Is the long-running saga of the five broken undersea cables linking Vietnam with the world now over? Regional reports suggest it may be, at least for now.

Repair efforts have apparently now finished on all five broken undersea cables linking Vietnam with the world, according to a representative of an ISP in Vietnam this week who was not identified.

The Intra-Asia (IA), SMW3, and Asia Pacific Gateway (APG) cable systems were restored in late May and September. SAAG (Asia, America Gateway), a 20,000-kilometre submarine communications cable system connecting Southeast Asia with the United States across the Pacific Ocean via Guam and Hawaii, was fixed in early November. Finally The AAE-1 (Asia-Africa-Euro 1) cable, which broke down on September 27, was fully restored in late November. 

But, says news resource VietNamnNet, over the next few years the country will have at least four and as many as six new undersea cables. The Vietnam Telecommunications Authority (VNTA) suggests the new cables will be available by 2030.

We reported earlier this year on the imminent arrival of two of these: SJC 2 and ADC. State-run Viettel hopes to use the ADC cable by the end of the year. Another state-owned telecommunications company, Vietnam Posts and Telecommunications Group, plans make use of the SJC 2 cable.

Last month saw FPT Telecom, a subsidiary of Financing Promoting Technology, the largest information technology service company in Vietnam, approve an investment initiative for the ALC undersea cable project.

Cable issues have been in the news for some while in Vietnam. As regular readers may be aware, four (out of five) undersea cable routes used by Vietnamese carriers were experiencing issues as long ago as January this year.

Three vendor announcements and a data center collaboration: … [visit site to read more]

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Operator Tigo Tanzania has partnered with DCB Bank to expand financial inclusion for the unbanked through a service partnership that will enable customers to access the bank’s services through mobile pyament service Tigo Pesaʼs network of mobile money agents.

DCB says it plans to leverage Tigo Pesa mobile money agents to mobilise deposits and offer customers enhanced options for fund withdrawals.

The service was, it seems, initiated in response to the challenges, including high costs and demanding management requirements, encountered by smaller and mid-tier banks when embracing the agency banking model.

DCB says it has been managing a robust agent network for more than a decade, creating livelihoods for more than 200,000 agents. Thus, this service aims to help banks improve their market presence seamlessly, without the worries of recruitment, documentation, training, POS device provisioning, and day to-day management.

It will, of course, also benefit DCB Bank and offer new opportunities for Tigo Pesa.

Tanzania’s Citizen news service quotes DCB Bankʼs Legal Manager and Company Secretary, Ms Regina Mduma, as saying that this partnership will create convenience for customers, allow the bank to provide them with a wider range of services, and make it easier for them to access their money.

To seamlessly deposit or withdraw funds from bank accounts through selected Tigo Pesa Wakalas (or agents), all customers need is a Tigo SIM.

Is this a viable future for mobile finance? It’s probably just one of many futures as the service evolves. See our new feature on the topic for more on where mobile money has been and where it’s going.

The data center space is constantly evolving, presenting frequent opportunities to leverage the cutting-edge technology that it provides the infrastructure for. Beyond any doubt, the biggest buzzwords of the last twelve months and the foreseeable future are AI and Machine Learning.  With us today is Raymond Burrell from EkkoSense, a company that aims to leverage its cloud-based data platform to turn the potential of ML and AI into operational optimization for data center operators. … [visit site to read more]

Axiata Group secured a deal to sell off its majority share in its Nepalese operation Ncell, effectively ending the group’s business in Nepal after seven years due to a tax dispute. 

In a statement, Axiata said it entered an unconditional sale and purchase agreement with Spectrlite UK, for its holding company Reynolds which holds around 80% stake in Ncell and a mobile licence running until 2029.

Axiata chairman Tan Sri Shahril Ridza Ridzuan said: « The increasing challenges in the operating environment represents a fundamental shift. It has led the Axiata board to conclude, after a thorough process, that our foray in Nepal cannot continue due to the unfavourable conditions for Axiata. »

The operator entered Nepal in 2016 after acquiring Reynolds for US$1.3 billion and securing the 80% stake in Ncell it is now selling. 

The reason for Axiata’s exit stems from a highly disputed capital gains tax bill from the Nepalese government. 

Axiata noted it paid NPR47 billion (US$421.9 million) in capital gains tax to the Large Taxpayers Office of Nepal (LTPO) in April 2020 for the acquisition of Reynolds, and stated it received confirmation from the tax office that there will be no further taxes.

But the LTPO demanded NPR57.9 billion (US$433.6 million) extra for the transaction after further assessment in January 2021. 

The money has not been collected by the LTPO as Axiata took the matter to the Supreme Court of Nepal which issued an interim order. The company noted: “Capital gains tax was imposed on Ncell and Axiata after Nepal’s efforts to collect tax from the seller failed.”

Axiata filed the matter to the International Centre for the Settlement of Investment Disputes, which found in June this year that Nepal should cease its demand for further taxation for the 2016 acquisition.

Despite this, the Nepalese government has yet to withdraw its demand for the extra payment.

Axiata argued if it paid the extra tax, it would take the overall capital gains tax bill to USD855.5 million, or 62.7% of the transaction of Reynolds (US$1.3 billion) to enter the market.

Axiata blasted conditions in Nepal, highlighting double taxation, expiry of its licence in 2029, potential expropriation of Axiata’s stake by the government and unfavourable foreign investment protection. 

The company claimed to be the largest tax payer in Nepal, contributing NPR283.0 billion in taxes and fees as of its fiscal 2021/2022 since inception. It has over 17 million subscribers across its network. 

Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata added the sale enables a “clean exit” from Nepal. 

The company revealed intentions to leave Nepal in its financial results this week.

A bit of data center M&A, a new secure device option, an FTTH upgrade, and a new data center campus: … [visit site to read more]

In the weeks running up to AfricaCom 2023 (part of the Africa Tech Festival, the largest digital infrastructure event in Africa – takes place November 14 to 16 in Cape Town), there is a lot of preparation work to do on site, so I have been watching a fair amount of South African television recently. And this has really opened my eyes to the prevalence of the use of SMS text messaging by South African organisations of all shapes, types, and sizes to both communicate with existing clients and help reel in the new. It’s very simple: viewers see … [visit site to read more]