The license to operate a mobile network in Zambia by Unitel’s UZI has expired. UZI, a mobile phone operator, who were set to be the fourth mobile network operator in Zambia, has failed to start its operations due to what has been described as failure to raise insufficient funds.
UZI kept on pushing forward the date to launch its network and the last timeline given to them to launch was end of May 2020. Zicta’s deadline to UZI to launch and begin operations was end of May 2020 as confirmed by the ICT regulator.
When ZICTA was contacted, Manager for corporate communications Ngabo Nankonde acknowledged that the extension given expired on end of May and promised to issue a comprehensive statement this week.
According to records seen by the Zambian Business Times – ZBT, UZI issued a statement agreeing to launch operations in february 2019 an reasons for the delay was because they wanted to insure that the equipment was thoroughly installed.
The Permanently Secretary – PS in the ministry of Transport and Communications, Misheck Lungu had earlier in the year through an exclusive interview with ZBT on January 22, 2020, explained that the delay in the launch of the mobile network was attributed to the lack of resources from its parent company Unitel, as it had requested ZICTA to consider extending its license for 6 months due to challenges in externalizing funds.
Lungu then disclosed that the ZICTA had granted UZI an extension of up to end of may 2020, which is the final expiry date of its initial license period hence hoping that the company begins to operate before the stipulated date.
“UZI faced some challenges with finances from its parent company hence they asked us if we can extend their license to the closure date, so they can find a way of sourcing the required funds. Aside that, they have started talks with companies they would sign contracts with and are planning to rent out towers for them to start their business,” he had added.
UZI’s parent company, Unitel in which one of africa’s richest women, Isabel Dos Santos, the daughter of Angola’s former president owned 25% pledged to invest more than US$350 million into Zambia.
The failure of UZI to launch operations has delayed the Zambian Telecoms market from getting a forth mobile network operator that was expected to enhance competition as well as provide a forth option for consumers. The telecom sector in Zambia only has three players that include publicly listed Airtel, privately held MTN and state owned Zamtel.
