22 June 2010, 04:01 CAT
ZAMTEL managing director Mukela Muyunda has disclosed that all employees will be retrenched as Lap Green Network Telecommunication takes over the country’s biggest telecommunication firm.
And Zambia Institute of Chartered Accountants (ZICA) has called for the floating of government’s 25 per cent shareholding in Zamtel on LuSE for the public to continue having ownership in the company.
Meanwhile, Independent Management Consulting Services (IMCS) Limited management consultant John Kasanga has expressed concern at government’s decision to cede majority shareholding to Lap Green Network of Libya at a cost of US $257 million.
The partial privatisation of Zamtel has raised a lot of debate in the country, with the public questioning the manner in which the whole transaction was handled by the government.
Zamtel’s partial privatisation has raised a lot of questions, following the total disregard to procedure that then former transport and communication minister Dora Siliya had taken to chose RP Capital to value the telecommunication’s company assets.
Other stakeholders have argued that government has sold Zamtel to Lap Green Network Telecommunication for a ‘song’, adding that the telecoms company was undervalued.
According to a circular sent to all employees on June 15, 2010, Muyunda stated that all employees would be paid agreed settlement packages after the retrenchment process.
Muyunda stated that the restructuring and rehiring was expected to start in July 2010 and concluded by the next month.
“…As part of the restructuring, all Zamtel employees will be retrenched and all employees will be paid their agreed settlement and packages in full,” Muyunda stated. “For this purpose, the government has allocated a substantial proportion of the total purchase consideration for the payment of the agreed settlement packages to all employees. An independent audit of these packages is being fully undertaken, and independent auditors will verify that payment is made in full to each employee.”
Muyunda said Lap Green Network Telecommunication would after the retrenchment process hire staff who possessed necessary skills and qualification and experience to contribute to realisation of the objectives of the five-year plan and building of a vibrant and competitive organisation.
“It is expected that the restructuring and rehiring will start in July 2010 and be concluded in August 2010,” stated Muyunda.
“This will be done in such a way that operations will not be adversely affected. This is an extremely important exercise since it presents the company with a unique and rare opportunity to identify the real talent that is much needed to affect the turnaround. More information will be provided on how this extremely important exercise will be conducted ; suffice to say it will guided by objectivity and the need to secure a talented, experienced and hard working employee base.”
And Mulendema said there had not been transparency in the sale of Zamtel and the appointment of RP Capital Partners as valuators of Zamtel’s assets prior to its privatisation.
“This is why government should float its 25 per cent shares in Zamtel Ltd on the Lusaka stock exchange so that the public can continue having ownership through buying of shares in the entity,” he said. “The floating of shares will also enable the Security Exchange Commission (SEC) to regulate how the entity conducts its operations.”
Mulendema however supported the sale of Zamtel’s majority shareholding to a private entity.
“…It is a good thing that Zamtel has been sold because it had accumulated significant tax losses that the company was not paying…What the public must appreciate is that Zamtel has accumulated significant tax losses, in that Zamtel has not been paying any direct taxes to the treasury,” he said. “So this sale means that there will be more effective management and re-investment which will bring about improved services and an increased revenue base.”
Mulendema further added that Zamtel would also be able to pay dividends to its shareholders such as the government which would lead to an increase in shareholders’ wealth.
“The sale of Zamtel is likely to add value to the economy and the Zambian citizenry as a whole,” he said.
Mulendema added that this was exactly what had been happening to Zanaco, which had been making significant tax losses and therefore failing to pay its shareholders.
“After the sale of Zanaco and after putting effective management and control systems in place, Zanaco has contributed about K75 billion in form of direct taxes to the treasury because of an increase in profitability and service delivery to the public,” he said. “The bank has also been able to pay dividends and list on the stock exchange where the public is able to own shares.”
Mulendema added that once listed on the stock exchange, Zamtel would be regulated as a public limited company.
And Kasanga has questioned government’s rushed decision in privatising Zamtel.
“Zamtel’s problems have been there for a long time...why has this government suddenly felt the rush to privatise Zamtel in this manner,” he asked. “The opaqueness in the manner government has carried out the entire transaction is extremely worrying.”
