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Somalia: Africa's newest market is tiny and awaits a full peace. For the optimist, Somalia is nearer to being busy reborn than busy dying. In
these circumstances it's hardly surprising it has been one of Africa's last countries to get connected. Abdi Mohammud describes the currently tiny size of the market, the fierce competition for it and the prospects for future growth.

COMING SOON: THE INTERNET MEETS SUITCASE RADIO AND THE STATE OF THE WEB IN
COTE D'IVOIRE
____________________________________________________________________________

NEWS UPDATE 57: SOMALIA - AFRICA'S NEWEST MARKET IS TINY AND AWAITS A FULL
PEACE

For the optimist, Somalia is nearer to being busy reborn than busy dying. In
these circumstances it's hardly surprising it has been one of Africa's last
countries to get connected. Abdi Mohammud describes the currently tiny size
of the market, the fierce competition for it and the prospects for future
growth.

If our correspondent is "off the mark" or you have factual amendments, mail
them to us and we will include them in subsequent News Updates. If you'd
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URGENT ANNOUNCEMENT: COUNTRY RESPRESENTATIVES WANTED
Computer Professionals for Social Responsibility (CPSR) is an organization
that addresses the benefits and risks to society resulting from the use of
computers. CPSR have been in existence for the past 19 years and will be
celebrating the 20th Anniversary in 2001. CPSR work to influence decisions
regarding the development and use of computers because those decisions have
far-reaching consequences and reflect our basic values and priorities.
Country representatives wanted through Africa to help African countries
develop Social Responsiblity in Computing. For information about how to
become a representative and to become a member of CPSR, please send mail to
[email protected] and visit our Web page at http://www.cpsr.org

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SOMALIA - AFRICA'S NEWEST MARKET IS TINY AND AWAITS A FULL PEACE
____________________________________________________________________________

The new millennium has brought Somalis two things: One, an interim
government, known as the Transitional National Government, which was formed
in exile in the neighbouring Djibouti. The country has been without a
central government since the overthrow of President Barre in 1991. Secondly,
the introduction of the internet. Apart from linking Somalia to the rest of
the world, it has made Somalia notable as being among the last of the
countries in Africa to go online.

It is against this background that the three major telecommunications
companies headquartered in Mogadishu ­ Barakaat, Telcom Somalia and
Nationlink Inc. ­ chose to form a joint Internet company ­ Somali Internet
Company (SICO). The company is currently operating in Mogadishu and the
outlying regions of Somalia as a fully-fledged ISP.

Prior to the formation of SICO, Telcom Somalia was the only ISP in Somalia.
Telcom Somalia¹s services remained a preserve of a few because it was
expensive to ordinary Somalis. In order to get connected, one had to
generate an international call to access a server in Norway (the national
telco is part Norwegian-owned).

SICO has put up a local server in Mogadishu that has a bandwidth capacity of
128 Kbps with a VSAT link that connects to Etisalat (Emirates
Telecommunications Corporation), its gateway to the rest of the world.

SICO has a dialup system with an access mode that connects the major
telecommunications companies in Somalia and thus reaching their final
subscribers. Presently, the company¹s 325 subscribers, emanating from the
three major telecommunications network operators, can access the server
through the telecommunications companies¹ access phone lines. SICO¹s server
has been configured in a manner that it can allow future expansions in case
the current limit is exhausted.

In order to minimize technical hitches and perfect its delivey of quality
and affordable service to its customers, SICO has entered into a contract
with a UAE-based company that provides it with online technical support and
assistance through Remote Access Services (RAS). In addition, the company
has a qualified team of both managerial and technical staff.

Although the company enjoys the largest market share in Somalia ­ especially
southern Somalia ­ it does not mean that the market is free from competitors
and other upcoming ISP¹s. There are other two independent ISPs that are
fully operational in the cities of Bossasso in the north-east (now Puntland)
and Hargeisa in the north-west Somalia (now Somaliland) respectively.

Even in Mogadishu where SICO enjoys almost a 100% monopoly, there are other
upcoming companies, like NetExchange, that are planning to offer Internet
services.

SICO started offering its service at a fee of US$ 6 per hour for surfing
including the PTNS charges. Three months ago, the company reduced the hourly
charge for surfing by half to US$ 3. This new rate has attracted many
customers.

The major users of internet in Somalia include community-based
organizations, diplomatic missions, UN agencies, a few academic
institutions, the business community and a very limited number of Internet
cafes. With peace in the country, it is expected that their number will go
up dramatically. According to Mr. Mohamed Jama, a former consultant of SICO,
the company will review its pricing policy to a more affordable rate once
its subscribers numbers 1000.

