The Zimbabwe government is contemplating a move to merge several telco companies that it owns, as well as those in which it has a majority share.

Its portfolio includes TelOne, NetOne and Powertel as well as Telecel, with a significant stake in Africom.

Win Mlambo, Deputy minister of Information, Communication, Technology, Postal and Courier Services, said merging all the telecom companies follows government's desire to avoid duplication, foster efficiency and minimise losses.

This year NetOne is believed to have lost millions of dollars through dubious procurement of hardware and software.

Mlambo added that the process was put in motion and "was now at an advanced stage." He was reluctant to say if the government's newly acquired Telecel will also be part of the consolidation.

The government is buying out VimpelCom for US$40-million through ICT parastatal Zarnet, and VimpelCom has said that the transfer of its shares in Telecel Zimbabwe to the government would be completed once all conditions had been met.

Under the proposed structure, Mlambo said, one of the entities with financial muscle would spearhead the broadband and telecommunication strategy and provide a seamless business entity.

Speculation in the telecoms sector was rife this week that given its capacity and expertise TelOne will spearhead broadband infrastructure availability.

According to Mlambo, the government will "soon find a consultancy company that will be tasked to do the consolidation of the telecoms companies under the armpit of the government."

The minister did not specify a time frame for the merge, but said it would have to take place as soon as possible.