Yaya Ndjore discusses the most popular services for African consumers, mobile money, and top three major trends affecting his region

Ahead of VAS Africa 2014 we are in conversation with Yaya Ndjore, Head of Digital, Tigo Tanzania

Yaya Ndjore, Head of digital, Tigo Tanzania

Com World Series: Please describe your company’s position and objectives in Africa:

Yaya Ndjore: We aspire to be among the leading Telcos providers by following our triple a strategy.

Com World Series: What do you think are the top 3 major trends affecting your business in the region in 2014?

Yaya Ndjore: 1. Urbanization rate 2. Affluence rate 3. Saturation of Mobile in Cities

Com World Series: Which do you consider to be the most popular services for African consumers and enterprises?

Yaya Ndjore: Data is the simplest answer but we need to look at what services on top of that.

Com World Series: What are the main challenges operators need to adapt to in order to deliver attractive services to their customers?

Yaya Ndjore: Sophistication of the customer, adaptation to the emotional aspect of the service delivery.

Com World Series: What is the best way forward for operators and OTT players – competition or partnership?

Yaya Ndjore: Partnership

Com World Series: How are mobile money services likely to evolve in the years to come?

Yaya Ndjore: With already 61 million worldwide, in just few years of existence, they will grow further.

Com World Series: How do you see mobile fitting into marketing and advertising campaigns?

Yaya Ndjore: Great potential as Ad can be very mass targeting…

Com World Series: Which companies are showing most innovation in the region and what can be learnt from them?

Yaya Ndjore: Difficult question as all major companies are showing a lot of qualities in that regard MTN, VODAFONE and MILLICOM are leading the way/ lessons learnt: try to detect trends and understand the implications before anybody else.

See Yaya Ndjore speak on Day 2 of VAS (25th June 2014)

Simbarashe Mabasha discusses how mobile money services will evolve and more ahead of this year's VAS Africa

Simbarashe Mabasha, CEO, Wabona

Ahead of VAS Africa 2014 we are in conversation with Simbarashe Mabasha, CEO, Wabona

Com World Series: Please describe your company’s position and objectives in Africa

Simbarashe Mabasha: I am the CEO of Wabona and our objectives are to provide an innovative, affordable and unique Video-on-Demand service for Africans via mobile and online.

Com World Series: What do you think are the top 3 major trends affecting your business in the region in 2014?

Simbarashe Mabasha: Data costs, Medium specific content, Somewhat slow smartphone growth

Com World Series: Which do you consider to be the most popular services for African consumers and enterprises?

Simbarashe Mabasha: Music and general entertainment services for consumes. Data management services for enterprises.

Com World Series: What are the main challenges operators need to adapt to in order to deliver attractive services to their customers?

Simbarashe Mabasha: Data prices have to come down.

Com World Series: What is the best way forward for operators and OTT players – competition or partnership?

Simbarashe Mabasha: Partnership.

Com World Series: How are mobile money services likely to evolve in the years to come?

Simbarashe Mabasha: They will surpass conventional banking and credit card services.
Com World Series: How do you see mobile fitting into marketing and advertising campaigns?

Simbarashe Mabasha: Mobile is crucial to growth of the market and Ad-revenues for operators and OTT players as a whole.

Com World Series: Which companies are showing most innovation in the region and what can be learnt from them?

Simbarashe Mabasha: Zuku is offers a Triple-Play approach by providing a PayTV, voice and data solution for consumers. This combination of DTH and OTT is a step in the right direction.

See Simbarashe Mabasha talk on Day 1 of VAS Africa (24th June at 15:10)

Great blog post from Network Africa: I want Orange to be seen as the good guy in Africa

Marc Rennard,
Executive vice president of Asia, Middle East & Africa
Orange

Originally posted on Network Africa, Written by Benny Har-Even

Marc Rennard, executive vice president of Asia, Middle East & Africa, Orange
2012 was a good year for Orange in Africa as its executive vice president for the region, Marc Rennard, enthuses: “We had three targets: income growth, EBITDA rate, and the free cash rate (EBITDA minus capex). I beat all my targets so my personal bonus will be good!”
But that doesn’t mean it’s plain sailing for the company as it looks ahead. When asked about the key challenges over the coming months, Rennard immediately names one country which he describes as “very important” in his portfolio: Egypt. Rennard is the chairman of one of Egypt’s leading cellcos, Mobinil, which is 94 per cent owned by France Telecom. With 32 million subscribers, he says that Orange has more customers in Egypt than it does in France.


“It’s a big country and the economy is down. It’s key for me. Following the Arab Spring, the eviction of the president, and then the debate around the opposition, trust in this country has not returned. International investors do not want to come back today. Nobody wants to leave Egypt, but everybody has reduced their stake in this country. I anticipate that we could recover growth momentum at the end of 2013, but to be frank I said that in 2012, so I was wrong.


