Botswana Telecommunications Corp (BTC) IPO

Telecom Investment Research Note

Synopsis

After more than a decade of preparation, investors are finally given an opportunity to become shareholders in Botswana’s national telco, BTC. An initial public offering (IPO) will see 49% of the company sold to the public and employees while the state will retain a majority stake. BTC is the only fixed-line operator in the country and its network infrastructure is among the most modern in Africa. In the mobile sector BTC was the last of three players to enter an already mature market, but its BeMobile network is gaining market share. Growth opportunities also exist in the broadband sector which has remained underdeveloped due to a lack of international bandwidth in the landlocked country. This situation improved recently when Botswana gained access to new international submarine fibre optic cables via neighbouring countries.

Table of Contents

• 1. Synopsis
• 2. Company overview
• 3. Preparation for privatisation
• 4. Financial results
• 5. Fixed-line business
  • 5.1 Network infrastructure
  • 5.2 National backbone network
  • 5.3 Access to international fibre bandwidth
• 6. Broadband
• 7. Mobile

• Table 1 – BTC financial results – 2005 - 2010
• Table 2 – Mobile subscribers by operator and annual change – September 2010

• Chart 1 – Mobile subscribers and penetration rate in Botswana – 2002 - 2012