(Ecofin Agency) - The Mauritanian government continues to push telecom operators to provide quality services to consumers. For instance, on October 31, Mauritel announced an investment program worth about $35 million to modernize and expand its telecom network.

On November 26, the Mauritanian Regulatory Authority (ARE) announced that it had imposed both financial and administrative sanctions on telecom companies Mattel, Mauritel, and Chinguitel. The regulator cited "failures observed in certain cities, localities, roadways, and urban areas."

Mauritel was fined 313.2 million ouguiyas (about $7.85 million) and had its current 2G license duration reduced by one month. Mattel was fined 127.03 million ouguiyas and had its 2G license shortened by two months. Chinguitel was required to pay 100.2 million ouguiyas to the public treasury, and the durations of its 2G, 3G, and 4G licenses were reduced by three, one, and two months, respectively.

These actions by the ARE follow a quality control inspection of electronic communications services conducted starting on September 23. The regulator aimed to check whether the operators had improved their compliance levels based on a previous inspection that took place between December 18, 2023, and January 24, 2024.

The ARE expects that these financial and administrative penalties will push telecom operators to "consistently deliver service levels that meet international standards," in line with their contractual commitments. For example, Mattel and Mauritel have already announced plans to expand and modernize their networks, which should result in better service quality. Mauritel has stated it invested 14 billion old ouguiyas (about $35.16 million).

However, the use of fines to regulate service quality is controversial. The Global System for Mobile Communications Association (GSMA) believes that the targets set by telecom regulators can be overly complex and disproportionate. They argue that the many performance indicators and often unrealistic parameters don't take into account the local environment. According to the GSMA, such sanctions can be counterproductive, creating uncertainty for operators and hindering their ability to execute long-term development plans.

To address this issue, the GSMA recommends alternative approaches, such as co-regulation. "The regulatory authority actively collaborates with service providers to set minimum performance targets based on a transparent and fair evaluation of factors impacting service quality. Service providers regularly publish performance goals for consumers to gain a competitive advantage," the association explained.