Tritel Telecommunications

cancelled

Tritel was awarded, through a competitive tender process, a 15-year license to operate mobile phone services in the coastal zone of Tanzania in 1995. The company paid a license fee of US$370,000. Tritel was a joint venture between TRI Telecommunications, a wholly owned subsidiary of Malaysian mobile operator Celcom (60%) and the local VIP Engineering (40%). Tritel started its commercial operations in December 1995, operating exclusively on the island of Zanzibar. The company contracted Siemens to supply and install a nationwide GSM network and an initial capacity of 25,000 lines and at total cost of US$25 million. By 2002, Tritel's revenue could not sustain its operating costs and it was unable to pay its creditors. Tritel's difficulties were compounded by disputes with Vipem, which in December 2001 filed a suit against TRI claiming US$18.6 million (US$1 = RM3.80) for alleged mismanagement of Tritel. In January of 2003, the Tanzanian Communications Commission notified Tritel that it would revoke its licence after it failed to 'sustain its operating costs and, as a result, was unable to pay its creditors.' The company's three year-outstanding license fees had amounted to Tsh 3.3 billion. Tritel also owed the Tanzania Revenue Authority over Tsh 5 billion and the Tanzania Telecommunications Company another $2,763,515. Its subscriber base was subsequently absorbed by the four other mobile operators; Vodacom, Mobitel, Celtel and Zantel. None None