Concerned about the problems the company is facing and its looming closure, Zambian president Rupiah Banda has appointed a committee to look at ways to save Zamtel from collapsing. The committee -- which comprises the ministers of Communications and Transport; Commerce Trade and Industry; Finance and National Planning; and Energy and Water Development -- is supposed to come up with a recapitalization plan or find an equity partner to rejuvenate the company.

The Ministry of Communication and Transport has already warned that Zamtel needs more than an infusion of money and different management -- it needs a new business model if it is to survive and compete with private service providers.

One of the business plans being considered includes separating CellZ -- Zamtel's sister company, which provides mobile services -- from Zamtel. CellZ operates under Zamtel management.

In December last year, the Zambian government engaged RP Capital of the U.K to value Zamtel assets and liabilities and find a buyer of shares in the company. RP Capital is yet to submit its report to the Zambian government but in the meantime, Zamtel's asset value continues to deteriorate.

Several African governments are privatizing incumbent telecom companies after failing to recapitalize them, hoping that the new owners will roll out new plans and services including data, video conferencing and Internet backbone offerings in addition to voice services.