VODACOM: 12,502 -218 (-1.71%)
Vodacom challenges 2G network suspension in Congo court
(Adds Vodacom statement)
DAKAR, June 12 (Reuters) - Vodacom Group's local
unit in the Democratic Republic of Congo has filed a lawsuit
against the revocation of its 2G telecoms license, the country's
telecommunications minister said on Wednesday.
The ministry withdrew the license in April, saying in a
written order that its renewal in 2015 for $16 million did not
follow proper procedures. The ministry says the actual cost of
renewing the license is $65 million.
Vodacom, which holds a 51% stake in Vodacom Congo, said in a
statement that "it is in ongoing discussions with all the
relevant authorities to resolve this unfortunate situation."
"Vodacom Congo followed a legally prescribed process when
its 2G licence was extended in 2015 and duly complied with all
applicable laws and regulations," it said.
A hearing on Vodacom's challenge of the suspension took
place on Monday before the Council of State, which is expected
to render a judgment soon, Telecommunications Minister Emery
Okundji told Reuters, without providing additional details.
Vodacom Congo also holds 3G and 4G licenses, which are not
affected by the order. It is not clear how many of its 12
million customers have been affected by the April order.
Vodacom's operations in Congo accounted for $473.4 million
of the company's $5.85 billion in revenues for the year ending
March 31, 2019.
(Reporting By Aaron Ross, editing by Deepa Babington)
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