TTCL shares' dispute nears end

BabuK · 2014-10-16T09:49:04+00:00

TTCL Chief Marketing and Sales Officer, Peter Ngota Discussions between the government and Bharti Airtel with regard to the 35 per cent shares of Airtel in Tanzania Telecommunications Company Limited (TTCL) are expected to be concluded this month having dragged along for over a year. Conclusion of the talks might enable the government to own 100 per cent shares of TTCL allowing it to implement its stalled business plan with the telecom firm or look for new investors to revive the company. TTCL Chief Marketing and Sales Officer Peter Ngota made the announcement yesterday in Dar es Salaam at a debate session held to find an amicable settlement of the protracted blame game and to discuss solutions to bridge the gap between carriers and regulators. The discussions are going to be concluded this month and will give the government opportunity to own 100 per cent shares of TTCL, Ngota said. Ngota said the government owns 65 per cent in the company while Bharti Airtel owns 35 per cent but according to him, Airtel has failed to adhere to the terms of their contract crippling TTCLs ability to compete. He said as a result of Airtels breach of contract, TTCL has been underperforming tainting its public image. Ngota explained that Airtel breached terms of contract because it was supposed to install infrastructures that it has not to date. Further, he pointed out that apart from its shares in TTCL, the government also owns 40 per cent shares in Airtel. Both parties will work on possibilities of resolving ownership of these shares, he said. In Airtel, the government owns 40 percent shares while the remaining 60 per cent are for the company itself, while in TTCL the government has 65 per cent shares and Airtel has 35 per centthey will sit down to discuss surrender of shares by one of them, he explained. The TTCL Chief Marketing and Sales Officer noted that despite the challenges, the government has still managed to accomplish many positive things with TTCL including connecting seven African countries with the National ICT Broadband Backbone (NICTBB). He said Tanzania, thanks to TTC,L has become a hub for internet provision across Africa after partnering with Telecom Italy Sparkle to enhance internet connectivity in Eastern and Southern of Africa by offering faster connection speed, improved reliability and cost-efficient connections. In his comments, Deputy Minister of Communication, Science and Technology, January Makamba said a good number of people especially in rural areas are still denied their right to communication. However, he reassured the public that the government is working hard to ensure that all areas in the country that have not been connected to communications facilities will be reached by next year. In this regard, he said the government invites individuals and companies under Public Private Partnership (PPP) to invest in the communication sector because the countrys laws and policies allow them to do so. Discussions between the government and Bharti Airtel with regard to Airtels 35 per cent shares in TTCL have lasted for more than a year now. The long discussions between the two sides are said to have been caused by Bharti Airtels rejection of governments offer of 5bn/- offer for its 35 per cent shares at TTCL despite the fact that Bharti Airtel shares at TTCL are valued at only 3.8 bn/-. SOURCE: THE GUARDIAN

Thread starter BabuK
Start date Oct 16, 2014

BabuK

JF-Expert Member

Oct 16, 2014

aye

JF-Expert Member

Oct 16, 2014

mkonowapaka

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