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eCommerce looking up?

Exclusive from Silicon Valley: The of Things Era

Cote d’Ivoire’s digital village to be ready in 2017

LG & Mercedes collaborate on self-driving cars...Google may inbue Android into cars Editorial/Business Services Director from the Editor’s Desk Monique Butt (London)

+234.808.667.5246 (SMS, only) Editor-at-Large Desmond Davies (London)

Managing Editor Olubayo Abiodun

Editor Africa: The eCommerce Clifford Agugoesi

Special Projects Editor/Business Manager Era Unfolds Chimezie Ndubisi

Graphic/Production ECOMMERCE is assuming prominence in Africa now, 2015? What is Lagos State in Nigeria doing to beef up Abraham Okitiekpe just as it has been in other parts of the world. This impor- security in its jurisdiction? When would the Douala and Graphic Editor tance has been down to investment-friendly policies by Yaoundé Internet exchange points in Cameroon be com- Stefan Dzhestanov (London) African governments and a growing population of young, pleted? When would the $56 million Cote d’Ivoire digital Advertising Sales Executives upwardly mobile and innovative people who love to live, village be completed? Pan to .COM and read Nwanneka A. Okeke (Lagos) work, and play by merely pressing a few buttons on their about these developments in full. Oge Petra Okafor (Lagos) devices, and bringing the world closer to them. For the status of the digitalisation scheme in Botswana Jane Nwafor-Ikwueto (Abuja) Analysts believe that it is the geography that holds and Kenya, the nexus between digitalisation and eCom- Admin. Assistant the future for the growth of eCommerce. That future is merce and the impact of the Al Yah 3 Satellite on Pay TV Joy I. Etim gradually crystallizing, going by developments in many service in Africa, flip through the pages of Digital Broad- Columnist an Africa economy. Frost & Sullivan projects the eCom- casting. The new Secretary-General at the International Sophie Papassawa merce market in Africa will be worth $50 billion by 2018, Telecommunications Union (ITU), Houlin Zhao, talks Chairman, Board of Directors compared to $8 billion in 2013. Currently, eCommerce to Olubayo Abiodun about Africa’s ICT prowess in Exec- Hon. Uche L. Uche Okonkwo-Okom businesses of various persuasions and sizes are sprouting utive Forum. Olubayo Abiodun’s article on the Nigerian Published by and investment money is flowing into the sector. Many Postal Service (NIPOST’s) potential impact on eCom- Telecom & IT Business Ltd. have said it is a good thing that eCommerce players from merce in the country is the subject of Discourse. Our the continent have joined the race to appropriate a fair guest in Online Scope, David King, argues trusted data LONDON 55 Grasmere Point Old Kent Road share of the global $1.4 trillion eCommerce market. Our will either make or break telecom firms and point the way London S.E. 15 1DU Big Issue, eCommerce looking up?, examines this grow- to their profitability or failure in 2015. +44 7957 285 448, 7501 947 994 ing trend. In Perspectives, the quartet of Riad Hartani, Frank LAGOS There is good news coming from CEC Liquid Tele- Rayal, Ananda Sen Gupta and Rolf Lumpe provide a 11, Ojulowo-Imoshe Street com, the World Bank, Cell C, MainOne and Tigo around compelling analysis on the most significant trends and Off Oduyemi Street, Anifowoshe, Ikeja, Lagos, Nigeria. the improvements to connectivity following focused in- considerations likely to shape the emerging services and Tel: +234(1)7301965, 8177444034, 8035591251 vestments on infrastructure. Migrate to Telecom & IT business models and how these impact the African eco- Money and read the stories in full. With the exception of system. Their article is exclusive to us. In Digital Cars, LG ABUJA Tel: +234 8112834494 the scorecard for mobile money in Kenya, partnerships and Mercedes are synergizing on auto-driven cars even as between and among players in the cashlite space domi- Google plans building Android directly into cars. HOUSTON, TEXAS nate stories in Cash-less World. Wireless World has two Now, in order to make our feedback mechanism more EMPIN-Empowerment Plus Institute 9888 Bissonnet Street, Suite 560, Houston, interesting stories: Africa’s first commercial “white space’ robust, we are glad to inform you that your letters can now TX 77036, USA network goes live in Ghana. Nigeria’s tele-density is ap- be published under 2 Way Com, created for this purpose. +1(713)974-6636(0), (713)773-2553 proaching the 100 per cent threshold. We bring you a Your straight-to-the point contributions may be on pre- Subscription/Advert Hotlines cross-section of some of the personal and vious stories published and or trending industry issues. tablets that were on parade at this year’s CES, in Products Letters must not be more than 400 words. Always read +44 7501 947 994; +234 701 112 2222 Review. Chimezie Ndubisi compiled the segments for ICT stories on the go at www.africatelecomit.com. Both +234 805 560 9779, 706 107 2373 , 803 507 4688 your reading. Consumer Scope and Global Scope will return in the Telecom & IT Business Ltd. In Business Central, some of the giant strides of Nigeria’s March edition. E-mail: [email protected], [email protected] Ministry of Communication Technology in nearly four [email protected] years of its existence are captured by Clifford Agugoesi. All Rights Reserved. The News pages, as in editions before, are gems. How Materials published in this magazine are the would information technology in North Africa look in Clifford Agugoesi works and products of Telecom & IT Business Ltd. [email protected] And no part of it shall be reproduced in3 any form [email protected] without the permission of the publishers. Contents Editorial 2 Way Com A Vote for an African Digital Venture Capital Fund

AS African governments finally grasp the impor- trade. Local investment in eCommerce is im- tance of ICT to their countries’ economic devel- perative because with the bulk of funds coming opment, it has become imperative for the players from abroad to invest in the sector, it is inevitable within the local ICT ecosystem to adequately that there would be huge repatriation of funds, support its growth in all ways possible. which would not be good for the continent. This The impressive showing of seven African explains why analysts favour a re-examination of countries on the McKinsey IGDP Index largely the eCommerce model, with a view to making it Africa: A Potential explains why investors and venture capitalists are Afro-centric. bringing huge investments into these countries. We salute the bold steps undertaken by African waiting to be unleashed ITU,Secretary-General,Houlin Zhao In Kenya a $14.5 billion project was launched governments to strengthen the ICT ecosystem last year to build a city to shape African tech busi- in general and eCommerce in particular, such as nesses – something similar to the Silicon Valley the plan by Nigeria’s Ministry of Communication – called the African Silicon Savannah. This city Technology (MOCT) to increase the Technol- is designed to become a hub for outsourcing of ogy Innovation Fund (venture capital fund) from Page 38 BPO operations and general IT support, as well the current $16.2 billion to $50 billion. According as helping to foster growing businesses. to the Minister, Dr. Omobola Johnson, reaching Morocco boasts over 100 companies in the the target of $50 billion will help in creating 35, LG Electronics and country’s Technopark. South Africa is among the 000 additional jobs in the economy. Mercedes-Benz team up for self-driving cars most economically developed nations in Africa Other African governments should follow Ni- Digital Village for Gabon and it is one of the most receptive to foreign in- geria’s example and create digital venture capital vestments. South Africa has IT hubs all along the funds to be available to local technopreneurs Page 50 Western Cape province – among which is the city and ICT hubs in order to sustainably grow the THE Gabonese government has taken delivery well as giving communities access to power and with as little restriction to online content as pos- of Stellenbosch – known as the Silicon Valley of ecosystem. Financial institutions in Africa need to of Africa’s revolutionary internet connectivity - often for the first time. sible, should be a priority for all states”. Digital Village, a cluster of connected health, edu- Digital Villages quickly become multipurpose “Gabon’s vision for socio-economic develop- South Africa. But growth needs to be accelerated modify their SME-lending policies to make bor- Telecom & IT Money 06 cation and administration facilities, fast-tracks the community centres and a hub of communication ment through ICTs made this the ideal site for a as other African countries are steaming ahead rowing more accessible through friendly interest digital development of underserved communi- and development in communities where they are pilot Digital Village in the region,” said Tshenye. with investment in the IT sector. Discourse regimes. 18 ties. rolled out. The Gabonese government believes such Only recently, the president of Ghana prom- The time is ripe for the African Union to estab- Wireless World 20 According to IT News Online, the Gabonese The solar powered internet schools revolution- projects will have a significant impact on the ised to build an IT city near Accra with a total in- lish an Africa-wide digital venture capital fund, government, currently seeking to harness ICTs ise students’ learning and become community communities they serve. Not only do they fa- vestment of about $5.2 billion. The plans involve which countries could easily access. The African Product Review 22 for socio-economic development across the internet centres and e-government access points cilitate instant power and connectivity to isolated building a tower which aims to be the tallest in Development Bank (AfDB) and other stakehold- Business Central 24 country, has shown keen interest in the installa- after school hours. Entrepreneurs are able to use communities, they also allow for the delivery of e- Africa. ers should buy into this idea so that the expansion tion. Government officials constantly reviewed the admin facilities to gather information and government services and empower communities These projects serve to develop a robust eco- of the technopreneur base on the continent is News 26 progress during the development of the Digital trade more effectively. The health centres double to take charge of their own development. Village. Airtel and Gabon Telecom provided con- as clinics and healthcare education hubs while Samsung’s Digital Villages are part of the system of technopreneurs who will innovate and fast-tracked. Computer.Com 34 nectivity for the project. and the solar powered generators generate addi- company’s far-reaching African citizenship pro- create jobs and make the tech space more exciting Collaboration and co-operation between and Digital Broadcasting The Head of Public Affairs and Corporate Citi- tional power to the Digital Village. Enabling com- gramme, designed to have a positive impact on for existing and prospective investors. A notice- among stakeholders is needed to ensure the right 36 zenship at Samsung Electronics Africa, Ntutule munities’ access to internet connectivity has an the lives of five million people by the end of this able drawback to the growth of the eCommerce policy, legal and regulatory frameworks for the Executive Forum 38 Tshenye said the Digital Village, pioneered in Af- immediate transformative impact, says Tshenye. year. Digital Villages have also been installed in space in Africa, however, is the lack of appropriate workability of the eCommerce ecosystem, are Consumer Scope 40 rica in 2013, comprised a solar powered genera- This is reflected in a UN report, which states that the Democratic Republic of Congo, Ghana, Ni- skills and requisite capital to help raise innovation put in place. tor, solar powered internet school, a health centre, the internet can play a key role in “mobilising the geria, Tanzania, South Africa and Sudan. Addi- from abstract to reality. Africa cannot eliminate capital flight due to Digital Cars 42 a tele-medical centre and administration centre. population to call for justice, equality, accountabil- tional Digital Villages will be installed in Ethiopia, This is why Africa should get its act together to eCommerce, but it can help itself by putting ap- These facilities meet the most critical health and ity and better respect for human rights. As such, Kenya and Zimbabwe this year. Online Scope 44 take advantage of the $1.4 trillion global eCom- propriate measures in place to mobilise essential education needs of underserved communities, as facilitating access to the internet for all individuals, - http://allafrica.com merce market. Currently, advanced economies funds needed for its development from haemor- Perspectives 46 are mainly benefiting from the growing online rhaging. Cashless World 50 4 Africa Telecom & IT | February ‘15 5 Benin’s ACE connection to be completed in March THE World Bank has given an update on the ex- (led by France’s Orange) is being managed via a pected timetable for the Republic of Benin to be local special purpose vehicle (SPV) named Benin CEC Liquid Telecom expands fibre network in Zambia connected to the Africa Coast to Europe (ACE) ACE GIE, a joint venture which includes local high speed international submarine cable, which mobile operators and internet service providers CEC Liquid Telecom Zambia last month an- with The Liquid Telecom Group’s fibre network is currently in its second-phase rollout of connec- (ISPs). The World Bank’s latest report says that nounced that it is building a new fibre link be- in Zimbabwe providing the company with its tivity to additional countries on Africa’s Atlantic the operating team at BENIN ACE GIE now has tween Lusaka and Victoria Falls in Livingstone third route into and out of Zambia. International coast. The Bank stated that a technical team from three appointed permanent staff and eight cable that will provide both retail and wholesale cus- access is through the multi-award-winning pan- Alcatel-Lucent – the consortium cable’s main landing station technicians. tomers with the most reliable, high-speed broad- African fibre and satellite networks of The Liquid technology partner – deployed equipment in the It adds that the draft licence for operating access band connectivity in Southern Zambia. The esti- Telecom Group, which connect to five different transmission room of the Cotonou (Benin) cable to the ACE cable via BENIN ACE GIE is current- mated cost for the turnkey 500km fibre link build sea cables - WACS, EASSY, SEACOM, SAT3 landing station in late-December 2014, while the ly under review within the various legal depart- and terminal equipment is $5 million. The new and TEAMs. CEC Liquid Telecom provides IP cable laying ship is scheduled to reach Cotonou ments of the SPV members, as questions have on 24 February 2015, and Benin will be connect- been raised about legal status: the current legal link will start in Lusaka, transiting through eight Transit, MPLS, backhaul, disaster recovery and President of the southern circuit towns. data protection services to a wide variety of cus- ed to ACE on March 3, quoting Alcatel-Lucent framework for the SPV remains ‘vague’, and this Republic of Benin, CEC Liquid Telecom Zambia is a joint ven- tomers: businesses of all sizes including financial projections. status may be ‘difficult to reconcile with the con- Boni Yayi ture between The Liquid Telecom Group and institutions and tourism-related companies, gov- In parallel, the architecture of the system al- ditions for open and non-discriminatory access Copperbelt Energy Corporation PLC (CEC), a ernment and academic organisations as well as lowing the switching and routing of international [to ACE cable bandwidth], as capacity allocation connectivity in another western African country, Zambian power transmission, distributing and operators and ISPs. traffic between ACE and Benin’s sole existing sub- to new entrants could pose problems.’ The report Guinea, the World Bank added: ‘In order to build generating company. Its fibre network – spanning Andrew Kapula, CEC Liquid Telecom Zam- marine cable link (to the SAT-3/WASC system), continued that once the cable is operational, the on the Guinean experience, the project team will more than 5,000km – is the first fully-redundant bia Managing Director, said: “The Southern part is currently being designed by an international legal issues will be further examined to identify travel to Conakry in the second quarter of 2015 network in Zambia, providing SLAs at a level of Zambia, along the economic zone from Lusaka consultant. the ‘most adequate legal status for the SPV’. to meet and exchange with their Guinean coun- not previously experienced in the country. The via transit towns to Livingstone, has lagged behind Benin’s involvement in the ACE consortium Referencing the relatively recent launch of ACE terparts.’ Lusaka – Livingstone Victoria Falls link will pro- in terms of access to quality ICT services. Our Africa as possible.” Following completion of the vide additional capacity, increased redundancy new fibre link will provide much needed capacity Lusaka – Livingstone Victoria Falls link, expected and route diversity and will cement CEC Liquid in the area. We are investing heavily in Zambia as by June 2015, CEC Liquid Telecom Zambia will Cell C plans to invest ZAR2.4bn MainOne commissions Telecom Zambia’s position as the country’s most part of our goal to build Africa’s digital future. We continue its build to the border towns of Kazun- reliable and consistent broadband provider. believe in the power of connectivity to transform gula and Sesheke to link with Namibia and Bot- in 2015 upgrades N7b Tier III data centre At Victoria Falls, the new link will interconnect lives and our goal is to connect as many people in swana. SOUTH African wireless operator Cell C is further reduce the MTR tariffs, including “all cor- MAINONE, Nigeria’s leading provider of innovative telecom planning to spend ZAR2.4 billion in upgrading its respondence between ICASA and the network services and network solutions for businesses in West Africa, has mobile network as it prepares for the commercial operators and other parties, ICASA’s meeting commissioned its premier Tier III Lekki Data Centre to address Tigo partners with Ericsson to improve network quality launch of its Long Term Evolution (LTE). CEO minutes, reports from ICASA’s experts, presenta- Jose dos Santos disclosed that the operator, which tions and other documentation that shows what the growing demand for colocation, cloud and disaster recov- ery services in the sub-region. It said the purpose built facility TIGO Ghana has entered into a partnership and improved efficiency. Tigo Ghana is going to completed a Radio Access Network (RAN) up- process ICASA followed and what information it designed to international TIA 942 standards will be managed with communications technology and services leverage on their expertise to offer our custom- grade project in Gauteng in December 2014, will relied on in making its decision”. Dos Santos said in a statement: “Once Cell C under a new subsidiary branded as MDX-i. provider Ericsson to help manage and improve ers a reliable and seamless network experience”. introduce similar projects in other metro regions. has received the full record and has studied it in The facility was declared open by Nigeria’s Minister of Com- its network quality and service delivery. The She explained that although like other tel- Under the RAN upgrade, Cell C replaced out- detail together with its legal advisors, economists munications Technology, Dr Omobola Johnson, who said that strategic deal will enable Tigo extend its foot- ecom companies the network is core to their dated network equipment on 1,215 base stations and other experts it will decide what further print nationwide and ensure customer satis- operations, companies like Ericsson are mar- in the Gauteng province, with plans to install an the facility was a notable accomplishment that complemented additional 158 base transceiver stations (BTS) in steps to take in this matter.” Last September Cell faction by delivering superior network quality ket leaders and renowned for telecommunica- initiatives required to further drive the realisation of the coun- early 2015, in order to increase capacity and cov- C expressed its disappointment with the regula- using Ericsson’s state-of-the-art technology and tions services. She believes the partnership will try’s National Broadband Plan. “Availability of world class data erage in the area. tor’s proposed termination rates and accused it experience. give Tigo Ghana the opportunity to focus on centres in Nigeria is critical infrastructure required for the imple- Meanwhile Cell C has lodged an application of making ‘a dramatic U-turn’ by stating that “the In a recent interview with the CEO of Tigo delivering quality experience for its customers mentation of our Broadband initiatives. in the High Court in Johannesburg requesting a massive proposed reduction in asymmetry com- Ghana about its overhead fibre project in Bo- and managing the network. “It will also guar- The accomplishment by MainOne is indeed significant as it review of telecoms regulator Independent Com- pletely eliminates any pro-competitive remedy”. goso in the Western region, Roshi Motman, antee network quality and optimisation which provides an outsourcing and cost effective model to further drive munications Authority of South Africa’s (ICA- The regulator had revealed its final MTRs for touted Ericsson’s capability and capacity saying: is crucial for customer experience” Roshi em- ICT adoption,” she said. SA’s) wholesale mobile termination rate (MTR) the period 1 October 2014 to 30 September “Ericsson is recognised worldwide for their ex- phasised. Ericsson will manage all maintenance MDX-i’s Tier III Lekki Data Centre, the first of many planned regulations, published in September 2014. The 2017, which give smaller players ‘slightly better CEO, tensive experience in advising and supporting and operations of Tigo Ghana’s active network by the company in Nigeria, is a N7 billion investment and has operator is seeking to obtain access to the in- asymmetry’ than the one proposed in its draft Tigo Ghana, telecom operators to secure network quality among others. capacity for 600 racks. Roshi Motman formation that led to the regulator’s decision to regulation from earlier that month.

