Togo’s ARCEP Boosts State Revenue with Simplified Royalty Regime and Telecom Fines

2023-07-23 10:12:00

(Ecofin Agency) – Togo also wants to simplify the royalty regime, another source of revenue for ARCEP. On April 5, 2023, the Council of Ministers adopted a draft decree to this effect to facilitate the work of the regulator.

In Togo, the Electronic Communications and Postal Regulatory Authority brought 4 billion FCFA to the state coffers during the year 2022, more than the 3.94 billion FCFA generated in 2021, according to official data. obtained by TogoFirst.

These funds come from fines imposed on telecom operators operating in the country, including Togocel and Moov Africa. Togocel received two financial penalties in February 2021 and June 2022, for a total of 3.4 billion FCFA. The reasons were intra- and extra-network tariff differentiation and serious breaches of the obligation to ensure the permanent availability of mobile electronic communication services.

In May 2021, Moov Africa Togo was ordered to pay nearly 594 million FCFA for non-compliance with the obligation of availability of services. Vivendi Africa Togo (GVA), which markets Canal Box via fiber-to-the-home Internet offers (FTTH), has meanwhile been served formal notice for serious and recurring breaches of service availability, but the conclusions of this procedure are not yet known.

This increase in ARCEP Togo’s revenue responds to the government’s desire to make the country a digital hub, as part of the “Togo Digital 2025” project. In August 2022, Cina Lawson, Minister for the Digital Economy, signed a decree setting 16 quality indicators to be observed by operators. Respecting them should ultimately improve the user experience.

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