Vodacom and Millicom International Cellular are looking for 65 percent Etisalat stake in Zanzibar Telecom, a mobile operator in Tanzania, Bloomberg reported.
Zantel would give access to spectrum in Tanzania, helping it cope with growing demand for mobile data. About 57 percent of people in Tanzania had wireless access in 2012, compared with a rate of more than 71 percent in neighboring Kenya and 131 percent in South Africa.
Zantel had sales of about $85 million last year, according to an Etisalat document published in May. The unit was in a default for non-payment of a $96 million bank facility, with the lender saying it may take enforcement action against Zantel unless a payment is made.
Vodacom is Tanzania’s largest wireless carrier with 10.6 million subscribers, while Zantel is the fourth-biggest with 1.7 million as of June.
Meeco International of Tanzania owns 17 percent of Zantel and the government of Zanzibar, a semi-autonomous nation in a political union with Tanzania, holds 18 percent.
Vodacom, 65 percent owned by Newbury, England-based Vodafone Group, is South Africa’s largest wireless carrier by subscribers.
Luxembourg-based Millicom provides phone services in Africa and Latin America.
Baburajan K
editor@telecomlead.com
