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.
