|
Ghana: Celtel to buy government stake in Westel |
|
Tuesday, 31 July 2007 |
The Celtel Communication Group is currently negotiating with the government of Ghana to purchase a 66.34% stake in Western Telesystem Company (Westel), the second national operator.
Sources suggest that Celtel is offering between US$ 120 million and US$ 150 million for the government's Westel stake. The Ministry of Communication recently indicated that negotiations between Kinz Telecom and the government for the sale of the Westel stake have failed. The government had reached an understanding with Kinz to pay US$ 250 million for its stake but the parties could not agree on a final share price. In addition, Kinz could not meet the government’s requirement to pay the US$250 million within 45 days. It was therefore government's decision to opt for the second company on the list, Celtel Communications. In March, Celtel, African Soft and Kinz Telecom and Etisalat Communication were selected from seven companies to submit presentations on their technical and financial competence to buy the Westel stake.
Westel was awarded the second national operator license in 1997 and granted a five-year duopoly on basic telecommunications services along with incumbent Ghana Telecom. The company is licensed to provide fixed and wireless telecommunications services throughout Ghana, including basic phone service, mobile, international long-distance, pay phones, data communications, private networks and satellite communications. Westel launched service in 1998.
Originally a wholly-owned subsidiary of the Ghana National Petroleum Corporation, Westel became a publicly traded company following the opening up of Ghana’s market. Western Wireless International of the U.S. took a majority stake, but in its five year duopoly period installed fewer than 3,000 of the 50,000 lines stipulated by its concession. In January 2006 WESTEL became a fully owned state enterprise again following the government's acquisition of the two-thirds equity stake held by ACG Telesystems Ghana.
Celtel started mobile operations in 1998, and since then has built networks in 15 African countries, under licenses that cover more than a third of the population of Africa. The original holding company, MSI Cellular Investments, changed its name to Celtel International in January 2004.
Source: Ghanaian Chronicle - WDR/Intelecon Regulatory News.
|
|
|
Chile: Subtel to subsidise two projects in south |
|
Friday, 27 July 2007 |
Subtel, Chile’s telecommunications regulator will use the country’s Telecommunications Development Fund (TDF) to subsidise two infrastructure projects in the south of the country.
The first project involves the installation of fibre-optic network from Puerto Natales to Cerro Castillo, the latter currently lacks any mobile telephony or internet service. The second project entails the installation of mobile towers in Torres del Paine National Park, a popular tourist destination.
Subtel will soon issue a request for proposals inviting private companies to bid on the projects. The amount of the available subsidies was not announced, but Subtel head Pablo said that it has a US$ 17 million budget for universal access projects.
Subtel is also subsidising a US$ 4.66 million fibre-optic backbone project to connect the city of Puerto Montt to Chiloe Island and Coyhaique in Chile’s far south. Subtel awarded local operator Telsur US$ 2.58 million in subsidies for the project.
Source: Business News Americas - WDR/Intelecon Regulatory News. |
|
|
South Africa: Government attempts to improve country’s infrastructure |
|
Friday, 20 July 2007 |
South Africa’s government has committed to revitalising the country’s telecommunications infrastructure and improving technology skills in recognition that technology plays a significant part in overcoming poverty.
Several government initiatives addressing the information and communications technology (ICT) sector are being grouped under a new program called “ICT for All”. Deputy Communications Minister Radhakrishna Padayachee has called on all companies in the sector to back the government’s goals.
Part of the new program will be overhauling the existing system of telecentres after the failure of many computing and telephony centres in rural areas. In addition, the government is investigating the One Laptop per Child scheme developed by Nicholas Negroponte. Steps are also being taken to develop a better broadband strategy.
Padayachee said: "The programme has been brewing for the last six to eight months and now we have put it together and set up an institute to drive it."
Housing numerous technology initiatives under the ICT for All banner would avoid duplication of effort, Padayachee said. The department was already working on policy changes to lower telecommunications costs, modernise and expand technology infrastructure and improve ICT skills.
"There is indeed a tremendous ICT skills deficit in this country," he said. "If South Africa is to be a leading nation in the knowledge economy we have to overhaul our policies, infrastructure, human capital and research and development. What is needed is nothing short of a revolution in ICT to make South Africa a winning nation among the global best."
