World Dialogue on Regulation

With a US$ 71 million bid, France Telecom won a tender for a unified fixed and mobile license in Niger, beating out Maroc Telecom and Universel Niger.

"France Telecom is designated the provisional winner of the global license," Sory Zalika, head of Niger’s Multisectoral Regulatory Authority, said.

Maroc Telecom offered just US$ 29.7 million for the license. Universal Niger was disqualified for not meeting the tender requirements.

France Telecom has begun setting up a local operator under its Orange brand. Orange already operates fixed and mobile networks in a number of African countries.

Communications Minister Mohamed Ben Omar said that officials would pay particular attention to technical aspects of the bids, because previous tenders had focused on financial terms to the detriment of technical criteria.

"We want a quality service accessible to as many people as possible," he said.

France Telecom’s license marks the end of the fixed line monopoly of Sonitel, which is controlled by ZTE and Libya's LAAICO. Niger already has three mobile operators, Celtel Niger, Sonitel subsidiary Sahel-Com and Telecel Niger. Mobile users in the country number around 709,000.

Source: Reuters - WDR/Intelecon Regulatory News.

A France Telecom-led consortium won the auction for a 51% stake in Telkom Kenya with a US$ 390 million bid.

The France Telecom-led consortium beat out South Africa's Telkom and India's Reliance Communications. Telkom bid US$ 281 million, while Reliance Communications bid US$ 221 million.

"This transaction fits very strongly with France Telecom SA's strategy of targeted development in fast-growing markets," France Telecom said.

"As mobile penetration is currently lower than 30%, the Kenyan mobile market still offers a high growth potential," France Telecom added in a statement.

The consortium is required to establish a payment plan with the government by December 21.

Telkom Kenya is a fixed line monopoly in Kenya. Like many other developing countries, Kenya’s fixed line market has been stagnant since mobile liberalization, which took place in 2000. Treasury official Joseph Kinyua said the government privatized Telkom because of fraud, excess staff and the company’s bureaucratic approach to doing business. Telkom Kenya's 17,486 employees account for 49% of the company's budget but productivity is low, said Kinyua. Anne Bouverot of France Telecom said the company is free to retain only the staff it needs.

Investment Secretary Esther Koimett said that within the five years, France Telecom will be required to sell 11% of Telkom on the Nairobi Stock Exchange. The government will sell an additional 19% when the France Telecom sale takes place.

Source: Associated Press - WDR/Intelecon Regulatory News.

The Sudanese telecom operator Sudatel, will pay the government of Senegal US$ 200 million for a comprehensive telecommunications license.

Sudatel was officially awarded a comprehensive license in early September, after a tendering process overseen by the telecommunications regulator. By offering US$ 200 million, Sudatel outbid two competitors – Celtel, which offered US$ 105 million, and Bintel which offered US$ 152 million.

The comprehensive license includes the right to operate fixed line, mobile and international internet services. Sudatel, which also operates in Mauritania where it won the third mobile license, becomes the third mobile operator in Senegal after Sonatel Orange and Sentel.

With a population of 11 million, Senegal has about 3 million mobile users and 280,000 fixed telephone subscribers.

Source: Xinhua News Agency - WDR/Intelecon Regulatory News.

Unitel, a subsidiary of Russian mobile operator Vimpelcom, has received a 3G license in Uzbekistan.

Unitel, acquired by Vimpelcom in 2006, said that Uzbekistan’s telecommunications regulator awarded the company a license to provide 3G services across the country.

Unitel has 35.6% of the Uzbek mobile market. Its largest competitor, Uzdunrobita, owned by Russian operator Mobile TeleSystems (MTS), controls 50.1% of the market. Uzdunrobita was awarded a 3G license in April 2007.

Source: Reuters - WDR/Intelecon Regulatory News.

A Colombian arbitration panel ordered fixed-line operator Empresa de Telefonos de Bogota (ETB) to pay US$ 53.2 million to Telefonica in a dispute over interconnection fees.

Telefonica claims that since 2002, ETB has not been transferring to Telefonica a large enough portion of the fees it charges customers for calls made to the Telefonica’s mobile subscribers, Andres Perez, ETB's general secretary, said. The arbitration panel ruled in favour of Telefonica.

"We think we respected the contracts signed with Telefonica and the current regulation," Perez said.

ETB is required to pay US$53.2 million plus interest that accumulated during the lawsuit. ETB says it has set aside the cash to be able to pay the settlement and that it won't affect the company's profits reported so far. Perez said ETB will appeal the decision.

Source: Dow Jones - WDR/Intelecon Regulatory News.

Brazil's Communications Minister Helio Costa says a plan to extend broadband service to schools would cost US$ 115 million.

The government expects to deploy 208,000 internet access points, including 143,000 at schools, health centres and police stations. Some schools already have broadband service through other universal access projects such as Gesac, which uses VSAT to offer broadband at 3,450 locations. Costa said the project could be expanded to create a national network for sectors other than education. The government intends to begin the expansion in January 2008, using funds from FUST, the universal access fund, the ministry or the private sector.

In related developments, fixed line operators are required to deploy service in less profitable regions, for entire communities rather than schools. On November 6, Anatel, the telecommunications regulator, approved a change in these obligations, eliminating the requirement to install public telecommunications services and creating a requirement to install backhaul infrastructure for broadband service in municipalities currently lacking capacity. The goal is to provide broadband to 3,570 additional municipalities by 2010. The previous plan required operators to install 8,461 access points.

Source: Business News Americas - WDR/Intelecon Regulatory News.

Lap Green Networks paid the Rwandan government US$ 50 million as an initial payment for an 80% stake in Rwandatel. The payment will allow Lap Green to proceed with their takeover of Rwandatel, likely on November 20.

Lap Green said they would pay the remaining US$ 50 million owed by 2009. During the bidding process, the company agreed to pay US$ 100 million for the 80% stake. The government sold the remaining 20% of Rwandatel to the Social Security Fund.

Lap Green is owned by Libya Africa Investments Portfolio for Africa, a consortium that has reorganised the African interests of the Libyan government. The company promises to invest US$ 317 million to expand Rwanda’s telecom sector. The investment includes a promise to invest in a 3G GSM mobile network with a two million subscriber capacity. The company also promised to eliminate cross-border roaming fees on calls between users in Uganda and Rwanda. Lap Green holds a 69% stake in Uganda’s UTL.

As part of the Rwandatel acquisition, Lap Green also takes over Terracom's CDMA mobile network. However, the company plans to build a new GSM network as it expands its mobile offering.

Source: The New Times - WDR/Intelecon Regulatory News.