Kasanga said Zamtel’s problems were actually created by government itself in that they were taking long to dismantle the huge debt that had accumulated with the company.
“...that the company had actually managed to survive this long is due to the private sector who have actually been paying their bills to the telecoms company,” he said.
Kasanga wondered why government did not carry out an independent study to determine what was wrong with the company instead of quickly disposing of the 75 per cent shares to Lap Green Network.
“The value at which Zamtel was sold will continue to be a contentious issue,” he said. “Its infrastructure should have been valued as government had been making money from the international gateway.”
Kasanga said government was very short-sighted in its decision to dispose of the Zamtel shares in that manner as they did not consider the fact that telecommunication was one of the fastest growing industry in the world.
“The public equally has issues with the way government disposed of the shares....the percentage sold to Lap Green was too high,” he said. “Am not too sure whether we have gotten a fair price ...”
Kasanga further advised government to listen to the concerns which the public had been raising over the sale of Zamtel.
But President Rupiah Banda has maintained that the partial sale of Zamtel was irreversible because it had been done legally.
President Banda maintained that the sale of Zamtel to Lap Green Network was binding as it had been done within the law and there was no way of reversing the process.
Meanwhile, former University of Zambia (UNZA) Development Studies lecturer Fred Mutesa said government should avail the business plans that Lap Green Network has for Zamtel for the public to have something to hold the investor accountable to if it fails to deliver.
“We would like to know the business plans that the new owners have...and how much money they intend to invest in Zamtel and also how many employees they intend to absorb from the Zambian workforce market,” he said.
Dr Mutesa also said government should not have entrusted majority shareholding to such a strategic company such as Zamtel to an investor.
“Government should have made an effort to try and recapitalise Zamtel as it is still a viable entity, as witnessed by the number of bidders,” he said. “Its lack of profitability was due to government’s inability to pay its bills and the MMD’s tendency to siphon funds to fund its party activities.”
Dr Mutesa, who is also Zambians for Empowerment and Development (ZED) president, said the appointment of cadres to management positions had also affected Zamtel’s operations which had contributed to its non-profitability.
“Government does not seem to understand the spin off effects that can be achieved from a company such as Zamtel,” said Dr Mutesa.
Labels: ITC, LAP GREEN, LUSE, MUKELA MUYUNDA, ZAMTEL, ZICA
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Govt slashes gateway fees
By Chiwoyu Sinyangwe and Fridah Zinyama
Tue 15 June 2010, 08:20 CAT
GOVERNMENT has slashed international gateway fees to US$340,000 from US$12 million, former vice-president Enoch Kavindele disclosed last week, adding that the decision is meant to grant the buyers of Zamtel’s 75 per cent shares easy access to the facility.
Government, through the Zambia Development Agency (ZDA), last week announced that Libya’s Lap Green Network had been offered to purchase Zamtel’s 75 per cent shares, a move that has met strong criticism from the public.
“As a country we no longer have pride, seeing as we have sold off almost all the companies which could have given us a sense of ownership,” he said. “Now that government has successfully sold Zamtel, they will move to other entities like Zesco Ltd, State Lottery and ZSIC, a move which should not be supported by all well-meaning Zambians.”
Mukuka said as a union, they condemned the privatisation of Zamtel as it would only lead to a loss of formal employment in the country.
“As a union we have never supported the privatisation process which brought untold misery to a lot of Zambians,” he said. “A lot of people who were made redundant through the privatisation process are yet to be paid their terminal benefits and those who have been paid, their money went straight to shylocks to whom they owed money to. Some even died before they could even get paid.”
Mukuka said the government should have concentrated on creating more job opportunities for its people rather than selling off state companies.
“As it is, some 2,341 employees will lose their jobs...and government will be forced to increase PAYE Pay As You Earn from the already few employees who are in formal employment because they would have lost out on revenue from the Zamtel employees who will lose their jobs,” he said.
“It will be unfortunate but it is a move that government will likely take in order to raise the much-needed revenue for the treasury. We expect government to create and not dismantle jobs.”
Mukuka said the government should have listened to concerns raised by different stakeholders about the lack of transparency in the privatisation process of Zamtel.
“A lot of people have questioned the whole process and it is unfortunate that government has not rescinded its decision to go ahead with the sale of Zamtel,” he said. “The issue of national security has also not been considered.”
