Anthony Masunga discusses popular services, main operator challenges and money services, ahead of VAS Africa this June

Anthony Masunga, COO

Botswana Telecom

VAS Africa speaks with Anthony Masunga ahead of VAS Africa this June

VAS Africa: Please describe your company’s position and objectives in Africa

Anthony Masunga: My company (Botswana Telecommunications Corporation including beMOBILE) is evolving from single lines of business (Mobile, Fixed, Internet) into a converged operator. These changes were introduced in 2013 through organisational restructuring and will be supported by massive investment in technology to support the strategy of fixed mobile convergence. In addition to that, changes at shareholding level will involve partial privatisation of the whole company which would see the Government of Botswana listing 49% of the shares in the local Botswana Stock Exchange.

VAS Africa:  What do you think are the top 3 major trends affecting your business in the region in 2014?

Anthony Masunga: Consumer Demand: Access to Affordable, high quality internet

Capex for Fixed Access Network: Investment in the access network to improve wireline broadband connectivity vs returns

Capex for High Speed Mobile broadband (LTE and 3G): Investments in the mobile networks to improve mobile broadband experience vs. returns

VAS Africa:  Which do you consider to be the most popular services for African consumers and enterprises?

Anthony Masunga: Mobile money transfer for the consumers

VAS Africa: What are the main challenges operators need to adapt to in order to deliver attractive services to their customers?

Anthony Masunga: Truly identifying the needs of the customers (African markets differ from country to country and no single solution is fit-for-all markets)

VAS Africa:  What is the best way forward for operators and OTT players – competition or partnership?

Anthony Masunga: Partnership (Lowers opex for operators and improves time-to-market).

VAS Africa:  How are mobile money services likely to evolve in the years to come?

Anthony Masunga: More public utility companies will embrace the technology and it will be used for purchase of water, power, TV subscription and social payments.

VAS Africa:  How do you see mobile fitting into marketing and advertising campaigns?

Anthony Masunga: It will just be a cheaper and more direct form of marketing and advertising campaigns provided issues of SPAM are addressed

VAS Africa: Which companies are showing most innovation in the region and what can be learnt from them?

Anthony Masunga: First National Bank in partnership with different Mobile Networks for money transfer and payment services (e-wallet, m-wallet and payments)

See Anthony Masunga speak on the 24th June at 12:40! 

East African Operator CxOs Plan to Meet in Nairobi to Discuss Strategies for Healthy Competition in the Region

The East African telecoms markets, and in particular the Kenyan & Ugandan markets, have seen stiff competition – especially around price.  With ARPU decreasing to just US$7.13, operators are left wondering how they can improve their bottom line, despite having to diminish their prime source of income from customers. 

In response to this, convergence, broadband and value added services are becoming an increasing part of operator strategies, with Informa Telecoms & Media reporting that mobile broadband subscriptions in East Africa grew by 105% in 2010 to reach 690,707.  A mix of technologies are being deployed to offer these broadband services as  mobile, satellite and fixed-line operators and ISPs compete with bundle prepaid options.

With this array of challenges and growth opportunities, East Africa Com is the perfect forum for operators needing to get together, discuss, and learn.  15 CxOs from East African operators have so far confirmed their participation at East Africa Com – the region’s leading executive-level telecoms conference & exhibition – which will take place in the Kenyatta International Conference Centre, Nairobi, on the 5^th and 6^th April www.comworldseries.com/eafrica

These Operator CxO speakers include; Richard Bell, Group CEO, Wananchi Group; Atul Chaturvedi, CEO, Yu Kenya; Bhaskar Chakraborty, Chief Supply Chain Officer, Airtel Africa; Mickael Ghossein, CEO, Orange Telkom Kenya; Michel Barré, VP East Africa & Islands Region, Orange France-Telecom Group; John Barorot, CTO, Safaricom; Peter Arina, CCO, Safaricom; Norman Moyo, CEO, Zantel Tanzania; Peter Reinartz, CEO, Zuku Kenya; Julius Kinyua, CEO, Flashcom, Kenya; Khalil Nassar, CTIO, Vivacell, Southern Sudan; James Byraruhanga, CTO, Roke Telkom, Uganda, amongst others.

