On September 7, Africell announced its decision to leave Uganda after operating in the East African country for seven years. The decision saw the U.S-owned company become the latest network operator to throw in the towel and exit a market dominated by two pan-African telecom behemoths.
A statement issued by Africell blames tough competition from the local units of MTN and Bharti Airtel, both of which account for more than 90% of the market share. The remaining 10% is split between three or four other nationwide operators including Africell and Uganda Telecom.
South Africa-based MTN Group, Africa’s largest telecoms operator, entered Uganda in 1998 and has since established dominance in the market; largely due to first-mover advantage and significant investments the business has made in Uganda. Continue reading
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