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Turkcell Drops $4.2Bn Bribery Suit against MTN

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Turkcell, Turkey based has dropped a lawsuit it was filing in the USA claiming that South Africa’s MTN used bribery to deprive it of its Iranian mobile network license.

Turkcell said that it is dropping the case because of an earlier Supreme Court’s ruling last month on the Alien Tort Statute, which limits lawsuits in the USA affecting companies that predominantly operate overseas.

MTN had long argued that any dispute between South African and a Turkish companies, over an Iranian issue should not be held in the USA.

Turkcell’s lawsuit in the US had been put on hold while the Supreme Court deliberated on an unrelated case affecting the Shell oil company. Shells’ victory in that case underminded Turkcell’s argument to have its case heard in the USA as well.

Turkcell was suing MTN for US$4.2 billion in damages over how its Iranian mobile license was cancelled and later awarded to the South African company.

A case heard in the USA has theoretically higher damages potential against a loser.

MTN, through one of its subsidiaries, owns a 49% shareholding in Irancell, which holds the second GSM telecommunications licence in Iran. The remaining 51% of Irancell is owned and controlled by Iran Electronic Development Company (IEDC).

Turkcell and its subsidiary, East Asian Consortium (EAC) was originally awarded the license in 2003. Turkcell’s near 70% stake was reduced to 49% by the Iranian government in 2005.

In June 2005, the Iranian government cancelled the Turkcell license and started talks with South Africa’s MTN, with eventually resulted in the license being transferred.

MTN denies Turkcell’s allegations that it bribed Iranian officials to secure the licenser and says that an investigation could not find any evidence of bribery or political pressure on the Iranians being used.

That MTN funded report did however raise concerns about a US$400,000 payment, but due to the unreliability of the witnesses was unable to find out what had happened to that money.

The UK judge, Lord Hoffmann who lead the investigation concluded that Turkcell’s allegations are “a fabric of lies, distortions and inventions”.

Turkcell withdrew its US lawsuit, but has not dropped the wider complaint.


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African Telcos Compete to Launch Eco-Friendly Data Centres

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African telecommunications companies are hurrying to build data centres powered by green energy as the demand for digital services on the continent increases, driven by the largest youth demographic in the world.

African Telcos Compete to Launch Eco-Friendly Data Centres

Ayotunde Coker, chairman, Africa Data Centres Association

According to newscentral.africa, the continent has already established itself as a leader in mobile money, headlined by Kenya’s M-Pesa and various other mobile payment platforms, with 60% of the population using mobile devices to access the internet.

By the year 2025, an additional 167 million individuals in Sub-Saharan Africa are expected to subscribe to mobile services, totaling 623 million users, and the number of smartphone connections in the region is projected to more than double.

The International Finance Corporation (IFC) estimates that Africa’s Internet economy could account for 5.2% of the continent’s gross domestic product (GDP) by 2025, which would contribute nearly US $180 billion to its economy.

Leading telecommunications companies across the continent are capitalizing on this demand opportunity—encouraged by initiatives to digitize education, healthcare, agricultural services, and governance—by preparing data centre projects they claim will rank among the largest and most environmentally friendly in the region.

In its 2024 sustainability report, Kenya’s major telecom firm, Safaricom, has detailed plans to build three Tier 3+ scale data centres as a component of its long-term vision to evolve from a telecommunications business to Africa’s foremost purpose-driven technology enterprise by 2030.

“The facility is equipped with a 200 kWp rooftop solar PV plant, with plans to scale up to 2MWp. Additionally, we are exploring partnerships with renewable energy producers to further enhance our commitment to sustainability,” according to the sustainability report.

In June, MTN Nigeria announced it was building a 1,500-rack, Tier 4 data centre to play a pivotal role in meeting the growing data demands and digital needs of businesses and consumers in the country.

In a LinkedIn post, Karl Olutokun Toriola, CEO, MTN Nigeria, said the facility will be the largest in West Africa upon completion and will enable the telco to respond swiftly to market demands and support businesses in Nigeria.

“Ultimately, this centre will play a vital role in supporting Nigerian businesses to collaborate through cloud services, expand their capabilities, and thrive,” said Toriola.

