Nigeria recently held its annual Finance and Information Technology Summit (FITS) on 26 July in Lagos, as an annual forum where ICT stakeholders and professionals from the banking and financial sector can interface. The theme for this year's seminar and exhibition was "seamless ICT integration in a Post-Consolidation Era".

The Director-General of the Nigeria IT Development Agency (NITDA), Professor Cleopas Angaye, made a presentation to the Summit where he stated that the success of e-payment solutions within Nigeria depends on the provision of adequate infrastructure, reliable helpdesk services and an enlightened population. He noted that, in the absence of trust, it will be difficult to convince potential buyers and sellers to migrate from the traditional platforms to more high-tech e-payment and e-commerce. Mr. Ekeigwe, President of Information Systems Audit and Control Association (ISACA Lagos) argued that "IT governance" has not got the attention it deserves as IT needs more technical insight and has traditionally been viewed as separate from business processes.

For more information, please see here.

The Namibian Government is hosting a two-day event in Windhoek this Thursday and Friday, entitled 'ICTs for Poverty Reduction and Sustainable Development'. The conference is jointly organised by the Ministry of Information and Broadcasting, the Namibian Communications Commission (NCC) and the ICT Alliance, a body comprising key ICT industry players.

Following a convention on the new Information Communications Bill last week, the conference will allow for a full review of the ICT industry and the legislative environment for ICT in Namibia. The Namibian ICT industry has an annual turnover of about N$1 billion, but according to Namibia's ICT Alliance, only between N$400 million and N$450 million goes directly into the ICT sector, with the remainder going into the banking, retail and financial industries. However, the vice-Chairperson of the Namibian ICT Alliance suggests that "Most of the IT support to these sectors are done by South African companies, and there is little transfer to the local industry, which is currently in turmoil".

For more information, please see here.

Telefónica Group today posted a 3'830 million euro profit for the first half of the year, fuelled by a 10.6% increase in revenues and an 11.3% increase in customer base to achieve a total of 212.6 million 'accesses' or customers by the end of June 2007.  Telefónica Group has subsequently raised its guidance for its full year results and now expects full year revenues to increase by 8-10%.  By the end of June 2007, Telefónica had 9.1 million retail broadband accesses, nearly 155 million mobile accesses and in excess of 1.3 million pay TV accesses.

Telefónica Espana accounted for 36.6% of consolidated Group revenues, while Telefónica Latinoamérica was the source of 34.6% of consolidated Group revenues. Telefónica O2 Europe contributed just over a quarter or 25.4% of Group consolidated revenues. Highlights of interest include:

- high growth in mobile data revenues for Telefónica Espana, with data Average Revenue Per User (ARPU) achieving its "highest growth in years, due to content and connectivity services";
- A total of 121.8 million accesses for the Telefónica Latinoamérica group, up nearly 14% year-on-year, with mobile clients exceeding 90 million for the first time;
- Revenue growth for Telefónica O2 Europe remains steady at an expected 11-14% for the full year.

For more information, please see here.

 

 

The UK regulator OFCOM has just published new research on the market for Voice over Internet Protocol (VoIP) in the United Kingdom.  OFCOM estimates that VoIP services had been used by 2.4 million UK households by the end of 2006, double the estimated total at the end of 2005. Nearly one quarter of VoIP users (23%) claimed to be with more than one service provider. However, OFCOM found that a large proportion of users were unaware of all the different types of services they had access to and concluded that there seems to be a substantial lack of knowledge among VoIP users about the services they have or can access.

The research report on VoIP has been released to coincide with OFCOM's latest consultation on the regulation of VoIP services. OFCOM has conducted two previous consultations on VoIP in October 2004 and on VoIP regulation in February 2006, followed by a Statement in March 2007. In its latest consultation, OFCOM proposes that any VoIP provider offering VoIP calls to traditional fixed phones or mobile phones ("type 2 VoIP services"), or making calls to and receiving calls from traditional fixed phones or mobile phones ("type 4 VoIP services") should allow users to call 999.  The closing date for responses is by 30 September 2007.

For more information, please see here.

