Canartel plans to expand into Darfur and south

October 15, 2008 (CAIRO) — Sudan’s second fixed-line telecom operator said on Wednesday it was looking to expand its fixed-line operations into Darfur and southern Sudan.

Canartel, majority-owned by Etisalat ETEL.AD of the United Arab Emirates (UAE), entered the Sudanese market in 2006 as the first direct competition to Sudatel SDTL.AD, in which the Sudanese government retains a 26 percent stake.

Canartel said it plans to develop its activities with the firm looking to invest at least $50 million creating infrastructure and establishing a presence in the Darfur region of western Sudan and the semi-autonomous south.

“By the end of the year, we hope to be in El Fasher and Nyala, as well as El Geneina and Zalingei,” Mohammed Bouhelal, chief corporate affairs officer for Canartel, told Reuters, noting that peacekeepers there have a need for better communication.

The four towns are in Darfur, where the United Nations and African Union have deployed troops in an attempt to keep peace between the government and Darfuri rebels.

“We are in the south, in Rumbek, and will be moving to Wau and then Juba before the end of the year,” he said.

“The future is going to be there. There is good business in the south, but it is a question of time,” he said, noting the large natural resources, including oil, and an expected influx of $2.5 billion in aid.

Revenue from wholesale and international services make up 70 percent of Canartel’s profits, which have grown by 27 percent this year, Bouhelal said, without giving figures.

Bouhelal said he was confident Sudan’s political troubles would not hinder the firm’s expansion west and south, and that in fact his product could help to promote harmony.

“I think there has been a communication problem in Sudan,” Bouhelal said.

“First of all people should come to a table to discuss things, but communications will also help people to do business together and create mutual interest.”

(ST)