Tag Archive for: MTN

Western Union and the MTN Group today announced the launch of a mobile money transfer service in Uganda enabling MTN customers to send and receive money via their mobile phones.

cell phone sitting on paper money

MTN and Western Union teaming to promote mobile money in Uganda. (image: file)

This service was announced at a press conference today in Kampala. The Western Union/MTN mobile money transfer service in Uganda will allow users cut down on visits to Western Union branches to pick up cash. Instead, they can “pull” transactions into their MTN Mobile Money accounts.

To access the service customers need an active MTN Mobile Money account.

“Our network of nearly half a million locations, our experience in moving money across borders, and our relationships with the world’s most successful mobile operators such as MTN, ideally position us to introduce many people to cross-border financial services,” Western Union President Diane Scott said.

“We currently have more than 2 million Mobile Money customers, and we continue to grow exponentially. By joining forces with Western Union, our customers can now receive funds directly in their MTN Mobile Money accounts quickly and easily,” MTN Group Chief Commercial Officer Christian de Faria said.

Staff writer

Ericsson, leading mobile phone company, and MTN, Africa’s largest telecom operator, announced a strategic new partnership to boost the m-wallet services in Africa and the Middle East.

Christian de Faria, MTN Group Chief Commercial Officer

Christian de Faria, MTN Group Chief Commercial Officer, delighted to partner with Ericsson on expanding m-wallet. (image: file)

Christian de Faria, MTN Group Chief Commercial Officer, delighted to partner with Ericsson on expanding m-wallet. (image: file)

Announced at the Mobile World Conference in Barcelona, Spain on Monday, MTN will become the first operator to officially deploy the Ericsson’s Converged Wallet platform. Both companies said the service is “a new complementary service to the integrated pre-paid charging system and mobile financial services solution for MTN consumers in those regions”.

The new m-wallet reportedly delivers a fast track route for MTN to introduce relevant, new and differentiated m-wallet market offerings to its Mobile Money customers.

As part of the co-operation, Ericsson said it would offer a prime integrator engagement model encompassing “software, systems integration and managed operation services”.

Christian de Faria, MTN Group Chief Commercial Officer, said, “Optimizing the Mobile Money consumer experience directly impacts consumer stickiness, and with Ericsson Converged Wallet we can now address our strategic priorities by enabling rapid response to our consumer’s preferences and expectations”.

MTN said it currently has more than 5 million mobile money subscribers in 12 African countries.

“2012 will be the year of partnerships across the emerging m-commerce eco-system. MTN has long been an early adopter in mobile money, and this new partnership builds on our ongoing relationship of collaboration,” said Hans Vestberg, Ericsson President and CEO.

“Driving accelerated time to market for operators and linking wallet accounts to purchases across multiple payment systems is a clear next step in next generation mobile financial services.”

Joseph Mayton

The upsurge in sub-Saharan Africa mobile telecommunications seems to be subsiding as companies continue to overcrowd the market while trying to gain more clients. Sizeable investments and how businesses aim to win over customers’ favour was investigated in a new report.

Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications

As one boom ends, another begins Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications, believes. (image: file)

As one boom ends, another begins Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications, believes. (image: file)

The Morgan Stanley Research report, a global investing firm, says as firms backed by big money, like Bharti Airtel, continue improving their network coverage and decrease tariffs, Africa will become more competitive. Old timers, such as MTN and Safaricom, that have enjoyed market dominance are set to be affected the most. According to the report, the boom will be replaced by market driven innovation, new products and expanding data services.

“All companies are focusing on driving data usage, and new services to reduce churn. The most important are mobile money services like M-Pesa, where innovation take-up is high,” the report says.

“We expect mobile revenues to grow from 3,4% of gross domestic product (GDP) in 2011 to 3,7% by 2015, as we believe mobile revenue growth will outpace GDP in the next four years,” the report says.

Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications, says there is little room for new entrants in the local market.

“Unfortunately, there has been market erosion of about 20%, mostly because of competition that has seen cuts in tariffs in the sector. A new entrant would have a lot of problems as the four firms (Safaricom, Bharti Airtel, Yu Mobile, Orange) are struggling due to stiff competition,” Bitange told Daily Nation.

Industry analysts agree with his conclusion. ”What we are seeing is a correction of factors like the supernormal profits that some telecoms have been enjoying in the past,” Techie Makau, a Nairobi-based telecommunications consultant, said.
Makau added that providers now have to focus on provision, customer service and value addition. In the Kenyan market, the average price per minute fell by 80% due to competition largely from Bharti Airtel, between Sh2 and Sh4 ($0.03-0.05).

Despite the report, Bitange believes the data market is set to kick off next. Kenya’s internet penetration is only 30%, so once fibre optic cables expansion starts he believes we are set for another boom. “The data market is beginning to take shape as the fibre optic network continues to expand,” he said, adding: “this will see a lot of consumption of broadband… and that is what the companies should be looking at.”

