Digital Digest – DigAfrica´s Technology Alert

1. Tunisia: Telecoms updates
2. South Africa: World Wide Wireless
3. South Africa: Telecommunications Regulations Draw Fire
4. South Africa: Philips Enables Web-Based Telephony With Myoffice@net
5. South Africa: Virgin May Launch Cellphone Service On Vodacom's Network

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Tunisia: Telecoms updates

* Tunisia plans to issue its second GSM mobile phone licence by July. A
tender for the sale was opened in March, and the government has set a
deadline of May 5th for offers. Senior officials at the telecoms ministry
said there has been a lot of interest in the tender, which is open to single
independent firms and consortia.

Among the firms that have expressed interest in the tender are Portugal
Telecom and Egypt's Orascom. The licence will be for a 15-year period, with
an option to extend it for another five years.

* The first mobile phone licence in Tunisia was obtained in 1996 by state-
owned company Tunisie Telecom. The company has around 150,000 subscribers,
but with plans in place to expand its network, the firm expects to have
400,000 users by end-2001. According to government officials, thousands of
Tunisians had applied for mobile phones but have had to wait for
infrastructure expansion and/or the award of a second licence.

SOURCE: Business Africa via DigAfrica
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South Africa: World Wide Wireless
by Thebe Mabanga

Johannesburg, May 04, 2001 -- The Internet is increasingly becoming an
integral part of how stations pitch themselves to their target audiences.

A leisurely browse through the Net to check out various radio stations can
spring up surprises ranging from rude to pleasant. You can be jolted into
life by the antics of United States shock jock Howard Stern or check out the
burgeoning campus radio sector, also in the US.

If you are lucky you might bump into the husky-voiced, former 5fm babe
Cleone Cassidy, now enjoying love and limited sunlight in London.

South African radio stations have some way to go in their attempt to exploit
the Web as an outlet to reach new listeners. A few have made bold strides,
but the rest have only scratched the surface.

The most worrying failure is the stations' inability to provide content,
either by using in-house talent to churn out original content or by
partnering with content providers to deliver sports, international news and
highly specialised material.

Interestingly, radio DJs across the board do not mention what's new on their
website. I believe that updating websites is as important as the station ID.
Stations like Safm (SAfm Online, www. safm.co.za) invest considerable effort
in providing content. During the Olympics, they took us to the town of
Valhalla, which was completely insulated from the sporting frenzy. Gerald de
Kock brought us a lively diary to put the hype in its proper context.

Their recent acquisition of the services of sportswriter Luke Alfred can
only serve to improve their service. Now if they can also rope in the
talented Darrel Bristow Bovey to write for the site. He is a correspondent
for Michelle Constant's show.

Radio 702 has a potentially impressive website " 702 Online at www.702.co.za
" made more appealing by the use of a brightly coloured background. On the
site you can check out excerpts of an interview you missed or obtain an
important telephone number that was given out or preview your favourite
shows. You can also " as on radio websites " meet the station's
personalities.

Given the calibre of the station's presenters, I expected a bit more from
their site. I would like to know what, say, Jenny Crwys-Williams is reading
at the moment and why she thinks I should also read it. I also would not
mind a well-written, carefully thought-out column by Jon Qwelane on the
latest political developments.

A site definitely worth checking out is 5fm's at www.5fm.co.za. It is
colourful and zany, reflective of the station's energy. At the moment you
can test your musical knowledge on Stardom, a somewhat difficult music
trivia game.

If you are keen to know what the country's youth get up to during school
hours, spend some time on the Yfm website, Y-World at www.yfm.co.za. The
young lions kick butt.

One site that is underused is that of Metro FM (www.metrofm.co.za). It is
nothing more than a glossy billboard for the station DJs' profiles.

Metro seems unconvinced that the black middle class " who access the site
from offices and tertiary institutions " are worth a dedicated team of
webmasters and writers. Well they are, for the simple reason that when
Metro's current profit boom goes bust " it will, it always does " say around
2004, the station will need new revenue spinners. By then the Web will be
widely accessible and well positioned to roll in serious bucks.

