For ages, many customers have alleged the MTN of performing above the law. Agreeing to them, the telecommunication company, which is Nigeria’s most patronized and also has the largest coverage, was untouchable.
$2.6billion (N510billion) of that number was made in Nigeria where MTN has around 60million, its highest subscriber base.
In spite of the remarkable track record, the MTN brand has been blamed of many abnormalities.
At the Consumer Protection Council (CPC), complaints about MTN are in thousands.
Specific current petitions against its South African compatriot, MultiChoice, owners of DSTV was like an eye opener. So bad this has got that the CPC lately captured the pay TV Company.
Had telecommunication giant, MTN Nigeria, forecast the situation it is going through, the company would have taken its host country and industry regulator more seriously.
For years, many customers have accused the MTN of acting above the law. According to them, the company, which is Nigeria’s most patronized and also has the largest coverage, was untouchable.
MTN remains the most valuable telecommunication company in Nigeria. Checks by DAILY POST on MTN Group financial results released in March 2015 shows that it made $12.43billion in 2014 from its 22 operations in Africa and Middle East.
$2.6billion (N510billion) of that figure was made in Nigeria where MTN has around 60million, its highest subscriber base.
Despite the impressive track record, the MTN brand has been accused of many irregularities.
At the Consumer Protection Council (CPC), complaints about MTN are in thousands.
Some latest petitions against its South African compatriot, MultiChoice, owners of DSTV was like an eye opener. So bad this has got that the CPC recently stormed the pay TV Company.
Past week, the Nigerian Communications Commission (NCC), the nation’s telecommunications regulator, criticized extra of N1trillion fine on the company for failing to disconnect subscribers with unregistered SIM cards bought previously January, 2012.
From that date, anyone buying a SIM card in Nigeria has had to register it under their name by law.
With threatening of sanctions, phone companies were ordered to register their current customers’ SIM cards.
Although others obeyed, MTN failed to do so. That slight has now earned it the largest fine in the history of telecom violations in West Africa.
Many Nigerians are eager over the news, saying it would power foreign countries making billions of Naira act conscientiously. They now think MTN is not unchallenged after all.
Fascinatingly, since the news broke, MTN has not given any official position yet. A sign of admission; fault conceivably.
MTN shares remain to drop, while loss announcement for 2015 is already an anticipated outcome.
Findings at the weekend exposed that the Nigerian government was furious that MTN, rather than be “partners in progress”, would for want of more income keep subscribers that ought to have been deregistered.
A source within the security circles told a correspondent that the company should guilt itself for the penalty.
Saying :“They engineered their own predicament. How would any one or company at a time we are battling to defeat Boko Haram, keep millions of subscribers active?
“Reports got to the presidency via the office of the National Security Adviser. MTN was indicted and a directive was forwarded to industry regulator, NCC, to take immediate action.
“In recent months, whenever we arrest Boko Haram members, we find phones and SIM cards with them. MTN SIMs are more; we never find any data when checks are run. This is unacceptable and we hope the fine will make others sit up. The era of impunity is over.”
Endorsement of federal government’s anger was the ultimatum by the NCC to MTN to pay the fine by mid-Novermber or endangers its license.
NCC had unfailingly engaged Mobile Network Operators, (MNOs) to severely observe to the regulations and its business rules in the registration of their subscribers.
Tony Ojobo, NCC spokesman, before the weekend told Reuters that MTN had until November 16 to make the payment, but that the two parties were in talks to determination the matter.
Ojobo, though, unveiled that outcome of the discussion, which has the presidency and security agencies involved, may affect the date.
In the meantime, MTN may have approved to the fine as it pleads for flabbergasted payment model.
Vanguard reports that this follows sequence of meeting alleged between MTN administration team from South Africa and Nigeria with the Vice President, Prof. Yemi Osinbajo.
Business sources disclosed that: “There have been series of meeting at the Presidency between the Vice President Osinbajo and MTN team both from South Africa and the Nigerian arm.
“MTN wanted a waiver considering their level of investments in the country, but government did not buy the idea of waiver. Instead, I think there will be concession, but certainly not a waiver.
“At the conclusion of the meeting, the MTN people negotiated on how to stagger the payment. The Presidency is even angry because MTN was a signatory to the regulation, but they are failing to comply with rules.”
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