PT opts out of Congolese Cellco

5 Oct 2007

Portugal Telecom (PT) has sold 90% of its stake in a non-operational wireless licensee in the Democratic Republic of Congo (DRC) to an unnamed buyer, claiming the business model it had planned for the African country is ‘no longer applicable’. PT, in 60/40 joint venture partnership with its Angolan subsidiary Unitel, acquired a 51% stake in Cellco in 2005. The company is holder of a GSM 900/1800 licence and was originally expected to begin commercial operations by mid-2006, though progress stalled at the planning stage. Fixed line operator OCPT owns a 39% stake in Cellco, with private Congolese investors holding the remaining 10%.