They will offer expert observations and best practice advice on issues like: mergers and acquisitions in the region; Airtel Africa’s arrival; competing in the converging East African arena; connecting East Africa - strategies to leverage greater network capacity & drive access to communications; network evolution & the leap to LTE; VAS - delivering real value to customers; operator competitive strategies - ensure prime positioning to thrive in East African markets; strategies for a fair playing field & customer centricity; intelligent and cost-effective extension of networks for rural access to communications; rural telecoms - reaching out with services for new growth; and how to defeat telecoms fraud to discover lost revenue.

East Africa Com is the only annual event dedicated to the communications industry of East Africa where 850 operators (fixed, mobile, wireless), ISPs, regulators, investors and vendors from the region gather to debate the opportunities and challenges facing their markets. The conference will be co-located with an exhibition that showcases the latest innovations from over 30 telecoms companies in East Africa and across the globe. Find out more online: www.comworldseries.com/eafrica

Should the economic recession still be affecting the Eurasian Telecommunications market?

The Economic Recession: Implanting a Global Mindset of Panic

Following the events of 2007, the phrase ‘economic downturn’ resonates strongly in the hearts of individuals all over the globe. With the macroeconomic environment having falling into significant decline and being shadowed in great uncertainty following the global economic recession, it is no wonder that its impacts echo considerably into daily life years into its aftermath. My view however is that the impacts of the recession have escalated far beyond the extent of its reality. It is the ‘global mindset of panic’ embodied almost universally which has triggered the escalation of the recession from an epidemic into a global pandemic. I believe that to recover, one must look forward. To grow, one must spend. And this thinking is of paramount importance to the business world. Positivity not only in thinking, but in spending, is crucial if we are to grow out of this ghost of recession which continues to haunt the public mind.

Is the recession still truly affecting the Eurasian Telecommunications market?

The telecommunications market has no less been threatened by the deepest post-war recession to date. With reduced consumer spending and volatility in the markets of operations, there has been a negative impact on financial and operational performance. In Eurasia, many of the leading operators of the region have stated that ‘global difficulties within the financial sector make it difficult to attract additional financing’ (MTS) whilst ‘inflationary pressures on daily necessities are hitting peoples wallets leading to cautiousness when it comes to consumption’ (Telenor).

But what have been the actualities of the market through this recessive period? Subscription growth for telecommunications has in fact steadily grown from prior to 2007. Penetration of mobile broadband is currently at 74% and is forecast to reach an impressive 97% by the end of 2012 (Informa Telecoms & Media). Thus evidence shows consumers are consuming and growth will continue. And with the increasing opportunities given by evolving telecommunication technology, epitomised by mobile tv and videos, gaming, multiple applications and healthcare, this is set to grow further. Additionally, with the release of new spectrum at 2.5Ghz in accordance with the digital dividend, mobile broadband services are set to become truly pervasive. The necessity for communication is constant, which alongside the multidimensionality of the telecoms markets, leaves a picture which is predominantly positive.

So what should Eurasian Telcos be concentrating on to maximise their ROI?

A seemingly relatively easy question becomes much more difficult in the aftermath of a destabilising economic recession. Is it right to increase expenditure now to prepare for forecasted growth or to limit expenditures considering the instability of a recovering market?

Personally, I feel that now is the time to get ready for the next stage of growth. In order for telco businesses to stay at the cutting edge of the market, now is the time to start investing in the technologies of the future and shed this mindset that has been so detrimental to the economy of the present day. So what way can telecos do that, you may ask? Let’s take LTE. Having now been tested, trialled and commercially announced by over 100 manufacturers, surely the migration to LTE from 3G is the future of the networks, addressing market needs for the foreseeable future. The idea of investing in new LTE architecture, rather than building upon existing infrastructure, although expensive now, seems like the right thing to do.

Other big earners for the market in my opinion must be value-added content, crucial in keeping the ever-demanding customer happy. Loyalty schemes, similarly, will surely benefit operators in retaining their highest-value customers. The opportunities for growth are endless in such a multi-dimensional arena, as long as thinking and spending remain positive.

