<p>NAIROBI (Reuters) &#8211; Kenya’s Safaricom lost 1.6 percent of its telecom subscribers’ market share in the quarter ended June, the industry regulator said, marking the third straight quarterly drop for the country’s biggest operator.</p>
<p>The firm, part-owned by South Africa’s Vodacom and Britain’s Vodafone, had 29.7 million subscribers during the period, data from the regulator Communications Authority (CA) seen by Reuters on Monday showed.</p>
<p>While the users’ base was up 0.7 percent from the previous quarter, Safaricom’s rivals, including Bharti Airtel’s Kenyan unit added more subscribers, resulting in the company’s reduced market share.</p>
<p>Airtel’s subscribers rose 11.9 percent to secure a market share of 21.4 percent. Safaricom subscribers’ market share has plunged to 65.4 percent from 72.6 percent in June last year.</p>
<p>Investors were unlikely to be concerned by the market share drop as Safaricom grew its user base, and it commands a big lead in revenue, said Eric Musau, a research analyst who covers the company at Nairobi-based Standard Investment Bank.</p>
<p>Safaricom and the regulator have been tussling over a report on competition in the industry, which among other things calls for price controls on Safaricom to help smaller operators.</p>
<p>According to regulator data in 2015, Safaricom had enjoyed the lion’s share of revenue, with more than 90 percent in key categories such as voice calls. The latest revenue data was not available.</p>
<p>The fall in Safaricom’s market share comes in the backdrop of a nine-month absence by its Chief Executive Officer Bob Collymore for medical treatment.</p>
<p>Collymore returned to Kenya in August and attended at least two public events soon after he resumed work.</p>
<p>“Safaricom is one of the companies which you are quite confident that the CEO isn’t the only person who can run the business. He was ably represented and the organisation generally is quite well-structured,” Musau added.</p>
<p>Reporting by Duncan Miriri, Editing by Sherry Jacob-Phillips</p>


Why Kenya’s Safaricom lost 1.6 percent of its telecom subscribers’ market share in Q2

<p>JOHANNESBURG (Reuters) &#8211; Shares in South Africa’s MTN rose 5 percent on Thursday, after Nigeria’s central bank said on Wednesday that it was reviewing information provided by the telecoms firm and four banks over a dispute on the repatriation of dividends.</p>
<p>“The statement suggests there are some talks going on and the market welcomed the less harsh tone by the Nigerian central bank,” said Ruhan Du Plessis, telecoms analyst at Avior Capital Markets.</p>
<p>“It is looking more likely that MTN will not have to pay back the for amount after all as the market feared. The market has welcomed the progress.”</p>
<p>The central bank on Aug. 29 said it had ordered MTN and the four banks to bring $8.1 billion back into Nigeria that it alleged the telecoms firm sent abroad in breach of foreign exchange regulations.</p>
<p>Reporting by Patricia Aruo; Editing by James Macharia</p>


MTN shares rise to 5 percent after Nigeria reviews information to resolve dispute, what you need to know…

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<p>As 9mobile continues to restructure its operations after Nigerian regulators stepped in to prevent the Telecoms giant from going into restructuring, banks are taking steps to reduce their risk exposure.</p>


Derisking Nigeria’s telecoms sector

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<p>According to sources quoted by Reuters, 9mobile formerly known as Etisalat Nigeria has appointed Citigroup and South Africa’s Standard Bank to manage the sale process for a stake in the telecoms company.</p>


9mobile appoints Citi, Standard Bank to find new investors

<p><span class="articleLocation">HARARE</span> (Reuters) &#8211; Econet Wireless, Zimbabwe&#8217;s biggest mobile telecoms company, reported a 10 percent fall in after-tax profit to $36.2 million on Wednesday, blaming a decline in consumer spending.<span id="midArticle_byline"></span></p>
<p>Revenue for the year to February 2017 fell to $622 million from $641 million last year, the company said in statement.</p>
<p>The southern African nation&#8217;s economy flatlined last year, while shortages of foreign currency and cash have hit consumer spending, with businesses struggling to pay for imports and repay foreign loans.</p>
<p>In January Econet went to the market to raise $130 million from shareholders to avoid defaulting on its foreign loans, which it was struggling to settle due to the dollar shortage.</p>
<p>(Reporting by MacDonald Dzirutwe; Editing by Greg Mahlich)</p>


