Liberia Launches State-owned Telco, Libtelco, To Compete With MTN And Orange

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 and Lonestar Cell MTN.
 
To date, 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.”

Source: Statcounter, Global Stats

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This event comes as the LTA, Orange Liberia and Lonestar Cell MTN are at odds over the implementation of the surcharge regulation introduced by the regulator (call and data cost adjustments), which has resulted in a sharp increase in the cost. voice and data services by the two operators.

The privatisation of the long neglected incumbent telco Liberia Telecommunications Corporation (Libtelco) failed in 2005 though efforts to resuscitate the company had continued. As part of the efforts, the government effected amendments to the Telecommunications Act which would now enable the telco to enter the mobile market, although its potential effectiveness as a competitor to MTN and Orange is still doubtful.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer