On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Between Q4 2003 and Q4 2004 Huawei increased its revenues from sales of mobile equipment to Africa from USD 65 million to USD 250 million. In Q4 2004 it signed an USD 80 million contract with GSM operator V-Mobile in Nigeria and is supplying GSM equipment to companies across the continent. Huawei has also increased its sales of CDMA equipment to fixed-line and WLL operators in Africa.

- According to EMC data there were 8.83 million mobile subscriptions in Nigeria at the end of December 2004, with MTN leading the market after passing the three-million customer mark in November 2004. Tough competition has pushed the operators to drastically lower entry costs for new subscribers by offering SIM cards for NGN 1 (less than USD 0.10). EMC predicts Nigeria will easily exceed the 10 million subscription mark before the end of 2005. With population coverage currently only at about 56%, networks are still expanding massively (for example Globacom has increased its switching capacity from one million to eight million between Q2 2004 and January 2005 and plans to raise it to 10 million by the end of 2005).