The Nation Newspaper

Tag: MTN

  • ‎ SIM infraction: MTN agrees to pay N330bn to FG

    MTN Group has agreed to pay a reduced fine of 330 billion naira ($1.67 billion) in a settlement with the Nigeria Communication Commission (NCC), it said on Friday, sending shares in the South African telecoms provider soaring.

    The fine will be paid over three years and is smaller than the $5.2 billion sought by NCC last October for failing to deactivate more than five million unregistered SIM cards on its network, Reuters reported.

    Shares in MTN surged 18 percent to 146 rand after the announcement in their biggest jump since April 2000. They have shed 22 percent since the fine was announced.

    MTN, Africa’s largest telecoms company, has already paid 50 billion of the 330 billion naira owed.

    The rest will be paid in six instalments over three years, the company said in a statement.

    The settlement also clears the way for MTN to list its local unit on the Nigerian Stock Exchange as soon as “commercially and legally possible,” it said.

    “The relationship between MTN, the Federal Government of Nigeria and the Nigerian Communication Commission has been restored and strengthened,” MTN Executive Chairman, Phuthuma Nhleko, said.

    MTN has been negotiating for months with Nigerian officials over the $5.2 billion fine, which was later reduced to $3.9 billion.

  • MTN ‘will pay fine’

    The Deputy Chairman of the House of Representatives Committee on Information and Communication Technology (ICT), Alhaji Ahmed Garba Bichi said yesterday that the on-going probe instituted by the House on the N1.04 trillion fine on MTN by the Nigerian Communication Commission (NCC) would not stop the payment of the fine.

    He said the action of the House would rather facilitate consultations which would lead to the payment of the fine.

    He spoke with reporters in Abuja shortly after the opening ceremony of the 2016 Nigeria Internet Governance Forum (NIGF) at the Shehu Musa Yar’Adua Centre.

    His remarks came as the Minister of Comminications Technology, Adebayo Shittu said the Federal Government would leave no stone unturned to ensure the success of e-governance in the country.

    Represented by Mr Tope Fagbenle, he said all hands should be on the deck to develop the nation’s ICT sector, stressing that government would continue to implement policies that would attract investments into the industry.

    However, Alhaji Bichi confirmed that MTN was yet to pay the fine because of on-going investigations on the matter by the lawmakers.

  • Reps clear coast for talks on MTN’s $3.5b fine

    Reps clear coast for talks on MTN’s $3.5b fine

    • Operator: we ‘ll prevent repeat

    The House of Representatives yesterday said the Nigerian Communications Commission (NCC) can resume talks with MTN Group over the $3.9 billion fine imposed on it while the lawmakers continue an investigation into the penalty.

    In October last year, NCC fined the telco. The chairman, House Communications Committee, Saheed Fijabi said the NCC should lead the negotiations. The lawmakers will complete their probe and release something “very soon,” he said.

    “At the discretion of the President, if they (NCC) feel they want to negotiate, they should continue negotiating; we will continue with our own investigation. We don’t want to rush into any conclusion for now because of the sensitivity of the case,” Fijabi said by phone.

    The NCC is reluctant to revive talks without knowing the outcome of the probe. The regulator is waiting for “official communication” from the House of Representatives regarding the outcome of the investigation before it can reopen talks, NCC spokesman Tony Ojobo said by phone. “We wouldn’t want to go ahead and conclude and then their report is saying something totally different.”

    Meanwhile, MTN Group Chairman, Phuthuma Nhleko, has assured shareholders that steps were being taken to avoid a repeat of the mistakes that led to it being fined $3.9 billion by the NCC.

    “We are going to beef up regulatory compliance; we could have done things differently,” Nhleko said.

  • $3.9b fine: MTN shares slump as govt suspends talks

    $3.9b fine: MTN shares slump as govt suspends talks

    MTN shares fell after Nigeria suspended talks about a $3.9 billion fine on the South African mobile-phone company while the country’s House of Representatives completes an investigation into the nature of the penalty.

    The stock declined 2.6 per cent, the most since May 12, to R125 as of 9.32am in Johannesburg, valuing the company at R231 billion ($14.8 billion). The shares have plunged almost 35 per cent since the fine, originally set at $5.2 billion, was levied in October.

    “Any delays in finding a resolution for the MTN fine will play into trading and keep MTN’s share price suppressed,” Peter Takaendesa, an analyst at Mergence Investment Managers, said by phone from Cape Town yesterday. “The big event to watch this week will be MTN’s annual general meeting, where the market might also get additional clarity,” he added.

