Tigo expands network coverage to new districts
Millicom Rwanda, which provides mobile services under the Tigo, has reportedly widened its network track to a further ten districts. Services are now available in Bugesera, Gatsibo, Gicumbi, Gisagara, Huye, Kamonyi, Nyaruguru, Rubavu, Rutsiro and Rwamagana.
The operator has also enhanced coverage in areas already covered by its network, including Gasabo. Under the company’s mobile license awarded in November 2008 Millicom is committed to covering at least 80% of the population by the end of the year.
According to reports, Millicom became the country’s third mobile operator when it launched commercial services in November 2009. Just under a year later, at 30 September 2010 the company had signed up just over 548,000 customers, placing it second in the market behind MTN Rwanda with 2.39 million users, and just ahead of Rwandatel (535,710).
Vodacom eyes at Africa
Vodacom Group Ltd. is planning to expand its footprint in Africa. According to Chief Executive Officer, Pieter Uys, growth opportunities in Africa, outside the mobile-phone company’s South African home market, have whetted his appetite for acquisitions.
According to Uys, the first quarterly growth in Vodacom’s international operations after five consecutive quarters of negative growth and the appointment of Johan Dennelind from Dec. 1 as manager for the operations will give Uys more time to consider strategies for expansion. He is deliberately in the last 12 months did not focus on expansion. If the opportunity came the company would have looked at it, and they did look at Zain, but the company did not send out a whole troop of people around the continent, he focused on turning around existing business outside South Africa.
Vodacom, majority owned by Vodafone Group Plc, would be seeking to expand as intensifying competition from multiple providers of mobile-phone services pulls down prices. That’s forcing companies to develop in new markets and find more growth engines.
As per the CEO, the competitive environment has changed dramatically. Vodacom’s unit in Tanzania took 12 months to reorganize to compete with Bharti Airtel Ltd. and Millicom International Cellular SA, which operate under the brand names Zain and Tigo respectively. Tariffs have been cut by as much as 90% in the past 15 to 18 months.
Tariffs were US$0.06 a second about 15 months ago, it is now a dollar or below a dollar a second. Tanzania is the largest of Vodacom’s operations outside of its home market of South Africa.
Une-EPM wins 2500MHz-2690MHz spectrum (Mexico)
www.WirelessFederation.com/news: The tender for mobile spectrum in the 2500MHz-2690MHz frequency band has been won by Une-EPM Telecomunicaciones. The license is valid for ten years and can be expanded by an additional period of ten years.
According to the company, it will use the spectrum to deploy Long Term Evolution (LTE), putting it head-to-head with established cellcos Comcel, Movistar and Tigo. COP8 billion (USD4.05 million) will be paid by Une for each of the ten spectrum blocks of 5MHz it has won.
Une plans an investment of around COP150 billion in the new project and launch mobile services in the first half of 2011.
Tigo’s mobile TV services launched in Colombia
www.WirelessFederation.com/news: The mobile TV services of Colombian mobile operator Tigo have been launched. Discovery Mobile, Discovery Kids, Nickelodeon, Tooncast and Cartoon Network channels could be accessed by the subscribers directly on their mobile phones through this service.
By sending a text message with the word ‘dia’ to a special short number, Tigo customers can easily subscribe to the new service.
COP 3,900 per day will be charged by Tigo Mobile TV users and the service is available for prepay as well as postpaid Tigo customers.
Telefonica purchase of ETB raises questions (Colombia)
www.WirelessFederation.com/news: Several market implications might arise with the potential purchase of Colombian telecoms operator ETB by Telefonica as ETB also owns 25% of mobile operator Tigo.
Tigo which is controlled by Luxembourg-based mobile group Millicom International Cellular had 4.19 million subscribers at the end of the year while Telefonica operating under the Movistar brand had 8.96 million subscribers at the end of 2009. When combined, the total subscriber base of the company will become 13.2 million, making it a distant second from America Movil’s Comcel, which ended the year with 28.8 million subscribers.
The merger will also result into four million fixed line subscribers and 1 million internet customers of Telefonica. Telefonica might also sell its stake in Tigo after which the other two shareholders, UNE-EPM with a 25% stake and Millicom with 50%, would have the right of first refusal.
