Communication
MTN to sue NCC over N1tn fine
By Yemie ADEOYE
LAGOS-FOLLOWING the lingering controversy between the Nigerian Communications Commission, NCC and South African telecoms giant MTN over N1 trillion naira fine the MTN Group on Thursday said it had asked its Nigerian subsidiary not pay the N780bn fine imposed on it by the Nigerian Communications Commission.
The NCC had initially fined MTN Nigeria N1.04tn for its failure to disconnect 5.1 million unregistered Subscriber Identification Module cards, but the fine was later reduced by 25 per cent to N780bn upon pleas by the firm.
It said having discovered that the imposition of the fine was not in accordance with the NCC’s powers under the Nigerian Communications Act, there were valid grounds upon which to challenge it.
The Group Public Affairs Manager, MTN Group, South Africa, Chris Maroleng, signed the statement.
He said that prior to seeking legal redress, “all factors having a bearing on the matter were thoroughly and carefully considered, including a review of the circumstances leading to the fine and the subsequent letters received from the Nigerian Communications Commission.”
“MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action), the parties are enjoined to restrain from taking further action until the matter is finally determined. This is consistent with previous judicial decisions in Nigeria,” he stated.
Maroleng added that notwithstanding the action, the MTN Group would continue to engage with the Nigerian authorities to try to ensure an amicable resolution in the best interests of the company, its stakeholders and the NCC.
“Shareholders are, therefore, advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” he added.
However, the Public Affairs Director, NCC, Tony Ojobo, said the commission had yet to receive any court summons on the matter, adding, “When we get it, the NCC will react appropriately.”
According to him, the court is for everybody and it will serve as an opportunity to test some of Nigeria’s laws.
“The commission is ready for them. When we get the summons, we shall meet them in court,” Ojobo added.
In a significant market projection, Mordor Intelligence predicts that the Nigerian telecom sector is set to surge to a value of $11.43 billion by 2029.
The report anticipates a steady growth trajectory with a cumulative average growth rate (CAGR) of 4.70% between 2024 and 2029, based on the current market value of $9.09 billion.
The transformation of Nigeria’s telecom landscape, fueled by government initiatives to boost internet infrastructure and broadband connectivity, coupled with rising data consumption, 5G deployments, and innovative strategies from major telecom players, is expected to drive this substantial market expansion.
The report underscores additional factors propelling the growth of Nigeria’s telecom sector, emphasizing the surge in smartphone adoption.
the report said “Increased smartphone adoption in Nigeria has fueled the development of a dynamic digital services sector. Currently, millions of Nigerians use mobile apps, including social networking sites, e-commerce, and financial services.
“These apps could leverage smartphones’ capabilities to offer speed, convenience, and efficiency, encouraging more people to invest in smartphones.
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
Mordor Intelligence highlights that the flourishing e-commerce and digital service platforms in Nigeria are significant drivers behind the escalating demand for dependable telecom services in the country.
The Nigerian Communications Commission (NCC) has granted MTN’s request to partially disconnect Globacom (Glo) from its network owing to unsettled interconnect charges.
Reuben Muoka, the NCC’s Director of Public Affairs, disclosed this in a document named ‘Pre-Disconnection Notice’ on Monday.
The move follows Glo’s persistent failure to clear its outstanding debts despite multiple attempts to resolve the issue.
Under this partial disconnection, Globacom subscribers will solely receive calls from MTN users, while retaining access to other network services like outgoing calls to other networks and data services.
However, they won’t be able to initiate calls to MTN users during this period.
The statement read, “All subscribers are, therefore requested to take notice that the Commission has approved the Partial Disconnection of Globacom to MTN in accordance with Section 100 of the Nigerian Communications Act, 2003 and Paragraph 9 of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
“At the expiration of 10 days from January 8, 2024, subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.
“The Partial Disconnection, however, will allow in-bound calls to the Globacom network,” it added
Nigerian telecommunication users, along with others within the country, expended a total of N3.33 trillion on various telecom services such as calls, data, SMS, and more throughout 2022, according to the Nigerian Communications Commission (NCC).
This information comes from the recently published ‘2022 Subscriber/Network Data Annual Report’ by the NCC, which also revealed that telecom companies generated N3.33 trillion in overall revenue for that year.
The report further highlights a noteworthy growth of active voice subscriptions, rising from 195,463,898 subscriptions in 2021 to 222,571,568 by December 2022, marking a 13.86% year-on-year increase.
Commenting on the increase, it said, “The increase in the Operators’ subscriber base was attributed to a number of reasons which includes subscriber loyalty, promos, seasonal effects, aggressive consumer acquisition drive, and competitive product offerings across all the networks.”
It noted that the growth in active subscriptions impacted positively on other derived telecom indicators such as teledensity, Internet penetration as well as broadband penetration.
Data usage also continued its surge in 2022. It increased by 46.77 per cent to 518,381.78TB as of the end of the year.
The NCC stated, “There was an increase in the volume of data consumed at the year-end December 2022 when compared with the year-end December 2021.
“The total volume of data consumed by subscribers increased to 518,381.78TB as of December 2022 from 353,118.89TB as of December 2021. This represents an increase of 46.77 per cent in data consumption within the period.”
How NERC’s New Commercial Billing Threatens Healthcare, Economy
Kwara-based Catholic School Shines In 2024 UTME: 30 Students Score Above 300
Fuel Crisis: No End In Sight As NNPC, IPMAN Fight Dirty
Vigilantes Slain, Village Heads Abducted In Kaduna Attack
Subsidy Removal, Currency Reforms Vital For Economic Revival – VP Shettima
Another Premium Under-Bridge Apartment Uncovered In Lagos
Sahara’s Tonye Cole resigns from GPHCDA
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Oando opens ultra-modern petrol station in Lagos
Shell launches Nigeria campaign on energy efficiency
