(Xinhua via NewsEdge) A consortium led by Dubai-based VTEL won a lucrative tender to provide telecommunications services in Kenya.
The Communications Commission of Kenya (CCK) told a news conference in Nairobi that VTEL, with technical partner Palestine's PalTel, won the lucrative integrated license that included national cellular, Internet backbone, international voice gateway, commercial VSAT and provision of long-distance voice data.
CCK director general John Waweru said the consortium beat two other bidders to become the second national telecom operator after state-run Telkom Kenya.
'We at the commission are happy that the Kenyan communications market is still very attractive to investors. We have witnessed very serious bids in this license,' Waweru said.
The consortium is expected to be operational within a year.
Waweru said VTEL quoted $169.7 million to edge out India's state-run Mahanagar Telephone Nigam, which quoted $52 million, and the Reliance Consortium, which included Swedtel of Sweden as the technical partner, with a bid of $111 million.
VTEL Holdings Africa chief executive Nour Atout said two Kenyan companies were included in the consortium to spread the local ownership of 30%.
The group would start its services rollout move with mobile phone services, he said.
The entry of a second national operator is expected to end the monopoly of state-run Telkom Kenya on fixed-line services and is seen bringing down the cost of telecommunication due to competition.
© Xinhua News Agency
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