Stockholm listed telco Millicom and the government of Senegal have agreed on the settlement of a year-long dispute about the validity of Millicom’s existing licence in the country. As a result of the settlement, which is awaiting final confirmation,…
Stockholm listed telco Millicom and the government of Senegal have agreed on the settlement of a year-long dispute about the validity of Millicom’s existing licence in the country. As a result of the settlement, which is awaiting final confirmation, Millicom’s existing licence will be recognised, and the company will be granted a 3G licence.
The company will make several payments to the government between closing of the settlement and the end of 2013, which will amount to US$103m overall.
Millicom said that its existing licences will be amended so that in the future it includes fixed line, WiMAX and cable TV. It will receive additional spectrum and a 10-year extension of the terms of its current licence until 2028.
To allow sufficient time to finalize documentation for the transaction to close, the parties have asked the ICSID (International Centre for Settlement of Investment Disputes) for a 3-month suspension of the arbitration proceedings that have been ongoing since 2008.
Millicom operates under the Tigo brand.
