Cell C takeover (almost) complete after ICASA approval

Cell C

South African communications regulator ICASA has approved the transfer of operator Cell C’s spectrum and network licences to Blue Label Telecoms, paving the way, except for one more approval, for the technology company to take control of Cell C.

ICASA and Cell C confirmed late last week that the transfers had been okayed. However, news service TechCentral explains that Cell C will continue to hold its licences post-transaction and will continue to provide the licensed services, despite the transfer of control to Blue Label subsidiary The Prepaid Company (TPC).

As TechCentral explains, the name of the spectrum licence holder (Cell C) will not change, only the names of the shareholders. This also means that from an accounting perspective, the spectrum assets owned by Cell C will continue to sit on Cell C’s books and not those of TPC or Blue Label.

Currently, Blue Label has a non-controlling 49.5% stake in Cell C but is moving to take control of the company, which it rescued through a series of recapitalisations aimed at bolstering Cell C’s balance sheet.

The application to ICASA by Cell C was triggered by TPC’s move to increase its stake in the mobile operator from 49.53% go 53.57%, giving TPC control of Cell C. We reported this move back in December 2023.

It appears that Cell C’s position has become less serious since Jorge Mendes took over as CEO. This is good news for Blue Label, whose share price has apparently underperformed in the past because of its investment in the operator.

The takeover can’t be finalised yet, however. Despite a recommendation from South Africa’s Competition Commission to its Competition Tribunal last April that the transaction should be allowed to proceed subject to certain conditions, the tribunal reportedly still hasn’t given its consent.

Source: extensia.tech

GSMA Report Highlights Digitalisation’s Role in Benin’s Economic Growth

GSMA

GSMA’s report outlines how digitalisation can drive Benin’s economic growth, create jobs, boost tax revenue, and enhance financial inclusion.

The GSMA has launched a groundbreaking report, Driving Digital Transformation of the Economy in Benin: Opportunities, Policy Reforms, and the Role of Mobile, highlighting the pivotal role of digitalisation in unlocking sustainable economic growth, creating jobs, and driving societal progress in Benin. The report’s recommendations align with Benin’s National Development Plan and Government Action Program, providing a clear strategy for fostering economic diversification, increasing productivity, and driving human capital development.

The study outlines how the adoption of digital technologies across public and private sectors can generate XOF 1.2 trillion in GDP by 2028, while creating over 300,000 jobs and boosting tax revenues by XOF 150 billion. Digitalisation is identified as a cornerstone for achieving shared prosperity in Benin, enhancing productivity in agriculture, manufacturing, transport, and trade, while improving access to global value chains (GVCs) and strengthening public service delivery. Emerging technologies such as mobile money, artificial intelligence (AI), and cloud computing are also noted as critical enablers of digital and financial inclusion, supporting human development across the country.

Key Findings from the Report

  • Economic Impact: The mobile sector contributed XOF 960 billion to GDP in 2023, and accelerated digitalisation could increase total GDP by 8% by 2028.
  • Sector Benefits:
    Agriculture: XOF 197 billion (4.3% of sector GDP) added by 2028, creating 82,000 jobs.
    Manufacturing: XOF 134 billion (5.1% of sector GDP) added by 2028, creating 77,000 jobs.
    Transport: XOF 74 billion (6.3% of sector GDP) added by 2028, creating 25,000 jobs.
    Trade: XOF 39 billion (2.0% of sector GDP) added by 2028, creating 18,000 jobs.
  • Digital Inclusion: Policy reforms could drive an increase of 1.2 million mobile internet users by 2028, significantly reducing the usage gap and ensuring broader access to digital services.

This report underscores the transformative potential of Benin’s digital economy to deliver inclusive growth and shared prosperity. By prioritising policy reforms and fostering collaboration across sectors, Benin can unlock new opportunities for businesses and individuals, improve public service delivery, and build a thriving digital ecosystem that benefits everyone. With targeted action, the country is well-placed to drive innovation, create jobs, and secure a more connected and prosperous future.

