Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 59,062
- 79,089
Government moves to avert clash with mobile phone firms
Information, Communication and Technology director Zaipuna Yonah (left) and Communications, Science and Technology minister Peter Msolla compare notes after members of the Parliamentary Committee on Infrastructure discussed a bill on the Electronic and Postal Communication Act in Dar es Salaam yesterday.By Beatus Kagashe
The government has moved to forestall a possible clash with mobile telephone companies over a proposed law that would make it mandatory for the firms to sell shares worth billions of shilling to Tanzanians.
The proposed Electronic and Postal Communication Act 2009 which is due to be tabled before Parliament later this month requires that shares be floated for sale at the Dar es Salaam stock market after three years of operation.
But mobile phone companies operating in the country have vehemently opposed this proposal and some clauses in the Bill. On Thursday this week they petitioned the Tanzania Communications Regulatory Authority (TCRA) to scrap the idea.
Yesterday the Communication, Science and Technology minister, Prof Peter Msolla, said the government would review the contentious clauses before finally tabling it before Parliament.
Prof Msolla, however, said not all of the clauses being questioned will be dropped as some were meant to safeguard public and national interests. He called for understanding from the players during the consultation process.
The minister held a closed door meeting most of the morning yesterday with members of the parliamentary committee on infrastructure development to explain the government's position on some of the opposed clauses.
Reporters covering the sessions of the House committees were not allowed into the meeting but during a short briefing Prof Msolla later revealed the ministry was open to consultations and would be revisiting the draft Bill to include amendments.
The minister said he understood the concerns raised by the mobile companies and would be discussing them with relevant experts.
He said reviews would take into consideration the provisions of other laws such as the one guiding operations by the Bank of Tanzania (BoT), the stock market and the Securities Act.
During their presentation to the parliamentary committee, the Mobile phone operators said they were opposed to the section requiring mandatory listing because it was unconstitutional and contradicted the Company Act and the Capital Stock Market and Securities Act.
The listing clause was included in what could be viewed as attempts by the government to claim a stake in the communication industry whose phenomenal growth has raked in billions of shillings in profits. A sale of shares at the stock market would also attract the ordinary Tanzanians wishing to own shares.
Most mobile companies' current shareholders include multinational firms and conglomerations and a few individuals who gained access at the early stages of investment when the sector was still nascent.
From a single mobile company slightly a decade ago, Tanzania now boasts not less than seven mobile firms with a subscription of a whooping 15 million customers from a paltry base of 300,000 clients eight years ago.
The firms include Vodacom, Zain, Tigo, Sasatel and Zantel. The state utility firm Telecom Tanzania limited has also a mobile service.
Among the contentious issues that minister Msolla said may not be expunged is the provision to suspend or cancel frequencies without compensation for defaulting firms. Msolla said there were many licenses which may cause unnecessary bureaucracies.
"Frequency is a sensitive issue, and the law will continue to give power to TCRA to confiscate them if misused but the operators would be given the chance to appeal in court if not satisfied," said Prof Msolla.
He said there would also be no need to make it mandatory for the operators to commercially share infrastructure because of many dominant companies waiting in the wings.
"Many of the views are good and we are going to categorize the licenses of companies so that they can be treated differently," said Prof Msolla.
The minister said fines would remain as a remedy or correction measure and they have used Usd to make sure the value does not change.
Source: The Citizenhttp://www.thecitizen.co.tz/newe.php?id=16891
Information, Communication and Technology director Zaipuna Yonah (left) and Communications, Science and Technology minister Peter Msolla compare notes after members of the Parliamentary Committee on Infrastructure discussed a bill on the Electronic and Postal Communication Act in Dar es Salaam yesterday.By Beatus Kagashe
The government has moved to forestall a possible clash with mobile telephone companies over a proposed law that would make it mandatory for the firms to sell shares worth billions of shilling to Tanzanians.
The proposed Electronic and Postal Communication Act 2009 which is due to be tabled before Parliament later this month requires that shares be floated for sale at the Dar es Salaam stock market after three years of operation.
But mobile phone companies operating in the country have vehemently opposed this proposal and some clauses in the Bill. On Thursday this week they petitioned the Tanzania Communications Regulatory Authority (TCRA) to scrap the idea.
Yesterday the Communication, Science and Technology minister, Prof Peter Msolla, said the government would review the contentious clauses before finally tabling it before Parliament.
Prof Msolla, however, said not all of the clauses being questioned will be dropped as some were meant to safeguard public and national interests. He called for understanding from the players during the consultation process.
The minister held a closed door meeting most of the morning yesterday with members of the parliamentary committee on infrastructure development to explain the government's position on some of the opposed clauses.
Reporters covering the sessions of the House committees were not allowed into the meeting but during a short briefing Prof Msolla later revealed the ministry was open to consultations and would be revisiting the draft Bill to include amendments.
The minister said he understood the concerns raised by the mobile companies and would be discussing them with relevant experts.
He said reviews would take into consideration the provisions of other laws such as the one guiding operations by the Bank of Tanzania (BoT), the stock market and the Securities Act.
During their presentation to the parliamentary committee, the Mobile phone operators said they were opposed to the section requiring mandatory listing because it was unconstitutional and contradicted the Company Act and the Capital Stock Market and Securities Act.
The listing clause was included in what could be viewed as attempts by the government to claim a stake in the communication industry whose phenomenal growth has raked in billions of shillings in profits. A sale of shares at the stock market would also attract the ordinary Tanzanians wishing to own shares.
Most mobile companies' current shareholders include multinational firms and conglomerations and a few individuals who gained access at the early stages of investment when the sector was still nascent.
From a single mobile company slightly a decade ago, Tanzania now boasts not less than seven mobile firms with a subscription of a whooping 15 million customers from a paltry base of 300,000 clients eight years ago.
The firms include Vodacom, Zain, Tigo, Sasatel and Zantel. The state utility firm Telecom Tanzania limited has also a mobile service.
Among the contentious issues that minister Msolla said may not be expunged is the provision to suspend or cancel frequencies without compensation for defaulting firms. Msolla said there were many licenses which may cause unnecessary bureaucracies.
"Frequency is a sensitive issue, and the law will continue to give power to TCRA to confiscate them if misused but the operators would be given the chance to appeal in court if not satisfied," said Prof Msolla.
He said there would also be no need to make it mandatory for the operators to commercially share infrastructure because of many dominant companies waiting in the wings.
"Many of the views are good and we are going to categorize the licenses of companies so that they can be treated differently," said Prof Msolla.
The minister said fines would remain as a remedy or correction measure and they have used Usd to make sure the value does not change.
Source: The Citizenhttp://www.thecitizen.co.tz/newe.php?id=16891