Mukuka pointed out that as it is, Zambia is the only country in the world that has privatised its entire parastatals in this manner.
“Even the World Bank has acknowledged that Zambia is the only country in the world which has made such a decision and yet government does not want to halt the process,” said Mukuka.
Labels: ENOCH KAVINDELE, INVESTMENT LICENSES, ITC
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Econet shares surge
Business Reporter
MOBILE phone operator Econet Wireless Zimbabwe’s share price jumped US40c on Monday to close at US539,99c on the Zimbabwe Stock Exchange after the firm posted a record US$113 million after-tax profit for the full year to February 2010.
The blue chip counter helped the Zimbabwe Stock Exchange mainstream industrial index recover from Friday loses to open the week 2,64 percent strong to close at 135.02 points in thin trading. A paltry 6 518 840 shares worth US$727 689,27 exchanged hands on the market.
Econet released the strongest financials on the ZSE after generating US$362,8 million from its four million subscribers.
Profit after tax for the period topped US$133 209 756 and basic earnings per share stood at US66c.
Econet shares will drive the market until the end of May as investors jostle to benefit from the US14c cumulative dividend.
For the first six months of the year Econet had declared a US8c dividend and they have announced an additional US6c to give a total of US14c.
One analyst said, "Econet’s results are a clear indication that not all sectors are failing to take off in this new economic (US$ trading) environment.
"The group not only increased subscribers by over 100 percent but also saw a 76 percent increase in profits."
The group’s aggressive network expansion drive saw their total assets grow from US$182 million to US$397 million as property plant and equipment increased US$137,4 million to US$267,5 million and equipment deposits surged from US$2,2 million to US$47,7 million.
Shareholder funds grew by 86 percent to US$165,5 million despite the company’s debt sitting at $143,2 million.
They closed the year cash positive to the tune of US$13,9 million leading them to declare a dividend of US6c per share.
Company chairman, Mr Tawanda Nyambirai said the company was planning to invest US$300 million in the next financial year - a move that will give impetus to Econet shares.
Intentions to raise a further US$300 million were briefly announced though with very little detail as to which route to take. With their forecast revenues of US$50m plus per month, they will easily settle these debts without disturbing their cash flow significantly.
Their plans are that 25 percent of the funds will go towards data infrastructure development while the rest goes towards improving voice infrastructure.
Mr Nyambirai added that US$63 million, representing 17 percent of revenue was distributed to Government in the form of taxes and levies.
During the period, US$244,5 million representing 68 percent of revenue was reinvested into the business to fund long-term assets and working capital expenditure while 13 percent was paid to financiers.
Mr Nyambira said telecommunications is a key contributor to economic development and largely as a result of Econet’s investment the country’s penetration rate has increased from 15 percent to 40 percent.
Econet Wireless Zimbabwe, which is currently sitting on a market capitalisation of US$884 million, controls 70 percent of the mobile phone industry.
Meanwhile the industrial index rebounded with a 2,64 percent gain at 135.02 points in thin trading.
Seed manufacturing firm, Seedco rose US11,10 cents to trade at US78,10 cents. BAT and Natfoods went up US10c each to close at US240c and US115c respectively as Star Africa put on US0,50c to US7,50c
Spirits manufacturer Afdis went down US3c to close at US12c and Innscor was a cent lower at US60c whilst Dairibord retreated US0.50c to close at US7c.
Aico Africa ended down US0,30c to US17,20c as African Sun retreated US0,05c to close at US3,75c.
The mining index lost 1,56 percent to close at 182,25 points due to Falgold, which shed US2c to US4c and Riozim that eased a cent to US299c.
Labels: ECONET, ITC, ZIMBABWE STOCK EXCHANGE
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ZDA to start selling properties seized from defunct Task Force
By Chiwoyu Sinyangwe
Fri 09 Apr. 2010, 04:01 CAT
Zambia Develoment Agency director general Andrew Chipwende speaking during a press briefing yesterday at Lusaka’s Pamodzi Hotel. He is flanked by ZDA export and market development director Glyne Michelo (l) and ZDA policy research director Florence Mumba - Picture by Collins Phiri
LIBYA’S LAP Greencom Limited and Angola’s consortium of Unitel and Angola Cables are this month set to commence separate negotiations to buy Zamtel as Altimo Holdings is dropped, Zambia Development Agency (ZDA) director general Andrew Chipwende announced yesterday.
