MTN, Orange Cameroon hit with XAF75bn licence renewal fee?

Mergers, Acquisitions and Financial Results

Cameroon’s two largest mobile operators MTN and Orange Cameroon are said to be in talks with the government to reduce the fee for the renewal of their operating licences, reports Agence Ecofin, citing Reperes.

The XAF75 billion (USD130 million) concession renewal cost was reportedly recommended by consulting and advisory firm MAAS Telecom, which had been hired by the government to determine the fee of the ten-year 2G/3G/4G licences based on the current and forecast financial performance of the two cellcos.

According to newspaper L’Oeil du Sahel, French-owned Orange Cameroon proposed a XAF40 billion fee to renew its licence (which expired on 18 January 2015), while South Africa-based market leader MTN suggested XAF35 billion for its permit, which is set to expire on 15 February.

Source: Telegeography 29 January 2015