6 Africa Telecom & IT | February ‘15 7 Cover story eCommerce looking up?

The sheer size of the eCommerce market worldwide is staggering. Estimated at over $1.4 trillion, the advanced economies have taken advantage of this while African and other developing economies are beginning to position themselves to get on the bandwagon. Olubayo Abiodun, Clifford Agugoesi and Chimezie Ndubisi take a look at this trend about putting up a website. Anyone can do that nership between First Bank of Nigeria and PayPal. with the kind of software that is available today. Prior to this partnership, it was virtually impossi- eCommerce is like any other kind of commerce. ble to buy goods online or pay for any service on The only exception being, it is done online as the web if you were in Nigeria. This experienced opposed to being done via a bricks and mortar was the albatross in the e-Commerce ecosystem ‘African countries experiencing growth’ store.” in the country. At onset of e-commerce in Niger- In line with the projection of Rahavendra, the ia, various payment options began to emerge to It’s taken over 50 years for credit and debit cards Konga in Q4 2014, Johnson said: “Of course ‘bricks and mortar’ formal retail environment is make things easier. Unfortunately, what was lack- to be introduced and still not every person has a Black Friday, which was a US phenomenon, has assuming a life of its own in many parts of Africa ing was the one payment method for Nigerians bank account. With all these milestones that have now gone global in terms of sales on a single with the growing penetration of the mobile de- accepted everywhere. However, with the strategic taken place in the evolution of commerce, it goes day.” She noted that Konga recorded an unprec- vices in the mobile ecosystem. For instance, the partnership forged between First Bank of Nigeria to show that how we shop (eCommerce), is still edented 1,444 per cent year-on-year revenue. African Bank of the Year, Guaranty Trust Bank, and PayPal, Nigerians now have an online pay- in its infancy,” Rahavendra told ITNews Africa. “They processed N50 million worth of orders launched The SME MarketHub. This has been ment solution accepted all over the world. Head, Marketing, described as Nigeria’s first e-commerce portal for This partnership is a milestone in PayPal’s Af- The 2014 Mobile Media Consumption report every hour on Black Friday and their website did DHL Express by InMobi, which included data from 14,000 us- not crash. I think that is very important as well,” Small and Medium Scale Enterprises (SMEs). rica growth story, as First Bank customers can sub-Saharan ers across 14 countries, including Nigeria, Kenya Johnson said. “They achieved N600 million in The e-commerce and business directory portal, now pay and get paid globally; in a manner that Africa, Sumesh and South Africa, predicted that 83 per cent of revenue on Black Friday and Saturday. 100, 000 launched on May 31 last year, is part of GTBank’s is seamless, secure and convenient. Why? PayPal Rahavendra consumers planned to conduct mobile com- items processed and 500 per cent more items strategy to empower and support Nigerian SMEs has over 148 million accounts in 26 currencies merce in the next 12 months, up 15 per cent from sold over the two days of Black Friday. So we are and also contribute to the growth and develop- spread over 203 markets around the world; while the current figure. building very robust organisations that have very ment of the Nigerian economy. The portal is de- First Bank is a leading Nigerian commercial bank Nigeria’s Minister of Communications Tech- robust platforms.” signed to enable Nigerian entrepreneurs migrate with over 750 branches across Nigeria with cards nology, Dr Omobola Johnson, would seem to “As technology continues to evolve in the re- their businesses online and take advantage of the accepted in over 200 countries and on millions of the first of its kind in the industry, combining the DG, World Trade have concurred with the findings of this report. spective African countries, so will the levels of on- vast international and local sales opportunities POS terminals and ATMs around the world. Organisation power of social media and e-Commerce. It offers within this space. SME owners will also have ac- The arrival of PayPal in Nigeria allows PayPal to (WTO), While speaking with Africa Telecom and IT line shopping. It is our opinion that many African businesses access to display their goods and serv- Roberto Azevêdo during the ITU Telecom World 2014, she said businesses will start to skip the traditional ‘bricks cess to a wide variety of business tools that will connect Nigerians to merchants from Asia, North ices on the web at no cost to them; retailers and that the changing dynamics in the e-Commerce and mortar’ formal retail environment, and in- enhance profitability as well as a community that America, Europe and beyond. The discrimina- buyers can comment on items displayed as well as ecosystem was one of the things that had contin- stead move straight into online shopping space will allow them forge relationships with other tion against online transactions from Nigeria is have live interactions with merchants on particu- ued to excite her. Citing the specific example of due to the rise in mobile and internet services business owners. now becoming a thing of the past as Nigerians GLOBALLY, the ICT sector has been grow- lar goods and services.” Konga.com, the largest online shopping site in within Africa,” said Rahavendra. The Bank’s Chief Executive Officer, Segun Ag- can finally do online transactions on almost every ing rapidly since 2003, when member states of The CEO of 3AL Limited, Oladapo Okupe, Nigeria, she stated that “this is the kind of thing According to experts, some of the reasons for baje said: “There is no getting away from the fact site because PayPal is a popular global online pay- the World Trade Organisation (WTO) agreed said: “The portal will totally revolutionize retail that is exciting about this industry”. Konga is an the success of eCommerce worldwide include that economic conditions remain challenging for ment platform to deregulate and liberalise telecommunications. business in Nigeria and Africa enabling consum- online company that was launched in July 2012 convenience, lower price and more choice. In small and medium scale enterprises (SMEs) in First Bank has made a paradigm shift from Following the agreement, African governments ers to interact with merchants efficiently and in a with eight staff members and $50,000 investment countries where eCommerce is already well Nigeria. It is however vital that this integral sec- the traditional banking practices with another began putting in place policies that would take secure manner. As a proudly Nigerian initiative, from two venture capital companies. By Q4 2013 developed, the top-performing online product tor of the economy gets all the support it needs partnership with 3AL Limited for a portal to pro- them to the realm of the digital economy. Indeed, 3AL Limited is excited with this opportunity to they had moved to an 11, 000 square-meter ware- categories were digital content and subscriptions, to drive growth and development. E-commerce vide various services including retail, insurance ICT has over the years been contributing a huge assist in the growth and empowerment of busi- house. consumer electronics, event tickets, apparel and is widely acknowledged as a powerful tool for products and e-ticketing solutions. The portal, chunk to the gross domestic products of these nesses and we are proud to have First Bank as “In less than three years of their operations they accessories and computer software. fully enhancing business possibilities as it opens www.3al.com is, according to First Bank, Nigeria’s countries. a strategic partner in empowering Nigerians have improved in customer satisfaction. They are African eCommerce, though, has not yet up a world of businesses to customers and a first social commerce channel which has social One area that many see as a potent force for to grow their businesses, reach their goals and the leaders in the market in customer satisfaction, fully taken on these aspects. Experts noted: world of customers to businesses. The speed, media and e-Commerce capabilities. It has social growth in Africa is eCommerce. The Head of achieve their dreams.” merchandising and innovation. Apart from Lagos “Sadly, most discussion about the development of efficiency and convenience with which transac- media features that enable businesses to interact marketing for DHL Express sub-Saharan Africa, First Bank says, the portal enables businesses operations, they’ve got hubs in South Africa and eCommerce in Africa is too much focused on the tions can be completed are distinct advantages with potential customers while its e-Commerce (SSA), Sumesh Rahavendra, noted last year that set-up their online store, upload their products in China. And again the most exciting thing about eCommerce infrastructure: (terminals, internet that e-commerce has over traditional means of functionality enables online ordering and pay- the continent “offers enormous growth potential and interact with potential consumers. Online them is that they have opened their software engi- access, payment gate, delivery, logistics and trust. transacting business. With the introduction of the ment for goods & services. for e-retailers given that online shopping is in payment is processed by First e-Connect, a robust neering centre,” Johnson said. But before any discussion relating to eCommerce SME Market Hub, GTBank has provided SMEs Akin Fanimokun, Head of Technology and its infancy in the region,” quoting his company’s payment gateway deployed by First Bank which There are100 Konga software engineers in infrastructure, we need to check, like any sound an E-commerce platform that allows small and Services, First Bank, said: “The social commerce Shop the World report, which showed that enables secure payments for goods and services Yaba which is the local Silicon Valley of Nigeria. business plan, what the market is and who the medium business owners create and maintain an portal will be a meeting hub for businesses and emerging markets offered the highest growth po- through the use of all payment card types issued These 100 software engineers are focused on de- customers are that we want to bring online.” online presence and expand their business fron- SMEs who wish to showcase their services online; tential for the eCommerce industry. in the market today as well as enabling online or- veloping software and services that are going to According to analysts, discussing the business tiers to new markets and millions of buyers that shoppers who desire to buy goods at discounted “Globally, it took over 2,000 years for a formal dering of products which will be delivered to the be delivered by Konga model is necessary because “most are confused are online.” prices and individuals who love interacting and monetary system to evolve and over 600 years doorsteps of customers. Testifying to the massive boom enjoyed by about what eCommerce actually means. It is not But the most impactful development in the on- networking with friends and loved ones from all for a formal banking system to be implemented. Taking e-Commerce to a new height, a mem- line business community in Nigeria was the part- locations in Nigeria and globally. The portal is

10 Africa Telecom & IT | February ‘15 11 ber of the Nigerian Stock Exchange (NSE), Afri- cessful eCommerce segment in Africa…” businesses also fuel eCommerce. Competition reported by Forbes, $500million eCommerce Souq.com recently attracted $75 million from nvest Securities Limited, introduced the Afrinves- The report went on: “We can conclude from between and among web designers has reduced platforms so far have emerged in Africa and the South African media giant Naspers, which gave tor.com, a website that allows individual investors above that except the Entertainment segment the price of websites, making them much more Middle East region. Global consulting firm McK- it a valuation at the time of $500 million. Tiger as well as institutional clients to trade Nigerian (online movie and Pay TV) which have Africans affordable now than before. insey estimates African eCommerce sales will Global’s venture-capital arm, led by Lee Fixel and stocks and other investment products online, as customers, the only successful ecommerce in Web businesses in Africa are benefitting from reach $75 billion by 2025. Souq.com and Jumia, Scott Shleifer, is an investor in Souq.com. using their personal computers and other smart Africa are targeting foreign customers. formal and informal sources of financing both in by international standards, are not shallow-pocket Jumia backed by Rocket Internet recently re- devices. “There are now hundreds of other websites forms of foreign direct investment as well as local start-ups. They exhibited guts to get to where they ceived €120 million ($150 million) in funding, Charles Egbunonwo, Managing Director of claiming to bring African retail online. But how direct investment. Banks are reluctant to lend to are. Both of these emerging ecommerce leaders giving it a valuation of €445.0 million or about Afrinvest Securities Limited, said the launch of could they? Most of them don’t make any money SMEs. However, analysts say the bulk of financ- are being bankrolled by smart money from their $550 million. Yuppiechef secured $100 million the online trading platform was a great initiative or are losing money, stated the report. ing is skewed in favour of offshore investors. As respective regions and from the West. investment from Tiger Global. in e-commerce. “Afrinvest has always placed a What are the factors driving eCommerce? The premium on the use of technology as a business head of http://www.kaymu.com.ng/ sites in 16 enabler, and the introduction of Afrinvestor.com countries across Africa, Elias Schulze, said eCom- is to empower clients to take more control of their merce was now one of the key and arguably the 7 African countries with booming investments, supported by sound investment ad- leading enabler for growth within the consumer vice and professional guidance,” he said. sector across in the region. “With Afrinvestor.com, our clients and inves- “We anticipate various adoption rates based tors will not only be able to initiate and execute upon how quickly Internet penetration deep- eCommerce markets trade online; they can also view (and edit) their ens, education levels grow, GDP per capita shifts account information and portfolio performance, and existing retail backbone shifts,” Schulze said. ECOMMERCE is at the epicentre of Africa’s support, as well as helping to foster growing urbanites that do not shy away from making Senior Research Analyst, access a wealth of in-depth equity research as well “Overall, we shouldn’t be surprised if significant Ovum, thriving economy. With internet penetration businesses. purchases online. IT is thriving in Nigeria and, as market data and intelligence on companies, portion of retail, and perhaps the majority in Thecla Mbongue rapidly spreading across the region, this repre- apart from multiple technology hubs, there are key sectors and the broader Nigerian economy, key markets, is captured within e-commerce by sents a huge potential which has hitherto been Morocco: several accelerators in Nigeria to help start-ups The country is growing fast and is well- all from the comfort of their homes or offices.” 2020.” untapped. Indeed, Africa is a burgeoning and and to facilitate IT based businesses. positioned to become Africa’s financial centre. On February 26, 2013, Silicon Africa published Schulze’s forecast is in line with expectations of largely unexplored consumer market. chases, even of items that are not needed. Also, With projects like Casablanca Finance City an article headlined Africa e-commerce: Beyond other investors in the eCommerce sector in Afri- According to McKinsey, consumer indus- South Africa: the cash-less initiative, whose objective, among and Casablanca Technopark, it is not surpris- South Africa Nigeria closely with an iGDP the Hype, by Mawuna Remarque Koutonin, ca, said a senior research analyst at Ovum, Thecla tries in Africa are predicted to grow by over others, is to achieve financial inclusion of citizens, ing that the country’s iGDP is 2.3 per cent. of 1.4 per cent. It is among the most economi- which was an attempt at summarising the state of Mbongue. Ovum’s Digital Africa Survey 2014 $400 million in 2020. embarked upon by many economies on the con- King Mohammed VI of Morocco is on his way cally developed nations in Africa and it is one ecommerce in Africa. The report said: “The oldest reports that 46 per cent of the poll’s respondents Below are the top seven countries in Africa tinent, is providing impetus for the adoption of to realising his dream of making Casablanca of the most receptive. South Africa has IT hubs and most successful African eCommerce com- believe that eCommerce will be the most impor- where iGDP is significant and why it is in the eCommerce. the financial hub of Africa and attracting in- all along the Western Cape province – among pany is eShopAfrica.com, from Ghana, started in tant digital service generating increased revenue spotlight for investors and venture capitalists. Peter Karaszi argued in a recent article: “The vestment to help companies tap into the huge which is the city of Stellenbosch is known as 2001, selling arts and crafts from Ghana, Ethiopia, for African industry over the next five years. “The eCommerce boom is limited by the fact that con- Senegal: Franco-African market. There are over 100 the Silicon Valley of South Africa – but growth Zimbabwe and Mali to consumers in USA, and increased level of data connectivity, mobile finan- sumers are interested in physical contact with the This country leads the pack in Africa with an companies in the Technopark already. needs to be accelerated as other African coun- UK. Products are made in Africa, and sold to cial services and usage of smartphones will boost products on offer. eCommerce winners will be iGDP of 3.3 per cent. Initiatives like the Jjiguene tries are steaming ahead with investment into fat-wallet middle class consumers in developed traffic on e-commerce platforms,” Mbongue said. Mozambique: those retailers who deliver a compelling shopping Tech Hub – Jjiguene means ‘woman’ in Wolof the IT sector. world, who can pay with credit card, Paypal and In February last year, www.siliconafrica.com Mozambique radar is one of the top three experience in all channels – and particularly for – are designed by women for women. It aims to can access Internet at any time. reported: “The African Development Bank says: African countries with rapid growth. Recent Ghana: products with ‘physical connection. Personalisa- help women enter the world of IT driven busi- “The second most successful African eCom- 34 per cent or 313 million Africans are now mid- collaborations with China have further en- Though last on the list here, with an iGDP tion will be another strong trend in 2015. nesses. The potential for this initiative has been merce company is Skinny laMinx, from South dle class (living on $2-$20 a day). Most of this so hanced the country’s agricultural industry and, of 1.1 per cent, Ghana is definitely not the “Websites, web shops, e-mailings and other recognised by a number of investors including Africa, which sells highly designed crafts to con- called $2-a-day-middle-class is located in North in addition to this, real estate and hospitality least. Only recently, the government promised forms of are becoming more IT giant . sumers abroad. 80 per cent of Skinny la Minx Africa. Tunisia ranks top with 45.6 per cent of its opportunities are abundant. It is among the top to build an IT city near Accra with a total in- targeted. The presentation and the offering will sales come from USA and Australia. To accelerate population falling into the middle class category, Kenya: five economies in Africa which have made sig- vestment of about $5.2 billion. Plans involve become more designed for individual customer their growth, they moved their shop to etsy.com, followed by Gabon (37.8 per cent), Egypt (31.6 Close on the heels of Senegal is Kenya, with nificant progress in the IT sector. Mozambique building a tower which aims to be the tallest in preferences, behaviours and purchasing power - and recently opened an offline boutique in central per cent), Botswana (29.3 per cent) and Algeria an iGDP of 2.9 per cent. The previous presi- now has an iGDP of 1.6 per cent and this looks Africa. Apart from the top seven above, Egypt, all in order to maximize sales, profit margins and Cape Town, at 201 Bree Street. (27.3 per cent). At the bottom end, Liberia is the dent of Kenya launched a $14.5 billion project set to increase as IT underpins many other ar- Tanzania and Cameroon are additional coun- customer satisfaction. Indeed a very interesting “The third most successful African eCommerce country with the smallest middle class – only 1.9 earlier this year to build a city to shape African eas of growth in the country. tries in which businesses are thriving and grow- year to look forward to for everyone in the eCom- is again a craft company, Rwanda Partners, which per cent of its total population.” tech businesses – something similar to the ing. Africa is the second fastest growing region merce industry.” Nigeria: sell hand-made baskets and jewelleries from The real African middle class’ monthly revenue Silicon Valley; called the African Silicon Savan- in the world and it is attracting investors across A preponderance of young, creative and pas- The country has an iGDP of 1.5 per cent and Rwanda in the USA market. I love Rwanda bas- is about $800 a month. The reasoning is that with nah. This city is designed to become a hub for multiple sectors. sionate entrepreneurs, who are deploying all man- is also the eCommerce hub of Africa, with sites ket, and the quality of their products. Obviously, more money in the pockets of the middle class outsourcing of BPO operations and general IT -http://ventureburn.com ner of social media to air their propositions for especially popular among the fashion conscious the handmade and crafts segment is the most suc- comes a corresponding appetite to make pur-

