INFORMATION reaching The Business Chronicle indicates that the Netherlands based Celtel Communication Group is currently negotiating a deal with the Ghana Government to purchase 66.34% government stake in Western Telesystem Company (Westel), the second national operator.
Credible information has it that Westel is offering between US$120 million and US$150 million for government's stake in the company. The Ministry of Communication has indicated that the negotiations between Kinz Telecom and them broke down and attempts by Kinz Telecom to restart it had failed too.
Government had reached an understanding with Kinz to pay US$250 million for her stake but it broke down over the price of the shares. Kinz could also not honour the requirement of paying the US$250 million in 45 days set by government.
It was therefore government's decision to opt for the second company on the list, which is Cetel Communications.
Celtel has been classified as an African success. It began in mobile phone operations in 1998, and since then has built networks in 15 African countries, under licenses that cover more than a third of the population of Africa.
The original holding company, MSI Cellular Investments, changed its name to Celtel International in January 2004. Commercially, it has a strong record of investment and growth whiles culturally, they operate to the highest standards of professional and corporate ethics.
Celtel has invested more than US$750 million in Africa. It is its goal to build and operate world-class networks that will keep pace technologically with networks in Europe and North America.
It also builds and operates world-class communications networks that deliver reliable and competitive services in Africa.
Celtel is also committed to making life better for all its stakeholders. We do this by delivering attractive returns for our investors and by offering our employees exceptional opportunities for personal development and promotion.
Celtel, African Soft and Kinz Telecom and Etisalat Communication were selected from seven companies in March to submit presentations on their technical and financial competence to win the stake. Kinz was the selected whiles Celtel placed second.
WESTEL was awarded the SNO licence in 1997 and granted a five-year duopoly on basic telecoms services alongside incumbent Ghana Telecom, says TeleGeography's GlobalComms database. The company is also licensed to provide fixed and wireless telecommunications services throughout Ghana, including basic phone service, cellular, paging, international long-distance, pay-phones, data communications, private networks and satellite communications, but it did not launch services until late 1998 due to the incumbent Ghana Telecom's refusal to connect it to the national PSTN.
Since then the telco has been blighted by bureaucratic disagreements and a lack of investment. Originally a wholly owned subsidiary of the Ghana National Petroleum Corporation (GNPC), WESTEL was floated in an IPO following the opening up of the market. Western Wireless International (WWI) of the US took a majority stake, but in its allotted duopoly period installed fewer than 3,000 of the 50,000 lines stipulated by its concession. In January 2006 WESTEL became a fully owned state enterprise again following the government's acquisition of the two-thirds equity stake held by ACG Telesystems Ghana.
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