Mozambique cellular service provider, mCel, has signed a R70 million three-year contract with Ericsson SA to facilitate the expansion of its mobile GSM network.
"The demand for cellular communication has rocketed," says Rui Fenandes, mCel chairman. "The company is rolling out cellular services throughout Mozambique and gaining new customers at a rapid rate."
Fenandes says that while the recession is biting into budgets across the world, the growth of the telecommunications market in Africa has not been affected to such a large extent. "Mozambique`s growing economy is driving growth in the telecommunications sector, and in return the growth in this market is stimulating the economy."
In terms of the deal, Ericsson is to supply the microwave transmission equipment for mCel as well as support services.
"mCel is one of the fastest growing mobile communications providers in Africa and market potential in Mozambique is huge," says Jan Embro, Ericsson VP. "We expect this growth to continue for the next few years and have positioned Ericsson to play a major role in the maturation process of African telecommunications."
Embro says while 3G and data services get all the attention in Europe, Africa`s focus is on GSM and voice services. "We believe Ericsson can play a critical role in facilitating these developments."
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