NIAMEY: Bharti Airtel Ltd will invest
about $100 million in Niger to improve the reach and quality of its network in
the West African nation by the end of 2012, the mobile phone company said on
Friday.
Bharti took over mobile operations in 15 African nations
when it completed the acquisition of the African assets of Kuwait's Zain last
month. The deal made it the world's No.5 mobile phone operator by subscribers.
"We are going to start our activities in Niger in October and, by 2012, we will
invest $100 million, or about 50 billion CFA francs, in expanding the network,
improving quality and (improving) the coverage in the rural areas," said Manoj
Kohli, chief executive of the group's international business.
"We
will ensure that telecommunications becomes more accessible in terms of price
and the quality of the service improves," he told reporters, on the latest leg
of an African tour, during which there have been promises of investments
elsewhere, such as in Zambia.
The company, which is facing tough
competition in a crowded home market, is betting on opportunities in Africa
where mobile phone penetration is 32 per cent, less than India's 50 per cent,
and there are fewer competitors. Kholi said penetration rates in Niger, a poor
desert nation currently in the grips of a food crisis, was one of the lowest at
10 per cent to 11 per cent. "If Niger is to develop, it much reach (penetration
rates) of 40 per cent," he said. "Our group is going to invest here to ensure
that we can make the difference in telecommunications here in Niger."
Earlier this year, Bharti spent $9 billion buying Zain's assets in
Africa. The acquisition gives Bharti 42 million customers in Africa and $3.6
billion in annual revenue, but there are financial and management challenges as
it deals with 15 governments and people speaking more than 1,000
languages.
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