– Angela Wamola, Head of Sub-Saharan Africa, GSMA

Policy Recommendations for Accelerating Growth

The report calls for targeted reforms to build a sustainable and inclusive digital ecosystem, including:

  1. Reforming coverage and quality of service indicators to take account of technological developments in terminals, which, by enabling investment to be redirected towards more relevant services, will better serve the interests of users.
  2. Reducing sector-specific taxes and setting appropriate spectrum fees to unlock investment and improve affordability.
  3. Removing the mobile money levy to enhance financial inclusion and expand access to low-cost financial services.
  4. Modernising telecom licensing frameworks to foster competition, innovation, and network quality improvements.
  5. Implementing demand-side policies such as handset subsidies, digital skills training, SME support, and the digitalisation of government services to increase adoption of new technologies.

Delivering Shared Prosperity Through Digitalisation

The study highlights the direct and indirect benefits of digital technologies, including enhanced access to information, improved educational outcomes, and greater transparency and efficiency in public service delivery.

Source: www.telcotitans.com

AI to dominate a bigger MWC25

LIVE FROM MWC25 BARCELONA PREVIEW PRESS CONFERENCE: MWC event organiser the GSMA expects attendance at this year’s show to surpass 101,000 in 2024, with AI set to naturally be a dominant theme.

“We are expecting things to be even bigger and better,” said GSMA director general Mats Granryd (pictured, middle) at a media event in Barcelona ahead of the show which runs 3-6 March.

The economic impact of the show on the city this year is also expected to increase too, with early forecasts of €540 million-€550 million, up from €500 million it achieved last year. GSMA Ltd CEO John Hoffman (pictured, left) said the total economic impact since the event’s first Barcelona edition in 2006 could hit €7 billion.

Everything AI
AI is expected to feature heavily at the show, from keynoters such as Arthur Mensch, CEO and Co-Founder of Mistral AI, and AI ‘godfather’ Ray Kurzweil, to the launch of a test pilot program of AI live translations, provided by Mixhalo.

“This will allow attendees to experience real-time translations in French, Spanish, Korean, and Chinese across 11 of our stages,” stated GSMA CMO Lara Dewar (pictured, right).

“The AI conversation has evolved very quickly in the last twelve months and we have some of the biggest thinkers and disruptors speaking in this space,” added Dewar. 

A total of 1,200 speakers will present across 19 stages, with 40 per cent of those female and 30 per cent from outside the telecoms industry.

Back after a pilot launch last year is the 2025 edition of Talent Arena, to be held at Fira Montjuic in partnership with Mobile World Capital (a public-private foundation set up by the GSMA in 2012).

“Talent Arena is an awesome space that brings together digital professionals, developers, global tech companies, and education institutions to create a hub for learning, networking and career development,” stated Hoffman.

“They also have an amazing line-up of speakers including Apple’s co-founder Steve Wozniak. We’re also really excited that the GSMA Open Gateway hackathon is back at Talent Arena, with developers’ testing their projects under realistic conditions on live networks with access to the latest network APIs. And we’ll also be hosting the Open Gateway DevCon at Talent Arena.”

Talent Arena’s new home of Fira Montjuic is where MWC first established itself in the city almost twenty years ago, and Hoffman explained that the most recent MWC venue at Fira Gran Via is now at capacity.

“That’s why we’re looking forward to the grand opening of Hall 0 in 2027,” he teased.

Old favourites
Elsewhere, familiar elements of the show are back. The GLOMOs will celebrate its 30th edition, while 4YFN (4 Years From Now) will once again take over Halls 8 and 8.1.

And the Ministerial Programme, the largest gathering of governments and leaders discussing the digital economy, will return after hosting over 180 delegations from 140 countries in 2024.

Plus, FC Barcelona’s Sports Tomorrow Congress, run by the Barca Innovation Hub, will return to Hall 6 and, in a first for this year, it will take exhibition space at 4YFN.

Open Gateway
The GSMA’s Open Gateway initiative will have a big push at the show, with a dedicated zone with six demo pods hosting 17 organisations.

“Nokia and Elmo cars will be there, showing us how you can drive a car remotely in Finland using open API technology,” noted GSMA boss Granryd.

Granryd added that since launch of Open Gateway two years ago – aimed at creating a unified API economy – almost 300 mobile networks are represented and three-quarters of global mobile connections have signed up to the initiative.

Mobile World Capital is also bringing 180 developers from Paris on a charter flight with Vueling, and 70 developers on a dedicated high-speed train from Madrid with Iryo. While they are on board the developers will compete in a hackathon.

