Filmmaker cries censorship as Italy political documentary blocked

ROME (Reuters) – A British filmmaker said on Friday he was a victim of censorship after a leading museum cancelled the Italian premiere of the documentary “Girlfriend in a Coma”, which is highly critical of Italy‘s political and economic situation.

The museum where the film was to have been shown on February 13 cancelled the showing and said it could not be held until after the country’s elections on Feb 24-25.

Former Economist magazine editor Bill Emmott, who made the film with Italian Annalisa Piras, called the decision by the Museum of 21st Century Art (MAXXI) a product of “censorship and stupidity”.

MAXXI, run by a foundation overseen by the culture ministry, said it could not be host to activity that can be seen to have political connotations ahead of the elections.

“This is not censorship,” a spokesperson said. “After the elections, the film can be shown here.” The election date has been known for nearly two months.

Emmott was for 13 years the chief editor of the Economist magazine, which published covers highly critical of former prime minister Silvio Berlusconi, including a famous 2001 cover which read: “Why Silvio Berlusconi is Unfit to Lead Italy”.

“I am shocked. I would not have been shocked if this had happened during the government of my good friend Silvio Berlusconi, but the culture ministry doing this now is astonishing,” he told Reuters by telephone from Jamaica.

The MAXXI is run by a foundation which is funded by the culture ministry.

The film, which has already shown in New York, Miami, Brussels and London, paints a picture of what the authors say is the country’s moral, social and economic decline over the past 20 years since Berlusconi came to power.

“What this decision reflects is a very cautious mentality that wants to hide the reality of the situation of Italy and seeks to stifle debate about the causes because they might be too revealing,” Emmott said.

The film addresses political corruption, media monopoly and corporate power. Among those interviewed are caretaker Prime Minister Mario Monti, filmmaker Mario Moretti, anti-Mafia writer Roberto Saviano, Fiat CEO Sergio Marchionne, former European Commissioner Emma Bonino and author Umberto Eco.

Emmott said he and the producers would lodge a protest with the culture ministry.

“If it is not shown at the MAXXI, we will arrange for it to be shown somewhere else,” he said.

(Reporting By Philip Pullella, additional reporting by Alberto Sisto; Editing by Stephen Powell)

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Ferrol Sams, Doctor Turned Novelist, Dies at 90

Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.

The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”

“He lived a full life,” his son said. “He didn’t leave anything in the tank.”

Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.

When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.

“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”

In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”

He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”

Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.

Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.

Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.

Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.

“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”

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Chicago beer firm Crown Imports is caught in antitrust fight

An antitrust brouhaha in Washington has thrown the future of Crown Imports, a Chicago-based beer importer, into question.

The company, which ranks third in U.S. beer sales volume, is a joint venture between New York-based Constellation Brands Inc. and Mexico's Grupo Modelo, which makes Corona Extra, the leading imported beer in the U.S., and other brands. Crown sells Modelo brands as well as China's Tsingtao.

As part of its proposed sale to Anheuser-Busch InBev, Grupo Modelo agreed to sell its 50 percent stake in Crown to Constellation Brands for $1.85 billion. The separate transaction was meant to ease possible antitrust concerns that the merger would eliminate Crown Imports as a competitor.

But on Thursday the U.S. Department of Justice filed an antitrust suit against AB InBev to block its acquisition of Grupo Modelo. Antitrust officials said the merger would further increase the concentration of the U.S. beer market, leading to higher prices for American consumers.

The lawsuit said the sale of Modelo's interest in Crown Imports to its partner would only create "a facade of competition" between AB InBev and the importer.

"In reality, Defendants' proposed 'remedy' eliminates from the market Modelo — a particularly aggressive competitor — and replaces it with an entity wholly dependent on ABI," the Justice Department said in the lawsuit.

