The company will become the fourth mobile operator in Uganda. It is expected that Warid’s entry will push mobile prices lower.

A certificate issued by the UCC read, "This is to certify that Warid Telecom Uganda Ltd is licensed to provide voice and data services from November 22, 2006 through to November 21, 2007."

"Before operations begin, we will have spent US$ 150 to US$ 200 million. This is my guess but it could be more," said Warid’s chief executive Bashir Ahmad Tahir.

The network, to being operations by August 2007, is being planned for 1.5 million subscribers with a projected increase to four million subscribers in three to five years. Currently, there are about 2.5 million mobile phone subscribers shared between MTN, Celtel and Uganda Telecom, a number that has been built over the last 12 years. Tahir said his group's experience in Pakistan and Bangladesh shows that there is still a lot of space for growth in the Ugandan market.

"When we launched in Pakistan in June last year, we underestimated demand and now a year later, we have seven million subscribers, the fastest rollout by a mobile phone operator anywhere in the world…In Uganda, we are not going to make that mistake. We are going to begin with extra capacity," he said.

In July, the UCC lifted the network operator duopoly that was held by MTN and Uganda Telecom effectively opening up the sector to new investors.

Source: New Vision - WDR/Intelecon Regulatory News