Nico Gous

While MTN is Africa’s largest mobile phone network provider, how does it stack up to the competition? While MTN is a native to Africa, most of the continent’s big players are rooted around the globe with parent companies in different countries.

Red Vodafone sign with logo

Although Vodafone is one of the biggest mobile phone networks in the UK, it also has operations in Ghana, South Africa and Egypt (image: London Evening Standard)

Although Vodafone is one of the biggest mobile phone networks in the UK, it also has operations in Ghana, South Africa and Egypt (image: London Evening Standard)

1. Vodafone

A star in the UK, Vodafone also has operations in Ghana, South Africa and Egypt. With 439.6-million subscribers, it is the second largest network in the world, after China’s China Mobile. The Chinese company has 649.5-million subscribers of which almost three quarters is owned by the Chinese government.

2. Telefónica

Spanish mobile network Telefónica, which includes Movistar, O2 and Vivo, is currently ranked as the fourth largest network, with just over 231.8-million subscribers. Operations span from Latin America to Western Europe, running networks in Sudan (as Sudan Unicom), and Morocco.

3. Airtel

Airtel, one of Africa’s most popular networks, has a subscriber base of just over 227-million users. The Indian company operates in Burkina Faso, Chad (Airtel Chad), Republic of the Congo (Airtel Congo Brazzaville), Democratic Republic of the Congo (Airtel DRC), Ghana (Airtel Ghana), Kenya (Airtel Kenya), Nigeria (Airtel Nigeria), Uganda (Airtel Uganda) and others.

4. Orange

Orange, owned by France Télécom, is popular in several nations. With over 217-million users, the French network has set up shop in Botswana (Orange Botswana), Cameroon (Orange Cameroon), Egypt (Mobinil), Equatorial Guinea (Orange Equatorial Guinea), Ivory Coast, Kenya (Orange Kenya), Madagascar (Orange Madagascar), Mali (Orange Mali), Niger (Orange Niger), Senegal (Orange Senegal), Uganda (Orange Uganda) and Togo.

5. Beeline

Beeline might not seem familiar, but the Russian network has 199-million subscribers across the world, and is owned by VimpelCom. Egyptian businessman Naguib Sawiris owns a large stake in the company operating in Egypt (Mobinil), Algeria (Djezzy), Burundi (Telecel), Central African Republic (Telecel), Namibia (Telecel) and Zimbabwe (Telecel).

6. MTN Group

MTN is the largest mobile network in Africa, in terms of indigenous network — where the top five are owned and operated by non-African companies. With a subscriber base of 152.3 million, the company employs 17 509 workers, operating in 21 African countries, including South Africa, Nigeria, Ghana, Sudan and Congo.

7. Etisalat

Ranked the 15th largest mobile network in the world (approximately 135-million subscribers), UAE’s Etisalat operates in several Gulf nations, including Benin, Burkina Faso, Central African Republic, Egypt and Gabon, as well as Ivory Coast, Niger and Nigeria.

8.  Qatar Telecom

Qtel is one of the largest public companies in Qatar with about 2 000 employees, and operates in Qatar, Algeria and Tunisia. In 2009, the company had just over 82-million subscribers. In 2011, Qtel became the first company in Qatar to reach internet trial speeds of 100 megabits per second.

Charlie Fripp – Online editor

Mobile Phone and Cash

Photo Credit: OpenIDEO

According to article released this week by Uganda Online, hospitals in Uganda are now accepting mobile money to pay for health expenses. While there are eight mobile providers in Uganda, four are providing mobile money services to their customers – MTN’s MobileMoney, Airtel’s ZAP, UTL’s M-Sente and Warid Pesa – with Orange Uganda planning on releasing their version of the service soon. In the article, a picture clearly shows that the hospital (Case Clinic) allows for mobile payments from MTN and Airtel. Other companies in Uganda are allowing for mobile payments – DStv (satellite TV provider), NWSC (water and sewerage) and Umeme (energy provider).

Utilizing mobile money in the health sector is nothing new. M-PESA in Tanzania has been used by the CCBRT Hospital to pay for patients’ bus ticket from rural areas to the hospital’s location in Dar es Salaam (the capital city). In Kenya, Changamka allows individuals to save and pay for health services by combining a medial smart card with M-PESA. In the Philippines, Smart Communications has partner with PhilHealth, a national insurance provider, to allow customers to pay their premiums via mobile money. This list continues as money mobile is being further employed in the health sector which includes insurance, vouchers program, and conditional cash transfers. The ability to save and pay via mobile money for health issues creates insurance for individuals and families that do not have access to typical insurance products. Mobile money has also been leveraged to pay nurses and community health workers serving in rural areas which helps with worker retention and decreases tardiness.

In the mHealth sector, this is a clear sign that innovative solutions can be shaped around current mobile products and services. Once mobile money has been established in countries, this opens doors for new businesses to be developed around the mobile money platform. The examples above show the need and desire for products that create the ability to both save and pay for health service. While the Ugandan example is not a revolutionary app (or killer app), it provides a necessary product so individuals and families can receive curial medical services. In this case, the ‘killerness’ of the service to using mobile money in the health care system is that it fits both the needs and infrastructure of Uganda, include accepting payments from multiple mobile providers.

