Tigo to Invest US$70mn-80mn in 2008

Paraguayan mobile operator Telecel plans to invest US$70mn-80mn in 2008 in infrastructure of its GSM service that operates under the Tigo brand, newspaper Última Hora reported.

Telecel, which is controlled by Luxembourg-based mobile holdings group Millicom International Cellular, said the investment would be mainly earmarked for improving quality of service as well as expanding network coverage.

Tigo currently has 1.3mn subscribers and expects a monthly growth rate of 5-10%, according to the company's recently appointed CEO Gloria Ortega.

Other operators in the market are Hola, which is backed by Japanese investors, Telecom Argentina's (NYSE: TEO) unit Personal and Mexican giant América Móvil's (NYSE: AMX) unit CTI Móvil.

Mobile telephony operators in the country posted revenues of US$345mn in 2006, up 37.1% compared to 2005, local press recently reported, citing data from Paraguay's economy ministry."

Posted to the site on 30th March 2007