And Chipwende has said ZDA is to start selling properties seized from the defunct Task Force on Corruption among them Ndola Trust School and Motor City Limited.
Chipwende told journalists yesterday during the 2010 first quarter media briefing that Russian consortium of Altimo Holdings has been put on standby and may be summoned once negotiations with one of the two preferred bidders collapse.
“We can confirm that we did receive the binding bids from the three bidders that remained and we are expecting to commence negotiations by the third week of April,” Chipwende said.
“The ZDA board approved that we proceed in negotiations with two of three bidders and the other one is being put on reserve. We are going to negotiate with two, if any one of the two fallout, we can always call in the third one that is going to be on the reserve list.”
Chipwende said although ZDA targeted to conclude the sale of between 51 and 75 per cent of the stake in Zamtel which had been disputed by opposition political parties and key civil society organisations by June this year, the timeframe could be extended.
“Negotiations are negotiations. If somebody asks you ‘how long is the piece of string, you said it depends on the string,’” Chipwende said.
“You never know, strings have different lengths. You can’t know until you get into the negotiations and it’s a bit dangerous to try and predict when you will conclude negotiations because you don’t know what issues are going to come up. But in terms of planning, our target is to try and conclude the process by end of June which is very tight.”
And Chipwende said ZDA was in the process of selling some companies seized by the defunct Task Force on Corruption.
The ZDA chief also said the revival of the Njanji Commuters, the intra Lusaka commuter train was on the cards.
“There are a number of companies that were seized by the Task Force which we will be requested to sell,” said Chipwende.
“These include, Motor City Holdings, we also have one bid for Njanji commuters and evaluation is currently going on in terms of establishing the capacity of that bid to revive and in future extend the scope of Njanji commuter operations.”
Labels: ITC, TASK FORCE, ZAMTEL, ZDA
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LAZ commends computerisation of national judicial system
Monday, March 29, 2010, 10:58
Law Association of Zambia President Stephen Lungu (left) talks to Transparency International Zambia Executive Director Goodwell Lungu after the Supreme Court delivered a ruling in former President Frederick Chiluba
THE Law Association of Zambia (LAZ) has commended Government and the judiciary for computerisation of the judicial system in the country.
LAZ president said in an interview yesterday that the computerisation of the judiciary will benefit the public, as it will strengthen the way cases are handled.
Mr Lungu said the development will also ensure speedy access to justice by members of the public.
“The launch of the computerisation of the judicial system is very good. It will provide for speedy access to justice,” he said.
Mr Lungu said his association is happy with the development.
He said the judiciary is making significant strides in speeding up the administration of justice.
Mr Lungu said apart from the computerised system, the judiciary last year launched the small-claims court in an effort to reinforce the administration of justice.
He hoped the project to computerise the system will continue and be sustainable.
“As lawyers we are happy. Government and the judiciary should be commended for launching the computerisation of the judicial system. We hope the process will continue and that it will have sustainability,” Mr Lungu said.
He called on all stakeholders to ensure the project continues.
Vice-President George Kunda launched phase one of the computerisation of the judicial system in Lusaka on Friday.
Mr Kunda said the country will be the first in Africa to use such a system.
He said the first phase will see the computerisation of the Supreme, High and Magistrates courts.
The project has been made possible by a grant from Investment Climate Facility for Africa (ICFA) in partnership with Government.
The grant of US$500,000 from the ICFA represents 75 percent of the total cost of the project.
[Zambia Daily Mail]
Labels: COURTS, ITC, JUDICIARY, STEPHEN LUNGU
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Telecommunication cost is high – ZICTA
By Florence Bupe
Fri 26 Feb. 2010, 07:50 CAT
THE Zambia Information and Communications Technology Authority (ZICTA) has observed that the cost of telecommunication services in the country has continued to be among the highest in the region.
And Chilanga member of parliament Ng’andu Magande has said the
dominance of foreign players in the telecommunications sector has affected its sustainable growth.
