MTN receives notice of regulatory hearing in Benin

10th November 2017 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Telecommunications firm MTN Benin on Friday confirmed the receipt of a notification from the telecommunications regulator Arcep for a review into nonpayment of outstanding frequency fees.

The company, in a statement, explained that it would continue to engage the regulatory authorities in Benin “to find an amicable solution to this matter”.

Arcep has initiated a review to determine why MTN Benin has not paid outstanding invoices on frequency fees for 2016 and 2017.

In March, MTN Benin was issued frequency fees invoices by the government of Benin for about $213-million for the period March 2016 to December 2017.

“MTN Benin has contested this amount on the basis that, besides others, the amount is excessive, which has been confirmed by an independent benchmark report commissioned in terms of MTN Benin’s licence,” MTN stated.

“While the licence agreement prescribes the calculation methodology for frequency fees, it also provides that fees should take into account regional benchmarks, international practices and the local economy,” it concluded.