Maravi

Kavindele asks Sata to restore Vodacom's operating licence

COMMENT - This was the same guy who was campaigning for the MMD only a few months ago, because they promised him a license deal, or something. Contracts have compromised Kavindele, charges Patrick

Kavindele asks Sata to restore Vodacom's operating licence
By Chiwoyu Sinyangwe
Thu 29 Dec. 2011, 13:56 CAT

VODACOM Zambia executive chairman Enoch Kavindele has asked President Michael Sata to restore his licence to operate a fourth mobile phone provider in the country.

At the height of the controversial US$257 million sale of Zamtel to Lap GreenN of Libya in 2010, Vodacom Zambia's licence was revoked after former president Rupiah Banda directed that the licence for a fourth mobile provider be suspended for five years.

The move to ban a fourth mobile provider, which sources close to the transaction say was part of conditionalities made by Lap GreenN to take over the country's sole total communications provider, was widely considered repugnant to development of the robust mobile phone sector.

Banda's ban against issuance of another mobile phone licence until 2015 to ensure Zamtel found "its feet" also abrogated local laws governing competition practices.

Former communications minister Dora Siliya said Vodacom Zambia's licence was cancelled to protect Zamtel, which at the time, was threatened "with closure and all workers would have lost jobs if Vodacom was allowed to operate".

In a letter to President Sata, Kavindele, a prominent businessman, said he was a victim of injustice during the hurried sale of Zamtel by the fallen regime.

Kavindele told President Sata that his company, Unitel Communication, in partnership with Vodacom South Africa had been awarded a licence, through a tender process to operate a fourth mobile licence in Zambia.

Kavindele stated that that time, there wasn't enough radio spectrum and business could not take off.

He explained that when the radio spectrum was created, the previous regime of Banda had already started negotiating to sell Zamtel.

Kavindele, then hauled government and Zambia Information Communications Technology (ZICTA) before the Lusaka High Court, and succeeded in his pursuit.

The licence was not, however, restored as the State appealed to the Supreme Court over the High Court ruling.

"We implore Your Excellency to allow Vodacom Zambia operate the 4th mobile licence in partnership with Vodacom as per tender approval and High Court judgment," Kavindele stated.

"Your Excellency, there are many advantages to Zambia in having us operate the fourth mobile licences, which include the lowering of call rates…"

Kavindele stated that President Sata had set a precedent for correcting injustices done by the previous administration after he gave back Finance Bank to previous owners led by Dr Rajan Mahtani at the verge of being sold to FirstRand National Bank of South Africa.

Transport minister Yamfwa Mukanga has indicated that the government is likely to revise the law banning an entry of a fourth mobile provider.

Mukanga said the restriction of the number of mobile service providers to three was a decision of the MMD regime and that the PF government "will not protect anyone in the Zamtel issue".

Labels: ENOCH KAVINDELE, HYPOCRISY, LICENSES, YAMFWA MUKANGA

posted by MrK @ 6:44 PM