On the future plans of SICO, Mr. Jama said, " the company aims at expanding
its network and build a national data management backbone that will cover
all the regions of Somalia."

SICO intends to embark on a programme of designing and developing
value-added Internet services including e-commerce, teleconferencing,
telemedicine, telecentres and even introducing to its customers the idea
Virtual Reality (VR) among many others.

The present circumstances prevailing in Somalia, by and large, threatens the
very existence of a technology that is currently in its infanthood. First,
the absence of a lasting peace and the issue of political instability have
scared away both local and foreign investors from pumping their wealth into
the Somali economy. The impact of this situation negatively affects the
Internet market.

Awareness on Internet usage and the role this powerful technology can play
in communication and development is still at a low level among the Somali
public. It will take some time before the general public come to appreciate
the presence of Internet in their immediate environment.

Inadequate skilled manpower, insufficient supply of quality computer
hardware and half-baked computer training skills offered by some of the
private learning institutions in Somalia are among the obstacles that blocks
the way forward for Internet.

In a nutshell, the expansion and performance of any one ISP in Somalia
largely depends on its ability to provide quality, safe and affordable
Internet solutions in a completely free market environment. The competition
in Somalia is cut-throat and the market is unregulated. Where these two
factors collide the first casualty is monopoly ­ a condition that has partly
led to poor performance of many state enterprises and parastatals in Third
World countries, especially those in Africa.

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NEWS ROUND-UP AND SNIPPETS
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* INCREDIBLE CONNECTION SIGNS UP WITH M-WEB

Incredible Connection has announced that it had signed a deal with M-Web
Business Solutions that sees the functional and design overhaul of their
online offering, and the relocation of SA's largest consumer technology
retailer to the "highly trafficked M-Web shopping environment".
(source: http://www.boot.co.za/news/apr01/mweb24.asp )

* NIGERIA'S OBASANJO SETS SEPTEMBER DEADLINE FOR NITEL PRIVATISATION

Nigeria's President Obasanjo has set September 2000 as the deadline for the
privatisation of Nigeria's state-owned telco, NITEL. Obasanjo's position
on NITEL's privatisation was made public at his recent meeting with the
National Council on Privatisation (NCP). At the meeting, the president
underscored the urgent need to have NITEL privatised as "the exercise would
send the right signal to both local and foreign investors about the
seriousness of government on the privatisation programme". The government
has halted NITEL's negotiations for a joint venture with Dutch-based Mobile
Systems International as being inconsistent with a desire for a fully
privatised company. As with much else in Nigeria, there is often a gap
between timetabled intentions and speed of action but we await further
announcements with interest.
(sources: various)

* SA'S COMAIR SELLS EXCESS INVENTORY ONLINE

Amorphous New Media, a South African digital design agency, has provided
Comair with an online mechanism to sell their excess inventory online.
"e-savers is designed to provide Comair with an online device to sell
distressed inventory in a quick and cost-effective way," says Lara Holing,
sales and client services director at Amorphous New Media.
(source: Boot http://www.boot.co.za/news/apr01/amorphous23.asp )

* MGX IS APPOINTED SUN'S FIRST AFRICAN STORAGE DEVELOPMENT PARTNER

Sun Microsystems SA has announced the appointment of MGX as its first
storage market development partner, bringing to market a new Sun initiative
focusing on storage, currently the IT industry's highest growth area in ICT
spend. MGX is Sun's first SMDP appointment in Africa.
(source: Boot http://www.boot.co.za/news/apr01/microsystems24.asp )

* EGYPT: THIRD MOBILE TELCO SOON

Chairman of Telecom Egypt Aqeel Bashir has announced that the establishment
of a third mobile service provider will be initiated in six months. Telecom
Egypt will choose an anchor investor fairly soon, he said. State-owned
Telecom Egypt is expected to strike a deal with an international
bank within a week to help it identify an appropriate strategic investor.
(Middle East Times 2001 via DigAfrica)

* AFSAT AGREEMENT SIGNED IN TRIPOLI

An agreement to set up the African satellite company , Afsat, was signed in
Tripoli between the African Regional Organization for Satellite
Communications, the Libyan General Post and Telecommunications Company
and the French Company Alcatel Espace. The project aims at providing all
parts of Africa with telephone services and internet, in addition to radio
and television broadcasts.
(source: BBC Online)

