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East Timor: Government seeking telecom reform Print E-mail
Monday, 12 March 2007

East Timor’s government has announced plans to end Timor Telecom’s monopoly. Prime Minister José Ramos-Horta has asked the government to prepare telecommunications sector reform legislation.

Ramos-Horta praised investments made by Timor Telecom, in which Portugal Telecom (PT) has a stake, but noted, “the country needs, however, efficient telecommunications at affordable prices and that are accessible to all.”

An independent report on the telecommunications regulatory framework characterised it as unilateral and impeding sector development. The document also said that the number of East Timorese with access to a telephone and the Internet was lower than three people per thousand and the rural population is almost entirely excluded.

Timor Telecom’s concession contract was signed in July 2002, and is valid for fifteen years and renewable for a further ten. Timor Telecom has exclusivity in providing fixed, mobile, data, leased lines, public telephony and international services. The only service currently open to competition is Internet access.

PT is the company’s biggest shareholder, with a 41.12% stake -- other shareholders include the East Timor state and Vodatel.

In 2004, Timor Telecom had revenues of US$ 17 million, a 42% increase over 2003. In the same period, the subscriber base rose 26.28% to 28,000.

Source: Macauhub - WDR/Intelecon Regulatory News.