Nigeria to benefit from Bharti’s $1bn new Africa investment

Ben Uzor Jr

Airtel’s Nigeria, Ghana, Kenya and Uganda operations will benefit from an additional $1 billion investment earmarked by Bharti International to support network expansion of its Africa mobile business. This investment move is subsequent to the telecom firm receiving the necessary regulatory approvals in all 16 countries on the African continent acquired in the preceding year.

Sunil Mittal, group chief executive officer, Bharti International, has disclosed that the Indian firm will invest an additional $1 billion in its fledgling Africa mobile business this year. Bharti Airtel acquired Kuwait-based Zain’s Africa operations for $10.7 billion in 2010 in what has been described by many analysts as the largest cross-border takeover in an emerging market.

Analysts, yesterday, see the Indian based firm injecting about $500 million into its Nigerian operations. Mittal has also reiterated the firm’s resolve to further grow its Nigerian business, stating earlier that the success of Airtel on the continent was largely dependent on Nigeria. “We have already invested $11 billion here and have committed nearly $1 billion investment for this year for expansion of our networks,” said Bharti’s boss in a report sighted by BusinessDay yesterday. However, Mittal seemed to dismiss rumours of further expansion into other African countries.

“At the moment, we are focusing on our 16 countries and for any future expansion in Africa, we will see as the opportunities come, as there is nothing on the table at the moment.” According to the report, in its last fiscal year (2010-11), Bharti reported a net loss of $97.7 million in its Africa operations on revenues of $3 billion. At the end of the company’s fiscal fourth quarter (ending March 31), it had 44.2 million African subscribers, which included quarterly net additions of 2.1 million.

With Average Revenue per User (ARPU) for the African unit at $7.2 per month, Mittal noted that some of the Africa businesses were doing better than others. “Out of the 16 countries, most of them are profitable. As far as Africa is concerned, we have to grow in Nigeria; we have to grow in Ghana, Uganda, Kenya. There are a few countries where we have to step up.” Relating to network expansion, Airtel is building a 3G network expected to cover 80 percent of Nigeria’s population by 2012 and required to offer cheaper and reliable internet services to its customers.

Rajan Swaroop, chief executive officer, Airtel Nigeria, who confirmed this in an interview recently, said the project was strategic for increasing market share as the bulk of telecom revenue in Nigeria was expected to come from data services in the next five years. An analyst told BusinessDay yesterday that the extra investment by Bharti would further strengthen the project; adding that Airtel was spurred on by the prospect of increasing revenue from data services as voice revenue continues to drop.

Speaking in an interview with Russell Southwood of Balancing Act accessed by BusinessDay at the weekend, Swaroop declared: “We are building a 3G (Third Generation) infrastructure and by the time we’re finished, we will have covered 70 to 80 percent of the population and that’s, maybe, one year away. We currently have 100,000 to 150,000 subscribers but we strongly believe that the overall potential for this is something like 2 million subscribers out of an overall total of 16 million”.

Commenting on the company’s financials, the Airtel boss revealed that over the last 12 years, the performance of the business has been declining but by virtue of the investments made in infrastructural development, he believed Airtel Nigeria would be self-funding and cash-flow positive in the next 18 months. “We also intend to encourage the Nigerian Communications Commission (NCC) to introduce Mobile Number Portability. Then the best provider will be successful,” he said.

Giving a vivid insight into the company’s position with regard to international fibre and acquisition of bandwidth capacity, Swaroop disclosed that the telecom firm had bought significant capacity from both MainOne and Glo-1 cables. “The price per MEG is down to US$300-350 per MEG per month at volume and this price is a substantial drop from what was available previously. We will probably double our capacity in the next 6 to12 months and prices will come down again. They are currently pretty high compared to rates across the world. In India, it is sub US$10 per MEG”.

Bharti Airtel, who took over mobile operations in 15 African countries in a deal that makes it the world’s fifth-biggest mobile firm with 180 million customers in 18 countries, is known for its low-cost strategy; but the firm has revealed that it will not adopt the same strategy which has made it India’s market leader. In India, Airtel’s call rate charges are as low as 1 US cent as against the 20 US cents charged in Nigeria currently.

Why mobile phones will replace cash, plastic cards

Ben Uzor Jr

As Nigeria gradually moves towards the era of mobile payment system, plastic cards (debit and credit) may soon become old-fashioned, analysts told BusinessDay at the weekend. This is even as mobile money operators, regulators make every effort to sustain the shift from card-based transaction to mobile-based transaction. A prominent industry analyst who pleaded anonymity told BusinessDay at the weekend that Nigerians are increasingly ‘living their lives on their mobile phones’.

