Telcos to face extra sanctions as they fail to pay NCC’s N1.17bn fine

Ben Uzor Jr

Erring operators in Nigeria’s telecommunications market – MTN, Globacom, Airtel and Etisalat will face extra sanctions for failing to meet the payment deadline for the N1.17 billion fines imposed on them by the Nigerian Communications Commission (NCC) for poor quality of service, Business Day gathered. On May 11, the NCC had placed a collective fine of N1.17 billion on the operators for rendering poor services to subscribers on their networks. The regulator, however, gave operators till May 25 to pay the fine, or risk payment of additional two million, five hundred thousand naira (N2, 500, 000) per day for as long as the contravention persists.

The penalties were as a result of the contravention of the provisions of the quality of service regulations by the NCC as the operators failed to meet with the minimum standard of quality of service including the key performance indicators (KPIs). Informed sources told Business Day that operators were unlikely to pay the fine, as they have expressed discontent with the manner the NCC imposed the fine on them. According to operators, the NCC made a public spectacle of the issue, rather than addressing it. To this end, top executives of the four firms are already engaging in intense lobbying with a view to overturning the fine imposed on them.

It was gathered that the operators took a collective decision on the matter after a joint meeting on Thursday last week, vowing not to pay the fine. They had already articulated their position on the matter to the Minister of Communications Technology who promised to discuss the issue with the Presidency. Moreover, Reuben Mouka, head of media and publicity, NCC said yesterday that failure of the affected operators to pay the fine as at close of work on Friday (May 25), which was the deadline, means that the penalty of N2.5 million per day has started counting, including Saturday, Sunday and Monday. This means that they will pay the N1.17 billion and still pay the penalties. “Even if the penalty last for 20 days, they will pay.

“This means that if the penalty period last for 20 days, operators will pay additional N50 million each. We stated this in the circular we sent to them.” Besides, Tony Ojobo, director of public affairs at NCC, yesterday explained that the commission will come out with its final decision on the matter before the week runs out. He stressed that the penalty charges of N2.5 million had started counting, “except there is any reason to do otherwise.” Gbenga Adebayo, chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), blamed NCC, policy makers and the federal government for the current poor quality of service across networks, insisting that the operators would do better, if given the right environment to operate.

“NCC is aware of our predicaments as telecoms service providers, yet it went to make a public show by imposing fine on telecoms operators, instead of helping operators to solve the problems,” Adebayo stated. Deolu Ogunbanjo, President, National Association of Telecoms Subscribers (NATCOMS), who commended the commission on the fine, called on the NCC to redirect the N1.17 billion fine. He suggested that the amount be shared amongst affected telecoms subscribers. According to him, the action of NCC amounted to raising money for government, leaving the subscribers out of the matter, when in actual sense it was the subscribers that suffered the pains and loss of money associated with poor service offering.

A breakdown of the penalties indicates that MTN and Etisalat will pay the sum of three hundred and sixty million (N360, 000, 000) each while Airtel is to pay the sum of two hundred and seventy million naira (N270, 000, 000). Globacom is to pay a penalty in the sum of one hundred and eighty million naira (N180, 000, 000). In the letter communicating the penalties to the different operators, which was signed by the director, legal and regulatory services, Josephine Amuwa, and the head of compliance monitoring and enforcement, Ubale Maska, the Commission said “All the operators are to pay the penalties on or before May 25, 2012 or be liable to payment of additional two million, five hundred thousand naira (N2, 500, 000) per day for as long as the contravention persists.” According to NCC, it monitored the performance of the operators on the different parameters, in line with the provisions of the regulation, as provided for the NCC, and discovered that operators were in contravention of the provisions.