Mozambique - At least 19 companies, among national and foreigners, have already acquired the tender documents for a 3rd mobile licence

[aim news] At least 19 companies, among national and foreigners, have already acquired the tender documents of an international bid for the license of a third mobile phone operator in Mozambique launched by the government last month, reports the Thursday issue of the daily "Noticias".

Americo Muchanga, the general manager of the regulatory body, the National Communications Institute of Mozambique (INCM), said in Maputo on Wednesday to reporters that this number of potential competitors is "very positive", and far beyond their initial expectations.

"It is true that the purchase of the tender documents does not necessarily mean that the company will submit a proposal, but it is a good indicator of the existing interest that for a bidding of this nature", said Americo Muchanga.

According to the rules, bidders can only obtain the tender documents against a bank guarantee of two million dollars, which will be returned to the unsuccessful bidders.

As for the participation of Mozambican companies in the international tender, Muchanga said that they will definitely have to find a foreign partner with the required technology.

"The rules of the tender state that for a bidder to be eligible must have experience in telecommunications services operations. At a national level only TDM (Mozambique's publicly-owned telecommunications company), Mcel (Mozambique's largest cell phone company, Mocambique Celular) and the South African company Vodacom have this experience, however these companies are excluded from this tender. This means that any domestic company wishing to compete will have to find a foreign technological partner, "said Muchanga.

Also, INCM claims that there are signs that the number of potential competitors may increase, taking into account that the deadline for the submission of proposals only expires on June 21.

Americo Muchanga also said that the decision to proceed with the tender for licensing a third operator was based on a number of assumptions, including that there is enough room to accommodate few more mobile phone operators.

Figures released on the occasion show that Mcel recorded revenues in excess of 270 million dollars in 2008, while its rival Vodacom reported for the same period nearly 100 million dollars.

Currently, both operators are increasing their investments in Mozambique, with Vodacom investing about 321 million dollars between 2003 and 2008, and Mcel 282 million dollars for the same period.

There are in the country about six million subscribers, of which about 3.5 million are Mcel customers, and 2.5 million for Vodacom, representing a penetration rate of mobile phone of about 29.1 percent nationwide.

Mozambique: Nineteen Companies Bidding for Third Mobile Phone Operator