MTN faces regulatory action in Benin over unpaid R3 billion spectrum bill
MTN says that its operation in Benin has received notification from the local telecoms regulator (ARCEP) that a process has been initiated against it over unpaid spectrum fees.
The process was launched to review the reasons why MTN Benin has not paid outstanding invoices on frequency fees for 2016 and 2017.
According to MTN, on 30 March 2017, the government of Benin issued MTN Benin a frequency fees invoices for an amount equivalent to approximately US$213 million (R3 billion) for the period March 2016 to December 2017.
“While the license 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,” MTN said in a statement.
MTN has contested the amount on the basis that, among other things, the amount is excessive which it said has been confirmed by an independent benchmark report commissioned in terms of MTN Benin’s license.
“We will continue to engage with the regulatory authorities in Benin to find an amicable solution to this matter,” MTN said.
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