Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited

Kasanga, Edwin Ibrahim Kikuli (2005) Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Tanzania embarked on a liberalisation program of its different sectors including telecommunication industry during the mid 1990's. The decision to privatise Tanzania Telecommunications Company Limited (TTCL), a state owned enterprise was based on the goal to improve its quality and quantity of services by way of private investor.

Prior to TTCL's privatisation, the Government of Tanzania (GOT) undertook a US$250 million Telecommunication Restructuring Program (TRP) with assistance from the World Bank and international donors to revamp the telecommunication infrastructure and restructuring of TTCL.

TTCL privatisation was advertised in the local, regional and international press and the sale process was managed and supervised by the Presidential Parastatal Sector Reform Commission (PSRC), a government body responsible with the privatisation of state owned enterprises.

The advertisement attracted a number of bids and after evaluation the bid was won by a consortium of Celtel International (formerly MSI Cellular) of Netherlands and Detecon of Germany who offered US$120 million for a 35% stake with a commitment to increase the number of Direct Exchange Lines (DELs) from under 162,000 to over 800,100 in a four year period. The Government in return handed over to the strategic investor both the board and management control of the company in February 2001 after the investor had paid US$60 million and a guarantee for the remaining balance after verification of company's year 2000 financial statement. TTCL was also given exclusivity period for the fixed line and international calls for a period of four years in order to allow for the costs of roll-out of telephone services to historically disadvantaged communities, to provide time for TTCL's restructuring prior to the introduction of competition and as an incentive to the strategic investor.

This dissertation has analysed the telecommunication industry and failure of TTCL's performance after privatisation and recommends the way forward for the regulatory framework and improvement of company's performance.

Item Type: Dissertation (University of Nottingham only)
Keywords: Tanzania Telecommunications Company Limited, TTCL, MSI, Celtel International, Celtel, Detecon, Telecommunications, GOT, Government of Tanzania, TRP, Telecommunications Restructuring Programme, DELs, Direct Exchange Lines
Depositing User: EP, Services
Date Deposited: 08 Dec 2005
Last Modified: 27 Sep 2016 08:38
URI: http://eprints.nottingham.ac.uk/id/eprint/20064

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