One way in which Metro can boost content is to provide links to the websites
of the artists they hero worship.

Another example was provided by sports anchor Morio Sanyane, who constantly
told us how he had letters from Pirates fans after their team's defeat by
Moroka Swallows last week. It would be great to see these on the Web.

SOURCE: Mail & Guardian. via DigAfrica
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Telecommunications Regulations Draw Fire
by Lesley Stones

Johannesburg, May 03, 2001 -- Draft regulations drawn up to govern South
Africa's telecommunications industry have been dismissed as nothing but a
set of "incomprehensible riddles" by the Democratic Alliance (DA).

The regulations, intended to shape the landscape once Telkom's monopoly
expires, give little clarity to an already confused industry, said DA
spokeswoman Dene Smuts. "It is unacceptable that we have incomprehensible
policy guidelines," she said.

She was speaking yesterday as the communications portfolio committee met
companies including Telkom, MTN and Vodacom to hear their views on the
proposals.

The communications department has called for public comments, but industry
players were having difficulty in responding, claimed Smuts, as the
guidelines were so ambiguous.

The proposed policy centres on licensing just one rival to compete with
Telkom and ensuring the new operator includes the telecommunications arms of
Eskom and Transnet in its consortium.

Yet it does not specify what percentage of the consortium must be set aside,
nor say how the contributions from Eskom and Transnet will be evaluated.

Another contentious proposal is to maintain the ban on carrying voice
traffic over data networks, except in rural areas not served by Telkom, MTN
or Vodacom. Network operators argue that it is impossible to police voice
over internet traffic, and argue that SA is trying to stifle a technology
which is rapidly gaining worldwide acceptance.

Vodacom CEO Alan Knott-Craig told the committee the most vital need was to
give the Independent Communications Authority of SA (Icasa) full
independence to regulate the industry and the cash to recruit the best
brains in the industry.

If Icasa was not worthy of international respect, SA would not be able to
attract international investors to the telecommunications industry, he said.

The Cape Telecommunications Users' Forum, a body representing technology
companies, is calling for government to rethink its plans to opt for a
telecommunications duopoly.

That is not in the best interests of SA citizens, since only an increase in
competition can improve the quality and choice of services at a lower cost.
SA is unlikely to see those benefits under a duopoly. It will limit
potential price reductions and contradicts government's stated policy of
developing the information technology sector, the forum says.

SOURCE: Business Day via DigAfrica
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Philips Enables Web-Based Telephony With Myoffice@net
by Phillip De Wet

Johannesburg, May 03, 2001 -- Philips Business Communications has launched
its suite of Web- based telephony applications in South Africa under the
MyOffice@Net banner.

The range is billed as software which allows both pure IP office telephony
and a gradual migration from analogue phone equipment to their PC-based
counterparts.

The software product is based on a server acting as an interface between
desktop PCs and a normal PABX, through applications accessed via Web
browser.

Specific applications include a browser-accessed corporate telephone
directory, through which a server can initiate a call via the traditional
PABX, and a PC phone display which provides caller identification on older
analogue equipment.

Also available for digital phones is the ability to remotely configure an
office phone to forward calls to a mobile phone or other number.

Modules available in the MyOffice@Net range, but not demonstrated at the
launch, include unified messaging and a softphone that does not require a
physical telephone instrument.

"These applications are not vapourware, they are available now," says
Philips technologist Mike Allsworth of the product, launched at the recent
Cebit faire in Germany.

Similar products are already available from a range of other vendors,
including 3Com, which has struck a partnership with Telkom to provide IP
telephony solutions.

Allsworth says companies such as 3Com and Cisco may have impressive
technology when it comes to IP telephony, but lack a current customer base.

"Many companies have existing systems and don't want to replace them, so we
give them the opportunity to move over to IP without spending a whole lot of
money immediately."

