Andrew Stegmann

Loon and Vodacom Partner to Increase Rural Internet Access for Mozambicans

Loon and Vodacom partner to bring network access to previously uncovered populations via stratospheric internet balloons.

Alphabet’s Loon and Vodacom have signed a deal to use Loon’s balloon-powered internet solution to expand the Vodacom network in Mozambique. In terms of the agreement, Loon will help Vodacom provide service to un-served and under-served parts of the country with a network of floating cell phone towers that operate 20 kilometres above Earth. 

Using the Loon solution, Vodacom will expand mobile network access to Cabo Delgado and Niassa provinces, two regions that have proven hard to cover in the past due to the vast and logistically challenging geographical areas, together with low population density. The Loon solution will provide a 4G service that supports Data, Voice, SMS and USSD, which will also enable mobile financial services. The service will be available to any Vodacom subscriber with a standard 4G-VoLTE enabled handset and SIM card. Users will not need to do anything special to connect to the service; they will connect just as they would to a normal cell tower. In fact, it’s unlikely that a user will know that they are connected to the service provided by a high altitude balloon, except for the fact that they may have a signal in a location where it previously did not exist.

Vodacom’s partnership with Loon is a perfect example of how technological innovation can connect the most rural communities in Africa. We are pleased to be part of this initiative in Mozambique, which is helping to bridge the digital divide. This is even more pertinent in the face of the COVID-19 pandemic, where more Mozambicans will now have access to healthcare information through our Loon partnership. We look forward to forging similar partnerships and projects across the continent, as we ensure that no one is left behind when it comes to accessing the global digital economy.

Vodacom Group CEO Shameel Joosub

Loon and Vodacom have been working collaboratively with Mozambican communications and aviation regulators, including Autoridade Reguladora das Comunicações de Moçambique (ARECOM) and the Institute for Civil Aviation of Mozambique (IACM), to obtain the necessary approvals to enable service in Mozambique. 

We’re extremely pleased to be partnering with Vodacom, one of Africa’s largest mobile network operators, to begin serving parts of Mozambique in the coming months. Vodacom has a big footprint in Southern Africa, and provides service to tens of millions of people across multiple countries every single day. We view this as the first step to a larger partnership that will allow us to serve more of those users throughout Africa.

Loon’s CEO Alastair Westgarth

The companies are grateful to have received approvals to start importing and installing the required ground infrastructure for Loon’s balloons to operate in the stratosphere above the country, and for Loon to provide service over the Vodacom network. 

Vodacom Mozambique Chief Technology Officer Pedro Rabacal says: “Vodacom Mozambique is excited and proud to be able to bring the latest technological innovation to some of the most remote areas of the country. In times such as these, it is more important than ever that we find ways to ensure that we expand our coverage and services and that our customers have access to critical hygiene and lifesaving information. This partnership with Loon offers a key solution that will significantly accelerate Vodacom’s 4G coverage to areas of Mozambique that have been challenging to service. Our aim is to expand and push to the edge of coverage so as to provide the same quality voice, data, sms and M-Pesa services to all Mozambicans”.

“This agreement symbolises yet another advance in the field of mobile communications technologies in the country and will allow greater connectivity for Mozambicans in any geography. With this action, we reaffirm our position as a company focused on innovation and, above all, on providing an increasingly better experience to our customers. We have ambitions to continue to grow with more modern and comprehensive solutions by improving the quality of our services and responding positively to the needs of Mozambicans.”

In the coming months, Loon and Vodacom will work together to continue installing terrestrial infrastructure, which will serve as the physical connection point for Loon’s balloons to Vodacom’s internet and core network. Loon will also begin flying balloons above Mozambique to learn the stratospheric wind patterns on which the balloons must navigate to remain above the service area.  Network integration testing is ongoing in order to ensure that this innovative solution works as intended.  Loon and Vodacom expect to begin providing service to users in the coming months.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Sanlam Seeks Local Partnerships in Tanzania

This article was first published by The Africa Report.

The South African insurer sees lots of potential in the market, but it needs bancassurance allies and better messaging to reach more customers.

Partnerships between insurers and banks can help to increase the penetration rate of insurance in Tanzania in 2020, says Geofray Masige, chief financial officer of Sanlam General Insurance Tanzania. Bancassurance “has the potential to be transformative,” Masige tells The Africa Report. The country’s main banks now all have a physical presence across Tanzania, which Masige sees as “a very significant improvement. The levels of service will be quite high.”

