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Tag: MTN

  • NCC fines Glo, MTN N34m for number portability infraction

    NCC fines Glo, MTN N34m for number portability infraction

    The Nigeria Communications Commission (NCC) has fined MTN Nigeria and Globacom Ltd  N34 million for breach of the Mobile Number Portability business rules and regulations.

    The regulatory body made this known in its “2015 Q4 Compliance Monitoring and Enforcement Reports’’ obtained by the News Agency of Nigeria yesterday in Lagos.

    NCC said  Globacom was fined N22 million, while MTN was fined N12 million.

    In the “2015 Q3 Compliance Monitoring and Enforcement Reports’’, NCC resolved to monitor and sanction violations of MNP process time obligations and pledged “to address increasing cases of port request rejections’’.

    The commission said a series of compliance checks were carried out regarding timer violations by donor operators with respect to “validation and deactivation responses’’, which had timelines of two hours and one hour.

    According to the Q3 report, there is a timer deactivation violation by MTN, regarding a Corporate Port request of over 109 lines belonging to Nigerian Breweries Plc.

    “The company initiated a corporate port out request from MTN to Glo via lead Mobile Station International Subscriber Directory Number (MSISDN): 07036735494 on August 11, 2015 at 1.20 p.m. but was partially completed as at 11.22 am. on August 14, 2015.”

  • Fed Govt to open talks with MTN after receipt of N50b

    Fed Govt to open talks with MTN after receipt of N50b

    The Federal Government will open talks with MTN Nigeria over the N780 billion fines, imposed on the telecommunications giants after confirming receipt of the N50 billion part payment made by the firm.

     The Nigeria Communications Commission (NCC) imposed the over N1trillion fine cut to N780billion, for Subscriber Identity Module (SIM) card infraction.

    The government also yesterday confirmed that the firm has withdrawn the suit it filed before a Lagos Highr Court challenging the regulator’s action.

    According to the Federal Government, with the “down payment,” the coast is now clear for it to listen to further talks on the matter.

    Minister of Communications Technology Adebayo Shittu who confirmed the payment, said the development was in line with what the government asked the firm to do.

    A statement by the minister’s Senior Assistant (Media) Victor Oluwadare, explained that the receipt of the N50billion payment will allow the Federal Government to entertain further negotiation on the fine with MTN.

    “It is now confirmed that MTN has made a down payment of N50 billion and withdrawn the case against NCC pending negotiation on the settlement (of the outstanding N730billion).

  • Visafone: Court strikes out Etisalat’s suit against MTN

    The Federal High Court in Lagos on Thursday struck out a suit filed by Etisalat against MTN.

    The plaintiff challenged MTN’s use of the 800megahertz (MHZ) spectrum following its acquisition of Visafone.

    Etisalat said it considered the action necessary to prevent MTN’s use of the spectrum as it would entrench the defendant’s dominance in the data services market.

    The plaintiff said the use of the 800MHz spectrum to deploy broadband services ahead of its competitors, particularly those who prior to MTNs purchase of Visafone, held similar spectrum bands as MTN, would be to other telecos disadvantage.

    Justice Ibrahim Buba struck out the suit on the ground that the court lacks jurisdiction to entertain it.

    He held that the court cannot interfere with NCC’s regulatory duties.

  • MTN pays N50b after withdrawing suit against NCC

    MTN pays N50b after withdrawing suit against NCC

    MTN Nigeria has withdrawn its suit against the National Communications Commission (NCC) in respect of the N780 billion fine imposed on the company.

    The company said it had paid N50billion to the Federal Government as it continues negotiation outside the court.

    MTN’s Chief Executive Officer, Mr Ferdi Moolman, in a statement in Lagos said the withdrawal of the case followed renewed steps toward negotiation and settlement, and to create an atmosphere conducive for further negotiations.

    The NCC had imposed a N1.04-trillion fine on MTN Nigeria last October for its failure to disconnect 5.1 million improperly registered lines within the prescribed deadline.

    The MTN statement said: “MTN Nigeria today withdrew its case against the NCC at the Federal High Court, Lagos, in response to a request by the authorities.