    Nigeria’s decision to put talks on hold will frustrate Johannesburg-based MTN as it seeks to resolve a fine that was levied for missing a deadline to disconnect customers deemed unregistered in the country, which is battling an Islamist insurgency. The company’s stock decline has cost MTN the title of Africa’s biggest wireless company by market capitalisation, losing it to crosstown rival Vodacom.

    The Nigerian lawmakers “have set up a committee to investigate the MTN saga and they are still on it,” Victor Oluwadamilare, speciall assistant (media) to Communications Technology Minister, Barr Adebayo Shittu, said by phone from Abuja at the weekend. “Until they are through with it, nothing can be done,” he added.

    Executive Chairman Phuthuma Nhleko returned to the helm in November for a six-month term to resolve the crisis, yet he remains in charge having not fulfilled his mandate. He will address shareholders at the annual meeting in Johannesburg on Wednesday.

    He said: “The Federal Government, the Nigerian Communications Commission (NCC) and the Ministry of Communications can do nothing about the MTN case until the committee concludes its thorough investigation. There’s no point dealing with a particular organisation from different fronts. It would be counter-productive.”

  • House probe stalls talks on MTN’s N1.04tr fine, says minister

    The Federal Government asked telecoms service provider,  MTN Nigeria to pay N50billion not as part payment of the N1.04trillion fine but as a demonstration of the telcos commitment to its out-of-court settlement of the matter, Communications Technology Minister, Adebayo Shittu has said.

    He said the telco was sanctioned for violating the  Subscriber Identification Module (SIM) card registration laws.

    MTN was fined N1.04 trillion by the Nigerian Communications Commission (NCC) for having improperly registered active SIM cards running millions on its network.

    The downward review of the fine by 25 per cent as well as payment of N50billion by the telco later led to the investigation of the issue by the House of Representatives.

    Making presentation on the floor of the House on diversification of the Nigerian economy, Shitu said the Ministry asked the telco to pay N50billion in respect of the fine, adding however that the money was not part of the fine.

    According to him,  MTN took the matter to court but later offered to settle it out of court which was why it was asked to pay N50billion as a sign of commitment to the new deal.

    He also told the lawmakers that negotiation for review of the fine has been stalled due to ongoing  investigation of the matter by the House.

    Shitu however assured the House that, as soon as it concludes its investigation, negotiation of the fine would commence.

    Chairman, House Committee on Communications, Saheed Fijabi (APC, Oyo) took on the minister that his comment on the floor was contrary to what he told the Investigative Committee.

    According to Fijabi, the minister denied being involved in the downward review of the fine as well as the payment of N50billion.

    Further on his presentation, the minister, who said the government is set to turn the Information Communications Technology (ICT) sector into a cash cow for the country disclosed that plans are at advanced stage to reposition the Nigerian Postal Services  (NIPOST).

    He said with over 2,500 locations around the country, the government is set to go into public private partnership  (PPP) whereby post offices can perform financial services, especially in the rural areas.

    He also said the PPP model would turn most post offices into skyscrapers that would generate income for the government.

    According to Shittu, governments is considering sourcing the Chief Executive of the organisation, Post Master General from outside the system through open advertisement.

    He said that was a better option to ensure that the required expertise is got for the new NIPOST.

    He also regrtteed non patronage of indigenous ICT companies which has resulted in 70 per cent of the personal computer market going to foreign manufacturers.

    He however assured that given an enabling environment which the ministry is set to provide, the sector can drive the national economy

     

  • N50b paid by MTN not part of fine – Minister

    N50b paid by MTN not part of fine – Minister

    The Federal government asked telecommunication service provider, MTN Nigeria to pay N50b for its violation of Subscriber Identification Module (SIM) card registration laws, the Minister of Communications said on Wednesday.

    MTN was fined N1.04 trillion by the Nigerian Communications Commission (NCC) for failing to register its subscribers in accordance with laid down rules and regulations.

    The downward review of the fine by 25 percent as well as payment of N50b by the telecommunication company later led to investigation of the issue by the House of Representatives.

    Adebayo Shittu told the House of Representatives that his ministry asked the telecommunication firm to pay N50b in respect of the fine.

    Shittu, however, said the money was not part of the fine.

    The minister stated these while making his presentation on the diversification of the Nigerian Economy on the Floor of the House on Wednesday.

    “MTN took the matter to court but later offered to settle it out of court. That was why the company was asked to pay N50b as a sign of commitment to the new deal,” he said.