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ON THE MONEY
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* GETTY AND CORBIS: THE WORLD OF ONLINE IMAGES - BACKGROUND PROFILE

Since Mark Getty founded Getty Imagesin 1993, the Seattle company has bought
13 major companies, including Photodisc, Art.com, and most recently The
Image Bank and Visual Communications Group -- Getty's largest competitor.
Founded by Microsoft's Bill Gates, Corbis, Bellevue, Wash., has the second
largest online photo collection. Its holdings include the Bettmann Archive
and the recent acquisition of the leading French photo news company Sygma.
While the companies say they provide a valuable service by offering
customers access to more than 100 million digital images online, the photo
industry is complaining about the consolidation of an industry once
dominated by what the Americans call "mom-and-pop" shops, individually-owned
small businesses.

Jim Pickerell, who publishes the Selling Stock newsletter, estimates Corbis
and Getty together represent $500 million in gross sales of an industry that
grosses $1.25 to $1.4 billion a year. He questions, however, if Corbis and
Getty's move to transform the industry from an analogue system -- where
photos were delivered on transparencies -- to a digital, Internet-based
system is the way to go. "Getty and Corbis are focusing almost exclusively
on the online environment and taking what had been analogue businesses and
forcing them into [the] online environment at possibly too fast a speed," he
said. "They may kill the goose that laid the golden egg in the process of
driving it all digital."

Getty acknowledges the hurdles it faces in moving analogue customers to its
digital system. Bud Albers, Getty's chief technology officer, said one of
the biggest challenges in acquiring the companies and keeping their
customers was maintaining the brand while integrating their photography
collections into Getty's online system. Getty purchased some companies, like
The Image Bank, for its photographs. It bought Art.com and Photodisc for the
technology, Albers said. Integrating the photos into Getty's online system
was the easy part, he said. Educating customers on the new online system
takes longer.

Aiming to wring more revenues out of its digital assets, in February Getty
Images launched gettyworks.com, a dedicated web site for business
professionals to use to help them create their own corporate materials and
presentations. It is, the company claims, a comprehensive do-it-yourself Web
site for creating a wide range of image-rich business communication
materials, including reports, newsletters, stationery, Web sites, and
Microsoft(R) PowerPoint(R) presentations.

A recent Harris Interactive poll showed 82 percent of all business
professionals surveyed, who use a computer at work and have access to the
Internet, believed having professional-looking business materials could give
them a competitive advantage. In addition, the same research showed 32
percent of the business people surveyed were spending an average of more
than $100,000 a year on design. Further, large businesses were
disproportionately spending more -- 50 percent of the large businesses
surveyed indicated they spend more than $100,000 a year.

In January, Microsoft-owned competitor Corbis announced a company-wide
restructure to increase its focus on customer-oriented activities,
accelerate the integration of its numerous acquisitions and increase
productivity. These steps are aimed at enabling Corbis to create a
profitable, all-digital business model while enhancing its position as the
global leader in providing a comprehensive suite of photography and other
digital content under a single brand.

Key elements of the reorganization are a consolidation of redundant
functions generated through acquisitions, reduction of analog support
activities as new digital platforms are adopted, and the creation of shared
services departments to provide a cohesive approach to supporting newly
re-aligned market groups: Creative Professionals, Business Communicators and
Consumers.A significant result of these changes was the immediate layoff of
approximately six percent of Corbis' 1,300 employees worldwide. Positions
eliminated are spread across Corbis offices in New York, Bellevue, Los
Angeles and London, and are primarily in marketing, technology and analog
operations.
http://www.corbis.com
(sources: various including Tech Web News and PR Newswire

* I-TOUCH'S MAGIC CLINCHES DEAL WITH MTN

iTouch has clinched a deal with mobile phone network provider MTN which
opens up the world of mobile magic to MTN subscribers, and should
dramatically expand its leading position in this SA market sector.
Previously only Vodacom cellphone users were able to download iTouch's
extensive mobile magic range of ringtones, operator logos, picture messages
and group graphics.
(source: Boot http://www.boot.co.za/news/apr01/itouch25.asp )

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USEFUL WEB SITES AND DISCUSSION LISTS
____________________________________________________________________________

* AFRICA CALLING: RADIO STATIONS ON THE INTERNET

A list of African Radio Stations broadcasting on the Internet can be found
on:http://www3.sn.apc.org/africa/partial.html

