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May 25, 2002

VODACOM ROLLS OUT CONGO NETWORK IN RECORD TIME

Vodacom Congo (DRC) has built an impressive 88-base station GSM (Global
System for Mobile Communications) cellular network in Africa's fourth largest country in less than three months.

  The network has satellite links connecting cities more than 1 600 kilometers apart in the Democratic Republic of Congo, a country of 2,3-million square kilometers and a population of around 60-million.

The network was officially 'opened' at a banquet in the newly renovated People’s Palace in Kinshasa today. The banquet, attended by DRC President Joseph Kabila and members of his cabinet, as well as other political and business leaders, featured the best in Congolese and South African arts and culture. South African President Thabo Mbeki sent a video message congratulating Vodacom and the Congolese people on their achievement.

"Although the DRC has one of the lowest GDPs on the continent, Vodacom's investment of about USD 94 million has already brought coverage to the main centers of Kinshasa, Lubumbashi and Mbuji-Mayi which is on par with, if not better than, the quality of service enjoyed by GSM customers worldwide," says Andrew Mthembu, Deputy CEO of Vodacom Group and Chairman of Vodacom Congo.

"There are only 100 000 landline phones in the entire country to serve a population of some 60-million. The Vodacom network offers quality coverage which far exceeds anything previously available in the DRC. The Congolese people can look forward to enjoying the benefits and experience of Africa’s largest telecommunications company.”

Vodacom Congo (DRC) is the newest subsidiary of Vodacom, the biggest pan-African cellular network.  Its establishment follows the signing of a joint venture agreement between Congolese Wireless Networks (CWN) and Vodacom International Holdings (Pty) Ltd in the last quarter of 2001.

Commercial switch-on of Vodacom's DRC network took place on 1 May 2002, after some 12 000 former CWN customers exchanged their existing SIM (Subscriber Identity Module) cards for new Vodacom Congo SIM cards.

”The cut-over from the existing CWN network to the new Vodacom Congo network presented significant logistical challenges to our local DRC staff and South African secondees. The SIM swop operation, for example, saw about 28 000 Vodacom SIM cards being issued free to former CWN and new customers queuing at Kinshasha's Grand Hotel over a four day period.  Our people handled the situation with aplomb," Mthembu adds.                                                         

 The other SIM swop operation took place at Lubumbashi and accounted for the remainder of the SIM cards issued.

“Our success in rolling out the Congo network, in what is probably the shortest time in GSM history, is as a result of our partnership with Alcatel, who have supplied us with not only the equipment and infrastructure, but also with their expertise and resources,” said Mr. Mthembu, adding that the contract with Alcatel was worth USD 55 million.

Mthembu says Vodacom Congo already has more than 50 000 customers after just three weeks of commercial operations and expects to have more than

200 000 by March 2003.

To help achieve these targets, Vodacom Congo (DRC) will be offering the latest
value-added services and products similar to those available to Vodacom customers in South Africa.

Vodacom Congo has already appointed super dealers, sub-dealers and other retailers, giving the network over 1 400 local points of presence across the DRC, in addition to the almost 500 public phone sites already being installed by the network. It is anticipated that 4 000 public phone sites will be in commercial services by the end of March 2003.

"Technology is helping to spur the African Renaissance and Vodacom is determined that its construction of cellular networks across the continent will play a leading part in Africa's rebirth," Mthembu concludes.

 NOTES TO EDITORS:

To help achieve the vision of a pan-African GSM cellular network, Vodacom International Holdings (Pty) Ltd was established on 1 April 2001. Vodacom Tanzania Ltd, Vodacom Lesotho (Pty) Ltd, Vodacom Congo (DRC) s.p.r.l are all subsidiaries of Vodacom International (Pty) Ltd.

 In December 2001, Vodacom was also awarded a licence to operate a cellular network in Zambia.

Issued by: Ivan Booth
Media Relations Manager
Vodacom Group
Ph: 011 653 5343
Cell: 082 99 06 321

On behalf of: Joan Joffe
Group Executive – Corporate Affairs
Vodacom Group
Ph: 011 653 5885
Cell: 082 99 00 007

25 May 2002                                                                                       

 FACTS AND STATS ABOUT THE DEMOCRATIC REPUBLIC OF CONGO (DRC)

 

Location

Central Africa, northeast of Angola

Area

total:  2 345 410 sq km
land:  2 267 600 sq km
water:     77 810 sq km

Capital

Kinshasa

Independence

30 June 1960 (from Belgium)

Neighboring

Countries

Angola; Burundi; Central African Republic; Republic of the Congo; Rwanda; Sudan; Tanzania; Uganda; Zambia.

