With the strategy of extending its coverage, Movitel has won the best practises award against stiff competition from Mozambican telecom giants such as the Vodacom Group and TM.

Movitel’s network coverage has doubled in rural areas in just over a year, generating over 20,000 jobs for local people.

Mozambique’s strong growth in the telecommunications sector has been internationally recognised with two prestigious awards within the space of a year.

The American Research and Consulting firm Frost and Sullivan presented Movitel with Competitive Strategy Leadership award in mobile communications on 15 August 2013 in Cape Town, South Africa. Movitel’s strategy of extending service coverage received a nine of ten mark from Frost and Sullivan. The grade is near to double that given to other major companies such as Vodacom and TM. With 50 years of experience in market research, Frost and Sullivan appreciated the competitive strengths of Movitel. “Movitel has been very smart to invest in the future with its strategy on popularising its telecommunication service for a majority of the Mozambicans who are low-income earners. Instead of promoting the service only in urban areas and among high-income earners, Movitel has expanded its network to widely introduce its service through many social programmes such as free Internet for schools or subsidised service charges. This enables rural people to access their services to improve their life and they then become customers,” commented the experts.

Frost and Sullivan’s statistics revealed that the Mozambican market had been very competitive before the advent of Movitel. Other rival companies had been present in Mozambique for more than 10 years and they had a number of competitive strengths and good knowledge of local culture and habits. Movitel’s unique approach saw it gain ground and overtake its long-entrenched rivals.

Movitel has provided mobile coverage to 80% of the new subscribers in Mozambique, generating over 20,000 jobs for rural people. Millions of teachers, pupils and students have used its services through the free internet programmes at 4,200 schools nationwide. Nearly 70% of the telecommunication infrastructure in Mozambique was built by Movitel. 30% of the country’s communes have received their first ever network coverage. Telecommunications infrastructure density has doubled in Mozambique while network coverage in rural area has increased from 35% to 70%. Along with Nigeria and South Africa, Mozambique now stands among the top three countries in the Sub-Saharan Africa to have a modern telecommunication network infrastructure.  Mozambique’s telecommunication sector is now ready to apply senior management models such as e-government and develop information and communication technologies in healthcare, education and the economy.

Movitel CEO Safura Da Conceicao Spoke at the awards ceremony. “This is the award for the telecommunication sector and the people of Mozambique for their endless efforts during the past period. Movitel has been granted the award on behalf of them. This is the honour for Mozambique and I would like to convey Movitel’s sincere gratitude to the government, relevant branches, the people, our customers and other telecommunication companies who have supported Movitel,” said Safura.

Director General of the Mozambican Communications Regulatory Authority, INCM, Americo Muchanga was also present at the event. “The appearance of Mozambique’s telecommunication sector has been completely renewed and globally recognised for the gigantic contribution made by Movitel,” said the Director General.

Movitel won the award for the best solutions in extending and improving telecom services in rural and underserved areas in Africa almost a year ago. Movitel has now received global recognition after taking two prestigious awards in Africa within a year.

BOX: Movitel has developed more than two million subscribers in its first year of business, accounting for 80% of the new subscribers in Mozambique. The company has built 70% of the country’s telecommunication infrastructure. The expansion of the Movitel network has brought network coverage to 30% of the communes and to over four million people. In rural and remote areas, network coverage has doubled with an increase from 35% to 70% of the population having access to network services. 2,500 schools or 60% of the committed schools have received free Internet access. Movitel currently employs nearly 20,000 local people. They work as company agents, sales staff, building contractors and station guards. (Movitel employs local residents to work in sales group who promote door-to-door services. There are one sales group in a district, one or two salesmen in a commune).

Award Information:

–          Competitive Strategy Leadership Award is among the category of Best Practice Award granted by market research consulting firm Frost and Sullivan. The annually announced award was granted to Movitel for its achievements during its first year of operations in Mozambique.

–          Frost & Sullivan was founded in 1961. The firm now has 1,800 market analysts working in 40 offices around the world.

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Disclaimer: The views and opinions expressed in this article/press release are those of the authors and do not necessarily reflect the approved policy or position of the GSMA or its subsidiaries.

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