12 Africa Telecom & IT | February ‘15 13 Power of vision The African Version of Amazon ACCORDING to Internet World Stats, Africa was home to 167 million internet users in June 2013, representing a 15.6 per cent penetration of ‘Will Emerge From Nigeria’ the continent’s total population. An average world penetration rate of around 34 per cent means that Africa’s internet usage has far from reached its ze- WHEN Amazon CEO Jeff Bezos announced the shouldn’t work. But it does, and ecommerce com- nith. company’s plans for 30-minute delivery drones panies are proliferating. Some even guarantee de- The African heat is now also providing an at- with Amazon Prime Air in December, it became livery of products across the city within 24 hours. tractive environment for incubators. Kenya is one clear that ecommerce has exciting days ahead. “By 2030, one in every six Africans will be Nige- of the African leaders in this field with incubators But Amazon is not the only company ramping rians, and its economy will have the largest GDP and seed funds salivating at the country’s high up digital business, nor is the US the only region on the continent,” says managing director of Af- mobile penetration rate (around 74 for every in the game. In fact, Africa may have already sto- rica for global IT consulting firm ThoughtWorks, 100 people). In addition, mobile subscriptions in len a march on personal delivery from the air, and Betty Enyonam Kumahor. “But understanding Kenya grew 16 per cent between 2011 and 2012, Nigeria — specifically the rapidly growing city of how to launch an ecommerce business in Nigeria with 99 per cent of Internet subscriptions being Co-founder, Lagos — may produce the next great ecommerce requires an understanding of the ecosystem and on the mobile. JUMIA, company. country, and other aspects such as the cost of gen- The four players to watch are Nailab, Savanna Jeremy Hodara Africa’s tech space, which has been defined and erators and the relative dearth of the talent pool.” Fund, Growth Hub and 88mph – all of which accelerated by the mobile phone, is undoubtedly But eCommerce start-ups in Lagos, such as on- have sprung up within the last few years. NaiLab growing as investors scramble toward the conti- line grocery business Gloo.ng, are facing logistic offers an accelerator for early-stage start-ups, nent. Various African countries have leapfrogged problems beyond buying generators. There’s also which lasts from three to 12 months. The aim is fixed-line Internet because of the ubiquity of the problems of trying to get through Lagos’ terri- to nurture innovation within the tech industry by This is the first time in the recent history of wisely decided to root his venture’s headquarters mobile phones and their networks, and entrepre- ble traffic and finding addresses that often cannot CEO, Amazon, Africa that growth is not due to raw materials on European soil. With Berlin as the base for the be found on a map, for example. offering bespoke business coaching and support neurs will likely tackle transportation in a similar Jeff Bezos for successful applicants. The template for the and investors see a string middle class emerging. incubator there is the advantage of working with way. Why build roads to inaccessible places when Gloo.ng’s founder, Dr. Olumide Olusanya, is entrepreneurship programme seems not unlike The other thing that is important for investors is high-level talent. This gives the necessary confi- the air is a better and increasingly cheaper op- positioning the company as Nigeria’s equivalent schemes currently running closer to home, such that when they look at Africa is that there are few dence and the legal set-up to run these kinds of tion? of Ocado, the very successful UK delivery arm as Berlin’s Start-up Academy. strong competitors in the market. businesses. A current initiative that addresses African of Waitrose supermarket. Olusanya gave up prac- come repeat shoppers with us is proof that we are South Africa, the continent’s second largest Even the smaller fish of the technological ocean “There is very much a demand from the grow- drone delivery is the Flying Donkey Challenge, ticing medicine to become an entrepreneur, and on to something huge,” Olusanya says. economy, has distinguished itself as an innova- have shown interest. Start-up Partners Africa, a ing middle class to have quality products both in a 24-hour race around Mount Kenya where Afri- Gloo.ng has expanded rapidly in its short history. Ecommerce innovation isn’t limited to Nigeria, tion leader. It has even attracted the eyes of tech- new Berlin-based incubator, has set its business beauty and in fashion that is currently not met can companies have to deliver and collect 20-kilo It has quadrupled in size in the past year, and in but entrepreneurs around the world are closely nology giant Google, which has teamed up with sonar solely to Africa. The incubator’s CEO is in the Nigerian market or in many other African payloads as they go. The winner receives a prize of January moved to a 20,000 square feet fulfilment watching what is happening there. One such UK African tech accelerator programme 88mph. a Rocket alumnus, and former co-founder of countries,” Stiegeler says. “That means that either more than $1 million. centre in the city. entrepreneur is Ivan Mazour, CEO of Ometria, a Through a Google for Entrepreneurs partnership, the online fashion retail store, Sabunta, before they buy things abroad or have other people ship But while these companies face huge challenges “We believe the timing of starting our company software company providing an ecommerce in- 88mph and Google provide start-ups enrolled in it merged with Kasuwa and rebranded itself as the product in, which is obviously very time-con- in circumnavigating Mount Kenya in East Africa, has been God-sent,” he says. “Brick-and-mortar telligence platform to retailers. the 12-week programme with investment, access Rocket Internet’s Jumia in Nigeria, Leonard Stie- suming, expensive and tedious.” it’s actually in Nigeria, West Africa, where today’s supermarket shopping, which is exceedingly “Ecommerce is the next frontier for emerging to a vast network of mentors and local businesses, gler. Whereas in most other markets eCommerce challenges are almost unfathomable in scope — painful on this side of the world, is not yet cultur- markets — an unstoppable wave in the evolution space at their tech hubs, and a featured spot dur- Stiegler and Start-up Partners Africa are the is replacing a pre-existing sophisticated network and, yet, also where future “African Amazons” are ally ingrained, and we will leapfrog the curve of of retail,” he says. “The MINT countries [Mexico, ing Demo Day, a platform to pitch to investors. brains behind the new retailer Sunglasses, which of physical retailers, an underdeveloped logisti- likely to emerge from. building supermarket brick-and-mortar, as you Indonesia, Nigeria and Turkey] are the future, and Berlin-based incubators have also been eyeing launched in Nigeria less than three months before cal framework has prevented physical retail stores Lagos isn’t Nigeria’s capital city, but it is by far have in the developed climes where this is an em- Nigeria is the most interesting of this new group. the continent for market opportunities. The usual the incubator got off the ground. “We tested and from prospering in many African countries. the biggest in the country. Depending on which bedded culture.” As an economy, it’s projected to go from the 39th suspect, Rocket Internet, has been one of the first concept-proofed two models in the African mar- “Players are not coming into this market fast statistics you believe, the city’s population is be- According to Olusanya, the two biggest brick- largest GDP to 13th in the next two decades.” German incubators to venture to Africa. With a ket, the first of which was fashion and beauty and enough based on various reasons, one of which is tween 17 and 21 million, with 30,000 people ar- and-mortar players have a combined market More importantly, Mazour adds, Nigeria is commercial presence in Egypt, Morocco, Cote the second was sunglasses,” Stiegler says. “We are that real estate is very expensive. Secondly, to have riving every week from across Africa. share of 0.9 per cent, with fewer than 13 outlets already home to many successful ecommerce gi- d’Ivoire, Ghana, Nigeria, Kenya and South Africa, now looking at other models and other markets, the same kind of reach that an online company Delivery in Lagos is utter chaos. There isn’t a vi- in a nation of 170 million people — a significant ants, including Konga and Jumia, two Nigerian Rocket has shown no timidity in its expansionist specifically Kenya now.” can have in terms of potential customers, it would able postal service in the city — or the country, portion of who are migrating to the middle class. ecommerce companies that have raised $63.5 ambitions. But with his feet firmly on the ground, Stiegeler be very expensive for offline retailers.” for that matter — and by all standards the city just “The fact that 65 per cent of first-time users be- million and $61 million respectively from global

14 Africa Telecom & IT | February ‘15 15 investors. These two companies provide the in- As confidence grows, this form of buying and of major players launch online stores. As CMO at Africa Internet Accelerator, (a spiration for African entrepreneurs, such as Gloo. selling will increase, but for many of these ecom- Chief executive officer (CEO) of Konga.com, start-up incubator) Remo Giovanni Abbondan- ng’s Olusanya, as well as other more niche ecom- merce companies, the biggest challenge is logis- which itself is partly funded by Naspers, Sim Sha- dolo explains in an interview, there are many op- merce companies to create Africa’s first retail hub tics and getting products to clients on time.” gaya, said there is still a long way to go to make portunities in the eCommerce space in Africa. or cluster in Lagos. So, while Bezos dreams of drones and talks hot eCommerce a truly profitable business on the However there are also a few challenges that need “[Ometria was] founded with a focus on bridg- air, and while some African companies clamber to continent. to be taken into account. “First of all, it is very hard ing the gap between the knowledge that exists in join the race to Mount Kenya for the Flying Don- “The biggest challenge to the growth of e- to find people with the right skills and expertise developed markets. As we continue to expand key Challenge, it’s Nigerian ecommerce start-ups commerce in Africa is the lack of proper operat- necessary to work in the online space, in particu- globally, we are looking to Nigeria as a future that are doing it right now. ing systems to coordinate the vast resources the lar for specific positions such as IT, Business Intel- ecommerce leader in the EMEA [Europe, Middle Moreover, they are finding quick success in one continent has to offer,” he said. “For example lack ligence, Online Marketing and UX. East and Africa] region,” Mazour says. of the most competitive cities in the world. We’ll of robust and scalable logistics infrastructure, par- Second, the internet penetration – even though There’s also a wealth of exciting start-ups such see drones over Lagos sooner than we think and ticularly small-parcel and final mile to consumer growing it’s still very low, as well as data in Africa as QSR Consult, a company that is developing probably a lot sooner than the cities in the West. – both of which are essential prerequisites for any are still relative expensive compare to other coun- tries in the world,” Abbondandolo said. three new “quick service” restaurants Grubs, Spice Moves by African governments to set up ven- retail eCommerce business.” Shagaya said Konga.com was acting to over- “Third, the typical eCommerce challenges are Bowl and Kobis in Nigeria. The company’s CEO, ture capital for tech start-ups in their jurisdic- come these issues itself, not least by building even more relevant in Africa. Users are afraid to Tunde Ogunrinde spent 17 years at Burger King tions serve to brighten prospects for develop- its own delivery fleet to overcome the logistics shop online as they don’t trust the websites easily, UK and returned to Nigeria in 2009. ments in the tech space and ecommerce sure will problems that hindered its growth. The main way as well as they don’t feel safe to do an electronic “There is a greater comfort with shopping on- benefit. Nigeria, for instance, has raised about to help grow the sector, he said, was to focus on transaction e.g. with credit card prior the delivery line with many Nigerians nowadays due to pric- $16.2million for this purpose, but the country’s delivering exceptional customer service. of the goods. CMO, Africa Internet Accelerator, ing and non-payment until goods are delivered Minister of Communication Technology, Dr. “This is what would make customers come “Moreover, access to products can also be chal- Remo Giovanni at the door of client,” Ogunrinde says. “It seems Omobola Johnson thinks the fund is inadequate Abbondandolo CEO, Ometria, back the next time they need to purchase an item, lenging in countries where there is insufficient that Jumia [and] Konga are leading the market in and has her mind fixed on raising this amount to Ivan Mazour we must show how e-commerce is value added product selection as the import duties are very terms of brand awareness and potential volumes. $50million. for them,” he said. “For us at Konga, growth came high. as in Europe – addresses are not always well de- on the back of us listening to the customer.” Last, but not least, the lack of infrastructure has fined”, states Stiegeler, referring to his incubator’s Companies in in eCommerce in Africa are ad- had an impact on business operations, such as lo- foray into the online optical industry. “Door-to vised to focus as much as they can on obtaining gistics and delivery as ensuring timely delivery in door delivery is more challenging here than it is in Challenges of eCommerce in Africa new customers and investing in new markets to every area it’s not easy, considering the ,distribu- Europe. So we create our own expertise and build make themselves more profitable later on. This tion of the population, which in Africa is concen- our own fleet.” explains why Jumia has thrown so much money trated in a few cities/countries” he added. Even before a product is delivered, there are ANALYSTS say the truth of booming eCom- e-commerce platform Takealot had a 2014 that at expanding across Africa, and why Takealot Setting up businesses on relatively uncharted additional complexities in payment during the merce on the continent is more nuanced. Al- pretty much sums up the state of the market thus and Kalahari have decided that together they are territory is not without difficulties. A common online ordering process. Credit card and bank though it is undoubtedly a long-term opportunity far. Despite raising $100 million in funding from stronger in terms of the market share they con- problem is sourcing top-notch talent with the penetration is lower in many African countries and investors are quick to notice this, currently Tiger Global, the company was also forced to ad- trol. right skills. “It is no surprise that employees on compared to Europe or the US; many people pre- the market faces severe limitations. mit defeat in its efforts to win market share alone But some investors are put off by the need for the ground in Africa might not be as technically fer to or can only pay with cash. Start-up Partners The primary issue is that the market is just too and merge with its biggest rival, Kalahari,” writes deep pockets and long-term thinking. Founding skilled as equivalents in America simply because Africa, as well as Rocket Internet, has avoided this small. Only 26.5 per cent of Africa’s over one bil- http://thenextweb.com partner of South African investment firm Silver- so far the online market is still very nascent,” ac- problem by offering the option of cash-on-deliv- lion people are connected to the internet, with a It went on: “The move was driven by the fact tree Capital Paul Cook said his company had knowledges Stiegeler. “But we train local employ- ery. recent UN report saying eight of the 10 countries that, without scale, South African e-tailers simply invested in many e-commerce businesses but ees on the ground with the help of experienced On the whole, monetary reward is never the with the lowest levels of internet availability in the can’t compete successfully against the local brick wished it had not. “It is definitely the way that retail professionals who have been in the business for sole motive for entrepreneurs in emerging econo- world are in sub-Saharan Africa. and mortar retailers and foreign companies such will be moving, but it is not necessarily the most years.” mies. The excitement about the general growth Those that are online approach shopping on as Amazon and Alibaba.” attractive investment area,” Cook said, saying so While some skills may be absent in the local prospects are palpable, creeping into every as- the internet with trepidation. In South Africa, Naspers, which owns Kalahari, has itself had many companies were throwing around so much workforce, entrepreneurial spirit is certainly not pect of everyday life “It’s very exciting to be here,” ecommerce accounts for only 1.3 per cent of the a tough year, realising the need to remove some money that it was difficult to go head-to-head. in short supply. Rocket Internet said that the Stiegeler says. “There are a lot of things happening total consumer goods market, compared to 14 per competition from the market when it closed Though Cook advises focusing on niche company found in Africa that everywhere it went on the ground in terms of the developing eCom- cent in the US and UK, among other economies. eCommerce sites, SACamera, 5rooms, Kinderelo, eCommerce in order to build a successful busi- go it saw “unbelievable talent who are just waiting merce environment. You feel that kind of excite- Africans are still generally scared of buying online, Style 36 and 5Ounces in February, 2014. ness without the need for billions of dollars, this for an opportunity to become entrepreneurs with ment. You feel it in everyday interactions. I en- and are more at home with the use of cash. It is not just South Africa where companies are advice is being disregarded by the likes of Jumia young companies in the online world and not just counter people from all walks of life, whether it is “In spite of the well-established long-term op- facing these issues. Given the size of its popula- and Naspers. For the time being, Africa’s eCom- in the big banks or the government”. somebody from Rocket Internet setting up a food portunities, African ecommerce has been forced tion and growing middle class, Nigeria is gener- merce giants are involved in an expensive land- Emerging businesses also need to direct a lot delivery business, to a plumber who is building a CEO, to adapt to this current climate. The major exam- ally deemed as one of the most lucrative eCom- Konga.com, , and must hope the projections of long-term of attention to the logistical side of operations. business here welcoming the many international ple of this again comes from South Africa, where merce markets in Africa, and has seen a number Sim Shagaya riches are correct. “There is not a well-established delivery setup companies coming into the country.”

16 Africa Telecom & IT | February ‘15 17 goSwiff’s mPOS approved for Nigerian banks

the goSwiff mPOS platform, chosen already by POS due to high cost, unreliable connectivity and PayPal, Microsoft partner on mobile payments over 50 banks globally, and goSwiff PINPad card low staff usage. With goSwiff mPOS solution and reader, specifically designed for harsh mobile en- expertise on successful roll outs in the emerging Devices including the Surface Pro 3 tablet and These include Canvas and iConnectPOS who vironments. markets, these issues are solved,” said VP Business Lumia 830 and 635 smartphones, which all run aim to introduce new software in the coming “Certification of the goSwiff solution for Ni- Development for Sub-Saharan Africa at goSwiff Windows 8.1, will soon support the PayPal debit months. Previously, the payments firm ran a trial geria means that banks can now help local entre- Rebecca Ayoola. “NIBSS independent certifica- and credit card reader. for iOS and Android SDKs, which will officially preneurs to start accepting card payments with tion confirms that our mPOS solution works in Microsoft will offer a complete package (Sur- launch later this month. goSwiff’s secure and fully certified platform. With Nigeria. We are proud to have been admitted the face tablet, PayPal Here app and card reader and Finally, and separate from its Microsoft alliance, goSwiff’s global expertise in mobile payments, certificate for our platform.” POS hardware) through its own stores later this PayPal will add EMV (chip and PIN) capability banks in Nigeria will be able to roll out a safe and “We have implemented mobile payment solu- year. to its card reader in the US later this year, work- PayPal Here, which was launched in 2012, al- ing with Android, iOS and Windows devices. The reliable solution enabling merchants to accept tions for banks and MNOs across the globe, cur- ready supports iOS and Android. US is a relatively later adopter of EMV technol- card payments”, said CEO of goSwiff, Simone Ra- rently in 25 countries. goSwiff has boosted elec- Last month also saw the unveiling of a rival mo- ogy, having previously stuck with magnetic stripe nucci Brandimarte. “Most banks cannot afford to tronic payments in the emerging markets with bile point-of-sale line-up between Samsung and technology for a long time. PayPal Here already take the risk with unproven solutions, so we are great results: Merchants have increased their busi- Verifone based on Android. PayPal and Micro- works with EMV cards in the UK and Australia. thrilled that goSwiff can help to accelerate the ex- ness being able to accept card payments; banks soft’s pitch is more at small businesses, while the PayPal says that the new reader, due later this pansion of card acceptance in Nigeria.” have generated more revenues with new services; PAYPAL is updating its card reader – called Pay- rival partnership is more intent on hitting large year, will allow EMV and contactless transactions The population of Nigeria is over 178 million, and governments appreciate the increased visibil- Pal Here – to work for the first time with devices retailers. via Bluetooth and will support “any chip card, with 34 million cards in circulation. mPOS helps ity in the economy”, said Chief Strategy Officer, running Windows, as part of a mobile point-of- A PayPal Here SDK is already available for se- magnetic stripe card, or contactless payment increase electronic transactions and reduce the goSwiff, Erik Holst-Roness. sale alliance with Microsoft. lect Windows developers to embed in their apps. form, including mobile wallets.” dependence on cash, whilst extending the reach CEO of TITIS Integrated Services Limited, the of the financial services infrastructure also to the Support Services Partner of goSwiff for Nigeria, GOSWIFF, a global mobile commerce and unbanked due to the mobile nature of the solu- Lare Ayoola said that the policy of the Federal WorldRemit and MTN agree major mobile marketing services provider, announced last tion. mPOS facilitates full service agency bank- Government of Nigeria to create a cashless so- month that its mPOS platform has been certified ing, enabling banks to expand into rural areas and ciety is taking hold. The use of traditional POS for the Nigerian market to support the govern- providing a platform for other transactions: loans, (Point of Sale) terminals is becoming a common money partnership ment’s “Cashless Nigeria” initiative. The Central insurance as well as other services. People who feature in large commercial outlets. “However, Bank of Nigeria aims to reduce the amount of live in rural communities without bank branch of- we are confident that the much more affordable fices are now gaining access to banking and trans- goSwiff mPOS terminals combined with their ONLINE money transfer service WorldRemit “As well as being fast and convenient, MTN physical cash circulating in the economy, and en- actions through mPOS applications. advanced mPOS platform will reach all seg- and telecoms operator MTN have signed a global Mobile Money is reaching millions of people who courage more electronic-based transactions. NIBSS, by independently certifying mPOS so- ments of the market, from taxi drivers to the large partnership that will enable WorldRemit custom- don’t have bank accounts, giving them access to a goSwiff mPOS will enable merchants in Af- lutions, is ensuring that these solutions are fit for logistic and distribution companies, leading to a ers to send remittances instantly to MTN’s Mo- variety of life-enhancing financial services includ- rica’s largest economy to accept card payments in the Nigerian market. goSwiff’s mobile payment revolution in the adoption of card payments. We bile Money customers. ing savings and insurance schemes.” a secure and easy way, using mobile devices such platform is matching the local market conditions at TITIS are happy and excited to be associated The agreement extends WorldRemit’s position MTN Mobile Money is currently used by 22.2 as smartphones and tablets with card readers. The and will help drive revenues for Nigerian banks. with goSwiff at this time of great opportunity and as the leading provider of remittances to Mobile million customers in 16 countries across Africa. certification is the first for an internationally rec- Money users (also known as mobile wallets) at a To kick-start the partnership, MTN’s op- ognised mobile POS solution and covers both “Many banks in Nigeria have struggled with change in Nigeria,” said Ayoola. time when the technology is experiencing rapid erations in Uganda, Rwanda and Zambia will be uptake, especially in Africa. MTN Mobile Money added to WorldRemit’s list of mobile recipient is increasingly an important part of MTN’s serv- options, with additional countries following soon CEO, ice offering, and the partnership with WorldRe- after. WorldRemit Kenyan Mobile money transactions hit sh2 trillion in 2014 Ismail Ahmed mit further strengthens the operator’s position in “The partnership with WorldRemit is yet an- cross border remittances. other important step in our journey to enable MTN Mobile Money enables users to perform KENYANS sent over Sh2.146 trillion shil- pared to 732 million transactions in 2013. moved across the mobile system, was Sh16 bil- Founder and CEO of WorldRemit Ismail the affordable transfer of monies across borders. local and international money transfers, make lings using mobile money system in 2014, sur- Kenyans made an average of 75 million mo- lion. M-Pesa has the largest market share with Ahmed said: “Mobile Money is rapidly displacing Our remittance strategy places the customer at utility payments, save money in their interest passing the Sh1.8 trillion 2014/2015 national bile money transactions in 2014, with October 17 million active users. Airtel Money and Or- cash as a way of receiving money from friends and the heart of any offer we introduce as MTN and, bearing mobile wallets, purchase airtime and ac- budget. having the highest number of transactions at ange Money have 3.8 million and 2.1 million family abroad. WorldRemit’s partnership with working with WorldRemit, we intend to further cess a range of mobile financial products. According to statistics provided by the Cen- 82 million. Mobile money transaction in Ken- subscribers respectively. MTN allows our customers around the world to extend the convenience of MTN Mobile Money More than 50 per cent of all WorldRemit trans- tral Bank of Kenya, there were 825 million mo- ya has grown exponentially. Equity’s Equitel has signed 140,000 users, fers to Africa are received in Mobile Money ac- send money instantly to MTN Mobile Money to our customers,” said MTN Group Chief Com- bile transactions up to November 2014, com- In 2007, the total amount of money that months before it officially goes live. users. mercial Officer, Pieter Verkade. counts or as mobile airtime top-ups.