Econet Wireless Zimbabwe posts 10 pct fall in full year profit

<p><span class="articleLocation">Ehab Farouk | CAIRO</span></p>
<p>Egypt has prepared the wireless frequencies needed for telecommunications companies in the country to deliver 4G mobile broadband networks, a key step in the long-delayed introduction of high speed telecoms services.<span id="midArticle_byline"></span></p>
<blockquote><p>&#8220;We are now ready to hand over 4G mobile frequencies to any company that is ready &#8230; we are waiting for companies to finish preparations to receive the frequencies,&#8221; Communications Minister Yasser al-Kadi told Reuters on Sunday.</p></blockquote>
<p>Egypt sold four 4G licences in 2016 as part of a long-awaited plan to reform the telecoms sector and raise dollars for stretched government finances.</p>
<p>The country&#8217;s three mobile operators &#8211; Vodafone Egypt, Orange and Etisalat &#8211; acquired licences.</p>
<p>Orange Egypt agreed to a provision that half the licence fee be paid in dollars.</p>
<p>Egypt&#8217;s state-owned landline monopoly Telecom Egypt said in July it would offer 4G services within a year of obtaining frequencies.</p>
<p>(Reporting by Ehab Farouk; Writing by Tom Finn; Editing by Mark Potter)</p>
<p>&nbsp;</p>


Egypt’s 4G wireless frequencies ready for use – minister

<p>Chijioke Ohuocha | <span class="articleLocation">LAGOS</span></p>
<p>Talks between the Nigerian arm of Abu Dhabi&#8217;s Etisalat and its lenders to renegotiate the terms of a $1.2 billion loan have reached deadlock after the telecoms firm missed a payment, two sources with knowledge of the matter told Reuters.</p>
<p>Lenders, under pressure to avoid loan-loss provisions, are pushing to finalise the debt restructuring before next month&#8217;s half-yearly audit, a banking source said.</p>
<p>Etisalat met with the lenders in London on April 28 led by Guaranty Trust Bank but they could not agree a way forward, the sources said.</p>
<p>Etisalat could not be reached for comment.</p>
<p>The telecom firm signed the medium-term seven-year facility with 13 local banks in 2013 to refinance a $650 million loan and fund expansion of its network, but is now struggling to repay.</p>
<p>Etisalat Nigeria told Reuters that it was in talks with lenders to restructure the loan after it missed a payment.</p>
<p>&#8220;There is no conclusive view on the way forward,&#8221; one banker who declined to be named told Reuters after the meeting. &#8220;The most viable solution which the banks are pushing for is for the shareholders to inject equity into the business.&#8221;</p>
<p>A source at Etisalat, which owns 45 percent of the Nigerian company, said the company was not willing to invest more after converting some loans it made to the affiliate to equity and writing down its investment to $50 million.</p>
<p>Abu Dhabi&#8217;s state-owned fund Mubadala owns another 40 percent.<span id="midArticle_byline"></span></p>
<p>Etisalat is the biggest foreign-owned victim of the dollar shortages plaguing Nigeria&#8217;s financial system.</p>
<p>Nigerian regulators in March agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.</p>
<p>But lenders are keen to keep a lid on rising non-performing loans (NPLs) to preserve their capital as Africa&#8217;s biggest economy battles a recession and currency crisis. NPLs hit 14 percent in 2016 from 5.3 percent a year earlier.</p>
<p>Etisalat has 20 million subscribers, making it Nigeria&#8217;s number four mobile operator with 14 percent market share. South Africa&#8217;s MTN has 47 percent, Globacom 20 percent and Airtel &#8211; a subsidiary of India&#8217;s Bharti Airtel &#8211; 19 percent.</p>
<p>(Additional reporting by Stanley Carvalho in Dubai; Editing by Louise Heavens)</p>


