RCom to invest Rs 800 cr in Uganda
RCom has bagged two licences which will allow the company to offer mobile, fixed, internet, national and international long distance services. Future leaders of tech
By Joji Thomas Philip, TNN |
NEW DELHI: Reliance Communications (RCom) will invest Rs 800 crore to roll out a telecom network - fixed and mobile - in Uganda, a country in Eastern Africa. The company has bagged a licence to be the African nation’s sixth telecom operator. Once the network is in place, RCOM in Uganda, will compete against MTN, Uganda Telecom, Hits Telecom, Celtel and Warid Telecom. The company plans to launch services in Uganda by Q3 in 2008.
According to sources, RCom has bagged two licences - Public Infrastructure Provider (PIP) and Public Service Provider (PSP) - which will allow the company to offer mobile, fixed, internet, national and international long distance services, in addition to WiMax and Wifi services in Uganda. In the first phase, RCOM will launch mobile services on the GSM platform and then expand to the services to other communication related services, sources added.
Since the Ugandan licence also provides for international long distance services, RCOM will look to link its network here with its Flag Telecom’s upcoming Next Generation Network (NGN) African undersea cable. Flag Telecom is a 100% subsidiary of Reliance Communications.
This African cable is amongst the four new cables being built by Flag and is slated to cover African countries like Kenya, Mozambique, Republic of South Africa, Tanzania, Madagascar and Mauritius. The third leg of this four cable plan involves connecting the North of Africa to Europe and will cover countries such as Greece, Cyprus, Turkey, Malta, Libya and Lebanon.
Uganda also marks RCOM’s first step towards expanding its footprint to international markets. RCOM’s earlier efforts to enter international markets had failed as it lost its bid for mobile licences in Saudi Arabia, Egypt, Bhutan, Sri Lanka, Kenya and Qatar in addition to losing the race to bag a fixedline license in Bahrain. Recently, it was piped by France Telecom to acquire a 51% stake in Telkom Kenya.
According to sources, RCom has bagged two licences - Public Infrastructure Provider (PIP) and Public Service Provider (PSP) - which will allow the company to offer mobile, fixed, internet, national and international long distance services, in addition to WiMax and Wifi services in Uganda. In the first phase, RCOM will launch mobile services on the GSM platform and then expand to the services to other communication related services, sources added.
Since the Ugandan licence also provides for international long distance services, RCOM will look to link its network here with its Flag Telecom’s upcoming Next Generation Network (NGN) African undersea cable. Flag Telecom is a 100% subsidiary of Reliance Communications.
This African cable is amongst the four new cables being built by Flag and is slated to cover African countries like Kenya, Mozambique, Republic of South Africa, Tanzania, Madagascar and Mauritius. The third leg of this four cable plan involves connecting the North of Africa to Europe and will cover countries such as Greece, Cyprus, Turkey, Malta, Libya and Lebanon.
Uganda also marks RCOM’s first step towards expanding its footprint to international markets. RCOM’s earlier efforts to enter international markets had failed as it lost its bid for mobile licences in Saudi Arabia, Egypt, Bhutan, Sri Lanka, Kenya and Qatar in addition to losing the race to bag a fixedline license in Bahrain. Recently, it was piped by France Telecom to acquire a 51% stake in Telkom Kenya.
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