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Tag: NCC

  • 2.6GHz auction: Reps to investigate NCC

    2.6GHz auction: Reps to investigate NCC

    The proposed auctioning of 2.6 gigahertz (GHz) spectrum by the Nigeria Communications Commission (NCC) is to be investigated by the House of Representatives.

    The lawmakers opined that the sale of the spectrum would lead to a huge job loss in the telecommunications sector.

    In a motion, Diri Douye (PDP, Bayelsa) said the telecommunication sector regulatory body erred by considering the bid of a mobile telecommunications service provider, MTN Nigeria for the sale of the spectrum.

    He said the consideration of MTN’s bid by NCC negates fair play as the fundamental right of other sector players has been disregarded, pointing out that the possible negative effect of such sale on other sector investors was also not taken into consideration.

    He alleged that the regulator failed to take cognisance of current spectrum operators and their interest, it will result in the loss of billions of naira to investors.

    The lawmaker argued further that  the NCC may not have considered the long term effect of job loss, adding that employment generation and protection of business is a key component of the legislative agenda of the 8th Assembly.

    “It will also jeopardise the interest of banks and result in the loss of thousands of jobs,” he warned.

    While he noted that the auctioning may be necessary to meet with the digital migration compliance, Duoye said there was also need to build confidence in all the  stakeholders.

    Committee on Telecommunications was mandated to investigate and resolve all pending issues connected with proposed spectrum auction.

  • NCC seeks Reps’ cooperation on telecom regulation

    NCC seeks Reps’ cooperation on telecom regulation

    The Nigerian Communications Commission (NCC) yesterday sought the cooperation and understanding of members of the House of Representatives especially on the regulatory functions of the commission.

    The Executive Vice Chairman of NCC, Prof Umar Danbatta spoke during an oversight visit of members of the House Committee on Communications to the head Office of the Commission in Abuja.

    The House is still investigating the N1.04trillion fine imposed on MTN over infractions on subscriber identity module (SIM) card registration. Danbatta in a statement endorsed by his Media Assistant, Yakubu Musa stressed the need for striking a balance in satisfying diverse stakeholders in the industry.

  • NCC to telcos: implement corporate governance code or risk sanction

    NCC to telcos: implement corporate governance code or risk sanction

    The regulator of the telecoms sector, the Nigerian Communications Commission (NCC) said after giving the telcos more than two years to voluntarily embrace the Corporate Governance Code for the industry, the era of voluntary compliance will now give way to mandatory enforcement.

    Speaking yesterday at the Lagos Sheraton Hotel & Towers, venue of what the regulator tagged: Corporate governance forum: Review of the industry code, NCC’s Executive Vice Chairman/CEO, Prof GarbaDambatta, said the Code was largely declaratory in nature and implementation was initially voluntary across the industry thus leading to violations.

    He said enforcement of regulatory stipulation is a last resort, warning that once “you are operating in a market, the rule of engagement must be respected”.

    He said the liberalisation of the telecoms industry opened investment opportunities for both local and foreign companies, contributing significantly to the country’s Gross Domestic Product (GDP).

    He said to illustrate this contribution, in contrast to the economy as a whole which contracted to -0.36 per cent in the first quarter of this year, the telecoms sector contributed, in progressive and real terms, about 8.83 per cent to the GDP in the same period, adding that this represents an increase of 0.5 per cent, relative to the growth in the last quarter of last year.

    “Similarly, apart from attracting Foreign Direct Investments (FDIs) in excess of $38 billion and reflating the economy, the telecoms value chain (formal and informal) continues to create a significant number of job opportunities for our teeming youths. Other positive spin-offs include increasing local content and rising income per capita/per head for employees in the sector,” he said.

    According to Dambatta, in recognition of the need to sustain the phenomenal success recorded in the industry and replicate the lessons learnt in other sectors that had gone through the “Boom and Bust” cycle, the Commission in 2012 set up a multi-stakeholder Corporate Governance Working Group (CGWG) with membership drawn from across the Nigerian telecoms industry, the Commission and Corporate Governance practitioners. The mandate of the Group, he said, was to determine the industry’s corporate governance needs and the best approach to be adopted in addressing them, adding that the CGWG developed the Code of Corporate Governance for the telecoms industry, which was published in 2014.

