Airtel Nigeria’s Director of Regulatory Affairs and Special Projects, Osondu Nwokoro, has identified the exclusion of Telecommunications Operators (TELCOs) from playing very active roles in the implementation of mobile money as a major drawback to the uptake of the service.
Nwokoro made this submission, recently, in Lagos at NigeriaCom, an international ICT workshop that enjoys wide participation from prominent Mobile Network Operators (MNOs), Original Equipment Manufacturers (OEMs) and other key players in the ICT value chain. He said that almost three years after the issuance of the first Mobile Money licences, only about 2.2% of adults with bank accounts have subscribed to the service while the unbanked population is yet to be reached.
According to him, Nigeria is yet to leverage her huge population and subscriber base of over 120 million to unlock Mobile Money potentials, saying the performance of the initiative is still far below expectation.
In a paper entitled, Low Mobile Money Uptake in Nigeria: Causes and Remedies, Nwokoro also identified lack of finance, absence of consistency in technical specifications, low public awareness and few agents availability as other causes for the slow uptake of the Mobile Money service.
To reverse the trend and improve the uptake of the Mobile Money initiative, he advised all stakeholders to collaborate to design, fund and implement a comprehensive, all segment inclusive Mobile Money public enlightenment programme.
He also urged the Central Bank of Nigeria (CBN) to consider establishment of an intervention fund for the non-bank led Mobile Money Operators – like was done in the Agriculture Sector.
The Airtel Regulatory Director also called on the Federal Government to consider granting Mobile Money industry fiscal incentives, such as tax holidays and import duty waivers among others.
He said better collaboration between the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) is extremely important to the success of the initiative.
He, however, advocated a review of existing regulatory framework by empowering stakeholders capable of driving service uptake, saying the move will ensure the realization of Federal Government goal on financial inclusion.
"Telcos have demonstrated capability to address the constraints associated with the slow uptake of Mobile Money service. Therefore, the regulatory framework should be reviewed to allow Telco involvement, to conclusively eliminate these constraints," Nwokoro submittedLagos – Airtel Nigeria’s Director of Regulatory Affairs and Special Projects, Osondu Nwokoro, has identified the exclusion of Telecommunications Operators (TELCOs) from playing very active roles in the implementation of mobile money as a major drawback to the uptake of the service.
Nwokoro made this submission, recently, in Lagos at NigeriaCom, an international ICT workshop that enjoys wide participation from prominent Mobile Network Operators (MNOs), Original Equipment Manufacturers (OEMs) and other key players in the ICT value chain. He said that almost three years after the issuance of the first Mobile Money licences, only about 2.2% of adults with bank accounts have subscribed to the service while the unbanked population is yet to be reached.
According to him, Nigeria is yet to leverage her huge population and subscriber base of over 120 million to unlock Mobile Money potentials, saying the performance of the initiative is still far below expectation.
In a paper entitled, Low Mobile Money Uptake in Nigeria: Causes and Remedies, Nwokoro also identified lack of finance, absence of consistency in technical specifications, low public awareness and few agents availability as other causes for the slow uptake of the Mobile Money service.
To reverse the trend and improve the uptake of the Mobile Money initiative, he advised all stakeholders to collaborate to design, fund and implement a comprehensive, all segment inclusive Mobile Money public enlightenment programme.
He also urged the Central Bank of Nigeria (CBN) to consider establishment of an intervention fund for the non-bank led Mobile Money Operators – like was done in the Agriculture Sector.
The Airtel Regulatory Director also called on the Federal Government to consider granting Mobile Money industry fiscal incentives, such as tax holidays and import duty waivers among others.
He said better collaboration between the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) is extremely important to the success of the initiative.
He, however, advocated a review of existing regulatory framework by empowering stakeholders capable of driving service uptake, saying the move will ensure the realization of Federal Government goal on financial inclusion.
"Telcos have demonstrated capability to address the constraints associated with the slow uptake of Mobile Money service. Therefore, the regulatory framework should be reviewed to allow Telco involvement, to conclusively eliminate these constraints," Nwokoro submitted
Source:Codewit
Monday, 30 September 2013
SA Internet population close to 14 million
Research reveals that 39% of South African adults have access to the internet, SA internet users grew by over 2 million in last 12 months says DMMA
The research conducted by the Digital Media and Marketing Association (DMMA) and Echo Consultancy estimates the total internet population in South Africa in 2013 to be almost 14 million users. This represents 39% of the adult population.