The country also has a 37km coastline

Geography

Straddles the equator. Vast central basin is a low-lying plateau; mountains in east; dense tropical rain forest in central river basin and eastern highlands.

Climate

Tropical; hot and humid in equatorial river basin; cooler and drier in southern highlands; cooler and wetter in eastern highlands; north of Equator - wet season April to October, dry season December to February; south of Equator - wet season November to March, dry season April to October

Highest point

Pic Marguerite on Mont Ngaliema (Mount Stanley) 5 110 m

Natural resources

Cobalt, copper, cadmium, petroleum, industrial and gem diamonds, gold, silver, zinc, manganese, tin, germanium, uranium, radium, bauxite, iron ore, coal, hydropower, timber.

Land use

arable land:  3%
permanent crops:  0%
permanent pastures:  7%
forests and woodland:  77%
other:  13% (1993 est.)

Irrigated land

100 sq km (1993 est.)

Agriculture - products

coffee, sugar, palm oil, rubber, tea, quinine, cassava (tapioca), palm oil, bananas, root crops, corn, fruits; wood products.

Industries

mining (diamonds, copper, zinc), mineral processing, consumer products (including textiles, footwear, cigarettes, processed foods and beverages), cement.

Currency

Congolese franc (CDF).

Natural hazards

periodic droughts in south; volcanic activity.

Population

Official: 60 000 000

Estimate (July 2001): 53 624 718


 

Population growth rate

3,1% (2001 est.)

Infant mortality rate

99,88 deaths/1 000 live births (2001 est.)

Life expectancy

total population:  48,94 years
male:                   46,96 years
female:                50,98 years (2001 est.)

Ethnic groups

Over 200 African ethnic groups of which the majority are Bantu; the four largest tribes - Mongo, Luba, Kongo (all Bantu), and the Mangbetu-Azande (Hamitic) make up about 45% of the population

Religions

Roman Catholic 50%, Protestant 20%, Kimbanguist 10%, Muslim 10%, other syncretic sects and indigenous beliefs 10%

Languages

French (official), Lingala (a lingua franca trade language), Kingwana (a dialect of Kiswahili or Swahili), Kikongo, Tshiluba

Literacy

total population:  77,3%
male:                   86,6%
female:                67,7% (1995 est.)

Radio broadcast stations

AM 3; FM 12; shortwave 1 (1999)

Radios

18,03 million (1997)

Television broadcast stations

20 (1999)

Televisions

6,478-million (1997)

Internet Service Providers (ISPs

2 (2000)

Internet users

1 500 (1999)

 

Source: CIA World Fact Book

 

25 May 2002                                                                                                         

 

ABOUT VODACOM

bulletVodacom is a world class cellular communications company providing a GSM (Global System for Mobile Communications) service to almost 7 million customers in South Africa, Tanzania, Lesotho and the Democratic Republic of Congo (DRC).

 

bulletVodacom alone handles more than 10% of Africa's telephone traffic volumes.

   

bulletVodacom Tanzania Ltd was issued a licence to operate a GSM cellular network by the Tanzania Communications Commission in December 1999, following the Commission’s decision to award a GSM license in July 1999. Today, Vodacom Tanzania has some 250 000 customers.

 

bulletVodacom Group (Pty) Ltd shareholding: Telkom SA - 50%, Vodafone Group - 31,5%, Venfin - 13,5% and Hosken Consolidated Investments - 5%.

 

bulletTotal revenue for the 2000/2001 financial year was R13,3-billion - an increase of 37% over the previous year.

 

bulletVodacom Group (Pty) Ltd is the holding company of:
- Vodacom (Pty) Ltd;
- Vodacom Service Provider Company (Pty) Ltd; and
- Vodacom International Holdings (Pty) Ltd

bulletVodacom International Holdings (Pty) Ltd - the youngest company in the Vodacom Group - was established on 1 April 2001. Vodacom Tanzania Ltd, Vodacom Lesotho (Pty) Ltd. and Vodacom Congo (DRC) s.p.r.l are subsidiaries of Vodacom International Holdings (Pty) Ltd.

 

bulletAbout 98% of Vodacom's 4 200 employees are computer literate, half have completed a university degree and over one in ten are currently furthering their studies.

 

bulletVodacom has won a number of prestigious international and national awards since its establishment in June 1994.  More recently, the Franchise Association of South Africa awarded Vodashop the “Brand Builder of the Year” title; Vodacom was a winner in the best unlisted company category of the 2001 Growth Awards; and CEO Alan Knott-Craig was inducted as one of eight Gold Members of the GSM Association's 2001 inaugural "Roll of Honour".

