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[November 20, 2009]

New Mobile Phone Firm Launches Today

Nov 20, 2009 (The Monitor/All Africa Global Media via COMTEX) -- Smiles Communications Uganda Limited, the seventh telecommunications company in Uganda is launching its services today.

According to the General Manager, Mr Carrington Philip, the South African firm with the code 02 targets low income earners of less than $2 (Shs3 ,900) around Kampala city. It is expected to roll out and cover the entire country next year.

"We bring to the Ugandan market WiMax platform that uses voice over internet protocol to make calls, the first of its kind on the African continent," Mr Philip said.

"One only needs a pin code number, loaded with airtime to make local and international calls across any network around the world." The firm enters the market when traditional companies; MTN, UTL, Warid, Zain, Oranga and i-telecom are engaged in stiff competition with others enabling the public to enjoy cheap call rates.

Some of the firms even offer clients free calls for 24 hours Mr Phillip said the firm would begin with wireless table phones that would be located in public places including markets, taxis and bus parks.

"We are informed of how the competitors operate and we are going for the bottom of the pyramid business," he told Daily Monitor.

"Enough market research has been done and we are more than 100 per cent in business. Competition in business is healthy and we are here to show that there is a segment of the market that had been ignored." Marketing Manager Twebese R. Mugisha said the firm has employed only 40 workers as a means of keeping the over head costs low.

"You will not see our heavy pick-ups branded with our company name running around town like other telecommunication companies," she said.

"What we have done is to appoint partners who will buy and sell airtime, phones and their accessories in bulk from the company and supply vendors who will in return avail the same to the public." Ms Mugisha said the advantage of the new technology is clients would be able to retrieve SMS, voice mail and contacts on their accounts by logging in using a pin code.

Mr Philip hailed the government for providing a conducive business environment for the telecom industry.

"We have pending applications in several African countries. The Ugandan government granted us license without much difficulty," he said. The company also operates in Nigeria and the Democratic Republic of Congo.

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