    Meanwhile, speaking yesterday on the sideline of the forum, Communications Technology Minister, Adebayo Shittu insisted that reducing the fine imposed on MTN over regulatory infractions was legal and in the interest of the country.

  • MTN, NCC: At the end of the tunnel…

    MTN, NCC: At the end of the tunnel…

    When the Federal Communications Commission announced its intent to fine multinational telecommunication giant AT&T $100 for violating a provision of the agency’s Net neutrality regulations in 2015, many subscribers threw their weight behind the move describing it as a people-friendly action.

    However, observers from around the world expressed eagerness to see the end game of that huge sanction especially as the FCC’s fine was the largest the agency has ever proposed at the time.

    Similarly, Nigeria became the focus of Africa and indeed the world when a gargantuan fine of N780 billion was imposed on MTN Nigeria by the Nigerian Communication Commission (NCC), leaving the company in an uncertain state of what seemed to be its worst regulatory encounter in Nigeria. Like the fine on AT&T, local and international observers followed every related detail through the varying phases, the twists and turns surrounding the MTN/NCC regulatory debacle.

    It will be recalled that for about a period of six months intense consultations, negotiations, and renegotiations were ongoing. The historic visit made by South African President Jacob Zuma, MTN’s acquisition of a foreign lawyer, the withdrawal of the case from court and even the N50billion good faith payment were all significant scenes in the protracted debacle.

    None of these attempts seemed to proffer an amicable solution. As time wore on many interested and sometimes active observers eventually resigned to enjoy the back and forth concluding that the players neither understood or appreciated the long-term effect of the prolonged process of reacing an amicable settlement, thus we all waited.

    When the NCC announced its decision to review the fine to N300billion, the news did more than provide an amicable solution, but also created an all round way forward for virtually all involved. Indeed, it marked a fruitful end of that enduring regulatory crisis.

    Commenting on the decision the Executive Vice Chairman (EVC) of the NCC, Professor Umar Danbatta said: “Our decision was taken based on professionalism and global best practices and in line with the NCC values to be fair, firm and forthright”.

    According to the EVC, the Commission has always carried industry and stakeholders along in taking transparent regulatory actions, adding that at no point will the regulator do anything to jeopardise the business health of the entire sector.

    Although not many would have predicted a conclusion this orderly, following earlier failed attempts in a development that saw  top executive officers Sifiso Dabengwa, the Group CEO; Mike Ikpoki, CEO of MTN Nigeria; and Akinwale Goodluck, Director, Regulatory and Corporate Affairs MTN Nigeria take a bow, despite this  the disposition of Nigerian lawmakers did little to convince observers that the debacle was headed for a conclusion this calm.

    The reduction meant more than just a passive compromise to an obvious entanglement, it carried implications that cushioned the effect of the protracted debacle for those involved.  Apart from the reduction, the flexible payment plan also gives MTN enough payment span and breathing space, as it provides that the balance of N280 billion would be made in six tranches within a period of three years.

    Interestingly and in spite of the odd, significant strides were made by the company within the period under consideration some of which includes the acquisition of the Visafone CDMA technology platform, securing a license to stream TV contents and the launch of digital TV channels, and  being granted the operating licence to continue its extensive provision of service as an opportunity to demonstrate the company’s commitment to sustaining a beneficial relationship and increase it contribution to the development of the Nation’s economy through ICT.

    Analysts believe that the most fruitful aspect of the agreement between MTN and NCC is the news that MTN Nigeria would be listed on the Nigeria Stock Exchange (NSE) as soon as it is commercially and legally possible to do so. Nigerians are already anticipating it, with many analysts predicting that the listing will help balance the Nigerian bourse, giving investors’ options for sector rotation while reducing volatility associated with monotony of few names in the market.