(URLs for the stations below may be found on the above page)
Algeria - Radio Algrienne
Angola - Radio Ecclesia
Benin - Golfe FM
Egypt - SIS
Gambia - Afrobeat
Ghana - Joy FM
Kenya - KBC
Madagascar - Korail FM
Maroc - Medi1, Alkhbar
Senegal - RTS, Nostalgie,SudFM
Tanzania - Radio One
South Africa -Channel Africa, ClassicFM, 5 FM, Kaya FM, Metro, East Coast
Radio
Tunisia - Radio Tunis
Uganda - Radio Simba
(source: TAD Newsletter)

* COMMONLINK LAUNCHES NEW EDUCATION WEB SITE

CommonLink ­ Linking Global Citizens, a new educational web site exploring
global citizenship and aimed at all schools internationally, will launch in
June 2001.Created through a partnership between the Commonwealth Institute
and the British Council Australia
, CommonLink¹s main feature is a series of
moderated forums investigating topics as wide ranging as, among others,
cultures, democracy, media, sport, fair trade, society and active
participation in both accessible and challenging ways, and aimed at
exploring how we are connected to each other locally and within the wider
world.

CommonLink provides a unique opportunity for Africans schools to participate
in a truly international project and establish contact, make links and
exchange ideas with their counterpart abroad. High profile guests will also
be invited to the forums and pupils will be able to email them and receive
personalised answers.The moderated forums are supported by background
material on the topics dealt with, tips for discussions, links to other
sites, information on the Commonwealth countries, polls, quizzes, virtual
postcards, as well as guidelines for teachers on how to make the best of
CommonLink.CommonLink will run until June 2003 and all African schools are
invited to participate. For more information, please contact Paola
Marchionni, Project Coordinator, at [email protected].

* WEB ANIMATED MOVIE SATIRE ON ICANN

ICANN plays a deeply important role in global internet governance
but we couldn't help chuckling at a piece of none too profound, web satire
at its expense:
http://www.paradigm.nu/icann/icannstage.html
(source: Richard Bosire via Afrik-IT)

* US AFRICAN DIASPORA MUSIC SCENE

There's always a constant flow of announcements from the USA about different
African music events and recording artists. Rosy! who claims to be the
number one recording artist in Cameroon is playing the Oasis at Silver
Spring, Maryland every Friday. Doors open at 11.30 pm. Other Cameroonian
recording artists appearing include: Ndedi Eyango, Pierre Diddy Tchacounte
and a surprise guest...
For more info, visit: http://www.rosyonline.comor oasisofsilverspring.com

Through http:// www.groovetech.com you can click on MR. Supreme¹s weekly
show April 30th at 4pm PST and see Ka¹shana from THE BLOCK album.
For more info: http://www.goldenrecord.com

* OVERVIEW OF STATE OF AFRICA'S INTERNET

The US Internet Council State of the Internet Report 2000 finds that high
connection costs, low incomes, poor infrastructure, illiteracy, lack of
trained personnel, disinterest and a failure to understand the benefits of
internet access continue to slow the expansion of computer penetration and
internet use in Africa. See http://www.usic.org/

* GHANA GOVT HINTS IT WILL STRENGTHEN FREEDOM OF EXPRESSION

The new government of President John Kufuor is giving indications that it
will scrap those aspects of the Penal Code that criminalise freedom of
expression.
http://www.africaonline.com/site/sn/
(source: West Africa Newsletter)

* AFRICAN CENTURY MAGAZINE GOES ONLINE

African Century's first issue is now out and all the articles are available
at http:// www.african-century.com. Developing the web site has not b een
without unexpected technical problems. It is committed to developing a fully
interactive site. Editor Dapo Ladfimeji says:"What is presently available is
only the tip of the iceberg of what we are working on. We hope to have the
graphics, comments and textual glitches sorted out in the next week or so".
Make a note to go visit it in a week's time.

* AFRICAN ARTISTS IN HOLLAND: ONLINE SURVEY RESULTS

Africaserver has recently published a survey of over 30 African artists
living / working in the Netherlands. For each of them it has included some
artwork, a portrait, biography and a contact address .

At the same time it has surveyed Dutch institutions active in the field of
contemporary African art. Both surveys are in English and Dutch. The launch
of this new module part of Art and Culture
http://www.africaserver.nl/kunstcultuur/index_uk.htm was done in discussion
with the African artists and the institutions involved.
(source: Fons Geerlings, director, Africaserver )

___________________________________________________________________________
LETTER FROM UGANDA: THE POWER OF POWER
___________________________________________________________________________

Life in Africa's Christina Jordan describes the nightmare of moving her
computer facilities to a neighbouring building. The difficulties she
encountered may well strike a chord with others and help illustrate that
closing the digital divide is more than just providing access to computers.
The telecomms infrastructure may be improving but the power system lags
dangerously behind.