 

bulletVodacom is one of the few GSM operators in the world to have received the international ISO 14001 environmental management certification.

    

AND IN SOUTH AFRICA ….

 

·         Vodacom is South Africa's leading cellular network with a 61% share of the market.

 

·         Vodacom (Pty) Ltd is the operating company responsible for the construction and maintenance of Vodacom’s GSM (Global System for Mobile Communications) cellular network.

 

·         More than 90% of all new connections are prepaid customers.

 

·         A study completed by the University of Stellenbosch suggests that there may be as many as 21-million cellular phones in South Africa by the year 2006.

 

·         More than 5 000 Vodacom base stations are in place to provide coverage to 93% of the South African population and 60% of the geographical area of the country.

 

·         One of Vodacom's license conditions stipulated that it had to stimulate R1-billion of economic activity outside of its core business within ten years. It achieved this in three.

 

·         Vodacom Community Services is responsible for the concept of phone shops to franchised operators, and transportable (mobile telephones) to educational institutions and non-governmental organizations.

 

·         The phone shop concept has not only provided for much needed telephone and free emergency services, but has empowered black entrepreneurs (40% of whom are women) and provided new employment in disadvantaged communities.

 

·         By end-April 2001, Vodacom had 1 315 franchise operators providing telephony services in a total of 2 337 phone shop units and 868 other premises like Spaza shops, to under-serviced areas in all nine provinces in South Africa.

 

·         Over 90-million minutes of airtime are generated at Vodacom Community Services public phones every month and phone shop owners are receiving sizeable commissions from the network operator every month. The community services concept has been so successful that Vodacom has exported it to its other African networks.

 

·         Vodacom's world-first community phone recharge system, Sigi Autocharge, enables community phone shop franchisees to buy bulk airtime from Vodacom using banking facilities for which they previously never qualified.

 

 

25 May 2002                                                                                                        DRC004 - F

 

 

VODACOM BEYOND SOUTH AFRICA’S BORDERS

 

 

Vodacom’s expansion into the rest of Africa is spearheaded by Vodacom International Holdings (Pty) Ltd.

 

Vodacom International Milestones

 

June 1995

Vodacom is awarded a GSM license in Lesotho and sets up a joint venture company with Lesotho Telecommunications Corporation

September 1995

The test phase of Vodacom Lesotho’s newly built GSM network starts

May 1996

Vodacom Lesotho switches on

December 1999

Vodacom Tanzania Ltd receives a licence to operate a GSM cellular network by the Tanzania Communications Commission

August 2000

Commercial switch-on of Vodacom Tanzania Ltd.

December 2001

Vodacom Congo (DRC) s.p.r.l. – a joint venture with Congolese Wireless Networks (CWN) – is launched

December 2001

Vodacom is awarded a licence to operate a cellular network in Zambia

May 2002

Vodacom Congo’s network goes live

 

 

Vodacom Lesotho (Pty) Ltd

  After being awarded a GSM license in Lesotho in June 1995, Vodacom Lesotho’s network officially switched on in May 1996.

  Today, Vodacom Lesotho has some 70 000 customers.

  The Government of Lesotho began its privatization process in 1999 and invited bids for the Lesotho Telecommunications Corporation's shares in Vodacom Lesotho (Pty) Ltd.

  The Sekha-Metsi Consortium Ltd was identified as the successful bidder in July 2000

  In November 2000, the Privatization Unit of Lesotho and the Sekha-Metsi Consortium Ltd signed a Sale of Shares Agreement, resulting in the latter gaining a 12% shareholding in Vodacom Lesotho (Pty) Ltd.

                                                                                                                  

 Vodacom Tanzania Ltd

In July 1999, Vodacom won a ten-year license to operate Tanzania's second GSM cellular network.

  At that time, there were three cellular networks operating in Tanzania, but only one was a GSM network. Within three months following the completion of its state-of-the-art GSM infrastructure on 31 August 2000, Vodacom Tanzania became the largest digital cellular network in that country.

  A year later, the company had connected 120 000 customers and this has since grown to 250 000 and Vodacom’s investment in its network has risen to more than US$100-million.

  Tanzanian shareholders own 35% of Vodacom Tanzania and include Caspian Construction and Planetel Communications. The Vodacom Group (Pty) Ltd has a controlling interest of 65%.

  An estimated 52 000 people travel between South Africa and Tanzania each year and Vodacom Tanzania Ltd provides cellular coverage in the tourist areas of the Serengeti, Zanzibar, Pemba Islands and the International Airports of Dar Es Salaam, Kilimanjaro and Mwanza. Coverage also extends to greater Dar Es Salaam as well as Morogoro, Dodoma, Tanga, Arusha,  Moshi, Mbeya, Mwanza,  Shinyanga, Unguja and, more recently, to Iringa and Tabora.