18 Africa Telecom & IT | February ‘15 19 photo GALLERY

1 2 Africa’s first commercial ‘white space’ network

US technology giant Microsoft has launched Microsoft and Spectra Wireless’ parent company what it claims is Africa’s first commercial broad- are both members, commented: “Having over- band network utilising ‘white space’ broadcast seen TV white space (TVWS) trials in the UK at frequencies in Ghana, via its 4Afrika initiative. In Ofcom, I am truly delighted to see Spectra Wire- L-R: Director Policy, Competition & Economic Analysis, Ms Josephine Amuwa, COO and L-R: Fmr. ITU, Secretary-General, Dr. Hamadoun Toure, Dr. Cosmos Zavazava and Qatari partnership with SpectraLink Wireless – and in less and Microsoft’s move to make TVWS-based Legal Secretary, CTO, Lasantha de Alvis and Nigerian Communications Commission Minister for Telecoms, Dr. Hessa Al Jaber during the Ministerial visit of Pavilions (NCC), Commissioner, Dr. Mike Onyia the wake of successful white space pilot tests at broadband a commercial reality in Ghana, a first universities in Koforidua, Ghana, from May 2014 in Africa. I applaud the Ghanaian regulator, the – the new network will offer students affordable, National Communications Authority (NCA), in high speed internet bundles and zero-interest granting a commercial licence, which allows use 3 4 loans in partnership with UT Bank for the pur- of TV frequencies on a secondary basis as long chase of eligible internet-enabled Microsoft, Len- as TV is not interfered with. This would drive up Executive , Dell and HP devices. spectrum efficiency of TV bands in Ghana, and Director, Dynamic The Executive Director of the Dynamic Spec- I hope other countries learn from NCA’s deci- Spectrum Alliance, trum Alliance, Professor H Nwana, of which sion.” Prof. H Nwana

Nigeria’s tele-density nears 100% mark L-R: Nigeria’s Minister of Communications Technology, Dr. Omobola Johnson, Dr. Hamadour Toure and Secretary-General, CTO, Tim Unwin in Doha, Qatar L-R: Dr. Hessa Al Jaber , Dr. Toure and a UN official during the Ministerial visit of Pavilions

November 2014, bringing the country’s tele-den- erators. The CDMA technology, which is being sity to nearly 100 per cent. It grew from 96 per championed by Visafone Communications in cent in September to 97.8 per cent in November Nigeria, had 3.7 million connected lines in Sep- 5 6 2014. tember but grew to just 3.8 million in November According to statistics from the Nigerian 2014. But the active subscriptions fluctuated, re- Communications Commission (NCC), the cording 2.4 million in September; 2.35 million in country’s total connected lines grew from 184.1 October and 2.41 million in November. million in September to 186.5 million as at No- For the fixed wired/wireless operators, it re- vember, while the active lines also moved from corded 363, 233 million connected lines but only 134.5 million to 136.6 million within the same 183, 555 are active. period of review. While commissioning a base transceiver sta- Tele-density, the number of telephone con- tion (BTS) last year, the Minister of Communi- Dr. Toure (l) at the Chadian Pavillion, Dr. Hessa Al Jaber (m), Chadian Communications Minister, Hassan Sylla Bakari Ben and other delegates during the Ministerial visit of nections for every hundred individuals living cations Technology, Dr. Omobola Johnson, said Pavilions Delegates from Comoros in Doha within an area, varies widely across nations and that about 40 million Nigerians still lacked access also between urban and rural areas. It has signifi- to basic ICT. The commissioning was one of the cant correlation with the per capita GDP of the several BTS deployed across the South West re- Executive Vice Chairman, area and is also used as an indicator of economic gion by Odu’atel through subsidies provided by 7 8 Nigerian Communications development. the Universal Service Provision Fund (USPF) to Commission (NCC), The quartet of GSM operators in Nigeria – connect Nigerians to telephone services. Dr. Eugene Juwah MTN, Globacom, Airtel and Etisalat – continued She said that in the next implementation phase to dominate the market, recording 182.4 million would see more than 200 BTS deployed across connected lines and 134 million active subscrip- the country, giving more than 300 communities NIGERIA’S telecommunications subscribers’ tions. It was however mixed fortunes for the with an estimated population of 1.65 million ac- base grew by 2.4 million between September and Code Division Multiple Access (CDMA) op- cess to ICTs. Public Relations Manager, Post and Telecommunications Regulatory Authority of L-R: Manager Govt., and Regulatory Affairs MTN, Oyeronke Oyetunde, Business/Editorial Zimbabwe (POTRAZ0), Mrs. Sibonginkosi Muteyiwa presents a souvenir to Dr. Toure at Director, Africa Telecom&IT, Ms Monique Butt and Nnenna Ukoha of the NCC the Zimbabwe stand in Doha

20 Africa Telecom & IT | February ‘15 21 Dell Venue 8 7849 DELL showcased what it calls the world’s Intel Atom Z3500 SoC, an 8-megapixel thinnest tablet, Dell Venue 8 7849, with rear camera and a front 2-megapixel shoot- PCs and tablets of CES 2015 a 6mm thickness along with other near er. It also comes with the Intel RealSense The CES events usually saw launches and announcements by several major manufacturers. However, this year, there bezel-less designed XPS 13 . As ‘3D snapshot’ photography solution that was an overwhelming number of tablets and laptops. All-in-one (AIO) PC systems and -tablet hybrids by some for the Android 4.4 KitKat-based tablet, creates a high-definition depth map to en- major tech firms like Samsung and Asus, were also on parade. the device features an 8.4-inch Quad-HD able measurement, refocus and selective While Lenovo and Dell ruled the laptop and tablet segments, other tech firms like Samsung, Acer, and Toshiba also (2560x1600) OLED display, quad-core filters with a touch of a finger. stole some of their limelight with their own devices. Smaller players like Archos and Alcatel showcased their technology under the tablet section. We have compiled a list of all the devices to give users an idea of what they can expect this year. Toshiba Encore 2 Write 8-inch and 10-inch tablets Lenovo Tab 2 A7-10 & Tab 2A7-30 THE firm launched the Toshiba Encore 2 last year’s Encore 2 tablets. These include THE Chinese tech giant launched two tab- powered by MediaTek processors, 1GB of Write 8-inch and Toshiba Encore 2 Write 8-inch and 10-inch 1,280x800 pixels mul- lets, Tab 2 A7-10and Tab 2 A7-30, which RAM and feature 7-inch 1024x600pixel 10-inch tablets, which are the refreshed ti-touch displays; an Intel Atom processor; are for budget-conscious users. resolution display. versions of the company’s Encore 2 tablet 2GB of RAM; 64GB of built-in storage; The Android 4.4 KitKat running devices Some specifications however differ be- lineup from last year. The specifications of expandability via microSD card (up to has already hit the shelves. The devices are tween both the devices. the Encore 2 Write are mostly identical to 128GB), and Windows 8.1 with Bing.

Samsung ATIV Book 9 2015 Archos 101 Helium THE ATIV Book 9 2015 (also known as The 12-inch Samsung Series 9 2015 Edi- ARCHOS launched three tablets named camera resolution and battery. However, Samsung Series 9 2015 Edition) ultrabook, tion is said to be the thinnest and lightest Archos 101 Helium 4G, Archos 80b He- the Archos 101 Helium 4G tablet is the and the ATIV One 7 Curved AIO (also offering by the firm, with an 11.8mm thick- lium 4Gand Archos 70 Helium 4G. All best amongst the three. The tablet includes known as Series 7 AIO). ness and a weight of 950 grams. the tablets come with dual-SIM support, a 10.1-inch WXGA (1280x800pixel) but do not support voice-calling. The 80b resolution IPS display and is powered by Helium 4G and 70 Helium 4G share most a 1.5GHz quad-core MediaTek MT8732 Asus Transformer Book Chi T300 of the specifications except the screen size, processor. THE T300 Chi hybrid has a 12.5-inch Air killer, the T300 is a 12.5in tablet with display and will be offered with either a an accompanying detachable keyboard 1,920x1,080-pixel or 2,560x1,440-pixel section that allows it to function as a laptop HTC Desire 826 screen resolution, along with the Intel Core too. HTC presented the HTC Desire 826 during camera on the front, though in some mar- M. Thinner, lighter, faster and with a higher the CES 2015. The newest addition to the kets it has a 13 MP f/2.0 sensor on the front Billed by Asus as something of a MacBook resolution screen, runs windows 8.1. Desire line, which is a series of budget de- instead. The HTC Desire 826 also comes vices which are reputed for good specs and with HTC’s recently released Eye Experi- Alcatel One Touch Pop 2 tablet an even better price, comes with a 5.5-inch ence software as well. The whole is powered ALCATEL launched the One Touch Pop 5-megaixel rear camera, 2-megapixel front- LCD display of 1,920 x 1,080 pixels. by an octa-core Snapdragon 615 processor 2 (10) tablet, which features LTE Cat. 4 facing camera, 8GB of inbuilt storage, and The Desire 826 comes with 16 GB of in- clocked at 1 GHz, 2 GB of RAM and a 2,600 network support along with other speci- a bunch of other accessories including a ternal storage, but with a micro SD slot to mAh battery. fications that make it a mid-range device. keyboard dock to let users work on it as a expand storage space. It’s also got a 13 MP It comes with Android 5.0 Lollipop The tablet features a 10-inch IPS display, laptop. shooter on the back and 4 MP Ultrapixel straight out of the box!

22 Africa Telecom & IT | February ‘15 23 domestic value added in the ICT industry while reduced the cost of international bandwidth be- ditional fibre optic cabling. its IT in Government’ programme promotes e- tween $1700 & $1200 to between $700 & $500 While integrating the broadcast sector with the Governance by harnessing ICTs to ensure trans- per Mbps. telecom, IT and postal sectors to fast-track con- parency, efficiency and productivity in govern- “Now, with SAT3, Glo1, MainOne, WACS and vergence of the ICT sector is desirable, and is in ICT’s: The Foundation of Nigeria’s Transformation ance and citizen engagement – which will create ACE, landing on our shores, the cost is between sight, Johnson said it had to be done in such a way an enabling environment to foster investments $300 & $400 per Mbps and ’to ensure diverse ca- that the activities and programmes of one agency Last month Nigeria’s Minister of Communication Technology presented her both at local and international levels and deliver ble routings, an alternative landing point outside did not antagonise that of the others, which could report card at the fourth ICT Stakeholders Forum in Lagos. Clifford Agugoesi on the mandate to increase contribution of ICT Lagos is being considered for future cable land- stall progress. to the nation’s GDP. ings” Johnson said, adding that her ministry’s trust Meanwhile, the FMCT says it is pushing the re- reports “Our current focus has yielded significant divi- is to ensure the cost keeps falling for the benefit of forms of the postal sector as well as the privatisa- dends,” stated Johnson. “The ICT sector is grow- consumers. tion of NIGCOMSAT. Part of the reform process ing at 24 per cent annually and the contribution The reasoning within the ICT industry is that of NIPOST is to separate its regulatory and com- of ICT to the nation’s GDP has increased from prices of bandwidth will not decrease appreciably mercial functions. 5.6 per cent since the ministry’s creation in 2011 to a point where it could be described as pocket � NIGCOMSAT 1-R to 7.8 per cent in 2013. Given the significant friendly, from the point of view of consumers, In order to erase the perception in some quar- 20:2020 goal – aimed at placing Nigeria among nies that are innovating and adding value to the inroads made, the ministry is confident that the until something critical happens at the last mile. ters that tended to portray NIGCOMSAT as a the world’s top 20 economies by 2020. economy. contribution to national GDP would significantly These challenges are being addressed as the min- cost centre, the Minister announced that NIG- ICT has not let the government down, it would The Nigerian telecoms sector is one of the fast- increase by 2015. In terms of connectivity, we istry works in concert with its agencies – the Ni- COMSAT 1-R has increased its commercial seem. It has played a major role in national growth est growing in the world and continues to attract have achieved remarkable progress in facilitating gerian Communications Commission (NCC), value through the generation of revenue for gov- and development. Under the guidance of Dr. foreign direct investment (FDI). An additional increased access to ICTs. Teledensity ratio in- National Information Technology Development ernment investment. Omobola Johnson, a former Country Manager at $6billion was made between 2011 and 2013, creased tremendously to 88.62 per cent in 2013 Agency, (NITDA), Nigerian Postal Services, The minister also disclosed some generic and Accenture Nigeria, the FMCT has been the ful- according to figures released by the Nigerian and over 121 million active subscribers are now (NIPOST), Nigerian Communications Satellite, specific interventions by her ministry to drive crum for ICT expansion in the country. Communications Commission (NCC). The connected. (NIGCOMSAT) and Galaxy Backbone. ICT inclusiveness and create jobs, particularly as Almost four years on, the Minister presented ministry has been able to lay down the follow- “In 2012, the number of telecom subscribers Through the NCC, the ministry successfully they affect persons with disabilities and the girl her report card at the 4th ICT Industry Stake- ing key policy documents: National ICT Policy, was 114.76 million against 95.9 million in 2010; auctioned 2.3GHz spectrum in March 2014, child. holders Forum, held in Lagos, last month. In National Broadband Strategy and Local Content which represents a 19.5 per cent increase in tele- which was won by BitFlux, which is yet to com- The Forum was, by all intents and purposes, 2011, the industry was dominated by the tel- Guidelines, which have recorded massive impacts com subscriber base. The ministry’s achievement mence services. The 2.6GHz spectrum licence a dialogue, for participants took time to make ecommunications sector and multilateral corpo- as a result of what the industry perceives as the ju- in the area of IT In Government shows that the will be issued by the first quarter of this year. Also, contributions on the way forward for the sector rations. The industry’s contribution to the gross dicious application of the principles contained in number of Government services delivered on- licensing of infrastructure companies (InfraCos) as well as raise germane questions concerning the national product (GDP) of Nigeria then was a the policy documents. line has increased tremendously. The number of to provide efficient wholesale bandwidth services trust of the ministry’s intervention programmes mere 5.46 per cent, featuring a fragmented IT sec- The stock-taking presentation by Johnson high- Ministries, Departments and Agencies (MDAs) on a non-discriminatory, open access and price- and activities and their continuity, after the exit of Nigeria’s Minister of Communications tor with small domestic players comprising nearly lighted the priorities of the FMCT, whose objec- with government allotted websites has increased regulated basis as well as provide metropolitan the minister post-2015 elections. Technology, 350 companies. tive is to deliver on the promises of the transfor- to 420 and by 2015 all the MDAs will have allot- fibre and transmission services, is underway. On the question of continuity, Dr. Johnson said Dr. Omobola Domestic value added in key areas was sub- mation agenda by addressing the challenges in the ted websites. The Executive Vice Chairman and chief execu- the ministry’s priorities were not just ICT sec- Johnson optimal and it was characterised by consumer ICT industry and leveraging the opportunities for “As at June 2012, Nigeria was home to 48.4 mil- tive at the NCC, Dr. Eugene Juwah, disclosed at tor priorities, but national priorities, adding she preference for global brands and high levels of socio-economic development. lion Internet users up from 45 million as the end the Forum that both MainOne and IHS, were would be surprised if her successor would dismiss THE recent slump in the price of crude oil in the importation of inputs and finished products In the area of Infrastructure development, of 2011. The 2012 figure represents 28 per cent winners of the InfraCo licence in the Lagos and broadband, postal sector reforms and privatisa- international market has once again justified the encouraged by the tariff regime and challenging the ministry is implementing ‘Connect Nigeria’, penetration rate and 229 per cent of total internet North Central zones, respectively. The winners tion of NIGCOMSAT, as baseless pursuits. But Nigerian government decision to seek ways and operating environment for manufacturing. Over aimed at providing a ubiquitous, robust and cost users in Africa making Nigeria the largest internet of the other five licences are yet to be announced. should it happen, Johnson stated the onus is on means of reducing the country’s dependence on $360 million was transferred out of the country effective ICT infrastructure to support the crea- market in Africa by volume,” the minister added. Under Connect Nigeria, Fibre Optics Rollout, the industry stakeholders to resist such attempt. oil and broadening its sources of revenue. One to purchase IT products and services. tion and development of a digital economy. The According to her, improving environment for by early 2011, over 30,000 kilometres of long “So what I would expect is that if the next ad- such move was the establishment of, among oth- Things are different today. The industry is vehicle for inclusive development is the ‘Con- investment and rapid growth in the country’s tel- haul intercity fibre was laid by legacy cabling and ministration comes and we see him/her doing ers, the Ministry of Communication Technology ranked with oil and gas and power. In the third nected Nigerians’ programme through which ecom sector led to increased market potentials for telcos. As at December 2013, the telcos had de- things different from these priorities, then I would (FMCT) under President Goodluck Jonathan’s quarter of 2014 the industry contributed 9.58 per the FMCT is catalysing access to infrastructure submarine cables. Capacity at the shore increased ployed a combined total of 68,124 kilometres of expect the industry to resist that. So I am throw- Transformation Agenda (2011-2015), which was cent to GDP, while enabling other sectors of the and devices ownership. Also the ministry is pro- from 4.78 terabits per second (TBPS) in 2011 fibre optic cabling and in 2014 the telcos alone ing that responsibility back to the industry.” meant to guide the country to attaining its Vision economy. This has helped to create local compa- moting Local Content by ensuring an increasing to 11TBPS in 2014. The coming of MainOne deployed an estimated 38,000 kilometres of ad- And, she got a standing ovation for all this.