In the "old days" just 3 weeks ago, when we finished interviewing clients
we'd close the office and climb up the hill to the Life in Africa computer
room at my home. It was an awkward arrangement - inefficient, and a hassle
for the volunteers. They weren't able to get as much exposure to the
internet as they wanted to, and with rarely enough hands on deck to get all
the work done, I spent countless sleepless nights pulling up the slack.

In January, just as a new volunteer training class began, the other tenants
in the building we were sharing announced that they would leave. Though it
would mean an increase in rent that we could hardly imagine being able to
afford, it was also a golden opportunity to merge LiA's loan program and
internet activities into a single, smooth running operation. The volunteers
would get more training and experience on the internet; the clients would
benefit from an increased presence of loan program staff; and I would
benefit from more human resources to help manage LifeInAfrica.com. In short,
it HAD to be done. So once we raised the funds, it should have been simply a
question of unplugging the computers and plugging them back in at the new
location, right? WRONG!

First, we had to provide our computers with a secured environment. Not only
would it be unwise to leave the computers unsecured during off-hours, but no
insurance company would talk to us without certain minimum security measures
in place. One of our clients had recently received a loan to start offering
iron bars on windows as part of his contracting business. We became his
first customer when we asked him to completely cage off one of our new
rooms. Though a few of the bars are not *quite as straight as they would be
with more practice, he did a fine job.

The security issue still wasn't solved, however. The prices for commercial
security services are way out of our reach, so we hired a "local-local"
night watchman who guards the place with a bow and arrow. The guardhouse
we've had built will keep him dry when it rains, and the new papyrus fence
will keep people from passing by the windows and seeing the computers
inside.

Next, we had to completely rewire the building for electricity. There was no
earthing, and the poor quality wires were probably 20 years old. In what
would be the computer room, there was only one plug, and connecting through
it used to send a few sparks flying. Now we have 5 plugs in that room -
complete with earthing! - and the lights in each of the other rooms actually
work too.

One of the common problems with the power supply in Uganda is voltage peaks.
When the voltage level gets too high it can destroy a motherboard, so we
decided to install a voltage switcher on our main electricity switch. With
this contraption, whenever the voltage goes above a certain level, the power
to the whole building simply switches off. With this, plus our UPS
(uninterrupted power supply) units to ensure that our computers could still
be shut down properly if the power went off, we thought we were set.

The last major task was to move the wireless equipment that connects our
computers to the internet via a satellite link. This technology consists of
a small transmitter connected on one side to our computer network, and on
the other side to a dish-like antenna on top of the building. The antenna
sends and receives signals through a tower it points to on top of a nearby
hill, providing 24 hour internet access to all of our computers, without a
modem or a dial-up connection of any kind. It's a brilliant invention which
is used in many Kampala offices, since it's much cheaper and more reliable
than a dial-up connection (local phone calls are NOT free!)

Just one small problem... somewhere between our new office and the tower on
the hill, there is a huge mango tree which kept blocking part of the signal!
After all that investment in security and electricity, the location of the
new LiA computer center was fundamentally flawed.

Okay - calm down, take some deep breaths...

After hours of turning the antenna this way and that, the technicians
finally got it working. The signal still isn't quite perfect - it fades in
and out if the wind blows that darned tree the wrong way. But with a little
patience, it works. Whew!

Moving day! Finally! After the last clients left, 7 of us headed up the hill
to pack up and move. We didn't get all set up that first day, but did manage
to unpack the computers and set them where they were supposed to be. What an
impressive site! It was very exciting. After a small celebration with the
gang to toast to the changing face of LiA, I returned home and actually went
to bed before midnight for a change. It was a good thing, too, since the
next couple of days required every ounce of energy I could muster to
maintain my cool.

Remember that power switcher thing? Well... for more than half of the first
day and ALL of the second day, the voltage was coming in consistently at
dangerous levels. Which meant no power. None. At all. So... on to Plan B.

We removed the voltage switcher and bought voltage stabilizers instead. Much
more expensive (budget? what budget?), but obviously necessary. The
stabilizers also switch off automatically if the voltage gets too high, but
not before trying to bring it down to a normal level. With those units
installed, we thought we could finally begin to get our machines set back
up.

