Zamtel is up for sale but the Minister of Communications and Transport Geoffrey Lungwangwa has warned that the company's liabilities have continued to show steady increase in the last five months. The beleaguered company's debt has risen to more than US$150 million from $60 million five months ago.

Zamtel has failed to compete with regional mobile service providers including pan-African service provider Zain and MTN (Mobile Telecommunication Network).

Zamtel, which provides fixed, mobile and Internet services is at the brink of closing due to mounting losses and operational problems and the Zambian government has decided to sell it to international or regional operators or find an equity partner to save it from collapsing.

The Zambian government has for years pumped money into the company in hopes that it will be able to provide competitive telecom services, expand its services and make a profit. Zamtel also provides international gateways to private mobile service providers.

"The company was not ready to compete with other operators. We just have to find an equity partner who will run the company in a businesslike manner," Lungwangwa told lawmakers this week.