The figure was derived from the All Media Products Survey (AMPS) and independently validated by Effective Measure (EM), the DMMA’s official measurement provider for digital audience data.
This comes as good news for advertisers, as it reflects a larger internet audience than basic AMPS levels.
"We needed to provide our members with a more realistic view of the total internet population in South Africa," said Jarred Cinman, Chair of the DMMA Steerco.
"The validated figure of 14 million users is significant as it indicates that a greater percentage of South Africans are consuming media online than previously reported."
Calculating Internet users in SA
"EM derives its figures through tagged sites, which count Unique Browsers. Some users access the internet from more than one device –i.e. laptop, mobile phone and home computer," explained Peter Langschmidt, the Managing Director of Echo.
"EM will count this as three Unique Browsers, but marketers are interested in reaching people not machines. Therefore, we weighted EM’s Unique Brower data against AMPS’ multiple device usage and the EM panel to translate the number from browsers to people."
"In the case of internet penetration in South Africa from AMPS, there is most definitely respondent confusion regarding internet usage, with many respondents not equating websites accessed via their mobile phones with internet browsing. Through recoding AMPS to take mobile access into account, we were able to provide a figure that matched the EM online universe," said Langschmidt.
This methodology can be simplified into three steps:
The time periods of the AMPS and Effective Measure data sets were matched, going back to June 2012.
EM’s Unique Browsers accessing the internet at that time was 15 million. This was reduced by 23% using the EM panel and AMPS multiple device calculations, to arrive at a figure of 11.6 million monthly internet users.
The AMPS figures were recalibrated to include web browsing via mobile phones as well as computers, which increased the numbers from 8.6 million to 11.3 million monthly internet users.
"In the middle of last year EM reported that there were 15 million Unique Browsers. In the last year this number has grown to 20 million. By applying the derived formula, we can say that that these 20 million Unique Browsers represent just under 14 million adult users," said Langschmidt.
"This is great news for all of our publisher members in particular as it is predicted that ad spend across online channels will grow as a result, as marketers will attribute greater weight to digital media," said Cinman.
Source: Businesstech
The research conducted by the Digital Media and Marketing Association (DMMA) and Echo Consultancy estimates the total internet population in South Africa in 2013 to be almost 14 million users. This represents 39% of the adult population.
The figure was derived from the All Media Products Survey (AMPS) and independently validated by Effective Measure (EM), the DMMA’s official measurement provider for digital audience data.
This comes as good news for advertisers, as it reflects a larger internet audience than basic AMPS levels.
"We needed to provide our members with a more realistic view of the total internet population in South Africa," said Jarred Cinman, Chair of the DMMA Steerco.
"The validated figure of 14 million users is significant as it indicates that a greater percentage of South Africans are consuming media online than previously reported."
Calculating Internet users in SA
"EM derives its figures through tagged sites, which count Unique Browsers. Some users access the internet from more than one device –i.e. laptop, mobile phone and home computer," explained Peter Langschmidt, the Managing Director of Echo.
"EM will count this as three Unique Browsers, but marketers are interested in reaching people not machines. Therefore, we weighted EM’s Unique Brower data against AMPS’ multiple device usage and the EM panel to translate the number from browsers to people."
"In the case of internet penetration in South Africa from AMPS, there is most definitely respondent confusion regarding internet usage, with many respondents not equating websites accessed via their mobile phones with internet browsing. Through recoding AMPS to take mobile access into account, we were able to provide a figure that matched the EM online universe," said Langschmidt.
This methodology can be simplified into three steps:
The time periods of the AMPS and Effective Measure data sets were matched, going back to June 2012.
EM’s Unique Browsers accessing the internet at that time was 15 million. This was reduced by 23% using the EM panel and AMPS multiple device calculations, to arrive at a figure of 11.6 million monthly internet users.
The AMPS figures were recalibrated to include web browsing via mobile phones as well as computers, which increased the numbers from 8.6 million to 11.3 million monthly internet users.
"In the middle of last year EM reported that there were 15 million Unique Browsers. In the last year this number has grown to 20 million. By applying the derived formula, we can say that that these 20 million Unique Browsers represent just under 14 million adult users," said Langschmidt.
"This is great news for all of our publisher members in particular as it is predicted that ad spend across online channels will grow as a result, as marketers will attribute greater weight to digital media," said Cinman.
