Betty Kyakuwa
16 November 2009
The Essar Group yesterday completed negotiations with Dhabi Group, the owners of Warid Telecom Uganda, for the takeover of Warid Telecom operations in Uganda, officials have confirmed.
Mr George Shine, the head of products and services, Warid Telecom Uganda, said the Indian telecom giant Essar would hold the majority 51 per cent shareholding in Uganda's fourth telecommunication service provider.
"It is confirmed but I am still waiting for final details from Abu Dhabi," Mr Shine said by telephone, without giving details.
Warid started its operation in Uganda in 2007 as the fourth telecommunication service provider under the control and investment of the Dhabi Group whose Chairman is the wealthy Sheikh Nahayan Mabarak Al Nahayan.
Its presence has spurred the competition and helped to raise the quality of service although the actual amount of call rates in the country has not significantly reduced.
Warid Telecom has struggled to shake the market whose leadership resides with MTN Uganda and has a strong presence from both Zain and Uganda Telecom.
Enthusiasm
Officials are optimistic that the takeover of Warid Telecom Uganda by Essar, will enable further expansion and innovation of more tailor made products for different subscribers and company is promising to be a force to reckon with.
Essar owns 33 per cent of Vodafone Essar, a leading Indian telecoms company, which has 75 million subscribers. It is a joint venture with the Vodafone Group.
Essar holds a 33 per cent interest in Vodafone, one of India's largest cellular service providers, with over 75 million subscribers.
Essar Telecom Kenya has also recently launched Kenya's fourth mobile cellular network under the brand "yu".
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