France Telecom buys Congo's CCT

Reuters Africa reports.

CCT is the fourth-biggest operator in Congo with 1.5 million subscribers, but it is heavily indebted, and Congo's government says it was no longer beneficial for the state.

The deal will see France Telecom paying $7 million for the government's 49% CCT stake, and a further $10 million for the 51% stake held by Chinese firm ZTE.

The deal comes as France Telecom comes under pressure from investors to find sources of strong revenue growth, Fox Business reveals.

The telco, already affected by regulatory pressures in Europe, faces intensifying competition in its French home market with the imminent arrival of a fourth mobile operator run by telecom group Iliad SA.

As a result, France Telecom is looking to double its revenues in Africa and the Middle East over the next five years, from $4.4 billion in 2010.

Bloomberg BusinessWeek says the list of potential high-growth markets for mobile operators in Africa is dwindling as companies including Vodafone, India's Bharti Airtel and Millicom International Cellular SA continue a fierce fight with local rivals for subscribers.

To expand further, France Telecom executives are considering Ethiopia, a country of more than 80 million, where a state telecom monopoly dominates the industry. It may also be interested in Algeria, where Orascom Telecom, founded by Egyptian billionaire Naguib Sawiris, is exiting after a tax dispute.