Orange brand to launch in Uganda

Uganda has about five million telecoms customers

France Telecom says it will launch its Orange mobile network in Uganda within "months" and will invest $200m (£115m) in the network over three years.

The move comes after the French firm acquired a 53% stake in Ugandan mobile phone operator, Hits Telecom.

The company said Uganda's current mobile phone penetration rate of 17% offered "major prospects for growth".

This is France Telecom's 16th African operation, following Orange's launch in neighbouring Kenya in September.

Cheap communications

The deal - which was completed for an undisclosed fee - came after France Telecom said it would concentrate on acquisition opportunities in emerging markets in Asia and Africa following its abortive hostile bid for Nordic operator TeliaSonera earlier this year.

The acquisition of a majority stake in what was called Hits Telecom Uganda pairs the French giant with mainly Abu Dhabi-based Middle East and African shareholders.

Orange Uganda will operate within "the coming months" according to the company, who told the BBC the commercial launch would take place by March 2009 at the latest.

Uganda, which has a population of 30 million, has about five million users of telecoms services.

Last month, the Orange brand was launched in Kenya. France Telecom had bought a 51% stake last year in the incumbent operator Telkom Kenya.

Across Africa, mobile phone connections are rapidly outpacing landlines and bringing cheap communications to rural areas.

The growth of mobile phones is seen by some experts as helping to bring rural areas out of poverty.