IHS Global Insight Perspective | |
Significance | Africatel’s subsidiaries are each the leading mobile operator in the country in which they operate: Unitel in Angola; MTC in Namibia; CV Telecom in Cape Verde; and CST in Sao Tome and Principe. |
Implications | The total of 8.033 million subscribers by 30 June 2010 was a 20.1% increase over the same period of 2009, and a net increase of nearly 500,000 in the first six months of 2010. |
Outlook | These operators reported continued growth during the third quarter, with MTC reaching 1.5 million subscribers and CST reaching the 100,000-subscriber milestone. |
Portugal Telecom's sub-Saharan African subsidiaries have reported a total of 8.033 million subscribers as at 30 June 2010. The figure compares with 7.527 million subscribers as at 31 December 2009 and 6.688 million in June 2009 (subscriber data for the third quarter of 2010 are unavailable) (see Sub-Saharan Africa: 4 March 2010: Portugal Telecom Reports 7.5 mil. African Mobile Subscribers).
Portugal Telecom owns a 75% stake in Africatel—the unit Portugal Telecom created in 2006 for its sub-Saharan African subsidiaries—following the sale of a 22% stake in August 2007 and a 3% stake in September 2008. The four Africatel subsidiaries are:
- Unitel (Angola);
- Mobile Telecommunications Ltd (MTC) (Namibia);
- Cabo Verde Telecom (CVT) (Cape Verde); and
- Companhia Santomense de Telecomunicações (CST) (Sao Tome and Principe).
The largest subsidiary is Unitel, the GSM operator that reported a 22.6% increase in subscribers to 6.2 million by 30 June 2010. Africatel holds a 25% stake in Unitel, which currently competes with Movicel, which operates a CDMA network and has rolled out both CDMA 2000 1X and CDMA 2000 1X EV-DO networks. In neighbouring Namibia, MTC reported overall growth of 18.2% to reach 1.437 million subscribers by 30 June 2010, and went on to reach the milestone of 1.5 million subscribers in October (see Namibia: 8 October 2010: MTC Reaches 1.5 Mil. Subscribers). Africatel holds a 34% stake in MTC. Despite the entry of second operator Leo, MTC has increased its subscriber base by 50% from 1 million subscribers in the third quarter of 2008 (see Namibia: 22 September 2008: MTC Reaches One Million Namibian GSM Subscribers). In March 2007, Namibia's second mobile operator, Cell One (now Leo), launched services; the fixed-line operator Telecom Namibia is also now offering CDMA mobile voice and data services.
CV Telecom reached a total 305,000 mobile subscribers—a 16.9% increase compared with 261,000 subscribers in June last year. Africatel holds a 40% stake in CV Telecom. Meanwhile, CST—the incumbent in Sao Tome and Principe, in which Africatel holds a 51% stake—reported a total 91,000 subscribers by June 2010 compared with 61,000 in June 2009. CST has since reached the landmark of 100,000 mobile subscribers, a 24% increase compared with 81,000 in December 2009 (see Sao Tome and Principe: 30 December 2010: CST Reaches 100,000 Mobile Subscribers in Sao Tome and Principe). Portugal Telecom also formally exited its holdings in fixed-line incumbent Guiné Telecom and its mobile arm Guinétel during the year (see Guinea Bissau: 26 October 2010: Portugal Telecom Exits Guiné Telecom).
Africatel Subscribers 2008–10 (’000) | |||||
Country | Q2 2010 | Q4 2009 | Q2 2009 | Q4 2008 | % Annual Growth Rate |
Unitel—Angola—Mobile | 6,200 | 5,700 | 5,059 | 4,572 | 22.6% |
MTC—Namibia—Mobile | 1,437 | 1,363 | 1,216 | 1,078 | 18.2% |
CV Telecom—Cape Verde—Mobile | 305 | 291 | 261 | 252 | 16.9% |
CST—Sao Tome and Principe—Mobile | 91 | 81 | 61 | 51 | 47.4% |
Guinea-Bissau | - | - | - | - | - |
Total | 8,033 | 7,527 | 6,688 | 6,042 | 20.1% |
Source: Portugal Telecom | |||||
Outlook and Implications
In June 2005, Portugal Telecom announced that it was consolidating its dozen or so African holdings into a single holding company, called PT Africa (see sub-Saharan Africa: 8 June 2005: Portugal Telecom Consolidates African Assets Into New Operator 'PT Africa'). Following the acquisition of a majority stake in a Congolese mobile operator and the acquisition of a 34% stake in Namibia's MTC, PT Africa holds stakes in 3 fixed-line operators, 6 mobile operators and a number of ISPs and other service providers (see Democratic Republic of Congo: 2 March 2006: Portugal Telecom Acquires 51% Stake in DRCongo Mobile Operator). Except for CST, the operator holds minority interests in all these operators. The new, reformulated entity, called Africa Holding, notably excludes Morocco's Medi Telecom (MediTel) and now consists of three fixed-line operators, five mobile operators (plus a management contract for Mascom in Botswana), as well as a number of other assets.
Portugal Telecom holds a 75% stake in Africatel. In August 2007, Portugal Telecom announced that it had sold a minority 22% stake in the newly created Africa Holding unit for US$171 million to Helios Investors LP (see sub-Saharan Africa: 15 August 2007: Portugal Telecom Sells 22% Stake in Repackaged "Africa Holding" Unit). Under the terms of the agreement, Helios initially acquired a minority 22% stake for 125 million euro (US$170 million). Portugal Telecom also sold a 3% stake in Africatel for 9 million euro during September 2008.