Etisalat Nigeria loan talks stall as banks try to avoid provisions

<p><span class="articleLocation">Tiisetso Motsoeneng | JOHANNESBURG</span></p>
<p>South Africa&#8217;s MTN Group has agreed to invest more than $295 million in Iranian Net, a fixed line broadband network in which it is to buy an initial 49 percent stake.<span id="midArticle_byline"></span></p>
<p>The outline deal announced on Monday extends MTN&#8217;s interests in the Iranian telecoms market that has opened up to foreigners following the lifting of international sanctions, which has also allowed MTN to repatriate $1 billion in accumulated dividends from its 49 percent stake in wireless network operator Irancell.</p>
<p>The latest agreement, which is still at a non-binding stage, is the second for MTN in Iran this year after Africa&#8217;s biggest wireless networks group invested in Iran Internet Group, which runs a car hailing app called Snapp.ir.</p>
<p>MTN said it will pay 540 million rand ($40 million) to buy a 49 percent stake in Iranian Net and will invest an additional 3.4 billion rand in both equity and loans to help the Iranian company develop a fibre network over the next five years.</p>
<p>&#8220;This investment, should it be completed, represents an opportunity to capitalise on the continued strong growth expected in the Iranian broadband market, with an initial focus on eight of the main cities,&#8221; MTN said in a statement.</p>
<p>($1 = 13.5535 rand)</p>
<p>(Reporting by Tiisetso Motsoeneng; Editing by Jason Neely, Greg Mahlich)</p>


South Africa’s MTN to invest $295 mln in Iranian Net broadband network

<p>By Stanley Carvalho and Chijioke Ohuocha<span id="midArticle_byline"></span></p>
<p>The Nigerian arm of Abu Dhabi telecom group Etisalat is yet to agree a deal on restructuring a $1.2 billion loan with local banks after it missed a payment, a company source told Reuters.</p>
<p>Etisalat Nigeria told Reuters last month that it was in talks with lenders to restructure the loan.</p>
<p>The source, who is not authorised to speak to media, said that Etisalat and the group of 13 Nigerian lenders were yet to agree on a debt restructuring proposal.</p>
<p>The source was speaking on the sidelines of Etisalat&#8217;s annual general meeting in Abu Dhabi on Sunday, where Chief Executive Saleh Al Abdooli declined to comment on the debt talks when asked by Reuters.</p>
<p>Etisalat did not respond to a request for comment.</p>
<p>Nigerian regulators agreed with local banks in March to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.</p>
<p>Sources have said that Etisalat would consider selling its stake in the Nigerian entity after the debt deal is agreed.</p>
<p>(Editing by Susan Fenton)</p>