BT Group announced its results for the first quarter of 2007. Total revenue has risen by 3.5 per cent to £5,033 million in the quarter with continued strong growth in new wave revenue. Growth in total revenue outweighted the rise in EBITDA before specific items and leaver costs, which grew by 2.8 per cent.

Strong growth was observed in 'new wave' revenue generated from networked IT services and broadband, which grew by 11 per cent more than last year to £1,815 million and now accounts for 36 per cent or more than a third of the BT Group’s revenue. Networked IT services revenue grew by 8 per cent to £1,061 million, and broadband revenue surged by a massive 19 per cent to £540 million.

By 30 June 2007, BT had 11.2 million wholesale broadband connections (DSL and LLU), including 2.4 million local loop unbundled lines, an increase of 2.5 million connections year on year as the broadband market continues to show strong growth. In the UK, BT is rebuilding its core national network and reports that, following a successful pilot trial of in Cardiff, it is on track to launch 'next-generation broadband' services delivering up to 24Mb nationally in early 2008.

For more information, please see here.

Europe puts in a solid performance in the latest analysis of digital opportunity by the ITU. Although Europe loses out on the first two places in digital opportunity to the broadband kings of Asia (the Rep. of Korea and Japan), five out of the top ten countries are European. Denmark ranks at Number three and, alongside Japan, is a top contender for first place next year, if its current growth rates in broadband subscribers (fixed and mobile) continue.

Denmark, Iceland and the Netherlands lead Europe. Within Europe, a sharp divide in digital opportunity between Eastern and Western Europe is apparent (with Estonia and Lithuania notable exceptions to this rule, with over 90% of their Internet subscriber base using broadband connections). A combination of rising disposable incomes, falling prices for broadband and a thirst for new technologies among the countries of Eastern Europe mean that this gap is closing fast, however. Albania and Moldova are notable for having the lowest digital opportunity in Europe; at 107th and 111th worldwide (out of 181 countries measured by the Digital Opportunity Index), their 'low' rankings within Europe help put the global digital divide into context.

 

For more information, please see the ITU/UNCTAD World Information Society Report 2007.

Asia-Pacific continues to lead the world in digital opportunity, home to five of the top ten countries in digital opportunity.  The Republic of Korea ranks first in digital opportunity with a DOI score of 0.80, but its lead is being fast eroded by Japan's strong gains in mobile broadband subscribership, which boosted its DOI score to 0.77.  If current growth rates continue, Japan could overtake the Republic of Korea as early as next year.

 

The Digital Opportunity Index measures advanced technologies such as broadband Internet and 3G mobile, which means that it is ideally designed to capture the growth in these markets.  In Singapore, the "wired island", fixed broadband Internet subscribers rose as a proportion of the Internet subscriber base from 70% to 83%, which boosted its Utilization Index and catapulted it to fifth place in the world rankings.

Asia-Pacific also encapsulates a regional digital divide, however. It is home to Myanmar, with the third-lowest digital opportunity in the world, at 0.04, as well as Afghanistan, Cambodia, Lao PDR and Korea PDR. These are issues that organisations such as the Association of South-East Asian Nations (ASEAN) (which has launched an e-ASEAN Framework Agreement) and LirneASIA are fighting to address.

For more information, please see the ITU/UNCTAD World Information Society Report 2007.

The ITU has published its latest evaluation of digital opportunity for the Americas.  In line with the concerns of the US Federal Communications Commission over the United States' lacklustre performance in fixed broadband - in 2006, the US FCC Commissioner Michael J. Copps noted that the United States came twenty-first in the ITU's DOI 2005 - Canada continues to lead the Americas in digital opportunity, although its lead over the United States has narrowed considerably from 0.03 in the DOI 2005 to 0.01 in 2006. This is due to strong gains by the United States in mobile penetration (which rose from 61 mobile subscribers per 100 capita to 70 per 100 capita in 2005) and an increase in broadband subscribers over the same period of over 12 million.

