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Siemens makes inroads into African cellular market

Johannesburg, 14 Apr 1999

Siemens SA has been awarded a $15-million (R91,5-million) GSM supply contract by Zamcell, the third cellular network to be launched in Zambia.

Paul McKibbin, head of Siemens Mobile Networks in South Africa, says that Zamcell, which is the first Zambian network to operate on the GSM-900 standard, will offer value-added services, such as roaming, immediately.

"This will vastly ease communication for travelers from South Africa, who to date have not been able to roam on the existing CDMA and AMPS networks in Zambia," says McKibbin.

Zamcell, a joint venture between MSI, Mitsui and IFC, was launched in December 1998. In terms of the turnkey contract, Siemens provided the equipment for the network, which was installed in time for the first commercial trials which began in November. Siemens will extend the network in three phases to cover most of the major towns. The company will give on-the-job training to the Zamcell staff for a two-year period, after which it will provide high-level support from its offices in Pretoria.

According to the EMC African Cellular Business & Technology Report, Zamcell is anticipating a subscriber capacity of 50 000 within five to ten years, with an initial subscriber base of 10 000. In comparison, Telecel, which operates a CDMA network in Lusaka, has 3 000 subscribers, and the NEC AMPS network operated by Zamtel, the local operator, has 2 000 subscribers.

Zamcell's initial coverage extends from the greater Lusaka area and international airport to the Copper Belt, extending this year towards Livingstone near the Victoria Falls. The total cost of the initial roll-out is expected to be $20-million (R122-million), and further expansion of the network is planned for a later stage.

McKibbin says that cellular telecommunications in Africa are growing at a formidable pace, and competition for the lucrative network supply contracts is increasing accordingly.

Siemens Mobile Networks, which is the leading provider of switching systems and GSM value-added products in Southern Africa, is active in several African countries.

"Cellular technology is the logical route for Africa, as it obviates the need for land-line telephone connections, which are relatively expensive and vulnerable to physical damage. Once cellular infrastructure is in place, there are huge cost savings over the long term, as it provides the basis for an endless number of value-added services, ranging from data and fax transmission to Internet access", says McKibbin.

@EditorNote = Editors note

1. The dominant cellular network system in Africa is GSM (Global System for Mobile Communications), comprising 92% of existing networks and providing a service to nearly 3-million subscribers.

2. This is positive for African business and trade, as GSM has become the international standard for digital cellular technology and is employed by Africa's major trading partners, including South Africa and the whole of Europe.

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Editors note

1. The dominant cellular network system in Africa is GSM (Global System for Mobile Communications), comprising 92% of existing networks and providing a service to nearly 3-million subscribers.

2. This is positive for African business and trade, as GSM has become the international standard for digital cellular technology and is employed by Africa's major trading partners, including South Africa and the whole of Europe.

Editorial contacts

Lucy Reyburn
Madi Sussens Herdbuoys PR
(021) 465 5504
Paul McKibbin
Siemens Mobile Networks
(012) 352 5500