MTN Group faces R3-billion “frequency fees” invoice
MTN Group’s operation in Benin has received a notification from the country’s regulator regarding outstanding frequency fees. MTN Benin received the notification from ARCEP, which said a process was being initiated to review the reasons it has not paid outstanding invoices for frequency fees for 2016 and 2017. “On 30 March 2017, the government of Benin issued MTN Benin frequency fees invoices for an amount equivalent to approximately £213 million for the period March 2016 to December 2017,” said MTN.
“Whilst 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.”
“MTN Benin has contested this amount on the basis that, inter alia, the amount is excessive, which has been confirmed by an independent benchmark report commissioned in terms of MTN Benin’s licence.”
The company said it will engage with the regulatory authorities to reach a solution.