  Vodacom Tanzania also covers the summit of Africa’s tallest mountain and the highest free-standing mountain in the world. At 5 895 meters, the summit of Mount Kilimanjaro is the highest point on the planet covered by GSM.

  Vodacom Tanzania has also reached agreement with Safaricom in Kenya to cover the highway from Arusha to Nairobi.

  Vodacom Tanzania is also helping to open up the globe for Tanzanians. The company has signed international roaming agreements with cellular networks in more than 30 countries worldwide, including South Africa, Mozambique, Hong Kong, Switzerland, the United Kingdom, Kenya and the United Arab Emirates.

 

Vodacom Congo (DRC)

  Vodacom Congo (DRC) s.p.r.l. - a joint venture between Congolese Wireless Networks (CWN) and Vodacom International Holdings (Pty) Ltd – was established in December 2001.  The agreement was signed by Alieu Conteh, Chairman and CEO of CWN, and Andrew Mthembu, Chairman of Vodacom Congo and Deputy CEO of the Vodacom Group.

  At that time, CWN operated a GSM network in the Democratic Republic of the Congo (DRC) with some 22 000 customers and had 18 years remaining of its 20 year licence.                                                                                                      

 Vodacom has a 51% stake in the joint venture while CWN has 49%.  Andrew Mthembu occupies the chairman's position, Alieu Conteh is deputy chairman and Alioune Dieng is CEO.

  Vodacom’s US$94-million investment takes CWN’s coverage of the DRC beyond Kinshasa and Lubumbashi and into the potentially very profitable mining areas including Mbuji Mayi where people are thirsting for reliable access to telecommunications. In addition, Vodacom Congo is the first cellular network operator to offer DRC customers international roaming.

  Vodacom International believes that the total potential market for cellular stands at 10% of the DRC's 60-million inhabitants and the company is confident that the joint venture will capture a significant market share.

  Other GSM cellular players in the DRC are Sait with 30 000 customers and Celtel with more than 160 000 customers. There is also an analogue network called Starcell with approximately 20 000 customers. Between them, the networks primarily cover Kinshasa, Lubumbashi, Mbuji Mayi and Matadi.

  25 May 2002                                                                                                          

 

BACKGROUND INFO: TELECOMMUNICATIONS IN AFRICA

  Sub-Saharan Africa (SSA) has generally been marginalized from the tele-communications revolution.  Excluding South Africa, in 1996 SSA had about

1,46-million working phone lines serving a population of about 575-million.

  Basic telephony provision is still a major need in many parts of the continent.  The situation is worst in rural areas where teledensity is five times lower than in urban areas.

  But it’s not all bad news: speaking at the opening press conference for ITU TELECOM AFRICA 2001 in November last year, the ITU Secretary-General, Yoshio Utsumi, pointed out that at the time of AFRICA TELECOM 98, there were barely 2-million mobile subscribers on the whole African continent.

  By the end of December 2001, that number was expected to be to 30-million - nearly one and a half times the number of fixed-line subscribers.

  And, he added, some old myths could finally be put to rest. No longer were there more telephones in Tokyo than in Africa. “In fact, there are twice as many fixed lines - and significantly more cellular subscribers in Africa - than in Tokyo”, he remarked.

  He went on to announce that the Sub-Saharan African teledensity was no longer trapped below 1 percent - the base level considered essential to economic growth and development.

  According to Utsumi, fixed-line teledensity grew from 0,9 to 1,2 percent in Sub-Saharan Africa in 2000.

  High teledensity levels are the best news for strong economic growth in any country. To illustrate, South Africa with a GDP per capita of US$3000 and a population of some 43-million people, outperforms the rest of Sub-Saharan Africa with a GDP per capita of US$490.

  Progress was also being made in the areas of regulation and competition, with some 36 new operators having launched mobile services in Africa between January 2000 and June 2001.  And well over half the countries in Africa now have an independent regulator.

  And with ITU now forecasting that there will be more than 100-million mobile cellular subscribers in Africa by the year 2005, the outlook for the continent has never been brighter. These trends are encouraging signs that Africa can bridge the digital divide quickly if it overcomes certain obstacles. But while things have improved, Africa cannot rest on its laurels.                                                                                                                                   

Indeed, while Africa’s relative share of the world’s fixed telephone and mobile networks has grown, it is still low in relation to the size of the continent’s population.