“But what is for sure is that it will recover because it is an important part of the world. It helps to guarantee stability in the Middle East. It’s [a bridge] between Africa and the Middle East and it’s a peacemaker. So we trust this country in the long term and we have a lot to do there.”


But Egypt isn’t the only thing that perhaps keeps Rennard awake at night. He’s also concerned about Orange’s capacity to rollout 3G networks, and the technical and human resources that go with that. “What is also tough for us is how to guarantee that we will create a gap between us and our competitors in terms of quality of service regarding data. Everybody is able to make voice networks work. For data it’s more complex. And as we are a big group there’s a lot of potential for innovation. We have to increase loyalty. In Madagascar [for example], because of all the customers who have Orange Money we have increased ARPU by 20 per cent and loyalty. But it’s tough and it costs money.


“I would prefer to have one country less, even to sell a country, if it meant [the networks I have are] the biggest and best in terms of quality, and ones that were appreciated by the customer. That’s the only way to attract the customer and to be the reference network. Each time we are leader it’s tough for the other two to recover; that’s why I fight and very often it’s to our cost. I absolutely want to keep the number one position because MTN is pushing to get this but I don’t want to let them have it.


“I have discussions with my group CFO and my views don’t always carry. But my belief is that we should invest more rapidly, more strongly in a more limited number of countries, and get the number one position. For example, it would be better for me to spend five million more in capex to implement in Congo or in Ivory Coast than to have South Africa or Guinea to manage. I don’t care if I don’t have South Africa. I prefer to spend capex to invest more in Congo than to get a new country.”


Too early for LTE in Africa?


While Rennard talks about the importance of 3G, like other major operators on the continent Orange is beginning to rollout 4G and already has deployments in Botswana and Mauritius. But is it too early for LTE in Africa given that many countries don’t even have 3G?


“Each time we say it’s too early we are wrong. I remember when I joined this industry in 2004, Mauritius decided to launch 3G and I said ‘Stop! That’s a crazy investment, it’s too early’. I was right, it was too early – but only by two or three years. It should have been done in 2007 or 2008, not in 2004. With [hindsight] you can choose the right technology, but if you do deploy early it’s not so important.“With LTE you have theoretical speeds that are very high when you are alone around the cells. But when you have 10 people communicating and exchanging data you will saturate the cells. And you need a lot of cells. So I think 2013 is not the year of LTE. It’s the year of demonstration at events. 2014 or 2015 probably will be the year.


“Nonetheless, you need to prepare and optimise your networks today – otherwise they will crumble as the traffic increases. Yes, we have a lot to do in order to be more successful and more professional in terms of backhauling the transmission. Take the DRC as an example. We have the right licenses and the frequencies for LTE. Is the immediate need to develop LTE? Or is the immediate need to enlarge my 3G+ network and to improve the backhauling plus the international capacity? We can talk about 3G, 4G, 5G, 7G – whatever you want – but if the submarine cable is not working, you will not have the speed.”


Fibre is now a big weapon in Orange’s technology arsenal for Africa. Earlier this year the operator’s ACE submarine cable system began to offer services to the first 13 countries. This will certainly help Rennard’s stated aim of improving international as well as enterprise connectivity. But will it also mean that Orange will give up on other technologies such as satellite?


“We have satellite in almost all countries except perhaps Ivory Coast. We use a lot of satellite and in Congo we’ve used it forever. But to flow some gigabytes of traffic outside a country, it’s not enough. It’s costly. But to flow voice and SMS, for backhauling, and to flow part, or even most of the traffic for redundancy for example, it’s okay.


“I am not against satellite. I come from that industry – I was managing director in France of TDF and managed TDF 1 and TDF 2. Satellite is more efficient when it works because it’s point-to-multipoint. But it’s not enough. I have had issues with satellite in Guinea, in Niger, and in some countries in southern Africa where we lack capacity to develop the internet.”


So if the aim is to offer connectivity very quickly and at an affordable price, what about other wireless technologies such as WiMAX? While Rennard admits that he is not a pure technician, as an informed observer he believes WiMAX has had its day and that GSM 3G and LTE will be the future.


“Let me give you an example. In Congo we bought a global license for 2G, 3G and WiMAX. We have just managed to give back our WiMAX license and to get an LTE license. I will not build a WiMAX network. We hesitated but I made the decision in June 2012 not to go ahead with our WiMAX license. We launched LTE not for the consumer but for the corporates.”


Despite this, Rennard also says that when Orange launched WiMAX in Mali it was the first in the France Telecom group to use the technology, and it works very well. But in the light of LTE, he no longer sees it as a long term proposition. Earlier this year, he held a meeting with all his CEOs and told them that Orange’s priority is to get licenses and frequencies for LTE.


A hybrid market


3G, data, LTE – all of that implies that the operator’s goals in Africa now revolve around offering subscribers more services in a bid to increase ARPUs and loyalty. But isn’t it harder to lock-in customers and sell them more services in a market that is 98 per cent pre-paid? Rennard doesn’t agree. The African market is actually a ‘hybrid’ one, he says.


