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Tag: Nigerian Communications Commission (NCC)

  • $1.2b Etisalat loan: CBN, NCC intervene to save jobs, asset stripping

    $1.2b Etisalat loan: CBN, NCC intervene to save jobs, asset stripping

    The Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) Friday intervened in the $1.2 billion controversial syndicated loan owed by Etisalat Nigeria to a consortium of 13 local banks.

    The regulators’ intervention was to save jobs of over 4,000 workers employed by Etisatat and prevent asset stripping.

    Confirming the intervention of the two regulators in the loan dispute, the CBN Spokesman, Isaac Okorafor said: “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself.

    He further explained that the CBN and NCC, sensing that banks might go ahead in the usual way and downsize the company’s over 4,000 staff, reached an agreement to intervene and implore the consortium of banks to reassess its position in dealing with Etisalat.

    Okorafor described some media reports insinuating handwriting by CBN on the issue as “the height of mischief and insensitivity” explaining that the collaborative move by the regulators was aimed at preventing job losses and asset stripping and to ensure that Etisalat remains in business and is able to pay back the loans.

    According to him, the CBN and the NCC, in the coming days, will meet with the syndicate of banks and the IHS Towers, the tower managers and the equipment suppliers, in order to achieve what he termed “a win-win outcome” for all stakeholders.

    It will be recalled that Etisalat has been embroiled with a consortium of 13 Nigerian Banks that gave it a facility of about US$1.2 billion, on which the company has been unable to meet its repayment obligations in line with agreed terms of the facility.

    Given the inability of Etisalat to come to an acceptable agreement with the banks, the largest shareholder in the company, Dubai-based Mubadala Development Company of the United Arab Emirates, has now pulled out of the company as well as the ongoing negotiations, leaving only their local partners, led by Hakeem Belo-Osagie, to carry the burden.

    It was based on the attempt of the banks to take over the company that the financial and telecommunications regulators have moved in to intervene and forestall down-sizing and asset stripping.

  • $1.2bn loan: Banks deny Etisalat takeover

    $1.2bn loan: Banks deny Etisalat takeover

    Consortium of 13 banks involved in Etisalat Nigeria loan on Thursday refuted reports that they have taken over the operations of the company.

    A management source close to the banks who pleaded anonymity told the News Agency of Nigeria (NAN) in Lagos that there was no truth in the report making the round.

    The source said that the banks major interest was the loan repayment borrowed by the company and not takeover.

    “We are not telecommunication companies, all we want is our money,” he said.

    The source said that the company must pay back the loans in order not to jeopardise the economy, jobs, payment of dividends and depositors funds.

    He stated that it was not only the banks that would suffer but billions of Nigerians, even the vendors and distributors doing business with the company.

    “We did not take over Etisalat as being insinuated, if we have taken over, it has to be registered with the CAC.

    “They are still doing their business, they just want to weep up sentiment at the United Arab Emirates (UAE),” the source added.

    He added that the company had about 20 million subscribers, adding that any interruption would affect many businesses, especially SMES.

    According to the source, the affected Nigerian banks are owed about 570 million dollars out of the 1.2 billion dollars syndicated loan with the balance being owed vendors and distributors, among others.

    The source said that Etisalat wanted to pay only 10 per cent of the loan borrowed and requested that others should be written off as non-performing loan.

    He said that Etisalat wanted the consortium of banks to pay 50 million dollars out of 570 million dollars being owed, which the banks rejected.

    The source added that the banks practically reduced the debt to between 20 per cent and 30 per cent at a discounted interest rate of six per cent below the market rate which was rejected by Etisalat.

    “All we are requesting is for the Federal Government to wade into the issue and carry out due diligence on what the loan was used for.

    “A foreign company cannot come and ride us in Nigeria, if this issue is not handled carefully, others will do the same thing,” the source said.

    The source said that the company was avoiding negotiations which made the affected banks to fly to London earlier in the year to have a discussion with a company with its office in Nigeria.

    He said that the company was advised earlier before naira devaluation to convert the foreign loans to local currency due to fall in oil price at the global market, which it also rejected.

    UAE’s Etisalat had on June 20, said that it had been instructed to transfer its 45 per cent stake in Etisalat Nigeria to a loan trustee.

    Etisalat said it had been notified to transfer its stake by June 23. It said the stake had a carrying value of zero on its books.

    In the last few months, Etisalat Nigeria has been in talks with Nigerian banks to restructure a 1.2 billion dollars loan after missing repayments.

    The loan is a seven-year facility agreed with 13 banks in 2013 to refinance a 650 million dollars loan and fund expansion of the telco’s network.

    Although the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) stepped into the fray to prevent a takeover by the banks, those discussions failed to produce an agreement on restructuring the debt.