 

Yaoundé Declaration

  On 28 May 2001, African ministers responsible for telecommunications, assembled in Cameroon to prepare for the World Telecommunication Development Conference which took place in Istanbul from 18 to 27 March 2002.

  At this meeting they adopted a joint strategy – the Yaoundé Declaration - for bridging the digital divide that separates the North from the South and urban areas from rural areas.

  The strategy was seen as ‘different’ to several other initiatives adopted in recent years because it reflected an active solidarity among African countries as well as a new awareness of the continent’s needs.

  Through the Yaoundé Declaration, Africa appealed with one voice to decision-makers, firms, equipment manufacturers, funding agencies and information technology specialists to ensure that the right solution was found to close - once and for all - the huge gulf in the rate of penetration of information technologies in daily life that separates the people of the North from those of the Southern hemisphere, and Africa in particular.

  Furthermore, the Yaoundé Declaration reflected the new vision for the continent which was to be contained in the New Partnership for Africa’s Development (NEPAD).

  Nepad

  The NEPAD initiative was endorsed by the OAU summit of Heads of State and Governments in Lusaka, Zambia on July 11, 2001.

  NEPAD is a pledge by African leaders, based on a common vision and a firm and shared conviction, that they have a pressing duty to eradicate poverty and to place their countries, both individually and collectively, on a path of sustainable growth and development and, at the same time, to participate actively in the world economy and body politic.

  NEPAD consists of several initiatives, devoted to:

Peace, Security, Democracy and Political Governance: This section covers the conditions for sustainable development, namely peace and security and the democracy and political governance.

Economic and Corporate Governance: This section covers the conditions for sustainable development namely improved state capacity to promote economic growth and development.

Bridging the Infrastructure Gap: The infrastructure sectoral priority includes all Infrastructure sections (on sub-regional and continental level) for Information and Communication Technologies, Energy, Transport and Water and Sanitation.

                                                                                                                        

World Telecommunication Development Conference, Istanbul, March 2002

  The World Telecommunication Development Conference (WTDC-02) held in Istanbul -–.

International Telecommunication Union’s third World Telecommunication Development Conference (WTDC-02) - the world’s largest and highest-level global conference on development telecommunications – attracted some 1150 delegates from 152 countries. It was attended by 394 government delegates, representatives from 56 regulatory authorities, 45 operators, 23 scientific and industrial organizations and 22 regional and international organizations.

  Africa went to the WTDC-02 in Istanbul full of hope and with the conviction that the world would be more attentive to its problems. The Yaoundé Declaration, laid down guidelines for the work that was to be done at Istanbul on the digital divide.

  It was Africa’s intention to obtain from WTDC-02 new measures to encourage, in particular:

  ·         an increase in teledensity so that telecommunications can play its role as an economic catalyst;

·         implementation of pilot projects conducive to universal access in Africa;

·         more sustained establishment of equipment manufacturers with a view to developing appropriate technologies at lower cost as a means of increasing teledensity on the continent;

·         instant access for people in all corners of the continent to all forms of information, the key to a new society in which people will acquire broader freedom;

·         training, human resources development and capacity-building in information technology;

·         financial flows from funding agencies to support telecommunication infrastructure development programs for the benefit of inhabitants in the rural areas of our continent.

 

The Conference reviewed current major policy issues, determined actions to narrow the Digital Divide.  It closed with delegates adopting the Istanbul Declaration and Action Plan addressed to both governments and private sector for the years 2003 to 2006.

  Based on six programs, the Plan strives to reduce access costs to facilitate the greatest number of people possible to cross the Digital Divide.

  Throughout the conference, delegations stressed the need to:

·         develop larger scale partnerships, whether public/private, public-public and South-South, for implementing strategies for ICT development,

·         enhance co-operation particularly with regional organizations and private sector and to reinforce and support regional ICTs for-development initiatives, such as Africa’s New Partnership for Africa’s Development (NEPAD) in a bid to increase available resources for telecoms development.

  In his closing remarks, Mr Hamadoun Touré, Director of ITU’s Telecommunication Development Bureau, told delegates that the commitment made at Istanbul was the beginning of a new era.

  Quoting Lord Keynes, he said "the difficulty lies not in new ideas, but in escaping from the old ones. The time is ripe, we must escape and focus not on Digital Divide but on Digital Opportunities."

  He said that the digital age represented a new frontier of human accomplishment and that its locus resided in all countries.

  "If we all commit ourselves to the conclusions of this Conference, the low teledensities in developing countries can be tripled or even quadrupled before our next World Telecommunication Development Conference, Internet penetration will reach at least 25 percent of the population and every school will be wired or unwired, making information accessible to every child in the world."