Malawi Operator Plans $28 Million Rural Expansion

Malawi based mobile operator, (Telekom Networks Malawi) TNM has announced that it has set aside $28-million to upgrade its network and expand coverage in rural areas. The move follows an announcement by rival operator, Celtel Malawi last month to spend US$90 million on expanding its network over the next year.

last October, Malawi Information and Civic Education Minister Patricia Kaliati warned that the government would revoke the telecom operator licences if they didn't expand their coverage to rural areas.

Celtel is the larger of the two networks operating in Malawi, and according to figures from the Mobile World database, ended last year with 654,000 subscribers which represents a market share of 60%. The country itself however had a population penetration level of just over 8%.

The Malawi telecoms regulator, Macra also recently started advertising for a fourth mobile phone operator, even though the license for the 3rd operator has still not been allocated. MalawiĆ's Minister of Information and Civic Education, Patricia Kaliati said that the country needs more competition in the phone market to drive down prices and improve rural coverage. She also said that the outstanding 3rd license would be granted once a new board is elected to manage the regulator.

Posted to the site on 18th July 2008