ZAMBIA WANTS A NEW MOBILE PROVIDER TO TAKE ON MTN

Zambia is seeking bidders for a fourth mobile licence to take on operators including market leader MTN Group in the southern African country  and may even have room for a fifth, according to  Transport and Communications Minister Brian Mushimba.

Mushimba said, the ministry has given the go-ahead to the telecommunications regulator to start the process. The new carrier could be in place within six(6) to twelve(12) months.

The current operators are Airtel, MTN and state-owned Zamtel. Communication costs in Zambia have been “rather on the high side,” Mushimba said. He also noted that market analysis that have been done supports the fact that Zambia can have a fourth licensee and possibly a fifth and still the market will be profitable.

Zambia which is  Africa’s second-biggest copper producer with a population of more than 16 million, had 12.4 million active mobile subscribers at the end of June, 10% more than a year before, according to data from the finance ministry. The country had 5.9 million internet users by the end of June, a 3% rise from the figure at the end of December. Almost all of these use mobile internet.

The upcoming auction represents a rare opportunity for international wireless carriers to expand in sub-Saharan Africa without making an acquisition.