AIRTEL CREATES STRONG COMPETITION FOR MTN IN RWANDA

MTN is set to encounter new competition in the Rwandan market after the launch of Indian cellphone operator Airtel there yesterday. Airtel plans to invest $100 million (about R771m) over the next three years in its new operation, and create direct and indirect employment in the country, it said in a statement.

It took 83 days to build the network from scratch, which is the fastest Greenfield launch in the history of sub-Saharan Africa. The Rwanda Utilities Regulatory Agency last year awarded the company the licence to operate 2G and 3G GSM cellphone services.

Airtel had 246 million customers by end of February and is present in 17 African countries. This includes MTN's biggest market in Nigeria, Democratic Republic of Congo, Madagascar and Uganda.

Airtel chief executive (International) Manoj Kohli and joint managing director Bharti said the launch would strengthen Airtel's position in east Africa.

MTN owns 55 percent of MTN Rwanda, which launched in 1998. It has 2.6 million subscribers, says MTN's website.

Curled from - IOL Business Report

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