    He added that negotiation for review of the fine has been stalled due to ongoing investigation of the matter by the House.

     

  • MTN excites new subscribers with StartPack

    MTN excites new subscribers with StartPack

    Telecommunication giant MTN Nigeria has introduced a special tariff plan for new subscribers which it calls MTN StartPack.

    The MTN StartPack is designed to welcome new customers with great and exciting voice and data offers. The offers are automatically activated as soon as a customer successfully registers a new MTN number.

    MTN Executive AminaOyagbola, said: “The introduction of MTN StartPack is in line with MTN’s commitment to giving more value to our customers from the very beginning. This is why new subscribers will immediately enjoy six times the value of any recharge, 10MB on every recharge of N200 and above as well as free data on the MTN Deal Zone. The new value proposition also aligns with MTN’s quest of deepening internet penetration in Nigeria. ”

     General Manager, Consumer Marketing, MTN Nigeria Richard Iweanoge, said the new data and voice service pack is designed to excite new subscribers on the network. “Our new MTN StartPack has been specially created to give new subscribers a unique experience both on MTN’s voice and data servicing. MTN as a company is passionate about providing world class services to our esteemed customers and positively impacting their lives. This is just one of the ways through which we do that,” he said.

    On how to enjoy the new offer, Iweanoge said new subscribers should purchase a new MTN SIM and register at authorized outlets. “They can then proceed to enjoy the service offering by recharging the line to get six times the value of the original recharge and make calls, send sms or browse within 48 hours of purchase to remain active on the network,” he said.

    Stresing that MTN SIM registration is free, Iweanoge also encouraged subscribers to always patronize authorised MTN outlets in order to ensure maximum security of their personal details and valid registration of their SIM cards.

  • Ericsson, MTN deploy LTE

    Ericsson, MTN deploy LTE

    Ericsson has deployed a new LTE network for MTN in the Greater Accra region of Ghana. The deployment will enable MTN to offer its 16 million subscribers high-quality mobile broadband experiences based on High Speed Packet Access (HSPA) and long term evolution (LTE) technologies.

    Under the agreement, Ericsson will install its multi-standard radio solution which supports GSM/EDGE, Wideband Code Division Multiple Access (WCDMA)/HSPA, and LTE. The solution supports cost-effective deployment, along with capacity and functionality evolution.

    Ericsson offers an advanced mixed-mode (2G/3G/LTE) solution that offers an efficient means for operators to migrate their networks to LTE. Ericsson’s solutions enable operators to support existing 2G and 3G traffic with current resources, thereby freeing up spectrum to provide high-speed LTE data services and positioning operators to capitalise on mobile data growth.

    According to the Sub-Saharan Africa appendix of the Ericsson Mobility Report, WCDMA/HSPA combined with LTE will account for almost 80 per cent of subscriptions in the region by the end of 2021. In addition, data usage will grow 15 times from current levels, with LTE subscriptions growing 28 times.

    WCDMA is a 3G wireless standard which utilises one 5MHz channel for both voice and data, initially offering data speeds up to 384kilobytes per second (Kbps).

    HSPA is an amalgamation of two mobile protocols, High Speed Downlink Packet Access (HSDPA) and High Speed Uplink Packet Access (HSUPA) that extend and improves the performance of existing 3G mobile telecommunication networks utilising the WCDMA protocols

    Speaking on the development, CEO, MTN Ghana, Ebenezer Twum Asante, said: “MTN Ghana is happy to roll out its LTE services. Our customers are looking for world-class data access that is capable of meeting all their unique connectivity requirements and we are excited at the opportunity to provide them this latest technology.”

    Country Manager, Ericsson Ghana, Ignacio Gelso, also said: “As a global LTE leader, we are excited by the opportunities for inclusion and empowerment that connectivity brings to Africa and Ghana. There is a growing recognition among operators of the need to deploy 4G/LTE to keep their mobile broadband offerings competitive. Ericsson’s technology leadership makes us a trusted transformation partner for operators exploring the possibilities of the Networked Society.”

     

     

    Ericsson is present today in all high traffic LTE markets including the US, Japan, and South Korea, and is ranked first for handling the most global LTE traffic.  In addition, forty percent of the world’s total mobile traffic is carried over Ericsson networks.  More than 250 LTE RAN and Evolved Packet Core networks have been delivered by Ericsson worldwide, of which 190 are live commercially

     

  • Deafening silence of Lawmakers over MTN fine

    Deafening silence of Lawmakers over MTN fine

    There comes a time when silence is not golden, when policy makers and decision making institutions deliberately and needlessly extend prompt decision on an issue of national importance or even refuse to proffer an amicable way forward in line with national interest.

