Tag Archives: telecoms
telecoms: Latest News
Staff, 12:01 am
The fall in African private equity investment in 2016 could be a short-term blip. Among the losers was US-based Carlyle, one of the world’s winningest investment firms. Carlyle invested $147m in Nigeria’s Diamond Bank in 2014. The bank’s market cap fell by 90% over the subsequent two years. Bob Geldof’s PE firm 8 Miles just invested in Blue Skies, a British fruit firm that operates in Africa. Utilities including telecoms were the most popular target for private equity investment in 2016. West Africa was the most active region.
Dana Sanchez, 11:11 am
Facebook wants to connect everyone in the world with its social network, but that’s hard to do if the world doesn’t have internet access. Facebook, Google, and Microsoft are building their own networking infrastructure on land and across the seas rather than just leasing bandwidth connections operated by telecoms. In doing so they’re assuming a role traditionally played by telecom companies. Facebook has announced plans to lay nearly 500 miles of fiber cable in Uganda by the end of the year, infrastructure it believes will provide internet access for more than 3 million people.
Dana Sanchez, 10:32 am
Faced with an escalating price war at home in India, Bharti Airtel is looking to its African operations to reduce debt. India is one of the most competitive telecom markets in the world. The company lost $91 million in Africa in Q3 of 2016. Airtel has 22.14 percent market share in Nigeria and 34.1 million customers. Market observers in Nigeria say lack of access to foreign exchange for operators, falling revenue per user and customers’ lack of disposable income are hurting telecom operators in the country.
Dana Sanchez, 11:20 pm
Foreigners have been invited to invest in Ethiopia’s state-owned shipping and logistics company. Will telecommunications and banks be next? Ethiopia is one of the last African countries to have a state monopoly in telecoms. The U.S. hopes to bring its technology, know-how and managerial skills to Ethiopia. The American Chamber of Commerce of Ethiopia was launched in November. “The private sector needs a level playing field that allows fair competition with state-owned enterprises,” a U.S. stakeholder said.
Dana Sanchez, 11:56 am
MTN making a bid to buy Barclays Africa assets might sound far-fetched and ridiculous – but an MTN bank with operations in 14 African countries would shake up both the cellular and financial services industries. MTN has a track record in integrating big assets. Two new hires at MTN include top-ranking executives with heavy banking experience. Building its own fintech solutions would be expensive for MTN. The trend is for fintech startups to partner with banks rather than telecoms.
Dana Sanchez, 10:48 am
The cable will connect Luanda to Fortaleza, Brazil, where it can be connected to another cable system to Miami, enabling Angola to connect directly with the U.S. The main beneficiaries of sub-Saharan Africa’s cables will likely be large domestic companies and multinational corporations operating in Africa, says an international trade expert. Many hope undersea cables’ transmission capacity will stimulate demand for Internet and promote economic growth. Undersea cables transport 95% of international telecommunications traffic.
Peter Pedroncelli, 5:01 am AFKI Original
Africa is a continent that has embraced telecoms technology and mobile on a wide scale, with numerous telecommunication corporations based in and out of Africa providing millions of African subscribers with a variety of mobile-based services. We take a closer look at 8 of the African continent’s biggest telecoms companies.
Kurt Davis Jr., 10:50 am AFKI Original
DRC is in for a big telecom boom. It has a mobile penetration rate of 68% — lower than the African average — with a 100% penetration predicted by 2020. If you are not prepared to spend on Africa’s fourth most-populated country, then you will miss out. Capital will have to be patient. DRC is an early stage emerging-market country with an election planned in 2016, but the revenue potential cannot be ignored.
Dana Sanchez, 10:25 am
Often highly competitive, African telecoms markets are difficult and expensive places to operate. Telecoms have come to accept the case for outsourcing passive infrastructure such as towers. Most tower-sharing deals in sub-Sahara are motivated by pressure to reduce costs as slowing revenue growth increasingly weighs on margins. In Africa, towers and infrastructure can account for more than 60 percent of the expense to build a mobile network.
Peter Pedroncelli, 2:25 am AFKI Original
South African start-up Mxit’s success story came to an end recently with news that the company had shut down its commercial operations and would be transferring its IP to the Reach Trust, its charitable arm. Launched in 2005 as a feature phone app, the company was highly popular at first. We take a closer look at seven things that led to Mxit’s collapse.
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