“It’s post-paid without risk so it’s not pure pre-paid. The rule in this market is pre-paid, so why would we want to change it? I prefer to focus on investment in process, to have the best quality of service and even with pre-paid, to have the customer stay with us rather than stick them through a contract.


“You have to install and improve your billing system, and you have to take the risk of bad debt. Ninety-four per cent of our revenue is going through top-up. It’s too much. We want to reduce that because we have no more scratch cards available on the streets.”
One market segment that Orange has set its sights on moving forwards are the enterprise users. Like many major operators across the world, it has setup a dedicated division and hopes to gain increasing business for it in Africa.


“Orange Business Services is for a limited number of customers who are big. It’s one of my priorities in 2013, and probably one of the parts of the business where I am not excellent because [there are] fixed networks and we have all these technical solutions with cloud computing, VPN, etc. We could do more. Where we are an incumbent fixed operator we are good – in Mauritius, Senegal, Ivory Coast, Jordan, for example.


“But where we come as a mobile operator – such as Madagascar, Cameroon, etc – life was too easy for the guys. For a number of years we have had 25 per cent growth per year. If you only make 22 per cent you’re still the king, right? If your growth is three per cent and you make minus one per cent, you’re not the king. So, people were used to having easy growth. Business to consumer was very easy – it was marketing, it was advertising, etc.


“Now we have to pay more attention to this with customer base management and to focus this year on business to business. If there’s one area that we have room for improvement it’s this one.
“In some countries, such as the DRC, all the hotels, factories, etc, have the solution to connect – they have their own VSAT. It’s not their job to manage VSATs but they do it because they have no alternative. There is not one fixed line in the country and no submarine cable. They want us to provide a solution so I think there’s room for growth in the B2B market. I am not happy with my performance in the B2B.”


Rennard berates himself, possibly unfairly, with that last remark. Clearly, there is a great deal of personal passion in his approach to connecting Africa. “We would like Orange to be viewed as a good guy who has a long term perspective. Meaning that we have achieved and organised sustainable growth, one that has a good network, a good quality of service, and that we take care of corporate social responsibility. Because we cannot live as a foreign investor and as a rich company (we’re very rich) in a poor environment without contributing visibly to the development of that country.


“I would be happy to have the possibility to be number one everywhere but with a positive judgement from the population. It’s the only way to be alive in 10 years. If not, one day a government will say: ‘What is all this cash that is going back to France?’ We have to prove that we are a good player for the population.


“And it’s in my heart and my personal interest now. I have a big project, that I have launched in Ivory Coast and other countries, to make sure that in each village has at least one medical dispensary, one school and one point for water. When you do that, you make your life successful.”

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! 

Il faut mettre en place des mesures souples pour l’accès aux supports de communication » dit Wilgon Berthold Tsibo d’Azur Telecom

Wilgon Berthold Tsibo est Directeur Technique du groupe Azur Telecom, présent au Congo, en Centrafrique et au Gabon. Il partage son point de vue sur le développement de l’accès aux communications en Afrique de l’Ouest. Il fera partie d’un panel sur comment gérer les coûts en maintenant la qualité des services dans un environnement gourmand en data dans la conférence Connecter l’Afrique de l’Ouest à Dakar en juin.

Com World Series: Quelle doit être la priorité principale pour améliorer l’accès aux communications en Afrique de l’Ouest?

Wilgon Berthold Tsibo: Afin d’améliorer l’accès aux communications en Afrique de l’Ouest, il faut mettre en place des mesures souples pour l’accès aux supports de communication : les terminaux et aussi les infrastructures de communication.

Com World Series: Quel degré d’amélioration des réseaux est nécessaire pour offrir un accès fiable au services de data?

Wilgon Berthold Tsibo: L’amélioration nécessaire à mener pour offrir un accès fiable aux services data se situe dans la gestion de la capacité en termes de bande passante pour fluidifier le service et aussi les facilités à mettre en place pour rendre le service plus accessible, même dans les zones reculées.

Com World Series: Comment les réseaux LTE se développent-ils dans la region? Qui sont les leaders et qu’est-ce qui fait de leur stratégie un succès?

Wilgon Berthold Tsibo: Il est clair que les réseaux LTE ne sont pas totalement développés dans la région. 

Com World Series: Quelles sont les derniers  développements dans les services fixes/wireless?

Wilgon Berthold Tsibo: Les derniers grands développements dans les services fixes/Wireless restent principalement le lancement des services 3G dans la plupart des opérations sur place.

Com World Series: Comment les opérateurs peuvent-ils contrôler les coûts pour maximiser leur profitabilité?

Wilgon Berthold Tsibo: Le contrôle des coûts passe par la maitrise des items qui génèrent le plus d’OPEX. A cela, nous allons plus parler des problèmes d’énergie dans les sites. Afin de maitriser des tels coûts, il faut mettre en place un système d’énergie nouvelle avec des panneaux solaires par exemple. Ces systèmes demandent beaucoup de CAPEX à mettre en place, mais peu d’OPEX pour leur gestion.

