Cash-strapped Mobile Broadband Limited, trading as Vodafone Zambia, has formally announced the sale of the company after failure by its shareholders to recapitalise the firm amid stiff competition in Zambia's data market.

Zambia has 16 ISPs including Liquid Telecom Zambia, Hai, Zamtel and Paratus Telecommunications, a subsidiary of Namibia headquartered Paratus Group Holdings, according to the latest report from the Zambia Information and Communications Technology Authority (ZICTA).

Vodafone Zambia struggled to maintain operations a year after it entered the local market in 2016 and cited financial distress.

In July 2019 the company issued a statement announcing that the delay in recapitalising the company by the shareholders resulted in network outages in Lusaka and the Copperbelt region.

The company said the financial distress triggered a petition by employees to the High Court in Lusaka for business rescue. This led to the appointment of the Business Rescue Administrator Luwita Sayila as the company embarked on the process of acquiring new shareholders.

This led to the introduction of a business rescue plan which covered the comprehensive restructuring of the company's affairs including business, property, debt and other liabilities, and equity.

Sayila has since issued a notice inviting bids to secure new ownership.

Sayila said interested bidders may acquire a complete set of bidding documents as of12 September 2019 upon payment of a non-refundable fee of US$760, adding that bids must be received by 27 September 2019.

"Mobile Broadband Limited hereby invites interested parties to participate in the open bidding tender for the sale of the company. Mobile Broadband Limited reserves the right to reject any and all bids, declare a failure of bidding or not award the contract at any time prior to contract award," reads an excerpt from the notice.