Onatel Burundi, is a state-owned telecommunications provider in Burundi. It provides the full range of services including fixed and mobile voice, broadband and internet. The company has struggled to compete with private internet, broadband and mobile operators for many years.
History
Early years (1979–2003)
Onatel was created by decree No. 100/146 of 8 November 1979. It is a public industrial and commercial establishment with legal personality, supervised by the Ministry of Communication, Information Technology and Media. The International Development Association provided a loan of US$7,700,000 to cover start-up costs including buildings, equipment and vehicles.
Onatel was the only telecommunications company in Burundi, and at first only supported landline telephones. In the 1990s Onatel partnered with Télécel Zaire to form Télécel Burundi, providing the first mobile service in Burundi. Start-up capital of US$1 million was used to buy second-hand equipment. The venture did not generate dividends until 2003. In 2003 Onatel cut the link with Télécel Zaïre, receiving in compensation. Eventually Télécel Burundi became the mobile telephony operator Onamob.
By Decree-Law No. 01/011 of 4 September 1997 the government liberalized the telecommunications sector. It then restructured Onatel so that it could compete. Onatel steadily lost market share to the start-ups. Between 2003 and 2004 Onatel tried to negotiate a loan from South African companies, but wound up losing a US$600,000 deposit without any return.