Telecom

Côte d'Ivoire: Government set global telecom licence renewal at FCfa 100 billion

Tuesday, 17 November 2015 04:18

During a meeting on 13 November 2015 with the Managing Directors of Orange, MTN and Moov, the minister of Information and Communication Technology, Bruno Nabagne Koné (photo), announced that the renewal of their global telecom licences - which allows them to market all types of mobile technologies - was set for FCfa 100 billion (USD 163 million). The new licence will be valid for 15 years, unlike the previous one which was offered for 20 years at FCfa 40 billion (USD 65 million). It must be paid in full in order to maintain access to the market.

Orange who purchased its telecom licence in Côte d'Ivoire in 1996 must renew it in the coming year. Same case for MTN who entered the Ivorian market in 2005, by buying the licence of Loteny Telecom, in operation since 1996. Moov Etisalat, who launched its activities in the country in 2006, after acquiring a majority shareholding in Atlantique Telecom, still has some time before going through this process.  

However, the telecom operators reckoned that the telecom licence renewal rate is too expensive and asked the government to decrease it. According to them, their expenditure is already rather high with the continuous investments they must make in order to improve network coverage and the quality of services. A request dismissed by the government who estimates that they have enough margin to recoup their investments and make substantial benefits based on the financial potential of the national market.

Small operators like Comium CI, GreeN and Café Mobile, indebted to the government for several billion of FCfa in various taxes, were not invited to meet with Bruno Nabagne Koné. Since 02 April 2015, they know their fate. They must merge to become a unique entity or exit the market. The government, not wanting any more small operators lacking substantial financial capacity and with a low quality of service, has already launched a call for tenders for a fourth mobile licence in the country. The applicants must have a proven track record in the telecommunications sector.

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