Tanzania’s insurance penetration rate is among the lowest in Africa, at 0.5% in December, according to GCR Ratings in Johannesburg. GCR sees a “moderately healthy” outlook for growth, with gross premiums predicted to increase at a compound annual rate of 4% over the next five years.
For foreign insurers, Masige says, there is “a lot of potential in this market. The future is open for those who come here with products.”

The biggest challenge, according to him, is to use “local means to reach local people in a language and with a message that they can understand.” Clear examples of this working are so far lacking, he says. In terms of life insurance, “something has to change in the way we put across the message.”

The challenge is to convert informal community arrangements into modern insurance services, he says. “We need the right partners.” Increasing access to the internet in rural areas will help to spread the message: “The level of understanding is still very low.”

Banking partnerships

The fact that banks in Tanzania are now allowed to use their branch networks for insurance distribution is “a positive move”, Masige says. There has been “lots of appetite from top-tier banks,” he adds. “We should be able to make progress.”

Tanzanian government attempts at industrialisation are also increasing the size of the potential market. Sanlam, which is seeking operational expansion into areas such as Arusha, is open to partnership proposals from banks.

In Tanzania, Sanlam’s bancassurance partners include the National Bank of Commerce. Across Africa, the firm has teamed up with banks such as Fidelity, Zenith and Stanbic, as well as with telecoms giant MTN to extend its reach. Such a strategy aims at giving Sanlam protection against a slowdown in its in South African home market.

According to François Jurd de Girancourt, head of the McKinsey Africa financial institutions practice, African insurance is expected to grow by 7%-8% in local currency terms in the coming five years. South Africa is likely to be an exception to that rule, owing to “subdued local economic conditions, coupled with the maturity of the South African market,” says Yvonne Mujuru, head of insurance ratings at GCR.

Sanlam bought the remaining shares in Moroccan insurance company Saham for $1.1bn in late 2018. Faster-growing markets such as Kenya, Uganda and Tanzania could help mitigate challenging growth prospects in South Africa.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Safaricom Provides Communication Support To Kenyan Healthcare Workers And The Ministry Of Health

Following a request by Cabinet Secretary of Health, Mutahi Kagwe, for communication support for the pandemic response teams, Safaricom PLC has agreed to provide communication resources equivalent to 195 terabytes of data, 10 million voice call minutes and 33 million SMSs to critical Government healthcare workers for the next three months.

The initiative, which is part of Safaricom’s commitment to keep the country connected during this period, will see the company avail connectivity resources and airtime to the Ministry of Health, the COVID-19 Emergency Response Fund and frontline healthcare workers both at National and County level.

 These resources include:

  1. Monthly Bundle for Frontline Government Healthcare Workers: A monthly bundle consisting of 12GB data + 600 voice call minutes + 2,000 SMSs per month topped up to the individual lines of the COVID-19 frontline workers as identified by the Ministry of Health.
  2. 100 Mbps Internet Connectivity at Afya House for the National Command and Control Centre in this fight to safeguard our health.
  3. COVID-19 Emergency Response Fund Airtime Support: A one-off bundle consisting of 50GB data + 3,500 voice call minutes + 10,000 SMSs to 15 members to assist in the smooth running of the fund activities.

As we face this crisis, seamless worry-free communication between the frontline teams, the Command Centre and their loved ones is crucial. The contribution by Safaricom to support over 5,500 Government healthcare workers will go a long way in helping us execute a coordinated national response.

Hon. Mutahi Kagwe, Cabinet Secretary, Ministry of Health

The gallant frontline healthcare workers are our first line of defence against the pandemic and their dedication to serving the country has helped slow down infections within our communities. We not only want to appreciate the great work they are doing, but also facilitate their communication as they continue discharging their duties.

Peter Ndegwa, Safaricom PLC Chief Executive Officer

This commitment adds to our ongoing initiatives, currently valued at KES 6.5 billion, to support our customers and the country from the negative impact of the pandemic through interventions in financial services, transport, education and healthcare.

 We are cognizant of the challenge ahead of us and our purpose as an organisation is clear, to keep our customers connected and support Kenyans in whatever way we can.

Peter Ndegwa, Safaricom PLC Chief Executive Officer

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Vodacom Launches Africa’s First Live 5G Network Which Supports Both Mobile and Fixed Wireless Services

Vodacom has switched on Africa’s first live 5G mobile network in three cities – Johannesburg, Pretoria and Cape Town – with further rollouts planned to other parts of the country.

