Zambian state owned telco, Zamtel is to be partially privatised within the next few months in an effort to stave off a financial collapse. The company has been loss-making for many years and has a large unionised workforce, which recently held a lengthy strike over wages and conditions.
The government is looking for a strategic partner to come into the business and provide the necessary investments to upgrade the network. However, any investor may be wary of the demands from the unions that no jobs are lost as part of the privatisation plans.
Communications and Transport Minister, Dora Siliya told workers that "I want to assure you that I have your welfare at heart and that you have a partner in me. I am, therefore, asking for your total cooperation on this matter,"
Zamtel is the dominant landline operator, but is the smallest of the country's mobile networks by subscriber numbers. According to figures from the Mobile World analysts, the firm ended the first half of 2008 with an estimated 403,000 subscribers, behind MTN with 453,000 - and a long way behind market leader, Zain who had 2.3 million customers.
The National Union of Communication Workers said that it supported the sale in principle - but only if jobs are guaranteed. The company currently has a workforce of around 2,700.
Posted to the site on 5th December 2008
Posted to: www.cellular-news.com/story/35006.php