A DEUTSCHE Telekom-led consortium has concluded a $120m deal to buy a 35% stake in Tanzania’s state-owned telephone monopoly and take over management control, a government representative said this week. Detecon, a subsidiary of Deutsche Telekom, along with Dutch group Mobile Systems International Cellular will pay the amount directly to the Tanzania Telecommunication Company in the form of capital increase, putting the company in a position to expand rapidly, said Frank Mdimi, representative for the government’s privatisation commission. The new company expects to invest $900m over 10 years in infrastructure. The consortium has also won a four-year exclusivity period to provide basic telephone services in the East African nation. It has promised to build a new GSM cellular network and to expand the company’s 162_000 subscribers by 500%. “The exclusivity period is meant to enable the investors to expand and strengthen their operation before competitors are allowed into the market,” said Mdimi. – AFP
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