Com World Series: Quels développements de satellite vont avoir le plus d’impact sur le secteur des communications dans la région? 

Wilgon Berthold Tsibo: Les satellites doivent améliorer la couverture dans la zone en permettant aux bénéficiaires d’avoir un accès rapide à leurs services, sans nécessairement utiliser plus de capacité et de puissance.

Com World Series: Quel est l’impact des technologies de fibre sur le marché de la région?

Wilgon Berthold Tsibo: La fibre optique contribue énormément à l’émergence des services demandant plus de bande passante. Cela est possible de par ses prix abordables et aussi sa facilité d’accès.

Com World Series: Comment les régulateurs et gouvernements soutiennent-ils l’investissement dans les réseaux de la région?

Wilgon Berthold Tsibo: Les régulateurs soutiennent l’investissement dans les réseaux de la région en faisant respecter les cahiers de charge et en mettant en place aussi des mesures de contrôle de prix qui permettent un meilleure compétitivité entre les opérateurs.  

Com World Series: Quelles sont vos attentes pour le salon Connecter l’Afrique de l’Ouest cette année?

Wilgon Berthold Tsibo: Permettre à tous les participants  de profiter des échanges qui y seront faits et aussi élargir le panel des contacts pour un meilleur développement du business de façon multilatérale. 

Note D’Hours Telecom & Utilities Dans Le Cadre De La Preparation De Connecting West Africa 2014

NOTE D’HORUS TELECOM & UTILITIES DANS LE CADRE DE LA PREPARATION DE CONNECTING WEST AFRICA

      Quelle doit être la priorité principale pour améliorer l’accès aux communications en Afrique de l’Ouest?

Les 20 dernières années ont été marquées par l’explosion de la téléphonie mobile en Afrique de l’Ouest, qui a permis à une majorité de la population d’accéder aux services de télécommunications qui lui était jusqu’alors fermés, puisqu’ils étaient de facto réservés à l’administration, aux entreprises, à une faible partie de leurs salariés (cadres) et aux quelques ménages (moins de 5%) titulaires d’une ligne fixe.

Cette « démocratisation » des services de voix a eu un impact considérable sur les modes de vie et sans aucun doute sur le développement économique, et le développement de nouveaux services comme le M-Paiement devrait continuer à répondre à des besoins véritablement essentiels et à améliorer les conditions de vie de chacun.              

Trois priorités se dégagent pour les années à venir :

•           La baisse des coûts des services de voix mobile entre les réseaux
•           Le développement de l’accès aux services de données, notamment auprès des très petites entreprises
•           La couverture des zones rurales en services de voix et de données

Baisse des coûts des services de voix mobiles entre les réseaux (« Off – Net »)

Le niveau élevé des coûts d’interconnexion constitue avant tout un moyen pour les opérateurs dominants de freiner l’émergence de nouveaux acteurs.

Les tarifs des communications Off – Net sont parfois le double des tarifs On – Net, voire supérieurs aux tarifs des communications internationales.

Ce niveau élevé de l’interconnexion procure à court terme des revenus importants aux opérateurs en place mais ses effets pervers, notamment pour les consommateurs, sont considérables :

•   Frein à la concurrence (effet club)
•   Phénomène des « multi – SIM » : selon les pays et le nombre d’opérateurs, les consommateurs finaux sont incités à s’équiper de 2 à 4 cartes SIM d’opérateurs différents. Le taux réel de pénétration (fondé sur le nombre réel d’utilisateurs) peut être deux fois moins élevé que le taux officiel, fondé sur le nombre de cartes SIM actives
•           Coût finalement élevé pour les consommateurs qui consacrent jusqu’à 15% de leur revenu à la téléphonie mobile (contre 2 à 5% dans les pays de l’OCDE)
• ARPU très faible et tendanciellement décroissant pour chacun des opérateurs

En règle générale, les pays d’Afrique de l’Ouest francophones ont du retard dans ce domaine par rapport aux pays d’Afrique de l’Est et/ou anglophones, dans lesquels (Ghana, Kenya..) les régulateurs ont imposé depuis quelques années des baisses autoritaires des tarifs d’interconnexion.

Développement de l’accès large bande aux services de données et à Internet

L’accès data et internet large bande reste très limité, du fait principalement de la très faible pénétration de la téléphonie fixe (0,1 à 1,5% de la population) et partant de l’ADSL.

Le développement relativement rapide de la 3G et bientôt des réseaux LTE permettra d’amélioration l’accès mais ne répondra pas à l’ensemble des besoins, notamment professionnels :

-          l’accès data et Internet large bande (> 1 Mbps) est pour l’instant réservé aux grandes et moyennes entreprises, via le réseau fixe ou le satellite (VSAT)

-          l’Internet mobile adresse essentiellement une clientèle jeune et résidentielle : les sites les plus visités sont Facebook, Google, Yahoo et YouTube

Il n’existe donc pas ou peu d’offres adaptées aux besoins et capacités du segment majeur des millions de très petites entreprises qui assurent l’essentiel de l’activité économique et de l’emploi en Afrique.

