JOHANNESBURG, South Africa-The potential bidders for the third cellular license in South Africa are determined to break the existing Vodacom-MTN duopoly. “We will be competing head-on with MTN and Vodacom for a slice of the lucrative market, believed to be worth R10 billion (US$2 billion),” said Sello Matsabu, chairman of the bidding consortium NextCom.
According to Matsabu, South Africa has the potential of adding 10 million subscribers within the next five to seven years. If successful at obtaining the third license, scheduled to be issued soon, NextCom aims to secure 3 million subscribers within that period of time-30 percent of the potential market.
“Our strategy is to develop the market and grow the cellular customer base particularly in the black sector. But we will not be neglecting the sectors where the majority of cellphone activity occurred,” said Matsabu.
Industry sources expect the new operator will opt for the GSM 1800 technology as it allows for international roaming, which provides a lucrative income.
Other strong consortia contenders for the license include Khuluma Cellular 084, Mashudu Ramano’s Telecommunications Empowerment, Afrozone and Spatial Communications.
Alcatel, Ericsson, Nokia, Nortel Networks and Siemens have been chosen as possible technology and infrastructure partners.
International operators showing interest in joining the consortia include Telenor of Norway; Sonera of Finland; Mobile Systems International Cellular Investment and Millicom, both from the United Kingdom; and T-Mobil of Germany.
The tenders are set to close on 14 June, but the exact date when the winning bid will be announced has not been set. The new network is expected to roll out during the first half of next year.