Certain Caribbean islands also do very well in the DOI, due to their high dependency on tourism and service industries such as banking, requiring good communication links. In 2006, digital opportunity in both the Bahamas and Barbados exceeded 0.60, while islands such as Antigua & Barbuda, St. Kitts & Nevis, Jamaica, Dominica, Trinidad & Tobago and the Dominican Republic all made strong gains in digital opportunity. The first lady of the Dominican Republic, Dr. Margarita Cedeño de Fernández, was honoured with a World Information Society Award this year by the ITU for her work in establishing 135 Community Technology Centres throughout the Dominican Republic. Not so at the other end of the scale, however, where digital opportunity in Haiti remained static at 0.15.  In Latin America, Chile continues to lead Latin America in digital opportunity, although Argentina's strong gains in Internet usage and fixed broadband subscribers have boosted its digital opportunity.

The designations employed and the presentation of material in this map do not imply any opinion whatsoever
on the part of the ITU concerning the legal or other status of any country, territory or area
or any endorsement or acceptance of any boundary.

More information can be found in the ITU/UNCTAD World Information Society Report 2007.

ITU has published its latest evalution of digital opportunity across the continent of Africa (see graph below). The Digital Opportunity Index assesses countries on eleven different indicators, organised into three clusters of Opportunity, Infrastructure and Utilization. Measurements of digital opportunity for Africa show that, whereas last year, only three countries had a DOI score in excess of 0.40 (Mauritius, Seychelles and Morocco), in 2006, seven countries had DOI scores greater than 0.40 (in addition to these three, Algeria, Egypt, South Africa and Tunisia joined them with a DOI score of above 0.40).

The designations employed and the presentation of material in this map do not imply any opinion whatsoever
on the part of the ITU concerning the legal or other status of any country, territory or area
or any endorsement or acceptance of any boundary.

Analysis of the DOI results shows that, in Africa, digital opportunity is undoubtedly mobile. Mobile phones now outnumber fixed lines by five to one, a ratio that is even higher in sub-Saharan Africa, where nine out of ten subscribers use a mobile.  African mobile penetration doubled from 6.5 per 100 inhabitants in 2003 to 13.1 per 100 inhabitants in 2005. As a region, Africa's mobile market has been the fastest-growing market in the world, averaging 50 per cent growth per year since 2000; enviable growth rates that strategic investors such as Celtel, Orascom, MTN and Vodacom are profiting from.

The results for digital opportunity in Africa are published in the ITU/UNCTAD World Information Society Report 2007.

WiMAXCounts.com provides data on the top operators in terms of BWA/WiMAX subscriber numbers as of Q1 2007. According to WiMAXCounts.com, three of the top nine operators originate in the United States (Clearwire, Mobile Pro and Aerotechtel), while two of the top nine operators are Spanish (Iberbanda and Banda Ancha). These results can be compared with findings from the research consultancy ABI Research, which projects that Sprint Nextel, Clearwire, and NextWave Wireless will be the three dominant mobile WiMAX service providers in the United States, with a range of mobile services to support different devices.

For more information, please see here.

WiMaxCounts.com suggest that the total number of WiMax subscribers worldwide is set to break through the one million subscriber count anytime soon. WiMaxCounts.com records 950 million WiMax subscribers by the end of Q1 2007, 17.5% up on December 2006 and equivalent to 85% growth year-on-year over Q1 2006. At the start of 2007, the market for WiMAX was growing at a rate of 150,000 subscribers per quarter.

This rapid growth in subscriber numbers confirms the growing market acceptance of WiMax. For more information, see here.

At least eleven African countries, including Ghana, Nigeria and South Africa, now have Internet Exchange Points (IXPs). These countries can benefit from more efficient peering arrangements and cheaper international connectivity and bandwidth.