La couverture des zones rurales

La couverture des zones rurales en services de voix et a fortiori de données a toujours été différée par les opérateurs en raison des problèmes techniques (énergie) et financiers qu’elle soulève.

Sous la pression des Autorités Publiques (gouvernements et régulateurs) mais également du fait d’une certaine saturation des marchés urbains, la situation évolue (lentement) grâce à l’émergence de solutions innovantes dans les domaines de l’énergie (solaire) et du transport (satellite).

La couverture rurale dans des conditions rentables requiert de réaliser des analyses géomarketing assez approfondies permettant d’adapter finement les équipements radios (TRX) aux besoins réels. Elle devrait d’autre part être facilitée par le développement assez rapide du partage de sites et l’apparition de Tower compagnies.

 Quel degré d’amélioration des réseaux est nécessaire pour offrir un accès fiable aux services de data?

Les principaux problèmes sont :

-          En ville, la qualité des réseaux fixes filaires (et leur éligibilité à l’ADSL) dont la réhabilitation est très couteuse

-          A l’échelle des pays, l’absence ou la saturation des réseaux de transports (backbones) qui ne peuvent répondre aux besoins exponentiels en capacités induits par le déploiement des réseaux 3G.

 Comment les réseaux LTE se développent-ils dans la région? Qui sont les leaders et qu’est-ce qui fait de leur stratégie un succès?

Le développement des réseaux LTE est pour l’instant plus lent en Afrique de l’Ouest qu’en Afrique de l’Est où existent quelques acteurs majeurs comme Smile. Le Groupe Suisse YouMee Africa, déjà présent au Cameroun, vient d’annoncer le lancement de ses activités en Côte d’Ivoire.

Quels sont les derniers  développements dans les services fixes/wireless?
Comment les opérateurs peuvent-ils contrôler les coûts pour maximiser leur profitabilité?

-          Par la mise en commun des infrastructures de transport (backbones) et des infrastructures passives des sites radios

-          Par la limitation progressive des capacités d’accès radios (3G/4G) en fonction de la consommation mensuelle des clients (formules de « faux illimité »)

Quels développements de satellites vont avoir le plus d’impact sur le secteur des communications dans la région?

L’apparition des offres satellitaires en bande Ku et surtout Ka permet une réduction drastique des coûts de bande passante, d’une part pour l’activité de backhauling, et d’autre part pour le développement d’offres de services managés d’accès large bande individuels.

Ces offres devraient notamment permettre d’adresser le segment des TPE dans les petites localités et les zones rurales où le déploiement d’infrastructures de transport terrestre est trop couteux.

Quel est l’impact des technologies de fibre sur le marché de la région?

Cet impact porte essentiellement sur le déploiement de réseaux de transport (backbones) nationaux et internationaux, terrestres et sous-marins, qui ont décuplé les capacités de connectivité large bande au moins le long des côtes de toute l’Afrique et qui devraient en faire baisser le prix si les conditions de concurrence et d’accès libre s’améliorent.

En termes d’accès, cet impact, pour des raisons de coût d’investissement, restera limité à court et moyen termes aux (très) grandes villes pour le raccordement des administrations, des grandes entreprises et éventuellement de grands ensembles immobiliers professionnels et résidentiels.

Comment les régulateurs et gouvernements soutiennent-ils l’investissement dans les réseaux de la région?

Les gouvernements soutiennent essentiellement les investissements dans les backbones nationaux, par la recherche de financements internationaux et la mise en place de PPP (Partenariat Publics Privés) mais ces processus sont très lourds/lents à mettre en œuvre et n’emportent pas nécessairement l’adhésion des opérateurs privés dans un contexte très concurrentiel.

D’un autre côté, gouvernements et régulateurs ont (trop) tendance à considérer le secteur des télécommunications comme une source intarissable de revenus à travers la mise en place régulières de nouvelles taxes, de plus en plus souvent assises sur le chiffre d’affaires et donc très pénalisantes pour les opérateurs.

Quelles sont vos attentes pour le salon Connecter l’Afrique de l’Ouest cette année?

Rencontrer des opérateurs et régulateurs et les sensibiliser à l’intérêt et l’apport de l’analyse géomarketing pour améliorer l’efficacité et la rentabilité des réseaux, notamment en zones rurales.

Dominique Baron est Président d’Horus Telecoms & Utilities, une société de conseil au service des opérateurs de télécommunications et investisseurs dans le domaine du marketing, de la distribution, gestion, organisation et financement. Il donnera une présentation sur comment répondre à la demande de services en milieu rural dans des conditions économiques difficiles dans la conférence Connecter l'Afrique de l'Ouest à Dakar en Juin.

Jonah Fink, Senior Vice President of IDT Telecom Solutions talks on key trends and prospects in the African VAS market...

