Motorola Wins US$75 Million GSM Expansion Contract with M-tel in Nigeria
Motorola turnkey deal allows M-tel to expand its subscriber base
ABUJA, Nigeria – 11 December 2006 – Motorola, Inc. (NYSE: MOT) today announced it has signed a US$75 million GSM network expansion contract with M-tel, one of the leading mobile communications operators in Nigeria. This expansion will enable M-Tel to extend its coverage across Nigeria.
“M-tel is currently re-grouping its business to prepare to lead the business drive for greater growth and penetration in the Nigerian market. We want to increase the availability of our network and to expand our network coverage as quickly as possible to support greater subscriber growth. Motorola implemented M-tel’s original radio network in 2003 and because of the quality of their equipment and their credibility in maintaining that original radio network, we’ve been very happy to turn to them again to expand our network further,” said John Weir, M-tel CEO.
The scope of the expansion project covers installation, commissioning and the upgrading of sites in the cities of Benin, Ikorodu and Yola. With this full turnkey project, Motorola is offering M-tel a solution of Motorola’s network integration services to enable rapid and seamless deployment of all network elements.
Raphael Udeogu, Motorola Nigeria country manager said, “We’re particularly pleased to have been awarded this contract through a competitive tender process. This contract is a testament of the work Motorola is doing in Nigeria and it demonstrates M-tel’s support of Motorola’s corporate governance policy.”
“Motorola foresees substantial growth potential within the Nigeria market. In 1999 there were 500,000 fixed customers and today there are more than 20 million mobile customers and still, there are many regions that are without coverage. The bulk of the network traffic in Nigeria is voice-centric and the expansion will provide much needed data services such as e-mail and Internet. The agreement with M-tel reinforces Motorola’s continuing commitment not only to Nigeria but to the whole of sub-Saharan Africa. Motorola is strongly positioned to provide quality wireless networking solutions in Africa, with local presence, expertise and capability,” Udeogu concludes.
The expansion project is in line with the Motorola Reach GSM portfolio’s aim to enable telecom operators to connect the next billion mobile subscribers by 2010 - through the rapid and cost-effective deployment of mobile services. Motorola Reach underlines the company’s commitment to address the diverse needs and desires of service providers, enterprises and consumers in emerging markets and around the world. Motorola is driving forward with its vision to connect the unconnected and expects the implementation of the expansion to be completed by the end of first half of 2007.
A portion of revenue on this contract was recognized by Motorola in the second and third quarters of 2006. A portion of purchase price will be financed by Motorola.
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Nigerian Mobile Telecommunications Limited (M-tel) established in 1996 provides affordable and reliable mobile cellular services through out Nigeria. M-tel currently has an authorized share capital of N250 million, though the actual equity funding it has enjoyed is in excess of N40 billion. The excess equity funding over the authorized share capital, has been recognized as a deposit for shares. M-tel’s corporate vision is “to be the most preferred and well respected communications service provider in Africa”.
Some milestones achieved by M-tel include:
Execution of Transmission Links in Yola – Maiduguri (720KM) by Motorola,
M-tel is the first GSM operator to install and commission eleven mobile switching centres (MSCs) in Nigeria,
First to deploy Mobile Base Transceiver Station (MBTS),
First to deploy service in 36 states capital and FCT.
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering “must have” products, “must do” experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com
MOTOROLA and the stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2006. All rights reserved.
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