The current issue of Balancing Act Africa quotes the Chief Executive Officer (CEO) of the Nigerian Internet Exchange (NIXP) as saying that eleven sub-Saharan African countries now have international Internet Exchange Points (IXPs), following the commissioning of Nigeria's Internet exchange in late 2006, at a cost of about 30 million naira, according to the online magazine Tectonic. Balancing Act Africa quotes Rudman as observing that "hitherto, all ISPs within Nigeria have been connected at foreign countries, which meant that the data of a student within Lagos browsing their university website located within an ISP in Lagos travels first to Europe or the United States, before getting back to the Nigeria. The scenario is just like going to Ibadan from Lagos via the U.K. or U.S.A.... This means that Africa is paying overseas carriers to exchange 'local' [continental] traffic on its behalf. This is costly and inefficient". Rudman estimates that the use of international bandwidth for national data or "unnecessary international transit" costs Nigeria over US$100 million each year. Rudman notes that by peering with other ISPs at the exchange point, it means all local internet traffic can remain local within the seven ISPs connected to NIXP and the first public telecom operator to connect to it last week - Starcomms.

African countries with Internet exchanges include: Angola, Botswana, Congo DR, Egypt, Ghana, Kenya, Mozambique, Nigeria, Rwanda, South Africa, Tanzania, Uganda and Zimbabwe.

Telkom South Africa has announced tariff reductions for telecom services, which, if they are approved by the Independent Communication Authority of South Africa (ICASA), should come into effect from 1 August 2007. The move follows earlier tariff reductions by its competitor MTN, which ITU reported in February of this year.

Balancing Act Africa notes in its current issue [Balancing Act Africa Issue 363] that Telkom, which until recently had the monopoly in fixed-line telephony, has been criticised for charging high tariffs that make it difficult for underprivileged people to access a wide array of telecoms services. Telkom's move would seem partly to address this criticism, with reductions of as much as 10% to 38% for ADSL broadband (depending on package and speed) and reductions of around ten per cent for long-distance and international calls. Prices for data transmission could be reduced by as much as 11.9%. Telkom notes that it filed an overall price decrease of 1.2% on its regulated basket of products and services with ICASA. Such a move should help make telecom services more affordable for South Africa's substantial rural populations and urban poor.

For more information, please see here.

Antigua may have only a small population of 70,000 people, but it is certainly facing some big issues.  According to an article yesterday in the Antigua Sun newspaper, the use of Voice over Internet Protocol (VoIP) has increased exponentially over the last couple of years, while the telephony voice calls revenue of the Antigua Public Utilities Authority (APUA) revenues have been stagnant, and even declining. VoIP has been illegal in Antigua since the introduction of the Telecommunication Law in 2003, but an article in Telecom Web suggests thatthe Government may now move to enforce this ban, on the basis that they are losing tax revenues from VoIP services.

Telecom Web also suggests that the move may be linked to the massive revenue losses that Antigua is suffering from the U.S. gambling ban (an issue that has been pursued though the WTO). In the long-term, VoIP may be legalized as part of moves towards liberalization and the ending of Cable & Wireless' monopoly. The Antigua Sun quotes Darren Derrick, general manager for Digicel, a competitor in Antigua as saying that negotiations over liberalization have not been going the way he had hoped.

Antigua represents a microcosm of larger issues facing many other countries and small island states heavily dependent on tourist and telecommunication revenues.

The ITU has conducted a survey of the legal and regulatory status of VoIP around the world in 2006. For more information, see here.

In this year's edition of the World Information Society Report 2007, ITU includes the very latest statistics monitoring the evolution of the digital divide, using a variety of statistical techniques. The digital divide is narrowing most rapidly in mobile telephony, with one in two people in the world expected to have access to a mobile phone by the end of this year. Low-income countries are making important gains in mobile telephony (see Figure), with mobile phones outnumbering fixed lines by seven to one in LDCs and by as much as nine to one in Sub-Saharan Africa.

The digital divide is also narrowing in terms of Internet usage.  In 1997, the nearly three-quarters of the world's population living in low-income and lower-middle income economies accounted for just 5% of the world's total Internet users.  By 2005, they accounted for 32.5% or nearly a third of all Internet users. The digital divide is evolving, however, and gaps in access in the high-speed broadband technologies that will matter the most in tomorrow's 'information economy' are more marked - low-income economies accounted for under 1% of total broadband subscribers worldwide, while lower-middle income economies accounted for just 20% or one fifth of the global total.  The digital divide may be narrowing, but it is taking on new aspects in terms of speed and the quality of access.