Etisalat Nigeria yet to agree debt deal with lenders: source

<p>Who benefits from South Africa&#8217;s proposed ICT Policy? Is it “radical economic transformation” or something that will benefit “white Capital”?</p>
<p>The introduction to the National Integrated ICT Policy White Paper refers to The National Development Plan: 2030: “By 2030, ICT will underpin the development of a dynamic and connected information society and a vibrant knowledge economy that is more inclusive and prosperous.”</p>
<p>Seemingly it is geared to achieve an “inclusive and prosperous society” where “opportunity is determined not by birth but by ability, education and hard work”. Therefore, it regurgitates all the usual rhetoric.</p>
<p>However, who is being branded as the evil industrial giant stepping on the underprivileged and downtrodden? The lowest BEE rating of the major cell phone companies comes in at Level 3, which amounts to a 110% Procurement Recognition Level. The largest of those companies have BEE ratings of level 2, amounting to a Procurement Recognition Level of 125%. This is hardly a reflection of an Apartheid era draconian business model. In fact, it is a reflection of big business achieving the goals of a free and prosperous economic society to the benefit of everyone.</p>
<p>Furthermore, the growth patterns of these companies are clearly being steered in the direction of better BEE ratings and economic empowerment. A good example is MTN’s Zakhele Futhi R9.9bn black economic empowerment transaction. So, when the ICT White Paper wants to make the above-said company’s services more “inclusive”, and to “the prosperity of all”, what are they proposing? Simply put, the nationalisation of the company’s assets through a forced mandatory role out of an open access network.</p>
<p>Is this statement accurate or just sensationalistic in nature?</p>
<p>If the proposals in the White Paper are acted upon, this is exactly what will happen. The specific proposal referred to on page 68 of the paper, states “The regulator will be required to publish a list of deemed open access networks”.</p>
<p>This will entail the following: An access provider will be “deemed” an open access network if it displays any of the following characteristics:</p>
<ul>
<li>It has significant market power in the relevant infrastructure market, or</li>
<li>It controls an essential facility; or</li>
<li>It has a network that constitutes more than 25% of the total infrastructure in that market; or</li>
<li>It has a scarce resource, such as frequency spectrum, assigned to it for its exclusive use.</li>
</ul>
<p>This mandatory implementation of an open access network will enable the government to control and dictate <em>inter alia </em>pricing, active infrastructure sharing, specific network and population coverage for providers deemed to be an open access network.</p>
<p>More importantly, all providers deemed to be an open access network must comply with “<strong><em>all </em></strong>of the general open access principles, and to the extent that an operator is vertically integrated, the principles applicable to vertically integrated entities, will apply as well” as dictated by the regulator (page 70 of the white paper).</p>
<p>The White Paper is clear that participation will be unilaterally imposed on those SPs that meet the required characteristics regardless of the will to participate or not. The regulator will also be obliged to publish a list of deemed open access networks as soon as possible after the finalisation of the White Paper.</p>
<p>If it works, it works. Right? The fact is, though, mandatory participation in an open access network simply does not meet the goals it sets out to achieve.</p>
<p>Per international studies (Wolfgang Briglauer: The Impact of Regulation and Competition on the Adoption of Fibre-Based Broadband Services: Recent Evidence from the European Union Member State 2013- to name but one of many studies) it is common cause that forced mandatory participation in an open access network results in stunted economic growth and stagnates technological development. The scope and length of this piece does not allow me to further expand on case studies, however, it is out there for all to read and learn from page 68 of the paper.</p>
<p>It is counter-intuitive to potentially stunt the growth of an industry that has arguably contributed the most to sustained economic development and transformation. According to the ICT Satellite report published in 2015, ICT contribution to the gross domestic product (GDP) amounted to 2,9% in 2012.</p>
<p>It is important to note that cell phone SP’s economic contribution is not confined to the ICT sector. Industrial and real estate development, for instance, would fall outside the scope of the GDP contribution analysis for cell phone SPs.</p>
<p>In summary, mandatory participation in an Open Access Network does not constitute “radical economic transformation” in the positive. In the negative, it certainly does constitute “radical economic transformation” because it will harm the socio-economic development of South Africa and undermine the very goals set by the NDP.</p>
<p><strong>Thinly Veiled Disguise </strong></p>
<p><em>“Through the noise and the poisonous words<br />
That lead us to believe otherwise<br />
I can hear the bells, they&#8217;re ringing out<br />
Through a thinly veiled disguise”</em> (Ron Sexsmith)</p>


Op-Ed: S.A’s telecoms policy will stunt economic growth and stagnate technological development

<p>South Africa&#8217;s MTN has increased its investment in an Iranian e-commerce business, it said on Monday, without disclosing the size of the transaction.</p>
<p>MTN, Africa&#8217;s largest mobile phone company, told Reuters last year that it planned to expand in Iran, where it has a leading position but from which it has not been able to repatriate profits until recently due to U.S. sanctions.</p>
<p>MTN said its Iranian unit Irancell led a funding round for the Iran Internet Group (IIG) to accelerate the e-commerce group&#8217;s growth.</p>
<p>IIG runs Snapp.ir, a car-hailing platform which MTN last year backed with a $22 million investment, as well as online marketplace Bamilo.com and food-ordering service Zoodfood.com.</p>
<p>&#8220;Over the past two years we have seen incredible growth at IIG, and this investment by our local partner is testament to the strength of the group&#8217;s business model and management team”, MTN Chief Digital Officer Herman Singh said.</p>
<p>MTN, which set aside about $700 million in capital expenditure, part of it to revamp Iran&#8217;s network infrastructure, has said it is growing its extending its reach into the nation&#8217;s e-commerce rapidly particularly in retail and travel sectors.</p>
<p> </p>
<p>(Reporting by TJ Strydom)﻿</p>
<p> </p>


