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Guinée-Etats-Unis d'Amérique
Marketing in Guinea


Telecommunications

The current network has been largely built or renovated since 1980. Conakry and its suburbs are equipped with three switching stations and distribution networks. Eleven switching stations and corresponding networks equip the provincial centers. Microwave transmission lines of more than 2000 km connect the provincial centers to Conakry through 3 routes. International links are made through the PANAFTEL network with neighboring countries and an Intelsat satellite with the rest of the world.

There are presently 11,000 main telephone lines. There is a considerable development potential, as sustainable demand is currently estimated at 29,000 main lines and at 36,000 by 1996. Enforcement of billing and receipt collections are still major problems in the sector, however.

Until recently, posts and telecommunications in Guinea were managed as ministerial departments. In 1989, the government set up an interministerial committee which agreed to start restructuring the sector and examine ways of improving of telecommunications, In August 1991, the government adopted a Statement of Sector Policy for the Telecommunications Services. The Statement provided that the supervising ministry would be reorganized and be responsible for policy and regulation of the sector, while operating functions would be under the responsibility of a commercially autonomous entity. The telecommunications company, SOTELGUI, could have private shareholders.

On June 2, 1992 a presidential decree created SOTELGUI and a telecommunications law was enacted. The company was granted independent management authority. The members of the Board of Directors were appointed on January 8, 1993 and the transfer of assets and operation from the Ministry of Communication to SOTELGUI became effective on August 30, 1993.
In the July 1993-July 1994 period, SOTELGUI was managed by France Cable under a twelve-month, IDA-financed contract. The purpose was to manage the company while privatization and capital investment plans were being developed. There was considerable concern that these arrangements could bias future contracts for privatization or procurement.

Under current arrangements, basic services for telephone and telex are a SOTELGUI monopoly for 10 years. However, these can be provided by private professional partners when such an association promises to be more efficient. New services and value-added can be licenned to private operators for periods of less than 10 years. The supply and maintenance of telecommunications equipment at subscriber's premises can be provided by private operators under licensing agreements.

SOTELGUI received technical assistance from the World Bank to create and maintain an effective management team. A staffing plan, including placement, recruitment and separation procedures, was implemented before the end of 1993. An accounting system, providing for independent audits, and a new tariff policy aiming at a 50 percent self-financing ratio of investments in 1994, were also adopted.

The Government of Guinea issued without success in October 1994 an International Call for Bids for private investors to purchase 51 percent of the shares of SOTELGUI. In late 1995, an agreement was reached with Malaysia Telecoms regarding the ownership and operation of SOTELGUI.


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