Income of Mozambican operator mCel up 32 percent

4 August 2006

Maputo, Mozambique, 04 Aug – The operating income of mCel grew by 32 percent last year, benefitting from a sharp rise in the number of customers and in network coverage, Mozambique’s biggest mobile operator announced Friday.

The operator, controled by Telecomunicações de Moçambique (TDM), recorded profits of 3.4 billion Mozambican new meticals (US$126.99 million) in 2005 and trading income of 384 million contos (US$14.3 million).

According to mCel, the number of customers surpassed 1 million last year, 55 percent more than at the end of 2004, while the market share increased to 70 percent.

The growth was due to increased coverage and expanded network infrastructure, mCel indicated.

The operator’s network coverage increased by 48 percent in geographic terms to cover 70 percent of the population.

The number of roaming agreements with operators from other countries totaled 231 at the end of 2005, mCel stated.

Founded in 1997, mCel covers Mozambique’s main urban centers using a GSM mobile telephony network.

Its main shareholders are TDM, with a 74 percent stake, and IGEPE (Institute for the Management of State Holdings), with 26 percent.