MTN mulls Uganda acquisition

2 May 2013

South Africa’s MTN is considering potential acquisitions in the Ugandan market, following the announcement last month that Bharti Airtel’s local unit had agreed to purchase rival carrier Warid Telecom Uganda, the nation’s second and fourth largest cellcos by subscribers respectively. Reuters cites MTN Uganda chairman Charles Mbire as saying that MTN had also contemplated snapping up Warid, adding that the operator is currently evaluating other potential takeovers but stopped short of revealing which companies were under consideration. Commenting on the crowded market’s first steps towards consolidation, Mbire said: ‘Uganda is a market for at best two companies … The anarchy in the market has to stop. Out will come realism, real prices and then we can invest much more.’

Meanwhile, IT News Africa reports that sector watchdog the Uganda Communications Commission (UCC) has reassured Warid customers over concerns regarding continued use of their numbers and the loss of current Warid products. UCC’s head of communications Fred Otunnu said that the authority would carry out a comprehensive review of plans for the merger before granting a transfer of licence, adding that ‘the regulator will make sure customers are protected.’

Uganda, Airtel Uganda, MTN Uganda, Warid Telecom Uganda