    “This is a most encouraging development; it demonstrates a willingness and sincerity by both parties to work together toward a positive outcome.’’

    MTN Nigeria stated that the fine was adjusted by 25 per cent to N780 billion, an amount that was considered inimical to the survival of the business.

    Subsequently, the telecom company sought judicial determination as means of protecting its business.

    “We are hopeful at this stage; it is clear that we are collectively committed to work out a solution that is of mutual benefit to all parties.

    “Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT, particularly as a much- needed catalyst for socio-economic growth and development at this time,’’ Moolman added

    Communications Technology Minister Adebayo Shittu, said in Lagos three weeks ago that the payment of a substantial part of the N780 billion fine remained a sine qua non for any out-of-court settlement.

    The minister recalled that the ‘crime’ was committed the coming to power of President Muhammadu Buhari and how the MTN had written a letter admitting committing the ‘crime’ and pleading for leniency, with a pledge to turn a new leaf by becoming a law abiding corporate citizen.

    The minister added that “nobody wants MTN dead as a Nigerian company with lots of Nigerians as employees.” He expressed surprise that after the President had granted a reprieve,the company went ahead to institute legal action against its regulator, adding however that the Federal Government will obey whatever becomes the outcome of the legal process.

    Yesterday, Special Assistant on Media Affairs to the minister, Mr Victor Oluwadamilare, told The Nation that the government’s position on the matter had been made clear, but MTN went to Court for reasons best known to it.

    He said: “Government’s position on the matter is sacrosanct. MTN secured 25 per cent reduction in the fine imposed by the regulatory body. Suddenly, it proceeded to court to challenge the government. Now we are told they have withdrawn the case from the Court and paid N50 billion.

    “Well, I can tell you on behalf of the Minister of Communications and Technology that we are studying the situation. If it is confirmed that they have withdrawn the case from court and have paid the said amount, then the government will make its position known.”

  • FG to investigate MTN’s payment claim – Minister

    FG to investigate MTN’s payment claim – Minister

    The Minister of Communications, Adebayo Shittu, on Wednesday said the ministry would investigate claim by South African mobile telecommunication giant, MTN that it has paid 50 billion naira into government’s coffers towards a possible settlement of the dispute with the Nigerian Communications Commission (NCC).

    The minister also said the firm’s claim that it has withdrawn the matter from court is being investigated by government.

    The Special Assistant on Media Affairs to the Minister, Mr. Victor Oluwadamilare, told The Nation that government’s position on the matter has been made clear, but MTN went to court for reasons best known to it.

    He said: “Government’s position on the matter is sacrosant, MTN secured 25 percent reduction on the fine imposed by the regulatory body. Suddenly, it proceeded to court to challenge the government. Now we are told they have withdrawn the case from court and have paid 50 billion naira to government.

    “Well, I can tell you on behalf of the Minister of Communications and Technology that we are studying the situation. If it is confirmed that they have withdrawn the case from court and have paid the said amount, then the government would make its position known on the matter.”

     

  • MTN drops lawsuit against Nigeria, pays $250m

    South African telecommunications firm, MTN has withdrawn its lawsuit against Nigerian Communications Commission (NCC) over a $3.9 billion fine and paid $250 million towards a possible settlement.

    A judge in Lagos last month gave both parties until March 18 to reach a settlement, after MTN had asked the court to arbitrate over the dispute, saying the NCC had no legal grounds to order the fine, Reuters reported.

    MTN, which makes 37 percent of its sales in Nigeria, said it would withdraw its court challenge in an effort to reach an amicable settlement and make a “good faith payment” of $250 million towards a possible settlement.

    “This is a sign that the fine could be reduced much further. There is some sort of negotiation taking place and the parties are migrating towards a common ground,” Reuters quoted Dobek Pater, managing director of Africa Analysis, as saying on the matter.

    The original penalty was based on fining the company $1,000 for every unregistered SIM card in use.

     

  • South Africa’s MTN expects ‘reasonable’ Nigerian fine — Sources

    South Africa’s MTN expects ‘reasonable’ Nigerian fine — Sources

    South African telecoms firm MTN Group could end up paying a “reasonable” amount following talks with Nigerian officials over a disputed $3.9 billion fine for failing to disconnect unregistered SIM card users, two sources familiar with the matter said yesterday.

