Rwandatel may turn to a foreign investor if a local court does not liquidate the debt-laden telecoms firm, its interim management said on Wednesday.
Rwanda’s telecoms regulator stripped Rwandatel of its mobile licence for failing to meet key performance targets in terms of investment, network roll-out, coverage and quality of service.
The company, 80 percent owned by the Libyan African Investment Portfolio (LAP), acquired its operating licence in 2007 but only started mobile operations in December 2008.
The Rwandan government has taken custody of some Libyan-owned assets in line with an international freeze, but has not explicitly stated that the Libyan investment in Rwandatel has been frozen, given the pending court ruling.
The telecoms regulator said on Wednesday it would await the court ruling to see what options there would be to protect the interests of Rwandatel creditors.
Last month, a Rwandan court appointed an interim manager to oversee the company’s affairs for the next two months, including paying debts of 54.3 billion Rwandan francs.
However, the company maintained its fixed line and data license, which accounted for 60 percent of its revenues.
Richard Mugisha, the company’s interim manager, dispelled media reports that foreign telecom companies, particularly Vodacom of South Africa, were already in talks with the company and the regulator about a possible take over.
“I have not been approached by any telecom investor. However, if the court rules that the company shouldn’t be liquidated our plan of action would definitely require the involvement of a strategic investor,” Mugisha said.
“The kind of assets the company has can only be used by someone who is established in this business and understands it. Keeping, or changing the brand identity of the company, would depend on the business decision of that investor. When that time comes we will definitely interest some people,” he said.
According to figures presented on Wednesday, the debt includes 1.7 billion francs in interconnection fees owed to MTN Rwanda and Millicom’s Tigo Rwanda. It also owes the government 3.6 billion and 400 million francs in regulatory fees.
The company will remain 80 percent owned by the Libyan fund with the other 20 percent in the hands of Rwanda’s social security fund until the court makes its ruling, the country’s telecoms regulator said.
Before revocation of its licence, Rwandatel had over 500,000 subscribers, MTN Rwanda 2.3 million and Tigo Rwanda 700,000 clients. MTN Rwanda was once forced to payoff Rwf 70 million ($145,000) for failure to meet contractual obligations.
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