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MIC ends Senegal dispute

29 Aug 2012

Luxembourg’s Millicom International Cellular (MIC) has announced that it has reached an agreement with the government of Senegal, ending the long standing dispute over the validity of MIC’s licence in the country. Under the agreement, in addition to the Senegalese government recognising MIC’s mobile concession, the telco will be granted a 3G licence as well as receiving an update to its existing permissions, allowing it to offer WiMAX, fixed line and cable TV services. For its part, MIC – which operates in the country under its Tigo brand name – will pay an additional USD103 million over a series of instalments, with the total to be paid by December 2013. MIC will also receive a ten-year extension to its licence, which is now due to expire in 2028. The agreement is subject to the signing of final documentation, and both parties have sought a suspension of arbitration proceedings, initiated in 2008 before the International Centre for Settlement of Investment Disputes (ICSID).

Commenting on the resolution, MIC CEO Mikael Grahne said: ‘We are delighted to have reached an agreement with the newly elected government of the Republic of Senegal in a way that will be beneficial to both parties involved, as well as to the people of Senegal and our Tigo customers. An amicable settlement has always been the preferred solution for Millicom.’

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