Malawi names preferred bidder for third mobile licence

Global Advanced Integrated Network, a consortium of African investors, has been named the preferred bidder for Malawi’s third mobile network operation licence, shrugging off competition from the US’s Millennium Global Telecom and South Africa-based Econet Wireless.

Malawi Communications Regulatory Authority (Micra) public relations officer Zamdziko Mankhambo says the firm is expected to engage partners to roll out the new network in a year’s time, after government gazettes its licence.

Malawi’s existing mobile network operators are TNM, a consortium of African investors, and Celtel Malawi, a subsidiary of pan-African mobile network operator Celtel International. The two firms share a market of over one-million active cellphone users.

Information and Civic Education Minister Patricia Kaliati says the Malawi government expects “the new player to roll out exciting products as well as offer efficient and affordable services, as this will help pull down calling rates”.

Bids for the third mobile network licence were invited after Micra had withdrawn a licence granted in 2003 to Malawi Mobile, a consortium of South African and Malawian investors, after the consortium had failed to roll out the network within the recommended period.

Meanwhile, Macra is still receiving bids from telecommunications firms wishing to launch a fourth mobile network in the country.

Mankhambo says the preferred bidder for the fourth mobile licence will be named before the end of the year.

Malawi is seeking to increase cellphone penetration rates in the country. A mere 7% of Malawians have access to cellphones, one of the lowest cellular-phone penetration rates in Africa. International research indicates that an additional 10% mobile-phone penetration leads to a 1,5% increase in gross domestic product.

In another development, Macra says there is substantial progress in preparations for the roll-out of a second fixed-line network, the licence for which has been awarded to Access Communications.

Malawi advertised for bids for the second network to ensure competition in the land-line telecommunications industry following the privatisation of Malawi Telecommunications, which is now owned by a consortium that includes Malawi’s Press Corporation, as the major equity partner; Germany’s Detecon, as the technical partner; and South Africa’s Development Bank of Southern Africa and Standard Bank, as the financial partners.