24 Africa Telecom & IT | February ‘15 25 Orange invests in Afrimarket cash- Liberia to amend licensing regime to-goods money transfer start-up

ORANGE has contributed to a fund-raising user also pays lower fees compared to traditional to allow new mobile operator programme initiated by Afrimarket, the leader solutions and can be sure of the quality of the end- in cash-to-goods money transfers. This invest- products purchased with the funds. Three young THE Liberian Telecommunications Authority ports. The LTA last amended the licensing regula- ment comes a few months after Stéphane Rich- entrepreneurs – Rania Belkahia, Jeremy Stoss and (LTA) is reportedly in the process of amending tions in 2009 but it is currently cash-strapped and ard, Chairman and CEO of Orange, announced François Sevaistre – founded Afrimarket less than the country’s Licensing and Authorisation Regu- seeking additional revenue to support it – rather that the Group and the start-up had entered into two years ago in France. lations in a move designed to allow the entry of than going to the government for hand-outs. a commercial partnership. In addition to this in- The start-up has grown quickly, aided by an in- another mobile player in the market, and offer With local operators calling on the LTA to vestment, Orange will participate in the develop- novative business model and broad knowledge financial support to struggling incumbent op- ‘revisit’ the rules on Licence Fees Regulations to ment of Afrimarket by sharing market knowledge of cross-border transfers and African immigrant erators. FrontPageAfrica cites unnamed sources meet international standards and best practices, and the many benefits of an international mobile populations in Europe. The decision to take a as saying that the regulator has been working on last month the watchdog wrote to local operators operator with a strong brand reputation. minority stake in the company reflects Orange’s amendments to the legal framework to smooth to say it will look to implement amended Licens- Money transfers in the form of “cash-to-goods” new strategy of funding start-ups through vehicles CEO, the path for South Africa-based Vodacom Group ing and Authorisation Regulations to reflect the enables people in Europe to pay directly for eve- such as Orange Digital Ventures. The investment Orange, to enter the local market. The pan-African group concerns and take on board suggestions raised by ryday goods or services (food, healthcare, educa- is also the first one to be made in a start-up that Stéphane Richard already has active operations in Tanzania, Demo- the cellular companies. tion, etc.) in partner retail outlets for contacts liv- has gone through the “Orange Fab” acceleration cratic Republic of Congo, Mozambique, Lesotho, As a result the LTA informed the incumbents ing in Africa. This type of service has grown into programme. ample of the type of project that our new Orange and provides services to over 40 African countries that “all operators and or service providers will be one of the most promising segments in the inter- Pierre Louette, Deputy CEO of Orange, noted: Digital Ventures fund is interested in investing in. such as Nigeria, Zambia, Angola, Kenya, Ghana, expected to have migrated to the new regime by Liberia’s President, national money transfer market. In choosing how “Afrimarket is a start-up in the development phase We’re supplementing Orange’s existing open in- Ellen Johnson Cote d’Ivoire and Cameroon. or before 30 June 2015”. Further, the LTA says the he or she wants to help his family and friends, the with an original and promising offer. It’s a good ex- novation initiatives, such as Orange Fab”. Sirleaf The online journal claims that one plan on the new regime will create a level playing field and will table envisages Vodacom stepping in to take con- usher in technology-neutral licensing. trol of Liberia’s ailing fixed line incumbent Liberia However, not everyone is fully behind the man- to subsidise the unsuccessful ones … Under the Three new telecoms licences on offer in Ghana Telecommunications Corporation (LIBTEL- datory licensing regime, claiming it will impose an new regime, three per cent in gross goes to the GHANA’S National Communications Author- a five-year term; the IWC service licence costs CO), as part of a privatisation of the company, but uneven distribution of taxation on firms. William LTA while the government of Liberia will get two ity (NCA) is offering three new telecoms licences GHS1 million (also for five years); and the fixed this has been scotched by the latter, with its Man- Samoa, chief of operations at Cellcom said: ‘They per cent. What incentives do we get by relinquish- for a mobile virtual network operator (MVNO) access service licence is priced at GHS600,000 a aging Director, Sebastian Muah, denying the re- [LTA] are punishing the successful companies ing our existing licences?’ concession, a fixed access service of a unified ac- year. cess service licence, and an international whole- MVNO and IWC licences applicants are re- South African government mulling Vodacom sale sale carrier (IWC) permit. quired to be at least 70 per cent Ghanaian-owned, THE South African government is reportedly reportedly less likely to go under the hammer, as it The NCA is inviting applications from entities with the IWC licence holder obliged to provide looking into selling its 13.9 per cent stake in tel- may face tougher opposition from trade unions. registered under the Ghana Companies Code of a point of presence (PoP) and connect directly ecoms operator Vodacom South Africa, which Three people familiar with the negotiations 1963, Act 179. Applications for each of the above to a licensed international gateway operator; the Director-General, licences must be accompanied by a non-refunda- unified service licence targets existing mobile is estimated to be worth ZAR28 billion ($2.44 have disclosed that South African mobile opera- NCA, ble fee of GHS150,000 ($45,321). network operators (MNOs) who wish to expand billion), in a bid to raise much needed funds to tor MTN is reportedly eager to acquire a stake in Mr. Paarock address the country’s power crisis, Bloomberg Telkom, although such a transaction is likely to VanPercy The MVNO licence costs GHS1.2 million for their services. reports. attract the scrutiny of the country’s antitrust regu- According to two people with knowledge of the lators. situation, however, Vodacom’s majority owner As previously reported, Telkom and MTN NigComSat 1R to be sold Vodafone Group – which has a 65 per cent stake signed an agreement in March 2014, under which NIGERIAN satellite firm NigComSat 1R is to from the public coffers but giving back too little. must be sold, Johnson said. “NigComSat 1R in the South African telco – is allegedly reluctant the latter will take over the deployment and op- be sold to make it more efficient. According to She said the management was working to in- takes a huge portion of our budget and I don’t to increase its shareholding, as it is reportedly eration of Telkom’s radio access network (RAN), th4 Minister for Communication Technology, crease the company’s commercial value, which think there is any minister that will not support comfortable with its current share. although both companies would ‘retain and en- Dr Omobola Johnson, who made the announce- showed a gradual improvement in performance. its privatisation for the country to make more CEO, Vodacom, Meanwhile, another state holding – a 39.8 per hance competitive differentiation and flexibility’. ment, the company has said has been taking much But this marginal increase notwithstanding, it money,” she added. Shameel Joosub cent share in fixed line operator Telkom SA – is The agreement however is yet to be finalised.

26 Africa Telecom & IT | February ‘15 27 Maroc Telecom completes €474m Moov takeover Alca-Lu’s GPON solution to drive ultra-

MAROC Telecom has completed the takeover transaction marked an important step in the de- of all Moov operations in six African countries velopment of Maroc Telecom and strengthens its broadband network for Vodacom – Cote d’Ivoire, Togo, Gabon, Benin, Central Af- strategic positioning as a major player in Africa. rican Republic and Niger – to the total value of “We support south-south economic cooperation ALCATEL-Lucent has been selected by Vo- Durban. €474 million. The Moov mobile brand used to through this operation,” he added. dacom, South Africa’s largest mobile service The converged network will enable Vodacom be owned by Atlantique Telecom, a subsidiary of The total takeover of Moov was not as smooth- provider, to build a gigabit passive optical net- to offer mobile, voice, video and data services to United Arab Emirates group Etisalat in Francoph- ly as it sounds in the sense that Maroc Telecom working (GPON) solution to expand Vodacom’s 250,000 homes and businesses within the next one Africa. Etisalat is currently the major share- did encounter a few challenges in Togo, where the customer base. The new converged network will three years. holder of Maroc Telecom with 53 per cent. government sanctioned the Moov Togo takeover enable Vodacom to provide customers with ultra- Vodacom Group Chief Technology Officer The transaction also includes the takeover of on condition that 30 per cent ownership went to broadband needed to access bandwidth-hungry (CTO) Andries Delport said: “We first began Prestige Telecom, which provides IT services on Togolese investors. Maroc Telecom also owns services and applications such as online gaming talking with Alcatel-Lucent about expanding Vo- behalf of Etisalat subsidiaries in these countries, Gabon Telecom, which it bought in 2007 and and streaming video. dacom’s business into the fixed access market five and which is believed to command over 42 mil- merged it with mobile operator Libertis. This Vodacom will deploy Alcatel-Lucent’s compre- years ago. This was a significant move for us and lion mobile lines. Maroc Telecom, which is said means that the recent takeover pushes Moov hensive end-to-end GPON solution, as well as required a great deal of consideration. Over time, to be the continent’s second-largest telecommu- Gabon to be automatically swallowed’ by Gabon President, the Motive customer experience platform to pro- the Alcatel-Lucent team was able to show that it Alcatel-Lucent nications company after South Africa’s MTN, is Telecom. Many analysts said Maroc Telecom vide high-quality network performance through was the right move for us and that their solution Europe Middle present in 10 African countries. now needs to work hard to revive some of these CEO, Maroc Telecom, advanced performance management capabilities was the best for our needs.” East & Africa, Company CEO Abdeslam Ahizoune said the subsidiaries which were said to be struggling. Abdeslam Ahizoune across both wireline and wireless. Vodacom ex- The President of Alcatel-Lucent Europe Mid- Willem Hendrickx pects to reach about 150,000 homes and 100,000 dle East and Africa (EMEA Willem Hendrickx, businesses within the next three years. said: “This effort represents a significant and bold MENA deploys Infinera transport network in Egypt Vodacom will deploy the new converged move by Vodacom into the fixed network space that our technology, expertise and knowledge are network in all major centres in South Africa, in- and allows them to take advantage of new, reve- helping take Vodacom to the next level of con- INFINERA has announced the deployment of MENA, a subsidiary of Orascom Telecom nectivity services from STM-1 to 100 Gbps and cluding Johannesburg, Pretoria, Cape Town and nue-generating business models. We are excited verged communications.” the Infinera DTN-X platform across Middle East Media and Technology, owns and operates a sub- terabit capacity. The Infinera Intelligent Transport and North Africa (MENA) submarine cable sys- marine telecommunications system connecting Network features a single-card 500 Gbps FlexCo- AfDB and MasterCard broaden financial inclusion in Africa tem’s trans-Egypt terrestrial network, providing Europe to the Middle East and Southeast Asia. herent super-channel solution and is based on In- multi-terabit capacity and network services. The Spanning three continents, MENA’s infrastruc- finera’s photonic integrated circuits. By integrating Africa by broadening access and usage of digital ic growth in Africa, this has not translated into Infinera Intelligent Transport Network, featuring ture provides wholesale capacity to global net- DWDM optical transmission and up to 12 Tbps financial services. shared prosperity and better livelihoods for the the DTN-X packet optical transport networking works via Asia and the Middle East. of non-blocking OTN switching into a single They will work with African governments and majority. Growth has to be inclusive to be socially platform, will allow MENA to differentiate its With the deployment of an Infinera Intelli- platform, these 500 Gbps super-channels provide local private sector companies to develop and de- and politically sustainable. One key component services and manage costs as it scales network gent Transport Network, MENA is equipped to network operators the ability to scale to terabits of liver affordable services that meet the needs of a of inclusive development is financial inclusion, capacity. provide wholesale carriers with a range of con- transmission capacity. wide consumer base, especially the traditionally an area in which Africa has been lagging behind unbanked. other continents. Broadening access to financial Specifically, the collaboration will seek to: services will mobilize greater household savings, � Build cohesive African financial systems that marshal capital for investment, expand the class of TTCL, Huawei ink $182m network improvement deal drive inclusion at a country level and enable entrepreneurs, and enable more people to invest service delivery to traditionally excluded popula- in themselves and their families.” STATE-owned Tanzania Telecommunica- The agreement will also see Huawei deploy tions; MasterCard CEO Ajay Banga said: “Less than tions Company Limited (TTCL) has signed a networks in rural areas in line with a Univer- � Invest in a curated set of innovative financial one adult out of four in Africa has access to an $182 million deal with Chinese vendor Huawei sal Communications Service Access Fund services companies and solutions targeted at ad- account at a formal financial institution. While President, (AfDB), dressing barriers that hinder financial inclusion; many of our industry partners have been active in Technologies to upgrade and expand its fixed and (UCSAF) contract won by TTCL in February Dr. Donald wireless networks, local website Daily News re- 2014. The contract is part of a wider UCSAF Kaberuka and this space, we believe that through our payments ports, citing CEO Dr. Kamugisha Kazaura. programme designed to provide connectivity for � Share knowledge across academic, policy and expertise, and the AfDB’s 50 years of experience Under the terms of the contract – the first more than two million people living in rural areas, THE African Development Bank (AfDB) and commercial sectors to create thought leadership in financing Africa’s economic transformation, we phase of which is expected to conclude in June with Kazaura clarifying that TTCL is contracted MasterCard have announced a broad collabora- on financial inclusion and economic develop- can achieve scaled impact and lasting transforma- – the vendor will upgrade the telco’s 2G and 3G to expand rural services to 69 wards that make up tion that aims to expand financial inclusion across ment. tion. This can only be accomplished when the CEO, TTCL, networks and also deploy 4G Long Term Evolu- over 400 villages, effectively extending coverage the African continent. The collaboration seeks to The President of the AfDB, Donald Kaberuka public and private sectors combine resources and Dr. Kamugisha develop solutions that drive inclusive growth in commented: “Despite the phenomenal econom- act together.” tion (LTE) technology. to 50,000 residents. Kazaura

28 Africa Telecom & IT | February ‘15 29 Algerie Telecom in spat with Mobilis ARTP Senegal extends 4G trial period SENEGAL’S telecoms regulator, L’Autorite de on how best to commercialise 4G, and on grant- Regulation des Telecoms et des Postes (ARTP), ing licences to existing operators or new entrants, subsidiary over fibre rollout has extended the testing phase of 4G services to on QoS and ability to deliver national coverage. the end of March, Ecofin Fides reports. The trials Orange Senegal launched its 4G network tri- AGENCE Ecofin reports that a feud is brewing Mobilis’ quest for independence has not, how- were launched by Sonatel (Orange) in October als on the back of a $240 million investment between incumbent operator Algerie Telecom ever, curried favour with its parent, which cur- 2013 and Tigo Senegal in December last year, programme to expand and upgrade its overall and its subsidiary, Mobilis, over the latter’s desire rently provides it with fibre capacity on its own and the extension means that users will be able network capacity. To date, it has deployed more infrastructure and stands to lose up to $8 million to ‘stand on its own feet’ through the acquisition to enjoy free ultra-high speed mobile broadband than 40 4G sites in Dakar and Saly, and has plans of its own fibre optic network infrastructure that in revenue per day if Mobilis goes ahead with for another twelve weeks or so. ARTP did not to add more towns and cities in future. In its most will enable it to go head-to-head with competi- its plan. Indeed, Algerie Telecom chairman and give any reason for the decision to extend the trial recent expansion, the carrier added the city of tors Ooredoo and Djezzy in the provision of in- CEO Azouaou Mehmel has warned that the loss phase, although its announcement will be wel- Touba to its 4G footprint. tegrated telecoms services. Since November last of such an important revenue stream could result come news to Expresso Telecom (Senegal) – the Meanwhile, Tigo’s Long Term Evolution year, the pair have reportedly locked horns over in it being forced to shed ‘several thousands’ of its only company yet to launch a 4G pilot. (LTE) trials are taking place in the capital Dakar, Mobilis’ plans which stemmed from the wire- workforce. ARTP says that once the trials are complete, it targeted around the areas of Yoff, Almades, Fann less operator’s launch of a tender for the “supply, The government of Algeria has reportedly expects all three mobile operators to submit de- Residence, the University, Dakar-Plateau, Abdou installation and commissioning of advanced, high called a number of meetings in a bid to resolve the tailed assessments on the quality of service (QoS) Diouf International Conference Centre, Diam- speed transmissions next generation dense wave- silent impasse, although it appears likely that mar- achieved. The government is basing its decision niadio and the city of Touba. length division multiplexing (NG-DWDM) ket forces will prevail, given that both companies equipment, including the supply of fibre-optic are simply looking to protect the interests of the CEO, Algerie Telecom, cable and passive equipment”. firms they run. Azouaou Mehmel Kenya South Sudan collaborate on fibre optic KENYA and South Sudan have signed an agree- border to Juba and further to other parts of the Nokia Networks, Safaricom launch LTE-A network in Kenya ment that will see the two countries connected country,” said Matiang’I. He noted that part of launch the first LTE-Advanced (LTE-A) network towns over the coming months. by fibre optic cable. South Sudan’s ICT Minister the project, however, will be part of the second in Kenya. The network launched in December Bob Collymore, Chief Executive Officer, Sa- Rebecca Joshua Okwaci and her Kenyan coun- phase of the inland nationwide network National 2014 will offer peak speeds of up to 100 Mbps, faricom said: “This project marks an important terpart, Fred Matiang’I, signed the memorandum Optic Fibre Backbone Infrastructure plan that is which is more than twice the speed offered on 3G milestone in our journey toward a modern and of understanding last month that will lead to lay- expected to cover 2,100 kilometres and link all of technology. energy-efficient network that’s capable of deliver- ing of the cable from Eldoret to Juba. Kenya’s 47 county headquarters. Carrier aggregation is a key feature of LTE- ing world-class voice and data services to our cus- The project, to be funded by World Bank, is set Okwaci added that the project would go a long Advanced, enabling operators to create larger, vir- tomers. It clearly underlines our focus on having to run concurrently with the construction of the way in building South Sudan’s infrastructure and tual carrier bandwidths for services by combining the most advanced network in Kenya.” Bernard Northern Corridor road network. Fibre optic ca- ensure that the country is not left behind in the separate spectrum bands, thus boosting network Najm, Vice President and Head of Middle East ble offers reliable and huge data capacity conven- ongoing development of the region. “We are a capacity and speed as well as performance. Safa- and Africa, Nokia Networks, said: “With this am- ient for video conferencing and telemedicine. landlocked country and do not even have an inch ricom’s customers will be able to download and bitious network modernization, we provide Safa- “Kenya will be responsible for the laying of of fibre optic cable; this project will ensure that we upload files faster as well as enjoy buffer free audio ricom with the highest quality network in Kenya. the cable from Eldoret to the border, while the have a better way of communicating with the rest CEO, government of South Sudan will lay it from the of the world,” she said. SAFARICOM has selected Nokia Networks as Safaricom, and video streaming. Our cutting-edge solutions and services help Sa- one of its partners to modernise and expand its Bob Collymore Safaricom will roll out 4G services in Nairobi faricom offer a truly rewarding service experience 2G and 3G network infrastructure and to help and Mombasa first before introducing to major to its customers.” POTRAZ threatens to withdraw Telecel’s licence ZIMBABWEAN mobile operator Telecel is ments, but the watchdog is becoming increasingly remaining 60 per cent is owned by Telecel Globe, MainOne launches West African Tier III data centre, MDX-i once again under fire for failing to comply with the exasperated by the firm’s failure to comply. which is part of Egypt-based Global Telecom NIGERIA-based MainOne, which describes by a new subsidiary, called MDX-i. MDX-i’s Tier “Availability of world class data centres in Nigeria country’s empowerment laws which require local At present, 40 per cent of Telecel is held by Em- Holding (GTH, renamed in September 2013 itself as a leading provider of innovative telecom III Lekki Data Centre is the first of a number of is critical [in terms of the] infrastructure required investors to own a majority stake in the company. powerment Corporation (E Corp), itself com- from Orascom Telecom Holding), itself a 51.9 services and network solutions for business users planned data centres being considered by Main- for the implementation of our broadband initia- Telecoms regulator POTRAZ is now threatening prising Kestrel (23 per cent), IEG (18 per cent), per cent -owned division of Russian-controlled, in West Africa, has opened a Tier III Data Centre One. It is a NGN7 billion ($37.8 million) invest- tives. to withdraw the operator’s licence unless it moves Indigenous Business Women’s Organisation (17 Netherlands-headquartered Vimpelcom, which to address the growing demand for colocation, ment and has capacity for 600 racks. Speaking at The accomplishment by MainOne is indeed to restructure its ownership. Telecel’s operating per cent), National Miners’ Association (14 per announced in December 2014 that it was looking cloud and disaster recovery services in the re- the launch of MDX-i, the Minister of Communi- significant as it provides an outsourcing and cost concession was renewed in August 2013 on the cent), Zimbabwe Farmers’ Union (14 per cent) for a buyer for its stake in Telecel but it has so far gion. The purpose built facility will be managed cations Technology, Dr Omobola Johnson, said: effective model to further drive ICT adoption.” condition that it met the empowerment require- and Magamba eChimurenga (14 per cent). The attracted little interest.

