Celtel Begins Operations

CELTEL INTERNATIONAL BV is set to commence full scale operations in the telecommunication industry by the first quarter of this year, CITY & BUSINESS GUIDE has learnt.

The company which has already paid $115 million as part of the transaction purse of Western Telesystems Limited (WESTEL) to government is preparing to enter the Ghanaian market latest before the first quarter of this year.

CITY & BUSINESS GUIDE gathers that the company which is one of the biggest players in Nigeria alongside Mobile Telecommunication Network (MTN) and Globacom is currently studying the telecommunication terrain in the country before unleashing its business.

Though the market seems to be very tough since MTN, OneTouch, Tigo and Kasapa have grabbed a lot of the populace, commanding huge subscriber base, Celtel is unperturbed about competing on the market.

Some market watchers believe Celtel stands a chance of gaining momentum in the industry if it introduces cheap and interesting products.

In late December 2007, Celtel paid part of the transaction fee for acquiring 75 percent shares in WESTEL to government covering Sales and Purchase Agreement (SPA).

In a statement signed by Oboshie Sai-Cofie, Minister of Information and National Orientation, government said Celtel?s holding in WESTEL is expected to reduce to 70 percent within three years when it releases 5 percent of its shares in addition to those to be released and floated on the Ghana Stock Exchange, to benefit Ghanaians.

A subsidiary of Kuwaiti company, Zain (formerly named MTC), Celtel is one of the largest telecommunications company in Eastern and Southern Africa.

In a recent report, Celtel announced the introduction of ?One Network?, the world?s first borderless mobile network to Burkina Faso, Chad, Malawi, Niger, Nigeria and Sudan.

These countries were said to have joined the Republic of Congo, the Democratic Republic of Congo, Gabon, Kenya, Tanzania and Uganda in the network which was initially launched in September 2006 and has been expanded due to increased demand.

The extension of this technological break-through according to the a Corporate Affairs release, now offered the possibility for nearly half of Africa?s population to make calls at local rates across 12 countries throughout the continent.

Meanwhile, CITY & BUSINESS GUIDE has learnt that the current management and workers of WESTEL would be maintained when Celtel begins operations.