Responding to concerns raised by Lukulu East member of parliament Batuke Imenda on the cost of telecommunication services in Zambia during the sitting of the parliamentary committee on communications, transport, works and supply, ZICTA acting executive director Richard Mwanza acknowledged that service tariffs were still very high.
“ZICTA acknowledges that the cost of using ICT information and communication technology services in the country has continued to be high and needs to be regulated,” Mwanza said. “The tariffs being implemented are still unreasonable.”
Mwanza disclosed that plans were underway to engage a consultant to conduct a cost or service survey, which is expected to cost about US $1 million.
He said countries such as Uganda, Rwanda, South Africa and Senegal were performing well in terms of communication service provision because of the willingness by policy makers to institute favourable policies.
Mwanza said the communications and technology sectors had been dominated by a few players, most of whom were foreign backed entities, because they received sound financial support from their countries of origin.
He revealed that most local internet service providers owed the authority huge sums of money in unpaid taxes because they lacked financial support from the government, thereby making their income flow low.
Mwanza urged the government to consider enhancing incentives to local players in the sector, but cautioned that incentives should not be abused but utilised to benefit consumers as well.
And Magande noted that there were too many foreign investors in the telecommunications sector.
“The problem is that in this area, we have too many foreigners and there is a likelihood that money is not staying in the country. There is need to monitor just how much of the money being made is circulating within our economy,” he said.
Magande, who chairs the committee, advised Zambians to enter the communications sector and build a strong capital base to compete favourably with foreign players.
He expressed concern that not many Zambians had shown interest in investing in the sector even when incentives were offered.
“If today we had to allow for tax free importation of technological gadgets, believe me it would not be the Zambians coming forward. We would have foreigners more interested in delivering,” said Magande.
Labels: ITC, MAGANDE, ZICTA
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Taxes on telecommunications equipment worry Zain director
By Florence Bupe
Wed 24 Feb. 2010, 04:10 CAT
TAXES attracted by the telecommunications equipment and services have continued to be the main hindrance in infrastructure development, Zain Zambia managing director David Holliday has disclosed.
Appearing before the parliamentary committee on communications, transport, works and supply yesterday, Holliday said the high taxes on equipment had stagnated the telecommunications sector, particularly in rural areas.
“The taxes attracted by the telecommunications equipment and services remain a major hindrance in the deployment of costly infrastructure particularly for rural areas and certain economically depressed areas,” he said.
Holliday told the committee that the telecommunications sector has been negatively impacted through the absence of short and long term tax incentives.
“The telecoms sector is negatively impacted between 31 per cent and 35 per cent in total being taxes on revenue as contribution to the state treasury,” he said.
Holliday suggested that taxes charged on renewable energy tools such as solar equipment which is vital for sector development in rural areas should be removed for a considerable time.
He also noted that the lack of an integrated licensing regime had increased the cost of telecommunication service expansion.
Holliday said rural areas in the country had great potential which remained unexploited.
“The potential for rural connectivity which spurs infrastructure development is vast and remains unexploited in Zambia. Our shortcomings in fully meeting these targeted areas for telephony universality need a quick rethought beyond projects and programmes on rural connectivity,” said Holliday.
Labels: DAVID HOLLOWAY, IMPORT TAXES, ITC, ZAIN ZAMBIA LIMITED PLC
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MTN to invest 25% of profits into network
By Chiwoyu Sinyangwe
Mon 01 Feb. 2010, 04:01 CAT
MTN Zambia this year plans to invest 25 per cent of its turnover to grow its network which last year accounted for 55 per cent of the total domestic mobile growth, chief marketing officer Ernst Fonterne has said.
MTN Zambia is targeting providing lower high quality calls to its clients, roll out advanced mobile internet connectivity through 3rd generation technology and also targets to cover the remaining six unconnected districts in the country.
Last week, MTN Zambia, whose subscriber base last year hit one million, launched MTN Zone, a tariff option that allowed its subscribers to make calls at discounted rates depending on the area and time of the day.
The discounts on calls range from 10 per cent to 100 per cent.
In an interview after the launch of the MTN Zone, Fonterne said MTN Zambia in the first quarter of this year planned to consolidate its gains last year, leveraging on its lower tariffs and the 2010 FIFA World Cup which is expected to enhance the brand of Africa's largest mobile phone provider.