Source: Mobile World Live

US takes aim at HPE, Juniper Networks deal

The US Department of Justice (DoJ) sued to block Hewlett Packard Enterprise’s (HPE) $14 billion deal to buy Juniper Networks, arguing the tie-up would eliminate competition in the market for enterprise wireless equipment.

The agency stated HPE and Juniper Networks are the second- and third- largest vendors, respectively, in the enterprise-grade WLAN market. Merging the two will allow HPE and rival Cisco to control more than 70 per cent of the wireless networking sector.

“HPE and Juniper are successful companies. But rather than continue to compete as rivals in the WLAN marketplace, they seek to consolidate — increasing concentration in an already concentrated market,” stated acting assistant attorney general Omeed A. Assefi of the DoJ’s  antitrust division.

It also stated increased competition from Juniper Networks “forced HPE to discount its offerings and invest in its own innovation”.

The complaint noted HPE recognised and “tracked Juniper’s growing significance and engaged in a campaign, including mandatory training for its engineers and salespeople, to ‘beat’ Juniper when competing for contracts”.

Rather than compete directly against Juniper Networks, the DoJ explained HPE chose to buy it in 2024.

HPE and Juniper Networks stated they “will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice”.

The European Union and the UK’s Competition and Markets Authority approved the deal.  

Source: Mobile World Live

GSMA, UK launch fund for AI boost in emerging markets

GSMA

The GSMA and the UK Foreign, Commonwealth & Development Office (FCDO) have launched a fund to equip enterprises in developing markets with the means to harness emerging technologies, including AI.

In a statement, the industry body highlighted the global challenge of ensuring low-and middle-income countries (LMICs) are not left behind as more developed markets accelerate their adoption of AI and mobile technology.

The GSMA stated that the fund is aimed at LMICs across Africa, South Asia, Southeast Asia, and the Pacific regions.

Enterprises can now apply for grants ranging from £100,000 to £250,000, provided over a 15 to 18-month period, to support the testing and scaling of innovative solutions.

Other objectives of the fund include fostering stronger collaboration between enterprises and mobile network operators, as well as enhancing capacity building through access to bootcamps.

GSMA Head of Mobile for Development Max Cuvellier Giacomelli said: “AI and emerging technologies have immense potential to tackle global challenges, but much of their development has focused on advanced markets, leaving a gap in solutions designed for and by communities in LMICs. The GSMA Innovation Fund for Impactful AI seeks to change this by empowering enterprises in these regions to harness AI for transformative, inclusive, and sustainable development where it is needed most.”

Source: developingtelecoms.com

Safaricom seeks approval to build undersea cable

Safaricom

Safaricom, Kenya’s leading telco, is seeking regulatory approval from the Communications Authority of Kenya (CA) to build its own undersea cable, according to a local daily, Business Daily.

The CA, Kenya’s independent ICT regulatory agency, confirmed Safaricom has sought for undersea cable landing rights.

These rights would allow the telco to operate and maintain multiple submarine cables that land in Kenya.

If allowed, this strategic move might greatly increase Safaricom’s ability to provide high-speed internet, improve connectivity, and minimise its dependency on third-party cable providers.

The telco, which is headed by CEO Peter Ndengwa, will also be the first in the country to invest in its own undersea cable.

Safaricom currently relies on SEACOM, East African Submarine System (Eassy), TEAMS, and Telkom Kenya for their international bandwidth requirements.

In Kenya, subsea cable landing rights are generally managed by the CA.

According to reports, Safaricom has since formed a consortium to build the multibillion-dollar underwater internet line.

Safaricom was forced to purchase additional internet capacity from other undersea cable providers last year due to massive undersea cable cuts that disrupted some of its services.

The deep-sea fibre cut occurred at the Mtunzini teleport station, disrupting numerous underwater cables that serve Kenya, notably SEACOM and the Eassy.

Safaricom application is also seen as a response to increased competition from other internet providers, particularly possible satellite internet services such as Starlink.

This is despite the fact that the telco already leads the market with over 550,000 fixed broadband connections.

Starlink began operations in Kenya in July 2023, and it has continued to challenge the dominance of established mobile operators like as Safaricom.

Since its introduction into Kenya, the number of satellite internet subscriptions has increased significantly.

