The Tanzania Revenue Authority is putting final touches to the government purchase of Bharti Airtel’s 35 per cent stake in Tanzania Telecommunication Company Ltd (TTCL) for Tsh14.9 billion ($6.95 million).

The development brings to an end a 15-year public-private partnership between TTCL and Bharti Airtel.

TTCL public relations manager Nicodemus Thomas told The EastAfrican that Bharti had asked for Tsh50 billion ($23.35 million) but the government talked the firm into accepting the new figure.

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Works, Transport and Communications Minister Prof Makame Mbalawa had earlier announced that the partnership between the two companies would end in January. But TTCL said the process was delayed by key procedures including taxation requirements by the revenue body.

The government, which owns 65 per cent of TTCL, announced five years ago that it had begun to buy back the shares that had been sold to the consortium of MSI of the Netherlands and Detecon of Germany for $62 million in February 2001. It accused the two of not making any investment as agreed and failing to install 800,100 telephone lines.

TTCL argues that the buying back of the shares will ensure the smooth running of the oldest and largest fixed line telecommunication company in Tanzania. TTCL has 10 per cent market share out of the nearly 30 million telephone subscribers.

In the aftermath of the 2001 privatisation policy in Tanzania, TTCL sold shares to the then Celtel International, which were then passed on to the Qatar-based Zain and lastly to Indian firm Bharti Airtel.

TTCL is planning to list on the Dar es Salaam Stock Exchange as part of its five-year plan to raise $330 million to turn the firm into a competitive data and mobile phone company.

The state owned firm also plans to adopt the Global System for Mobile (GSM) that will enable it to engage in the mobile telephony and mobile money business.