Source: Business Day - WDR/Intelecon Regulatory News. |
|
|
Kenya: Telkom wireless service creates controversy |
|
Wednesday, 18 July 2007 |
Telkom Kenya has dismissed accusations from rivals that it is offering mobile service before acquiring the appropriate license.
The dispute over Telkom's mobile license is part of the ongoing competitive battle being waged by Kenya’s main telecommunications operators. Telkom's chief operating officer, Daniel Kibira, said the company has a total of nine licenses and is authorised to operate a wide range of telecommunication services.
"We are awaiting a decision by the Telecommunications Commission of Kenya (CCK) but we were licensed to operate many services long before even (specific) mobile licenses were given," Kibira said.
Celtel started the latest round of discussions among operators when it accused the government of having a double standard by allowing Telkom to operate without a mobile license.
"Why is it that Telkom is allowed to operate without a license? Why is it they do not pay taxes," asked John Murray, Celtel’s managing director.
Kibira says that the accusations should be ignored and that the issue is being addressed by CCK. The accusations followed Telkom's surprise launch of new tariffs and products over its new 3G wireless network, a response to the competitive struggle taking place between Celtel and Safaricom. The operators have a combined subscriber base of about nine million - 6.8 million of those subscribers are with Safaricom.
Telkom announced it has signed up 70,000 subscribers since it launched its wireless network, which uses CDMA2000 technology, as opposed to its two rivals, which operate GSM networks.
Despite being competitors, Telkom Kenya owns 60% of Safaricom. The Government is due to sell its holdings in both Safaricom and Telkom.
Kibira explained that US$ 51.4 million would be spent to upgrade the Telkom network and expand its coverage. Telkom launched its wireless network after having its underground cables vandalised. Last year alone, vandals cost the company around US$ 7.4 million.
Source: East African Business Week - WDR/Intelecon Regulatory News. |
|
|
Benin: Government suspends two mobile operators |
|
Friday, 13 July 2007 |
|
Benin’s telecommunications regulator suspended the networks of two of its four mobile operators on Thursday, cutting off almost 1 million subscribers in a contract dispute.
The regulator silenced the networks of MTN and Atlantique Telecom, which is controlled by Emirates Telecommunications Corp. (Etisalat). The regulator, the Transitional Post & Telecommunications Regulatory Authority (ATRPT) declared null and void the name changes from Telecel to Moov and from Areeba to MTN.
"It appears, following a study of the dossiers supplied by the two operators, that this is indeed a substitution of the operator, and not a change of trading name as claimed by Telecel Benin SA and Spacetel Benin SA," ATRPT said in a statement.
The regulator had suspended the companies' licenses on Monday and threatened to shut down their networks if they did not sign new contracts including a $50 million, 500% increase in the license fee by Thursday evening. The regulator says the new contracts are needed because both networks had changed their names and operators without its permission.
MTN said it was committed to continued engagement with the authorities in Benin to find an amicable resolution to the current regulatory uncertainty. MTN, whose Benin network was previously operated by Spacetel Benin under the Areeba brand, had 514,000 subscribers in Benin in March. Atlantique Telecom's Moov network, previously part of the Telecel group, has around 450,000. Benin has approximately 8 million people.
The regulator said one operator, Libercom, a subsidiary of state-owned fixed-line provider Benin Telecom, had undertaken to pay the new license fee, and the other operator, Bell Benin, would do so soon. Source: Reuters - WDR/Intelecon Regulatory News. |
|
|
Argentina: Ombudsman to file lawsuit against ministry |
|
Wednesday, 11 July 2007 |
Argentina's ombudsman Eduardo Mondino intends to sue SeCom, Argentina’s telecommunications ministry, over a resolution on universal service funding.
Mondino's lawsuit relates to resolution 80/2007 that outlines the government’s obligation to establish a fund to finance telecommunications infrastructure in areas with limited coverage. The resolution was published in the official gazette on June 14 and stipulates that the fund must be launched in July.
Mondino criticized the resolution because the operators' obligation to contribute 1% of their revenues to a universal service fund technically commenced with decree 764, published in 2001. Mondino estimates that operators owe US$ 241 million for the time between the 2001 decree and the 2007 fund resolution, yet there is no mention of this figure in SeCom's 2007 resolution.
