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The East African : Mar 9th 2015
60 MARCH 7-13,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,373.22 -2.15% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,660.78 -1.50% MARCH 7-13,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,373.22 -2.15% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,660.78 -1.50% USE USE All Share Index Uganda 2,010.00 2.71% RSE All Share Index Rwanda 137.33 0.00% JSE All Share Index South Africa 53,208.07 -0.04% NGSE All Share Index 31,049.37 Nigeria 3.56% — the country’s telecommunications sector regulator — and the country’s largest telecom operator, MTN, were by the end of the week retreating from a potentially damaging escalation of a dispute. The altercation saw the regulator slap a Ush5 billion ($1.7 million) fine on the operator. The EastAfrican has been Uganda ≥egulato≥ now slaps MTN with $1.7m fine T he Uganda Communications Commission (UCC) to minimise disruption of service. By the time the UCC passed the directive, MTN had $2 million worth of airtime cards in stock bearing denominations as low as Ush500 ($0.16) that it needed to exhaust. In addition, the Sim cards of the majority of its customers will need to be reprogrammed to accept the new codes. “MTN felt that as the on- told that, contrary to earlier plans, the operator will not go to court and will instead seek further dialogue over the penalty, which represents just under 0.5 per cent of its gross revenues for 2014. The penalty was the reg- ulator’s response to MTN’s delay in migrating to universal country codes, that were to have come into force last November. The EastAfrican has learnt that, earlier, the operator was considering taking the regulator to court for imposing the fine without exhausting the procedures laid out in the Telecommunications Act. Ac- Uganda Communications Commission has penalised MTN for a delay in code migration. Picture: File cording to the law, the parties are supposed to engage in dialogue, failing which the dispute can be taken to the high court. A financial penalty is the last resort. MTN, which migrated to the codes last week, says it was under the impression that the matter was still under discussion. UCC officials were una- vailable for comment, but sources said MTN had first argued that, given its position in the market, it would be easier and less disrup- MTN, which has 10.4 million subscribers, said it needed more time to minimise disruption of service tive for its competitors to migrate to its 155/156 code. The regulator adopted the 130/131 code used by Airtel, which is the second biggest operator in Uganda’s telecom market. MTN, which has 10.4 million subscribers, said it needed more time to feed the cost of rebranding the codes into its financials and ly operator that has maintained the same brand identity for the 15 years it has been in the Ugandan market, migrating to a competitor’s code had a potential disadvantage,” one industry analyst said. The regulator’s fine came just before MTN announced that it will give Ush15.9 billion ($5.3 million) to the Rural Communications Development Fund, a mandatory two per cent levy on its gross revenues for 2014. Announcing the opera- tion’s financial results this week, MTN Uganda chief executive officer Brian Gouldie said the company had net earnings of Ush229 billion ($76.7 million). Tablets, sma≥tphones edge out pe≥sonal compute≥s THE GAP left by the withdrawal of cheap mini notebooks from the East African market, coupled with a shift to tablets and smartphone usage, has reduced the number of personal computers coming into the region. Shipments fell 10.8 per cent to 657,472 units in 2014, down from 736,869 units recorded in 2013, according to global market intelligence firm International Data Corporation. “Compounding the departure of these popular devices was the fact that no obvious replacement product was immediately available. There is a clear need for a product that occupies the entry-level segment of the market, and we are yet to see whether Chrome books or any other low-priced laptops will successfully take on the position vacated by the mini notebook form factor,” said James Mutua, a research analyst at IDC East Africa in a statement. Samsung closed its laptop busi- ness in the region in the last quarter of 2013, where it was the market leader with 27 per cent of the share. In 2014, Sony sold its PC business to a private equity firm in order to concentrate on making smartphones and tablets — two sectors that are seeing robust growth. According to an IDC 2013 report, Toshiba, Samsung, HP, Lenovo and Dell held the top spots in the East African market. End users in the region are opting for enhanced mobility, shifting to sleeker, lighter and smaller devices with longer battery lives. “As a result, the shift from desk- tops to portable PCs and from portable PCs to tablets and smartphones continues. Furthermore, even within the portable PC segment, there is a notable shift from traditional notebooks to convertible notebooks and ultra slim notebooks,” said Mr Mutua. The shipments for commercial and consumer segments registered a decline of 9.3 per cent and 12.5 per cent respectively from 2013. Government initiatives are ex- pected to boost shipments in 2015, the report says. Published at Nation Centre, Kimathi Street, and Printed at Mombasa Road, Nairobi by Nation Media Group, Box 49010, GPO Nairobi, 00100. Registered at the GPO as a newspaper. Nairobi Office, Tel: 3288000, 211448, 337710, Fax 214531, 213936. Dar es Salaam Office. Tel: 2119657/8. Kampala Office, Tel: 232771, 232772. Fax 232781 Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures, videos and more stories T≥ansfast expands se≥vices in Kenya TRANSFAST, the global money transfer company, has announced partnerships with three Kenyan banks — African Banking Corporation, Chase Bank Kenya and Dubai Bank Kenya Ltd — for instant deposits and the launch of M-Pesa services. The instant deposits and M-Pesa services will enable customers worldwide, online and in person, to make instant transfers to Kenya at any time including bank holidays. In addition to the instant services, Transfast offers sameday deposits to all banks in Kenya. According to Kenya’s Central Bank, in 2014, Kenyans living abroad sent home a record $1.43 billion, a 10.68 per cent increase from 2013. Transfast customers are now able to send money to friends and family in Kenya, and directly to their mobile phones. The company covers more than 100 countries in the Americas, Asia, Europe, and Africa.
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