The suits cites as evidence part of an internal memo that Crown's chief executive, Bill Hackett, wrote to employees after the transactions were announced in June. According to the suit, Hackett wrote, "Our #1 competitor will now be our supplier ... it is not currently or will not, going forward, be 'business as usual.'"

Under the terms of the proposed merger with Modelo, AB InBev also had the option to terminate its agreement with Crown Imports after 10 years, giving it full control of Corona distribution.

Constellation Brands on Friday attacked the Justice Department, saying in a statement that the suit "demonstrates its incomplete understanding" of the proposed merger. Constellation and AB InBev have indicated that they plan to challenge the suit.

In a detailed defense, Constellation said its full control of Crown would improve competition, not harm it. According to the lawsuit, Modelo controls about 7 percent of U.S. beer sales, far behind AB InBev's market-leading 39 percent.

Constellation attempted to ease concerns that AB InBev's merger with Modelo would lead to higher prices. Hackett said in a statement: "Our Crown team independently develops, implements and refines pricing, promotional and sales strategies for each of our brands in the U.S."

The proposed beer merger had reduced uncertainty hanging over Crown Imports because the Modelo-Constellation joint venture was set to expire at the end of 2016. The Justice Department action creates a new level of uncertainty, said Benj Steinman, president of Beer Marketer's Insights, a beer industry trade publication.

"Crown's fate is hanging in the balance," Steinman said.

asachdev@tribune.com

Twitter@ameetsachdev

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Reward at $24K for info leading to arrest in shooting of teen

The best friend of Hadiya Pendleton talks about the moments before her friend was shot in Chicago on January 31, 2013. (Heather Charles, Chicago Tribune)

The sixth-grader can barely keep from smiling, self-conscious in front of the camera as she delivers a very serious message.

"Hi, my name is Hadiya. This commercial is informational for you and your future children," she begins. "So many children out there are in gangs and it's your job as students to say no to gangs and yes to a great future."

The video then shows shots of a boy slumped in a stairwell, another boy sprawled against a locker, a girl lying on the floor against a wall as a classmate next to Hadiya says, "So many children in the world have died from gang violence. More than 500 children have died from being in the wrong place at the wrong time."

Four years after Hadiya Pendleton made that public service video at Carter G. Woodson Elementary School, police are saying the same thing about her.

Hadiya had just finished her final exams at King Prep High School, where she was a sophomore, and was hanging out with friends from the school's volleyball team when she was gunned down in a park in the 4400 block of South Oakenwald Avenue. Thursday afternoon, police announced the reward for information leading to an arrest in the shooting had increased to $24,000, up from $11,000 announced Wednesday.

Hadiya and the others had sought shelter from a rainstorm under a canopy at the park around 2:20 p.m. Tuesday when a gunman jumped a fence, ran toward them and opened fire, police said.

As the teens scattered, Hadiya and two teenage boys were shot. Hadiya was hit in the back and pronounced dead at Comer Children's Hospital less than an hour after the shooting. The wounds suffered by the boys were not life-threatening.

Police Superintendent Garry McCarthy stressed that neither Hadiya nor anyone in the group she was with were involved with gangs. But it appears the gunman mistook the students for members of a rival gang, he said. The shooter was last seen fleeing in a white Nissan.

“These were good kids by everything that I learned," McCarthy said at a Wednesday news conference, where a reward of $11,000 was announced. "Wrong place at the wrong time.”

Friday morning, that reward has been increased to $30,000, according to a statement from police News Affairs.

Pastor Courtney Maxwell, the family’s pastor, has offered $6,000, increasing the reward to $30,000, according to the statement, which said Maxwell has called a press conference at Harsh Park at 11:45 a.m. 

Hadiya was shot a little more than a week after performing with the King College Prep band in Washington during President Barack Obama's inauguration festivities. The shooting occurred in a park about a mile north of Obama's Kenwood home.

The shooting has drawn the attention of both the White House, which is pushing for national gun control, and City Hall as Chicago closes on a violent January. Hadiya was the 42nd homicide victim this year in the city, where killings last year climbed above 500.

