Benin Regulator Threatens to Shut-Down GSM Networks
South Africa's MTN has been hit with a retrospective 600% rise in its license fees in the African country of Benin, and is now facing having its network shut down by the regulator. Benin's Telecommunications Regulation Authority is reported to have suspended the operating license of both MTN, and rival operator Atlantique Telecom saying that the companies had adjusted their commercial names without permission.
"In defiance of specifications governing GSM operators in Benin and the sectoral policy of the government in the field of posts and telecommunications, Telecel and Arreba operators, represented by Talibi Haidra and Dader Mohamed respectively, changed the name of their companies by moving from Telecel to Moov and from Arreba to MTN", said the regulator in a statement.
"There are some regulatory matters that have been raised in Benin," corporate affairs executive Nozipho January-Bardill tol the South African Business Day newspaper "The MTN group is currently engaged in discussions to resolve those with the communications ministry there. MTN cannot comment further at this stage."
The networks can still carry calls, but their networks will be shut down tomorrow unless they sign new license deals. The new operating license has pushed the annual fee from CFA5 billion to CGA30 billion - but as the fee is being backdated, MTN is facing a bill of US$52 million to renew its operating license.
According to the figures from The Mobile World database, there are currently four operators in Benin - Bell Benin Communications; Liberty Communications; SpaceTel Benin (Areeba/MTN) & Telecel Benin (Atlantique Telecom). The country penetration level is around 16.6%. MTN acquired the network in Benin with its US$5.5 billion takeover of Investcom."
Posted to the site on 11th July 2007
