The Nigerian Communications
Commission has said it is looking into a
plea for leniency made by MTN Nigeria
Communications Limited on the fine of
N1.04tn imposed on the company for its
failure to disconnect 5.2 million
unregistered subscribers.
In a statement signed by the Director of
Public Affairs, NCC, Mr. Tony Ojobo, and
made available to our correspondents on
Monday, the regulatory agency hinted
that the consideration of the plea had
affected the deadline for the payment of
the fine, which expired on Monday.
Ojobo said MTN, along with other mobile
operators, had been fined in August for a
similar offence, adding that while the
other operators decided to comply, MTN
remained recalcitrant.
He added that the fine was the last resort
since other avenues employed by the
regulatory agency had failed.
Ojobo said, “The fine of N1.04tn on MTN
Nigeria by the NCC was done in the
interest of the public, which has been at
the receiving end of security challenges.
Consequent upon the overwhelming
evidence of non-compliance and obvious
disregard for the rule of engagement by
MTN, the NCC had no choice but to
impose the sanctions.
“MTN, in a letter of November 2, 2015,
admitted the infraction and pleaded for
leniency. The commission has
acknowledged this and is looking into the
plea without any prejudice to the fine.
The fine remains but the appeal and
other engagements with MTN may affect
the payment deadline.
“The fine that was imposed on MTN was
the second within two months after the
operators were given a seven-day
ultimatum to deactivate all unregistered
and improperly registered SIM cards.
While others complied, MTN did not.”
Telling the story of the fine for the first
time, Ojobo said, “On August 4, at a
meeting of all the representatives of the
mobile network operators with the NCC,
major security challenges through
preregistered, unregistered and
improperly registered SIM cards topped
the agenda, after which the operators
were given the ultimatum to deactivate
such within seven days.
“On August 14, three days after the
ultimatum expired, the NCC carried out a
network audit; while other operators
complied with the directive to deactivate
improperly registered SIM cards, MTN
showed no sign of compliance at all.
“Four operators, MTN, Airtel, Globacom
and Etisalat, were sanctioned in August
for non-compliance with the directive to
deactivate the improperly registered SIM
cards. MTN got a fine of N102.2m;
Globacom, N7.4m; Etisalat, N7m; and
Airtel, N3.8m. Others complied, while
MTN flouted the fine.
“Based on the report of the compliance
audit team, an enforcement team, which
visited MTN from September 2 to 4, 2015
wherein MTN admitted that the team
confirmed that 5.2 million improperly
registered SIM cards were still left active
on their network; hence, a contravention
of the regulations was established.”
The commission also said, “Consistent
with the commission’s enforcement
process, MTN was by a letter dated
October 5 given notice to state why it
should not be sanctioned in line with the
regulations for failure to deactivate
improperly registered SIM cards that
were found to be active at the time of the
enforcement team’s visit of September
15.
“On October 19, the commission received
and reviewed MTN’s response and found
no convincing evidence why it should not
be sanctioned for the established
violations.
“Accordingly, by a letter dated October
20, 2015, the commission conveyed
appropriate sanctions to MTN in
accordance with Regulations 20(1) of the
Telephone Subscribers’ Registration
Regulation 2011, to pay the sum of
N200,000 only for each of the 5.2 million
improperly registered SIM cards.”
Ojobo added that the regulations on SIM
card registration were developed with the
full participation of all key industry
stakeholders, including all the mobile
network operators.
Meanwhile, the MTN Group has advised
shareholders to continue to exercise
caution when dealing in the company’s
securities until a further announcement is
made on the N1.04tn fine imposed on it
by the NCC.
The company also claimed that the NCC
had agreed that the fine N1.04tn would
not be payable until negotiations between
the two parties had been concluded.
The MTN Group said this in a statement it
made available to one of our
correspondents on Monday through the
Public Relations and Protocol Manager of
MTN Nigeria, Mr. Funso Aina.
The statement read in part, “Shareholders
are referred to the announcements
issued by the company on the Stock
Exchange News Service Limited on
October 26, 2015; October 30, 2015;
November 2, 2015; November 3, 2015;
and November 9, 2015, respectively.
“Shareholders were advised in previous
SENS announcements that the company
would update shareholders on all material
developments on this matter.”
The group recalled that the Executive
Chairman, Mr. Phuthuma Nhleko, had
personally met with the Nigerian
authorities to continue the ongoing
discussions with them regarding the fine.
It added, “These discussions include
matters of non-compliance and the
remedial measures that may have to be
adopted to address this.
“Although the Nigerian Communications
Commission set a deadline for the
payment of the fine by Monday,
November 16, 2015, shareholders are
advised that the Nigerian authorities
have, without prejudice, agreed that the
imposed fine will not be payable until the
negotiations have been concluded.”
