Telecom wants MTC as cash cow

Saturday 17th of June 2006
PLUS

While Namibia’s only cellular licence holder MTC has enjoyed a monopoly of 11 years, it did not stay idle: 450,000 customers and nearly 85 % coverage, an investment of over N$ 600 million, 300 direct and 2,500 indirect jobs are a success story. But professional jealousy seems to be luring – Telecom Namibia apparently wants to obtain a 51 % shareholding in MTC. "We are afraid that Telecom Namibia wants to grab MTC’s cash", the company’s managing director Bengt Strenge said Tuesday to a parliamentary standing committee that looks at the performance of parastatals. "They probably want this as a "quick fix" to improve their own financial woes", Strenge said bluntly. Telecom Namibia and MTC belong to Namibia Post & Telecommunications Holdings (NPTH). MTC recently sold 34% to Telekom Portugal. "That alone will bring N$ 700 dividend to the Namibian government", Strenge told the committee.

Telecom Namibia apparently proposed to Cabinet last year already to make MTC a subsidiary as part of a restructuring exercise. Strenge is opposed to a "takeover" by Telecom, he even expressed fear that the dividends of MTC might not even reach state coffers anymore then.

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