[2008-08-26]  Econet loses bid to operate in Malawi
ECONET Wireless Holdings has lost its bid to start operations in Malawi, hampering its efforts to spread its wings on the continent.
According to a Malawian newspaper Malawi Nation, Econet Wireless, a company that started in Zimbabwe 10 years ago, was among three companies that applied for a licence to operate a third mobile telephone company in the country.
But the Malawi Communications Regulatory Authority announced that Global Advanced Integrated Network, a consortium of African investors, was granted the licence — elbowing out Econet and another applicant, United States-based Millennium Global Telecom.
Bids for the third mobile network licence were invited after Malawi had withdrawn a licence granted in 2003 to Malawi Mobile, a consortium of South African and Malawian investors, when the consortium failed to roll out the network within the stipulated period.
Malawi's existing mobile network operators are TNM, a consortium of African investors, and Celtel Malawi, a subsidiary of pan-African mobile network operator Celtel International.
The two firms share a market of one million active cellphone users.
Since its inception in Zimbabwe in 1998, Econet has grown to command a big market share and is now active in 15 countries across four continents.
In Zimbabwe the company is the largest mobile service provider with more than 650 000 subscribers.
Apart from Zimbabwe, the company is also operating in Botswana and Kenya, among others.
Econet pioneered technology which created Africa's first SIM card that can accommodate two numbers that can be used interchangeably depending on the customer's need.
It was also the first company to stream radio news from the British Broadcasting Corporation and South Africa Broadcasting Corporation via the cellular phone.
Econet Wireless made history a year ago when it became the first African company to win a 3G licence in New Zealand.
Source: The Chronicle