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PwC Accelerating access to telecom services lessons from international experience Presented by Alistair Impey, Partner, PricewaterhouseCoopers

Introduction PricewaterhouseCoopers Privatisation and market liberalisation Investor considerations The Hungarian example Lessons for Nigeria

PricewaterhouseCoopers 4 Privatisation and market liberalisation History Opportunities of privatisation demonstrated by BT Advantages of privatisation of telecoms operations Liberalisation Privatisation methodologies Should one privatise natural monopolies

PricewaterhouseCoopers 5 Investor Considerations Constraints on sale of large telecoms operations The role of private foreign investors –Common misconceptions –Advantages –capital inflow –technology inflow –improved opportunities for staff –improved access to consumers

PricewaterhouseCoopers 6 The Hungarian example Year Milestone 1989Telecoms separated from postal services 1991Telecoms operations put into corporate structure 1993Separate mobile service created 30% of MATAV sold to foreign investors 1994Regional concession areas privatised. 2GSM licences awarded

PricewaterhouseCoopers 7 The Hungarian example Year Milestone 1995Foreign investor in MATAV purchases majority 1997All waiting lists eliminated, full national access to telecoms services. MATAV shares listed in NY 1999Final disposal of last shares held by State 2000MATAV expands internationally 2001Full liberalisation of market

PricewaterhouseCoopers 8 Lessons for Nigeria Regulated monopoly can assist development of national carrier to improve access LTO can usefully complement national carrier in increasing accessibility Need well qualified operator either as investor or contractor Local capital markets can raise substantial capital Current strong availability of vendor finance

PricewaterhouseCoopers Thank You

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