France Telecom makes bid on DR Congo mobile operator

Reuters

France Telecom is weighing a bid for the fourth-largest mobile operator in the Democratic Republic of the Congo, as part of its effort to expand in fast-growing markets in the Middle East and Africa.

A deal for Congo-China Telecom (CCT), still being negotiated, would involve buying a 51% stake owned by Chinese telecom vendor ZTE , and the 49% that the national government has put up for sale.

"We are in exclusive talks with ZTE about acquiring its 51% stake in CCT ... in addition we are studying whether to participate in the tender offer by the Democratic Republic of the Congo for its stake," a France Telecom spokeswoman said.

The deal could cost France Telecom roughly $424 million, since CCT has a lot of debt, which would have to be accounted for, according to a person familiar with the matter.

France Telecom is pursuing growth in emerging markets to offset intensifying competition at home, with Chief Executive Stephane Richard aiming to double revenue in emerging markets to $9.8 billion by 2015, largely via acquisitions.

Since Richard took over last year, the group has expanded into Morocco, Iraq and Tunisia, often by buying minority stakes that can be converted into takeovers under shareholder pacts if the company chooses.

This year, Elie Girard, executive vice-president of strategy and development, said France Telecom could reach its goal of doubling revenue in emerging markets by increasing its minority stakes in Tunisia, Morocco and Iraq, but planned to also look for opportunities elsewhere.

CCT is the fourth-biggest operator in the DRC, a country of 65 million that is covered by a second-generation wireless network. The market is relatively open because no operator is dominant nationally and only 17% of people have mobiles.

"If it is concluded, this deal would be in line with the international expansion strategy of France Telecom in the Middle East and Africa," the spokeswoman said.

ArticleTools

Featured Reports

Understanding and Capitalizing Upon Telecom APIs for Communications Enabled Applications
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

Technologies Impacting and Impacted by Operational Support Systems (OSS)
There are significant changes underway in the CSP industry that are causing fundamental re-evaluations of business models, technology stacks and service offerings. This research assesses a range of relatively nascent technologies that have the potential to change the dynamic of OSS, whether via the networks they manage, or as building blocks on which to build better OSS tools.

Market Opportunity: Big Data in the Internet of Things
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

Concise, Practical Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

GEN 15
Nov. 16-19, 2015

Omni Hotel, Dallas, Texas

The global gathering of networking professionals enabling the future of agile, assured and orchestrated services powered by CE 2.0, LSO (Lifecycle Service Orchestration), SDN and NFV.

Visit event website...
 

 

Business Wire