    NAN

  • Etisalat Takeover: NCC assures subscribers of network’s integrity

    Etisalat Takeover: NCC assures subscribers of network’s integrity

    Amid the move to takeover of Etisalat by a consortium of banks, the Nigerian Communications Commission (NCC) has assured subscribers that the network’s integrity would not compromised.

    The Director, Public Affairs of NCC, Mr Tony Ojobo, said in a statement on Wednesday in Lagos that the commission’s attention had been drawn to the planned takeover by the consortium of banks.

    Ojobo said that the regulatory body was aware of the indebtedness of Etisalat to the consortium.

    According to him, the NCC in conjunction with the Central Bank of Nigeria (CBN), has mediated by holding several meetings with the banks, Etisalat and other stakeholders to find a solution.

    “Regrettably, these meetings did not yield the desired results.

    “The NCC wishes to reassure about 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator.

    “The commission has taken proactive steps to cushion the impact of the takeover; this is without prejudice to the ongoing effort between Etisalat and the banks toward a negotiated settlement.

    “NCC wishes to reassure all stakeholders in the telecommunications sector, in particular the subscribers on the Etisalat network, that it will ensure that the integrity of the network is not compromised.’’

    The statement said the commission had drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38: Sub-sections 1 and 2.

    “Sub-section 1 says: the grant of a license shall be personal to the licensee.

    “The license shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the commission has been granted;

    “Sub-section 2 says: A licensee shall at all times comply by the terms and condition of the licence and the provision of this act and its subsidiary legislation,’’ it said.

    The director said that while the banks and Etisalat were working at resolving the issues, the commission assured that subscribers would continue to enjoy the services provided by the telecommunications company.

    In March, a consortium of 13 banks, both foreign and Nigerian, had wanted to take over the operations of Etisalat over a loan facility totalling 1.2 billion dollars, obtained in 2015.

    The banks said their attempt to recover the loan was due to the pressure from the Asset Management Company of Nigeria (AMCON), demanding immediate cut down on the rate of non-performing loans.

    The NCC and CBN waded into the matter to ensure an amicable resolution of the issue.

    However, after three months of fruitless deliberations, the consortium of banks is finally taking over the telecommunications company.

  • Access Bank, others may take over Etisalat 

    Access Bank, others may take over Etisalat 

    Following the collapse of talks between Etisalat Nigeria and a consortium of local lenders over a $1.72 billion (about N541.8 billion) debt, the lenders may take over the telco as soon as the legal requirements are met.

    The eventual take-over is as a result of the futile effort by Emerging Markets Telecommunications Services (EMTS), promoted by-one time Chairman, United Bank for Africa, Hakeem Bello-Osagie, to reach agreement with the banks on the debt restructuring plan.

    However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 per cent of the telco’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

    Etisalat Group, the parent company of Etisalat Nigeria, gave indication to this Tuesday in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate (UAE).

    But Etisalat Nigeria Vice President, Regulatory & Corporate Affairs, Ibrahim Dikko said discussions are still ongoing. In a statement, he said: “Discussions are on-going regarding other issues such as the trading name during this transition phase. Operations and services to our subscribers remain normal and will in no way be affected as we continue to deliver quality services to our subscribers. We will continue to tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our nine years of operations.”

    The Nigerian Communications Commission (NCC) which, alongside the Central Bank of Nigeria (CBN) brokered truce between the telco and its lenders warned that the provisions of the Nigeria Communications Act must be followed stricto senso.

    Its Director, Public Affairs, Tony Ojobo, while assuring the over 21 million customers of the telco that the regulator will do its best to ensure seamless service delivery, warned that the take over of the telco must follow the letters of the law.

    Ojobo said: “In view of the recent development, NCC wishes to reassure all stakeholders in the telecoms sector in particular the subscribers on the Etisalat network that the Commission will ensure that the integrity of Etisalat network is not compromised.

    “Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38:

    “Sub section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;

    “Sub section 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.”

    A letter dated June 2017, with No. Ho/GCFO/152/85 endorsed by Etisalat Group Chief Financial Officer, Serkan Okandan, lamented that efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

    “Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, ‘Etisalat Group’ would like to inform you that EMTS (‘the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45 per cent and 25 per cent ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (EMTS lenders).

    “Subsequently, discussions between EMTS and the EMTS lenders did not produce an agreement on a debt restructuring plan.

    “Accordingly, the company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100 per cent of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

    “Subsequently the EMTS lenders extend the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

    The telco has been under pressure since 2016, following the demand notice for the recovery of the loan facility it obtained from a consortium of banks in 2015.

    The loan, which involved a foreign-backed guaranty bond, was for the telco to finance a major network rehabilitation and expansion of its operational base in the country.

