20091224

LUSAKA (Reuters) - Zambia's main opposition leader on Thursday said his party would renationalise Zambia's fixed line operator, Zamtel, if elected in 2011, because the decision to privatize the company is not in the best interest of the country.

India's Bharat Sanchar Nigam Ltd , Angola's Unitel and Libya's LAP Green Networks on Wednesday submitted bids to acquire between 51 and 75 percent of the stake in Zamtel.

However Patriotic Front (PF) party president Michael Sata said the sale of Zamtel was unacceptable because apart from it being a strategic organization, the new majority stake owners were likely to close the rural branches and concentrate on urban areas.

"Those bidding for Zamtel are doing so at owner's risk. The PF in government will reverse the decision to privatise Zamtel. Even if it is sold we will renationalise it," Sata told Reuters in an interview.

Sata said parliament would decide the conditions of Zamtel renationalisation.

Zamtel's revenue for the year to end-December was $100 million. It is Zambia's only licensed fixed-line provider of voice and data communications and has performed poorly despite its monopoly rights.

Sata said Zamtel had performed badly because the government owed it a lot of money.

"If the government paid all the Zamtel bills, Zamtel would be very viable. The government owes Zamtel trillions of kwacha and that is what has created problems," Sata said.