Benin Republic explains why Globacom’s license is withdrawn

The government of Benin Republic has said its rejection of Globacom-Benin’s bid to renew its operational license had nothing to do with sanctions against the company either for violation of its regulations or dispute over new conditions imposed for the license.

ARCEP-Benin, the Benin telecommunications industry regulatory authority for electronic communications and post, said in a response to PREMIUM TIMES’ enquiries on Wednesday that the decision was informed by a disagreement over the new price for the license.

“The non-renewal of the license does not result from a sanction, but from the lack of agreement between GLO MOBILE BENIN and the State of Benin on the price of the license,” ARCEP-BENIN said in its response by its Communication & Protocol Cell.

“The end of the GLO MOBILE BENIN GSM standard mobile phone network license does not fit into a sanction procedure, even less of any dispute over the new terms of the license, or between GLO MOBILE BENIN and ARCEP-BENIN, on the one hand, and between GLO MOBILE BENIN and the Government of Benin, on the other,” it added.

ARCEP-BENIN said the operating agreement between the Government of Benin and Glo Mobile Benin SA signed on August 20, 2007 expired on August 19.

In the contractual terms of that license, which has a 10 year validity period, ARCEP-BENIN said all parties, including Glo, had agreed that, on expiration, the renewal of the license could be subject to new conditions.

Consequently, ARCEP-BENIN said Glo Mobile Benin’s request for the renewal of the expired license was reviewed and given favourable recommendation for consideration by the government.

The agency said negotiations between the government of Benin Republic and Glo Mobile Benin were based on new conditions imposed as a result of current economic conditions of the electronic communications and post market as well as the country’s targeted sectoral strategy.

At the end of the negotiations, which was based on the price of the license, ARCEP-BENIN said both parties did not reach an agreement on new conditions for the renewal of the license.

Credit: Premium Times