METHODS OF SALE OF STATE-OWNED TELECOMMUNICATIONS ENTERPRISES

This article addresses the questions of how to sell a State-owned tele communications enterprise (SOTE) and to whom in light of the experienc e learned from the privatization of SOTEs in several developed and dev eloping countries. It presents several methods that can be used in sel ling an SOTE. The methods mostly used are variations or combinations o f the public offering method and the private sale method. The factors that are usually considered in choosing the method(s) and procedures t o sell equity in an SOTE to private investors are also discussed and i nclude the objectives of the government; the current status of the SOT E (its organizational structure, financial position and operational pe rformance), socio-political factors, and the level of development of t he domestic capital market.