30 Africa Telecom & IT | February ‘15 31 Glimpses of Nigeria’s ICT Development ************************** Broadband Gets A Boost With Infracos Licensing

ogy Development Agency, NITDA, Galaxy to have a digital free environment? Another ques- Nigeria’s Telecom Regulator Backbone, Nigerian Postal Services, NIPOST tion was on data privacy legislation. and Nigerian Communications Satellite, NIG- In her response, Johnson stated that there was COMSAT – were on hand to provide their in- Internet freedom in the country, adding that her sights and perspectives on some specific industry ministry is disposed to supporting the proposed Bags Public Service award issues. The NCC used the questions, answers Bill on Internet freedom, stressing the need to and comments session to make major announce- promote Internet freedom with digital respon- ments on its licensing of InfraCos, clarify errone- sibility, hinting there is the need to find a way of ous impressions on some national industry issues crafting this into the proposed Bill. and provide an update on global ICT trends as On Internet security, Juwah explained that In- THE Executive Vice Chairman of the Nige- The award recognizes outstanding contri- the nation’s ten years of telecommunica- they affect Nigeria and Nigerians. ternet freedom is a controversial issue even within rian Communications Commission, NCC, butions to top public servants who, in the tion success. Between 2001 and July 2010, A participant pointed that following NITEL’s the community of the ITU, saying freedom of Dr. Eugene Juwah added another award spirit of national transformation, have dem- the nation recorded about 88million active privatisation, its licence covered some of the key expression is not limitless, citing government in- to his kitty in January, Lagos, Nigeria. The onstrated uncommon character, passion, phone subscribers, while in four years, from parts of InfraCo licensing. But he noted that there terventions in some parts of Asia. According to award for Public service 2014 was given him innovation and unalloyed commitment in July 2010 to July 2014, the figures have hit were seven zones for licences, and NITEL would him, the fact there can be damaging information by The Sun Awards, organized by the Sun service delivery, and thereby rendering maxi- 134 million, with growth projections re- appear to be the eighth InfraCo. How would the with dire consequences in emerging democracies Publishing Ltd, publishers of Daily, Saturday mum benefit to the country. maining positive; while teledensity shored licensing be reconciled? like Nigeria, justifies the necessity for cybersecu- and Sunday Sun, as well as Soccer Star. Within five years of his tenure, he doubled up to 96%. The Executive Vice Chairman (EVC) and rity law. “In Nigeria a cybersecurity bill that has chief executive of the NCC, Dr Eugene Juwah been designed in collaboration with international explained: “Well, concerning InfraCo, the plan bodies, is today before the National Assembly. was to divide the country into seven zones and to So in Nigeria, we are dealing with both Internet EVC, NCC, licence Lagos and North Central first. NCC has Freedom and Cybersecurity at the same time,” he Dr. Eugene concluded the bidding process and has selected said. Juwah, licensees for the Lagos and North central zones. On digital migration deadline, Juwah stated “I do not mind telling you that the licensee for broadcasting is yet not under the purview of the BARELY three months after the Nigerian Com- Lagos is MainOne. The licensee for North Cen- Ministry of Communication Technology, but un- munication Commission reached agreement tral is our new national infrastructure company in der the purview of the Ministry of Information, with industry stakeholders on the open access Nigeria called IHS. Now, their award letters are al- adding information available from the National model for the deployment of optic fibre that ready underway and what we are just working out Broadcasting Commission, NBC, shows com- L-R: Commissioner, Mrs Biodun Olujinmi, Dir. USPF, Abdullahi Maikano, Commissioners will bridge the current broadband gaps, enhance with them is the detailed contractual obligations mitment to meeting the deadline. Dominic Nwator and Dr. Michael Onyia, Dr. Juwah (holding the plaque), Dir. Financial Services, Mrs. Iyabo Sholanke, Dir. Public Affairs, and Head, Public Relations, Reuben The pioneer MD/Editor-in-Chief of The Sun Publishing Ltd, Mr. Mike Awoyinfa (r) development of local content and deliver cost ef- both on NCC and on them.” The body language of a cross section of the Muoka. presenting the award to Dr. Juwah. fective services to Nigerian households and busi- On the NITEL issue, the EVC stated that the audience, who applauded while the names of the nesses, two winners have emerged from among NCC did license metropolitan fibre operators initial two winners were announced, seemingly infrastructure companies (InfraCos) for the that were able to do the job. “With the new infra- reflected its satisfaction with the choice of Main- licences: Main One and IHS for the Lagos and cos, a new regulation is coming because, we want One and IHS. Both firms are major players in the North Central zones, respectively. vibrant laying and fibre utilisation to be more provision of infrastructure in the nation’s telecom The announcement was made at the 4th In- efficiently done, and when you want to go to a industry. However, some members of the audi- dustry Stakeholders Forum in Lagos last month new area now, you require NCC’s approval. So ence, who shared views with our reporters, raised under the auspices of the Ministry of Communi- in doing that we will be able to connect both the concerns about the danger of both MainOne cation Technology, whose minister, Dr Omobola new infracos and also the licences that NCC has and IHS becoming monopolies, which would Johnson, gave an account of the ministry’s issued in the past,” Juwah said. subject consumers of services to their whims and progress since it was established four years ago. Another questioner wanted to know whether it caprices. The NCC and her sister agencies under the was possible for the Ministry to support the effort Juwah said the announcement of winners for Ministry – the National Information Technol- to have digital rights secured for all Nigerians and the other zones will come ‘very soon.’ Dr. Juwah speaking in response, after receiving the Public Service award. The NCC team lending support to Dr. Juwah Lagos builds 100 ICT centres for police

LAGOS State Governor Babatunde Raji Fashola lives and properties in the state. “This is the merit has begun handing over 100 Information Tech- in continuity in governance,” he said. The shape of North African IT in 2015 nology Centres to police stations in the state. He The governor disclosed that the state, in part- said the centres, equipped with solar power, were nership with security agencies, was set to take telecommunications industries,” says Country transformation in 2015, with different levels of being put in place to enhance the judicial process its wide-ranging crime-reduction strategies to Manager for North and French-speaking Af- maturity and adoption across the region. by assisting the Police to decongest their stations another level with the recent provision of dig- rica, Ouafa Kathir. “A large proportion of these 2. The telecommunications, banking and finance, of exhibits, especially abandoned vehicles, which ital cameras to police men and impending addi- deployments will be conducted via the public and government sectors will continue to top the hitherto hampered traffic flow in the state. tion of state of the art squad cars fully equipped cloud model because organisations will be un- region’s IT spending charts in 2015. He disclosed that each police station was be- with computers on board. He commended the able to find the skilled staff to implement and run 3. Organisations will press ahead with invest- ing equipped with two computers and specially “invaluable support” of the private sector to the such analytics environments in their own private ments in cloud infrastructure, but the offerings trained personnel to man the accessories, dig- state’s Security Trust Fund. ‘’This gesture should Country Manager clouds. will continue to be hampered by a lack of adapta- ital camera, Digital Assert Management Systems be emulated by all the citizens as they promptly for North & This will raise its own set of complexities as tion to local market needs. Software (DAMS), two KW Solar installations. fulfil their civic obligations of paying their taxes as French-speaking, organizations become open to new vulnerability 4. Big Data technology will start to attract serious “From now on, records of all exhibits in our police at when due,’ Fashola said. Africa, IDC, points, and will result in the focus across the re- interest from banking and telecommunications stations will be captured and stored in the com- The Commissioner of Police, Kayode Aderanti, Ouafa Kathir. gion being not only on solutions deployment, but organizations. puters’ databases for ease of access and retrieval noted that the state government had once again also on the implementation of advanced security 5. Security will remain the biggest inhibitor for THE North Africa region will push ahead with of relevant exhibits for effective prosecution of recorded another first in the realm of policing policies.” “Keeping with the 3rd Platform theme, cloud and mobility adoption across the region. IT transformation initiatives throughout the all cases,’’ the governor said. Fashola added that in with the ICT project, adding that his men will the transition to mobility will continue to gather 6. Telecom operators will struggle to change their course of 2015, spurred on by growing adoption spite of the remarkable decline in the crime rate reciprocate the gesture by putting the equipment pace across North Africa’s commercial segment role from voice providers to services providers. Governor, Lagos State, of ‘3rd Platform’ technologies such as cloud, mo- in Lagos, the state government would not relent to good use in the ongoing effort to combat crime throughout 2015,” continues Kathir. “The intro- 7. Print services and document solutions will of- Nigeria, bility, and Big Data. in living up to its main responsibilities of securing and preserve law and order in the state. duction of more appealing all-in-one computers fer interesting growth potential as the number of Babatunde Fashola That’s according to International Data Corpo- will lead to an erosion of desktop share as vendors vendors and distributors operating in this space ration’s newly released predictions for the year revisit their offerings and make them more com- continues to rise. ahead, with the global advisory services firm ex- patible with the Windows 8 operating system and 8. The proliferation of low-priced smartphones pecting IT decision makers across the region to Douala, Yaoundé Internet exchange its touch capabilities. This cannibalisation will oc- will see feature phones edge ever closer to extinc- make a bigger push to implement mobile busi- cur even more rapidly in the region’s consumer tion. ness intelligence, predictive analytics, and meta- segment as all-in-one devices become increas- 9. All-in-one computers will cannibalize desktops data management solutions. ingly attractive to home users.” in both the commercial and consumer segments points to be ready by June “Lines of business will drive the adoption of The IDC’s top 10 ICT predictions for North of the market. advanced analytics and big data solutions, par- Africa in 2015 are: 10. Local brands will intensify their focus on CAMEROON’S two internet exchange points “The government should have thought of such Cameroon’s Minister of Posts and Telecoms, ticularly in the region’s burgeoning banking and 1. The North African market will continue its IT launching new tablet devices across North Africa. (IXPs), earmarked to be established in the main project long time ago to ensure that Cameroon Jean Pierre Biyiti bi Essam, echoed this senti- cities of Douala and Yaoundé, will be ready by had affordable internet prices and a connectivity ment, saying that the internet exchange points June, the ministry of posts and telecoms said. of a good quality in the aim to improve internet will help cut the price of internet products and Cote d’Ivoire’s $56m digital village to be completed in 2017 The price tag of the project has not been dis- penetration and access,” internet café operator reduce the country’s reliance on foreign net- closed but its importance is already generating a Theophile Jean Onguene said in Yaoundé. works. THE first phase of the Ivorian digital village, est capital city. that VITIB’s digital mission was to primarily lot of interest in the telecommunications circles, Despite being Central Africa’s largest econo- African countries that lack internet exchange VITIB, currently under development in the Construction work of the digital infrastructure strengthen the capacity of local businesses. where criticism of the government’s handling of my, Cameroon has not invested a lot to improve points go the painful route of seeing their emails coastal city of Grand Bassam, has a price tag of is set to create about 40,000 direct jobs, Ivorian The government says VITIB is a business 28 billion FCFA (about $56 million) and will PM Daniel Duncan Kablan said. Work kicked meeting crossroad for all backgrounds working internet infrastructure and governance contin- its internet sector, and an Internet Society Cam- routed via foreign networks before reaching the be completed in 30 months’ time, the Ivorian off last December. The digital infrastructure will in the field of ICT. Kablan said Cote d’Ivoire’s ues unabated. eroon Chapter’s report shows that the country’s continent, and experts said this exercise is cost- government said. VITIB, Village des Technolo- be armed with four fibre optic networks worth challenge was to build a society oriented towards Douala, the commercial capital and the coun- internet challenges include poor telephone lines, ing Africa more than US$800 million per year. gies de l’Information et de la Biotechnologie, is over $120 million, the government said. Cote the development of ICTs. Several countries in try’s largest city, is located some 240 km west lack of qualified technicians to run TCP/IP net- Africa has 54 states but only 30 are believed to being developed with the help of , whose d’Ivoire has built a 2,000km fibre optic network, Africa are currently involved in projects of this of the political capital, Yaoundé. ICT company works and poor PC penetration, among others. have their internet exchange points. Eximbank has made available a loan of $40 and is about to build another 5,000km this year nature in an effort of attracting hard-core foreign ICCSOFT has been chosen to install the in- Internet Society Cameroon said the establish- And the list reveals the remarkable presence million to Cote d’Ivoire to finance the project. at the cost of $240 million. investors who seem to be overlooking the conti- frastructure under the supervision of state-run ment of internet exchange points will lead to the of less fancy nations such as Burundi, Swaziland, Grand Bassam, located some 45 km east of the VITIB represents the country’s technological nent due to – as they put it – its technology fault ANTIC, Agence Nationale des Technologies de reduction of prices and towards the improve- Lesotho, Djibouti, Congo Brazzaville, Sierra commercial capital Abidjan, is the country’s old- development launch pad, the PM said, adding lines. l’Information et de la Communication. ment of internet access in the country. Leone, Namibia, Rwanda, Malawi and DRC.

34 Africa Telecom & IT | February ‘15 35 Top Kenyan media firms fight digital TV migration

broadcasting starting with Nairobi and its envi- seen by journalists, the three media houses want rons. The Standard group (owner of Kenya Tel- to be given a two-month simulcast period during BOCRA consults on digital terrestrial TV evision Network), Nation Media group (Nation which their television channels will be available Television) and Royal Media Services (Citizen on both the analogue and digital platforms before ment forms part of the Authority’s intention to work as may be determined by the Authority. Television) filed a case at the Supreme Court to they fully switch-off. They are also want to use “revolutionise digital broadcasting in the country The regulatory body also wants to issue national, block the switch off date for Nairobi set for De- this period to order, import and install transmit- and create an enabling environment for all stake- regional and zonal or sectional licenses television cember 31, but did not manage to totally block ters, antennas and other equipment necessary to holders”. coverage classes in order to promote the market the digital migration. roll out their digital transmission infrastructure as Botswana initiated discussion on the licens- entrance and growth. In order to promote serv- The Communications Authority proceeded well as order and import set-top boxes. ing framework in 2012; which, however was not ice roll out and ensure equity, BOCRA proposes to order all stations to shut off their analogue sys- “One frequency that was allocated to the media completed because of legislative measures which to use an open and transparent method for li- tems and move to digital broadcasting that began houses by [the] CA is not enough to appropriate- eventually culminated in the establishment of censing of all interested providers including the on the night of December 31. TV firms, includ- ly cover Nairobi and its environs, which requires BOCRA in 2013. BOCRA has invited the nation existing broadcasters. ing pay TV companies like MultiChoice Kenya, at least three frequencies,” said a lawyer represent- Zuku, and StarTimes, are already competing to to make comments on the proposed paper be- Further, BOCRA proposes to issue licences ing the media houses, Paul Muite. Nation Media sell digital TV decoders to viewers as the rush Group, Standard Group and Royal Media Servic- fore the January 2015 deadline. “Upon reception to only locally registered companies to licence continues. However the Supreme Court stopped es want the CA to allocate three UHF frequencies of all comments, BOCRA will produce a draft digital terrestrial television on UHF channel the Communications Authority of Kenya from that are not being used for analogue broadcasting, Licensing Framework which will be circulated 470-698 MHz in order to take advantage of switching off the analogue frequencies of the Na- one for each of the three designated digital televi- to all stakeholders and will convene a consulta- availability of channels and for regional har- tion Media Group, Standard Group and Royal sion broadcasting sites in Nairobi. tive workshop to finalise the framework,” said monisation. “This will permit the country to be Media Services. Other media firms operating in According to an article in The East African, a Deputy Director – corporate communications open for future development for other services,” DG,CCK, the country are however relaying their TV signals sister publication to NTV and Daily Nation, the and relations at BOCRA, Aaron Nyelesi. the paper stated. Francis Wangusi via digital platform. three media houses under a consortium they are BOCRA proposes to licence commercial BOCRA also plans to adopt the Geneva 2006 THE Botswana Communications Regulatory According to the Director of Consumer and calling Africa Digital Network, control 90 per television stations using this framework that in- (GE06) frequency plan to facilitate entry to the Authority (BOCRA) has put out a consultation Public Affairs at the Communication Authority, cent of the media in the country consisting of “87 corporates both Free-to-View and Subscription- market, and, considering the size of Botswana, KENYANS are already enjoying the fruits of paper on a licensing framework for digital ter- Mutua Muthusi, by February 2 all other major per cent market share in TV, 80 per cent in radio based television, while other classes of licences aims to licence multi frequency networks in ac- digital TV broadcasting despite a fervent war restrial television for public consumption and towns in Kenya will have to abandon their ana- and 98 per cent in print”. This is expected to make from three top media houses in Kenya who want feedback. According to BOCRA, this develop- will be considered in a holistic licensing frame- cordance with the GE06 plan. logue system as the rest of the country will go dig- them a force to reckon with in the digital migra- the process delayed. At the beginning of Janu- ital by the end of March. From the court papers tion. ary, Kenya officially started its march into digital Digital switchover to boost e-commerce Al Yah 3 satellite set to lower cost

THE complete switch-over from analogue to dig- nesses online moving back and forth between online access online shops thus boosting e-commerce. ital transmission means better broadcast quality and and physical stores to make their livelihood and max- Leading the pack among digital TV service pro- of Pay TV in Africa a wider variety of channels for consumers, yet for the imise the advantages of both,” adds Firozi. viders offering a three-service package inclusive of ALL Yah 3 satellite is set to lower cost of Pay TV in Once operational, Al Yah 3 will enable the delivery of in the development phase of Al Yah 3 and ensures that corporate world the switch is going to mean more Similar sentiments are shared by the MD of Kaymu internet is Zuku fibre as more set top boxes with the Africa as the international deadline for digital migra- affordable broadband, to over 600 million users, specif- we are on track to launch as scheduled for Q4 2016. than that, says online retailer Jumia. It believes the dig- Kenya another online marketplace in Kenya, Aleeda capability to interface with such devices such as a cell tion fast approaches. TV viewers have got a boost with ically covering more than 95 per cent of the population While progress is underway with developing our third ital migration will boost e-commerce uptake in Kenya Fazal “The internet is very crucial to this business most phone, memory card or internet modem continue an imminent launch of Yahsat satellite targeting both in Brazil and 60 per cent of the population in Africa. satellite, we are actively engaging with potential part- and assist the acquisition process of new customers for customers will check online for a product before buy- to make their entry into the Kenyan Market. Kenya’s Africa and Brazil. The revelation was made recently The PDR was a comprehensive review that validated ners in Africa and Brazil enabling us to deploy much the e-commerce sector. ing it. They compare prices and then make up their digital migration suffered a setback late last year, after by Yahsat, the UAE-based satellite operator. The firm Orbital’s design approach to the physical and func- needed connectivity to underserved markets.” “This “Some digital TV service providers offer their cus- mind. This definitely boosts e-commerce.” a two-judge bench extended the migration date “until explained in a statement that they have completed the tional requirements of the spacecraft. The review is the important milestone is a key step towards the Al Yah tomers a three-service package that involves televi- According to Aleeda, most online shoppers are lo- further directions of the court”, allowing three media Preliminary Design Review (PDR) for the Al Yah 3 first step toward confirming that the satellite will oper- 3 launch”, said Orbital’s Senior Vice President Chris- sion, internet and telephone services over a single bill cated around urban areas where the internet is acces- houses Nation Media Group, Royal Media Services spacecraft and payload. ate effectively on orbit. Acting Chief Technical Officer topher Richmond. “Al Yah 3 will be the first hybrid per month over one fibre optic cable connection,” says sible, with Nairobi forming the biggest chunk of on- and Standard group to continue transmitting on the The satellite, dubbed Al Yah 3, is based on Orbital’s Marcus Vilaça said: “The Preliminary Design Review is electric propulsion GEOStar-3-based spacecraft to be the MD of Jumia Kenya, Parinaz Firozi. “This means line shoppers. She believes that with most digital TV analogue platform until their application is heard. GEOStar-3™ platform and is an all Ka High Through- an industry standard process where our engineers re- launched by Orbital at the end of 2016. It provides the more people will get access to an affordable internet service providers offering internet that can be shared However, Most Kenyans continue to ready them- put Satellite to be designed, manufactured and tested view and confirm the overall architecture and design of benefits of higher power and greater payload capability connection and many retailers will migrate their busi- among people within the same flat, more people will selves for the migration. at Orbital’s satellite manufacturing facility in the US. our Al Yah 3 satellite. This is a significant step forward while still maintaining advantageous launch costs.”