    A court in Lagos last month gave both parties until March 18 to reach a settlement, after MTN in December had asked the court to arbitrate over the dispute, saying the Nigerian Communications Commission had no legal grounds to order the fine.

    The telecoms firm was initially handed a $5.2 billion penalty in October, prompting weeks of lobbying that led to a 25 percent reduction by the NCC.

    At the time an NCC source said its decision was based on advice from Department of State Security (DSS) which suspected unregistered SIM cards were being used for criminal activity.

    It had originally asked MTN to disconnect between 10 and 18.6 million users but MTN told the regulator it had 5.2 million unregistered users on its network, the source said.

    The original amount was based on fining the company $1,000 for every unregistered SIM card in use.

    MTN has said the revised fine of $3.9 billion is still too high, equating to more than twice MTN’s annual average capital expenditure over the past five years.

    Sources said yesterday that talks were bearing fruit.

    “There’s growing understanding within the NCC that the fine should be commercially reasonable,” a source close to the matter said.

    Another source said a further reduction from $3.9 billion was a “possibility” because “the tone of the NCC is not combative any more.”

    MTN’s spokesman Chris Maroleng said his company, which makes 37 percent of its sales in Nigeria, expected the talks with the NCC to lead to an “amicable resolution.”

    MTN has hired former U.S. attorney general Eric Holder, who was one of President Barack Obama’s longest-serving cabinet members, to help with the matter.

    “There remains some uncertainty as to the final quantum (amount) of the Nigerian fine, should-an-out of court settlement be reached,” MTN said in trading statement that warned of a drop in full-year profits on Thursday.

    MTN’s regulatory and operational uncertainties in Nigeria sent shares in the company plummeting.

    By 1321 GMT, shares in the company had fallen 18.8 percent to 124.80 rand, on course for its biggest daily percentage decline in 18 years.

    The company said on Thursday its profit last year fell by at least 20 percent due to an underperformance in Nigeria, triggering a selling frenzy in its share price. MTN said the profit warning did not include the penalty.

    Nigeria has been trying to halt the widespread use of unregistered SIM cards amid worries they are being used for criminal activity, including by the Islamist group Boko Haram.

  • Nigerian, South African artistes challenge MTN on copyright

    Nigerian, South African artistes challenge MTN on copyright

    Nigerian Highlife music sensation, Flavour N’abania and his South African colleague, DJ Cleo have requested sales data from MTN, its subsidiary and content aggregator, Content Connect Africa (CCA), and Vodacom, suspecting that their copyright has been infringed upon, sources have said.

    Although the companies have denied any such infringements, pundits reason that their liability could run into billions in unpaid royalties and fines in South Africa alone.

    ‘It is not correct that MTN is liable for billions of rands in royalty payments’ said sales, marketing and distribution executive, Larry Annetts.

    According to City Press, if they can prove copyright violations, the SA Copyright Act provides for a first offence fine of up to R5 000, or a jail term. If it is a repeat offence, the act provides for a fine of up to R10 000 or a jail term, per infringement.

    Copyright expert Graeme Gilfillan, representing DJ Cleo’s company, Will of Steel Productions, and Flavour’s company, 2Nite Enter10ment, began sending out separate requests for data from MTN, Vodacom and CCA since mid-December.

    Annetts however maintained that “MTN is up to date with most royalty payments with Capasso and is in the process of settling the recent royalty invoice…for the current period, which amounts to less than R1million. MTN understands the importance and imperative of paying music royalties for music that it sells on its platforms. With regard to payment of mechanical royalties, we have…been trying to resolve [this] from as far back as 2012.”

    He added that “MTN has been dealing with alleged claims for Will of Steel Productions since 2012…Mr Gilfillan was invited to participate in this process; however, MTN had not received any document or response from him.”

