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Reports by Investors Business Daily say Millicom International Cellular Company
(MICC) expects to spend at least another $1 billion in 2008. Much of that
spending is in Africa Sierra Leone, Chad, Congo, Ghana, Tanzania, and Senegal.
The company upped its guidance for capital spending in November 2007 to $1
billion from $800 million.
"Im very optimistic for the outlook in the 16 markets where we operate,"
Millicom Chief Executive Marc Beuls said. "What I see is very strong GDP growth,
which should continue in 2008. These countries are inviting in foreign
investors, opening up their economies." Some analysts believe that for many
developing countries like Sierra Leone, having wireless phone services available
is a key part of modernizing economies.
Meanwhile, Beuls affirmed that by building a wireless network MICC helps create
economic infrastructure, allows people to communicate doing business and helps
create growth in the market.
However, while the company tries to make wireless services more affordable by
charging customers on a persecond rather than perminute basis, one of its
challenges is that much bigger telecom firms are now eyeing small developing
countries where wireless usage is still low.
Beuls is in agreement: "Africa is very much the flavor of the year, a lot of
newcomers are coming into the market," and added. "But some companies
underestimate what it means to operate mobile businesses there. Its a much
different environment, and you need to adjust your business model."
** Check out our
Africa Phone Card
Source: http://allafrica.com/stories/200801130004.html
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