South Africa's MTN extends push into Iranian e-commerce

<p>Tanzania, east Africa&#8217;s second-biggest economy, posted a 0.9 percent annual increase in the number of mobile phone subscribers in 2016 to 40.17 million, its telecoms industry regulator said on Tuesday.</p>
<p>Mobile phone use has surged in Tanzania and other African countries over the past decade, helped by the launch of cheaper smartphones.</p>
<p>The number of Internet users rose to 19.86 million last year from 17.26 million in 2015, the state-run Tanzania Communications Regulatory Authority (TCRA) said in a report.</p>
<p>Mobile money users grew to 18.08 million last year from 17.63 million previously.</p>
<p>Telecommunications is one of the fastest-growing sectors in the country, which has a population of around 50 million.</p>
<p>Mobile phone operators in Tanzania include Vodacom Tanzania, a unit of South Africa&#8217;s Vodacom, Tigo Tanzania, which is part of Sweden&#8217;s Millicom, Bharti Airtel Tanzania, and Halotel, owned by Vietnam-based telecoms operator Viettel.</p>
<p>The country&#8217;s three biggest mobile network operators &#8211; Vodacom, Tigo and Airtel &#8211; are planning for initial public offerings (IPOs) on the Dar es Salaam Stock Exchange (DSE) this year to comply with a mandatory listing law.</p>
<p>The government hopes the move will bring more transparency and offer the public a share in the industry&#8217;s profits.</p>
<p>But analysts say rushing through public offerings could lead to unsold shares with only Tanzanians allowed to buy them.</p>
<p> </p>
<p> </p>
<p>(Reporting by Fumbuka Ng&#8217;wanakilala; Editing by Aaron Maasho and Amrutha Gayathri)﻿</p>
<p> </p>