Philips is optimistic about the uptake of MyOffice@Net, predicting that the
industry will be surprised at local demand for such a product.

SOURCE: ITWeb. via DigAfrica
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South Africa: Virgin May Launch Cellphone Service On Vodacom's Network
by Lesley Stones

Johannesburg, May 03, 2001 -- The cellphone market in South Africa could be
in for a shake- up if the UK-based Virgin Group succeeds in piggybacking a
new service on Vodacom's network.

Vodacom CEO Alan Knott-Craig confirmed yesterday the company was in
preliminary talks to bring Virgin Mobile to South Africa. The deal would see
a competing cellphone service launched in SA under the Virgin brand but
leasing spectrum and infrastructure from Vodacom.

Knott-Craig said discussions were at an early stage, as several regulatory
issues would have to be overcome before the venture would be permissible in
SA.

"The upside for us is that if someone comes in with a whole new strategy it
fires up the market, and by using our network it bolsters our revenues," he
said.

Virgin chairman Richard Branson, visiting SA this week, declined to comment
on specific negotiations. "There are no immediate plans to launch mobile
services here, but it's a product we may bring here in the future," he said.

However, in February he cited Africa as a target for Virgin Mobile's
services in the coming year. A Virgin insider confirmed that a team visited
SA last week to assess the opportunity.

Vodacom estimates that SA will have 21-million cellphone users by 2006, but
Knott-Craig says that could approach 30million if an innovative newcomer
enters the market. "Virgin would find a niche market and bring new users to
the networks," he said.

The Independent Communications Authority of SA will have to decide whether a
virtual mobile service will be permitted. A spokesman said the body could
not comment until its experts saw some detailed proposals. "It seems like a
lot of things may become possible under the new regulations," he said.
KnottCraig said current regulations did not provide for a company operating
a service without running its own network.

MTN is also considering sub letting its network facilities. Spokesman Roy
Paige said MTN was not in talks with Virgin, but had held talks about
sharing its infrastructure with other players.

Since its launch in 1999, Virgin Mobile has become the world's most
successful virtual network operator, with more than half a million
customers.

SOURCE: Business Day. via DigAfrica

Digital Digest – DigAfrica´s Technology Alert
May 04, 2001

1. South Africa: Country Launches First Internet Sports Betting Site
2. South Africa: Virgin's Move Could Be Good News for Consumers

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South Africa: Country Launches First Internet Sports Betting Site

Boot Reporter, May 04, 2001 -- SportsBet.co.za recently became SA's first
bookmaking operation to offer sports betting through the internet. Predicted
by Merrill Lynch to reach an astonishing £68 billion by 2015, as the largest
and fastest growing part of the booming online gaming business, internet
sports betting has already become a major industry in countries such as the
UK and Australia.
Enabled by the newly-released, world-class technology platform developed in
SA by its strategic partner Livebet online, Sportsbet expects to be a
significant participant in the anticipated growth.

Already a well-established and leading corporate bookmaking operation based
in Cape Town, SportsBet's management are responsible for introducing
spreadbetting to the country. The new service caters specifically to the
South African sports enthusiasts looking to spice up their sports viewing.

SportsBet MD Ken Young said: "I believe we have succeeded in creating a
highly secure and credible sports betting opportunity for our customers,
which also ensures ease-of-use. In addition to the financial support of our
corporate shareholder, we are able to lend further comfort to our customers
by being fully regulated and controlled by the Western Cape gambling and
racing board."

In its first few weeks of operation, SportsBet has already experienced a
marked uptick in betting activity."This is an opportunity for a far broader
range of people to enjoy the process of backing their favourite team, or
trying to predict the outcome of an event they are following. For our
traditional customers, it also offers more convenient access to our
services. The website makes the entire process extremely easy."

If the outlook for the online sports betting industry recently predicted by
Merrill Lynch is anything to go by, then both SportsBet and LiveBet online
have an enormous opportunity ahead of them. Merrill estimates that the
market for online gaming could grow from a present turnover of £4bn to
£123bn by 2015. sports betting is projected to account for 55% of this
turnover.