Hadiya's father, Nathaniel Pendleton, pleaded for someone to step forward and bring the 15-year-old's killer to justice.

"She was destined for great things," he said.

Hadiya was a majorette with the band at King, one of the city's elite selective-enrollment schools. She dreamed of going to Northwestern University and talked about becoming a pharmacist or a journalist, maybe a lawyer.

Police have reported no arrests.

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How I learned to stop worrying and love Twitter

Is anything more uniquely American than our free-wheeling, 140-character missives?

Twitter is dead, you guys. Writers used to send pithy tweets across cyberspace, borne on the golden wings of Hermes. Now, as T.S. Eliot would say, “Our dried voices, when we whisper together are quiet and meaningless.” Twitter is so uncool, that even if we resurrected the spirits of Jim Morrison and Jimi Hendrix and got them to tweet never-before-heard song lyrics from the grave, they would have like, 20 followers, tops. And most of them would be spambots. Do you know what else is dead? Rock and roll. When I put on the Dead Weather or Jay-Z, my parents inform me that music used to be all about free love and sharing ideas and now, “Will you turn off that crap you’re hurting my ears.” There is no cool left for me. I must survive on the vapors of Lady Gaga‘s strange perfume and the shiny white veneer of Kim Kardashian‘s teeth. But it’s okay, it’s not like I can tell the difference.

Hi. I’m a twenty-something journalist. And unlike my colleague Matt K. Lewis, I like Twitter.

SEE MORE: Introducing Vine: Twitter’s 6-second video-sharing app

Now, I can see where Matt is coming from. The popularity of Twitter used to befuddle me. When I was in college, I had a private account (rookie mistake) and only followed my friends. My feed read something like an episode of Girls, except with more substance-abuse problems. Twitter did seem kinda like high school, and, as Matt says, was more prison than vision (although to this day, I love a good nonsensical midnight Twitter ramble. And Horse E-Books.) But a couple years later, once I was a working journalist, I started following an increasingly diverse set of people. And another cool thing happened: The Arab Spring. Citizen activists in countries like Egypt, Libya, and Yemen successfully organized revolutionary protests through the social network, and all of a sudden, I stopped viewing Twitter as a place where people just talked about their hangovers. 

Since then, I have been tasked with tweeting from the official accounts of several media organizations — I’m kind of a professional tweeter. By the end of today, I (and my colleagues) will have written and sent out about 70 tweets for Mother Jones — tweets that are (hopefully) informative, spelled correctly, promote our content, match the tone of the publication, and don’t accidentally include cat gifs or naked pictures. If anything should make one despise Twitter, it’s being required to tweet all day long. But instead, it’s only made me more fond of the damn thing.

SEE MORE: 10 famous first tweets from the Pope, Barack Obama, the Dalai Lama, and more

Every day, I get to hear from people, REAL LIVE PEOPLE, who are exercising their free speech rights about something my colleagues and I wrote with our free speech rights. How cool is that? What could be more American than a bunch of strangers conversing in real time about whether the Boy Scouts can constitutionally ban gay members, that great Local Natives album that just came out, and who is really the communist here? (Okay, fine. It’s me.) 

Another point in Twitter’s favor: Go to Facebook or (God forbid) the homepages of various news organizations, and you’re never going to easily or quickly find as many live updates of Hurricane Sandy, the Sandy Hook school shooting, or the 2012 presidential election as you would on Twitter. It’s the go-to place for lightning-quick, easily searchable information. (By contrast, if you need a live update of which color mason jars you should have at your wedding someday, Pinterest has so got you covered.)  

SEE MORE: Why I love Twitter

And unlike journalists exhausted by the troll-y nature of the beast, I like the free-wheeling accessibility of Twitter. The quality of my interactions are mostly positive, probably because I tend to only follow people I would be interested in speaking with in the real world. And just like the real world, sometimes some crazy guy who smells like whiskey and is probably on PCP will try to flash me on the Metro. But that just makes it kind of exciting, right? 

