Millicom International Cellular S.A. (Nasdaq Stock Market : MICC and Stockholmsbörsen : MIC), the global telecommunications company, today announces that the government of the Republic of Senegal has informed Millicom of its intention to revoke, effective October 31, 2008, the license to provide mobile telephony services of its Sentel GSM, S.A. subsidiary in Senegal. Sentel, operating under the Tigo brand, has approximately 1.8 million active subscribers and represents less than 5% of Millicom’s world-wide revenues and less than 3% of its EBITDA for the nine months ended September 2008.
Sentel’s twenty year license was granted in 1998 by a prior administration, before the enactment in 2002 of Senegal’s Telecommunications Act. Although the current Senegalese government has, since 2002, acknowledged the validity of Sentel’s license, it has also requested that Sentel renegotiate the terms of the license. Sentel has indicated its willingness to negotiate only certain enhancements to the license, including allowing for the provision of 3G voice and data services and the extension of the duration of the license.
Sentel is held through Millicom’s Dutch subsidiary, Millicom International Operations B.V. (MIO B.V.). Sentel, MIO B.V. and Millicom remain interested in negotiating an acceptable resolution and are hopeful that an amicable solution can be reached. At the same time, Sentel and MIO B.V. are reviewing their legal options and may take legal action against the government of the Republic of Senegal if the situation is not resolved satisfactorily.
(Source : Millicom International Cellular S.A., 30 octobre 2008)
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