Africa Mobile Networks Pumps US$550 million in Investments in Sub Saharan Africa



Africa Mobile Networks has announced that it will invest US$550 million in establishing good networks in Sub Saharan Africa.

The three year investment plan will see the company work with its licensed mobile operators in Africa to increase connectivity.

The company aims to build 5,000 base stations over the next 3 years to increase rural connectivity in sub Saharan Africa. It will target to have over 20 million subscribers who will generate US$650 in revenue initially.

“AMN builds and operates mobile network base stations in rural areas in Africa. The AMN base stations are connected to the core 2G/3G network of the licensed mobile operator and provide voice and data services to the operator’s subscribers,” the company said.

“AMN offers a compelling and risk-free proposition for mobile operators, to extend the operator’s existing coverage deep into the rural areas and acquire new subscribers and generate incremental revenues with guaranteed margins and no capex.”

The company offers to build the base stations which will include 2G and 3G capabilities especially in the rural areas and work out a revenue share base with the selected operators.

The company says that it will be able to increase the revenue stream for the mobile networks in the long run.

The company prides itself in its technology and the solutions they have offered the African market. In rural Africa today, their base stations is providing up to 400,000 voice minutes, 6,000 sms per month in an average of 4,400 people.

“The AMN investment is intended to fill a major gap which exists currently in many developing countries in sub-Saharan Africa, between the population currently served by mobile network services and the total population which can be served economically,” the company said.

Currently (in 2013) only around 66% of sub-Saharan Africa’s 830 million population (14% of the world’s total) is served by at least one mobile operator, and this is projected to grow only to 74% by the end of 2015, leaving more than 200 million people with no telecoms services whatsoever. Of these 200 million people, it is estimated that nearly 140 million can be served economically.