36 Africa Telecom & IT | February ‘15 37 � AT&IT: How will the ITU help Af- rica to bridge its capacity gaps? � HZ: It is true that this capacity gap exists, actually not only in Africa but everywhere. Africa: A Potential waiting In one country you have the gap between cities and rural communities. Nigeria is not a small country, it is the biggest populated country on the African continent with a lot of contributions (financial, education, to be unleashed and creating ideas to harmonise Africa) to the continent. I see that since we have this capacity gap then we have opportunities. Houlin Zhao is the new Secretary-General of the International Telecommunications But how can we use these opportunities to Union (ITU), having taken over from Dr. Hammadoun Toure at the beginning of this eliminate this gap? To build a very advanced ICT network to year. In this interview with Olubayo Abiodun in his office at the ITU Telecom World connect people is very critical and we can 2014 in Doha, Qatar, he spoke on a wide range of issues and his plan for Africa see that the benefit it offers to the rural areas Managing Editor, Africa Telecom & IT, Olubayo Abiodun interviewing the ITU Secretary-General at is good in order to advance education. You the National Convention Centre, Doha, Qatar cannot take refined teachers to the villages has achieved a lot of progress and develop- resources, and also make better use of the but you can take e-Course online. This will them move together better, to eliminate this potential to quickly develop broadband in ment, and ITU’s mission to connect the very limited human resources and how we give them the same opportunity to receive issue of capacity gap. Nigeria and also in the continent and then people is also gradually progressing. Seeing can bring organisations with moving target the same teaching which gives you very tal- � AT&IT: What is the most pressing consider that the other continent may be this kind of achievement the situation today from our members. ented qualified teachers. agenda of the ITU given the myriad better than you but I think in other coun- is something we should all be proud of. But, As we find ways to keep the ITU still rel- I see very good development in Africa challenges in the ICT ecosystem? tries there’re still some areas not covered however, looking at the future we still see a evant we have to work together with our where they’re not only trying to learn from � HZ: We’re talking about connecting by mobile phone signals and broadband is lot of challenges of keeping those successful members. We have 193 member states and the others but also trying to offer some kind people and connecting the world and today a big challenge to them even in Europe and businesses continuing: how can we connect 700 sector members from the industry. of approach they discover by themselves; we’re very proud with the recent statistics the United states. those people not connected yet? How we We have 70-80 academy members already. maybe a better approach than the others that by the end of this year we’ll have al- In Africa people talk a lot about m-Bank- can keep our innovations that have been We are that unique UN system but we’re and they don’t want to miss the opportunity. most seven billion mobile penetration and ing but in the United States people do not brought to us not only from big companies not that unique when you’re talking about I like this kind of spirit I very much appreci- the planet is 7.3 billion. That’s almost 100 use that technology. In Africa you still have but everywhere including Africa. So these organisations of the future since we also ate it and since these people have very good per cent. I was very pleased when we were some areas you show your leadership so I’m are issues, and as we put our connected have challenges and opportunities. I’m very education, know their national situation and told that in Nigeria mobile penetration has very sure that in the next decade we’ll see Af- 2020 strategy plan into action, inclusiveness, pleased that at the ITU we reached a strate- have a very strong will to contribute to the reached almost a hundred per cent. But on rica show up at the front line to lead in the sustainability, growth and innovation are the gic and financial plan at the recent plenipo- development of the continent I’m sure they the other hand you may have more than one development of technology services more major topics we’ll have to focus on in order tentiary conference and all have mostly been will offer even better opportunities to elimi- mobile phone. And I heard again that broad- often than we see today. to bring our planet new powerful ICT tools approved and this shows a good sign that nate the capacity gap within the continent. band penetration in Nigeria is less than 10 I’m very excited by the opportunity to lead to improve our lives. our members will work with ITU to move ITU will be helpful in contributing to per cent so we have to first of all find out this organisation for the next four years. I The ITU is the oldest UN agency, and further. this process that we as a UN international where people are not connected. will continue on what Dr. Toure has done so Secretary- will be celebrating 150 years next year. It I’m excited with this kind of opportunity agency have some kind of advantages to We have to not only talk about this issue far; to pay attention to those countries that General,ITU, Mr has contributed to human development so that I’ll be leading the ITU for four years and mobilise international families to create a Houlin Zhao of connected or not connected but we re- are still not enjoying the same development � Africa Telecom & IT: What is your successfully that today they still respect the whether I need a second tenure is another better platform to help young techpreneurs ally have to see where these people are and as others and also to try to encourage inno- vision for the ITU and ICT industry in ITU and still want to strengthen the ITU, thing. But the 4 years is not a short period, and villagers to have better contact with the then put our agenda to find a way to connect vative ways to eliminate this gap as quickly the next four years? but as an organisation we also face our chal- we can do a lot and I’m confident that we rest of the world so that they get better ideas them. Another issue is to offer everyone as possible. Here, we ask other continents to � Houlin Zhao: I see that the ICT and lenges of how we can increase our efficiency, will contribute to the human society suc- and opportunities and information about equal opportunities to enjoy modern ICT help and we also encourage others to show telecom business over the recent decade make better use of our very limited financial cess. potentials and partnerships which will help technologies like broadband. There’s the some form of good approach and ideas.

38 Africa Telecom & IT | February ‘15 39 limited financial and human resources and � HZ: Just like the internet, today many this kind of call from our Africa members to awards in the ITU scheme? the benefits will be limited in certain areas. people enjoy internet services but they’re have their own industries, but this does not � HZ: Now you just touched my point. This kind of donation can have some im- worried about their privacy. They don’t have mean that you just assemble the products That is the point I will start to discuss with mediate benefits but cannot be sustained. the confidence to put everything on the from China, India or America market where many ministers from June this year. In You really have to change people’s mind. I web; not just the web but even your mobile they just give you technology and then you Uganda for example I met with their min- so much appreciate the opportunity to join phone, you’re worried that your personal just assemble. At the earlier time you can do ister and he said they have not got any high your minister and Nigeria at the pavilion data will be taken by someone else. that but I’m sure that after some time you’ll tech parks yet but they have a lot of innova- and the message is very clear; that Africa Now in Africa we’re proud of the m-Bank- try to develop your own products and serv- tors and tech start-ups but they have not put and indeed Nigeria encourage investment ing, but it seems to me that Africa people ices. them together in a place, like the high tech and try to make sure that the investment is have more confidence to use this as a com- � AT&IT: What prospects do you see park, but they have a lot of projects to sup- put in good hands and with that I can see mercial business than in very developed in Africa’s potentials for IT product port them. So I would like to create a new our business going forward. countries. Definitely this will be the issue manufacturing? environment to invite our member states � AT&IT: What programme does the but I see that this will be addressed and if � HZ: I shared this message with some of and industry members to come together ITU have for the physically challenged we all put this on the table I think solutions my friends in Kenya in 2003 when I attend- with their work on SMEs start-ups, innova- in its development agenda? could be found. I’m very confident that we’ll ed a meeting organised by KCC. They invit- tion centre members to come together to � HZ: ITU has put this in the agenda for protect users’ privacy and also balance the ed some entrepreneurs with me at the table share their ideas of development to perhaps many years. When I was Director for Tel- nations’ security with individual privacy. and they were talking about new technolo- look for opportunities of partnership and to ecom Standardisation Bureau, I participated And provide more benefits than problems. gies and they told me that if they use ITU try to encourage the others to come invest in the WSIS 2005 process in Tunisia. I par- We will protect users’ privacy. standard they can produce some equipment in their products and I firmly believe that in The ITU Secretary-General welcoming the Managing Editor, Africa Telecom & IT, Olubayo Abiodun to ticipated in so many sessions with people � AT&IT: From your vintage position, but unfortunately the product wasn’t look- some countries the young guys have ideas his office at the National Convention Centre, Doha, Qatar with disability and even as early as 2003 what are your expectations for Africa’s ing nice. and they come to the government for sup- I used our limited fund to support to have ICT market in the years ahead? Producing the equipment yourself and port at the beginning and then continue on During our debate at our conference we conference launched this gender equability these kinds of messages to help people bet- � HZ: I believe that people really appreci- using the international standard works. This their own. If we create this kind of environ- talked about sustainability and affordability; in the mainstream program and we awarded ter understand discussions. But then again I ate the Chinese market and the ICT market will create room for efficiency and improve- ment to bring them together, governments how we can offer these services to people a group of distinguished ladies including the see that we’ve not done enough. is developing so rapidly but people also get ment in your production. You should also are very susceptible to support young peo- so that they can afford to pay. These are is- minister of communication technology of I was very pleased at the end of ITU world a lot of ICT products from the Indian mar- come to the market with something that ple to come to this platform. But of course sues we’re trying to work with our members Nigeria. I see that work is in progress but it 2012, where we concluded and agreed in the ket and these two are very big markets in the your people will be able to buy. there are some start-ups that have a strong on, to bring them together in order to bring has not reached a satisfactory point yet. We regulation’s provision talking about com- world, as far as international market is con- The most important thing to me is that finance to travel abroad; if they have money price down and potential powers to our have to work hard to encourage more girls munications to help people with disabilities, cerned and this is because they have about you have the capacity to use ITU standards they do their business but how can we create equipment close to our people at lower pric- to join our ICT profession and also to find because the population of these people is more than 1 billion population each and to develop your own products. In 2013, I such environment to help those who cannot es. I think we’ll be able to do that because in more ways to get more women to occupy getting bigger and bigger. also Africa has more than 1 billion popula- saw products from these countries and I help themselves? That is one of the priorities ICT not like in other eco system, ICT prices leading senior positions. I see that if every- We need some tools to help not only those tion put together and therefore Africa will couldn’t tell the difference from that made I’ll like to focus on this year and I’ve gotten a are always going down so there’s the oppor- body pays attention to this issue, I’m very who already have this physical disability but be the next focus in the world in terms of in Kenya and the one developed in United very good support from ministers of various tunity for us to expect this kind of thing to confident that the situation will improve. also for people to be able to catch up with development. States. countries and they’re very kin to move with happen. � AT&IT: Africa still needs huge in- their local environment, talking about the Of course today, you find that although Your minister offered me the Z-pad and I me on this initiative. � AT&IT: What is the ITU doing to vestments to deal with gaps in its ICT future where we’ll have internet of things, the telecoms business already achieved a lot couldn’t see the difference in the technology � AT&IT: Are you also planning tech redress the gender-digital balance? ecosystem. In what ways can this be trying to have everything connected. You of result in terms of development but still with that from USA or China. I think that hub for tech start-ups? � HZ: The ITU has already addressed this achieved? have new challenge when you find yourself other services and equipment are offered in the next decade we’ll see Africa moving � HZ: Yes. In the world now there’s this issue at several IT conferences. We always � HZ: I was very pleased when I visited the in an environment you cannot manage; all from other continents. In China in the 70s faster than in the last decade and a lot of po- cross point that innovation may not come try to encourage our members to work on Nigeria Pavilion and I heard your minister these are things we have to manage. I’m very and 80s, all their equipment and services tentials will be fully exposed and Africa will from the big guys only but something big these issues of inequality to raise the equal- encourage investment in ICT. She offered a pleased that the ITU family has set this as were provided by foreign companies but show its own way to the world that they can can come in the future from those you never ity between men and women, boys and girls. lot of words for opportunities for investment part of its agenda. now they can offer these things themselves be the development of technology in the heard of because the internet is providing ITU since 2010 recognised the Tuesday of and this is great because we need strong in- � AT&IT: The phenomenon of Inter- and they can even offer the rest of the world world. opportunities for young people to get ac- the last week of April every year as ICT for vestments to keep everyone in a win-win net of Things is raising concerns relat- their products. But in Africa I see that the � AT&IT: How much entrepreneur- cess to various technologies relatively easily. girls day. This is to encourage the ITU fam- situation in the business, this is the only way ing to the invasion of privacy. What is time will come, it’s a potential that is wait- ship skills have been passed to the If they see these various opportunities they ily to bring in more girls to the ICT profes- you can keep the business going. If you’re you view on this? ing to be unleashed, and I’ve already heard young innovators beyond the prize will try to use these to contribute to market sion. We also at the recent plenipotentiary thinking of charity donation, you’ll get very

40 Africa Telecom & IT | February ‘15 41 development. nection gap reduced substantially. We still � HZ: ITU standard is international � AT&IT: How do we translate the have a huge gap here and according to our standard and should cover Africa as well. opportunities in the broadband space statistics we have about 450 million people However, there are particular issues; talking in Africa to a huge strength, notwith- who are not connected yet and the number about electromagnetic effects to our health. standing the challenges of the cross- may be higher and also those technologies I heard that 10 years ago there was a criteria NIPOST to boost Nigeria’s e-Commerce border integration? should be offered to everybody to enjoy not set by international families to be based on � HZ: I know that in Africa you have the only for those in the urban area. Not every- studies in Europe and you know our borders various regional sub-groups and the Cen- body perhaps, but everywhere people are are not the same as Europe, so they want to tral America states seem to be a little bit moving about they should have a space to have some specific attention to our Africa commercial activity. The new collection centres more convenient services to their customers,” individual. But I see that Nigeria has a very use modern technologies. people. But I checked with some medical will therefore serve not only students but also a she said. broad spectrum of the population. She expressed the expectation that the part- large population with a lot of territories and My first term is four years and it seems doctors and experts they said that as far as Konga.com, Nigeria’s largest online store, has nership would enable NIPOST to contribute neighbours; you can use all tactics to get long but very short. For many things at the the human body is concerned there is no already tied up with NIPOST to get its goods its own share to supporting the growth of retail your neighbours to work with you. global level you do not expect that in four much difference. A particular group may to customers. The Minister of Communica- businesses in Nigeria. Though e-Commerce in � AT&IT: What structure does the years you can change it all, but if at the end of have a particular interest but we encourage tions Technology, Dr. Omobola Johnson, while Nigeria has ballooned in less than five years, lo- ITU have in place to support Africa’s my term we see some new progress we’ll be our members to bring these concerns and endorsing the partnership between NIPOST gistics and collection centres have continued to efforts? very happy. I’ll also like to see Africa come suggestions to the ITU family because if and Konga.com, reiterated the government’s be the major drawbacks in the ecosphere. These � HZ: We have our regional office in Addis up with their own industries that are fully you do not do this people will not attend to commitment to transforming NIPOST into a challenges include a shortage of secure and con- Ababa and we also have some area offices in developed at the end of my four-year term. your issues. When you raise your voice you viable, socially conscious and profit-orientated veniently located places where customers can a few countries on the African continent. � AT&IT: In what ways can the chal- encourage the others to work with you to entity. pick-up their purchases, and also return items We also want to focus on this type of coordi- lenges of cyber security be minimised? find solutions. According to her, since the first Post Office that do not meet their expectations. Stakehold- nated development for our continent, trying � HZ: This is already part of our agenda � AT&IT: Many countries in Africa in Nigeria was established over 160 years ago, ers are hoping that the Lagos University collec- to find opportunities to raise development. at the ITU. We have the global cyber secu- are struggling to meet the deadline for NIPOST has been fulfilling its mandate of pro- tion centre and others planned will to address Guinea Bissau and some others for example rity agenda we did in 2007 and we have our digital migration. How do you see this viding universal access to postal services ever logistics and delivery issues experienced by e- are late as far as market economy is con- technical expert groups that look at cyber ending? since. The Minister stated that the Post Office Commerce operators in Nigeria. cerned and they need others to help them security related standards and that’s in the � HZ: I was in Guinea in March 2012 and I had grown to become the most extensive retail It is expected that the NIPOST-Konga col- with regulation. National Telecommunication Regulation was very pleased that as early as March 2012, network in Nigeria. “It is only logical that the laboration will assure customers that the items To have a very powerful Africa compared where we put security issues highly on the Guinea government tried to put this in their e-Commerce industry leverage the experience they have bought are safe and waiting to be col- to the others, you need interconnection agenda. agenda to make sure that in June 2015 they The Postmaster General and facilities of NIPOST to provide secure and lected at a place that is easy to reach. among our capitals, towns and cities and As long as security is concerned, it is not can join the others to have the digital tran- Of Nigeria,Mallam these kinds of things will be very difficult only technical approach that we need to sition. I was pleased with this commitment Ibrahim Mori Baba if everyone just looks at their territory. We solve this matter but we have a lot of laws, and I think it’s necessary for us to come to- need to have a regular connection and I’m moral commitments and law enforcement. gether for a successful transition. It may not really pleased to see that the Smart Africa You have to agree with some principles and be the same case everywhere because I was have four countries sharing the same pa- if you come to this kind of agreement it’s not in Central America and I saw that there’s no THE Nigerian Postal Service (NIPOST) has vilion and the minister of Uganda told me only through technical issues that you solve coordinated approach, each have their own opened a parcel collection centre at the Univer- that they have five priorities and each of the such issues and ITU cannot do that alone. target year. sity of Lagos Post Office, which online retailers priorities is taken by one of the members so ITU only contributes to technical consid- So Africa’s effort to try to work together as feel will boost e-Commerce in the country. The that there is sharing. This is very good if you erations development. But we have to work one family should be appreciated. The date business is valued at $10 billion, with 300,000 ask me and ITU can be part of the initiative with others to really establish a better envi- is very important to us and we encourage web orders being placed each day. if they ask us to. And I agree with you that ronment with some kind of accepted prin- everyone to try to meet up. Those who will The pilot scheme at the University of Lagos the ITU can play an active role here to facili- ciples to see that our cyber space is peaceful, not meet up will suffer because others have will eventually lead to similar rollout to other tate the inter co-operation interconnection reliable, accountable and affordable also. moved on with the digital age and you’ve lost tertiary institutions, which, NIPOST believes, among members of the same continent. � AT&IT: How will ITU assist Afri- the opportunity for them to enjoy the digital provide a captive and sizeable consumer market � AT&IT: What would be your prior- can nations in the integration of ITU age. There are some transition measures that that is digitally savvy and comfortable with buy- ing online. These institutions are also located ity at the end of your four-year tenure? standards in ICT technologies evolu- should help from the ITU but again we en- close to bustling residential areas and centres of � HZ: My priority will be to have this con- tion? courage everyone to meet the deadline.