Jonah Fink
Senior Vice President
of IDT Telecom Solutions

Informa Telecoms and Media caught up with Jonah Fink, Senior Vice President of IDT Telecom Solutions, ahead of his presentation at VAS Africa 2014, to find out Jonah’s thoughts on key trends and prospects in the African VAS market...

Com World Series: What business do IDT have in Africa?

Jonah Fink: IDT supports a strong channel partner program in Africa that supports System Integrators, Internet Service Providers and internet-related VARs that sell IDT Hosted and branded Voice over IP Solutions under the IDT Beyond’s portfolio. Services include – call shop, broadband telephony, mobile app and SIP Trunking.

Com World Series: What are the three key challenges for the African Voice Market now?

1. Commerce  2. Awareness  3. Focus

Jonah Fink: As “Cash & Carry” is still the dominant behavior in African consumer commerce, finding key distribution partners with a strong footprint of point of sales is essential.

Awareness of alternate voice solutions is a key ingredient for both the consumer and business client. As Africa may be the leading continent of opportunity, there is so much to do and focus on. IDT is looking to establish partnership whose sole focus is voice and its delivery to their respective markets. Teamwork, Collaboration and Hands on Workshops or seminars can help drive the awareness and necessity of IDT Beyond’s Over the Top Solutions.

Com World Series: How do you see those challenges changing in the next three years?

Jonah Fink: I believe the single remedy to the above stated challenges is internet penetration. As Africa will continue its rapid and robust deployment of Internet around the continent all three of the above stated challenges will be appeased. Internet will start enabling POSA networks around the Horn of Africa to produce real time transactions no matter how the remote a location will be. Internet penetration will allow for real time webinars & “GotoMeetings” hosted by IDT Beyond to attract key decision makers to join and learn about alternative voice solutions for the home, business and enterprise. Thirdly, IDT is prepared, encouraged and motivated to share best practices with African operators to showcase case studies that have yielded mass success to our key partners around the globe. Gaining such awareness and knowledge will drive the Operator’s confidence in regaining the share of the market that belongs at home. 

Com World Series: What makes the African market different from the rest of the world?

Jonah Fink: Its diversity, topology, demographics and culture require IDT to study and learn each country as its own entity. Customization is a key ingredient to IDT’s voice offers. One size does NOT fit all. IDT works intimately with each and every partner on their requirements. IDT listens to the operator’s need for brand awareness, uniformity and seamless integration of IDT’s solutions into their respective portfolios. 

Com World Series: Are OTT operators’ a threat or an opportunity for African Telcos?

Jonah Fink: Cleary, OTT operators such as Skype, Viber and WhatsApp are threats against African Telcos revenues. In particular, international long distance is on a decline for most operators in the region. In fact, there are many supportive studies and articles which say that VOIP originated international traffic has surpassed the traditional voice minute in key markets in Africa. At the same time, these applications have created a very strong awareness down to the consumer. As each day goes by, African consumers are embracing new methods of communication. There was an eye opening article published some months back which conducted a survey posing the question: If the local operator would launch its own OTT solution such as Skype in their market, would the consumer continue to purchase from Skype or would they buy directly from their local Operator…. And the overwhelming response to the article was the consumers would buy from their home based operator. Loyalty, nationalism, brand and a single bill rather than a swivel chair approach to another foreign OTT based provider is the appeal.

Com World Series: How can African operators make money from voice when so many calls are free now?

Jonah Fink: The world is all about mobility. Mobile penetration into Africa is going at lightning speeds. As Africa, becomes mobile and customers are taking their lives on the go, off-net traffic is growing. It’s funny, when one thinks about Skype or Viber services, they immediately think about P2P (Peer to Peer free services). It is worthy to note that IDT’s flagship mobile calling solution in the United States just enjoyed its strongest month of March producing tens of millions of dollars in international voice revenue. There is certainly Skype and Viber in the USA… So why is IDT’s retail voice business growing? Isn’t everyone talking for free? Absolutely not! We forget too easily, that particularly in the developing markets, where international voice corridors are so important, consumers are either getting their first mobile phone for the very first time, enjoying new cellular networks which are reaching remote communities for the first time and yes the smartphone is making customers smart. All of these ingredients mean more billable minutes which can go in either of two ways – yours or theirs…

Hear more from Jonah at 14.20 on 24th June, in his presentation at VAS Africa! Download the full agenda here!

Toyin Oloniteru, Director General - ICT, Government of Ekiti State, Nigeria: "Policy modification, enhancement and refinement is required on the basis of above to bring about network improvement in the sub-region"

Toyin Oloniteru
Director General - ICT, Government of Ekiti State,
 Nigeria

The Com World Series team caught up with Toyin Oloniteru, Director General - ICT, Government of Ekiti State, Nigeria to discuss burning issues on Data Service, Investments and LTE Networks ahead of West Africa Com taking place on the -10th - 11th of June in Dakar, Senegal. 

Com World Series: What in your opinion is the main priority in improving access to communication in West Africa?

