Telekom Networks Malawi (TNM), the country’s second-largest mobile telecoms operator, said on Wednesday it planned to acquire leading Internet service provider Burco to diversify its business.
The new Universal License issued to TNM by Malawi Communications Regulatory Authority (MACRA) allows TNM to supply all possible telecommunication services to its customers.
TNM, whose main rival is the local unit of India’s Bharti Airtel, said in a statement it had submitted applications to Macra and to the stock exchange.
“TNM believes this acquisition will enable us to establish and deliver a broad range of telecommunications services to our business customers, as well as providing enhanced services to Burco’s existing customers,” it said.
The operator plans to use part of its $25 million infrastructure expansion budget for the acquisition, it said.
“TNM aims to accelerate the growth of ISP services in Malawi which it currently provides to its customers through mobile devices with faster innovation, increased synergies, unified branding and marketing,” the statement said.
By acquiring the existing infrastructure from Burco TNM will prevent duplication and thereby create the opportunity to lower the long term cost of services to customers.
TNM, majority owned by Malawian conglomerate Press Corporation, has more than 2.5 million subscribers in the African country of 16 million people.
It posted a 48 percent jump in revenue to 17.5 billion kwacha ($37 million) in the first six months of this year, while its shares have risen 90 percent so far in 2014.