Tanzania's mobile phone subscribers up in 2016

<p>In 2015, while no one was looking, Facebook quietly partnered with Eutelsat, a communications satellite operator (also partnered with DStv) to, as a press release put it, “get more Africans online”. It is part of Zuckerberg’s vision, as stated in an October 2015 Facebook post, to “connect the entire world” because “connectivity changes lives and communities.” Or as a press release stated, it will “accelerate data connectivity for the many users deprived of the economic and social benefits of the Internet.” It all kind-of slipped under the radar and everyone just went to back to business as usual.</p>
<p>But I’ve been watching this with cautious optimism. Facebook has looked at Africa’s Internet connectivity problems and is hinting at leveraging Eutelsat’s framework to do something about it. But Facebook is a for-profit company, and you can bet this isn’t a purely altruistic venture. Zuckerberg has something up his sleeve &#8211; and it can potentially change everything about Africa’s telecommunications industry &#8211; for the bad if we’re not ready; for the good if we are.</p>
<p>Facebook’s Free Basics app (internet.org) gives you a clue in what this behemoth of a technology disruptor is thinking. Free Basics allows users to to explore useful online services and websites &#8211; such as the news, health information, education, local information, weather etc. &#8211; at no (or very little) cost. With the Eutelsat deal, the idea is that consumers in Africa will get free access to the Internet through Facebook’s platform. And it sounds like a great idea, right? But obviously it can be used for a kind-of censorship.</p>
<p>Facebook can limit your access to certain sites, or make you pay for other sites that don’t fit into its service. For example, you can get Whatsapp (owned by Facebook) for free, but you might need to pay to use any Google services through their platform. You can browse their news sites they’ve partnered with (and we’ve seen how Facebook has recently come under fire for helping fake news to spread) but other news sites might be more difficult to find and could require additional payment. Of course, this is fair, given that Facebook is a for-profit company, but what happens if they manage a monopoly on Internet coverage on the continent? That is something we have to prepare for ahead of time, we can’t wait until that sort of thing happens.</p>
<p>There is a second side to this as well. It can completely cannibalise our existing telecommunications industries. And it’s this I don’t think we’re prepared for at all.</p>
<p>Let me talk you through it otherwise you can miss it. Facebook owns Whatsapp. Did you notice recently that Whatsapp added video calling to its service – with no pomp and circumstance? And it’s already had voice-to-voice for a while. We know that voice revenues are declining while data usage is going up, generally speaking. Now, think about this: what if Facebook offered you free Internet access, and you know that with it comes Whatsapp, allowing you to make not only free voice-to-voice calls but also video calls? What service are you going to use the most? Which service will begin to look a bit archaic in your mind?</p>
<p>Our telecommunications industry would be disrupted in an instant. From a consumer point of view, all of this makes perfect sense. But from a macro point of view we have to ask different questions. For example, Vodacom reported last year that its service revenue increased by 4.9 percent (49.3 billion) thanks to mobile data, fixed-line services, and voice revenue growth trends. 52.9 billion minutes worth of calls were made on Vodacom’s network, which grew from the previous year (so voice isn’t always declining). But data is still the big grower &#8211; 27.7 percent growth (R17,287 million) and a data traffic growth of 46.8 percent. [See http://www.vodacom-reports.co.za/integrated-reports/ir-2016/our-sa.php#sel=].</p>
<p>There is a lot of investment into data because we all know that’s where things are headed, right? But now imagine if this sort of revenue is no longer moving in the economy &#8211; both voice and data revenue. Obviously, this would be a massive blow. Our telecommunications companies would not be able to sustain their workforce, resulting in massive job-losses and skill sets that become redundant. Then also there is the supply chain that services these industries. This is just the tip of the iceberg. Sure, new industries will arise, as they should, and new skills will be needed &#8211; but the question is are our telecommunications providers ready enough to handle this kind of change? Are we as a continent ready for it? Have we prepared enough? Because this change can come quickly &#8211; history is showing us that it does &#8211; and it could come too quickly.</p>
<p>Maybe this sounds a bit far fetched for you, but you can’t negate the cultural change and perception change in Africa around the Internet and Facebook’s involvement. For example, Facebook is incredibly popular in Nigeria. In 2015, Geopoll did a survey in Nigeria which stated that up to 65 percent of those who participated in it agreed with this statement: “Facebook is the Internet”. The three most popular Internet-based services or apps in Nigeria are Facebook, Instagram and Whatsapp. Guess who owns all three of these? Facebook. [See http://qz.com/333313/milliions-of-facebook-users-have-no-idea-theyre-using-the-internet/]</p>
<p>What is also important to consider is where the revenue goes if Facebook launches this and consumers love it and are willing to pay for some kind of upgrade or extra service, or however Facebook intends to make money from it. I can guarantee you the revenue is probably not going to stay in Africa. So, from a macro level, we need to put ourselves in a position where we embrace the change and innovation that Facebook is initiating, because change will happen, but we insist that it must comply to certain kinds of regulation or implementation &#8211; for example, revenues must stay here, or they must create a certain amount of employment, and they must be part of fostering a new eco-system with its infrastructure, and not just provide a viable consumer-oriented product and take all the revenue home.</p>
<p>Perhaps there is an opposing view here to consider. Instead of fighting this change, telecommunications providers might want to embrace it and use it as a catalyst to put the right frameworks in place. MTN, Cell C, Airtel, Tigo and others have already partnered with Facebook’s Free Basics service in various parts of Africa. See the full list [https://info.internet.org/en/story/where-weve-launched/]. But I wonder if they’re seeing where this can go. As they focus on their bread and butter, it’s difficult to see the disruptor’s coming through. But the fact remains that they have to see it as they are poised to be the one collective force that can instigate the right kind of change, how much change should come, and make sure it benefits our economies. They’ve got to work with regulators, government, and the likes to make sure this will be a positive change.</p>
<p>Large corporates need to find ways to embrace change and channel it in a beneficial way for our continent, and to ensure it’s sustainable for everyone involved. The change is coming, it’s inevitable, and when it comes, are we ready? We better be, because otherwise I think we’re going to find ourselves in a fair spot of trouble.﻿</p>


Op-Ed: Should Africa's telecoms industry be wary of Facebook?

