Former MTN boss chairs Nigerian firm

Nigerian fixed wireless telecom operator Starcomms has received a $43.2 million injection from emerging markets investor Actis and the AIG African Infrastructure Fund (AAIF) managed by Emerging Markets Partnership.

Actis and AAIF's acquisition of a major stake in Starcomms has also led to the appointment of Paul Edwards, former MTN Group CEO, as non-executive chairman of Starcomms.

Edwards, who is the executive chairman of Chartwell Capital and Chartwell Telecommunications, has also previously been CEO of Johnnic Holdings.

Actis says the investment will be used to accelerate the roll-out of Starcomms's services across Nigeria. The company provides prepaid voice and data services to more than 145 000 subscribers.

"Telecoms is an area in which we have a keen interest," says Actis managing partner Peter Schmid, who adds that Starcomms could have more than a million subscribers by 2008.

Edwards says fixed wireless will play a significant role in increasing access to telecommunications in Africa.

"In many African countries the fixed-line infrastructure is underdeveloped and is inhibiting economic growth," he says.

"In comparison, fixed wireless offers a complete package of telecommunication services for both business and individual users, including Internet access, high-speed data, fax and voice, without the need to lay wires, making it both cost-effective and providing for rapid roll-out."