    The statement of the MTN Group Executive Chairman, Phutuma Nhleko is perhaps the truest reflection of the implication of the reduced fine  “this is the best outcome for the company, its stakeholders, the Federal Government and the Nigerian people and the relationship between MTN”, the Federal Government and the NCC has been restored and strengthened,” Nhleko Said.

  • N1.04trn fine: Reps reject MTN’s N330bn offer

    N1.04trn fine: Reps reject MTN’s N330bn offer

    The House of Representatives Friday rejected the offer of the service provider MTN to pay N330bn instead of the N1.04 trillion it was fined by the Federal Government.

    In a briefing on the issue Friday, the chairman of the House of Representatives Committee on Communications, Hon. Saheed Fijabi said he wondered why the sudden shift in the position of the NCC offer the issue of MTN fine.

    A March 1, 2016 memo from the Nigerian Communications Commissions, and in possession of our correspondent reads: ” The proposal to pay the sum of N300 billion as against the N1.04 trillion (and subsequently reduced to N700 billion by the Federal Government of Nigeria “FGN”) is not supported by any verifiable justification.

    “When considered vis–a – vis the quantum of fine, the present sum is a far cry and there is no verifiable basis for arriving at the new figure.”

    The lawmaker said the offer of $1.7billion (or N330 billion) by MTN, instead of the total fine of $3.9 billion (N1.04 trillion fine by NCC for violation of SIM card registration laws was unacceptable.

    According to him the Minister of Communications, Mr. Adebayo Shittu, has been summoned by the committee to explain the new development on Monday.

    The committee chair noted that it was wrong to accept a reduction while the House was investigating the ongoing negotiations between the Federal Government and MTN on the fine.

    He said:  “It came to us as a surprise to hear that MTN is paying N300bn. How can they be paying that amount when the minister told us that everything was stalled pending the outcome of our investigation?

    “As a House, we have opposed the reduction of the fine because there is no provision in the NCC’s Act that the fine can be reduced. In fact, section 21 of the Act stipulates that even the CEO of a defaulting firm can be made to pay additional fine of over N200, 000 on each of the lines.”

    The lawmaker said ordinarily, MTN’s total fine “should be doubled to about N3 trillion and not even the N1.4 trillion they were asked to pay.”

  • ‎ 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.

  • Telecoms generates N1.4tr in Q1, says NCC

    Telecoms generates N1.4tr in Q1, says NCC

    • 2.6GHz spectrum auction for review

    The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Danbatta, has lauded the performance of the nation’s telecommunications industry in the first quarter (Q1) of this year, saying it has contributed over N1.4trillion to the economy.

    He expressed optimism that the performance would improve as government policies take firm roots in the subsequent quarters of the year.

    Speaking while receiving a consortium of international investors led by UBS South Africa, Danbatta also said the NCC would soon meet with operators over the recent auction of 2.6 gigahertz (GHz) spectrum, for which only MTN submitted bid for six out of the 14 available slots placed offer.

    “I think we are happy with the level of compliance to regulatory stipulations in general, minus the MTN incident, which cast some sort of shadow in our regulatory derive to ensure sustainability and stability of the industry.

    “I am happy, we are putting that one behind us, and this is attested to by recent statistics by the National Bureau of Statistics (NBS) that the industry recorded a growth of 0.5 per cent to GDP in comparison to the same period last year.

    “In monetary terms this is going to translate to over N1.4 trillion, only in the first quarter of this year.

    “While other sectors of the economy is recording negative growth, the telecom industry has been recording positive growth and I think it is poised to grow even further in the subsequent quarters of the year,” Prof Danbatta was quoted to have said in a statement endorsed by his  SA Media,  Yakubu Musa

    Fielding questions from reporters on the 2.6.GHz spectrums auction, the EVC said: “We are doing a post mortem.  And we have not yet met with the operators to find out why they did not bid, except one operator.

    “The intention is to be able to know their reasons, and to know in what way the regulator can come in to relax some of the conditions in the process, if this relaxation can lead to more operators going for the remaining eight slots.

