Vodacom ‘bidding’ for Zambian mobile licence

Vodacom ‘bidding’ for Zambian mobile licence
By Michael Malakata, ITWeb’s Zambian correspondent.
10 Jan 2013

The Zambian government says that over five firms, including South Africa’s Vodacom, have expressed interest in winning the country’s fourth mobile licence.

Communication, transport, works and supply minister Chris Yaluma; however, said no decision has been made yet regarding the successful bidder and that other interested companies can still bid.

Yaluma adds that his ministry has made progress in clearing the way for a fourth mobile operator in the country. Zambia’s telecom market is currently dominated by Airtel Zambia and MTN which have over 8.5 million combined total number of subscribers.

“I can disclose that my ministry has received bids from over five telecom operators who have expressed interest in setting up a business in Zambia. Among them is Vodacom of South Africa,” Yaluma said.

The Zambian government has said that what is remaining now is to carry out the required legal requirements needed to fully revoke regulations that have been blocking the introduction of a fourth mobile service provider.

Yaluma said once the paperwork is done, an inquiry will be put up for the interested companies.

And the country could see the setting up of the fourth mobile company before the end of this year, said Yaluma.

Vodacom, though, is not unfamiliar with the Zambian market.

Seven years ago, Vodacom and local Unitel Communications formed Vodacom Zambia, which was awarded a telecom licence in that country.

But the license was later withdrawn by the country’s government through the Zambia Information and Communication Technology Authority (ZICTA), the sector regulator.

ZICTA made the dramatic move amid claims that there wasn’t enough spectrum in the country.

Later, ZICTA said it had resolved the issue of spectrum shortage, but the licence was never restored to Vodacom Zambia, despite a Zambian court ruling in favour of the company when the matter was taken to court.

In February last year, Vodacom Zambia chairman Enoch Kavindele said he had written to new Zambian president Michael Sata asking him to restore Vodacom Zambia’s licence.

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