EUR700 million (USD962 million) would be invested by Telefonica to acquire a controlling stake in ETB. 86.59% of ETB is currently controlled by the Bogota municipality and minority shareholders have the remainder. In order to improve its situation in the highly competitive telecom market, a partner is needed by ETB. The telco plans to sell new shares, equivalent to a 36.6% stake.
Etisalat’s Sri Lankan operation begins
www.WirelessFederation.com/news: After acquiring 100% stake in Tigo mobile firm, UAE operator Etisalat has launched its operations in Colombo, Sri Lanka, targeting 1 million customers by the end of the year. A subsidiary of Millicom International Cellular, Tigo was bought at an enterprise value of USD 207 million.
HSPA+ on the network is expected with a connectivity speed of 28 Mbps, on par with the company’s operations worldwide.
According to Etisalat Lanka CEO Dumindra Ratnayaka, within one year, the company will be rolling out 1,500 2G base stations and 500 3G base stations islandwide. Etisalat will be launching its coverage in Jaffna during the mini Infotel exhibitions scheduled to take place there on 26 February
Helios Towers Ghana to buy 750 towers of Tigo
www.WirelessFederation.com/news: Millicom Ghana (Tigo), a Ghanaian subsidiary of Millicom International Cellular (MIC) has decided to sell around 750 towers to Helios Towers Ghana (HTG), a direct subsidiary of Helios Towers Africa. Tigo will continue to retain a minority interest in HTG after the completion of the deal.
A long-term leasing agreement has also been signed between the two companies whereby the HTG will provide the cellco with wireless communications towers, including a build-to-suit agreement to support the company’s wireless networks
Bharti Airtel considering bid for Millicom SL
Bharti Airtel CEO, Manoj Kohli told reporters in India that Airtel may bid for Millicom’s Sri Lankan operation. Bharti already operates in SL.
Wireless Federation had earlier reported that Millicom/Tigo Laos has been sold to Russia’s Vimpelcom.
Bharti is actively considering acquisitions in Africa and the world over after the talks with MTN collapsed.
Bharti group CEO Sunil Mittal has said that the company won’t engage in dialogue with MTN for a third time, after inconclusive talks twice.
Nasdaq-listed Millicom provides prepaid cellular telephony services to over 30 million customers in 16 emerging markets in Latin America, Africa and Asia.
Asked if Bharti Airtel was also interested in Kuwait’s Zain Telecom, Kohli said they will continue to explore international acquisitions. (Airtel-Zain, See Here)
Millicom to exit Asia totally by Q1 of 2010. Sells Laos share to Vimpelcom for $66 Million.
Millicom has agreed to sell its GSM business in Laos to Russia’s VimpelCom and has bidders lining up for its Sri Lankan operations, the sale of which will end Millicom’s activities in Asia. VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.
Last month Millicom agreed to sell its 58.4 percent share in CamGSM, Royal Telecam International, and Cambodia Broadcasting to its Cambodian partner, The Royal Group, for $346 million in cash.
That leaves just Sri Lanka from Milicom’s Asian portfolio, and its operations there are also up for grabs. Millicom is the sole owner of Celltel Lanka (Pvt) Ltd. It was the first mobile operator in Sri Lanka. Mobitel and Tigo both claim to be the second largest. Dialog GSM is the country’s largest operator.
Indian State owned, Bharat Sanchar Nigam Ltd. (BSNL), UAE’s Etisalat, Malaysia’s Axiata Group and India’s Bharti are also said to be bidding to acquire Tigo Lanka.
Axiata’s Dialog and Airtel already operate in Sri Lanka. Airtel winning the bid might sit better with the regulator since Axiata winning it would give Dialog an overwhelming position in the market.
Millicom expects to exit Asia Q1 of 2010. At the end of the first quarter, Millicom had a total of just over 4.5 million subscribers in Asia. Millicom’s Asian Revenues for 2008 are at $262 million with an EBDITA of $101.5 million. This is a year-on-year increases of 24.4 percent and 27.5 percent respectively.VimpelCom will pay approx $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.
