Millicom Sues to Restore Senegalese Phone Network

After the Senegal Government cancelled the operating license for Millicom International's local mobile phone network last month - the company says that it has instituted arbitration proceedings with the International Center for the Settlement of Investment Disputes (ICSID) against the Republic of Senegal under provisions of Sentel's license and international law.

Sentel trades under the Tigo brandname, and has around 1.8 million customers.

Millicom and Sentel are seeking compensation for the purported expropriation of the Senegal license and monetary damages for breach of the license.

However, the Republic of Senegal has itself instituted court proceedings in Senegal against Millicom and Sentel. In that proceeding, the government alleges that it has cancelled Sentel's license and seeks damages against Sentel and Millicom under various theories.

Sentel's twenty year license was granted in 1998 by a prior administration, before the enactment in 2002 of Senegal's Telecommunications Act. Although the current Senegalese government has, since 2002, acknowledged the validity of Sentel's license, it has also requested that Sentel renegotiate the terms of the license.

Sentel has indicated its willingness to negotiate only certain enhancements to the license, including allowing for the provision of 3G voice and data services and the extension of the duration of the license. It should be noted that Sonatel, which trades as Orange has launched a trial HSDPA network in the capital city, Dakar.

There are currently only three licensed mobile networks in the country, and figures from the Mobile World database show that Orange is the market leader with just over 3 million customers, while the 3rd network, Sudatel Senegal has yet to launch its service.

On the web: Tigo - Millicom - Mobile World

Posted to the site on 12th November 2008