France Telecom expands into Uganda

French carrier France Telecom has expanded its African footprint under a deal with Ugandan new entrant Hits Telecom.

Under the agreement signed at the weekend, France Telecom will take majority ownership of a new entity, Orange Uganda, which will control Hits Telecom’s existing GSM network and telecom assets.

Hits Telecom Uganda acquired a GSM 900/1800 licence for the country last year, with backing from International Investment House (IIH), an investment firm headquartered in Abu Dhabi. The company’s business model includes proposals for cellular, WIMAX, international gateway, MVNO and data transmission services.

The new firm, Orange Uganda Limited, will be 53 per cent controlled by France Telecom, and will absorb all of Hits Telecom Uganda’s staff.

France Telecom said that with a rapidly growing population of around 30 million people and a mobile penetration rate of less than 17 per cent in March, Uganda offers major prospects for growth.