The chairman of mobile operator MTN Uganda, Charles Mbire, is considering acquiring a local carrier following the announced merger of two rivals last week.
Mbire told Reuters, on the sidelines of a conference in Dubai, that further consolidation is…
The chairman of mobile operator MTN Uganda, Charles Mbire, is considering acquiring a local carrier following the announced merger of two rivals last week.
Mbire told Reuters, on the sidelines of a conference in Dubai, that further consolidation is needed in the Ugandan market, which is home to five operators and one MVNO.
In late April, Bharti Airtel, India’s largest telco, agreed to acquire Warid Uganda outright from Abu Dhabi-based Warid Telecom.
No financial details were disclosed but Bharti said it is planning to merge its Ugandan subsidiary Airtel, currently number two in the country, with Warid Uganda, which is number four.
According to the company, the combined entity will have a customer base of over 7.4 million and market share of more than 39%.
In comparison, MTN reportedly has a market share of 43%.
MTN Uganda, controlled by South Africa’s MTN Group, once considered acquiring Warid Uganda, Mbire said. A potential target for the company might now be Uganda Telecom Mobile, the report suggested.
Orange is the fifth mobile operator in the country, while K2 Telecom launched as an MVNO earlier this year. In addition, Sure Telecom is expected to launch services soon.
With a mobile penetration below 50%, growth opportunities are plentiful. However, according to Business Monitor International (BMI), increased competition is squeezing operators’ margins, making capital investments more difficult, hence the need for consolidation.
