New Mobile Phone Company Licensed

2006-12-10 06:57:45 | Viewed 2222 times

THE Uganda Communications Commission (UCC) has awarded the local arm of Abu Dhabi-based Warid Telecom a license to provide mobile phone services.

The company will become the fourth mobile phone network operator in Uganda and it is expected that the new entrant will force mobile phone service prices down.

A certificate issued by the UCC read, "This is to certify that Warid Telecom Uganda Ltd is licensed to provide voice and data services from November 22, 2006 through to November 21, 2007."

Warid backed by an Abu Dhabi-based investment group will commit up to $200m to set up a mobile phone operator by next August, the group's boss said recently.

"Before operations begin, we will have spent $150 to $200m.

"This is my guess but it could be more," said the Dhabi Group's chief executive Bashir Ahmad Tahir.

The network is being planned for 1.5 million subscribers with a projected increase to four million subscribers in three to five years.

Currently, there are about 2.5 million mobile phone subscribers shared between MTN, Celtel and uganda telecom, a number that has been built over the last 12 years.

Tahir said his group's experience in Pakistan and Bangladesh shows that there is still a lot of space for growth in the Ugandan market.

"We promise quality at the right price," he said.

"When we launched in Pakistan in June last year, we underestimated demand and now a year later, we have seven million subscribers, the fastest rollout by a mobile phone operator anywhere in the world.

"In Uganda, we are not going to make that mistake. We are going to begin with extra capacity, " he said.

In July, the UCC lifted the duopoly for network operator that was held by MTN and uganda telecom effectively opening up the sector to new investors.

The Dhabi Group also has plans to spend $400m to open a branch of their Bank Al Falah in Uganda, invest in a pharmaceutical plant and real estate.

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