<p>Nigeria must not scare away MTN, its minister of communications said, as lawmakers investigate alleged illegal money transfers just three months after the government fined Africa&#8217;s biggest telecoms firm over $1 billion.</p>
<p>The comments by Adebayo Shittu are the government&#8217;s first statement on the latest investigation into MTN, indicating the government does not want to see the South African company punished unduly in Nigeria, its biggest market, if the latest allegations prove to be true.</p>
<p>&#8220;Nobody will say that MTN is not important to Nigeria &#8211; we must encourage them, we must not scare them away from Nigeria,&#8221; Shittu told Reuters in an interview, conducted on Friday.</p>
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<p>MTN, the largest mobile phone firm in Nigeria, threatened to pull out of the country last year during a dispute over unregistered SIM cards before the government agreed to reduce a settlement on the issue by nearly 70 percent to $1 billion.</p>
<p>The company now faces another potentially hefty penalty if an investigation by Nigeria&#8217;s upper house of parliament finds evidence that MTN Group Ltd illegally transferred $13.9 billion out of the West African country between 2006 and 2016, as alleged.</p>
<p>MTN has said it did not break Nigeria&#8217;s currency transfer rules.</p>
<p>&#8220;The presumption is that they are innocent and we pray they remain innocent,&#8221; Shittu said, referring to the investigation. &#8220;They must stay.&#8221;</p>
<p>His comments are similar to comments he made when MTN was initially fined $5.2 billion in 2015 &#8211; equal to more than two years of its Nigerian profits &#8211; for failing to cut off unregistered SIM cards. The fine was reduced last June to 330 billion naira ($1.1 billion).</p>
<p>Nigeria accounts for a third of MTN&#8217;s revenue.</p>
<p>The crux of the allegation into illegal money transfers is that MTN did not obtain certificates declaring it had invested foreign currency in Nigeria within a 24-hour deadline stipulated in a 1995 law, and so the repatriation of returns on those investments was illegal.</p>
<p>&#8220;They have a right to repatriate their profits as long as it is legitimately done,&#8221; said Shittu, adding that any time MTN is suspected of breaking the law it will be investigated, though the &#8220;facts against them must be established beyond reasonable doubt.&#8221;</p>
<p>&#8220;Everyone who is in business will have ups and downs. You don&#8217;t throw away the baby with the bathwater.&#8221;</p>
<p>Shittu said the investigation was an issue for financial regulators and did not fall within his &#8220;constitutional responsibility.&#8221; The government, however, can influence the size of the penalty, as in the case of the SIM card issue.</p>
<p>Shittu also said Nigeria planned to build and launch two new satellites using a $550 million loan from the Export-Import Bank of China, which will cover 85 percent of the cost.</p>
<p>Nigeria will finance the other 15 percent, with Shittu calling on domestic and foreign investors to take part in the funding.</p>
<p>($1 = 304.4800 naira)﻿</p>
<p> </p>


Nigeria must not scare away MTN, says comms minister

<p>Kenyan ride-hailing app Little, which is backed by telecoms operator Safaricom, is considering expansion into Nigeria or Uganda in the first quarter of 2017, the chief executive of its parent firm said.</p>
<p>Little was launched by Safaricom and Nairobi software firm Craft Silicon in July to compete with Uber.</p>
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<p>&#8220;We plan to go by the first quarter of next year. Most probably it will be either Nigeria or Uganda. We are thinking of one of the two countries,&#8221; Kamal Budhabhatti, chief executive of Craft Silicon, told Reuters.</p>
<p>He said the service was growing, with customers booking more rides, but that the service was still not making money. He did not provide numbers.</p>
<p>The Business Daily newspaper reported on Friday that Little had cuts its prices to the lowest in the country.﻿</p>
<p> </p>


