A strategic investor in Tanzania Telecommunications Company Limited (TTCL), a Germany and Dutch Consortium, will soon take-over the company to revamp its operations.
The Detecon/MSI, which is a Germany and Dutch Consortium, was in June this year acquired 35 percent shares in TTCL, the only company in Tanzania offering landline phones. The executive Chairman of the Parastatal Sector Reform Commission (PSRC), Mr. John Rubambe has said that a meeting to thrash out modalities of the company's hand-over was held in Dar Es Salaam recently.
He said apart PSRC officers at the meeting were the investor and the treasury. He did not say a specific date for the hand over, but has said that all of modalities for the hand over were in place and the government will soon provide the company to a strategic investor. In June this year, the government through PSRC declared Detecon of Germany and MSI of the Netherlands, as the preferred strategic partner for the TTCL. The consortium acquired 35 percent shares in the firm worth US$120 million. The consortium has committed itself to increase the number of connections from the present 162,000 to 800,000 in four year's period.
The government launched the tender to privatize TTLC at the end of June 1999. Letters of invitation were sent to almost 120 organizations to participate in the privatization of the only landline Phone Company in Tanzania, TTCL through an issue. Over 29 telecommunications showed their interest, nine of them substituted the pre-qualification documentation. Only six of them were pre-qualified. Apart from Detecon and MSI, bidders who were pre-qualified include an Indian consortium of Mahanagar, Telephone Nigam Limited (MTNL), Telecommunications Consultants India Limited (TCIL) and Videsh Sanchar Nigam Limited (VSNL), Mauritius Telecom, MTN of South Africa, Sasktel of Canada and Vodacom of South Africa.
Detecon and MSI are already operating telecommunications networks in 13 African countries and are expected to bring their regional experience to Tanzania. The PSRC said with such a new move, Tanzania would be the ultimate winner following better services, which the consortium has committed to provide.
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