Malawi: GAIN awarded mobile cellular operator licence in Malawi

A local consortium, Global Advanced Integrated Networks Limited (GAIN) has been awarded an individual license to provide mobile telecommunication services in Malawi beating five others who applied.

“After an evaluation of bids received by MACRA in response to the invitation to apply for a mobile telecommunication service operator licence, the Board of MACRA selected GAIN following a highly scrutinised process,” said MACRA public relations manager, Zamdziko Mankhambo.

“It is hoped that GAIN will contribute to the promotion of the development of information communication technologies (ICTs) in both urban and rural areas of the country,” he added.

“After gazetting it, then three or more months down the road, the company will roll out services but it won't be later than a year,” Mankhambo explained.

The MACRA Board also reviewed the process leading to the award of the second network fixed line operator (SNO) licence which was under intense dispute due to what other quarters called "interference" from Minister of Information and Civic Education, Patricia Kaliati.

“The Board was satisfied with the licensing process to award the Licence to Access Communication Limited (ACL),” he said.

A MACRA statement says it is envisaged that the emergence of the two additional operators will promote competition in the telecommunications industry in the country thereby increasing the quality and affordable telecommunications services in Malawi for the benefit of all stakeholders.

Government issued a licence to a second-fixed authorised fixed line provider, ACL, but the company failed to take off as it baulked under licence awarding controversies.

The Malawi Regulatory Authority (MACRA) accused the Information and Civic Education Minister of personally directing it to award a licence to ACL in October 2006.

Minutes of the MACRA Board's meeting of October 2006 resolved to re-advertise because four companies that applied for the licence did not meet most of the crucial requirements for them to be granted a licence.

“Although Lilongwe-based AirTel Communications scored the highest followed by Access Communications, the two companies did not qualify on other areas,” the minutes says.

However, early last year, Kaliati directed the Board to award the licence to ACL without any valid reasons.

“Following the Minister's directive the board held an extraordinary meeting on May 25, 2007 where it adopted the directive and awarded a licence to Access Communication Limited,” reads the Board statement released at the end of last year.

In reactions to these revelations, Kaliati said in an interview that she made the mistake of making the directive because she was misled by MACRA officials.

“I blame MACRA officials because of their dishonesty. They never informed me that the process had impeccable anomalies,” she said.

ACL had proposed to roll out 80,000 telephone lines to subscribers in five years. ACL had said it will invest over US$56m in implementing their operations and the company was expected to start its activities in three months' time upon getting the licence.

ACL would provide 20,000 lines in the first year of its operations and expand as time goes.

Government sold the only fixed line operator in the country on December 13, 2005 to a consortium called Telecom Holdings Limited (THL) against heavy opposition from the civil society organiSations.

The company was sold at US$2,7m, which the civil society institutions contended was too meagre.

At the time of sale, MTL was believed to be making a total of US78,5m in sales from fixed lines a year, which was three times the value of its sale price.

MTL has over 80,000 lines but has been unable to reach out to all the areas in need of the services in the country.

Two years ago the government issued a licence to a third mobile phone service provider called Malawi Mobile Limited, but the project could not start due to a litigation against one of its share holders who was accused of giving out kickbacks to facilitate the acquisition of the investment. The matter is still in court.