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Roseanne Barr to Star in, Produce New Series for NBC

NEW YORK (TheWrap.com) – NBC is betting on the up-again-down-again Roseanne Barr, signing the television icon to an overall deal that calls for her to develop a show she will star in and produce for the network. She will executive produce the series with Steven Greener, with whom she collaborated on “Roseanne’s Nuts” for Lifetime.

As part of the deal, Barr also will guest star in a three-episode arc on NBC’s “The Office” as talent agent Carla Fern. She will help Andy Bernard (Ed Helms) pursue the career in show business he has always dreamed about. That arc begins filming this week.

Barr came close to scoring a new show with NBC just a year ago. The network picked up her “Downwardly Mobile” to pilot last January but never ordered it to series. A multi-camera comedy starring Barr as a trailer park operator, it would have re-teamed her with “Roseanne” co-star John Goodman.

“Roseanne” aired on ABC for close to a decade, and was one of the top TV shows in the country for most of those years, winning her an Emmy and a Golden Globe. TV Guide named it one of the 50 greatest TV shows of all time in 2002, and it helped turn Barr, at its inception a stand-up comedian, into a TV star.

In the show’s final year, she tried to launch a Roseanne Conner spin-off, but wasn’t able to pull it off. She then segued into her own talk show, which lasted two years, before returning to stand-up comedy and taking assorted TV and film roles, making her big-screen debut in 1989s “She-Devil” with Meryl Streep.

In 1990 she performed a controversial, loud and screechy “Star-Spangled Banner” before a baseball game between the San Diego Padres and the Cincinnati Reds.’

She is represented by Paradigm.

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The New Old Age: Caregiving, Laced With Humor

“My grandmother, she’s not a normal person. She’s like a character when she speaks. Every day she’s playing like she’s an actress.”

These are words of love, and they come from Sacha Goldberger, a French photographer who has turned his grandmother, 93-year-old Frederika Goldberger, into a minor European celebrity.

In the photos, you can see the qualities grandson and grandmother have in common: a wicked sense of humor, an utter lack of pretension and a keen taste for theatricality and the absurd.

This isn’t an ordinary caregiving relationship, not by a long shot. But Sacha, 44 years old and unmarried, is deeply devoted to this spirited older relation who has played the role of Mamika (“my little grandmother,” translated from her native Hungarian) in two of his books and a photography exhibition currently underway in Paris.

As for Frederika, “I like everything that my grandson does,” she said in a recent Skype conversation from her apartment, which also serves as Sacha’s office. “I hate not to do anything. Here, with my grandson, I have the feeling I am doing something.”

Their unusual collaboration began after Frederika retired from her career as a textile consultant at age 80 and fell into a funk.

“I was very depressed because I lived for working,” she told me in our Skype conversation.

Sacha had long dreamed of creating what he calls a “Woody Allen-like Web site with a French Jewish humor” and he had an inspiration. What if he took one of the pillars of that type of humor, a French man’s relationship with his mother and grandmother, and asked Frederika to play along with some oddball ideas?

This Budapest-born baroness, whose family had owned the largest textile factory in Hungary before World War II, was a natural in front of the camera, assuming a straight-faced, imperturbable comic attitude whether donning a motorcycle helmet and goggles, polishing her fingernails with a gherkin, wearing giant flippers on the beach, lighting up a banana, or dressed up as a Christmas tree with a golden star on her head. (All these photos and more appear in “Mamika: My Mighty Little Grandmother,” published in the United States last year.)

“It was like a game for us, deciding what crazy thing we were going to do next, how we were going to keep people from being bored,” said Sacha, who traces his close relationship with his grandmother to age 14, when she taught him how to drive and often picked him up at school. “Making pictures was a very good excuse to spend time together.”