A development, he added could drive the adoption of mobile payment services. “I definitely believe that the mobile money will eventually replace the plastic card. It is going to take some time though because consumer habits take a long time to change. We hear that some of the 16 firms granted Approval in Principle (AiP) by the Central Bank of Nigeria (CBN) to commence pilot programmes of Mobile Money services have begun submission of trial reports to the apex bank for verification.

“We are going to see it move beyond trials and into reality. Ultimately, we are going to see more and more people leave their homes without their wallets”, he further maintained. In relation to m-payment, industry watchers strongly believe that 2011 will be a dynamic year with service providers positioning in various diverse ways to redefine the digital payment landscape. In 2010, the Central Bank of Nigeria (CBN) granted 16 operators approval-in-principle to operate mobile money services in the country.

They include; Stanbic IBTC Bank Plc, Ecobank Nigeria Plc, Fortis MFB, UBA/Afripay, GuarantyTrust Bank Plc/MTN and First Bank of Nigeria Plc. Others are Pagatech, Paycom, M-Kudi, Chams, Eartholeum, E-Tranzact, Parkway, Monitise, FET and Corporeti. The operators were given four months (January to April this year) to demonstrate their capacities to roll out mobile money networks. Beyond this, millions of mobile phones capable of making contactless payments are expected to be shipped out this year.

Recent Pyramid Research report has projected that the global mobile money industry would generate over $200bn by 2015. But more importantly, industry analysts believe that the success and expected growth will be largely dependent on subscribers’ trust in the system in respective countries. Onajite Regha, CEO, Electronic Payment Providers Association of Nigeria (EPPAN) who spoke at a forum organised by the body in Lagos recently, said the industry need to “agree on what strategy we must adopt to create an enabling environment which will ensure the success of m-payments to adequately protect investors and ensure credibility within the operations to gain consumers trust.”

Chuma Ezirim, group head, eBusiness for FirstBank of Nigeria (FBN), pointed out that the robust mobile payment ecosystem would drive incremental value propositions to all parties involved in the scheme. “For banked consumers, mobile payment provides new ways and places to make payment. For Banks (Issuers & Acquirers), it helps to grow payment revenue, merchant accounts. Mobile payments also open up new business opportunities for financial institutions and reduce cost of service delivery.

“In the case of telecoms operators, mobile payments reduces airtime cost, churn and helps grow ARPU (Average Revenue per User) and VAS (Value Added Services) and so on”, Ezirim stated. Commenting on the huge potential of mobile money in Nigeria, Luqman Balogun, divisional head, e-Banking, UBA told Business Day in an interview, “today, we have less than 30 million accounts in Nigeria relative to the population of 150 million. As at the last count, figures show that we have almost 100 million mobile subscriptions. “The question is why don’t you convert those phone lines to bank account”.

The future of mobile payments industry in Nigeria looks bright, many industry analysts believe. However, Nigerians are doubtful about its successful implementation. Emmanuel Okogwale, principal consultant, Mobile Money Africa, thinks that a robust agent network drives mobile money, not technology. “Stakeholders should endeavor to build a shared agent network to serve all the stakeholders. Since agency is the Heart of mobile financial services and the agents do not sell primary products of the licensee unlike in Mobile Network Operator (MNO) driven ecosystem.

“There is a need to source, develop, train and deployed agents on a shared basis. “Aside from technology which is available off the shelf though expensive, another issue that many of the providers are still faced with is the mind set of thinking mobile money is a technology offering rather than an agency offering. “Signing the agents, recruitment, training and deploying a well developed agent network is the major obstacle facing the providers”, he posited. According to Okogwale, many potential agents do not know on what authorisation are these providers acting on.

He called on the CBN to step in by allaying the fears of the agents and also help the industry develop a standard enterprise Risk and mitigation framework.

Mobile Money Service operators begin submission of trial reports

. . . CBN may issue final license in July
Ben Uzor Jr

Nigeria is gradually moving towards the era of mobile payment system as operators, regulators make every effort to sustain the shift from card-based transaction to mobile-based transaction. Indication however are that some of the 16 companies granted Approval in Principle (AiP) by the Central Bank of Nigeria (CBN) to commence pilot programmes of Mobile Money services in the country have begun submission of trial reports to the apex bank for verification, Business Day can reliably reveal.

