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Operators may sue commission
Ben Uzor Jr
There are strong indications that the Nigerian Communications Commission
(NCC) may withdraw critical regulatory services to erring telecommunications
companies if they refuse to pay the cumulative N1.17 billion fine for poor
quality of service rendered to subscribers on their respective networks,
Business Day can now reveal. One of such services the regulator could withdraw,
Business Day gathered is the issuance of new Mobile Subscriber Identification
Digital Numbers (MSIDN) series to erring operators for new subscribers on its
network. This move, according to informed sources is the first in a series of
regulatory sanctions that the NCC would impose on telecoms operators if they
fail to comply with its directive on payment of the fines.
It was also learnt that the NCC will stop entertaining any request
whatsoever from erring network operators until they have paid the fines.
According to an informed source, the commission might also stop approving new
products and services developed by erring operators for their subscribers. This
is in an attempt to compel them to comply with the commission's directive.
Analysts however told Business Day that these actions if implemented by the
telecoms regulator might adversely affect telcos' performance in terms of
revenue generation and profitability. "There are options that are open to
the regulator in the event where the service provider is not ready to obey.
There is no way a service provider can do without the regulator. There are so
many things a service provider cannot do without approval of the regulator. The
regulator has a number of regulatory tools to get the service providers to
conform or obey the rules", Tony Ojobo, director of public affairs, NCC
said.
Ojobo was however not specific about what course of action the
regulator would take. On May 11, the telecom regulator 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, but they failed to meet the payment deadline. The NCC instead
said in line with the quality of service guideline, each of the operators would
pay an additional N2.5 million each day as long as the contravention persists.
As at Monday (June 4), MTN is expected to pay a total of N382,
500, 000, while Airtel will pay the sum of N292, 500, 000. Etisalat, which was
initially billed to pay N372, 500, 00, with the addition of N10, 000, 000, the
company will be paying the total sum of N382, 500, 000. Globacom on the other
hand, is expected to pay a total of N202, 500, 000. The grand total the four
companies are to now pay will be N1, 260, 000, 000. Moreover, telecoms
operators under the auspices of the Association of Licensed Operators of
Nigeria (ALTON) are seriously considering suing the NCC over the N1.17 billion
penalty imposed on them for poor quality services in the months of March and
April by the regulatory body.
Gbenga Adebayo, chairman of ALTON in an interview, was sure of the
possibility of the association seeking redress in the law court if the NCC
insisted on implementing the fine. According to Adebayo, if dialogue, legal
process and other options failed, the operators would pay the fine, but not
without a cost to all stakeholders, including the country’s over 96 million
active subscribers. “I will warn that the NCC should mind the cost because if
operators pay the fine, it would come at a cost to everybody. The issue of fine
will not improve the quality of service, and if NCC keeps asking operators to
pay fine; then, NCC will preside over a collapsed industry. “Let me warn again
there is no institution that is insulated against failure and the fastest way
to make a business fail is by introducing unfavourable policies. We should be
careful not to destroy the telecoms industry with penalty regimes or with
policies because the industry is not established yet.”
First published on Business Day Media, Monday 4 June 2012.
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