"We are looking at increasing our points of presence in Zambia to give more accessibility of our network to the Zambian market - beginning last year, our points of distribution grew from 4, 000 to the current 11, 000 points of presence."
Fonterne said MTN Zambia's growth prospects for this year would be anchored on the achievement of last year as well as rolling out advanced mobile internet connectivity via 3rd generation technology.
He, however, declined to give the specific growth targets for this year as doing that would abrogate MTN Group's listing rules on Johannesburg Stock Exchange because the company was currently in closed period.
Fonterne said MTN Zambia would in the first half of this year rollout 3rd generation technology through lowering connectivity costs.
Fonterne said MTN Zambia would lower the cost of the data card from the K750, 000 to K800, 000 to about 50 per cent as a way of enhancing rolling out 3rd generation technology through provision of Internet connectivity of 7.2 megabits per second.
Labels: ITC, MTN, REINVESTMENT
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Zain’s strong subscriber base pushes up profits
Written by Chiwoyu Sinyangwe
Monday, August 31, 2009 3:42:50 PM
ZAIN Zambia’s 20 per cent growth in revenueduring the first half of this year was driven by an increase in subscriber base which grew to 2.82 million, investment analysts Pangaea Renaissance have observed.
Commenting on the half-year results which indicated that the revenue earnings for the country’s biggest mobile phone company had grown to K653,199 million compared with K543, 611 million gained during the same period last year, Pangaea Renaissance stated that revenues on a gross basis were one per cent ahead the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin of 44.3 per cent, which was in line with the 48 per cent targeted on the net basis.
Pangaea Renaissance Zambia was the sponsoring broker for Celtel (Zain)’s listing on the Lusaka Stock Exchange (LuSE).
According to the analysis made by Pangaea Capital’s head of Telecommunications, Transport and Infrastructure and Equity Research, Ivan Kim, Zain Zambia seemed to be holding up fairly well against the major competitors – MTN Zambia – despite losing four points on a year review.
Kim, however, stated that the increase in subscribers had slowed to six per cent in the first half of this year compared to 16 per cent growth recorded last year.
“The net income of K124 billion is 1.5 per cent ahead. Overall, the numbers are slightly better versus our forecasts which should be neutral given that the preliminary numbers were already out and do not differ materially from these,” Kim stated. “However, we think the market missed preliminary numbers issued by Zain Group and these numbers, issued by Zain Zambia, could be somewhat positive…the slower penetration growth for the first half of this year was due to economic contraction which impacted average revenue per unit (ARPU) as well. We understand the major impact on ARPU is from economic slowdown rather than pricing which remains quite stable.”
Kim also observed that the decrease in operating income before depreciation and amortisation (OIBDA) margin by 2.5 points on year-on-year basis was primarily due to increased administrative costs which increased by 28 per cent, the rise largely attributed to the transition to Zain brand from Celtel.
“However, we believe the economic position of Zambia is likely to improve in the second half of this year, reflecting the surge in copper prices in recent months as well as incremental International Monetary Fund [IMF] support and renewed foreign portfolio investment,” stated Kim. “Zain Zambia holds pretty well against competition… although the risk is the potential privatisation of Zamtel.”
Labels: ITC, PANGAEA RENAISSANCE SECURITIES, ZAIN ZAMBIA LIMITED PLC
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MTN to continue expansion projects
Written by Kabanda Chulu
Tuesday, August 25, 2009 3:25:13 PM
MTN Zambia chief sales and distribution officer Collin Muyanjahas said the company will continue its expansion projects since Zambia’s mobile telecommunication subsector has the potential for growth.
Announcing the company’s attainment of one million subscribers, Muyanja said MTN Zambia was on the road to becoming the country’s most preferred network. He said the Zambian mobile telecommunications market was dynamic with many opportunities for growth.
“We look forward to penetrate this market and strengthen our position as the market leader and we are the fastest growing network because three years ago we had 200, 000 subscribers but now we have over one million people using our network,” Muyanja said. “And we shall continue expanding since we believe there is still room for growth in this market and very soon, we shall roll out various products that will be tailor-made and suitable for our customers.”