SOURCE: WOZA via DigAfrica
--------------------------------

Virgin's Move Could Be Good News for Consumers
by Lesley Stones

Johannesburg, May 04, 2001 -- Trust Virgin and its charismatic chairman
Richard Branson to throw a spanner in the works.
Just as we get used to the idea that Vodacom and MTN will soon be joined by
Cell C, along comes Virgin with offbeat plans to offer a cellphone service
in South Africa.

Except that Virgin has come up with a novel way of entering the market.
Instead of fishing around for monstrous amounts of cash to build a network
of its own, Virgin smartly uses what is already there.

It did it in the UK, where Virgin Mobile has attracted most of its 865000
customers in 18 months. It did it in Australia, by leasing network capacity
from Cable & Wireless Optus. It will launch in Asia this year by
piggybacking on the network of Singapore Telecom. And now the Branson brand
is eyeing SA.

That could be great news for consumers. Virgin has a habit of shaking up
cosy industries by barging in with new ideas, better services and lower
prices.

Virgin Mobile is a virtual mobile network operator, which leases its
spectrum and networking equipment from established operators such as
Vodacom.

Virgin sets up its own billing system and has its own number range, but
leaves the rest to the network operator.

Then Virgin does what it does best launches a flashy marketing campaign and
builds on its brand name to woo customers.

Speaking at a global system for mobile communications congress in Cannes in
February, Branson said virtual operators signalled the end of the
traditional market.

Yet network operators should not be nervous, he said, since the partnership
generated additional revenue and attracted new users to their systems.

Since Virgin likes to strike an equity deal with the company whose networks
it uses, increased traffic for one is increased revenue for both.

Besides, said Branson, a fresh brand attracts new users rather than simply
dividing existing customers a little thinner.

Since the deal could prove lucrative for Vodacom, it is lobbying government
to allow virtual operators to enter SA.

Vodacom's CEO, Alan KnottCraig, says cellular licences should be amended to
let a service provider buy capacity and resell it under its own brand using
its own numbers.

Issues for the Independent Communications Authority of SA to address include
whether a virtual operator would need a licence although it was not running
a network; if it could apply for separate numbers; and how its tariffs would
be regulated.

Knott-Craig believes there are enough potential customers to keep Vodacom,
MTN, Cell C and Virgin profitable. By 2006 SA will have 21-million cellphone
users, up from today's 9-million (even if) "we don't do anything clever".

In the UK, Virgin Mobile became the first operator to abolish peak rates,
the first to offer one tariff for all customers, and the first to let
prepaid users conduct mobile commerce.

Its VirginXtras include e-mail, a diary, internet access and data services
which users can programme to suit individual tastes.

Virgin and Branson have such general consumer credibility in the UK that
customers happily swear allegiance to the brand.

In SA, Virgin cannot claim that status. In fact Andre Wills, a
telecommunications analyst with BMI-TechKnowledge, believes its image could
work against it in SA. Virgin is seen as a high-income white brand, he says,
and the cellphone market in that category is almost saturated.

He suggests a soccer club like Kaizer Chiefs could come in swiftly, to set
up a virtual mobile network, and have more success by targeting a huge
market largely bereft of cellphone services.

Consumers may not benefit from lower prices, says Wills, since a virtual
operator pays a wholesale price to use the network, then adds enough profit
to be viable. The benefit to consumers comes in better, more responsive
customer care and new, innovative services, he says.

In some ways, a virtual operator extends the service provided by companies
like Autopage, which resell airtime on behalf of the operators. Yet they
simply sell services devised by MTN and Vodacom, and do not invent offerings
of their own. Nor do they have their own range of numbers to differentiate
themselves.

Discussion about the legal challenges and the potential benefits may prove
academic if Virgin Mobile chooses not to enter SA. Yet with other virtual
operators being established overseas, it is inevitable that someone will
soon force the issue.

SOURCE: Business Day via DigAfrica
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