    “I am sure the commission will be disposed to looking at the reasons that prevented other operators from coming forward to bid, except only one.”

    He said the Commission incorporates elements of flexibility in its dealing with operators in order to continue to sustain the growth in the sector, which he said, “has the potential to provide an alternative to oil and gas”.

  • Who will help the NCC?

    Who will help the NCC?

    Your subscription to …. monthly has been renewed successfully and 150.00 deducted from your account. Your service will be renewed on 2016-05-31. To cancel, text NO TGM to 4900. Thank you!”

    That was one of the frequent and obtrusive SMS that delivered to my phone. Was that a problem? Yes. The problem was that I never subscribed to any ‘Monthly’ news alert and the bigger problem was that N150 was deducted from my voice call balance.

    At N150 per week, I was going to be losing N7, 800.00 just for this rogue service each year. If I multiply that by 10 out of the more than 37 other short codes that send me unsolicited offers every other 15 minutes, then I stand to lose anything in the vicinity of N78,000 each year and that is minus the caller tunes that can be accidentally subscribed to.

    Following the direction given, I sent ‘NO TGM to 4900’ and the response I got was “you are not a subscriber of requested SMS Alert Service. To Know About More Services, Please Type HELP and send it to 3307*.” Yet, my N150 remained deducted.

    Contacting the network provider’s customer care via the online chat platform was a lesson in time wasting. The lady at the other end of the chat maintained or feigned that sense of helplessness throughout the duration of the exchange. I simply terminated the chat and resolved to never use that line again since I have been similarly debited for a caller tune I didn’t order as well as countless other deductions that I didn’t know of until I notice an unusual speed at which my remaining airtime balance is depleted.

    I find it difficult to blame the network provider for this theft, instead I blame the Nigerian Communications Commission, NCC, which has the power and regulatory wherewithal to protect me from this criminality. More than the N150 that was extorted from  me, I also hold the NCC responsible for every single kobo that I lost to bad quality phone calls that I was charged for. If NCC did its work of enforcing standard and quality, these unwholesome and sharp practises by the telecoms would not be happening.

    My hope that a recent consultative forum organised by the NCC to discuss its draft regulatory framework on Value Added Service (VAS – which forms part of those robo calls and marketing SMS) in Lagos would bring an end to my troubles was dashed.

    It was immediately clear to me that the NCC has little muscle to call the shots in the face of the big telcos. The network providers more or less shoved its draft regulatory framework back in its face even though the media reports that followed attempted some damage control.

    I don’t know what compromise rendered the NCC into such a toothless bulldog or impotence, but to the extent that my phone line is serviced with my hard earned money, I have my demands for our dear regulator.

    There is a reason why regulatory systems exist worldwide and we cannot be an exception in Nigeria. The NCC cannot come up with a draft framework that is meant to protect Nigerian consumers of telecom services and then quickly back away because the network operators are not comfortable or agreeable to it. If they can get away with this, how soon before they would unilaterally decide to impose other outrageous tariffs regimes on us?

    The concept contained in the draft framework hinted at taking away the value added service component away from the network operators and vesting same functions to other segments of the sector like developers, hosting companies and aggregators. Since this concept is said to be in my interest as a subscriber, then the NCC has no business compromising my interest the way it is doing.

    If I understand correctly, an aggregator would have been able to evaluate, screen and vet a content before sending to me only if I have indicated interest in receiving such by signing up for it.

    The freedom from being bombarded with unsubscribed, unwarranted and unwanted messages and the like is something that the NCC and its partners – as the network operators have become – must not attempt to take away from me.

    I further gathered that the framework would have made it possible for me to see the phone number of the organisation or person that is spamming my phone so that I can call them back to deliver my own version of ‘cease and desist’ order. Since this will firmly put me in charge of what content gets sent to my phone, I want this guideline approved like right away.

    These changes are not too much to ask even though I must concede that it would be too much to ask if the NCC is an enforcer for the network operators instead of working for Nigerians.

