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The Republic of Guinea |
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The Republic of Guinea |
From 1958 to the late 80s, Guinea's posts and telecommunications were managed as a ministerial department. The country barely had a telephone system. There were only about 10,000 subscribers, all mostly government officials located in the capital city. The telephone company was a government agency and no one paid telephone services.Privatization of Telecoms
In 1989, the government established a committee whose objective was to restructure the sector and identify ways to improve it. In 1991, a Statement of Sector Policy for the Telecommunications Services was created. According to this new statement, the ministry would be responsible for the policy and regulation of the sector while its operations would be handled by a commercial autonomous entity. To that effect, Sotelgui was created in 1992 by a presidential decree along with a telecommunications law. The new company was granted independent management authority, with a board of directors. The company was managed by France Cable whose objective was to manage operations and modernize the sector. (Web Guinee). Whitin two years of operations under France Cable, 28 phone booths were constructed in the capital, central telephone services were established along with a cable network for 9,000 people. Also, a digital telephone exchange was installed for 3,000 lines in the capital and 500 lines in the rural regions. Despite this progress, the government was not satisfied, and it issued an international call for bids inviting entrepreneurs to purchase of the company. ("Doing Business in West Africa"; Warner Montgomery; Sep 1999).
In 1995, Guinea's president visited Malaysia at the invitation of that country's prime minster. The contract is for 10 years, renewable for 5 years, at which time the assets will revert to the government. ("Doing Business in West Africa"; Warner Montgomery; Sep 1999). An year after, on November 1996, the two countries signed an agreement of on Economic, Scientific, Technical and Cultural Co-operation. In regards to Telecommunications specifically, the government struck a deal with Telecom Malaysia and Sotelgui was privatized. The new company is as of today owned 60% by Telecom Malaysia and 40% by the government. The objective in 10 years is to restructure the ownership to 30% for Telecom Malaysia, 20% for the government and 20% for the international investors. The contract is 10 years, renewable for 5 years at which time the assets will revert to the government. What makes this contract unique and special is because it is between two third world countries.
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Last updated: 12/19/99
