Orange Uganda, well known for the fastest internet speeds around the country is thought to
be planning an exit from several markets in Africa where it does not
already hold a number one or two spot. Aside from Uganda, which is
thought to be the only geography where an official process is underway,
this could also include Orange’s mobile businesses in Kenya, DRC and Niger, among others.Uganda’s mobile market is dominated by MTN and Bharti Airtel. MTN has around 8.5 million subscribers in Uganda, while post-merger, Airtel has over 7.5 million. The third largest is Uganda Telecom’s UT Mobile unit, with Orange Uganda among the country's smaller operators.
Sources suggest, the most logical buyer of the Orange Uganda unit could be MTN which has previously been vocal about consolidation in the country, and will be keen to firm up its number one position, with second place Airtel gaining valuable ground. While Airtel is also clearly in acquisition mode across Africa, sources said it was unlikely the Indian telecom would make a move for Orange Uganda so soon after its Warid buyout.
Next up for Orange could be the sale of its mobile unit in Kenya, formerly Telkom Kenya Orange, which has been struggling against larger rivals Vodafone-backed Safaricom and Bharti Airtel’s local unit, with continual losses which are unlikely to plateau until 2016 at the earliest.
Will you be affected if Orange left Uganda?
0 Comments