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France Telecom seals Congo Chine Telecom deal

France Telecom announced on 31 October 2011that it has finalized the acquisition of Congolese operator Congo Chine Telecom. The deal means France Telecom will own 51% of the company’s stake with the remaining 49% owned by the government.

Stéphane Richard, France Telecom-Orange CEO and Chairman

The French company said in a press statement, that the move is part of expansion efforts and reflects France Telecom-Orange’s international strategy, which aims to stimulate growth by entering high potential emerging markets.

“The acquisition of CCT is an important step in our policy of expansion outside Europe, and contributes to our stated aim of doubling our revenues in Africa and the Middle East by 2015. Orange is already present in over 20 countries in the region and has built up considerable experience developing networks and new services that are specifically tailored to the needs of local markets,” Stephane Richard, France Telecom-Orange CEO and Chairman said in a press statement.

France Telecom will initially pay $10 million followed by a $7 million second payment to the Chinese company for the take over.

France Telecom-Orange will also deliver to CCT a capital increase of $185 million in order to finance its operations.

Infrastructure and other services will be provided to CCT by ZTE, France Telecom-Orange has referred to the vendor as a preferred supplier. In addition, China Development Bank will provide strategic financing support.

A statement from France Telecom-Orange promises that the French firm will contribute its marketing, commercial and technical expertise as well as the Orange brand, to leverage CCT’s solid network assets.

The operator acknowledges CCT’s real potential for growth over the next few years, noting the DRC – the fourth most populous African country – has a small penetration rate of just 17% despite its population of 70 million.

David Eto

Charlie Fripp

Charlie Fripp has been the Consumer Technology editor for IT News Africa since mid-2011. He's primarily tasked with writing news, reviews and features on all things related to consumer technology - be it gadgets or video games. He's also tasked with conducting interviews with senior level executives from Information and Telecommunication companies.

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Charlie Fripp
Tags: AfricaCongo Chine Telecomfrance telecom

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