Celtel (Tigo Millicom)

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Celtel was awarded a 25 year concession contract to provide cellular phone services through one of the cellular bands in January 1995. Celtel is a consortium integrated by Motorola Inc., Millicom International, and Inversiones Rocafuerte. For its concession, Celtel had to make an infront payment of US$5.1 million, annual payments equivalent to 8% of gross revenues less interconnection charges, and US$7.30 per customer. Celtel started its commercial operation in September 1996. The company invested $71 million over the 6 years since 1996. In May 2005, Millicom anounced it had bought shares from motorola and increased its stake in Celtel to 66.7%. 2004-2009 investment generated by taking Central American telecom capital expenditure from Millicom and dividing it by respective number of customers, i.e. is a proxy of Millicom's total annual investment in their CA subsidiaries.