Thursday, 20 Octorber 2011

France Telecom-Orange has announced that it is buying 100% of Congo Chine Télécom, a mobile operator in the Democratic Republic of the Congo. The mobile network is currently jointly owned by the government and Chinese telecoms manufacturer, ZTE.

Under the terms of the deal, France Telecom will pay US$10 million for ZTE's 51% stake and US$7 million for the government's 49% stake in the company.

In addition, ZTE will provide network equipment and services to CCT as its preferred supplier, and with strategic financing support from China Development Bank (CDB).

Furthermore, CCT will pay US$71 million to the government for improved licence terms (10-year extension, access to an additional 2 MHz in the 1,800 MHz range for 2G, and access to 10 MHz in the 2,100 MHz range for 3G) and associated fees.

CCT's operations will be financed from internally generated funds, restructured external loans and a total of US$185 million as capital increase provided by France Telecom-Orange in several installments.

With over 70 million inhabitants, the Democratic Republic of the Congo is the fourth most populated African country but has a mobile penetration rate of only 17%, considerably less than many neighbouring countries.

Stephane Richard, France Telecom-Orange's Chairman and CEO, said: "The acquisition of CCT is an important step in our policy of expansion outside Europe, and contributes to our stated aim of doubling our revenues in Africa and the Middle East by 2015. Orange is already present in over 20 countries in the region and has built up considerable experience developing networks and new services that are specifically tailored to the needs of local markets."