FT hands Hits Telecom Uganda a ‘get-out-of-jail’ card

France Telecom has confirmed that it has acquired a 53 per cent stake in Hits Telecom Uganda, ending months of uncertainty with respect to whether or not the Ugandan licensee’s concession would be revoked.

Hits Telecom Uganda was at risk of having its licence revoked had it not been rescued through the deal with France Telecom

As reported by Comm. in August, Uganda’s telecoms regulator, the Uganda Communications Commission (UCC), had earlier this year warned that Hits Telecom Uganda risked losing its operating licence if it did not commercially launch its network by September. The licensee was granted a mobile concession in March 2007 and was given 18 months from that date to start offering services.

Hits Telecom Uganda has built out part of its network, which is supplied by Alcatel-Lucent, and has carried out test calls, however, planned commercial launch dates were missed.

Hits Telecom Uganda – not to be confused with Hits Africa – had been backed by Middle East and African Investment Company (MEAIC), a private equity firm registered in the UAE, and owned by a number of high profile individuals and institutions of significant means, predominantly from within the Gulf region.

The universal service licence in Hits Telecom Uganda’s possession allows it to operate a range of access technologies including CDMA, GSM, WCDMA and WiMAX, and also permits the licensee to deploy an international gateway.

The cost of the acquisition by France Telecom was not revealed, though it has been speculated that the telco is looking to invest as much as US$375 million in the deployment of a network across Uganda.