If successful, Safaricom’s effort into owning and managing its own undersea cable might be a watershed moment for the company, further cementing Kenya’s status as a regional hub for internet connectivity.

Source: extensia.tech

China targets Google in antitrust probe

ChatGPT

China retaliated in a widening trade war with the US, with a market regulator opening a probe into alleged antitrust violations by Google, the same day tariffs on mainland imports went into effect, South China Morning Post reported.

The State Administration for Market Regulation (SAMR) stated in a one-line entry on its website an investigation was prompted by suspicion of the search giant violating China’s anti-monopoly law, the newspaper wrote.

The US government, under new President Donald Trump, unveiled 10 per cent tariffs on Chinese products over the weekend. China has announced duties on coal, crude oil, LNG, agricultural equipment and some automobiles from the US, effective 10 February.

Google stopped offering its search in China in 2010.

In mid-December, days following the US widening export controls to limit Chinese companies’ access to advanced chips, the SAMR opened a probe into Nvidia for allegedly violating anti-monopoly laws, escalating rising trade tension between the two nations.

Source: Mobile World Live

Applied Labs scores $4.2M to push AI agent goal

The head of AI agent provider Applied Labs argued the challenge of deploying the technology is at an inflection point, as companies begin to shift attention from choosing a large language model (LLM) towards how best to employ them in day-to-day operations.

Applied Labs CEO Michael Woo (pictured, right) believes business leaders are now firmly hooked on the concept of employing AI, meaning attention is shifting to strategies which will reap the greatest benefits.

“The bottleneck isn’t the model anymore; LLM quality, speed and cost have reached an inflection point where almost every business can save time, cost and improve the quality of their support and apps,” Woo stated.

He believes implementation challenges now lie in the “data, tools and platform” which enable teams to quickly deploy AI agents on “business-critical workflows”.

Backing
Woo made the comments as Applied Labs announced its total funding hit $5.2 million a year after being founded, following a fresh round led by VC company Abstract which netted $4.2 million.

Abstract was joined in the latest round by Point72 Ventures, Outlander and Tetra, with so-called angel investors including Vercel CEO Guillermo Rauch, Modal CTO Akshat Bubna and former Twitter executive Ali Rowghani.

Woo co-founded Applied Labs in January 2024 along with Soham Waychal (pictured, left): both previously worked for model creator Scale AI.

The pair are pitching Applied Labs as a company focused on providing reliable and easy to use AI agents covering communications, orchestration of queries and workflows, and tools to evaluate the outcomes.

Woo cautioned poor planning of AI agents leads to poor execution and could also impact real care staff, who he argues must remain a key element in any automation strategy.

Applied Labs intends to use some of its fresh funding to grow its staff, with a focus on engineers.

Source: Mobile World Live

Samsung chief Jay Y. Lee found not guilty in merger case

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SEOUL, Feb 3 (Reuters) – Samsung Electronics Chairman Jay Y. Lee was found not guilty of accounting fraud and stock manipulation by a Seoul appeals court on Monday, in a ruling that could remove long-running legal risks that he has faced from criminal cases.

The Seoul High Court upheld the lower court’s ruling dismissing all the charges from a case involving a 2015 merger that prosecutors said was designed to cement Lee’s control of the tech giant.

The legal battles have been a distraction for Lee, who faced growing questions about his ability to lead Samsung Electronics – the world’s top memory chip and smartphone maker – as it grapples with growing competition and lacklustre stock prices.

“It took a long time. We hope with the latest ruling, the defendants would be able to focus on their work,” Lee’s lawyer Kim You-jin said after the ruling.

For nearly a decade, Lee has faced legal challenges, including those from the merger that paved the way for his succession after his father, Lee Kun-hee, had a heart attack in 2014 that left him in a coma.

A lower court last year cleared Lee of all charges related to the $8 billion merger in 2015 between two Samsung affiliates, Samsung C&T (028260.KS), opens new tab and Cheil Industries.

Prosecutors later appealed to the Seoul High Court, seeking a five-year jail term, citing a separate ruling in August that said Samsung BioLogics, an affiliate of Cheil Industries, breached accounting standards by overstating its assets to justify the merger.

The judge said even as the BioLogics accounting practices involved “inappropriate acts” such as the manipulation of documents, the outcomes reflected financial realities and were based on rational reasons and processes.

