Movitel is planning to invest up to US$465 million in its network over the next five years. The company is also planning to invest some US$120 million of the total investment in the first year to get the network launched.

Movitel is a consortium made up of Vietnamese company Viettel Telecom (70%) and Mozambique’s SPI (30%), a company that is linked to the government.

Although Movitel was not the highest bidder for the license, when it offered US$28 million, the regulator stated that it came highest in the technical assessment. The license was granted last November.

According to reports, the country ended June 2010 with around 6.77 million subscribers, representing a population penetration level of 32.7%. mCel is the dominant operator, with a market share of 65% – compared to 35% for rival, Vodacom. Plans by the government to sell a small stake in Mo§ambique Celular (mCel) have been discussed in the past, but no progress has been made so far.

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­Ceragon Networks has won a turnkey backhaul contract from Mozambique’s Mobile Cellular (mcel). Ceragon’s solutions will form a microwave backbone link that joins the central part of Mozambique to the southern part, from the city of Beira to the capital city of Maputo. The Ceragon microwave network will span 1000 km when completed.

According to Mr. Arlindo Mondlane, mcel CTO, delivering reliable mobile service to customers is extremely important to mcel. The company has selected Ceragon’s products because they are technologically superior, use spectrum efficiently, and are highly reliable. Through careful network planning, mcel will be able to provide high-quality mobile service to their customers as cost-efficiently and as quickly as possible.

According to Ira Palti, President and CEO of Ceragon, Ceragon’s microwave systems are practical and economical alternatives to fiber optic lines and are highly reliable point-to-point backbone transmission systems. Ceragon solutions are ideal for fast-growing mobile networks such as mcel’s, scaling to meet future needs, and offering high reliability to customers in developing countries.