Source: Businesstech
How mobile is lifting South Africa’s GDP
South Africa’s GDP per capita is anticipated to grow by US$241 a year between 2010 and 2020, due to an increase in mobile phone subscriptions.
This is the finding of a study implemented by the Cologne Institute for Economic Research on behalf of the Vodafone Institute for Society and Communications.
Entitled "Mobile technologies – The digital fabric of our lives", the report says that mobile subscriptions’ contribution to South Africa’s per capita GDP will be 11% (2010-2012), 3.6% (2012-2015) and 2.4% (2015-2020).
The report puts the country’s GDP per capita at $8,070.
The report notes that South Africa is probably the African country whose mobile phone adoption is the one most similar to figures in Europe. As early as 2000, 19% of South Africans had a mobile phone subscription. In 2010, statistically every South African had a mobile phone subscription.
The experts surveyed for the study estimate that this figure will grow to 165% in 2020.
Interestingly, the report noted that, unlike many other markets, South Africans like Blackberry handsets as they enable Blackberry Messages (BBM), which are free of charge.
The report notes further that, though South Africa’s mobile market is one of the most developed in Africa, there are some draw-backs.
Broadband penetration is still very low due to its high costs and bad infrastructure. In 2010, less than 2% of the population used a DSL connection.
"Instead many people used and continue to use mobile broadband. The dominance of mobile broadband will grow in the future due to high investments in network infrastructure," the report said.
In 2010, only 1 in 100 inhabitants had a fixed broadband subscription. The report says that this will only grow to 3% in 2020.
"By 2020 a positive effect will have been observed in all surveyed countries. Mobile phone adoption will continue to make a significant contribution to economic growth," said Dr. Karl Lichtblau, MD of the research and consultancy services company, IW Consult.
"However, after the mobile communications boom of recent years, a decline in its contribution to economic growth is to be expected in the emerging markets in the years up to 2020. This is a normalisation effect that sets in when the initial high contribution to growth during the first years of mobile communications ends."
Source: Businesstech
This is the finding of a study implemented by the Cologne Institute for Economic Research on behalf of the Vodafone Institute for Society and Communications.
Entitled "Mobile technologies – The digital fabric of our lives", the report says that mobile subscriptions’ contribution to South Africa’s per capita GDP will be 11% (2010-2012), 3.6% (2012-2015) and 2.4% (2015-2020).
The report puts the country’s GDP per capita at $8,070.
The report notes that South Africa is probably the African country whose mobile phone adoption is the one most similar to figures in Europe. As early as 2000, 19% of South Africans had a mobile phone subscription. In 2010, statistically every South African had a mobile phone subscription.
The experts surveyed for the study estimate that this figure will grow to 165% in 2020.
Interestingly, the report noted that, unlike many other markets, South Africans like Blackberry handsets as they enable Blackberry Messages (BBM), which are free of charge.
The report notes further that, though South Africa’s mobile market is one of the most developed in Africa, there are some draw-backs.
Broadband penetration is still very low due to its high costs and bad infrastructure. In 2010, less than 2% of the population used a DSL connection.
"Instead many people used and continue to use mobile broadband. The dominance of mobile broadband will grow in the future due to high investments in network infrastructure," the report said.
In 2010, only 1 in 100 inhabitants had a fixed broadband subscription. The report says that this will only grow to 3% in 2020.
"By 2020 a positive effect will have been observed in all surveyed countries. Mobile phone adoption will continue to make a significant contribution to economic growth," said Dr. Karl Lichtblau, MD of the research and consultancy services company, IW Consult.
"However, after the mobile communications boom of recent years, a decline in its contribution to economic growth is to be expected in the emerging markets in the years up to 2020. This is a normalisation effect that sets in when the initial high contribution to growth during the first years of mobile communications ends."
Source: Businesstech
ICT, BPO sectors to benefit from new submarine cable
By Lawrence Agcaoili, The Philippine Star
Globe Telecom Inc. said it expects the country’s information and communication technology (ICT) and business process outsourcing (BPO) industries to benefit from the newly launched $400 million Pan-Asian submarine cable system.
Globe Telecom chairman Jaime Augusto Zobel de Ayala said the South-East Asia Japan Cable (SJC) would improve the competitiveness of the Philippines.
"Globe’s participation in the SJC system will help with the overall competitiveness of the Philippines helping achieve goals of economic stability and position it at par with the most technology advanced countries in the world," Zobel stressed.
