Sierra Leone: Operators Owe Over $1.7 Billion to Universal Access Development Fund
January 18th 2023
The Universal Access Development Fund was created by the Sierra Leonean government under the Telecommunications Act of 2006. It is expected to be funded, among other things, by fees from telecom operators and service providers. Internet access.
Mobile Network Operators (MNOs) and Internet Service Providers (ISPs) owe over 33 trillion Leones (USD 1.7 billion) to the Universal Access Development Fund (UADF) in fees for the financial years 2020 and 2021. This is reported in the UADF 2021 audit report.
Mobile network operators and Internet service providers are supposed to pay royalties of 0.75% of total income chargeable to income tax as of January 1 of the previous year, according to the law on universal access 2019. Sections 3(a) and 3(b) of the text state that MNOs and ISPs that do not comply with the law will pay a penalty not exceeding 25% of the fee and interest of 5% on this one. In addition, they will not be eligible for renewal of their licenses under Section 28 of the Act.
Non-payment of fees could affect UADF’s ability to maintain service and implement its programs as part of its vision “ to ensure universal access and use of basic ICT and broadband by all people living in Sierra Leone ”.
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