Toyin Oloniteru: Preparation, adoption and implementation of national Broadband Internet Access policy (BIAP) across the sub-region with local support from and implementation by States and Local Governments within such national federation depending on how the country is organized politically. In Nigeria for example, there is a national broadband plan and our state – Government of Ekiti State, Nigeria is implementing an Ekiti Digital Transformation Programme (EDTP), a segment of it which comprises of Fibre Optic Roll out within the State capital, Ado-Ekiti. The medium to long term objective is to have broadband infrastructure in all the local government Headquarters in Ekiti State and then to the local communities. I believe this model and framework can be replicated across the West Africa sub-region with experience being shared based on case studies in states and countries that have implemented it.
It will also be great to have established and in operation West Africa Internet Exchange Point (WAIXP) so that Internet traffic within the sub-region can be localized. It will make service cost cheaper and bring about economic integration within the region.

How much network improvement is needed to deliver reliable access to data services?

Toyin Oloniteru: Network improvement in the sub-region can be addressed from a policy and a regulatory point of view. There is need for governments in the sub-region to consider licensing of and use of data centric technologies in their respective countries. In Nigeria for example, adoption of and deliberate promotion of GSM technology at the expense of CDMA technology created the problem of reliable data access and services in the country today. When GSM technology was adopted in the country and companies licensed to provide services using the technology, through regulation and policy – GSM Services provider/Operatorss were giving moratorium of 5 years and with opportunity to roll out nationally while CDMA services providers were restricted to regions within the country and in certain cities. 
Now, CDMA is a better technology at carrying data traffic as compared to GSM that is traditionally designed to carry voice traffic. The implication is that when the time comes now for reliable access to data services to be carried out the limit from the GSM networks become obvious – for example, connectivity for Point of Sale (POS) terminals, Automated Teller Machines (ATMs), Internet Access on mobile devices to mention a few. 

There is therefore need for policy rebalancing of technology adoption with respect to telecommunication service provisioning in countries within the sub-region. It is true that GSM technology for example has brought about substantive improvement in telecommunications development in Nigeria and within the West Africa subregion, but it could be better if the mix were a combination of GSM, CDMA and Fibre Optic Rollout especially in the hinterlands. 

In my opinion, policy modification, enhancement and refinement is required on the basis of above to bring about network improvement in the sub-region.

How can regulators and governments support investment in improved networks in West Africa?

Toyin Oloniteru: Governments in particular have greater role to play in this regard. They need to create conducive environment for investment in improved networks. (1) they need to ensure that power/energy infrastructure in their respective countries are well developed. Today, all Telcos (Telecommunication Companies) spend substantial amount of their fund in improvising for power to support their network. This fund could be used in expanding their network and in ensuring improved quality of service (QoS) to consumers. (2) Right of Way (RoW) charges to Telcos should be lowered and duplication of ROW charges by different tiers of governments – States and Local Governments eliminated. The Regulator can help in ensuring harmonization of RoW charges in this regard – for fair rates to the Telcos.  (3) by giving waivers and special considerations to Telcos in the area of tax payment and import duties through investment friendly fiscal  regime and policies with respect to telecommunication businesses in the sub-region.

The governments and regulators in the sub-region can work together to establish special purpose West Africa telecommunications development Fund that Telcos and SMEs with bias for network expansion can tap into. Such fund will require contribution from Telcos and potential investors in the sector.

How are LTE networks developing in the region? Who are the leaders and what makes their strategies successful?

Toyin Oloniteru: For LTE networks, its development in the West Africa subregion can be said to still be at infancy or just at framework development levels. The leaders are generally the leading Telcos that are already well established. Actual rollout is still scanty at least in the Nigerian environment, which is the largest Telecommunications market in the West Africa sub-region.

What are the latest developments in fixed/wireless services?

Toyin Oloniteru: From my point of view, the fixed/wireless services sub-sector of the telecommunication industry has been unduly short changed with regulatory bias for the GSM industry sector. There is therefore nothing much in terms of latest development as far as I am concern. The industry regulator at least in Nigeria has been unfair to this sub-sector. In the earlier part of telecommunications development in Nigeria it was cheaper and more affordable to use fixed/wireless services but somehow, the regulator deliberately through policy raise the interconnection rates for the fixed/wireless services subsector in other to promote the GSM services. The effect was that charges on calls and services on the fixed/wireless services side became higher, which resulted into loss of subscribers to the providers and hence inability to expand their network regionally and nationally within the country. Again, there is need for prevention of regulatory dictatorship and unfairness to that sub-sector really – at least in Nigeria.

How can operators control costs in order to maximise profitability?

Toyin Oloniteru: One way through which operators can control costs in order to maximize profitability is through “Infrastructure Sharing” and divestment from operations and businesses that are not their core. So Infrastructure Sharing and Business Outsourcing are important to achieving that desire. Others include but not limited to Service pricing innovations and employment of cost effective local human resources (train them to world class level) to man their operation in rural areas where they have operations and render services.

