SONITEL

SONITEL, short for Société Nigérienne des Télécommunications, was Niger's state-linked telecommunications carrier and one of the country's principal fixed-line, international voice, Internet, and mobile communications operators. The company was created on 20 March 1997 during a government-led restructuring and privatization program affecting Niger's formerly large parastatal sector. It combined the telecommunications division of Niger's Office des Postes et Télécommunications with STIN, the Société des Télécommunications Internationales du Niger, which had controlled international landline connections. The formation of SONITEL followed a 1996 ordinance intended to open Niger's telecommunications sector to privatization and private investment. After the adoption of the Fifth Republic's 1999 Constitution, the government pursued a further transfer of ownership. An initial offering process did not succeed, but in December 2001 a Sino-Libyan consortium known as DATAPORT acquired 51 percent of SONITEL. DATAPORT consisted of ZTE and the Libyan Arab African Investment Company. The Nigerien state retained a substantial minority holding, while smaller stakes were assigned to private investors, SONITEL employees, and France Câbles & Radio, which had previously been associated with STIN. SONITEL remained a central part of Niger's communications infrastructure. Its activities included fixed-line telephone services, international voice connections, Internet communications, and management of the .ne country-code domain registry. Its mobile business was operated through the subsidiary SahelCom. In 2004, SONITEL's mobile-phone operations were opened to competition from foreign operators, ending the company's exclusive position in that segment. The company nevertheless retained monopoly rights or dominant responsibilities in several fixed and international communications areas. The privatized structure came under sustained criticism. Reports described weak operating performance, labor disputes, protests and strikes over pay and working conditions, and a large debt burden. The company was reported to have accumulated approximately 40 billion West African CFA francs in debt even after user fees had risen by 140 percent. These difficulties contributed to the Nigerien government's decision in February 2009 to cancel the privatization of SONITEL and SahelCom. The government announced that it would restore full state ownership and establish a new administration, while leaving open the possibility of a future privatization. A subsequent attempt to transfer the two companies to Libya's sovereign wealth interests in 2011 was unsuccessful, in part because the First Libyan Civil War disrupted the proposed transaction. The renationalization process was completed in 2012. SONITEL continued operating alongside SahelCom until 28 September 2016, when the Nigerien government merged the two entities to establish Niger Telecoms. SONITEL therefore ceased to exist as a standalone carrier, although its infrastructure, personnel, and telecommunications activities formed part of the successor organization.

SONITEL emerged from Niger's effort to reorganize and privatize its telecommunications infrastructure in the 1990s. Before SONITEL was created, telecommunications functions were divided between the telecommunications branch of the state postal and telecommunications office, Office des Postes et Télécommunications, and STIN, a company responsible for international telecommunications links. Niger adopted a telecommunications privatization ordinance in 1996 as part of a wider reform program influenced by international efforts to reduce the role of state parastatals. On 20 March 1997, the two telecommunications activities were combined to establish Société Nigérienne des Télécommunications, commonly known as SONITEL. The new company initially operated with the Nigerien state as its majority shareholder. The country's 1999 constitutional framework called for the company to be privatized. An initial attempt to offer shares did not attract a completed transaction, but a second process concluded in December 2001 when DATAPORT acquired 51 percent. DATAPORT was a Sino-Libyan consortium comprising ZTE and the Libyan Arab African Investment Company. The reported purchase price was 11.8 billion CFA francs. Following the transaction, the Nigerien government retained 34.11 percent, private investors held 11 percent, SONITEL employees held 3 percent, and France Câbles & Radio held 0.89 percent. SONITEL served as a core national communications operator. It provided fixed-line telephone connections and international voice services, operated Internet communications infrastructure, and managed Niger's .ne domain registry. Its mobile activities were associated with SahelCom, a subsidiary or related operating arm. In 2004, mobile services were opened to foreign competition. SONITEL retained a stronger position in Internet communications, international fixed-line voice, and domain-registration functions than it did in mobile services. The privatization did not resolve the company's operational and financial problems. SONITEL was criticized for poor service and weak performance after competition entered the market. Its workforce organized protests and strikes relating to compensation and employment conditions. The company was also reported to have accumulated debt of approximately 40 billion CFA francs despite a 140 percent increase in user fees. These conditions led the government to announce on 13 February 2009 that it was canceling the privatization of SONITEL and SahelCom. The communications minister characterized the privatization process as unsuccessful and stated that the state would take full ownership and install a new administration, while preserving the possibility of another privatization later. A proposed transaction involving Libya's sovereign wealth fund in 2011 did not succeed. The start of the First Libyan Civil War disrupted the prospective sale. The renationalization of the companies was completed in 2012, returning SONITEL to full state control. The company continued to operate alongside SahelCom for several more years. On 28 September 2016, the Nigerien government merged SONITEL and SahelCom into Niger Telecoms. This merger ended SONITEL's independent corporate life and transferred its telecommunications role into the new national operator.

• 2016

  Merged into Niger Telecoms

  [1]SONITELen.wikipedia.org

  SONITEL and SahelCom were merged on 28 September to create Niger Telecoms.

• 2012

  Renationalization completed

  [1]SONITELen.wikipedia.org

  The nationalization of SONITEL and its related mobile operation was completed after the failed privatization period.

• 2009

  Government reverses privatization

  [1]SONITELen.wikipedia.org

  Niger announced the cancellation of SONITEL's privatization and planned to restore full state ownership.

• 2004

  Mobile market opened to foreign competition

  [1]SONITELen.wikipedia.org

  SONITEL's mobile-phone operations were opened to competing foreign operators.

