Timor Telecom

active

In 2002 the Timorese Government awarded a 15-year contract to Build, Operate and Transfer a telecommunications network service in Timor-Leste (according to the terms of reference included in the tender) to a consortium led by Portugal Telecom International (PTI). PTI created a new company, Timor Telecom, which has the exclusive operation of services pertaining to fixed and mobile telephones, data and international links of these services. The contract is renewable for a further 10 years. The wining consortium was formed by Portugal Telecom (51%), China's Vodatel Network Holding Ltd., and some unnamed local companies. As of December 2005, Portugal Telecom controlled 41% and Vodatel controlled 17% of Timor Telecom. The contract was awarded through an International Tender arbitrated by the United Nations. An Australian-led consortium failed to submit its tender documents on time, thus leaving the consortium led by Portugal Telecom International as the only bidder. The project reached financial closure on July 19, 2002 when they signed the contract agreeing to invest US$30 million. The contract also stipulated that the operator had to provide a telecommunication mobile network system within four months in five big districts and, after 13 months, the operator had to provide mobile and fixed lines telephones in all country of Timor-Leste. By the end of 2004, the company's fixed and mobile-phone network covered all the thirteen districts' major towns in the country.