The country’s domestic output, as measured by the gross domestic product (GDP), expanded 7.5 percent in the second quarter of the year, bringing to 7.6 percent the economic growth in the first half.
"Today’s inauguration of Globe SJC system could not have come at a better time as the Philippines is currently basking in an economic renaissance," Zobel added.
Apart of the 36.1 million subscribers of Globe, Zobel pointed out that the IT and BPO sectors would benefit from the new cable system.
"One of the main beneficiaries of this system will be the IT and business process outsourcing industry which employs more than 700,000 Filipinos and contributing more than $25 billion in revenues," he said.
No less than President Aquino attended the launching of the SJC system in the new P8-billion Globe Tower in Bonifacio Global City Friday evening.
Gil Genio, head of international and business markets at Globe, told reporters that the link-up of Globe with SJC marks a high point in the advancement of telecommunications in the Philippines and in South East Asia.
"The addition of SJC to the existing network of international submarine cable systems will address the increasing requirements for much higher bandwidth in the continent and the rest of the digitally-connected world. Its high-capacity systems also bolster the capabilities of Globe Telecom, particularly in telecommunications and Internet, making it the foremost telco provider in the Philippines," Genio stressed.
Genio said the interconnection reinforces the dominance of Globe in the local telecommunications industry as it significantly bolsters the competitiveness of the Philippines as a prime destination for business investment.
"One of the main beneficiaries of Globe having SJC will be our local business process outsourcing and the outsourcing-offshoring sectors, currently regarded as the ‘sunshine industries’ of the Philippines," he added.
He explained that the SJC system is a fitting complement to the telco’s landmark network modernization, with the rollout of fiber optic cables enabling a richer digital experience for its 36-million plus subscribers:
"The Philippines ranks high in Internet usage worldwide, propelled by the onslaught of smartphones, the rise of social media, and general Internet usage, with Globe as a key purveyor in this phenomenon," he said.
He pointed out that the huge bandwidth of the SJC system would be able to meet the capacity needs of future applications and innovative solutions and at the same time spur the further development of information and communications technology in the region.
Spanning almost 9,000 kilometers, the submarine cable has one of the highest capacities in the world addressing bandwidth-intensive applications such as Internet TV, online games and enterprise data exchange. It could support simultaneous streaming of up to three million high-definition (HD) videos.
Genio said Globe Telecom chipped in $65 million to the submarine cable system together with other proponents including Brunei International Gateway Sendirian Berhad, China Mobile International Ltd., China Telecommunications Corp., China Telecom Global Limited, Donghwa Telecom Co. Ltd., Google, KDDI Corp., SingTel, PT Telekomunikasi Indonesia International, and TOT Public Co. Ltd.
Source:ABS-CBN
Globe Telecom Inc. said it expects the country’s information and communication technology (ICT) and business process outsourcing (BPO) industries to benefit from the newly launched $400 million Pan-Asian submarine cable system.
Globe Telecom chairman Jaime Augusto Zobel de Ayala said the South-East Asia Japan Cable (SJC) would improve the competitiveness of the Philippines.
"Globe’s participation in the SJC system will help with the overall competitiveness of the Philippines helping achieve goals of economic stability and position it at par with the most technology advanced countries in the world," Zobel stressed.
The country’s domestic output, as measured by the gross domestic product (GDP), expanded 7.5 percent in the second quarter of the year, bringing to 7.6 percent the economic growth in the first half.
"Today’s inauguration of Globe SJC system could not have come at a better time as the Philippines is currently basking in an economic renaissance," Zobel added.
Apart of the 36.1 million subscribers of Globe, Zobel pointed out that the IT and BPO sectors would benefit from the new cable system.
"One of the main beneficiaries of this system will be the IT and business process outsourcing industry which employs more than 700,000 Filipinos and contributing more than $25 billion in revenues," he said.
No less than President Aquino attended the launching of the SJC system in the new P8-billion Globe Tower in Bonifacio Global City Friday evening.
Gil Genio, head of international and business markets at Globe, told reporters that the link-up of Globe with SJC marks a high point in the advancement of telecommunications in the Philippines and in South East Asia.
"The addition of SJC to the existing network of international submarine cable systems will address the increasing requirements for much higher bandwidth in the continent and the rest of the digitally-connected world. Its high-capacity systems also bolster the capabilities of Globe Telecom, particularly in telecommunications and Internet, making it the foremost telco provider in the Philippines," Genio stressed.