“He thought it was very funny to put a costume on me,” said Frederika. “And I liked it.”

People responded enthusiastically, and before long Sacha had cooked up what ended up becoming the most popular character role for Frederika: Super Mamika, outfitted in a body-hugging costume, tights, a motorcycle helmet and a flowing cape.

His grandmother was a super hero of sorts, because she had helped save 10 people from the Nazis during World War II, said Sacha. He also traced inspiration to Stan Lee, a Jewish artist who created the X-Men, The Hulk and the Fantastic Four for Marvel comics. “I wanted to ask what happens to these super heroes when they get old in these photographs with my grandmother.”

Lest this seem a bit trivial to readers of this blog, consider this passage from Sacha’s introduction to “Mamika: My Might Little Grandmother”:

In a society where youth is the supreme value; where wrinkles have to be camouflaged; where old people are hidden as soon as they become cumbersome, where, for lack of time or desire, it is easier to put our elders in hospices rather than take care of them, I wanted to show that happiness in aging was also possible.

In our Skype conversation, Sacha confessed to anxiety about losing his grandmother, and said, “I always was very worried about what would happen if my grandmother disappeared. Because she is exceptional.”

“I am not normal,” Frederika piped up at his side, her face deeply wrinkled, her short hair beautifully coiffed, seemingly very satisfied with herself.

“So, making these pictures to me is the best thing that could happen,” Sacha continued, “because now my grandma is immortal and it seems everyone knows her. I am giving to everybody in the world a bit of my grandma.”

This wonderful expression of caring and creativity has expanded my view of intergenerational relations in this new old age. What about you?

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Jobless rate climbs to 7.9% in January

U.S. job growth grew modestly in January and gains in the prior two months were bigger than initially reported, supporting views the economy's sluggish recovery was on track despite a surprise contraction in output in the final three months of 2012.

Employers added 157,000 jobs to their payrolls last month, the Labor Department said on Friday. There were 127,000 more jobs created in November and December than previously reported.

The unemployment rate, however, edged up 0.1 percentage point to 7.9 percent.

The closely watched report also showed an increase in hourly earnings and solid gains in construction and retail employment.

Coming on the heels of data on Wednesday showing a surprise contraction in gross domestic product in the fourth quarter, that should ease any worries the economy was at risk of recession, even though the unemployment rate ticked up.

GDP contracted at a 0.1 percent annual rate in the fourth quarter, largely because of a sharp slowdown in the pace of inventory accumulation and a plunge in defense spending.

A monster storm that hit the East Coast in late October also weighed on output, a drag that should lift this quarter.

Federal Reserve officials said on Wednesday that economic activity had “paused,” but they signaled optimism the recovery would regain speed with continued monetary policy support. The Fed left in place a monthly $85 billion bond-buying stimulus plan.

Economists polled by Reuters had expected employers to add 160,000 jobs and the unemployment rate to hold steady at 7.8 percent last month.

The Labor Department also published benchmark revisions to payrolls data going back to 2008. It said the employment level in March 2012 was 422,000 higher on a seasonally adjusted basis than previously reported.

It also introduced new population factors for its survey of households from which the unemployment rate is calculated. This had a negligible effect on the major household survey measures.

MODEST JOB GROWTH

Job growth in 2012 averaged 181,000 a month, but not enough to significantly reduce unemployment. Economists say employment gains in excess of 250,000 a month over a sustained period are needed.

Though the unemployment rate dropped from a peak of 10 percent in October 2009, that was mostly because some unemployed Americans gave up the search for work because of weak job prospects.

The share of the working age population with a job has been below 60 percent for almost four years.

All the job gains in January were in the private sector, where hiring was as broad-based as it was in December and declines in public sector employment remained moderate.

Steady job gains could help the economy weather the headwinds of higher taxes and government spending cuts. A payroll tax cut expired on Jan. 1 and big automatic spending cuts are set to take hold in March unless Congress acts.

