Tanzanian Network Looses its GSM License

Malaysia's Celcom has said that Tritel, its joint-venture company in Tanzania has lost its GSM license. The company was been issued with a letter dated 2 January 2003, from Tanzania Communications Commission ("TCC") informing of the cancellation of its GSM telecommunication licence effective 31 January 2003.

Celcom via its wholly-owned subsidiary, Technology Resources Industries Berhad ("TRI") owns 60% equity in Tritel while the remaining 40% is held by VIP Engineering & Marketing Ltd ("VIPEM").

Tritel, which has been in operation since 1996 obtained its licence in February 1995. Tritel's revenue was unable to sustain its operating costs and as a result, it was unable to pay its creditors. Tritel's difficulties were further compounded by disputes with VIPEM which on 10 December 2001, filed a suit against TRI claiming, inter alia, US$18.6 million for alleged mismanagement of Tritel.

The TCC has made several requests to Tritel to meet its licence obligations namely its network expansion requirements and payment of regulatory fees. However, Tritel was unable to meet those obligations,resulting in TCC exercising its powers to cancel the licence.

Upon the cancellation of the licence becoming effective on 31 January 2003, Tritel will no longer be able to operate its business. A migration plan for its customers and other arrangements are currently being prepared by Tritel.

Celcom says that the cessation of business of Tritel has no material financial impact on the Group."

Posted to the site on 7th January 2003