Genio said the interconnection reinforces the dominance of Globe in the local telecommunications industry as it significantly bolsters the competitiveness of the Philippines as a prime destination for business investment.
"One of the main beneficiaries of Globe having SJC will be our local business process outsourcing and the outsourcing-offshoring sectors, currently regarded as the ‘sunshine industries’ of the Philippines," he added.
He explained that the SJC system is a fitting complement to the telco’s landmark network modernization, with the rollout of fiber optic cables enabling a richer digital experience for its 36-million plus subscribers:
"The Philippines ranks high in Internet usage worldwide, propelled by the onslaught of smartphones, the rise of social media, and general Internet usage, with Globe as a key purveyor in this phenomenon," he said.
He pointed out that the huge bandwidth of the SJC system would be able to meet the capacity needs of future applications and innovative solutions and at the same time spur the further development of information and communications technology in the region.
Spanning almost 9,000 kilometers, the submarine cable has one of the highest capacities in the world addressing bandwidth-intensive applications such as Internet TV, online games and enterprise data exchange. It could support simultaneous streaming of up to three million high-definition (HD) videos.
Genio said Globe Telecom chipped in $65 million to the submarine cable system together with other proponents including Brunei International Gateway Sendirian Berhad, China Mobile International Ltd., China Telecommunications Corp., China Telecom Global Limited, Donghwa Telecom Co. Ltd., Google, KDDI Corp., SingTel, PT Telekomunikasi Indonesia International, and TOT Public Co. Ltd.
Source:ABS-CBN
CTO Forum set for Abuja
The Nigerian Telecommunications Commission is hosting the 11th annual CTO Forum 2013 from 7 – 9 October in Abuja.
The event, the official flagship event of the Commonwealth Telecommunications Organisation (CTO, will be staged at the Transcorp Hilton. Hosted by the Nigerian Communications Commission on behalf of the Nigerian Government, the CTO Forum will bring together Ministers, Senior Officials, Regulators, Universal Service Fund Administrators, Operators and Vendors.
Among the key speakers will be Nigeria’s Minister of Communications Technology, Omobola Johnson, the EVC of the NCC, Dr Eugene Juwah, Professor Tim Unwin, Secretary-General of the CTO, and Simon Milner, Policy Director, EMEA, at Facebook.
This year’s theme, ‘Innovation through broadband’, will provide critical updates and insight into infrastructure, security and application challenges. The two and half days program will include sessions and workshops focused on issues such as:
Future Networks – Infrastructure development and enabling business
Internet Security and Cybersecurity – Developing protocol and ensuring resilience
Beyond Social Media – From likes to learning
Cloud – Infrastructure development, security concerns and data management
Broadband as an enabler for women, young people and entrepreneurs
Source:
By BiztechAfrica
The event, the official flagship event of the Commonwealth Telecommunications Organisation (CTO, will be staged at the Transcorp Hilton. Hosted by the Nigerian Communications Commission on behalf of the Nigerian Government, the CTO Forum will bring together Ministers, Senior Officials, Regulators, Universal Service Fund Administrators, Operators and Vendors.
Among the key speakers will be Nigeria’s Minister of Communications Technology, Omobola Johnson, the EVC of the NCC, Dr Eugene Juwah, Professor Tim Unwin, Secretary-General of the CTO, and Simon Milner, Policy Director, EMEA, at Facebook.
This year’s theme, ‘Innovation through broadband’, will provide critical updates and insight into infrastructure, security and application challenges. The two and half days program will include sessions and workshops focused on issues such as:
Internet Security and Cybersecurity – Developing protocol and ensuring resilience
Beyond Social Media – From likes to learning
Cloud – Infrastructure development, security concerns and data management
Broadband as an enabler for women, young people and entrepreneurs
Source:
By BiztechAfrica
Saturday, 28 September 2013
Vodacom to Enter Exclusive Talks to Buy Tata’s Neotel (3)
By Christopher Spillane and Matthew Campbell
A worker lays cabling for a high speed telecommunications line for Neotel Ltd., a fixed-line operator part-owned by Tata Communications Ltd., in the center of Johannesburg. Photographer: Nadine Hutton/Bloomberg
Vodacom Group Ltd. (VOD), South Africa’s largest wireless operator, is set to enter exclusive negotiations to acquire Internet provider Neotel Pty Ltd., according to a person familiar with the discussions.