The goods-producing sector showed a third month of solid gains, with manufacturing employment advancing for a fourth straight month. Construction payrolls increased 28,000, adding to December's healthy 30,000 gain.

Construction jobs are expected to rise further as the housing market recovery gains momentum. Housing is expected to support the economy this year, taking over the baton from manufacturing.

Within the vast private services sector, retail jobs increased by a solid 32,600 jobs after rising 11,200 in December. Retail employment has now risen for seven straight months. Education and health payrolls added 25,000 jobs in January after employment grew by the most in 10 months in December.

Government payrolls dropped by 9,000 last month after falling 6,000 in December. The pace is moderating as local government layoffs, outside education, subside.

Average hourly earnings rose four cents last month. Hourly earnings have been rising steadily. They were up 2.1 percent in the 12 months through January.

“It may be that we are now getting to a point in the labor market where we are going to see an upward creep in average hourly earnings,” said RDQ Economics' Ryding, chief economist at RDQ Economics in New York.

“That's going to be good for the consumer and they need help because they are being whacked by the payrolls tax increase,” he said before the release of the report.

The length of the workweek for the average worker was steady at 34.4 hours for a third straight month.
 

US Change in Nonfarm Payrolls data by YCharts

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80 fire departments battle 8-alarm blaze in Wisconsin

Emergency officials are on the scene of a 5 alarm fire at a plant in Burlington Wisconsin.

By Peter Nickeas




Tribune reporter

8:05 a.m. CST, January 31, 2013

More than 300 firefighters and paramedics from 80 departments across two states battled an 8-alarm fire overnight at Echo Lake Farms Produce Company in Burlington, Wis.

The fire broke out about 6:05 p.m. Wednesday was still smoldering this morning, with firefighters pouring water on hot spots, officials said.

“As of right now, we have departments from Racine to Milwaukee and Waukesha and Kenosha counties, and some from northern Illinois,” said Burlington City Administrator Kevin Lahner.

The factory processes egg products, Lahner said. There was some “ammonia present” and a hazardous materials team from Racine was monitoring air quality around the site.

Ten homes and an apartment complex nearby were evacuated because of smoke, Lahner said, displacing about 50 people.

Fireghters were regularly checked for symptoms of cold exposure because of the frigid temperatures, Lahner said.

The plant covers about 70,000 square feet and is one of the town's largest employers, according to Lahner. The plant's 300 workers were told to stay home today.

pnickeas@tribune.com
Twitter: @peternickeas

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Telecoms boom leaves rural Africa behind

JOHANNESBURG/FREETOWN (Reuters) – While mobile phone usage has exploded across Africa over the last decade, transforming daily life and commerce for millions, it’s a revolution that has left behind perhaps two thirds of its people.

Poor or no reception outside the towns helps explain why the continent’s mobile penetration, in terms of the percentage of the population using the service, is far lower than previously thought, and the cost of providing that service to impoverished, sparsely populated areas remains prohibitive.

In rural Sierra Leone, a country where GDP per capita is less than $ 400 a year, money doesn’t grow on trees, but mobile reception can, says street trader Abass Bangura in Freetown, the West African country’s capital.

In parts of Tonkolili, a district in the center of the country, or Kailahun to the east, it’s the only way you can get reception, he said.

“You climb stick, like mango tree, before you have network,” he said.

In South Sudan, the world’s newest state, it’s a similar story. Less than a year old, the country already has five mobile operators, and its capital, Juba, is teeming with giant billboards advertising mobile phones, but go just a few kilometers beyond a handful of fast-growing towns, and cell phones become useless.

Multiple SIM cards help users navigate patchy network coverage and take advantage of price promotions from rival operators.

That is typical of much of the continent.

With a population of just over a billion people, Africa has over 700 million SIM cards, but with most users owning at least two cards, penetration is only about 33 percent, according to a study released in November by industry research firm Wireless Intelligence.

