MTN in Uganda has raised USD 100 Million for network expansion with Absa Capital as the lead arranger.

Stanbic Bank, Standard Chartered, Kenya Commercial Bank, Barclays, DFCU and Orient bank participated to raise the amount.  Isaac Nsereko, chief marketing officer of MTN Uganda confirmed the development to Reuters.

Uganda has a total of 6 telecom players: Uganda Telecom (UTL), Zain, Orange, Warid, I-Telecom and MTN. MTN is the largest with 60% market share and just under 5 million subscribers, according to Isaac Nsereko.

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I-Tel is all geared up to launch it’s CDMA services in Uganda this December. The operator promises the call tariffs to be as low as landlines, priced at nearly UGX 200 or less per minute. Currently, the lowest tariff in the market is offered by Warid Telecom of UGX 249 per minute.
“Our rates will be better and cheaper. Whatever you say, the cost of running CDMA are lower than any other technology network on the market regardless of interconnection fees charged,” says I-Tel’s sales and marketing manager, Ronald Kayemba.
According to I-Tel’s president Augustus Caesar Mulenga, the initial test calls have been successful and show the network already working in Kampala. With the time the network will spread across the nation.
I-Tel is entring a market that is undergoing a price war, wherein the tariffs are falling day by day, the low cost CDMA which caters to a lower consumer segment, will help in the growth of the operator.

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