Mobile Money Service Providers granted provisional licenses by the apex bank include; Stanbic IBTC Bank Plc, Ecobank Nigeria Plc, Fortis MFB, UBA/Afripay, GuarantyTrust Bank Plc/MTN and First Bank of Nigeria Plc. Others are Pagatech, Paycom, M-Kudi, Chams, Eartholeum, E-Tranzact, Parkway, Monitise, FET and Corporeti. The firms, informed sources told Business Day, are expected to show concrete evidence that 50 customer have carried out live transactions on their mobile payment platforms during the four months trial giving to them by the apex bank.

Other conditions, Business Day further also include: the logs of the transactions, showing dates and time. Besides, each of the 16 companies must submit at least names and locations of 30 agents for verifications. Meanwhile, it was also learnt that the apex bank may issue final licenses in July based on the advice of the auditors. Emmanuel Obaigbona, deputy director, banking and payments system department of CBN at an industry forum recently disclosed that the CBN has invited Enhancing Financial Innovation & Access (EFInA), a body set up to promote access to financial services for the unbanked and under banked in Nigeria to do an audit trail of the operators to ensure that there are no systemic risks.

Obaigbona stated that subsequent to the audit trail, licences would be issued to deserving operators, further adding that any mobile money service providers that fall short of the required criteria for assessment on the pilot by the CBN would not be licensed. Moreover, the apex bank had earlier warned mobile money operators that the approval-in-principle does not guarantee them automatic license after the four month period. According to the CBN, each of the operators must earn their place in the new initiative which is expected to take banking services to underserved and unserved areas.

Emmanuel Okogwale, principle associate, Mobile Money Africa, who spoke with Business Day in an interview, confirmed that mobile money operators had begun submitting trial reports, further stating that the apex bank was checking the provider's processes to validate technology, agency network, risk, customer protection. Okogwale pointed out that the audit is necessary to understand the operations of the providers and if necessary advice them, drop some and approve some as the case may be. “Some of them do have compelling services for the unbanked however, Mobile Network Operators (MNOs) connectivity challenges might be standing in their way but that is not to say they will not pass through.

“The CBN in their wisdom are not looking for perfect systems but checking for vulnerabilities to prevent a systemic risk that will have a knock-off effect not only on primary business of the providers but the whole economy. I welcome the audit process and I also commend the providers that are ready for such audit. It is to all Nigerians advantage to have a working and secure mobile payment system”, he said.

Nigeria’s internet quandary force operators to adopt new wireless platform

• Globacom, Mobitel, Swift, DOPC make inroad
Ben Uzor Jr

Recognising that existing wireless technologies will not be the definitive solution to internet access in Nigeria, telecommunications firms and Internet Service Providers (ISPs) are migrating to an innovative wireless platform which promises to open up new revenue generating streams for them by enabling new capabilities well beyond mundane voice and data services, Business Day can now reveal. Globacom, Mobitel, Swift Networks and Direct-on-PC (DOPC) have all announced and launched 4G-LTE networks.

Though, other telcos are keeping plans close to their chests, MTN, Starcomms, share the view that LTE-4G will enable them offer better value to their customers. Industry analysts have doubted Globacom’s claim because suitable spectrum was yet to be issued and also because compatible devices were yet to become available in Nigeria. On the other hand, analysts told BusinessDay yesterday that intense competition is forcing telcos and Internet Service Providers (ISPs) to reassess their data strategies.

“Telecoms companies are reassess their data strategies to make certain that they generate considerable revenue from the internet access market in coming years”, Adebayo Oyewole, head of marketing and strategy for MainOne Cable told Business Day recently. The reassessment exercise, according to informed sources had begun in the preceding year in anticipation of the landing of MainOne and Glo-1 underwater cables. Geared up to take advantage of the new infrastructure, management of some of the telecoms companies have started re-adjusting data strategies to meet current market demands.

At the moment, some telcos are embarking on strategic multi-million dollar infrastructure projects while others are testing new technologies and platforms; all geared towards strengthening their data services segment. Gbenga Adesanya, a telecom analyst told BusinessDay that mobile network operators (MNO) are paying ardent attention to data services as the next revenue generating stream because forecasts have shown that the bulk of telecom revenue was expected to come from mobile broadband and data in the next five years. Data segment accounts for a paltry 10 percent of telcos’ revenue.

