Mobile operator MTN has teamed up with entrepreneurs in the South African province of Gauteng to provide high-speed wireless Internet access to ‘Internet cafes’ in townships lacking affordable fixed-line connections. The pilot project, which uses MTN’s 3G network to connect 10 sites to the Internet, is part of a GSM Association Development Fund programme to adapt the latest mobile technologies to the needs of the developing world.

MTN is using the cutting edge 3G technology HSDPA to provide a high-speed connection to a local entrepreneur’s payphone shop in the Alexandra township near central Johannesburg – one of the first ‘Internet cafes’ in the world to use HSDPA. People renting time on the computers situated in the booth will be able to access the Internet at speeds of up to 1.8 megabits per second. The other nine sites are connected to the Internet via an EDGE network, allowing download speeds at about 120 kilobits per second.

The early rollout of high speed Internet services by South African mobile operators demonstrates that technologies, such as HSDPA, are not solely the preserve of affluent developed countries and that mobile networks can bring far more thant voice and text services to people in developing countries. To help accelerate uptake of 3G in both the developing world and the developed world, the GSMA recently launched a ’3G for all’ programme designed to make 3G services and handsets more affordable.

“This ground-breaking MTN project highlights the great potential of mobile networks to provide high-speed Internet access to the many parts of the developing world that lack extensive fixed-line telephone networks,” said Rob Conway, CEO of the GSM Association (GSMA), the global trade association for mobile operators. “We are hopeful that this kind of shared access service can be replicated throughout the developing world, allowing millions of people to exchange email and browse the wealth of information on the Internet for the first time. By using mobile networks to offer fast Internet access, South African operators are blazing a trail for the rest of Africa to follow,” added Conway.

Branded MTN@ccess, the MTN pilot service is supported by the GSMA’s Development Fund, which finances pilot projects that exploit mobile technologies to bring social and economic benefits to the developing world. Users of MTN@ccess connect to the Internet via an MTN portal – http://www.mtnaccess.co.za – featuring direct links to recruitment services, email services, universities, government departments and many more useful Web sites. The MTN pilot is scheduled to run for six months and could be a precursor to a much wider rollout of shared Internet access services across South Africa using HSDPA and EDGE.

The GSMA’s Development Fund is also supporting a similar shared Internet access pilot in Bangladesh, which uses EDGE technology, and shared voice pilots in several African and Asian countries. These projects could lead to large-scale rollouts that have the potential to transform millions of people’s lives by giving them access to information and communications technologies for the first time. For example, a telephone call, email or Internet search could save people from making long journeys to contact relatives, search for employment or find out which market is offering the best prices for their crops.

New reports are emerging that China Mobile is in place to buy Millicom International Cellular (MIC), after South African operator MTN yesterday announced a surprise agreement to acquire Dubai based telecoms investor Investcom for $5.53bn (ВЈ3bn).

As a result of the agreement MTN’s subscriber base would increase to 28.1 million across 21 countries, making it the second biggest mobile operator in the region, behind Egypt’s Orascom Telecom.

Investcom also said it had withdrawn its offer to buy MIC, which has been on sale since January. The news will come as a blow to MIC, with reports indicating Investcom had tabled a leading $5bn offer for the company.

Other bidders in the running for MIC are believed to have placed offers well under $5bn, and China Mobile has been named as a bidding party once again, despite denying interest.

Late last month, the leading Chinese operator denied that it, or its parent, had made a bid for MIC.

Other interested parties are thought to be Egypt’s Orascom, Kuwait’s MTC, Norway’s Telenor and Mexico’s America Movil.

Kuwaiti telecoms operator, Mobile Telecommunications Co (MTC), said on Sunday that its African subsidiary, Celtel, has signed a conditional deal to buy 65 per cent of Nigeria’s Vmobile for just over $1bn (ВЈ560m).

MTC said in a statement on the bourse web site that the deal also includes an option for the purchase of the remaining 35 per cent of Vmobile.

Vmobile is seen as a hot property in the lucrative Nigerian market. Last year the Virgin Group was placed in talks to acquire a stake in the Nigerian operator, while South African operator Vodacom, backed by Vodafone, also appeared eager to re-enter the Nigerian market, despite pulling out of a management contract with Vmobile in 2004 following discrepancies over the agreement.

Vmobile is the third largess operator in the country with 5 million subscribers as of the end of March. The operator competes with market leader MTN, Glo Mobile and M-Tel.