Local partners win big in forced listing of telcos

The fixed line business went into free fall over most of the past decade, from 173,591 subscribers in 2000 to 123,809 in 2008, only to recover to 181,671 in 2009.

With Zain’s exit, the government will need to recapitalise TTCL. One source of such funds is selling the 40 per cent stake that the Tanzania government holds in the local operations of Zain.

The same pattern could evolve at Zantel, the fourth largest player with 1.2 million subscribers, which is 51 per cent owned by Etisalat, the UAE-based mobile operator.

The minority shares are held by the government of Zanzibar, Kinbary and Meeco.

Millicom, an international operator, which bought out the remaining 16 per cent interest from local shareholders for a reported $1.33 million, could be one player that would like to dispose a chunk of its shares through the market.