RCom to invest $200 million in Uganda

By siliconindia   |   Thursday, 20 December 2007, 02:35 IST
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New Delhi: Reliance Communications (RCom) will invest $200 million to launch a telecom network - both fixed and mobile - in Uganda, a country in Eastern Africa by the third quarter in 2008. The company has gained a license to be the African country's sixth telecoms operator. In Uganda, RCom will have to compete against MTN, Uganda Telecom, Hits Telecom, Celtel and Warid Telecom, reported Business Line. According to sources, RCom has bagged two licenses - Public Infrastructure Provider (PIP) and Public Service Provider (PSP) - which will allow the company to offer mobile, fixed, internet, national and international long distance services, in addition to Wi-Max and Wi-Fi services in Uganda. RCom will launch mobile services on the GSM platform in the first phase and then expand to the services to other communication related services, sources added. Since the Ugandan license also provides for international long distance services, RCom will look to link its network here with its Flag Telecom's upcoming Next Generation Network (NGN) African undersea cable. Flag Telecom is a 100 percent subsidiary of Reliance Communications. Uganda also marks RCom's first step towards expanding its footprint to international markets. RCom's earlier efforts to enter international markets had failed as it lost its bid for mobile licences in Saudi Arabia, Egypt, Bhutan, Sri Lanka, Kenya and Qatar in addition to losing the race to bag a fixed line license in Bahrain. Recently, it was pipped by France Telecom to acquire a 51 percent stake in Telkom Kenya.