Source: Business News Americas - WDR/Intelecon Regulatory News. |
|
|
Benin: Government suspends two mobile operators |
|
Monday, 09 July 2007 |
The government of Benin has suspended two of the country’s four mobile operators and is threatening to shut off their networks on July 12 if they do not sign new contracts that include a 500% license fee increase.
Benin's Telecommunications Regulation Authority issued a statement suspending the operating contracts of MTN and Atlantique Telecom's Moov service effective July 9, saying both companies had changed their names without its permission. Both networks are allowed to continue offering service until July 12, when they must cease operating unless they sign new contracts, the regulator said.
The regulator believes new licenses are necessary since MTN renamed the Areeba network under its MTN brand, and Atlantique Telecom, controlled by Emirates Telecommunications Corp. (Etisalat), relaunched service under the Moov brand. The new licenses include an increase in the one-time license fee, which the regulator plans to impose on all four mobile operators. The regulator, created by the government of President Thomas Boni Yayi who was elected in 2006, said in May it planned to increase the operator fee to US$ 61.8 million from US$ 12.4 million under the existing contracts. The increase is retroactive, meaning each company would pay an additional US$ 51.5 million to the state, although no deadline for payment has been set.
Benin's two other mobile operators are locally-owned Bell Benin, and Libercom, a subsidiary of state-owned fixed-line provider Benin Telecom.
Source: Reuters - WDR/Intelecon Regulatory News. |
|
|
Kenya: Government Seeks Safaricom IPO Advisors |
|
Saturday, 07 July 2007 |
Kenya’s treasury is seeking advisors for the initial public offering of a 25% stake in mobile operator, Safaricom.
The government will select a lead transaction advisor, who would make recommendations on pricing and a sale timeline. Other advisory services sought include a lead sponsoring broker. As a result of the IPO, a dozen jobs are likely to be created as qualified staff will be needed to oversee the offering.
The sale is part of the Government's divesture programme, aimed at raising over US$ 665 million from the sale of its assets to the public in order to cover its 2007-2008 budget deficit. The Government expects to raise US$ 529 million from the Safaricom share sale, which will go to reducing the estimated US$ 1.66 billion budget deficit - the largest in Kenya’s history. The 25% stake in Safaricom will reduce the Government's current 60% ownership of Safaricom, currently held by Telkom Kenya.
The Safaricom IPO is likely to be one of the largest in Kenya's history. In the year ended March 31, Safaricom recorded a pre-tax profit of US$ 260 million to claim the position of most profitable company in East Africa.
Source: The Nation - WDR/Intelecon Regulatory News.
|
|
|
Puerto Rico: Regulator reduces universal service fund contribution rate |
|
Friday, 06 July 2007 |
The Federal Communications Commission (FCC) has lowered the Federal Universal Service Fund (FUSF) rate for Puerto Rican telecommunications providers.
The FCC lowered the rate to 11.2% from 11.7% effective July 1 after its quarterly review. The rate changes the monthly charge on all telecommunications services, from mobile telephony to broadband services. The decrease follows an increase at the beginning of the second quarter from 9.7% to 11.7%.
The resources collected for the FUSF are used to subsidise telecom services for clients in rural areas, as well as for schools, hospitals, libraries and low-income families. The universal service fund has been in place in Puerto Rico since March 2003.
Source: Business News Americas - WDR/Intelecon Regulatory News. |
|
|
Bolivia: Government approves measures to expand rural service |
|
Friday, 29 June 2007 |
|
The Bolivian government has published a decree that creates incentives for telecommunications providers to extend service to rural areas.
Decree number 29174 allows the direct awarding of concessions for rural services, licenses for radio spectrum use, exemption from spectrum usage fees for rural projects, the interconnection of rural networks with other operators' networks, and special interconnection rates for operators involved in rural projects.
Entel, Bolivia’s largest operator, plans to extend mobile service and internet access to over 130 communities in rural Bolivia. Entel is also deploying infrastructure in rural areas as part of a connectivity agreement with the government, called Vivir sin Fronteras. Source: Cellular-News - WDR/Intelecon Regulatory News. |
|
|