This network will support both mobile and fixed wireless services and is currently available on twenty live 5G sites, 18 of which are in Gauteng and 2 in Cape Town. With immediate effect, Vodacom customers with 5G enabled devices, and within a 5G coverage area, are now able to access one of the fastest and most sophisticated network connections in Africa.

Vodacom was recently assigned temporary spectrum by ICASA for the duration of the national state of disaster, including 1 x 50 MHz in the 3.5 GHz band, which has been used to fast-track our 5G launch. It also makes Vodacom the first operator to activate temporary spectrum in South Africa. Vodacom and Liquid Telecom also concluded managed network services and national roaming agreements for a national 5G network in December 2019.

As a more efficient technology than its predecessors (such as 3G and 4G), the deployment of 5G will help Vodacom manage the 40% increase in mobile network traffic and the 250% increase in fixed traffic experienced during the COVID-19 lockdown. 

Vodacom’s 5G launch in South Africa comes at an important time as it will help us improve our network efficiency during the COVID-19 national state of disaster. During this difficult and unprecedented period, we are proud to offer world class network technology to South Africa, and all of its associated benefits, as we provide an essential service to keep the country connected. This is largely due to the allocation of temporary spectrum by ICASA which has already mitigated the network congestion we have experienced since the start of the lockdown period.

Shameel Joosub, Vodacom Group CEO

Vodacom announced in 2018 that it had begun modernising its network to prepare for the deployment of standards based 5G technology in South Africa, subject to the allocation of spectrum.  5G was designed to meet the growing data and connectivity requirements of modern society, as the amount of data traffic is expected to continue growing at exponential rates. Vodacom expects to expand its initial 5G rollout as more smartphones, Wi-Fi and Fixed wireless access routers become available. The current 5G network equipment deployed also operates in the same frequency bands which are expected to be permanently assigned through an auction later in the year. Existing 4G tariffs for mobile and fixed will initially apply to Vodacom’s 5G service offering, with special 5G tariffs to be announced in due course.

Vodacom is currently offering the following 5G enabled devices, which customers can use to experience the 5G network within the coverage area of the 20 live sites (listed under Notes to Editors): 

  • Smartphones : LG V50 5G smartphone
  • Fixed Wireless Access Routers: Huawei 5G CPE PRO 

Customers can check if they are in a 5G coverage area on the Vodacom website (https://www.vodacom.co.za/vodacom/services/internet/5g ). They can then either sign up for a new 5G device deal or upgrade online. The new 5G device will be delivered to the customer’s home during the national lockdown period.

5G improves significantly on 4G in three key areas:

1. Faster speeds:

In comparison to 4G, peak speeds on 5G will increase significantly. 5G will enable fibre-like speeds using the mobile network. This will be extremely useful to download media content like 4K and even 8K movies in seconds. The higher speeds from 5G will also enable entirely new applications in future like augmented and Virtual Reality (VR) which will be helpful to realise new applications such as e-education and also new forms of entertainment like watching a sports game or music concert live in VR from home.

2. Lower latency & better reliability:

Latency is the time it takes for devices to send and receive signals between each other. Latency is very important for applications which require near real time responses, for example, between the user device and a cloud server used in gaming. In comparison to 4G where latencies are typically between 20-30 milliseconds, 5G can support latencies as low as 1 millisecond.

The lower latency from 5G will also enable entirely new applications in future such as remote robotic surgery, where decisions must be made by the remote surgeon and sent back to the surgery robot in near real time.

3. More capacity:

5G networks can also provide much more capacity for data. 5G uses spectrum in a much more efficient manner than 4G technology and is able to fit more data into the same amount of spectrum.

5G devices can connect many more “things” to the network at the same time, enabling the realisation of new applications such as smart homes and smart cities. 5G is also more efficient than 4G in terms of the energy required per bit of data which is transmitted or received.

Vodacom was the first network operator to launch a 5G commercial service in Africa in Lesotho in 2018 and was also first to bring 2G, 3G and 4G services to South Africa. The widespread rollout of 5G will support the Government’s 4IR objectives in future, and will facilitate the creation of an entirely new technologically enabled world. 5G supports entirely new applications which will enable a much smarter and more convenient way of both living, working and playing and which current 3G and 4G networks might not be able to support.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].