    This piece is therefore a wakeup call to other Nigerians to demand that the NCC pushes through the necessary policy framework to make sure that the exploitation of subscribers under any guise is stopped forthwith.

     

    • Dr. Kolawole, a university teacher, writes from Keffi, Nasarawa State.
  • Internet users down to 92m, says NCC

    Internet users down to 92m, says NCC

    The Nigerian Communications Commission (NCC) yesterday said  internet users on telco’s networks had reduced further to 92,409,962, as at March this year.

    According to its monthly Internet Subscriber Data, internet users on both the Global System for Mobile communications (GSM), and Code Division Multiple Access (CDMA) networks slumped by 1,340,668.

    It added that 93,750,630 subscribers surfed the internet in February while only 92,409,962 did in March.

    Out of the 92,409,962 internet users in March, 92,285,052 were on GSM networks, while 124,910 users were on CDMA.

    Of the 92,285,052 internet users on the GSM networks during the month under review, the data showed that MTN had 33,356,595 customers on its network.

    It stated that MTN suffered a decrease of 2,247,775 internet subscribers in March, after it recorded 35,604,370 users in the month of February.

    According to the data, Globacom had 26,530,420 customers in March, showing a reduction of 845,583 from its February’s record of 25,684,837.

    It said, however, that the Airtel recorded a rise of users with 17,155,181 internet users in the month of March, as against 17,079,646 customers in February.

    “The records, therefore, showed that the Airtel users increased by 75,535 in the month of March,’’ the data added.

    The data also showed that Etisalat had 15,242,856 internet users in March, as against the 15,231,652 in February, recording an increase of 11,204 ursers in the month under review.

    It also showed that the CDMA operators (Multi-Links and Visafone), had a joint total of 124,910 internet users on their networks in March.

    It showed that the only surviving two CDMA networks in the country experienced a decrease of 25,215 internet subscribers in the month under review, from the 150,125 users they recorded in January.

    “Visafone had 124,768 customers surfing the internet in March, showing a reduction of 25,185 users from the February record of 149,953.

    “Multi-Links had 142 internet users in the month of March, showing a reduction of 30 customers from the February record of 172 users,” the data showed.

    The document stressed the need for more Nigerians to embrace the internet, to speed up the country’s progress towards achieving 30 per cent broadband penetration by 2018.

  • NCC’s proposed spectrum licensing pricing high, say telcos

    NCC’s proposed spectrum licensing pricing high, say telcos

    Telcos have said the pricing for the proposed licensing of spectrum in the new 38 gigahertz (GHz) and 42 GHz spectrum bands by the Nigerian Communications (NCC) is too high and does not take into account the realities in the country.

    They said the countries the pricing was benchmarked against were all matured telecoms markets, adding that the indexes do not speak to current market situation in the country.

    Speaking yesterday during the stakeholders consultative forum organised by the NCC on licensing of 38GHz, 42GHz and replanning of 23GHz spectrum at Lagos Sheraton Hotel and Towers, an official of Airtel, Luckky Ubani said the NCC  should take a second look at the pricing model to reflect what is happening in the country.

    But the NCC said it is not re-inventing the wheel, adding that its pricing was arrived at after evaluating what is happening in other jurisdictions.

    Its Deputy Director, Spectrum Administration Department, O. A. Yusuf said Nigeria has a huge population, stressing that the Commission is not opposed to any proposal on lowering the price for the spectrum. He said the Commission arrived at the pricing after a careful study of the pricing models in countries such as United States (U.S), United Kingdom, South Africa, Netherlands and Canada, arguing that the pricing was neither too low nor too high as it was in the medium level.

    Stakeholders agreed that written submissions be made to the NCC in four weeks time after which the proposal shall be deemed to have been approved by all.

    Speaking on the occasion, NCC CEO, Prof Umar Dambatta said the forum was organised because of the Commission’s believe that its actions must be guided by decisions that take cognisance of the inputs from the stakeholders.