South Africa’s second largest mobile operator, MTN plans to roll out over 1 000 Universal Mobile Telecommunications Systems (UMTS) base stations in rural areas for the next two years.

MTN SA’s Chief Technology Officer Kanagaratnam Lambotharan (image source: file photo)

During an interview session with ITNewsAfrica today, MTN Chief Technology Officer Kanagaratnam Lambotharan says his company’s vision was to provide mobile broadband connectivity throughout South Africa, citing the huge investments in solar powered radio transmission and Base Transceiver Station (BTS) sites.

MTN plans to bring the much-needed broadband capacity to millions of its subscribers in the country and its operations across the continent and the Middle East. The company has made significant broadband investments in the West Africa Cable System (WACS), and in East Africa Cable System (EASSy) undersea cables.

“These investments in undersea cables have already decreased the cost of Internet connectivity, further giving consumers an enhanced customer experience,” says Lambotharan.

“Broadband access will need to come from other access networks, such as mobile. For many consumers, their first internet experience is via a mobile handset, and MTN is working tirelessly to ensure that every customer has access to the World Wide Web,” says Lambotharan.

He says many studies have proved that access to broadband helped to contribute to socio-economic development and lead to a significant increase in a country’s GDP.

Lambotharan said Africa was still lagging behind in terms of broadband penetration, but was quick to point out that MTN was confident that when the undersea cables and fibre optic cables were operational they would spur socio-economic development and help the continent address the challenges of under development.

“The key limitations to rolling out infrastructure however remain the availability of high capacity transmission and in some cases grid power, which requires additional investment from telecoms players such as MTN.”

“As a company with operations in emerging markets, the availability of reliable energy sources in rolling and maintaining a reliable network is crucial.

“The unavailability of reliable energy supplies makes network rollout very expensive, thus dissuading potential investors from investing,” says Lambotharan.

Lambotharan says the cost of purchasing hardware such as computers and modems was the key factor that derailed universal broadband access.

“It is with this in mind that MTN launched Internet TV. The purpose-built keyboard provides customers with Internet access without the need to purchase computer hardware,” says Lambotharan.

Savious Kwinika

 

Magnus Mchunguzi, MD Ericsson SA

Ericsson is currently conducting Long Term Evolution (LTE) trials with a number of African mobile operators including Econet, Movicel and Unitel.

This is according Magnus Mchunguzi, Ericsson South Africa Managing Director.
“It is interesting that for the first time in Africa a lot of operators are asking for LTE, perhaps not on a large scale but as a trial offer. A lot of companies are trying to offer LTE on a network shared level,” says Mchunguzi.

“There is definitely a lot of movement in the LTE environment, he adds.”

Ease of deployment

Ericsson’s base stations have reduced the cost of deploying new broadband technology.

“One can get 2G, 3G, HSPA, and LTE on one base station. In the past if you wanted to offer new technology, you had to remove the hardware and install a new one. The cost of deploying new technology was very high. Today this will be driven purely by software updates. The platform remains the same and you simply update the software,” says Mchunguzi.

Ericcson is fully LTE ready according to Magnus: “Our new base stations, known as multi-standard radios, that are already offering 3G and HSPA have been deployed, we just need to update the software and they will be LTE ready.”

MTN pilot implementation

In early July 2011, MTN South Africa in partnership with Ericsson launched its LTE network in the Gauteng area of South Africa.
MTN SA’s Chief Technology Officer Kanagaratnam Lambotharan said the launch would give selected MTN customers a glimpse of the future.

“Being the first operator in Africa to launch an LTE pilot network of this scale is a reaffirmation of MTN’s vision to be the leading telecoms operator in emerging markets and emphasises our technology and innovation leadership in mobile communications.

On MTN’s investment in technology he says: “Full deployment of LTE in future will allow MTN to maximize its infrastructure investment to provide its subscribers with a quality experience that is richer, faster and with significantly more capacity than that provided currently.”

Bontle Moeng

The 2011 10th Anniversary iWeek conference, a South African Internet and telecoms industry’s annual gathering, will feature international speakers from six continents.

The 10th staging of the iWeek Conference kicks off on September 21 to 23 this year at the Royal Elephand, Eldoraigne, Centurion, South Africa. The annual event is a gathering of internet and telecoms players, but it is open to others. This year’s staging will focus on how the internet has changed societies.

The event, which is sponsored by MTN Business Solutions, Ad Dynamo and Vox Telecom, will feature leading speakings, including Juan Du Toit from MXiT, Peter Coroneos, chief executive of the Internet Industry Association (IIA), Dr. Roger Leslie Cottrell from the SLAC National Accelerator Laboratory at Stanford University, Jack Unger, president of Ask-Wi.Com and Ramy Raoof, online media officer at the Egyptian Initiative for Personal Rights.

Go here to register.

 

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