The regulator said the call for tenders would close on July 3. Granting new licenses is an important element in the country’s telecommunications liberalisation program, it said.

The existing GSM licensees – MATTEL and Mauritel, which also operates a fixed line network – have been unable to satisfy rapidly increasing demand. Networks are often jammed and parts of the country remain uncovered.

"The equipment was hastily installed and wasn't sufficient to cater for such strong pressure from consumers," said an official at the regulatory authority.

The regulator has imposed heavy fines on the two operators for not honouring their commitments and has threatened to revoke their licenses, the source said.

However, the government decided, "to open up the sector to competition to improve the service and to rescue relations with the two North African investors."

Source: Agence France-Presse - WDR/Intelecon Regulatory News