Phone line company Madamobil refuses to pay 2 millions of US dollars instead of the others

The HAT telecommunication ministry ordered the operator to repay the debts left by the company previously owning the present operator’s license. The concerned amount is the former operator Intercel’s main asset meant to be payed to the liquidation court. A brief seven days long has been granted for compliance. 

Madamobil did not comply, and threatened to address the issue in court, international if need be.  

Things do not have to be Andry Rajoelina’s way only because he had purchased the Ravinala radio and TV station. A change of name after an acquisition is not similar that the resale of a license. The HAT and its government’s ferocity towards a handful of new big investors is stunning the world of business. Madamobil is definitely hindered from starting its activities on quite controversial grounds.  

Madamobil’s leading board has yet been vigorously warned: “the ministry will require the Malagasy Office of Survey and Regulation of Telecommunications (Omert) to capitalize the cancellation and the repeal of the license transfer”. A meeting on top between the actors of this license transfer is being called upon in order to settle the problem. Madamobil, is indeed having to face up to the ministry all alone, whereas the Omert or the Justice could have been due opponents, had there been any genuine issue.  

Although the operator is risking losing everything, it does not let itself in for that so easily. It is, first and foremost, a matter of rights and principles, resistance to an economic dictatorship inclined to wild protectionism in favour of allied interests committed to have their on the country’s market. As an example, another operator enjoyed tax exoneration on no clear account. The amount in question is slightly the same as half of what the HAT is straining to drain from Madamobil. 

The issue’s hard core is the interpretation of the license transfer contract. Madamobil is maintaining that neither the specifications nor any legal obligations are compelling it to repay undue debts. The operator actually purchased a license, and not an enterprise. Besides, Intercel has been liquidated under court supervision. Madamobil’s leading board is, consequently, recommending addressing the responsible of the former mobile phone operator’s bankruptcy. Before its closing, Intercel would have cashed big payments before hitting the road.   

Madamobil already invested some 40 million dollars to launch its activity, one million of them to purchase Intercel’s license. The hindrance imposed by the government would cost 5 billions of ariary, or a few more than 2 million dollars. The burden is serious for a corporation on a starting line up, but still bearable since the operator is planning the investment of 300 million dollars on one five years’ long period. Consumers will have to wait for the battle’s issue before benefiting from a larger competition, especially since the newcomer is promising a wide panel of offers baptized “Life” to be an advantaging mixture of modern technology and aggressive price policy.  

Madamobil has been facing more of that before. Does it come up to saying that it is not welcome in Madagascar? The license has been acquired in 2008; investors having enjoyed evidences of support from the former regime would be in the current dictating one’s sight, wouldn’t they? Although the transitional government is straining to fill up its empty pockets, the process is dangerously looking like racket or unfair treatment at least. Power abuse is certainly in the menu. Since July 2009, bad surprises have been stacking for Madamobil: denied connection to other networks, denied right to install antennas, denied activity permission, and so on. The operator is increasingly getting pissed off, and legally wants to strike back.