• 2001

  Majority privatization completed

  [1]SONITELen.wikipedia.org

  DATAPORT acquired 51 percent of SONITEL, while the Nigerien government and other stakeholders retained minority interests.

• 1997

  SONITEL established

  [1]SONITELen.wikipedia.org

  SONITEL was created on 20 March by combining the telecommunications division of Office des Postes et Télécommunications with STIN.

• 1996

  Telecommunications privatization framework adopted

  [1]SONITELen.wikipedia.org

  Niger passed an ordinance establishing a legal basis for privatizing telecommunications and other state-linked enterprises.

Niger's national telecommunications infrastructure operator and state-linked communications carrier, with historical responsibility for fixed-line, international, Internet, and mobile services.

• Telecommunications · 1997

  Fixed-line telephone services

  SONITEL operated Niger's fixed-line telephone infrastructure and provided national landline connectivity. Fixed communications remained one of the company's central responsibilities after mobile services were opened to competition.

• Telecommunications · 1997

  International voice communications

  Through the assets and functions inherited from STIN, SONITEL handled international fixed-line voice connections linking Niger with foreign telephone networks. This activity was among the areas in which the company retained a particularly important market position.

• Internet access

  Internet communications

  SONITEL provided Internet communications services and infrastructure in Niger. The company continued to hold a monopoly or dominant position in Internet communications during the period when its mobile business faced increasing competition.

• Mobile telecommunications

  Mobile telecommunications

  Mobile communications were handled through SahelCom, SONITEL's associated mobile operation. The segment was opened to foreign competition in 2004, ending SONITEL's exclusive position in mobile services.

• Internet infrastructure

  .ne domain registry

  SONITEL managed Niger's country-code top-level domain registry for .ne domains. This administrative and infrastructure role was part of the company's broader national communications responsibilities.

• 2016

  Merge SONITEL and SahelComM&A

  Background

  The government sought to consolidate Niger's state telecommunications operations after the failed privatization and subsequent renationalization.

  Action taken

  SONITEL was merged with SahelCom on 28 September to form Niger Telecoms.

  Aftermath

  SONITEL ceased to operate as a standalone corporate brand, with its activities and resources incorporated into Niger Telecoms.

  Source

• 2009

  Cancel the privatization and restore state ownershipStrategy

  Background

  The privatized structure was associated with criticism of operational performance, worker protests and strikes, and reported debt of approximately 40 billion CFA francs despite significant increases in user fees.

  Action taken

  The Nigerien government announced on 13 February that it was canceling the privatization of SONITEL and SahelCom and would retain full ownership while appointing a new administration.

  Aftermath

  The companies returned to state control. A later attempt to sell them to Libyan sovereign wealth interests also failed, and renationalization was completed in 2012.

  Reported accumulated debt. Approximately 40 billion CFA francs (By the 2009 privatization reversal)

  Source

• 2004

  Open mobile operations to foreign competitionStrategy

  Background

  Niger sought to introduce competition into telecommunications, particularly in the mobile segment.

  Action taken

  SONITEL's mobile-phone operations were opened to foreign competitors, while the company retained stronger positions in Internet, international fixed-line, and related infrastructure services.

  Aftermath

  SONITEL lost its exclusive position in mobile communications and was subsequently criticized for weak performance in the more competitive market.

  Source

• 2001

  Accept majority investment from DATAPORTM&A

  Background

  The Nigerien government pursued privatization after an earlier offering had failed, seeking private and international participation in the national telecommunications carrier.

  Action taken

  SONITEL transferred a 51 percent controlling stake to DATAPORT, a consortium comprising ZTE and the Libyan Arab African Investment Company.

  Aftermath

  The transaction placed SONITEL under private majority ownership, but the company later faced criticism, labor unrest, and substantial reported debt.

  Reported purchase price. 11.8 billion CFA francs (December 2001)

  Source

• 2016

  SONITEL merges with SahelCom to form Niger Telecoms[1]SONITELen.wikipedia.org

  M&A

  The Nigerien government merged SONITEL and SahelCom on 28 September 2016, creating Niger Telecoms and ending SONITEL's existence as a standalone company.

• 2011

  Attempted sale to Libyan sovereign wealth interests fails[1]SONITELen.wikipedia.org

  M&A · Other

  A proposed sale of SONITEL and SahelCom to Libya's sovereign wealth fund did not proceed after the outbreak of the First Libyan Civil War.

• 2009

  Niger cancels SONITEL's privatization[1]SONITELen.wikipedia.org

  Regulation · Other

  The Nigerien government announced that it was reversing the privatization of SONITEL and its mobile subsidiary SahelCom following criticism of performance, labor unrest, and the companies' financial difficulties.

• 2004

  SONITEL's mobile operations opened to competition[1]SONITELen.wikipedia.org

  Regulation · Other

  Niger opened SONITEL's mobile-phone business to foreign competition, reducing the carrier's exclusivity in mobile communications while it retained important fixed, Internet, and international communication functions.

• 2001

  DATAPORT acquires a majority stake in SONITEL[1]SONITELen.wikipedia.org

  M&A · Other

  A Sino-Libyan consortium formed by ZTE and the Libyan Arab African Investment Company acquired 51 percent of SONITEL after an earlier privatization offering had failed.

• 1997

  SONITEL created through the merger of Nigerien telecommunications operations[1]SONITELen.wikipedia.org

  Other

  SONITEL was established on 20 March 1997 by combining the telecommunications arm of Niger's Office des Postes et Télécommunications with STIN, the country's international telecommunications company.

1. 1SONITELen.wikipedia.org