Kenyan ride-hailing app Little considers expansion

<p>Ericsson is betting that fast-growing demand for mobile Internet services in sub-Saharan Africa will also boost sales for the world&#8217;s biggest mobile telecoms equipment maker, the Swedish company&#8217;s regional president said.</p>
<p>&#8220;If you look at growth in mobile broadband penetration, it&#8217;s going in the right direction. It is at about 35 percent right now and that&#8217;s going to grow at 21 percent per year over the next six years,&#8221; Jean-Claude Geha told Reuters in an interview.</p>
<p>Ericsson is struggling in most other regions where its customers are further advanced in developing 4G mobile broadband networks and demand for equipment for the next generation of even faster and more widely connected 5G networks is still years away.</p>
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<p>But African mobile network operators such as MTN Group and Kenya&#8217;s Safaricom are still in the process of modernising and expanding their networks to give more and more people access to the Internet.</p>
<p>The region, home to more than 1 billion people, contributes 4 percent of Ericsson&#8217;s annual sales of $27 billion but Geha said the company was seeing percentage sales growth rates there that were &#8220;closer to double-digit than single-digit&#8221;.</p>
<p>&#8220;We are building 17 4G networks across the region and we&#8217;re still building a lot of 3G and modernising some of the 2G networks,&#8221; Geha said. &#8220;We are expecting in the next five to six years at least 80 percent of deployed infrastructure to be 3G and 4G mobile broadband.&#8221;﻿</p>
<p> </p>


Ericsson bets on fast-growing broadband demand in Africa

<p>Zain, Kuwait&#8217;s No.1 telecom operator by subscribers, on Thursday said it will pay $129 million to Bharti Airtel over a settlement related to the sale of Zain&#8217;s Africa operations to the Indian firm in 2010.</p>
<p>The payment will have no future financial impact on Zain as it set aside provisions to cover potential payments related to the transaction at the time of the sale, a spokesman for Zain, which operates in eight countries in the Middle East and Africa, said.</p>
<p>Zain in 2010 completed the $9 billion sale of its Africa business, which included operations across 15 countries. Zain still operates in South Sudan and Sudan, according to its website.</p>
<p>Thursday&#8217;s statement did not disclose what the settlement related to. In the company&#8217;s third-quarter financial statement, Zain said it was liable for &#8220;taxation claims and amounts that may be due for unprovided litigation claims&#8221; after the sale of Zain Africa.</p>
<p>The company last month reported a better then expected 12 percent rise in third-quarter results.﻿</p>
<p> </p>


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telecoms

Why Kenya’s Safaricom lost 1.6 percent of its telecom subscribers’ market share in Q2

MTN shares rise to 5 percent after Nigeria reviews information to resolve dispute, what you need to know…

Derisking Nigeria’s telecoms sector

9mobile appoints Citi, Standard Bank to find new investors

Econet Wireless Zimbabwe posts 10 pct fall in full year profit

Egypt’s 4G wireless frequencies ready for use – minister

Etisalat Nigeria loan talks stall as banks try to avoid provisions

South Africa’s MTN to invest $295 mln in Iranian Net broadband network

Etisalat Nigeria yet to agree debt deal with lenders: source

Op-Ed: S.A’s telecoms policy will stunt economic growth and stagnate technological development

South Africa's MTN extends push into Iranian e-commerce

Tanzania's mobile phone subscribers up in 2016

Op-Ed: Should Africa's telecoms industry be wary of Facebook?

Nigeria must not scare away MTN, says comms minister

Kenyan ride-hailing app Little considers expansion

Ericsson bets on fast-growing broadband demand in Africa

Zain to pay Bharti Airtel $129 mn in settlement of African business

News Tips

Advertise With Us

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