The Johannesburg-based carrier is in talks to buy Tata Communications Ltd. (TCOM)’s closely held South African unit for more than 5 billion rand ($502 million), the person said, asking not to be named because the negotiations are private.
Vodacom, which is 65 percent owned by Vodafone Group Plc (VOD), is increasingly focused on small- to medium-sized business customers and expanding data services to offset declining revenue from its domestic voice division. Neotel said in May that its corporate customer base rose 29 percent for the full year, driven by growth in managed and network services.
STORY: Will AT&T Try to Buy Vodafone?
Mobile operators are turning increasingly to fixed-line assets that allow them to sell a wider range of services and carry data traffic more efficiently. This year Vodacom’s parent, Newbury, England-based Vodafone, bid 7.7 billion euros ($10.4 billion) for Kabel Deutschland, a German fixed-line telephony, cable TV and Internet-access service provider.
Telkom SA SOC Ltd. (TKG), Africa’s largest fixed-line operator, sees a trend of greater interest in fixed-line assets even though it hasn’t received an approach itself, Chief Executive Officer Sipho Maseko said today.
Data Growth
"To be in fixed is fantastic because data is not finite," Maseko said at a media briefing in Johannesburg. "We’re about to enter a new era of telecoms, which is going to be around data growth, content and services. Sooner, rather than later, it’ll be good to be in fixed."
STORY: Five Questions on the Verizon Wireless Megadeal
Neotel spokeswoman Chuma Siswana declined to comment. Vodacom didn’t immediately respond to an e-mail seeking comment. Tata Communications spokeswoman Divya Andand didn’t respond to calls and an e-mail seeking comment on the matter.
Tata bought an additional 2.5 percent in Neotel, based in Johannesburg, for 922.4 million rupees ($14.9 million) in the previous year, according to its 2012-2013 annual report. That would value the company at $596 million.
Vodacom shares advanced as much as 2 percent, before falling 0.8 percent to 124.99 rand as of 4:30 p.m. in Johannesburg.
STORY: Net Neutrality Goes on Trial: A Guide to Verizon v. FCC
First Positive
Tata’s consolidated net loss from its stake -- 67.32 percent as of March 31 -- in Neotel was $45.29 million, according to the document. Neotel’s full-year earnings before interest and taxes were positive for the first time.
Bloomberg News reported in May that Vodacom was interested in buying Neotel for its spectrum access. MTN Group Ltd. (MTN), Africa’s largest wireless operator, had also participated in discussions before dropping out of the process, MTN Chief Executive Officer Sifiso Dabengwa said last month.
Rand Merchant Bank is advising Neotel shareholders and Rothschild is advising Vodacom, according to two people familiar with the talks. A spokesman for Rothschild declined to comment, while a spokeswoman for Rand Merchant Bank didn’t immediately respond to an e-mail and text message seeking comment.
STORY: Will Congress Enter the Fray Over Pay TV Blackouts?
Neotel was founded in 2006 after winning a license to compete with former fixed-line monopoly Telkom, building a second phone network and offering voice and Internet services. Tata bought a majority stake in Neotel in 2008, according to a statement at the time.
Source: Businessweek
A worker lays cabling for a high speed telecommunications line for Neotel Ltd., a fixed-line operator part-owned by Tata Communications Ltd., in the center of Johannesburg. Photographer: Nadine Hutton/Bloomberg
Vodacom Group Ltd. (VOD), South Africa’s largest wireless operator, is set to enter exclusive negotiations to acquire Internet provider Neotel Pty Ltd., according to a person familiar with the discussions.
The Johannesburg-based carrier is in talks to buy Tata Communications Ltd. (TCOM)’s closely held South African unit for more than 5 billion rand ($502 million), the person said, asking not to be named because the negotiations are private.
Vodacom, which is 65 percent owned by Vodafone Group Plc (VOD), is increasingly focused on small- to medium-sized business customers and expanding data services to offset declining revenue from its domestic voice division. Neotel said in May that its corporate customer base rose 29 percent for the full year, driven by growth in managed and network services.
STORY: Will AT&T Try to Buy Vodafone?
Mobile operators are turning increasingly to fixed-line assets that allow them to sell a wider range of services and carry data traffic more efficiently. This year Vodacom’s parent, Newbury, England-based Vodafone, bid 7.7 billion euros ($10.4 billion) for Kabel Deutschland, a German fixed-line telephony, cable TV and Internet-access service provider.
