Telecom enters Angolan market

MUNDO Startel, a fixed-line operator in Angola in which Telecom Namibia has a 44 per cent shareholding, recently signed a foreign direct investment (FDI) with the National Agency for Private Investment, formalising Telecom’s entry into the Angolan market.

The National Agency for Private Investment is the Angolan government arm responsible for the implementation of the national policy on foreign investments. Mundo Startel is one of four telecommunication companies given a licence to reconstruct Angola’s telecommunication network.According to the shareholders agreement, Telecom Namibia will have to invest U$15 million within the first three years of operating.The total investment by Mundo Startel is valued at US$53 million.Mundo Startel has also concluded a deal with ZTE of China, which formed a framework agreement for the purchase, implementation, operations and maintenance of a next-generation network in Angola.Telecom’s Acting Head of Corporate Communications, Oiva Angula, says the signing of the two agreements represents a ‘very important and historic milestone’.Angula said part of the company’s strategic objective was based on prudence and daring developmental efforts underpinned by forward-looking economic considerations.”It is indeed a historic achievement that signals the beginning of our exciting new business operations in the telecommunications arena of the Republic of Angola.Furthermore, Telecom Namibia’s involvement in Angola is in line with the strategic intent that aims at strengthening the company’s ambitious strategy for international investments, while maintaining the company’s commitment to building shareholder value.”Mundo Startel has an operator’s licence for full fixed-line telecommunication services, but it has not yet started with any operations.The company plans to start building physical infrastructure this month and it foresees the first services from its network in the first quarter of next year.A technical plan has been put in place, which entails the rollout of the network to take place first in Luanda and Benguela, from where it will expand to Huambo, Huila, Kwanza Sul and Cabinda.Angula said Telecom Namibia and its Angolan partners were considering the creation of 276 jobs through the joint venture, of which 33 would be for expatriate workers and 243 for Angolans.As part of the deal, Telecom Namibia has provided three executives – Managing Director, Financial Director and Technical Director – to run the affairs of Mundo Startel for five years.Mundo Startel is one of four telecommunication companies given a licence to reconstruct Angola’s telecommunication network.According to the shareholders agreement, Telecom Namibia will have to invest U$15 million within the first three years of operating.The total investment by Mundo Startel is valued at US$53 million.Mundo Startel has also concluded a deal with ZTE of China, which formed a framework agreement for the purchase, implementation, operations and maintenance of a next-generation network in Angola.Telecom’s Acting Head of Corporate Communications, Oiva Angula, says the signing of the two agreements represents a ‘very important and historic milestone’.Angula said part of the company’s strategic objective was based on prudence and daring developmental efforts underpinned by forward-looking economic considerations.”It is indeed a historic achievement that signals the beginning of our exciting new business operations in the telecommunications arena of the Republic of Angola.Furthermore, Telecom Namibia’s involvement in Angola is in line with the strategic intent that aims at strengthening the company’s ambitious strategy for international investments, while maintaining the company’s commitment to building shareholder value.”Mundo Startel has an operator’s licence for full fixed-line telecommunication services, but it has not yet started with any operations.The company plans to start building physical infrastructure this month and it foresees the first services from its network in the first quarter of next year.A technical plan has been put in place, which entails the rollout of the network to take place first in Luanda and Benguela, from where it will expand to Huambo, Huila, Kwanza Sul and Cabinda.Angula said Telecom Namibia and its Angolan partners were considering the creation of 276 jobs through the joint venture, of which 33 would be for expatriate workers and 243 for Angolans.As part of the deal, Telecom Namibia has provided three executives – Managing Director, Financial Director and Technical Director – to run the affairs of Mundo Startel for five years.