The expansion is aimed at maintaining a 30 per cent buffer zone between subscriber numbers and network capacity during anticipated steep customer growth. Current subscriber numbers stand at about 340,000, and Q-Tel anticipates growth to 460,000-530,000 subscribers by the end of 2005. 'We expect very large increases in subscriber numbers over the next few years,' says Q-Tel executive director of wireless services Ross Cormack. 'By the end of 2005, penetration should reach 70-80 per cent, one of the highest levels in the world.' In early August, Q-Tel posted a 12 per cent increase in first-half profits on the back of a jump in revenues from GSM services as subscriber numbers increased by 58 per cent year-on-year (MEED 1:8:03).

The limited size of the local market and the expiration of Q-Tel's monopoly in 2013 is causing the company to look at opportunities to invest overseas. 'We are on record as being interested in acquiring a stake in Maroc Telecom, and are looking at new-build investments in three other markets,' adds Cormack.