BusinessDay learnt that Mobitel Limited, pioneer WiMAX service provider, has adopted an aggressive three year-strategy plan for data services. This, it was learnt will culminate in the replacement of its current WiMAX platform for the revolutionary 4G-LTE; offering its customers superior quality of service. In a document sighted by BusinessDay, the firm said that it sees LTE as a unique differentiator in delivering best-in-class, superfast broadband service, and multimedia streaming amongst other services.

Similarly, Second National Carrier, Globacom has begun testing LTE in 30-40 locations in Lagos, with preliminary results showing that speeds are ten times faster than available 3G services. Investigation revealed that Globacom was currently using a combination of its existing GSM and 3G spectrums to conduct LTE testing, but intends to obtain either 2.1 or 2.6 GHz licenses from the NCC. On the other hand, Airtel is building a 3G network expected to cover 80 percent of Nigeria’s population by 2012 and required to offer reliable and affordable internet services to its customers.

Rajan Swaroop, chief executive officer, Airtel Nigeria, confirmed that the project was indeed strategic for increasing market share in the data internet segment of Nigeria’s highly competitive telecoms market. According to the analysts, Nigerian internet users have continued to express their discontent with the slow and exasperating access to the cyberspace even with the landing of two submarine cables (Main One and Glo-1) on the country’s coastline. For years, the only cable system serving Nigeria’s internet and data needs was the SAT-3 submarine cable. Besides, stakeholders expect better service delivery as more telecoms firms and ISPs migrate to the LTE-4G platforms.

Charles Anudu, managing director, Swift Networks, who spoke with Business Day in an exclusive interview on the company’s new 4G broadband internet offering, believes that the deployment of 4G networks and services in the country would assist the industry to potentially get ahead of many markets on the global stage, thus, putting Nigeria on the fore rather than playing catch-up. “4G will enable telecoms operators to use their existing frequency to deliver more capacity and throughput of data. 4G essentially means that for the operator, we are able to do more with same spectrum as we would have done with either 2G (Second Generation) or 3G (Third Generation) network.

For the telecoms subscriber, it means that they can actual access the internet at a more higher speed using the same spectrum that was available to the telecoms operator”, Anudu stated. In the same vein, John Salako, chief executive officer, Mobitel, noted that this technology platform was well positioned to drive the Nigeria’s evolution towards pervasive wireless broadband communications with huge market acceptance, rich ecosystems, and promising economies of scale. In the estimation of analysts, 1.8 billion people worldwide will have access to broadband services and nearly two-thirds of this number will be mobile broadband consumers who will be served by 4G-LTE networks.

Giving insight into what this new wireless platform can do in terms of enhancing service delivery and improving the bottom line of the business, Mohammed Jameel, group chief operating officer (GCOO), Globacom argued that its LTE network can better leverage the enormous bandwidth capacity coming from Glo-1 underwater cable. “We will now connect demanding corporate customers and high data users through our latest LTE wireless broadband connection to Glo-1 and then the rest of the world.

“For our subscribers, 4G-LTE offers the key benefits of performance and capacity. In addition, it will enhance more demanding applications like interactive Television (TV), mobile video blogging, advanced games or professional services”, the GCOO further explained. According to Jameel, though Nigerians can already browse the internet or send e-mails using HSPA-enabled systems and send or receive video or music using 3G devices, the experience with LTE-4G will be even better.

LTE-4G is a revolutionary Fourth Generation Mobile Technology which enhances data transfer rates, providing unmatched mobile broadband experience. By delivering speeds ten times faster than available 3G services, this new wireless technology will provide telecoms consumers in the country with widespread all-IP based services such as superfast broadband access, video blogging, high quality multimedia streaming, enhanced gaming services etc. Business Day checks reveal that 24 networks worldwide have successfully adopted and launched 4G-LTE networks.

CBN may extend time-line for mobile money take-off

Ben Uzor Jr

There are strong indications that the Central Bank of Nigeria (CBN) may extend the deadline given to Mobile Money Service Providers to granted provisional licences to provide payment services in the country, Business Day has learnt. Industry analysts told Business Day at the weekend that the CBN would not adopt a stringent stance in this circumstance due to the complexities inherent in rolling out such services.

