Maroc Telecom Ahead of FT in Benin Telecom Bid

Morocco’s Maroc Telecom, controlled by French group Vivendi, is thought to be in a good position to bid for state-owned Benin Telecoms, according to African-bulletin.com, quoting French newspaper La Lettre Mediterrannee, following previous reports that France Telecom (FT) was in pole position for the privatisation of Benin’s incumbent telco.

The schedule for privatising the PSTN and broadband operator is unclear however, with observers saying that the issue could be clouded by upcoming presidential elections next spring, whilst Benin Telecoms’ workers’ union has warned that it will ‘react strongly’ to inevitable staff restructuring (‘downsizing’) plans resulting from a sale to the private sector.

Maroc Telecom has expanded across several African nations. In neighbouring Mauritania, it acquired 51% of Mauritel in 2001, and it acquired majority control of Burkina Faso’s Onatel in 2006 and Gabon Telecom the following year.

In 2009, Maroc Telecom signed an agreement with the Malian government to become the major stakeholder of Sotelma. The group is also eyeing other markets outside the traditional French speaking African countries which have strong political ties with Morocco.

Burkina Launches Tender For Operators

Burkina Faso’s telecoms regulator, the Regulatory Authority for Electronic Communications (ARCE), has announced the launch of an international tender for a combined fixed and wireless concession which includes the provision of third-generation (3G) services.

The licence is valid for a period of ten years and covers the whole of the country. Interested parties can consult the tender document free of charge or obtain a copy from ARCE for a non-refundable fee of XOF300,000 (USD594).

Submissions must be made before 19 October 2010, at which date bids will be opened at the regulator’s headquarters in the country’s capital Ouagadougou.

Burkina Faso is home to three wireless network operators: market leader Telmob, which launched in December 1996 as the wholly owned cellular arm of fixed line operator the Office National des Telecommunications (Onatel); Telecel Burkina Faso, which inaugurated its GSM-900 network in December 2000; and Zain Burkina Faso, which launched wireless services in January 2001.

Burindi Carriers Team Up To Build Fibre Line

A number of Burundian telecoms operators have joined forces to build out a national fibre-optic backbone network in the small African country, aided by the World Bank. The so-called ‘Burundi Backbone Systems’ group, which includes incumbent PTO Onatel, mobile operator Leo (formerly U-Com), Africell (owned by V-Tel and Palestinian Paltel), Econet Burundi and domestic ISP CBI Net.

Balancing Act reports that Burundi Backbone Systems will oversee the development of a 1,200km backbone and several international fibre links connecting the country to its neighbours in the next 18 months. The World Bank is contributing money to the scheme which will provide coverage throughout Burundi with cables laid alongside road routes, with 26 different nodes.

Maroc Telecom Revenues Up 1.9%

Moroccan incumbent Maroc Telecom has reported its consolidated group results for the first half of 2009. Revenues were up 1.9% year-on-year to MAD14.6 billion (USD1.84 billion) in the six months ended 30 June, whilst EBITDA rose 1.0% to MAD8.6 billion and net income attributable to the group climbed 2.6% to MAD 4.6 billion.

The total customer base reached 19.6 million at mid-year, up by 5.3% from June 2008, with growth fuelled by subsidiaries in sub-Saharan Africa which saw their combined customer bases increase by 44.1% year-on-year to 3.2 million customers. In the second quarter revenues stood at MAD7.46 billion, up 1.8% versus the same period last year.

The results incorporate Maroc Telecom's domestic fixed line, broadband and mobile operations, and its subsidiaries Mauritel (Mauritania), Onatel (Burkina Faso) and Gabon Telecom (including cellco Libertis) as well as the Mobisud France and Mobisud Belgium MVNO companies. Mobisud France was withdrawn from Maroc Telecom's consolidated financials as from 1 June 2009.

The Moroccan operator also released a 2009 full year outlook, predicting revenue growth of around 2% and an operating margin of around 45% (compared to 44.9% in H1).

XOF 29 Billion Raised from Onatel IPO

Burkina Faso has raised XOF 29 billion from the sale of 20 percent of telecoms operator Onatel through an initial public offering of shares. The shares in Onatel, which is 51 percent owned by 

Maroc Telecom, will be listed on the West Africa franc zone regional BRVM bourse based in neighbouring Ivory Coast by 1 May, Alexis Lourgo, MD of lead manager SBIF, told Reuters. 

Investors in Onatel include Burkinabe individuals and companies, and the International Finance Corporation (IFC), the private sector arm of the World Bank.

The Burkinabe state is the biggest shareholder in the firm, retaining 20 percent after Maroc Telecom. 

IFC to Buy into Burkina's Onatel

The International Finance Corporation (IFC) is to purchase up to 5% of Burkina Faso's telecom operator Onatel in an effort to support an ongoing IPO. IFC,  the World Bank’s private sector lender, in a statement said it would take on a stake of up to 5% by buying any unsubscribed shares.  The IPO begun on 22 December 2008 and closes on 31 January 2009.

Onatel intends not to displace any private investors.  Should all shares be subscribed to, according to IFC, the government will sell it a 3% stake.

Currently, Maroc Telecom has 51% shares in Onatel, which stake it acquired in 2006 when the government embarked on privatization of the network.  In the IPO, Burkina Faso's first ever, the government is offering a further 20% stake

IFC is also working closely with the Burkinabé government to improve the legal and regulatory environment and make it easier for entrepreneurs and private businesses to operate and contribute to economic development, according to the statement. In fiscal 2007, IFC invested $8.5 million in the country. On a broader scale, IFC is increasing its investments in Africa, particularly in the poorest countries and regions where the private sector has played a limited role in economic development thus far, the statement adds.