|
|
A Special International Report Prepared byThe Washington Times Advertising Department
Published on April 22, 1999
[Home Page]
Advertisers (1) VictoriaBank
|
|
Moldova's telecom giant seeks privatization Operating in one of the world's fastest growing industries, Moldova's state-owned phone company appears to be rising to the challenges of the next century. As it searches for foreign investors, Moldtelecom is leading the region with its new technological innovations. Moldova currently has 15 lines per 100 people. It hopes to expand to 25 lines per 100 people. This increase would put the country on par with western Europe. The company recently invested $19 million to try to reach this target. About 17 percent of the network is digitalized. In 1985, Moldova became the first former Soviet republic to adopt a fiber optics network, and later on the first to develop a digital communications system. Last year, Moldtelecom shifted completely to fiber optics. The company's priority is to improve the quality of telecommunications in rural areas. Its goal is to add 100,000 new lines per year and continue digitalization in rural areas. A condition of the privatization process in the telecommunication industry is that foreign investors must allocate adequate resources to the development of rural areas. "In our search for a foreign investor, we are looking for a company that will not just to take the sour cream out of the can," says Stela Scola, General Director of Moldtelecom. "We would like to see an investor who will take into account the development needs of the entire country." As part of the privatization process Moldtelecom will retain its monopoly status over the market. The World Trade Organization (WTO) has accepted this short-term privatization measure, but it has also required that Moldova introduce more competition after the initial privatization phase. Costs to telephone subscribers are expected to decrease after privatization as new forms of competition are introduced. "It is incontestable that competition is essential to the growth of the telecommunications industry," says Scola. "We will welcome competition after the privatization process is complete." At the moment, Moldtelecom's principal competition comes from the Internet, due to increased email use. There are currently ten internet providers with fast access to the world wide web. Recently the Moldtelecom's Canadian partner, Teleglobe, installed high speed digital fluctuation channels designed for internet use. Moldtelecom cooperates with several western counterparts. American companies MCI and AT&T were among the first strategic foreign partners with Moldtelecom. Last year the company signed contracts with the Teleglobe and Danish company, DSC to provide satellite connections with North America and Europe. Siemens of Germany has equipped Moldtelecom with modern telecom technology. In January, as a preliminary step toward privatization, Moldtelecom was organized into a joint stock company, whose shareholders include Ericsson, Alcatel and Siemens. Recently the Greek telecommunications operator OTE, which owns a stake in the Romanian telecommunications company, has shown interest in purchasing a majority stake in the company. Moldtelecom plays a vital role in MoldovaÕs economy, both technologically and financially. The company employs 7,800 people and contributes $4.15 million annually in tax revenues. |
|
Table of Contents (1) Moldova: a 'model of democracy' |