In 2010, the CBN granted 16 operators approval-in-principle to operate mobile money services in the country. They include; Stanbic IBTC Bank Plc, Ecobank Nigeria Plc, Fortis MFB, UBA/Afripay, GuarantyTrust Bank Plc/MTN and First Bank of Nigeria Plc. Others are Pagatech, Paycom, M-Kudi, Chams, Eartholeum, E-Tranzact, Parkway, Monitise, FET and Corporeti.

The operators were given four months (January to April this year) to demonstrate their capacities to roll out mobile money networks. At the end of the said period, mobile money operators were expected to return for an assessment to ascertain if the approval-in-principle licenses will become permanent.

Industry analysts however observing the scenario at play say that they are optimistic the CBN may grant more time to mobile payment operators to enable them “perfect the processes and procedures needed to prove beyond any reasonable doubt that they possess the requisite competence” to roll-out mobile money networks in Nigeria. Besides, Abayomi Atoloye, director, banking and payment systems, confirmed that the apex bank would not sanction operators, according to a document sighted by BusinessDay.

Atoloye, in the report, had said that the CBN would rather grant them an extension of the deadline. According to him, being a new initiative, it was important to perfect the processes and procedures to avoid mistakes. He did not however say how much time the operators have but noted that decision on that would be taken at a meeting later this month.

Emmanuel Okogwale, managing partner, MobileMoneyAfrica who spoke with Business Day in an interview gave reasons with the CBN deadline. Okogwale disclosed that some mobile money operators do not want to invest hugely in acquiring new technologies and still be subjected to final licensing. According to Okogwale, if the CBN refuses to grant them permanent licenses how would these operators justify the investments made?

“Aside from technology which is available off the shelf though expensive, another issue that many of the providers are still faced with is the mind set of thinking mobile money is a technology offering rather than an agency offering. Signing the agents, recruitment, training and deploying a well developed agent network is the major obstacle facing the providers. “Many potential agents do not know on what authorization are these providers acting on.

“I think the CBN should step in by allaying the fears of the agents and also help the industry in developing a standard enterprise Risk and mitigation framework”, he stated. Miebe Senge, industry analyst agrees with Okogwale, adding that the absence of uniform short code access, security issues, among others have combined to hobble the take off of the initiative.

Meanwhile, Mobile money service providers’ licensees in Nigeria have complained that the lack of channels are frustrating efforts to implement robust route to reach the mass market. Chike Onwuegbuchi, another analyst pointed out that majority of the operators are struggling with Unstructured Supplementary Service Data (USSD) which is easy to use and works on all phones because telecommunications operators are unwilling to carry the licenses on their network.

According to him, mobile money operators are providing services mainly on Java and WAP which are not within reach in most rural areas with limited GPRS footprint, incompatible devices as well as limited education and awareness.

Some mobile money licensees have not being completely quiet in terms of expediting processes for roll-out of mobile money as e-Tranzact, one of the licensees has perfected its interactive unstructured supplementary service data (USSD) to improve access to mobile banking services by all mobile phone users in the country, irrespective of their handsets. Elsewhere, Fortis Mobile Money, based in Abuja, is said to be currently training verified store owners and communities on the new innovative channel to deliver basic financial services.

In addition, Pagatech has entered into an agreement with Multichoice to pay monthly DSTV subscription via installers’ outlets in selected locations.

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MainOne opts for bottom pricing as Starcomms splash N1.4 billion on network expansion

Ben Uzor Jr & Adelani Ashamu

Two major Nigerian telecom companies are pushing the boundaries of competition further with strategic price and investment moves that will position them for future customer-skimming. First, MainOne, the underwater cable operator, yesterday fired a fresh shot on radical pricing in the cable market by proposing new adjustments in its pricing strategy, aimed at encouraging more uptake of bandwidth subscription below 10 megabits per second.

At the same time, Starcomms, one of the Code Division Multiple Access (CDMA) telecommunication operators in Nigeria, disclosed fresh investment of N1.4 billion ($9 million), to improve capacity and strengthen its network in 10 cities in Nigeria. MainOne says it would achieve its new pricing strategy through a Partnership Advantage Programme (PAP) strategically designed to provide pricing incentives to customers aimed at increasing their volume of business with MainOne cable.

Prior to this initiative, capacity was offered at MainOne's IP (Internet Protocol) Transit and IP Internet Access offering from 10 megabits on its Pay As You Grow (PAUG) service offering which allows customers to start at 45 Mbps and grow into STM-1 (155 Mbps) through its wholesale products. This new initiative, the cable company said, would allow Internet Service Providers (ISPs) and telecoms operators to increase subscription and accrue benefits rapidly, and thus drive increased utilisation for MainOne pipe.

