Abu Dhabi Group Business News

French Firms at Heart of Race for African Mobile Telecommunications Markets

Cell Phone UserThe scramble for mobile markets in Africa is well underway, and while early activity was driven by expansionist local operators like MTN, the European giants are now stepping up their game, with French players poised to shake up the picture significantly.

There are two key aspects to the multipronged attack by French players from Vivendi and Orange to new start-up Augere. One is acquisition of existing 2G and 3G players or licenses, the other is to establish footholds using new technologies, with WiMAX at the forefront.

France Telecom is using WiMAX in many sub-Saharan African territories to expand its Orange brand even before it can gain 3G licenses, and now new company Augere – founded by former Orange CEO Sanjiv Ahuja – is pursuing a similar strategy.

Augere, a London-based start-up, has raised EUR 88m (USD 125m) in an initial round of funding from France Telecom itself (which holds a 22% stake), plus US venture capitalists New Silk Route and Vedanta Capital. It plans to launch WiMAX networks in Rwanda and Uganda early next year, and then Nigeria. Read the rest of this entry »

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Essar Group in Talks with Abu Dhabi Group on African Telecommunications Deal

Essar Group

India’s Essar Group may invest into Abu Dhabi Group’s telecommunication business in Africa to expand operations in the region, the Indian energy-to-steel conglomerate said in a statement on Sunday. Abu Dhabi Group, a group of investors based in the UAE, and Essar Group agreed to enter exclusive talks for Essar Group to put equity into the African businesses of the middle eastern group for growth capital, Essar said. The investment “will be the basis of a partnership to create a significant presence in Africa,” Essar said. Read the rest of this entry »

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