Zamtel to invest $23m in Internet services (Zambia)
Zambia’s largest fixed-line Phone Company, Zambia Telecommunications Co., or Zamtel, is planning to invest at least $23 million in its network across the country in a bid to improve Internet services.
According to company’s CEO Kennedy Mambwe, the project is a rollout plan that is aimed at ensuring all districts in the country attain improved Internet services by the end of February.
Last year, Libya’s LAP Green Networks bought a 75% stake in the former state-owned company for $257 million, beating out bids from groups led by Angola’s Unitel Corp. and Russia’s VimpelCom Ltd. (VIP). The government retained a 25% stake in the company.
Zamtel to start digitizing exchanges (Zambia)
Zambia Telecommunications Company (Zamtel), the country’s state-owned fixed line incumbent, has reportedly commenced the first phase of a project costing around US$23 million under which it will decommission its analogue exchanges.
It is understood that Zamtel will replace the old analogue exchanges with digital alternatives, which it claims will allow it to offer its fixed line customers additional features, including broadband, audio and video conferencing and missed call notifications.
The first phase of the programme, which follows a successful pilot at the Woodlands exchange in Lusaka, will run until January 2011, during which time exchanges in Ridgeway, Chinika, Emmasdale and Lusaka will be upgraded.
According to Zamtel’s chief communications officer, Amon Jere, the second stage of the project will see the digital upgrades take place nationwide, and will begin in the first quarter of 2011.
Zambia to hold talk with two suitors for Zamtel sale
www.WirelessFederation.com/news: Zambia Development Agency (ZDA) has selected two firms for talks to buy a majority stake in Zambia’s fixed-line phone operator Zamtel. The two firms are Angola’s Unitel and Libya’s LAP Green Networks and the talks are expected to start later this month for the purchase of 75 percent of Zamtel.
Despite monopoly rights, Zamtel which is Zambia’s only licensed fixed-line provider of voice and data communications has performed poorly and its revenue for the year to end-December was $100 million. It has also been criticized by opposition politicians and trade unions, who say Zambians should hold a bigger stake in the company.
According to Zamtel, ZDA Director General Andrew Chipwende, the company is expecting to commence concessions with the two bidders for Zamtel by the third week of April and the target is to try and conclude the process by the end of June.
Indian telco MTNL backs out from Zamtel buyout plan
www.WirelessFederation.com/news: After BSNL’s back out, another state owned Indian telco MTNL has too decided to abandon the bid to buy out Zambian telco Zamtel. Earlier, both BSNL and MTNL were to make a joint bid for 74% stake in Zamtel, but the combine did not submit a financial bid.
MTNL has been suffering financial loss over the past two years and lost Rs 894.95 million in the quarter ended December 2009. According to MTNL chairman and managing director Kuldip Singh, the losses are on account of pension payment but the company expects to be in profits in the January-March 2010 quarter, besides, it is still keen on Africa and will look for acquisitions there.
Bids were invited by the Zambian government last year to sell 74% stake in Zamtel which is the only landline operator, with revenues of $100 million in 2008. MTNL had bid for licenses in several countries across Asia and Africa, including Kenya, Sri Lanka, Saudi Arabia and Bhutan, but the limited funds failed its attempt.
Zamtel to receive fibre pairs of Zesco by Zambian govt
www.WirelessFederation.com/news: In a move to make Zambia Telecommunications Company (Zamtel) more attractive to potential buyers, Zambian government might offer a number of fibre pairs to the operator which are currently controlled by state-owned power company Zesco. Seven of twelve fibre pairs that Zesco has will be transferred.
Of the remaining five, two are used by Zesco to manage its power network; one is used by South Africa-based MTN, which owns a mobile operator in Zambia, while the last two are not currently in use.
Currently, Huawei is in the process of rolling out a fibre backbone for Zamtel, but it remains incomplete and by comparison to Zesco’s existing infrastructure is significantly less expansive.
Altimo of Russia joins bidding in Zamtel privatization
www.WirelessFederation.com/news: According to a research agency, the fourth bid from Russia’s Altimo has been accepted for controlling a stake in phone company Zambia Telecommunications Co.
The bid was submitted five minutes after the deadline which was December 23. Therefore it was not added to offers from Libya’s LAP Greencom Ltd together with LAP Green Networks, Angola’s Unitel Corp. and India’s state-owned Bharat Sanchar Nigam Ltd that day.
The short-listed bidders have been called for conducting further due diligence on Zamtel. They will be asked to submit a binding bid for a majority equity stake. The details of the next phase of privatization and of the indicative bids will be revealed on January 11.
In September, ZDA had announced that it was selling Zamtel, which also owns mobile-phone operator Cell-Z and Internet service provider Zamtel Online.
Zambian government under pressure to release Zamtel valuation report
www.WirelessFederation.com/news: Zambia’s civil society organizations have pressurized the Government to release the valuation report it commissioned to sell its majority stakes in a fixed line incumbent Zambia Telecommunications Company (Zamtel).
According to Fackson Shamenda, former Zambia Congress of Trade Union president, there has not been much transparency in the sale of Zamtel and with the release of the information the potential concerns over the sales will be cleared.
Earlier this year the government had appointed RP Capital to evaluate the telco’s assets, after deciding to sell 75% stake in Zamtel. However they never released the report. This led to complaints saying that there has been no transparency in the process.
According to The Zambia Development Agency (ZDA), eight companies including Portugal Telecom, Orascom Telecom and Vimpelcom have pre-qualified for the stake sale, and those firms are due to complete due diligence today, with bids due by midday. The ZDA will release the identity of those companies that have submitted bids for the stake and after reviewing the bids announce the shortlisted candidates on January11.
Telcos of India, Libya & Angola bid for Zamtel
www.WirelessFederation.com/news: Three companies from India, Libya and Angola, have submitted their bids for state-run Zambia Telecommunications Co. also known as Zamtel in its partial privatization.
The bidding period ended with the submission of these three offers in Zamtel, informed the acting director general of the Zambia Development Agency, Muhabi Lungu.
According to Lungu, LAP Green of Libya, Unitel of Angola and Bharat Sanchar Nigam of India have submitted their offers to buy up to a 75% stake in the company.
In October the list of suitors had came down to eight from the 30 firms who had earlier shown interest. Criticizing the sale, the opposition party said that Zambia should retain a larger stake in the company. The shortlisted candidates will be announced by January11.
Celtel plans to invest $70m for its network (Zambia)
An effort to boost the subscriber base from 2.3 million to 2.7 million, Celtel Zambia has announced plans to spend some $70 million on its network. The firm reported net profit for the 6 months rose to $34.3 million compared to $29.9 million in the same period last year.
The company, which controlled by Zain, offered 20% of its stock for the floatation. The sale was three-times oversubscribed from both domestic and overseas investors. The current shareholder profile is 78.9% held by Zain – via Celtel International, 20% in free float and 1.1% held by the International Finance Corporation (IFC).
“Customer numbers exceeded 2.3 million in June. We are optimistic we will reach our target of 2.7 million, said Celtel Zambia MD David Venn. High taxes on imports of network infrastructure kit of 25% is hampering the company’s plans warned Venn. The company is lobbying the government to have this tax lowered, and also on licenses for 3G services.
Statistics shows that Celtel ended last year with just under 2 million customers – and a market share of nearly 78%. The country itself has a population penetration level of just 21% and two other operators, Zamtel and MTN.
