(4 minutes read)
· The Ethiopian government may take the hybrid model of process to rope in two more telecom operators as part of its privatization drive. To evolve the policy, the government is holding frequent public consultations
· So far, the government is considering three options; auction, beauty contest and hybrid models for the process to select the companies.
· Twelve companies including Vodafone, Snail Mobile, Telkom, etisalat, Liquid Telecom, Orange, Kandu Global Telecom, Axian, and MTN have expressed their interest to be part of the two operators in the country
The Ethiopian government may take the hybrid model of process to rope in two more telecom operators as part of its privatization drive. To evolve the policy, the government is holding frequent public consultations for partial privatization of Ethio Telecom.
So far, the government is considering three options; auction, beauty contest and hybrid models for the process to select the companies. The potential players expressed their preference for a hybrid model ro select the potential players. Hybrid model includes the auction plus beauty contest. A beauty contest (known as public interest franchising or menu auction) is a selection process where the regulatory agency awards the licenses to the operators that it perceives to be most suitable based on the proposed strategy of a company. An auction on the other hand is nothing less than a process where the firms who bid the most win the license. Though no decision is taken, the government sources are hinting at a hybrid model for selecting the two partners to Ethio.
.
Twelve companies including Vodafone, Snail Mobile, Telkom, etisalat, Liquid Telecom, Orange, Kandu Global Telecom, Axian, and MTN have expressed their interest to be part of the two operators in the country. International Finance Corporation, Roland Berger Gong, Coleago Consulting, Jones Day, and EY are being consulted for evolving guidelines for finance, legal, media and communication and technical aspects.
