MTN Uganda

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MTN Uganda was awarded a 15-year license to operate Uganda's second national telecommunications network in January 1998. The license, known as Second Network Operator (SNO), covered a broad range of telecommunications services including basic voice, data, and mobile. MTN Uganda, which won the SNO license through a competitive auction, offered US$5.6 million. The license was granted as part of the process of liberalization in the telecom industry aimed at opening up competition with state-owned Uganda Telecommunications Limited (UTL). MTN Uganda was a consortium integrated by South African MTN (52%), Telia Overseas AB of Sweden (32%), Investco Uganda (3%), and Tristar Investment of Rwanda (13%). In 2006, MTN Group Limited increased its stake in MTN Uganda to 97%. The consortium committed to install a minimum of 89,000 lines by its fifth year of operation. In addition, the consortium had planned to operate a mobile network. MTN Uganda started its commercial operations in October 1998 with an installed capacity of 80,000 lines. In 1999, the company secured a US$35 million financing arrangements through a US$10 million bond, the first private instrument on the Uganda stock exchange, and a Uganda-Shilling-denominated syndicated loan of YS$14 million provided through Barclays Capital, Development Finance Company of Uganda, East African Development Bank, Standard Bank and Standard Chartered. Ericsson of Sweden was providing the equipment. MTN Uganda announced in May 2003 that it would expand its mobile network with a US$19.1 million injection. Some US$17.4 million of that came from a loan it obtained from Standard Bank's local unit, Stanbic, and Denmark's Landesbank Schleswig Holstein Girozentrale earlier in May 2003. The cash was to be spent on Ericsson's network infrastructure. In the basic service market, MTN Uganda competed with the UTL, whose divestiture began in 1999 with the sale of a 51% stake. In the cellular market, MTN Uganda competed with Celtel and UTL Telecel. At 31 December 2005, mobile subscribers stood at 982,000 and fixed-line subscribers at 17,000, showing increases of 26% and 54% respectively year-on-year. MTN Uganda’s mobile market share declined slightly during the period from 66% to 63% with total market share (including fixed-line) at 62%. MTN held 96% ownership by 2011. Capex 2011 based on MTN group annual report: parent capex * subscribers MTN subsidiary / subscribers of total MTN group Capex 2012: Wireless Intelligence Capex 2013: Ibid 2006 - MTN Rwanda and MTN Uganda are the largest tax payers in those countries. MTN has invested $180 million in Uganda to date. MTN Annual reports: 2005 - Investment in network infrastructure during the period was USD36 million; this included commissioning 27 base transceiver stations and expanding of the core network infrastructure to enhance capacity. 2003 - "To date, MTN Uganda has invested US$176 million in both fixed and mobile network infrastructure." 2004 - "Network infrastructure investment for the year totalled US$28 million."