Africa’s largest telecom service provider, MTN has released a statement that it is currently in negotiations with Orascom to buy a part or all of it.
The talks that MTN are having with Orascom’s parent company, Weather Investments SpA, may bear fruit for MTN. It may succeed in buying Orascom or at least certain businesses of Orascom. The South Africa based company and Orascom, both have confirmed that the negotiations are still in progress.
MTN is looking forward to expanding its already large hold over the middle-east and Africa. Major telecom companies of the world like Vodafone are seeking to expand their network in Africa.
A substantial decline in communications cost is supposed to happen in the countries of South Africa and Zambia. This is after the authorities of both countries made decisions and announcements regarding the mobile inter connection fees set by all the telecom service providers.
The global telecom community is increasingly being attracted towards Ghana as the market potential of Ghana is suddenly becoming clear. Ghana has one of the highest levels of penetration rates in terms of internet. It has an average penetration of about 5% in the urban areas in terms of internet, in a continent which doesn’t have an average penetration of more than 1%. The country has close to 65% penetration in mobile telephony. However, close study reveals that many people are having connections to multiple networks. Hence, 65% may not be that realistic a figure.
People of Africa do not enjoy the benefits of digital media because of the extremely low usage of internet in the continent. Despite being the second largest continent in the world, Africa has an internet penetration of only 4% of the world. The rest of the world takes the cake with 96%.