13 9 02
Johannesburg - M-Cell on Thursday said it had signed up more than half a million
subscribers in Nigeria by the end of July, and it was confident its investment
there would bear fruit in time.
Responding to a newspaper comment, M-Cell chief executive Phuthuma Nhleko said
in a statement: "We remain very optimistic about the investments we have made
and to date our operations in Nigeria have performed very well."
The Business Day newspaper had questioned in a market rumours column whether
M-Cell was considering whether to "write off or bale out" of its Nigerian
investment.
But M-Cell tried to counter that, saying it was confident about its business
there. M-Cell said it planned to roll out 120 more base stations in the next few
months, from the current 190, as well as adding more switching centres to the
current five.
"The Nigerian operation has required substantial investment, which has resulted
in our current unhedged debt of around $240 million, and we are constantly
looking at ways to reduce our currency risk," Nhleko said.
"We will continue to monitor...developments in the country, and to assess the
risk profile," he added. M-Cell runs South Africa's second-largest network but,
facing a maturing market at home, is banking on Nigeria for future growth.
Average revenue per user in Africa's most populous country - where M-Cell
launched operations in August 2001 - were exceeding forecasts, at around US$60 a
month.
Subscriber growth had also beaten expectations. Its initial business plan
forecast 174 000 and it was set a target of 100 000 subscribers within a year
under its licence obligations.
In an analysts' conference call in late August, M-Cell said it had a 52% market
share in Nigeria, where its services were available in 21 cities covering 25% of
the population.
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