Mozambique government considering phone companies merger

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Mozambique government considering phone companies merger

4:06 CAT | 23 May 2016

TVM / Deputy minister of Transport and Communications of Mozambique Manuela Rebelo

The Mozambican government is considering the merger of Telecomunicações de Moçambique (TDM) and Moçambique Celular (Mcel) as the best way to achieve the revitalization and profitability of the two public enterprises.

Making the announcement in the city of Beira, Deputy Minister of Transport and Communications Manuela Ribeiro explained that the merger of the two companies is only at the feasibility study stage but that a merger appears the best way forward.

Ribeiro explained that, according to the latest report, this may be the best way out for the loss-making companies, saying “it would be good if this were to occur in the short to medium term”.

According to the government, the merger will generate infrastructure and human resources efficiencies and deliver systems which will meet the demands of the market without further spending.

“TDM has much infrastructure that on its own it has little need of, while Mcel doesn’t have so much infrastructure and, with the merger, would then own some, reducing both companies’ costs,” Ribeiro said.

The minister pointed out that TDM is facing the problem of vandalism of its optical fiber network, which is expensive for the state to repair.

“We think that TDM should study strategies to stem fiber optic vandalism, and work with the Ministries of Interior or Defense to see to what extent these institutions could assist,” she said.

On the financial situation, Ribeiro recognized that public and private companies owe TDM a lot of money, and said that it was up to the company itself to implement collection strategies.

“Collection should start with companies in the sector. We can’t put this off any longer, because it is killing our company,” the deputy minister said, adding that some of the unpaid debts date back several years.

Source: A Bola