He said MTN Zambia would continue holding consultative forums with distributors and dealers across the country to strengthen the company’s position on the Zambian market.
“Last Friday in Lusaka, we had such a meeting and we shall be hosting forums of that nature across the country because we understand that dealers and distributors are behind our fastest growth in this market,” said Muyanja. “And to strengthen our position, we need to be discussing strategies and sharing ideas and experiences on how to move forward especially that we are the official mobile telecommunications service provider for the 2010 FIFA World Cup to be staged in South Africa.”
Labels: ITC, MTN
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Underutilization of mobile phones services worry govt
Wednesday, August 12, 2009, 13:47
Government has expressed worry at the underutilization of mobile phone services in the country. Transport and Communications Minister, Geoffrey Lungwangwa, says many people are not able to access the many mobile phone services that companies in the sector are offering.
Professor Lungwangwa said this when he led the Parliamentary Committee on Communication and Local government in touring Zain Headquarters in Lusaka today. He said people have limited usage of mobile phone services as they are only using it to make phone calls and sending messages.
Prof. Lungwangwa said there was need for people to start using mobile phones to access other services such as the INTERNET to enable them obtain vital information as well as getting connected to the rest of the world.
“The usability of mobile phone technology in Zambia is still underutilized, people have limited use for it, and they only use it for calling but cannot access mobile INTERNET and such other services” he said.
“The usability of mobile phone technology in Zambia is still underutilized, people have limited use for it, and they only use it for calling but cannot access mobile INTERNET and such other services” he said.
Meanwhile, Professor Lungwangwa has assured that the international gate way is still under government control.
And speaking earlier, Member of the Parliamentary Committee on Communication and Local government, Ngandu Magande called on Zain Zambia to connect Information Communication Technology (ICT’s) to the rural areas.
Mr. Magande said he was impressed with the development of ICT in the country though rural areas where still untapped.
And Zain Zambia, Managing Director, David Holliday, said his company was investing in optic fiber in Lusaka, Livingstone, the Copperbelt and other major cities to improve on the speed of connectivity.
Mr. Holliday said the company had already stated laying the optic fiber in Lusaka and would soon go to other cities staring with Livingstone and the Copperbelt.
He said this would reduce the cost of connectivity adding that the current connectivity by satellite is expensive.
Meanwhile, Mr. Holiday said the Third Generation (3G) license the communication Authority (CA) issued to Zain was not for commercial use but for testing purposes.
He said Zain was still waiting for permission from government to give them the license to officially launch the 3G license.
Mr. Holliday further disclosed that his company has embarked on a training programme called ‘train the trainer’ where Zambian technicians and engineers are taken to study abroad-Zanis
Labels: GEOFFREY LUNGWANGWA, ITC
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80,000 benefit from Zain’s empowerment programme
Written by Chiwoyu Sinyangwe
Thursday, June 18, 2009 11:02:25 PM
ZAIN Zambia Plc has announced that 80, 000 people with business tools
countrywide have been empowered through the company’s ongoing 1 Kwacha Che! campaign launched a month ago, according to a statement released yesterday.
Zain Zambia stated that through its 1 Kwacha che! campaign, it intended to bridge the communication gap experienced by the local population in the lower income brackets by ensuring that they had access to a mobile business tool.
It stated that through this ongoing campaign, the company remained optimistic about reaching those Zambians who might not afford the current high mobile phone prices in different parts of the country.
And commenting on the development, Zain Zambia Plc managing director David Holliday said the company had taken up part of the retail cost for the phones to ensure every Zambian was able to communicate and do business using the mobile tool.
“We are concerned about limitations posed by the digital divide that majority of the Zambian population is still experiencing. To address this, we introduced this project where millions of Zambians can acquire a mobile business tool at K1 only,” said Holliday.
According to the terms of the 1 Kwacha che! offer, any customer purchasing a brand new Nokia 1202 at K170, 000 or Motorola W160 at K85, 000, would get their money back through monthly air time top ups to their handset for 12 months until there is only K1.00 outstanding from the total purchase price of their phone.
Labels: DAVID HOLLOWAY, ITC, ZAIN ZAMBIA LIMITED PLC
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