MTN and Moov networks resurrected in Benin

Two decisions from the regulation authority, on 6 and 15 September 2007, granted them the authorisation to reactivate their networks after the incumbents agreed to accept and sign and commit themselves to the requirements contained in the new specifications proposed by the government.

The new agreement, which was the origin of the crisis between the GSM companies and the Government increases the cost of the user licence to 30 billion CFA i.e. US$60 million for a ten year period; instead of 5 billion as previously agreed.

By signing the new agreement with the Benin Government on 6 September, the Atlantic Telecom company, which is the owner of Moov has committed itself to pay the sum of 30 billion CFA, half of which will be transferred to the Benin treasury within 30 days following the signature and the payment of the second half.

On the other hand, Benin has agreed to grant tax relief on imported equipment and other facilities that will contribute to a more profitable business environment for Moov in Benin. The General Manager of Atlantic Telecom, who personally witnessed the signing of the new agreement, has announced new reforms to improve the quality of Moov services towards their subscribers.

Among other innovations are the introduction of Edge technology and GPRS to provide Internet access to subscribers on their mobile phones. Atlantic Telecom also declared the extension of its network to 20 Benin cities and the creation of the Atlantic Moov Foundation which will closely work with the government on social responsibility initiatives to alleviate poverty.

The resolution of the case of Areeba/MTN followed a meeting between Presidenst Thabo Mbeki of South Africa and Boni Yayi of Benin. The meeting took place at MTN headquarters in South Africa, last week. At the end of this private conversation between the two heads of State, the MTN group was also authorised to officially restart its activities in Benin.

MTN will also profit from tax relief and other facilities from the government of Benin.

Regarding consumers who suffered enormous losses following the suspension of the mobile phone networks, nothing has been said yet but indications are that most of them expect compensation for their losses.

There is no doubt that the resolution has been received by all parties with great relief. The mobile industry in Benin is still growing and has a long way to go to meet the demands of users. Benin's population is estimated at 8 million and the five mobile operators in the country have a market share of 1,258,000 among them.

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