Nope. During a rainstorm the next day, the power went off. It came back on
within half an hour for our neighbors on both sides, but we were powerless
yet again. Around 5pm an electrician (another LiA client) stopped by and
found the problem: our central electrical connection is not through a fuse
box but through a single ancient switch, which was no longer gripping as it
should. Seeing our misery, he tightened it up free of charge, and even
showed us how to wiggle it gently if the problem occurs again. Yippee! It
was now Friday night, and we could FINALLY get back to work.

Believe it or not, IN ADDITION to all of this nightmare, we also had a major
computer crash. The crash occurred 2 days before we moved the internet
connection, and that computer (which was also the network server, and is
still under warranty, thank goodness) is now in South Africa for repairs.

We had dreamed of buying an additional computer, but didn't have the
funds... necessity intervened, and now we've had to buy one whether we had
the money or not. Losing all of our email contacts was a terrible setback,
and our budget is now in a terrible state. Actually, though, I was surprised
to see how much the prices on new computers in Uganda have fallen over the
past year. We bought a 733 MHZ Pentium III with 124 MB of RAM for under
$1200 - which is hundreds less than we paid for a less powerful, less
sophisticated machine just one year ago.

In fact, throughout this whole saga, I have repeatedly been struck by the
advanced telecommunications equipment available here in Uganda. During the
move, our driveway at home was torn up because they are laying fiber-optic
cables on our street. Our wireless internet connection is clearly far more
sophisticated than any dial-up connection anywhere. We didn't even think of
installing phone lines in the office - the cellular phone network has
expanded to include almost the entire country in just 2 short years, and
cell phones are cheaper in Uganda right now than they are in Europe.

Juxtapose this against the power infrastructure, and it's quite mind
boggling, really. At the end of the day, though, in spite of all this
technology, it's power that still has the real power! Without electricity,
our wireless connection doesn't work, our computers go down, and we are left
with only our cell phones to communicate with... there is talk that the
leading cellular company will also be providing cellular internet access
through their network very soon. Sounds promising, but could it completely
bypass the power grid?

Short of buying a generator, and replacing the ancient switch with a new
fuse box, we've done about all that we can right now to ensure a stable
power supply to the new LiA computer center. So far, so good. We've been
without electricity for only about 45 minutes so far this week. Wiggling the
switch didn't help on that occasion - it was a general power failure, for
which patience was the only solution.

Luckily, I really am getting more sleep now that the workroom has moved out
of my home, so my patience is in more ready supply :) After more than 10
days offline, however, I am eager to rebuild everything we lost in the crash
and FINALLY get back to work!

If you'd like to see what our new office looks like (including the wireless
equipment AND the ancient power switch) take a peek right here:
http://LifeInAfrica.com/about_LiA/office.htm
(source: © 2000, The Life in Africa Foundation)

____________________________________________________________________________
IN SEARCH OF THE BUSINESS MODEL
____________________________________________________________________________

* NORTH AFRICA: THE IMPACT OF ARABIC URLs

Nearly 75,000 websites to date have registered an Arabic character URL
address using any of several technologies now available to bypass the Latin
character-based Internet domain name system. Most addresses were registered
over the past six months, since the Dubai inaugural meeting of the Arabic
Internet Names Consortium (AINC). A non-profit organisation based in Los
Angeles, AINC comprises member companies offering unique Arabic domain name
solutions. They meet periodically to agree on standardised address suffixes
in Arabic, even as they fiercely compete to win a critical mass of
registrants. A frontrunner has already emerged, increasing the likelihood
that its technology will become the region's standard.

Each company offers a unique Arabic character domain name which functions as
an alternative route to a website with an existing Latin character address.
The companies' differing business models are informed by their respective
technologies. Providers of a front-end or "keyword" solution, which re-maps
Arabic characters into ASCII code, face the formidable task of uploading the
requisite software application to individual users. Providers of a back-end
solution need only sign on Internet Service Providers (ISPs) and backbone
providers, but risk total obsolescence if an incompatible solution wins the
day.

The growing prevalence of Arabic character domain names stands to boost
Internet adoption across the Middle East and North Africa. Viewed in a
broader context, the "Arabisation" of web content and computer interface are
major drivers of Internet uptake. New users will hail mainly from the
region's lower/middle-income classes, where foreign language mastery will
remain a luxury but computers will become more easily accessible. A
meaningful contingent will also hail from the more affluent sphere,
particularly in the Gulf states, where proficiency in English is not
necessarily a prerequisite to the maintenance of a comfortable standard of
living. The latter group has had ample opportunity to use the Internet but
been deterred by a relative lack of Arabic-language content.