The court dismissed prosecutors’ claims that the merger caused financial losses to Samsung C&T shareholders.

Lee did not answer questions from reporters when he was leaving court on Monday.

He has denied wrongdoing, saying in court last November, “I never intended to deceive or damage investors for personal gain”.

It was not immediately clear whether the prosecution would appeal the decision to the Supreme Court.

Samsung shares closed down 2.7% following the ruling.

LENIENCY

A civic group condemned the court’s decision because it argued it showed leniency to Lee, who was charged with tightening his grip over his company at the expense of the country’s pension fund and other investors.

The People’s Solidarity for Participatory Democracy said the court disregarded other court rulings related to the merger case.

Lee served a combined 18 months in jail on bribery charges before he was released in 2021 as part of a scandal that led to massive protests and ultimately brought down then-President Park Geun-hye in 2017. Park also served a nearly five-year jail term.

In 2022, South Korea’s now impeached President Yoon Suk Yeol pardoned Lee, with the justice ministry saying the business leader was needed to help overcome a “national economic crisis”.

The controversial merger sparked a backlash from investors such as U.S. hedge fund Elliott and raised questions about the corporate governance of Korea’s family-owned conglomerates, which are often criticised for putting the interests of family members ahead of other shareholders.

In 2023, the South Korean government was ordered to pay around $108.5 million to Elliott, which sued it over the role played by the country’s pension fund in approving the merger.

Last year, the National Pension Service, formerly the biggest shareholder in Samsung C&T, filed a lawsuit against Lee, seeking damages from the merger that allegedly undervalued the key unit.

“This is positive news for Samsung, which has been having business difficulties,” said Park Ju-gun, head of corporate analysis firm Leaders Index.

“But the ruling will be a burden on Lee, who has to prove his management capability now that he is free from legal risks,” he said.

The conglomerate’s crown jewel Samsung Electronics warned on Friday of sluggish sales of its artificial intelligence chips in the current quarter.

Samsung Electronics has lost out to smaller competitor SK Hynix in supplying high-bandwidth memory (HBM) chips to Nvidia’s AI graphics processing units and is seen missing much of the profits generated by the current AI boom.

Reporting by Joyce Lee and Hyunjoo Jin; Editing by Sam Holmes, Ed Davies, Gerry Doyle and Kate Mayberry

ITC prepares Sierra Leone youths for the digital economy

The International Trade Centre (ITC) has launched the ‘Sierra Leone: Empowering Youth via Digital Technologies’ (READY Salone) project, which will help young entrepreneurs in the West Africa country enhance their digital skills.

The READY Salone project, which is funded by the Korea International Cooperation Agency, will be executed over four years, intends to help young entrepreneurs, tech hubs, and policymakers capitalise on opportunities in the digital economy.

The initiative places emphasises on young women and people with disabilities.

“Trade is digital. It’s how business happens now, and young people are leading the way. Through READY Salone, we’re partnering with government and business to create a digital-friendly environment and build the online skills of youth, women and persons with disabilities. We look forward to engaging with stakeholders across the country,” said ITC executive director Pamela Coke-Hamilton.

The READY Salone project is built on four interventions: improving young digital literacy, increasing entrepreneurial competitiveness through upskilling, strengthening tech-focused business support services, and developing inclusive national digital strategy.

Through the project, 3,000 young people and 250 micro, small, and medium-sized businesses will get access to digital skills and opportunities.

Furthermore, an awareness campaign will reach 10,000 young people, emphasising the advantages of digital education, careers, and entrepreneurship. Sierra Leonean role models will be recruited to encourage girls and young women to pursue careers in the digital economy.

The Ministry of Youth Affairs and the Ministry of Communications, Technology, and Innovation are the primary government partners in READY Salone.

“Sierra Leonean youth are the backbone of our economy. We are excited to see how they will apply the skills and tools acquired from the project to build their careers and contribute to their communities and country,” said Mohamed Orman Bangura, minister of youth affairs.

Haja Salimatu Bah, minister of communication, technology and innovation, added: “The READY Salone project’s focus on creating digital jobs and successful digital freelancers aligns perfectly and contributes directly to our national goals and initiatives. We look forward to collaborating with ITC to amplify the impact of our work.”

Source: extensia.tech