Mauritius: Telecoms liberalisation progress

 22 July 2003 – According to a Reuters report, on Monday, the Mauritius telecommunications authority started reviewing applications from telecom service providers interested in entering the domestic telecommunication market. 

"Earlier this year, we began issuing licenses for ISP's (Internet service providers), V-SATs and facsimiles," Ashok Radhakissoon, chairman of the Information Technology Communication Authority (ICTA) said. 

"Today, we are addressing other applications which involve bigger, more costlier operations that will have a national impact such as international telephony, mobile operators as well as a second network operator for basic services."

 Over the next week, sixteen companies will appear before the ICTA apply for licenses. The available licenses include Internet, mobile and international telephony services. The majority of the applications are for an international license, with 14 companies willing to pay a five million rupee ($170,400) license fee. Mauritius Telecom, which is partially government-owned, has a monopoly, but in December 2002, the government announced the full liberalisation of the sector.

 "There is a lot of cash coming from international services – if you look at the figures of Mauritius telecom, 20% of its profit comes from the local basic service, whereas 80% of its profit stems from its international services," says Radhakissoon. 

India's state-run telecom giant Mahanagar Telephone Nigam Ltd (MTNL) is among the bidders and has submitted applications to provide fixed, mobile and ILD services, officials said. CityCall Ltd, a subsidiary of France's Outremer, also wants to provide ILD services as well as payphone services.

 With a population of 1.2 million, Mauritius is considered small, but Radhakissoon said it was an attractive market. He believes the market only has room for two more mobile licenses. There are currently 330,000 mobile subscribers in Mauritius.

 "It's a question of not only looking at the local market, but also at the fact that we have some 600,000 tourists who come here annually, and who have international service needs," says Radhakissoon.

 The ICTA is expected to announce its decision and issue the licenses before the end of August.

Intelecon Research & Consultancy Ltd. 22/07/2003

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