Movitel to spend USD120 million on rural rollout during 2011

10 Jan 2011

Movitel, the Vietnamese military-backed cellco that acquired Mozambique’s hotly contested third mobile phone licence in November, has pledged to invest USD120 million in the construction of new infrastructure during the next twelve months. CEO Safura Conceicao told Reuters Africa: ‘We have just been awarded the licence and we have twelve months to start. We are going to spend USD120 million to build new base stations in remote areas where our competitors do not exist’. The comments follow on from Movitel’s earlier announcement that it will spend a total of USD400 million rolling out its new network over a period of five years; the cellco aims to achieve 85% population coverage during that time frame. According to TeleGeography’s GlobalComms Database, at end-September 2010 Mozambique was home to 6.02 million mobile phone customers, of which mCel boasted 4.25 million subscribers, or 70.6% of the market. In November 2010 mCel managing director Salvador Adriano confirmed that the cellco intends to share its existing cell towers with Movitel as a gesture of goodwill. Adriano explained that this would allow mCel to raise more revenue, whilst saving Movitel from building out an entirely separate network.

Mozambique, Movitel (Mozambique)