"Chapter two: Bridging the Digital Divide" of the World Information Society Report 2007 can be read here.

The ITU has monitored trends in broadband subscribers and the price of broadband services around the world since 2002.  By early 2007, broadband was commercially available in 170 countries, with the latest country to launch commercial ADSL services being Lesotho in early 2007.

In 2002, broadband services were available in just 81 countries, mostly industrialized OECD countries, transition economies in the Commonwealth of Independent States (CIS) and some developing countries in Asia-Pacific.  By 2006, the number of countries with commercial broadband service had more than doubled to reach a total of 166 countries, with a number of operators in African countries launching broadband services, including in Botswana, Ghana, Rwanda and Libya.

Chapter three: The Digital Opportunity Index of the World Information Society Report 2007 tracks growth in the Information Society around the world, particularly in the more advanced broadband technologies of 3G mobile and broadband Internet service.  It examines key trends in telecom markets, such as whether subscribers are 'cutting the cord' and the death of dial-up.  To download the text of the chapter for free, please click here.

Etisalat Egypt claimed to have achieved a customer base of 400,000 subscribers at the end of its first month of operations, after officially launching operations on 30 April 2007.  This is strong subscriber growth in the booming Egyptian mobile market, which Etisalat shares with Vodafone Egypt and MobiNil.

As previously reported by ITP.net, the Egyptian Communications Minister, Dr. Tarek Kamel, recently announced Egypt would offer a licence for a second fixed services operator, ending the monopoly of the incumbent operator, Telecom Egypt. According to a report by news agency MENA, Etisalat Egypt may bid for Egypt's second fixed line network licence.

Meanwhile, a press release by AMEInfo reports that Etisalat UAE and Research in Motion jointly announced 14,000 new subscribers to Etisalat's Blackberry service over the first year of operations, since the service was launched in May 2006.  Etisalat continues to go from strength to strength, in a region where mobile ownership is expected to exceed one in two people by the end of this year.

This year's edition of the World Information Society Report 2007 notes that growth in the global Information Society is not without risks and the Report examines the potential pitfalls of growth in the rise of online fraud, other risks and threats to cybersecurity. The expansion of the Internet is opening up many new opportunities for criminals to exploit online vulnerabilities and commit criminal acts or attack countries' critical infrastructures.

Threats in cyberspace are evolving rapidly and deserve greater attention for several reasons. The evolution of telecommunication networks towards Next-Generation Networks (NGN) with decentralized intelligence at the edges of the network could raise new security issues. The capacity and speed of networks are increasing, accelerating the transmission of malicious software alongside other Internet traffic. Transmission and encryption protocols are also constantly being updated. Meanwhile, convergence offers new opportunities for 'cross-infection', with the problems of one access device feeding into other ICTs.

Viruses, spyware, phishing, identity theft, denial-of-service attacks and zombie botnets are endangering cyberspace and jeopardising the very future of the Internet. According to one source, spam and other exploitation now account for up to 90 per cent of all email traffic over the Internet. Spam has now mutated from a general annoyance to a broader cybersecurity threat, acting as a platform for many other types of scams (see Figure).

Chapter five, "Challenges to building a safe and secure Information Society" of the World Information Society Report 2007 examines these issues.

Using age-disaggregated data from the most recent 2006 Infocomm Survey of the Singapore Infocomm Development Agency (IDA), ITU has calculated the age divide for Singapore using the Digital Opportunity Index (DOI). The Digital Opportunity Index is calculated on the basis of eleven indicators (grouped in three clusters of Opportunity, Infrastucture and Utilization) which can be disaggregated by age, gender, area or region to investigate different aspects of the digital divide.

Not surprisingly, in Singapore, the 15-29 age group makes the most use of ICTs, with a DOI score of 0.80, eight percentage points above the national Digital Opportunity Score of 0.72. Conversely, the 60+ age group lags behind the national average by some nine percentage points.  The total gap in digital opportunity between tech-savvy youth and the elderly amounts to some 17 per cent, with the greatest gaps observed in rates of Internet usage. The only area where the elderly (60+) do better than the youth of Singapore is in access to mobile broadband, which may reflect the greater disposable income of retired workers and ability to buy more sophisticated mobile handsets.

