Airtel Tanzania

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In August 2005, Celtel Tanzania formally split with its former parent, the Tanzania Telecommunications Company Limited (TTCL), which was the country's incumbent fixed line operator, following the restructuring of both entities. The government agreed to sell 25% of its shareholding in TTCL's former mobile subsidiary to Celtel International (which in turn owned 35% of TTCL and hence the same in the mobile subsidiary) at a price of US$28 million. The end result was the government owning 40% of the shares in the newly autonomous Celtel Tanzania and Celtel International owning the remaining 60%. As part of the deal, Celtel International was to provide a loan of US$25 million to Celtel Tanzania for capital expenditure in 2005. The two shareholders also agreed on the structures of the two Boards of Directors and on the management of the two independent companies. The Government was to have a majority on the TTCL Board and Celtel International was to have a majority on the Celtel Tanzania Board. In May 2005, Celtel (formerly MSI Cellular Investments of the Netherlands) was acquired by Mobile Telecommunications Co. (MTC) of Kuwait for US$3.4 billion. According to a managing director, the company was looking for US$80-US$90 million funding for expansion of services in 2006. By end 2005, Celtel Tanzania had 971,000 subscribers to its network, representing a 27% market share. In June 2006, Celtel Tanzania secured $70 million in fresh funding to expand its network coverage from a consortium of Tanzanian banks, led by National Bank of Commerce, Exim Bank, Tanzania Investment Bank and Standard Chartered Bank Tanzania. In October 2006, Celtel announced that the Celtel network across sub-Saharan Africa would be integrated into a single network that would allow users from any of its national networks to roam free of charge in any other Celtel network. By the end of 2006, Celtel Tanzania had 1.52 million subscribers, maintaining its second place position in the market. Capex 2011 based on Bharti Airtel annual report: parent capex * subscribers Airtel country subsidiary / subscribers of total Bharti Airtel (200.878m) Capex 2012: Ibid (241.1million) Capex 2013: Ibid (271.2 million users; 2.486bn global capex)