”Our commitment to Environmental, Social, and Governance (ESG) principles is reflected in the data centre’s eco-friendly design to utilize efficient cooling systems and a combination of traditional energy sources, gas, and renewable energy,” he added.

After launching a multi-million data centre business, Nxtra by Airtel, in December 2023 the telco broke ground in March to what it termed as one of Africa’s largest data centres in Lagos, Nigeria- with plans for more across the continent.

“Through this business we aim to create one of the largest networks of data centres in Africa with high-capacity facilities in major cities complementing our existing sites. We’re taking great care to incorporate modern energy efficiencies into our operations,” said Airtel Africa’s Sustainability Report 2024.

Africa Data Centres Association also affirms the expansion of industry due to the increasing demand for such facilities throughout the continent-citing Kenya, Morocco and South Africa as fast-growing markets- abeit with a huge infrastructure gap to fill in.

“Africa needs up to 1000 MW and 700 facilities to meet demand and bring capacity density on a par with that of South Africa, the region’s leader,” according to Data Centres in Africa focus report 2024.

Africa, the report shows accounted for less than 2% of global colocation Data Centres supply, with over half that total located in South Africa.

“The development of data centres is picking up pace due to strong demand from economic operators, as well as increasing awareness that African countries must establish their digital sovereignty in an increasingly competitive and complex world,” said Ayotunde Coker, chairman, Africa Data Centres Association.

Nigeria is listed in the data centres focus report as Africa’s largest digital economy with the internet contributing US$36.5 billion to its GDP, followed by South Africa(US$31.5 billion) and Egypt (US$26 billion).

Other large digital economies include Morocco(US$21.1 billion), Kenya(US$12.8 billion), and Algeria (US$11.9 billion).

Allied Market Research projects that the global market for DC provision will reach US$517.2 billion by 2030, up from an estimated of US$187.4 billion in 2020.

 

 


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Starlink Warns Against Grey Market Products

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Starlink, a global leader in satellite internet technology, has issued a caution to customers, advising against purchasing from unauthorized grey market products. Each Starlink kit is equipped with a unique serial number tailored to the country of activation.

Kits obtained from grey markets will not be activated, and any kits currently active outside their designated regions may face penalties, including potential service restrictions.

This advisory is to guarantee the quality, support, and compatibility needed for optimal performance users get from each kit.

According to a reliable source in Zimbabwe, there have been reports of buyers acquiring Starlink kits not intended for their specific countries.

Customers are strongly encouraged to purchase only from authorized distributors and retailers to ensure authenticity and functionality.

This measure is designed to uphold the integrity of Starlink’s operations and protect customers from fraudulent products and service interruptions.

As part of its mission, Starlink remains committed to expanding internet accessibility worldwide, especially in underserved and remote areas.

By delivering reliable, high-speed internet through its advanced satellite network, Starlink is bridging the digital divide and connecting communities across the globe.

To uphold this mission, Starlink maintains strict quality control and distribution practices, ensuring that each kit meets the requirements of its intended market.

Starlink encourages consumers to be vigilant and to purchase kits only from verified Starlink retailers and distributors to ensure seamless service.


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TikTok Founder, Zhang Yiming, 41 Becomes China’s Richest Man

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China has a new richest person and it’s the entrepreneur behind the app TikTok.

Zhang Yiming, 41, co-founder of TikTok’s parent company ByteDance, topped the 2024 Hurun China Rich List, released Tuesday, October 29.

His wealth reached $49.3 billion, as assessed by research, media and investment group Hurun Inc, which publishes the ranking of the country’s richest people.

Zhang’s ascendency comes after ByteDance’s global revenue grew 30% last year to $110 billion, Hurun said.

Since its official launch in May 2017, TikTok has been catapulted to mass global popularity as well as becoming an era-defining social media platform beloved by many young people around the world.

Zhang owns 20% of ByteDance, which he co-founded with college roommate Liang Rubo in Beijing in 2012. He stepped down as its CEO 2021 after building ByteDance into one of the biggest names in Chinese tech.

ByteDance also holds China’s popular news app Toutiao and Douyin, TikTok’s sister app in China.

Zhang’s rise to the top of the rich list knocked China’s “bottled water king” Zhong Shanshan out of the lead spot for the first time in three years, though he remained second.


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