Malawi telecom players irked by new licence conditions

Zain Malawi says they have noted that Globally Advanced Integrated Networks will be paying an annual levy equal to 2% in the first and second years, 3% in the third year, 4% the fourth and 5% thereafter.

This is contrary with what Zain Malawi pays which is a levy equal to 5% of audited net operating revenue for each year since they began their operations in the country.

“We therefore seek your justification as to why Globally Advanced Integrated Networks Limited should be treated differently,” queries Zain Malawi to MACRA.

The newly licensed company to provide fixed telephone line services, Access Communications Limited (ACL) has also contested MACRA's decision querying why the new company's licence stipulates that they pay US$100,000 in annual licence fees which is lower than the norm.

ACL says both MTL and ACL pay US$150,000 and therefore demand that MACRA explain if there has been a change of policy.

A telecommunication expert said providing different conditionalities for players disagrees with Clause 16 on Fair Trading Act which creates a level playing field in a particular service industry.

MACRA has however, defended itself in the letters of 18 March 2009, addressed to TNM Limited, Zain Malawi and MTL saying they have loosened up the conditions as an incentive to allow new players in the field to compete effectively.

However, Zain Malawi contends that before MACRA grants a licence it has to be satisfied with the financial position of a company and it is therefore not fair to give a company four years in which to prove its financial viability before it starts paying the standard rate of 5% of the net operating revenue.