MTN to launch one regional network
Jan 14, 2007
TELECOM firms MTN Uganda, Safaricom Kenya and Vodacom Tanzania will launch borderless services in the region this month. This follows the conclusion of talks that will help each of the telecom operators facilitate regional expansion.
By Emmy Olaki
TELECOM firms MTN Uganda, Safaricom Kenya and Vodacom Tanzania will launch borderless services in the region this month. This follows the conclusion of talks that will help each of the telecom operators facilitate regional expansion.
Erik van Veen, the MTN chief commercial officer, said over the weekend that the single network will be launched before the end of January.
He was, however, hesitant to give details on how the system would work.
“We will give you details when we are closer to launching,†asserted van Veen. “Last year, we mentioned that we shall launch this service in 2007. I can tell you now that preparations are in advanced stages and we shall be launching it before the end of this month,†he added.
The three companies have been in talks since mid-last year on how they could create synergies to provide a single network.
Celtel became the first company to launch a service of this kind in the world, but the three made their announcement a few days later.
Celtel then unveiled a seamless service called One Network, which allows subscribers in the region to make calls at local rates and receive calls free of charge while in another regional country.
Subscribers can also top-up their credit while in any of the three East African countries.
“We are not going to sit still and watch. We are in advanced negotiations with our partners in Uganda and Tanzania,†Michael Joseph, the Safaricom chief executive officer, was quoted as saying at the time of Celtel’s One Network launch.
Vodacom Tanzania has a subscriber base of more than five million, MTN has 1.7m subscribers while Safaricom has about 4.7m subscribers.
“We are all market leaders in our respective countries. Combined, we have a subscriber base of more than 10m and this is going to be the biggest service in the region,†said van Veen.
The launch of the new service is expected to create a lot of competition in the region as subscribers will be torn between Celtel and the other service providers.
Analysts estimate that since the launch of Celtel’s One Network, the company had gained more that 10% of regional subscribers owing to its flexibility.
TELECOM firms MTN Uganda, Safaricom Kenya and Vodacom Tanzania will launch borderless services in the region this month. This follows the conclusion of talks that will help each of the telecom operators facilitate regional expansion.
Erik van Veen, the MTN chief commercial officer, said over the weekend that the single network will be launched before the end of January.
He was, however, hesitant to give details on how the system would work.
“We will give you details when we are closer to launching,†asserted van Veen. “Last year, we mentioned that we shall launch this service in 2007. I can tell you now that preparations are in advanced stages and we shall be launching it before the end of this month,†he added.
The three companies have been in talks since mid-last year on how they could create synergies to provide a single network.
Celtel became the first company to launch a service of this kind in the world, but the three made their announcement a few days later.
Celtel then unveiled a seamless service called One Network, which allows subscribers in the region to make calls at local rates and receive calls free of charge while in another regional country.
Subscribers can also top-up their credit while in any of the three East African countries.
“We are not going to sit still and watch. We are in advanced negotiations with our partners in Uganda and Tanzania,†Michael Joseph, the Safaricom chief executive officer, was quoted as saying at the time of Celtel’s One Network launch.
Vodacom Tanzania has a subscriber base of more than five million, MTN has 1.7m subscribers while Safaricom has about 4.7m subscribers.
“We are all market leaders in our respective countries. Combined, we have a subscriber base of more than 10m and this is going to be the biggest service in the region,†said van Veen.
The launch of the new service is expected to create a lot of competition in the region as subscribers will be torn between Celtel and the other service providers.
Analysts estimate that since the launch of Celtel’s One Network, the company had gained more that 10% of regional subscribers owing to its flexibility.