17th APDC Congress – Visabeira expands investment in Angola and Mozambique next year

Sapo opens laboratory at the University of Aveiro

The development of the network it maintains in Africa remains an investment priority for the Visabeira Group, which wants to strengthen the network in Angola and Mozambique next year. The company is currently in the process of restructuring, with the creation of a sub-holding company and foresees the dispersion of capital on the stock exchange next year, financing the growth of the Group.

Paulo Varela, vice-president of Grupo Visabeira and chairman of the board of directors of Visabeira Telecomunicações, said ahead of the conference «The vision of investors» at the 17th Communications Congress that the company has studies to advance to Sudan, Kenya and the Democratic Republic Congo, which are already advanced. «Next year, we should start operations in one of these countries,» he says.

The model that the company applied in Angola and Mozambique should be replicated, starting from partnerships with local operators and adds that in Sudan this partnership may be with Sudatel. The investment until 2010 in the operations of Angola and Mozambique will be between 70 and 80 million euros, but it may be extended to another 30 to 40 million with the expansion to other provinces.

Regarding the cable networks that the company already owns in Angola and Mozambique, the objective is to move to new regions, a process that will start as early as next year in Mozambique and in the first quarter of 2009 in Angola. Paulo Varela admits that these operations do not have the breadth and dimension that operations in Europe, but that the ARPU and customer adherence indicators are interesting, which brings good profitability to the operation.

In Mozambique, the company is present in the south, in Maputo and in the neighboring areas, and plans to move forward to the center and north next year. Currently, the number of cabled houses is 35 thousand and the penetration in terms of customers is around 50%, with 27 to 28 thousand services sold.

In Angola, the possibilities for expanding the network are also being studied. Visabeira has 40,000 cabled houses and 22,000 customers and is finalizing the infrastructure in the Greater Luanda area, where 4 million people reside. From the beginning of 2009, the objective is to move to other regions.

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