Essar's Ugandan Discussions Result in a Mobile License

India's Essar Group has won a license to build a mobile network in Uganda, reports local media. The subsidiary company, Essar Teleholdings will own 90% of the Ugandan company - and already has a mobile operator license in Kenya.

"We have paid $3 million for frequency charges to the Uganda Communication Commission and will launch the service in August in a joint venture with Kenyan Telecom Uganda Ltd, a local telecom company," Srinivasa Iyengar, managing director of Essar Telecom Kenya told the Live Mint newspaper.

The company plans an initial investment of US$200 million.

Based on figures from the Mobile World analysts, the country ended last year with around 8.5 million subscribers (although that has since passed 9 million), which represents a population penetration level of 28%. A recent report from Pyramid Research suggested that the country could reach 27 million subscriptions by 2014. Last month, the regulator delayed plans for Mobile Number Portability until the country has passed the 10 million mark.

Essar Teleholdings has also decided to bid for licenses in Tanzania, Congo and Cameroon, the paper added, along with participating in the privatisation of Zambia's Zamtel.

On the web: Mobile World - Live Mint

Posted to the site on 1st June 2009