LIBERIA – The Liberia Telecommunications Authority (LTA) has granted a third mobile operating license to government-owned operator Liberia Telecommunications Corporation (Libtelco) to provide mobile voice and Internet services to the public.
The licensing of a third operator is expected to strengthen competition in mobile telephony services in a market dominated by two foreign operators, Orange Liberia, a subsidiary of Orange Network, and Lonestar Cell MTN, a subsidiary of MTN.
Libtelco has primarily focused on the distribution of fiber optic Internet services. The new license now authorizes it to also provide voice and mobile Internet services.
According to a statement from the LTA, Libtelco’s entry into the market will increase consumer choice in determining which network is right for them.
Libtelco has primarily focused on the distribution of fiber optic Internet services. The new license now authorizes it to also provide voice and mobile Internet services.
Competition between Orange Liberia and Lonestar Cell MTN has led to a reduction in pricing for voice and data services, and since this impacted on tax revenue the regulator was prompted in mid-2019 to impose a tariff floor.
Internet services are available from a number of wireless ISPs as well as the mobile operators. The high cost and limited bandwidth of connections means that internet access is expensive and penetration rates are very low.
Although additional bandwidth is available from an international submarine cable, considerable investment is still needed in domestic fixed-line infrastructure before end-users can make full use of the cable.
The harmonisation of a disorderly mobile licensing and spectrum allocation regime has caused some difficulties, and market penetration remains low compared to other countries in the region. Penetration has also been affected by SIM card registration requirements imposed in recent years.
The privatisation of the long neglected incumbent telco Liberia Telecommunications Corporation (Libtelco) failed in 2005 though efforts to resuscitate the company have continued.
As part of the efforts, the government has proposed amendments to the Telecommunications Act which would enable the telco to enter the mobile market, though its potential effectiveness as a competitor to MTN and Orange is doubtful.
The market is ineffectively monitored by the telecom regulator, which lacks the resources, technical expertise and documentation to enforce its orders.
As a result, a number of operators are able to avoid paying fees to the government and have continued to operate despite the regulator’s rulings that they must close down their services.
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