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Friday, February 22, 2008

ADAG buys mobile firm in Uganda

Reliance Communications Limited, promoted by Anil Ambani, has acquired the Uganda-based Anupam Global Soft Limited — a company holding a public infrastructure provider license (PIPL) and public service provider license (PSPL) issued by the Uganda Communications Commission (UCC) agency. This is RCom’s first acquisition, in the international mobile market. Reliance Communications will offer mobile, fixed line, internet, national and international long distance services. The company will also provide WiMax and Wifi services in Uganda under the existing licenses. This company has received spectrum allocation and plans to launch its mobile services by the end of 2008. Uganda has a total population of around 30 million and there were 3.016 million mobile subscribers by end-March 2007 (source: UCC).
This is equivalent to a penetration rate of 10 per cent providing ample scope of expansion, the company said. The existing telecom players have been witnessing healthy subscriber and ARPU growth recently. The Reliance Communications Group will invest up to $500 million or Rs 2,000 crore in establishing a high-quality, fully IP-enabled integrated telecom network in Uganda, to capture the significant growth potential in the emerging African market. Mr Punit Garg, president, global business, Reliance Communications said the company plans to connect the African continent with the rest of the world by laying a submarine cable system through its arm Reliance FLAG and plans to spend $1.5 billion or Rs 6,000 crore in building a 1,15,000-kilometre fully IP-enabled optic network to reach two-thirds of the world population. The opportunities emerging in the Asian and African markets are predicted to be Reliance Communications’ hunting ground for its global expansion plans.

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