Telecel: Zimbabwe government refused 51% indigenisation?

Telecel Zimbabwe yesterday threatened a local and international onslaught against Potraz's decision to cancel its licence because its parent company offered local shareholders 51% and is up to date with its licence fees.

Potraz said it had cancelled the Telecel licence, accusing the mobile telephone operator of flouting regulations.

Telecel said it objected to its treatment by Potraz and indicated that it was ready for a protracted legal battle to regain the licence. It insisted it had made every effort to comply with all legal and governmental requirements in Zimbabwe and objects to this treatment in the strongest terms.

According to some sources at Potraz and in the Government Vimpelcom proposed to the Govt to cede its 11% to Telecel Zimbabwe employees but surprisingly the Govt has rejected that and wants the entire cake.

Telecel said the measure to cancel it licence is unfair and unwarranted and "we confirm that Telecel has done everything possible to ensure full compliance with all the licence requirements as set out by POTRAZ having proposed to POTRAZ to transfer 11% of the shareholding to Telecel employees thereby effectively bringing foreign shareholding to 49%."

Telecel said it is objecting to this treatment in the strongest terms and itself and its global shareholders are taking immediate action both locally and internationally to challenge this decision.

"We will be taking all possible steps to maintain the full range of our services throughout this process so that there is minimal disruption to our customers," said a Telecel statement.

Telecel was given 60 days to decommission its equipment and wind up operations, while subscribers to other networks.