MTN and Telkom in running for Zimbabwe stakes

South African operators MTN and Telkom have reportedly made separate bids for stakes in Zimbabwe’s state-owned mobile and landline operators NetOne and TelOne respectively, according to local newspaper the Herald. Quoting a government source, it was confirmed that several firms expressed interest in the two companies and the government is now conducting due diligence on the bids.

“They will soon be presented to cabinet before we choose the winner. Yes, MTN and Telkom are some of the companies that have expressed interest in the companies NetOne and TelOne,” the source stated.

NetOne has struggled to fund its network through a plague of cash troubles and bureaucracy, and has not replaced much outdated infrastructure.

Zimbabwe has three mobile operators – TeleCel, NetOne and Econet Wireless. Econet Wireless, owned by exiled business tycoon Strive Masiyawa, leads the market with three million subscribers, followed by TeleCel with 600,000 customers. NetOne reportedly ended 2009 with 250,000 subscribers. TelOne is the country’s sole fixed line provider with 386,000 customers.