Demand for Arabic character domain names is difficult to forecast because of
a major wild card: non-Middle Eastern companies wishing to adopt an Arabic
name in order to address the region's Internet users. We forecast that the
market for names within the Arab world alone will be worth $126m over the
next two years. (This figure stems from our research on public- and
private-sector Internet adoption and the ratio of subscribers to domain
names. It also accounts for a likely reduction in domain name registration
fees.) Forty-five percent of the demand will come from Egypt, the most
populous Arab country, where the government aims to make dial-up Internet
access available free by October 1st 2001. Another 43% will come from the
Gulf Co-operation Council (GCC) states, led by Saudi Arabia and the UAE.
Most of the remaining 12% will be divided between North Africa and the
Levant, with Morocco and Lebanon contributing the lion's share.

The major back-end solution provider for Arabic domain name registration is
Nativenames.net, a California-based technology and Web development company.
Its business model involves the installation of an Arabic platform add-on
free of charge on the region's ISP servers. A server needs to run Windows
2000 or Arabic-enabled Windows, or use version 9.1 of Berkeley Internet Name
Domain (BIND), an implementation of the Domain Name System protocol.

The company authorises portals to sell its Arabic domain names at the
standard rate of $35, from which it takes a considerable cut. In countries
where there is a single backbone provider, such as Morocco and the UAE,
Nativenames need only sign on the backbone provider; the ISPs and, in turn,
their subscribers, automatically fall into place.

For the countries in which additional legwork is required, Nativenames is
well on its way, having signed on all but two of Egypt's 70-odd ISPs, three
out of nine in Lebanon, and five out of six in Jordan. Saudi Arabia's
Internet backbone provider and regulator, the King Abdulaziz City for
Science and Technology (KACST), has yet to sign on, making Saudi Arabia the
company's major blind spot. In the two months since its launch, Nativenames
has registered more than 50,000 domain names.

Of the major players in the Arabic domain names space, Walid.com, with
13,000 names registered and counting, is the leading front-end (download)
solution provider. I-dns.net offers a rival back-end solution and dominates
the Chinese character domain name space. Its strategy of signing on ISPs to
exclusivity agreements seems to be less effective in the Arab world,
however.

All these solutions may become obsolete should the powerful non-profit
Internet Engineering Task Force (IETF) decide to reengineer the Internet's
base character set from ASCII to Unicode. This and other eventualities may
lead the current Arabic domain name solutions players to try out creative
spin-off ventures, enabling them to leverage their knowledge base in other
applications. Such opportunities abound in an era of blurred linguistic,
cultural and national boundaries. Western governments stand in immediate
need of effective transliteration solutions for immigration and
naturalisation databases.

Large pharmaceutical and food companies require advanced linguistic
technologies to manage massive lists of contacts, clients and employees in
Arab countries. In a region where the population will double over the next
25 years, the management of names and other proper nouns is a solid growth
industry.
(source: Pyramid Research via DigAfrica)

* A MOBILE HEALTH SOLUTION

Health Laboratory Services and the Eastern Cape Department of Health in
South Africa have developed a mobile solution to improve healthcare delivery
in rural areas.A pilot project just completed in the Transkei used wireless
application protocol (WAP)-enabled cellphones to allow doctors to receive
detailed laboratory test results on the same day that samples were sent off.
This was reportedly a first for the area, which is not served by power or
telephone lines. The doctors at the six clinics involved in the pilot
project are now using the cellphones extensively.

"As well as SMS, the system also has a Web and WAP interface to enable data
to be input and delivered to the various people that need it. This
technology requires a minimal learning curve for the staff at the clinics
and gives doctors and medical researchers full access to the statistical
data. As the cellphones become more Internet-enabled, this solution will
expand to provide an excellent solution for these types of applications.