“If we look at the fact that the rural population of Africa is about 60-70 percent of the population, and if we look at the degree of penetration into the rural market, it’s very, very low,” said Spiwe Chireka of advisory firm IDC.

In Nigeria, Africa’s most populous country, there are more than enough SIM cards for everyone, but penetration is only 61 percent, according to a 2012 study by research firm Informa.

The average mobile phone user in Nigeria owns an average of 2.39 SIM cards. Globally, only Indonesia is higher, with an average of 2.62 SIM cards per user.

Even in Africa’s biggest economy, South Africa, SIM numbers comfortably exceed the population, but given the number of people using multiple devices, actual population penetration is closer to 80 percent, says market leader Vodacom.

“You’ve got a lot of people buying SIMs, but maybe not enough phones to put it in,” said Olayemi Jinadu, an executive with the Sierra Leone arm of Indian telco Bharti Airtel.

COST VERSUS BENEFIT

The unserved rural millions could represent another growth opportunity for Africa-focused telcos like South Africa’s MTN Group, Bharti Airtel and Kuwait’s Zain, but first they have to figure out a cost-effective way to push into sub-Saharan Africa’s remote corners.

“There’s great potential, but the big concern for us is operational costs,” said Andre Claasson, chief operating officer at Zain South Sudan.

In rural Africa, the cost of running a network tower often exceeds the revenue it reaps. Fuel is typically about 40 percent of a tower’s operating cost, and in remote areas companies burn more diesel by bringing fuel to towers than is used powering them.

Although roughly 73 percent of Africa’s land has cell phone coverage, according to market research firm IDC, that still leaves vast tracts of rural Africa without network access.

Africa has 170,000 mobile towers now and needs another 60,000, according to tower company IHS Group, which at an average $ 200,000 each means an outlay of $ 12 billion.

“If you are an operator asked to spend $ 200,000 to build a site and another $ 2,000 a month to run it in an area with 500 people herding cows, it doesn’t make sense,” said Issam Darwish, IHS’s chief executive.

Average revenue per user is also low. It can vary between $ 1 and $ 10 per month, much lower than in developed markets such as the United States, which delivered ARPU of $ 51 in 2012 or Britain, $ 27.

Bharti, sub-Saharan Africa’s third-largest telecom group, says it makes $ 6.40 per user in Africa, which is higher than its home Indian market, where it makes only $ 3.30 a month, but the cost of operating in Africa is much higher and there isn’t a comparable middle class ready and able to spend more.

“You either have a handful of people in the affluent part of the society or you have lots of people who can’t afford the services,” its Chairman Sunil Mittal said last year.

Operators can save money by sharing towers, but even then, some sites will never make sense without government subsidies, analysts say.

African expansion has not been cheap for telcos. Over the past five years, mobile operators have spent a combined $ 16.5 billion on capital expenditure in the key markets of South Africa, Nigeria, Kenya, Senegal and Ghana, according to Wireless Intelligence.

Bharti has earmarked $ 1.5 billion for capex this year, while fourth-placed France Telecom is spending $ 9.3 billion between 2010 and 2015.

Spare cash is increasingly rare for debt-strapped European telecoms operators, which are cutting their dividends to cope with falling revenues and network upgrade costs in their home markets.

Some African regulators have set up funds to promote coverage, to which operators are expected to contribute.

In Sierra Leone, the Universal Access Development Fund (UADF) is yet to subsidize the cost of putting up a single mast, though it has been active for several years. The regulator complains networks do not contribute the fees they should.

“If we can’t subsidize, they’ll never erect towers there,” said Bashir Kamara, Project Manager at UADF.

($ 1 = 0.6350 British pounds)

(Additional reporting by Hereward Holland in Juba and Chijioke Ohuocha in Lagos; Editing by David Dolan and Will Waterman)

Tech News Headlines – Yahoo! News

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