    In the same vein, Vodacom has rejected any suggestion of criminal misconduct. “We have communicated with Mr Gilfillan on this issue on an ongoing basis. Vodacom informed Mr Gilfillan that it reports to CCA…in respect of his clients’ recordings. Mr Gilfillan needs to approach CCA,’ it stated, just as CCA is saying that, ‘Neither Will of Steel nor 2Nite Enter10ment has shown any proof that they each own the songs and publishing underlying the sound recordings.”

    According to CCA’s Antos Stella, “CCA denies that it has infringed the copyright of Will of Steel and 2-Nite-Enter-10-ment’s copyright in any of their songs and publishing. We informed Gilfillan that CCA sends recording royalty statements to his clients and that his clients are in possession of these statements, We informed him that mechanical royalties are reflected on statements sent to his clients… CCA can prove that it receives invoices from Will of Steel and 2Nite Enter10ment for recording royalties and that it pays them.”

  • CPC orders MTN to pay N1.85m to promo winner

    The Consumer Protection Council (CPC) has directed mobile telecommunication giant, MTN Communications Limited to pay N1,850,000 to one of the winners of its Ultimate Wonder Promo for lack of due diligence.

    A statement endorsed by Mr Abiodun Obimuyiwa of the CPC explained that the order came on the heels of a complaint brought by Mr. Omeje Chukwuma Fidelis against the teleco that he had been underpaid after he was declared winner of N2 million in the said sales promotion  held in 2012.

    According to Omeje, he participated in the promo and was called through MTN line 180 on October 10, 2012 that he had won N2million in the Ultimate Wonder Promo and that on October 12 of the same year, he got a text message informing him of the presentation ceremony fixed for October 19 at the Nicon Luxury Hotel, Abuja.

    The complainant said during the ceremony, he was presented with a dummy cheque of N2million with his name on it, interviewed and paraded before the media and the world as a winner of the said amount.

    He recounted further that he was stunned to receive another call from MTN line 180 on November 2, 2012 that his winning was N150,000 and was thereafter given a Verve ATM card for that amount.

  • MTN must pay fine, says govt

    MTN must pay fine, says govt

    Mobile giant MTN must pay substantial part of the N780billion fine imposed on it for subscriber identity module (SIM)registration guideline infractions before any out of court settlement could honoured, the Federal Government said yesterday.

    The Minister of Communications and Technology, Mr. Adebayo Shittu, said the telco violated extant laws for which it accepted responsibility and wrote a letter of apology, promising to be a responsible corporate citizen.

    The infractions were committed under the Dr. Goodluck Jonathan administration, which, according to Shittu, looked the other way. It took the courage of the government to apply the law, he said.

    MTN begged for a revision of the sanction, “which Mr President graciously acceded to”, but the company turned around to say it had no money to pay.

    The minister said the government replied, asking MTN to write a letter stating why it will go down after paying the fine and attaching a statement of its account so that the government will realise the dangers the payment will constitute to its financial health.

    Shittu said he received a call from the telco informing him that it was going to court.

    He said since the matter is now before the court, the government will wait for the court’s decision.

    According to Shittu, nobody wants MTN dead. The company violated the laws for which there are consequences, he said.

    MTN was sactioned about $5.1billion or N1.7trillion for fraudulently keeping some 5.2million preregistered SIMs on its network – a development analysts said amounted to sabotage in view of the security challenges facing the country.

    Also yesterday, the MTN confirmed that it has been served with court summons based on a lawsuit filed by Emerging Markets Telecommunications Services Limited (Etisalat Nigeria) over the acquisition of Visafone.

    In a statement, its Executive Amina Oyagbola, said Etisalat has filed a lawsuit against MTN and Visafone and we have filed appropriate processes before the court for necessary determination. “The acquisition of Visafone was concluded after obtaining all necessary statutory and regulatory approvals. I am not able to comment further as the matter is sub judice,”she said.

    Oyagbola added that the acquisition allows Visafone and MTN to leverage resources for service enhancement whilst also deepening the growth and roll-out of broadband services across the country in support of the National Broadband Plan for the benefit of Nigerians. She also made reference to media reports credited to regulatory authorities that the acquisition would help sustain the continuity of CDMA services in Nigeria in addition to being beneficial to operators and subscribers.