Kenya insists on 700MHz for shared LTE network

Kenya’s Safaricom has threatened to withdraw from plans to build a shared LTE network for all three of the country’s mobile networks if the government insists that it operate in the 2.6GHz spectrum band.

Safaricom wants the network to be built using the 700MHz spectrum band as it requires far fewer base stations, especially in rural areas, and is hence cheaper to deploy, at least initially.

"We would want to know the frequency band that will be used; if it is not 700MHz then they (government) may consider Safaricom out of it," Nzioka Waita, Safaricom’s corporate affairs director told Business Daily Africa.

The government has been pushing for the networks to cooperate on a single shared network infrastructure as it says there will be cost saving for consumers if the operators do not build competing systems.

The plug-and-play MVNO model

Mobile virtual network operators (MVNOs) have experienced a slow start in the Middle East and Africa. However, Effortel, a mobile virtual network enabler (MVNE) that began life as an MVNO believes conditions may be right to see a rapid ramp-up of the offering in the region in the coming years Liudvikas Andriulis-DSC_2386 (428x640)

Andriulis warns that prospective MVNOs need to understand the market niche they intend to target, and that some of the most boring and practical matters are the ones that matter most

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Etisalat to turn off operations in India March 31

Etisalat has confirmed it will cease operations in India on March 31 as it commits to exiting the market. The company said last month it would close its Etisalat DB network following the Indian Supreme Court decision to cancel 122 2G spectrum licences.

In a statement on the website of Cheers Mobile, the brand used for Etisalat DB’s services in the country, it said that “customers are encouraged to ‘port out’ their Cheers number to a network of their choice as soon as possible.”

Etisalat holds around 45 per cent of Etisalat DB (formerly Swan Telecom), for which it paid US$900 million in 2008, with partner Majestic Infracon owning a similar-sized stake. The unit holds 15 of the licences that were cancelled by the regulators, having been issued through a much-criticised licensing process in 2008.

2G licences were cancelled after it was argued that the concessions issued in 2008 were done so without a proper competitive process and deemed to have been allocated unfairly. The Telecoms Regulatory Authority of India last week released a consultation paper on plans to conduct an auction for the 2G spectrum to allocate it on a fairer basis.

Ericsson to reduce North America workforce by 10 per cent

Ericsson is set to cut up to 10 per cent of its 15,000 workforce in North America, as it looks to ensure it has “the best people, with the right competencies, in the right places.”

The company has seen its workforce in the region swell in recent years, following its acquisition of CDMA and LTE assets from Nortel Networks – a transaction that saw more than 2,500 staff join Ericsson. It has also signed a number of high-profile deals, including the contract to manage Sprint’s mobile network – which saw 6,000 staff moving companies.

For the full year 2011, Ericsson reported sales of SEK48.8 billion (US$7.17 billion) for its North America business unit, down one per cent year-on-year. It was one of the company’s poorest performing regions in terms of year-on-year sales growth, after Southeast Asia and Oceania (seven per cent sales decline) and Western and Central Europe (four per cent drop).

North America represented around 22 per cent of Ericsson’s total sales during this period.

This decline was attributed to a drop-off in network infrastructure sales, while its services and multimedia businesses “developed favourably.” It was noted that sales slowed in the latter part of the year following an earlier period of network capacity building, and CDMA sales also declined due to the “rapid shift to LTE.”

Nokia to shut down mobile financial services operations

Nokia is "exploring options for a structured exit from the mobile financial services business" including its own brand Nokia Money service, the company said in a statement. As part of the withdrawal, Nokia is to close its flagship mobile money service in India as the handset manufacturer focuses on its core business. The company has announced plans to shelve Nokia Money only three months after launching it across India. Previously the service was launched regionally in various parts of the country. Nokia Money is a basic service that enables users to make payments for items such as utility bills, prepaid top-ups, insurance premiums and tickets. The company was even planning to expand Nokia Money to other emerging markets. Instead it has chosen to exit the mobile money business to concentrate on the revamp of its core handset business.

In addition to Nokia Money, the company also offers two more sophisticated mobile money services in India in partnership with local banks Yes Bank and Union Bank. According to The Hindu Business Line, the two services may continue as the banking partners might take over their running.