Orange gets state 4G and the renewal of its concession on Sonatel for 100 billion CFA francs

Mergers, Acquisitions and Financial Results

Orange Senegal is hoping to kick off its 4G service in the near future having reportedly secured a 20-year licence from the government for a consideration of XOF100 billion (USD173 million), Agence Ecofin writes, citing an article in the newspaper L’As.

If confirmed, the amount represents a three-fold premium on the reserve price of XOF30 billion set by local regulator the Regulation Authority of Post and Telecoms (Autorite de Regulation des Telecoms et des Postes, ARTP) – a figure it refused to reduce, even when the incumbent operators turned their back on its call for applications in January this year. It is understood that the cellco’s majority shareholder Orange Group agreed the fee based on ARTP’s willingness to renew the operating concession of Orange Senegal’s parent, fixed line operator Sonatel, for free; the licence is due to expire in 2017.