Discussion and Debate: Determining the Direction of Development

I am sure my view is one that will not be unopposed. Even the world’s leading economists disagree on what are the optimal business models for moving out of a recession. This unsettling fact leaves the industry in a predicament on the best way forward. So what to do?

We need to talk through these issues in depth and detail, with advice from the regions’ key leaders. Platforms are needed to resolve queries of the future of the Eurasian telecoms market: how can we capitalise on new revenue streams and constant broadband developments? How can businesses be revolutionised to boost their development? Do the answers lie in LTE, IPTV and seamless fixed-mobile convergence? The answers are far from clear-cut but dedicated discussion and debate holds the key for finding the right path.

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Where can the right level of discussion and debate be found? Where is there dedication to a focus on the Eurasian teleco market specifically? Where can you proactively join in these discussions? To find out more about such a forum that initiates truly topical discussion, click here...

http://eurasia.comworldseries.com/conference/download_brochure

Do you have any comments?

Please contact Jane.Schofield@informa.com

3G Americas on LatAm region's contribution to the 4 billion global mobile subs

Just before the Christmas break, our friends at 3G Americas flagged up a historic milestone for the cellular industry, announcing that as of December 2008 there exist "4 billion connections to mobile devices worldwide." Citing the number crunching of our very own market watchers at Informa Telecoms & Media, the GSM family-focused wireless industry trade association noted that this "represents 60% of the entire global population today" and that "in some countries, millions of people are now experiencing connectivity to the world for the first time through wireless and changing their economic, social and political fortunes forever."

The 3G Americas release goes on to quote Marisol Gomez, our LatAm region analyst, with whom I've had the pleasure of working in the last few months. Marisol says: "the Latin America and Caribbean region continues to show steady consumer growth with 16% year-on-year growth as subscription numbers are expected to reach in excess of 440 million, equating to 76% penetration."

I remain keen to keep an eye on the Latin American mobile scene, not least because preparations for the next GSM Americas/Americas Com conference are well underway. As part of this, the Com World Series team is now working much more closely with our Sao Paulo-based colleagues at sister company Informa Brasil. Marisol and I have both been involved in detailed briefings designed to ensure that we harmonise our efforts with our Brazilian friends and jointly add value to an already well-established regional discussion and networking forum. We return to Rio de Janeiro for the 2009 iteration, hosting the event at the wonderful beachfront Windsor Barra Hotel 30th June-1st July.

It's gratifying to see the folks at 3G Americas continuing to cite Informa TM market information given that I've personally striven to develop further our partnership with Chris Pearson, who heads up the association and Erasmo Rojas, who leads activities in Latin America. For as long as I've been involved in our Americas event, Chris and Erasmo have jointly led a co-located 3G Americas Executive Briefing, which assembles CxO-level speakers from leading mobile carriers. We are on track to offer this feature of the conference once again in 2009, and both sides have been discussing how we can do even more to ensure that the audience maximises the opportunity to engage with the panellists and derive maximum value from their presence.

Chris and Erasmo both seem very keen that the wider conference begins to offer more insights around the roadmap for evolution towards LTE.

"Third generation technologies continue to evolve and the GSM operator today has a clear path towards LTE," stated Chris earlier this month. "In addition to the evolution to LTE by GSM operators, LTE is proving to be the technology choice for CDMA operators as well."

3G Americas quote Informa TM's estimate that there are nearly 415 million 3G subscriptions to date, with 77% share of the 3G market on UMTS/HSPA networks or 320 million connections, and the remaining 95 million on CDMA EV-DO. Our figures suggest that the number of commercial UMTS/HSPA networks has risen to 258 in more than 100 countries, including 41 networks in 20 countries in the Latin America and Caribbean region.

"HSPA and HSPA+ will compete with any and all mobile wireless technologies available today and in the near future," concludes Chris Pearson. "In fact, recent commercial launches of HSPA+, such as that of Telstra in Australia, are reporting peak theoretical downlink speeds of 21.6 Mbps. 3G is more than capable of delivering the bandwidth customers need today, and the emerging LTE technology provides us with a clear evolution path for the future."