Mozambique’s Deputy Minister of Transport and Communications Antonio Fernando has presented a telecoms bill to parliament which, if passed, will open the country’s fixed line sector up to competition and end TDM’s monopoly. At the same time Fernando confirmed his intention to privatise TDM later this year via the sale of a stake to a strategic investor. Justification for the sale lies with the government’s inability to fund the level of investment needed to bring Mozambique’s fixed line network up to an acceptable standard. The country has a fixed line teledensity of just 0.4%, with just 1% of lines installed in rural areas. The government’s target is to achieve a 2% penetration rate by 2007, a goal which is expected to cost in the region of USD1.3 billion.