TELECOMMUNICATION

The telecommunication department (Eritrean Telecommunications Service) is seeking interested joint venture partners in its effort to partially privatise the telecommunications industry. The communications proclamation, issued on March 1998, paves the way for private companies to invest in the communications sector. Private companies are now providing value added services such as Internet access. There has been mobile phone service since the beginning of 2001.

Eritrea's telecommunications network is in direct need of capital investment. With a per capita of 0.8 telephones per 100 persons Eritrean telecommunications is one of the least developed in sub-Saharan Africa. The government estimates that US$135 million is needed over the next decade to develop the country's telecommunications networks. ETS plans to put another 250 thousand new lines to bring the current per capita up to over one unit per 100 people.

Although a definite market assessment has not been conducted it is believed that there is a substantial market for Internet services. Local private companies are now providing e-mail and Internet services to over 1000 subscribers.

Eritrea's telecommunications sector offers opportunities for telecommunications companies. There is a long waiting list of subscribers. Currently the government gives priority to businesses, government ministries, and non-governmental organizations, while local residents are served last.

The proclamation allows the communications department to determine whether the operation of telecommunications networks and the provision of public telecommunications services are to remain exclusive rights activities or limited competition activities. Potential strategic partners may discuss these issues with the communications department during the joint venture agreement negotiations.

For direct inquiry about telecommunications prospects contact , The Director General of Eritrean Communications Department, on:

Tel. (+291-1) 11-58-47 or

Fax: (+291-1) 12-69-66.