Viettel eyes Ethiopia telecoms sector as governor opens market | Investing Home

JOHANNESBURG (Reuters) – Vietnam's state-owned telecom company said it was eyeing opportunities in Ethiopia, a company official said on Monday, after the government announced its intention to liberalize key economic sectors and telecommunications.

The Ethiopian government announced last month it plans to open up Ethiopian Airlines, the state logistics firm and the power monopoly to private investment. But the state telecommunications monopoly is seen as the biggest prize of its huge protected market.

The plan is still in it's early stages, but scenarios outlined by the authorities. Ethio Telecom, the granting of licenses to new operators or a combination of both.

"With the experiences of the years, the option of granting a new license would be better," Reuters said.

Viettel currently operates or holds licenses in African markets including Mozambique, Burundi, Cameroon and Tanzania.

Ethio Telecom, which boasts over 60 million mobile subscribers, could still be interested.

"If this is the case for Ethio Telecom's shares, Viettel will still consider this option if it is suitable for Viettel's investment strategies," the official said.

Other foreign telecoms companies that have expressed their interest in one of Africa's last remaining monopoly markets include Johannesburg-listed MTN and France's Orange.

Reuters reported that Kenya's Safaricom, whose parents are South Africa's Vodacom and Britain's Vodafone, is in advanced talks to introduce its popular M-Pesa mobile money service there.