Industry analysts told BusinessDay that the move would assist in growing MainOne access to the market, and accordingly, achieve the desired objective of increasing broadband penetration in Nigeria. "MainOne is looking to create opportunities for telecoms companies and Internet service providers to expand their portfolio and generate a continuous, incremental revenue stream based on the MainOne network," Gbenga Adesanya, a telecom analyst said.

Speaking at the launch of the company's Partner Advantage Programme in Lagos, Funke Opeke, chief executive officer, MainOne Cable Company noted that customers were not experiencing the expected reduction in prices since the submarine cables landed. She added that the firm had continued to receive feedback and inquiries from end users about direct connectivity to the MainOne platform.

Meanwhile, cities targeted by Starcomms in its investment expansion drive include: Abuja, Oron, Ikot-Ekpene and Eket (Akwa-Ibom State); Jaji, (Kaduna State); Suleja (Niger State); Maiduguri (Borno State); Umuahia (Abia State); Tinapa (Cross River State) as well as Agbor (Delta State).

Chief Operating Officer at Starcomms, Logan Pather who made the disclosure yesterday, told IT News Africa that the investment would cover the areas of equipment and logistics, among others; a process that aims at seeing the company rolling out services to other parts of the country where the company previously had no coverage.

Pather explained that the investment would also lead to the improvement of its capacity in congested sites and areas where it currently has coverage, assuring that subscribers to Starcomms services, within the next three weeks, would be engaging in commercial launches in all 10 cities.

According to him, "Starcomms has continued to make significant investments in the telecommunications industry, despite the difficulties that characterise the business climate in Nigeria."

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Main One, Seacom in capacity agreement for internet services

…may speed up process to link Nigeria, S/Africa via undersea cable
Ben Uzor Jr.

Underwater cable operators, Main One and Seacom, said on Wednesday that they had interconnected their West and East African cable systems, offering connection between any point of presence (POP) between South Africa and Nigeria. Analysts told BusinessDay on Wednesday that this partnership may provide the needed conditions and prompt investors behind MainOne, a Nigerian-led system built on open access principles, to expedite processes to extend their cable south to South Africa (SA).

“MainOne has had plans for a phase-two extension of its cable to South Africa for some time. This may provide the incentive it requires to move forward with the second phase of the project”, one industry analysts who pleaded anonymity told BusinessDay on Wednesday. Moreover, the joint solution would be provided on an open-access basis and would be immediately available, providing customers with a timing advantage ahead of the completion of other planned submarine cable systems around Africa.

Other planned undersea cables in Africa include: the West African Cable System (WACS) being constructed from Europe to Africa – an initiative operated by nine countries (MTN Group inclusive). The cable has already landed in Togo and is expected to berth on the coast of Nigeria by the end of the first quarter of 2011. There is also the ACE cable covering Nigeria and other countries which will stretch 17,000 kilometres from Penmarch, France, to Cape Town, South Africa, connecting 23 countries.

Besides, the cable will have built-in 40 gigabit per second capability and it is slated to be operational in the first-half of 2012. Funke Opeke, chief executive officer, MainOne, in a statement made available to BusinessDay on Wednesday, said: “While efforts to implement a physical cable between Nigeria and South Africa continue, we have joined our cables together in Europe to satisfy many of our customers’ immediate requirements for capacity between Nigeria and South Africa.”

MainOne offers open access, wholesale broadband capacity in West Africa. Its submarine cable system commenced operations in July 2010, linking West Africa to the rest of the world via Portugal and the United Kingdom (UK). On the other hand, Brian Herlihy, chief executive officer, Seacom, stated that the company holds the view that a ring-type system around the entire continent is the best way to attain adequate redundancy while offering customers a comprehensive connectivity solution.

“The announcement shows our determination to find a viable way to extend our system with partners who share our vision to build the African internet.” Seacom is a privately financed, developed and owned submarine fibre optic cable network providing broadband capacity to Africa through the sale of wholesale international bandwidth and associated services on an open-access basis since July 2009. Stretching 17 000km along the eastern and southern African coastlines and onwards to India and Europe, the Seacom system connects many African countries including South Africa, Mozambique, Tanzania, Kenya, Rwanda, Uganda, Djibouti and Ethiopia.

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