    From the delay in assenting the 2016 budget, to the muting of the Social Media Bill and even the muting of the Gender and Equal Opportunity Bill, there have been several efforts by the Nigerian legislators to remain silent instead of  promptly and actively standing up to address them.

    Perhaps one of such glaring circumstances, is the MTN and NCC regulatory fine issue it is almost two months now since the House of representatives summoned the leadership of leading telecommunication provider MTN Nigeria, to explain its role and the circumstances surrounding its initial payment of N50b fine. But rather than instantly resolving the issue, it is unfortunate there just seem to be no head way. As it is, we are all stuck!

    It is interesting to note that the CBN and the five banks recently fined for some regulatory irregularities have quickly dispatched the matter even without so much ado. That the matter only became a ‘public knowledge’ from the reports is a demonstration of expediting actions in matter of critical national interest.

    While the legislators are backed by the law to investigate, what they have failed to do is to quickly and promptly conclude on the matter through its house committee to support on-going efforts towards an amicable solution.

    We must commend the efforts of the Attorney General of the Federation and the Minister of Communication both of who have shown desire to ensure a quick resolution but unfortunately as the Minister of Communication said in one of his chat, the legislators have to conclude their investigations before negotiations can continue.

    Many experts in law, economy, business and finance have expressed worries on the unnecessary delay of the legislators to come up with a decision especially as the president had earlier ordered a renegotiation of the 780 billion Naira fine imposed on the company. The experts have expressed in their several analysis that the best way to stimulate growth in the economy is to ensure that investments keep flowing into sectors that need them which in-turn  progressively lead to improved revenue for the government.

    It has been agreed that Nigeria’s best example of success in attracting and retaining foreign investment has happened in the telecoms sector and that experience in the past 15 years ought to encourage Nigeria to solicit more in sector even outside telecoms. The knowledge of the need for an economically stable Nigeria is behind the loud criticism of the silence of Nigerian legislators on this matter like many others, with many experts calling on the legislators to take prompt action now on the MTN and NCC matter. We wish Nigeria a successful digital switch over in 2017.

  • Africa charged to leverage growth potential of ICT

    Nigeria’s Minister of Communications, Barrister Adebayo Shittu, has revealed that the present administration is set to leverage the benefits of the digital revolution and the huge potential of ICT to achieve ‘a smart digital Nigeria’.

    The Minister made this known while addressing delegates at the opening ceremony of the 14th Innovation Africa Digital Summit 2016, a three-day event kicked off yesterday at the Transcorp Hilton Hotel Abuja.

    The summit themed: ‘Harnessing Africa’s Digital Growth’, is Africa’s leading ICT Business Summit. Over 500 senior executives across government, regulatory bodies, telecoms operators and major end users of ICT from all over Africa, Asia, the Middle East and Europe are attending the summit.

    Explaining the rationale behind the administration’s decision to unlock positive growth using digital platforms, Barrister Adebayo Shittu stated: “ICT has changed the course of history and added value to all that we do.”

    The Minister said that the Federal Government has developed a roadmap to be unveiled soon towards achieving exceptional growth through ICT.

    Speaking on the importance of the summit, Amina Oyagbola, MTN Executive pointed out that the IAD Summit presents another opportunity for Africa to deliberate on further steps to develop the ICT sector as an engine of growth and thereby improve its contribution to the GDPs of African countries.

    According to Oyagbola, “there continues to be increasing optimism and enthusiasm in international circles about Africa huge potential for growth and development. From education to financial inclusion, agriculture to solid minerals, e-government to mobile health, ICT is key to ensuring maximum impact across key elements involving people, processes and productivity. ICT can retool and up skill people in every sector, upgrade processes for greater operational efficiency, create jobs and enhance productivity for stronger growth while attracting further investment.”

    Delivering the goodwill message from the Presidency, Secretary to the Government of the Federation, Eng. Babachir Lawal said that the IAD 2016 summit heralds a new dawn in progress driven development through ICT as the Federal Government duly recognizes the role of ICT in fostering a viable economy.

    “We are proud to be part of the 2016 IAD summit because we believe in its potential to contribute to national and regional development” Lawal said.
    Other African countries represented at the event include Lesotho, Sierra Leone, Ghana, Ethiopia and Cameroun.