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

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...

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Main Author: Kasanga, Edwin Ibrahim Kikuli
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2005
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20064/
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author Kasanga, Edwin Ibrahim Kikuli
author_facet Kasanga, Edwin Ibrahim Kikuli
author_sort Kasanga, Edwin Ibrahim Kikuli
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-200642018-06-05T09:24:35Z https://eprints.nottingham.ac.uk/20064/ Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited Kasanga, Edwin Ibrahim Kikuli 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. 2005 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20064/1/MBA_Dissertation.pdf 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) Tanzania Telecommunications Company Limited TTCL MSI Celtel International Celtel Detecon Telecommunications GOT Government of Tanzania TRP Telecommunications Restructuring Programme DELs Direct Exchange Lines
spellingShingle Tanzania Telecommunications Company Limited
TTCL
MSI
Celtel International
Celtel
Detecon
Telecommunications
GOT
Government of Tanzania
TRP
Telecommunications Restructuring Programme
DELs
Direct Exchange Lines
Kasanga, Edwin Ibrahim Kikuli
Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title_full Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title_fullStr Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title_full_unstemmed Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title_short Performance of telecommunications industry in the wake of liberalisation: the case of Tanzania Telecommunications Company Limited
title_sort performance of telecommunications industry in the wake of liberalisation: the case of tanzania telecommunications company limited
topic Tanzania Telecommunications Company Limited
TTCL
MSI
Celtel International
Celtel
Detecon
Telecommunications
GOT
Government of Tanzania
TRP
Telecommunications Restructuring Programme
DELs
Direct Exchange Lines
url https://eprints.nottingham.ac.uk/20064/