Telkom SA SOC Ltd. (TKG), Africa’s largest fixed-line operator, sees a trend of greater interest in fixed-line assets even though it hasn’t received an approach itself, Chief Executive Officer Sipho Maseko said today.
Data Growth
"To be in fixed is fantastic because data is not finite," Maseko said at a media briefing in Johannesburg. "We’re about to enter a new era of telecoms, which is going to be around data growth, content and services. Sooner, rather than later, it’ll be good to be in fixed."
STORY: Five Questions on the Verizon Wireless Megadeal
Neotel spokeswoman Chuma Siswana declined to comment. Vodacom didn’t immediately respond to an e-mail seeking comment. Tata Communications spokeswoman Divya Andand didn’t respond to calls and an e-mail seeking comment on the matter.
Tata bought an additional 2.5 percent in Neotel, based in Johannesburg, for 922.4 million rupees ($14.9 million) in the previous year, according to its 2012-2013 annual report. That would value the company at $596 million.
Vodacom shares advanced as much as 2 percent, before falling 0.8 percent to 124.99 rand as of 4:30 p.m. in Johannesburg.
STORY: Net Neutrality Goes on Trial: A Guide to Verizon v. FCC
First Positive
Tata’s consolidated net loss from its stake -- 67.32 percent as of March 31 -- in Neotel was $45.29 million, according to the document. Neotel’s full-year earnings before interest and taxes were positive for the first time.
Bloomberg News reported in May that Vodacom was interested in buying Neotel for its spectrum access. MTN Group Ltd. (MTN), Africa’s largest wireless operator, had also participated in discussions before dropping out of the process, MTN Chief Executive Officer Sifiso Dabengwa said last month.
Rand Merchant Bank is advising Neotel shareholders and Rothschild is advising Vodacom, according to two people familiar with the talks. A spokesman for Rothschild declined to comment, while a spokeswoman for Rand Merchant Bank didn’t immediately respond to an e-mail and text message seeking comment.
STORY: Will Congress Enter the Fray Over Pay TV Blackouts?
Neotel was founded in 2006 after winning a license to compete with former fixed-line monopoly Telkom, building a second phone network and offering voice and Internet services. Tata bought a majority stake in Neotel in 2008, according to a statement at the time.
Source: Businessweek
Samsung tries to dodge antitrust lawsuit
Samsung Electronics Co on Friday offered remedies that may settle a European Union probe over whether it breached antitrust rules through its use of patent lawsuits against rival Apple Inc.
Samsung Electronics Co on Friday offered remedies that may settle a European Union probe over whether it breached antitrust rules through its use of patent lawsuits against rival Apple Inc.
"Samsung has agreed to propose commitments that will be market tested," EU Competition Commissioner Joaquin Almunia said in a speech in New York on Friday. "We hope to conclude this case."
The details of the offer were not disclosed, and Samsung could not immediately be reached for comment.
South Korean-based Samsung attempted to settle with the European Commission earlier but the antitrust regulator had said it wanted more concessions.
Samsung and Apple, the world’s top two smartphone makers by volume and sales, are locked in patent disputes in at least 10 countries as they vie for control of the lucrative and fast-growing mobile market.
Samsung dropped injunction requests against Apple in Europe after the Commission filed charges against it last year.
The Commission also charged Google’s Motorola Mobility with a similar anti-competitive offense in May.
The Samsung case may help bring clarity to technology patents known as standard-essential patents, or SEPs, across the industry.
Source: Businesstech
Samsung Electronics Co on Friday offered remedies that may settle a European Union probe over whether it breached antitrust rules through its use of patent lawsuits against rival Apple Inc.
"Samsung has agreed to propose commitments that will be market tested," EU Competition Commissioner Joaquin Almunia said in a speech in New York on Friday. "We hope to conclude this case."
The details of the offer were not disclosed, and Samsung could not immediately be reached for comment.
South Korean-based Samsung attempted to settle with the European Commission earlier but the antitrust regulator had said it wanted more concessions.
Samsung and Apple, the world’s top two smartphone makers by volume and sales, are locked in patent disputes in at least 10 countries as they vie for control of the lucrative and fast-growing mobile market.
Samsung dropped injunction requests against Apple in Europe after the Commission filed charges against it last year.
The Commission also charged Google’s Motorola Mobility with a similar anti-competitive offense in May.
The Samsung case may help bring clarity to technology patents known as standard-essential patents, or SEPs, across the industry.
Source: Businesstech
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