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Malaysian telco exits Africa
Asian-based telecommunication company, Telekom Malaysia Berhad, is set to focus its investment strategy on geographic regions closer to home, according to its chief executive officer, Yusof Annuar Yaacob.
This strategy comes after the telecommunications company sold its entire 60% stake in Telekom Networks Malawi (TNM) last month, for $16 million, to mobile telecom operator Malawi Telecommunications Limited (MTL).
"TM intends to continue with its international investment strategy of focusing on geographies in Asia, which we see as a strategic way of going forward," says Yaacob.
TM's objective has been to divest its interest in TNM responsibly so the people of Malawi can continue to be provided the service independently, he says. "TM is of the opinion that MTL is eminently well-placed to continue this task."
TM's investment during the past 12 years has worked well with the government and the people of Malawi in building a strong network in Malawi, he adds. TM has relinquished its 60% stake in TNM, with a subscriber base of some 300 000 active cellular subscribers.
The exit strategy plan from Africa began in 2004, explains Yaacob. It was illustrated by the sale of TM's investment in Telkom SA in the second half of 2004.
"With the sale of our stake in TNM, TM's sole investment in Africa now remains with its 60% stake in Guinean telecommunication company Societe des Telecommunications de Guinee," says Yaacob.
The Malaysian telco has formally indicated its intention to exit this investment as well. TM's decision to exit Guinea is part of a broader plan to dispose all of its African investments.
Yaacob previously said the departure of TM from Africa does not reflect Africa as an "investment disaster".
Nigerian mobile telecoms operators, Globacom and MTN, are making progress towards rolling out and upgrading their respective network capabilities, to provide 3G services in the West African country.
The Nigerian Communications Commission (NCC), for a fee of $150 million each, awarded the operators 3G licences last month, according to the NCC Web site. Aside from Globacom and MTN, Alheri Engineering and Celtel Nigeria were also successful recipients of 3G operating licences.
Tayo Asiru, marketing manager at Globacom, says after successfully launching a 3G trial platform in August 2006, Globacom will commercially launch an improved 3G network in Abuja, Lagos and Port Harcourt. The service will be extended to the regions in and around Ibadan and Benin, he adds.
The company recently signed with telecoms service providers Alcatel-Lucent to roll out a network based on UMTS/HSDPA technology, which will provide Globacom subscribers with mobile broadband and triple-play services in selected cities.
MTN Nigeria has also started upgrading its network to cater for 3G services, explains an MTN press release. The telecoms provider embarked on a $650 million network expansion and upgrade project earlier this year to make way for a 3G-compliant environment.
Celtel Nigeria was also testing the 3G-network platform, which was launched in November 2006.
Asiru believes the 3G services will benefit the commercial sector of the country, adding value to the Nigerian economy. “Nigeria's progress in offering 3G capabilities is important for encouraging further growth within the market.”
Nigeria is the third country in Africa, after SA and Mauritius, to award 3G spectrum licences. Vodacom Tanzania and MTC Namibia have, however, launched HSDPA services.
 
   
African Bandwidth needs to triple  
Bandwidth requirements for North Africa and sub-Saharan Africa are set to triple by 2011, according to a new report by Balancing Act.
However, that may be a conservative estimate, as other stakeholders expect bandwidth demand to grow by as much as a hundredfold.
The second edition of ‘Balancing Act Forecasts' says growth from all forms of broadband over the forecast period to 2011 will be 43 529Mbps, almost a tripling of current bandwidth.
Additional growth from dial-up subscriptions over the forecast period to 2011 will be 689Mbps, it says.
The report says the rapid take-up of broadband in general and wireless broadband in particular has driven increases in Internet bandwidth, and will be the prime driver of growth over the next five years.
While ADSL dominates demand in those countries already connected to broadband, the most rapid growth will probably come from wireless broadband, the report says. Wireless broadband may well be a much larger contributor than ADSL to bandwidth growth in sub-Saharan Africa, it says.
The report adds that total Internet bandwidth supplied by satellite dropped from 24.1% in 1998, to 11.5% in 2006. Twenty-six African countries get 100% of their international Internet bandwidth entirely by satellite, it says.
Despite a reported decline in satellite broadband demand, Gateway Communications recently increased its satellite bandwidth capacity by 84% to meet demand in Africa.
 
 
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