"The beauty of the concept is that it is simple, cost-effective and easy to
roll out. We are currently rolling out the project to Transkei's roughly 400
clinics, and we hope to roll it out throughout SA by the end of this year."
(source: Financial Gazette via Dig Africa )

* MICROSOFT FUNDS WEB-BASED EDUCATION COMPANY

Microsoft has joined a US$48 million investment round for Blackboard, a
company that provides software for online education providers.
(source: http://www.itweb.co.za/sections/business/2001/0104170857.asp )

___________________________________________________________________________
PEOPLE
___________________________________________________________________________

* AFRICA ONE PRESIDENT NAMED TO EX-IM BANK'S SUB-SAHARA COMMITTEE

Africa ONE President, Patricia Bagnell has joined the sub-Saharan Africa
Advisory Committee of the United States Export-Import Bank (The Ex-Im Bank).
"I am delighted to be able to serve on this committee to assist the Ex-Im
Bank in promoting US exports to Africa and boost the US-Africa economic
relationship," said Ms. Bagnell, upon her appointment. The sub-Saharan
Advisory Committee provides expert guidance to the Ex-Im board in developing
policies that will further strengthen Ex-Im Bank support of US exports to
Africa.

Africa ONE is a private company, seeking to build, own and operate a 32,000
kilometer undersea fiber optic telecommunications cable system around the
entire continent. With landing points in about two dozen coastal cities in
Africa, the Middle East and Europe, this cable will, for the first time,
link African nations to each other and to the rest of the world.

____________________________________________________________________________
EVENTS
____________________________________________________________________________

* SIYAFUNDA: PARTNERS IN LEARNING EDUCATION IN SOUTH AFRICA - 1994 AND
BEYOND

A conference organised by the South Africa Education Group to lfuture
developments and specifically at forms of partnerships that are emerging in
the country to address quality education and social transformation, and the
different partnerships being developed between South Africa and the United
Kingdom.

Venue: Institute of Education, University of London, 20 Bedford Way, London
WC1 on Saturday 19 May 2001 from 9.30am to 5.15pm. Of particular interest to
News Update readers because it looks at the digital divide, partnerships and
privitisation. Speakers include:
Thami Mseleku, Director General, South African Department of Education,
Professor Colin Bundy, Director of the School of Oriental and African
Studies (SOAS) and former Vice Chancellor of the University of
Witwatersrand, Professor Shula Marks, SOAS, University of London and many
others.

Workshops/themes include: HIV/AIDS and the impact on education.
redesigning Schools, curriculum 2005, globalisation, privatisation,
teachers and learning, skills development, the digital divide, quality
reform in schools/anti-racism, education and social policy, gender Issues
and life-long learning.

Conference fee (includes coffee, tea and lunch):
Corporates £50 Individuals £20 Students £10
Please make cheques payable to ŒCCETSA (SAEG)¹ and send to

Canon Collins Educational Trust for Southern Africa (CCETSA)
Unit 22 The Ivories, 6 Northampton Street, London N1 2HY
Tel: 020 7354 1462
Fax 020 7359 4875
Email: [email protected]
Web: www.canoncollins.org.uk

____________________________________________________________________________
BACK NUMBERS: AFRICA AND THE DIGITAL DIVIDE
____________________________________________________________________________

52. Internet business centres spring up across the continent...Now Ghana
http://www.balancingact-africa.com/news/back/balancing-act49.html

49. Digital growth in Africa -Things Govts can do for free or nearly free
http://www.balancingact-africa.com/news/back/balancing-act49.html

48. Volunteers seek to build an IT culture in Africa
http://www.balancingact-africa.com/news/back/balancing-act48.html

44. Recycling unwanted computers to needy users in Africa
http://www.balancingact-africa.com/news/back/balancing-act44.html

35. Bridging the information divide - health and internet special
http://www.balancingact-africa.com/news/back/balancing-act35.html

34. Getting connected: A telecomms special
http://www.balancingact-africa.com/balancing-act34.html

31. Schoolnet: Building tomorrow's digital generation
http://www.balancingact-africa.com/news/back/balancing-act31.html

27. Telecentres: The key to wider internet access?
http://www.balancingact-africa.com/news/back/balancing-act27.html

25. ACT 2000: Taking the pulse of internet development
http://www.balancingact-africa.com/news/back/balancing-act25.html

23. Africa's digital rights - a minefield of issues
http://www.balancingact-africa.com/news/back/balancing-act23.html

22. Digital villages open up access to skills and education
http://www.balancingact-africa.com/news/back/balancing-act22.html

21. Spectator at the feast - An African at INET
http://www.balancingact-africa.com/news/back/balancing-act21.html

20. Africa and the digital divide: three clouds don't make a rainy season
http://www.balancingact-africa.com/news/back/balancing-act20.html

You can read and download these at http://www.balancingact-africa.com . If
you have difficulties accessing the web, mail us on
[email protected].

___________________________________________________________________________
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