What satellite developments will most affect the communications market in the region?

Toyin Oloniteru: Let us see how the NIGCOM-SAT, in Nigeria develops in this regard. It will give us a hint at the prospect of satellite development in the sub-region.

What is the impact of fibre technology on the region’s market?

Toyin Oloniteru: Fibre optic technology is having great impact in the West Africa sub-region’s market. There are a number of submarine cables that have landed in the region now – MainOne Cable, Glo-1, SAT-3 etc that have landed in Nigeria. Others have landed in other part of West Africa coast too. There are now plans and ongoing implementation to expand the fibre optic rollout to the hinterlands. For example, in Nigeria, we have fibre optic link from Lagos to Ado-Ekiti (by Multilink) and now rollout within the State capital into homes (GRA), government offices (secretariat and campuses) and business locations. At least from this perspective, the technology is impacting the market. There are similar rollouts within greater metropolitan Lagos, the cities of Port Harcourt and Abuja and many other cities will join as the national broadband plan are being implemented and the newly licensed regional Infracos (Infrastructure Companies) by the Nigerian Communications Commission (NCC) begin operation. There is clearly information that similar activities are taking place in other countries of the sub-region. So it is good news.

The real impact is reduction in prices of Internet access/services – to government, businesses and consumers alike. There is also now great increase in the number of mobile internet access subscribers through especially the GSM service providers and other Telcos – reaching previously underserved and un-served areas and groups.

What are your expectations from this year’s Connecting West Africa event?

Toyin Oloniteru: My expectation is that there will be great opportunity for networking, sharing of experiences among countries within the sub-region and from other sub-regions of Africa and the rest of the world. More importantly, event of this nature bring about sub-regional and regional integration of the economies of the participating countries – at governmental and business levels. It also helps to bring about interactions among the people of the sub-region and possibly will aid the need to seek to learn and understand the language of the francophone countries (by the English speaking ones and vice versa). Hopefully, events of this type will help to bring about a common market between the Francophone and Anglophones countries of the West Africa sub-region.

Find out more at Connecting West Africa -Toyin Oloniteru will be speaking on Day 2 at 10:30 on "The role of Governments and Regulators". Register here.

Shameless self-promotion...

Not our usual content today, but a bit of light relief.  We hope you'll enjoy viewing it as a respite from your day and give you a flavour of our world-beating telecoms, media & ICT events in action... Show-casing our unique offering of peerless networking, incisive and interactive agendas and our dazzling event experiences ...

Informa Telecoms & Media - why choose us ... from Louisa Rogers on Vimeo.

The annual EurasiaCom event closed today on a high note with lively debates, great discussions and insightful opportunities

The annual EurasiaCom event closed today in Istanbul after two days of lively debates on the future of the telecoms and digital sector in the region.

After a first day focused on operator strategies, LTE and the Internet of Things, the second day looked at cost-efficiency, how to monetise content & apps services and mobile money opportunities. The discussions gave a very insightful overview of the major opportunities and challenges faced by operators in the region: growing profitability while investing in more powerful networks and facing renewed competition from OTT providers.

The event was hosted by operator Turkcell and sponsored by Mahindra Comviva. The speaker line-up gave a broad representation of the region's most dynamic companies, from large operators in developed markets to smaller players in emerging ones. Companies represented on the programme included operators Turk Telekom, MTS, Bakcell, Azqtel, TTNET, Azerfon, Mobitel, Deutsche Telekom, Mynet, Play Mobile, as well as regulators and vendors.

"EurasiaCom provides a great opportunity for very different operators and service providers to network, to share experiences,  and ultimately deliver better services to the end-users" says Julie Rey, Research Director at organisers Informa Telecoms & Media.

EurasiaCom is part of the Com World Series, delivering high-level strategic events to key emerging markets. The next event, East Africa Com will take place in Kenya in May. 


Have a look at what a few people had to say about EurasiaCom 2014:

“Professionally organized, effective usage of time, highly international audience, efficient networking possibilities. The sessions were very informative, with a great range of speakers."

Murad Onol

Protel and TUYAD

“Great speed networking sessions at EurasiaCom! Perfect way to meet and discuss our products with Turkish and CIS Mobile Operators. Thanks Aleksandra!”

Erik Van Thielen

VP Business Development

“Fantastic way to network with operators in short timeslots. Would love to engage in it AGAIN!”

M. Dimitrova

Anritsu

“The great speed networking event enabled me to meet many operators I would normally have a hard time hunting down in an event”

Lars Isaksson

Sales Director

Netadmin Systems

“Definitely an effective event to network in the region. We especially liked the “speed networking”; it helps to get to know regional players quite efficiently! Thank you!”

Ramin Ramezani

MoveEuropa Service

“Thank you so much for EurasiaCom. It was very interesting and well organized event. We will definitely come back again!”

SkyTel Mongolia

Visit the website to find out what else happened at EurasiaCom 2014.