Tigo Tanzania (former Mobitel)

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Mobitel Tanzania Ltd. was awarded a license to operate mobile phone services in the Dar es Salaam area in 1993. Mobitel started its commercial operations in 1994. The license was expanded to nationwide coverage in 1998. The company was initally a joint venture between Luxembourg-based Millicom International Cellular (57%), the state-owned Tanzania Telecommunications Co. (27%), and the local Ultimate Communications Ltd. (16%). On February 3, 2004, Millicom acquired 25% of Mobitel Tanzania from Tanzania Telecommunications Co., thus incresaing its ownership stake to 84.4%. By the end of 1999, the company had invested a total of US$33.3 million in network development (a loan of US$12.5 million was provided by the Southern Africa Development Bank in mid-1999). Mobitel Tanzania acquired Adesemi Communications International in 1999. Adesemi Communications International, previously known as African Communications, operated public wireless payphones. Adesemi had 1,000 wireless public pay phones by the end of 1998 with an investment of US$0.2 million. In July 2003, Mobitel acquired a loan from the Standard Chartered Bank to invest US$15 million in expanding its network in Tanzania. In 2004, the aggregate amount of the facility was increased by US$7.7 million (TZS 8,000.0 million). By end 2005, Mobitel had 475,000 subscribers, representing a 13.55% market share and placing it third behind market leader Vodacom and Celtel. In January of 2006, Millicom purchased the remaining 15.6% of Mobitel that it did not own from local Tanzanian investors for $1.3 million, making Mobitel Tanzania a wholly-owned subsidiary. By May, Mobitel spent $1 million to change the branding of Mobitel to bring it in line with its branding in other nations. With 761,000 subscribers, Mobitel maintained its third place position. 2007 capex = estimate Capex 2011 based on Millicom annual report: parent capex * subscribers Millicom country subsidiary / subscribers of total Millicom International (43.1m) Capex 2012: Ibid (47mio)

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