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Strategies & Market Trends : Three Amigos Stock Thread

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To: Sergio H who wrote (6142)	6/18/1998 10:04:00 AM
From: milesofstyles	Read Replies (1) of 29382

this just in... EXCERPTS FROM INTERVIEW WITH CEO OF AFRITEL ON ACQUISITION BY Electric & Gas Technologies, Inc. DALLAS, June 17 /PRNewswire/ -- The following information is submitted by Mr. Roger Blott, CEO of AfriTel from an interview on the merger of AfriTel with Electric & Gas Technology, Inc. (Nasdaq: ELGT). Q: Why was AfriTel acquired by ELGT? A: ELGT saw the AfriTel opportunity as one that could satisfy its ambitions to bring increased value to shareholders and to diversify into telecommunications. Q: What is the benefit to AfriTel? A: ELGT is a Nasdaq-traded company with an appetite to invest in telecommunications in high-growth areas, and AfriTel needs investments, so there is a natural fit. AfriTel is ambitious in its plans to grow and grow into this sector. Q: Who will run AfriTel? A: AfriTel will have its own board and management consisting of experienced professionals. Q: Why is AfriTel investing in Africa, and why in the Congo? A: Sub-Saharan Africa represents one of the last untapped markets for telecommunications in the world. Penetration of telephone lines is below 1% in most countries. The existing operators typically offer poor service and enjoy high margins. There are opportunities to acquire concessions and develop fast-return businesses. Q: What licenses does AfriTel have? A: In the Congo we have a license to operate a wireless local loop system -- fixed phones connected to wireless technology. The system is very similar to mobile cellular. The technology we are going to use is the PCS/CDMA standard which is identical to the PCS/spectrum that was used in the USA in 1996-1997. Q: What are AfriTel's plans for the future? A: Our main priority is to get the Congo up and running. Meantime, we are also looking at potential acquisitions and new licenses in central and west Africa. Our goal is to be operational in at least seven countries by the end of 1999. Q: What is the nature of the Qualcomm deal? A: Qualcomm has entered into a supply contract with AfriTel for up to $70m of infrastructure and handsets. The contract is such that the equipment is deployed in modules, with the first one going into the Congo immediately. The others may be deployed in the Congo or elsewhere the AfriTel has an appropriate concession. Qualcomm has effectively entered into a supplier partnership with AfriTel. The infrastructure is to be substantially financed by Qualcomm, and the financing agreement is in the process of completion. The terms are extremely competitive and reflect Qualcomm's confidence in AfriTel as a project.

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