The Government of Singapore has introduced a comprehensive plan, IN2015, that seeks to address the age divide, amongst other issues.

This analysis is presented in chapter four of the ITU-UNCTAD World Information Society Report 2007, available to buy here.

The Telecom Regulatory Authority of India (TRAI) has just issued its Quarterly Performance Indicators of Telecom Services for the quarter ending 31 March 2007. Total gross telephone subscribers (wireless and wireline) surpassed 200 million subscribers for the first time. Total telephone subscribers grew from 189 million in December 2006 to 205 million in March 2007, an increase of 8% during the quarter. Year-on-year growth is even higher, with total telephone subscribers having grown by 46% since March 2006, mostly due to stunning growth in the mobile market, with over 5 million new mobile subscribers being added each month and 6.6 million mobile subscribers during the month of May 2007 alone. (For a comparison of April 2007/May 2007 results, please see here).

Intriguingly, trends in mobile Average Revenue Per User (ARPU) are mixed. The Telecom Regulatory Authority of India reports that the all-India blended ARPU for GSM services fell by 5.7% from Rs 316 in December 2006 to Rs 298 in March 2007, while the all-India blended ARPU for CDMA services grew by 3.1% from Rs 196 to Rs 202 over the same period.

The number of broadband subscribers (with connections at speeds in excess of 256 kbit/s) grew by 13.8% over the first quarter of 2007 to 2.34 million at 31 March 2007.

These performance indicators confirm that the impressive growth in the Indian telecom market is continuing. Such growth is contributing to progress towards the milestone of half the world's population having access to a mobile phone, a milestone that ITU expects will be achieved before the end of this year.

For access to all recent press releases by the TRAI, please see here.

According to a survey of United States federal government agencies released last week by Cisco, an overwhelming majority of respondents believe that coordination of a mobile or remote workforce will be improved through unified communications - the integration of voice, video and data, delivered across a secure Internet Protocol (IP) infrastructure.

The survey of 200 federal information technology decision-makers and IT executives showed that wireless laptops, mobile devices and video-conferencing systems are widely used across different agencies of federal government. Nearly 50 percent of federal organizations now use instant messaging. More than 75% of all respondents report that perceptions and concerns over security pose a challenge to an enterprise-wide implementation of an integrated system, with security and reliability cited as the two greatest overall concerns.

More than two-thirds of respondents plan to have the capabilities to provide real-time notification and identification of employees and instant messaging or live chats in their agencies within the next 18 to 24 months.

The survey was commissioned by Cisco and carried out by Market Connections and can be read here.

The International Telecommunication Union (ITU) and the European Broadcasting Union (EBU) are jointly holding a meeting of high-level experts to identify key trends and to address the new technological and policy challenges in the digital content delivery environment.

To view the ITU/EBU conference via webcam, click here.

More information about this meeting can be found here.

Dr. Hamadoun Touré, Secretary-General of the ITU, participated in the 17th World Economic Forum on Africa. Under the headline theme "Raising the Bar", this high-level gathering of governments, business, international organisations, civil society and experts focused on leveraging Africa’s strategic role in the global arena. It featured innovative partnerships to sustain growth, address human and infrastructure capacity constraints and assess opportunities for an improved African investment climate.

Dr. Touré contributed a chapter to the African Competitiveness Report 2007 which overviews the ICT landscape in Africa.  It considers the relationship between ICTs and competitiveness with reference to the latest research, examines the changing regulatory and policy landscape in Africa, provides the latest summary statistics on operators and markets and information on a number of planned infrastructure initiatives.  It concludes that the private sector is forging ahead with the introduction of new technologies to grow the mobile and broadband markets. The rise of African strategic investors such as Vodacom, Orascom and Celtel recording strong subscriber growth is especially impressive.

To read Dr. Touré's contributory chapter, please see here. The African Competitiveness Report 2007 is available from the website of the World Economic Forum. For more information on the event, please see here.