42 Africa Telecom & IT | February ‘15 43 ular data centre solutions from developing tative and qualitative historical performance and stores all collected data locally and checks and developed nations alike. analysis, trend benchmarking, forward plan- with the central energy data warehouse what In the mobile telecom site arena, we will see ning and real-time monitoring for true energy has been sent versus what has been received, specialised towercos continuing to take over optimisation. But towercos are struggling to so that any data lost during a network outage Trusted data will tip the balance responsibility for tower sites from the mobile understand how to best crunch the data they can be retransmitted. The best monitoring operators. For the towercos, operational cost have in the most useful way, with incomplete systems guarantee 100 per cent complete and savings are key to driving business profitabil- raw numbers and a lack of analysis and re- accurate site reports regardless of communi- between success and failure in 2015 ity, while for the operators its network uptime. porting tools resulting in a lack of trust in the cations breakdowns, thus ensuring that data Power solutions that can reduce diesel-related data that seriously impairs informed business is never lost. expenditure in areas where grid power is un- decision-making. Collected data needs to be analysed or it The wheels are turning ever faster in the ICT industry. For every year, there are reliable or unavailable, while at the same time The answer is a fully integrated intelligent remains a combination of virtually useless new and often unexpected developments. As we face another eventful year, guarantee network uptime, will therefore be solution (like Flexenclosure’s eManager), that numbers. Typically, towercos need to have in much demand and drive significant inno- lets you look across the entire network as well analysis scripts written bespoke in efforts to David King describes which developments had the biggest impact in 2014 and vation. as performing deep dive analyses on a site- try to make sense of enormous workbooks what we can expect from 2015 To ensure that this combination of op- by-site basis. Now, rather than making broad of Excel data compiled by random and dis- erational reliability and guaranteed network decisions based on overall and incomplete parate sensors on site. This is a complicated uptime can be delivered, power equipment network-level results, reliable data is available and incomplete solution compared to hav- vendors will need to develop long-term part- to help drive profitable business planning. ing the analysis and reporting capability fully nerships with managed service companies This monitoring system should be fully in- integrated into the system from day one. This modular data centres have proven to be just as 2015 is the year that prefabricated modular and we will see new energy service compa- tegrated with the power system right from the can be done for the most crucial data points flexible, energy efficient and quick to deploy data centres will truly come of age. As the nies (ESCOs) start to establish themselves in start, rather than adding it after the fact. This like fuel consumption, genset performance, as manufacturers had promised and custom- data boom continues to accelerate globally, many markets. The broader presence of ES- reduces the number of potential failure points power generated, power used, cooling data, ers had hoped, and many ICT companies prefabricated facilities will be increasingly COs will in turn reinforce the green site pow- and the performance of the sensors them- battery use and equipment temperatures, as and mobile operators have chosen this path adopted not only by telcos, but also by colo- er trend, as these companies look to invest in selves can be monitored, with alarms flagging well as logistics data such as diesel refuelling, – ACS Angola, Vodacom Mozambique and cation and global Internet companies world- the most cost efficient power equipment for issues in real time, allowing for immediate ac- generator servicing, cooling filter replace- MTN Côte d’Ivoire being just a few examples wide, driven by their ability to be quickly and generation and sale of power to the telecom tion and resolution. This also allows for the ments, and data required for battery warranty in emerging markets. easily expanded as required. The data centre operators under long term contracts. easier combination of sensor output and sys- issues. Another trend that I predicted was a re- colocation market has been quietly putting As mobile towerco networks increase in tem behaviours into smart alarms, like com- The system also needs to be customisable, newed focus on increasing reliability and re- down roots in Africa and will now enter a both size and the number of tenants hosted, bining voltage generated and power used. allowing users to create bespoke easy-to- ducing operating expenses when powering growth phase – with prefabricated facilities the availability of trusted site data will drive Capturing accurate data at the sensor level read reports that seamlessly overlay with the mobile base station sites. In the last 12 months giving colocation providers the ability to pre- the difference between profitability and fail- is one challenge. Compiling complete data at standard ones, supporting every aspect of we’ve seen that this is indeed a critical combi- cisely time facility expansion, thus allowing ure. To keep control over and reduce network both site and network levels is another. This their business. This provides better opportu- nation for the specialised tower companies them to maintain a high level of utilisation energy costs (which can constitute up to 60 requires connectivity from all the sites to a nities for data analysis, management of opex, that are increasingly taking over ownership (return on capital) while avoiding missing out per cent of operating expenses for tower com- central database, but with network connec- tighter tracking of assets, immediate bad site and management of these sites, as the success on new customers due to a lack of capacity. panies), as well as to prevent system failures, tivity often breaking down, data that has suc- detection, faster response times to site critical of their core business depends much more on At the same time, global Internet com- tower companies need to be able to trust their cessfully been captured at the sensor level can failures and reduced frequency of site visits. the long term reliability and cost efficiency of panies will take increasing advantage of the data and will invest in software-driven intel- then just as easily be lost during transfer. And Reliable data is very important to inform their power equipment than it did to the mo- capital-efficient expansion opportunities ligent monitoring systems that are fully inte- with standard hardware based monitoring major business decisions spanning both net- CEO, bile operators themselves. Implementation and risk-free build process offered by prefab- grated with the power systems right from day systems, there is often no way to recover the work energy operating expenses cost control Flexenclosure, of green power solutions that reduce diesel ricated data centre buildings. And of course, one. These solutions will give site owners and data once it is gone. And whose responsibil- and broader asset investment and manage- David King fuel consumption has been one result of this an additional benefit is that prefabricated data managers the ability to broadly monitor their ity is it? Towercos spend a lot of time fighting ment. These fall into two key categories: op- A YEAR ago, when I was asked which trends trend, as well as efforts to increase telecom centres can offer very high quality and price entire networks as well as to perform deep with monitoring system suppliers about re- erational and investment. Trusted data ena- would have a significant impact on the ICT sites’ reliability and uptime. competitive solutions compared to tradition- dive analyses on a site-by-site basis. This will sponsibility, but is always a discussion that is bles customers to make informed business industry in 2014, I predicted that there would So what’s in store for 2015? al brick and mortar buildings. This previously ensure that they understand the status of their being had too late - whether the monitoring decisions on both accounts. be an increasing interest in prefabricated Here are the three trends I think will have a tended to drive demand mainly in developing equipment at all times, thus giving them full system or the network was at fault, the end � David King is CEO of Flexenclosure, modular data centres to cope with the expect- major impact on the ICT industry in the year economies, but we will now see exponential control over their assets and business. result is the same. of one of the leading data centre and power ed data boom in developing countries. ahead: growth in the adoption of prefabricated mod- Data should be providing accurate quanti- An intelligent system organises, time stamps management systems suppliers. One year later, we can see that prefabricated

44 Africa Telecom & IT | February ‘15 45 specific focus on ways of leveraging them in an African context, with its specific emerged and emerging economies constituents. � Proliferation of connectivity standards: Connectivity standards can be Into the Internet of Things Era: the African Context divided into different categories depending on fundamental characteristics. We consider three Riad Hartani, Frank Rayal, Ananda Sen Gupta and Rolf Lumpe look at the categories: Spectrum requirements (for wireless connectivity; devices can be connected through changing data management dynamics driven by the IoT evolution across wireline technologies); and range, power and cost, which are highly correlated. 3GPP standards industry verticals. They analyse the most significant trends and considerations such as GPRS, UMTS and LTE are licensed band that are likely to shape the emerging services and business models and how access schemes that rely on high power for long range, consequently are relatively expensive in these have an impact on the African eco-system comparison with other connectivity techniques. On the other hand, technologies such as Blue- tooth are meant for short-range communications Figure1. IoT ecosystem reference model in unlicensed spectrum and are low on power They can range from simple identifiers that pro- � Services: This primarily refers to the IoT consumption. Various LPWA proprietary solu- vide specific information on the object, or more tions have also recently emerged, mostly in un- service to the end-customer. The service provider This is essential to enable the business case for new Internet broadband architectures and service complex devices that have the ability to measure licensed sub-1GHz spectrum but also in some leverages all the downstream elements in this IoT applications. The challenge to device manu- models in the emerging world, with a direct impli- (sensors) and process data (gateways). A variety licensed bands. Wi-Fi relies on higher power and value chain: platforms, applications, connectivity facturers is how to differentiate from competition. cations on applications running on top. of IoT devices have emerged in various business provides longer range than Bluetooth albeit at a and devices. Examples would include automotive Our observation in this space is that software � Emergence of long-range low verticals, with the utility / energy business being higher cost. The policy and regulatory environ- automated diagnostic, medical geriatrics and re- applications and platforms, including operating power wireless technologies: We see some of the precursors and more recently, devices ment in the various African countries, shall con- mote power consumption optimisation. systems, are the essential leverage used by device an opportunity for very long range wireless tech- in the health, transportation, home and finance � sider such developments to facilitate the rollout of IoT: Fundamental Observations manufacturers to differentiate (e.g. Apple/iOS, nologies that are low power, low cost and work eco-systems. new connectivity models that would speed up the and Nascent Opportunities Google/Android; Samsung attempt at differen- over long range (Figure 4). Such technologies � Connectivity: Devices can be connected rollout of IoT networks. Africa, although very diverse in terms of dig- tiating through , and in a similar way with are now on the market but are yet to prove their to the network directly or indirectly through an- � Commoditisation of devices: De- ital infrastructure, levels of development and Alibaba and XiaMi’s own platforms design). Such commercial viability. These technologies often other similar device (mesh) or a gateway that is vices and connectivity continue to march on a economic needs, shares three common themes commoditisation, leading to lower cost structure, assume the build out of a parallel IoT network to provisioned to support multiple devices. Con- downward slope of cost reduction (Figure 1). across most of its countries: (a) the requirement shall enable new business models with long term the mobile network. The IoT network is operated nectivity can be through a number of physical Dr. Riad for an aggressive cost structure efficiency to make viability in areas such as health, finance and edu- as a private network on a subscription model of media such as copper, fibre optical cable or over Hartani the deployment on novel technologies a viable cation, all of which having significant socio-eco- per device/message basis for low fixed cost pric- the air through a number of wireless technolo- and sustainable business over time and (b) the nomic impacts in the emerging world. ing. In specific industries such as energy, utilities, gies. Examples of connectivity would include the relatively little legacy in terms of infrastructure � Commoditisation of connectiv- logistics and transportation, such developments traditional 2.5/3/4G networks, as well as various and applications, that makes it ideal for the rollout ity: Low-cost connectivity is essential to enable shall lead to the rollout of new services with clear AS we progressively evolve towards the Internet local area solutions (zigbee, Wi-Fi, etc.) and low of new technologies with little backward compat- the business case of most applications. There are economic benefits. of Things (IoT) era, various industry verticals are power wide area solutions (weightless protocols, ibility constraints and finally (c) a significant por- many variants of connectivity including wireline � Partnerships and alliances to likely to see disruptive transformations, with a di- etc.) among others. tion of the population with little access to various and wireless technologies. The lowest cost wire- win the IoT platform war: The devel- rect impact on their underlying business models, � Applications: These define the use case mainstream digital services that leads to a more less connectivity leverages license-exempt spec- opment of IoT solutions is inherently about the enabling technologies and competitive environ- of the device and include all the necessary func- urgent adoption of new services innovations, trum over short distance (Figure 3). Wearables, development of ecosystems around offered so- ments. At the same time, this is opening up new tions required to make use of the device for the versus what we would likely find in more devel- for example, leverage Bluetooth to connect with lutions. Such ecosystems are built via tight and opportunities for new ways of delivering novel intended purpose including the hardware and oped regions of the world where such innova- smartphones. Alternatively, some consumer de- lose partnerships between the various industry digital services. The African context, with its own software architectures. IoT application stores are tions would be a substitution to existing services. vices rely on longer-range licence-exempt tech- players. The leading players will aim at controlling set of diverse specificities, forms an ideal setting emerging with applicability to specific industry Examples include the recent successful adoption nologies such as Wi-Fi for greater range. Central the ecosystem by providing a platform that would for leveraging such advancements, with poten- verticals, with the health wearable devices being of Internet payment/banking and mobile health hubs for connectivity and routing are deployed to host IoT applications, and over which IoT services tially profound socio-economic impacts. a recent example. Platforms: devices and con- models. tether over longer distances for remote control and will be built (Figure 5). As in any platform model, � Devices: Sensors, identifiers and gateways nectivity requires a platform to provide a service. The development of the IoT eco-system has monitoring. Where mobility is required, wireless such as those in smartphones and the Internet, are types of IoT devices used to collect and convey Platforms are used to provision devices, manage been progressive and will continue evolving over technologies in licensed spectrum can be imple- the key is to increase the adoption of the platform. information. Devices are designed and deployed and control them. They are used for billing and the next decade and beyond. Some of the most mented albeit at a higher cost. Such connectivity Various models are being put in place to achieve to meet the application use case requirements. fraud detection. relevant considerations are highlighted, with a Figure 2. Device commoditisation commoditization, shall allow the deployment of this, via the development of open source IoT con-

46 Africa Telecom & IT | February ‘15 47 and monthly service fees. However, the data traf- adverse weather events. The water utility expects fic revenue that such a solution generates is likely to save on scheduled repair and overall mainte- to be relatively small in comparison. nance cost, allowing a superior business case for In a similar fashion, a connected health solu- scalable rollouts. tion would include the connectivity network as c) Health Care well as the platform to manage the solution, inter- Health care probably has the biggest applica- facing with the various stakeholders in the health tions of IoT. From remote tracking of patients to solution value chain. The story is the same for predict onset of acute symptoms to streamlining many other IoT applications: the real opportunity patients’ flow through emergency department in for mobile operators lie in moving up the value the hospital, there are numerous applications of stack and away from the simple provision of data IoT supported by Big Data analytics. For exam- carriage services. The mobile network operator ple, sensors that snap on to an Asthma inhaler and has to provide the connectivity and IoT manage- users can voluntarily opt-in to track when and ment for value added. IoT solution provider (ei- where they use their inhalers. The data collected ther over-the-top IoT service provider or mobile is analysed and presented back to the Asthma pa- service provider who offers IoT solutions) has to tients through a mobile app to better understand integrate all the components of the ecosystem for triggers like pollen counts that may affect their Figure 3. Commoditisation of wireless technologies the end-to-end IoT solution. MVNO and OTT Figure 5. Value appropriation through platforms symptoms. models, with the right cost structure would likely The overall benefit potential is huge with early nectivity and interworking software, open APIs suited for the device and applications required for emerge to tackle specific services needs in the studies reducing the number of people with un- to plug into the platforms, and SDKs to develop the African eco-system. emerging world. lems, at optimizing the existing business logic and ing for instance proactive collection attempts. controlled Asthma by about 50 per cent. The po- services on top of the platform. � Emergence of new MNO and � Extracting value through data augment it with new functionalities over time. Loan recipients can be incentivized with lower tential of such solutions to reduce overall health Various contenders are already in the game MVNO/OTT service models: A key sciences: As businesses evolve to leverage the Such data science models in IoT environments rates and fees to allow for opting into IoT sensors care costs is huge. Another example is an ingest- to achieve the control of IoT platforms, includ- dynamic of the IoT market that needs to be huge amounts of data assembled – mining and would form the basis for new solutions and serv- on their equipment. This is similar to what is in ible sensor that can be swallowed. An example ing the Internet platform players (Google, Apple, highlighted is that the majority of ‘value’ in any learning through such data as well as optimising ices offering that can only benefit societies in the use today in some personal auto loans, where an would be a pill that gets energy by reacting to Amazon, etc.), the lead industrial players with a IoT application lies not in the simple carriage of communication between those producing it and developing world. IoT can assist (thereby reducing the cost) in the stomach acids and transmits useful information � IoT enabled Innovations – specific vertical focus (e.g. GE for industrial In- data, but in the provision of an overall service. For those using it brings significant opportunities repossession of an automobile after a default. In to a mobile phone through a patch worn on the Illustrative Use Cases in an African ternet), and to some extent certain mobile opera- example, a wide-area wireless enabled home se- around IoT business models. As such, the desired auto-insurance, IoT can provide more valuable body. All in all, the Internet of Things era has had Context tors with a strategy towards Internet-scale OTT curity system represents a significant revenue op- goal is to create a solid foundation architecture driving performance information that insurance various false starts, as far as mass adoption and deployment. This opens up the opportunity to portunity for a mobile or virtual mobile operator, that is able to provide these optimal functional A large number of digital solutions in various companies can use to provide discounts to driv- progression to mainstream. develop optimized platforms that would be best including revenues from device sale, installation, capabilities and a platform to overlay data science business verticals are seeing an aggressive inser- ers. The recent convergence of various trends in- applications. This would include the various lay- tion and leverage of IoT components in their val- b) Industrial internet cluding innovation in low power and low cost ers in the data value chain – optimised process- ue chain. This includes mobile internet, financial Data associated with industrial Internet that devices technologies, scalable network connec- ing through an acceleration of migrations to the applications, education, energy and healthcare. is, data created by Industrial equipment such as tivity as well as mainstream cloud and big data cloud, scalable data management leveraging big Some of them are illustrated below, with appli- wind turbines, jet engines, and MRI machines processing models, have opened a new window data models and the use of customised data sci- cations soon to be seen in various eco-systems – holds more potential business value on a size- for the emergence of IoT based value add serv- ences solutions for business intelligence creation. within Africa. adjusted basis than other types of Big Data associ- ices. A specific focus on ways of taking advantage This is complemented by a fundamental re-archi- a) Financial services ated with social web, and consumer internet. The of this IoT evolution in an African context, with tecture of IT models within the businesses inte- One of the impacts of IoT in financial services is typical use cases of IoT in the Industrial Internet its specific emerged and emerging economies is grating IoT models. that it will reduce the cost of monitoring a loan in are to collect equipment performance data as part analysed in this paper. It is illustrated via various We are now witnessing the emergence of en- asset-based lending especially machinery/equip- of Asset performance management. This data real world scenarios in the areas of health, finance hanced (and new in some cases) set of machine ment loans and inventory based financing. Asset can be organized in the Cloud and analysed for and logistics. learning and data mining algorithms, specifically based loans typically cost more than traditional insights that can predict breakdowns and other We believe that this evolution will provide the focused on clustering and predictive modelling loans and sometimes include additional audit kinds of occurrences. Industrial companies can appropriate framework for new services creation, in high dimensional spaces based on imprecise, and due diligence fees. With proper agreements boost productivities of their operations and which will increase in strategic importance and uncertain and incomplete information, efficient and understanding between the lender and loan equipment by up to 30 per cent by introducing becomes a major component of business com- statistical data summarisation and features extrac- recipient, IoT can monitor the functional charac- IoT and Big Data based analytics to monitor and petitiveness and socio-economic development tion algorithms as well as large-scale real-time data teristics of the equipment or provide tracking of manage their assets. Recent examples include the moving forward. stream management. These tools will be at the inventory. This can not only reduce the cost of rollout of smart meters and sensors in water util- � Dr Riad Hartani, Frank Rayal, Ananda core of the processing engines being commercial- monitoring for the bank but would reduce the ity businesses on their various operational assets Sen Gupta, Rolf Lumpe all work for Xona ized or running in open source environment, and overall risk and provide advance warnings on (pipes, treatment facilities), with analytics lever- Partners in Silicon Valley in the USA. Figure 4. IoT Wireless connectivity will aim, when applied to specific industry prob- cash flow issues that may lead to default, trigger- aged to predict critical situations such as leaks and � This article is exclusive to us.

48 Africa Telecom & IT | February ‘15 49 LG Electronics and Mercedes-Benz team up for self-driving cars FOLLOWING in footsteps of Google and Vision technology. The 6D Vision technology is Audi, South Korean electronics manufacturer, named for its ability to not only process 3 dimen- LG and German car manufacturer Mercedes- sions but also motion, direct, and speed. Benz have announced that they are partnering “Mercedes-Benz is the ideal partner for LG to create “next generation camera systems” for as both companies share a vision of how ADAS automobiles. LG reportedly told The Verge that technologies can improve the wellbeing and lives it would “provide the core components of self- of all consumers,” said Woo-jong Lee, president driving cars from Mercedes-Benz in the future”. and CEO of the LG Vehicle Components Com- The new systems will make use of cameras, algo- pany. “As the automobile evolves from a mechani- rithms and computing power to assist the driving cal to an electronic system, LG will be in the per- experience. fect position to contribute its experience to the The new system will be based on LG’s ADAS exciting automotive industry.” or Advanced Drive Assistance System. The LG is aiming to be in all spaces of automotive ADAS system features technologies that include electronics as it will also bring home entertain- new range of audio, visual and navigation system Forward-looking Single and Stereo Camera Sys- ment and Mobile technology to Automobiles. solutions for connected cars at the Google I/O tems for Autonomous Emergency Breaking, Lane LG’s mobile technology makes use of Android. conference. The system based on Android tech- Keeping Assist, Traffic Sign Recognition, High Recently, Google announced the opening up nology allowed drivers to view and control their Beam Assist, Pedestrian and Bicyclist Protec- of its developer programming interfaces for An- favorite smartphone navigation apps and search tion, Driver State Monitoring for eye positioning, droid Auto. Both Google and LG are members of their mobile phone contacts to make calls and drowsiness level, and other biometric states, and the Open Automotive Alliance. LG officially an- send text messages through the in-car display. surround view monitoring to assess with parking nounced its involvement in the Alliance in June The Mercedes-Benz and LG announcement only maneuvers. LG will license Mercedes-Benz’s 6D last year. At the time, the company showcased a covered the Advanced Drive Assistance System Google may build Android directly into cars Thilo Koslowski, vice president and automo- vincing car manufacturers to integrate its services tive practice leader at Gartner, did not know into their vehicles. about Google’s plans but said they would provide Mark Boyadjis, an analyst at IHS Automotive, “a much stronger foothold for Google to really be noted: “Automakers want to keep their brand ap- part of the vehicle rather than being an add-on.” peal and keep their differentiation.” While vehicles with Android Auto are set to Google will have to improve its performance debut in 2015, Google has not commented on and stability, one of the sources said, if it wants the new capabilities, although sources say they to persuade car companies, including ensuring could be rolled out with the next version of An- the software powers up instantly when the car is droid in a year or so. turned on, rather than take time like smartphones It is possible that Android becomes the stand- do. ard system for ‘connected car’ entertainment and Google has signed on several manufacturers GOOGLE is working on an Android version navigation features like music and apps, if Google for its Open Automotive Alliance and its Android that would be built into cars, enabling drivers to is successful. It would also give the company ac- Auto product, such as Nissan and Hyundai. Ap- use the internet without the need for plugging in cess to data that could be useful for advertisers, ple introduced its rival software CarPlay in March smartphones, as is the case with its current An- such as gas usage, speed and location. last year. Both have the capability of projecting droid Auto software, sources have told Reuters. However, one of Google’s hurdles may be con- smartphone apps onto car screens.

50 Africa Telecom & IT | February ‘15