    Unable to meet its debt servicing obligations agreed last year, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

    But, the intervention of the Nigerian Communications Commission (NCC) and its financial sector counterpart, the Central Bank of Nigeria (CBN) succeeded in persuading the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

  • NCC to license five infrastructure coys in July, says Danbatta

    NCC to license five infrastructure coys in July, says Danbatta

    The Nigerian Communications Commission (NCC) said on Sunday it would license the remaining five Infrastructure Companies (InfraCos) awaiting permit by July.

    Prof. Umar Danbatta, Executive Vice Chairman, NCC, made this known to newsmen at the Tell Communications Ltd. Awards, 2016, held in Lagos.

    The permit allows for the deployment of metropolitan fibre-optic infrastructure and associated transmission equipment on an open access, non-discriminatory and price-regulated basis.

    As outlined by the regulator’s ‘Open Access Next Generation Fibre Optics Broadband Network’ paper, which was published late last year, the InfraCos will be responsible for providing a national broadband network to service providers.

    Danbatta said about 60 companies had applied for the licensing of the remaining zones for InfraCos licenses.

    “This is a massive number and we are about to complete the processes of the licensing of the remaining five InfraCos very soon.

    “And I am talking about July. We will come out with the information about the successful bidders.

    “And those who are successful will be offered the licenses in consistence with the conditions of the regulatory framework of the open-access model that is driving the deployment of broadband infrastructure in the country.’’

    He said InfraCo licenses had been offered to two legal entities: MainOne for Lagos zone and IConnect, a subsidiary of IHS, for the North-Central zone.

    According to him, the regulatory body had been monitoring the progress made so far by the licensed two InfraCos.

    “We are quite happy about the miles so far achieved in the deployment of fibre networks in the Lagos zone.

    “For the North-Central zone, we are not happy and action is being taken to ensure a remedial measure is put in place, in order to speed up deployment in the area,” he said.

    Danbatta said that the licensing of the five companies was the second phase for the deployment of fibre optic infrastructure broadband network.

    He said the InfraCos to be licensed would be for the North-East, North-West, South-South, South-East and South-West zones of the country.

    The executive vice chairman said that the InfraCos, according to the Open Access Model adopted by NCC, would offer fibre penetration available on a non-discriminatory basis to telecommunications operators.

    “The Open Access Model has been examined and found to be an appropriate model for Optic Fibre backbone infrastructure in Nigeria to bridge the current broadband gap and deliver fast, reliable broadband services to households and businesses.’’

  • Senate moves against telecoms over dropped calls

    Senate moves against telecoms over dropped calls

    Worried by the growing cases of mobile telephone dropped calls, the Senate has ordered investigation into causes of the problem, even as it chided the GSM service providers for inefficiency and poor service delivery.

    The Senate also warned the service providers against unsolicited calls and SMS that flood subscribers’ telephone lines on a daily basis, even as it kicked against illegal deductions of airtime for frivolous product subscriptions without the subscribers’ consent.

    At its plenary on Tuesday, the upper legislative chamber mandated its standing committees on Communications and Trade and Investment to investigate the matter.

    It also urged the Nigerian Communications Commission (NCC), the Consumer Protection Council (CPC), Standards Organisation of Nigeria, (SON) and other regulatory agencies to invoke the appropriate sanctions against the service providers.

    Urging the agencies to protect the millions of mobile telephone subscribers in the country, the Senate said the telecom firms must not be allowed flout extant agreements and regulations on consumer protection.

    The lawmakers further urged the relevant regulatory agencies to ensure refund to subscribers for disrupted calls and unsolicited airtime deductions.

    According to the senators, the regulatory agencies should exercise more control regarding the usage of data bundles to ensure regulatory and operational efficiency in service delivery.

    The resolutions were made following a motion sponsored by Senator Andy Uba (Anambra South).

    Presenting the motion, Uba protested the loss of billions of Naira by millions of Nigerian subscribers on a daily basis, as a result of what he described as unwholesome practices by the telecom firms.

    Uba said subscribers not only experience disturbing rate of dropped calls but also get incomprehensible speech and voice quality “that sounds like speaking from the bottom of a fish tank”.

    The lawmaker also expressed worry over congestion on the various networks leading to poor audio reception and poor delivery on the various data bundles.

    The Senate specifically fingered the major network providers like MTN, Airtel, Etisalat and Globacom for expanding their network coverage beyond what their existing infrastructure could conveniently accommodate.
     

  • Nigeria requires 80,000 stations to join smart world – NCC

    Nigeria requires 80,000 stations to join smart world – NCC

    The Nigerian Communications Commission (NCC) has said Nigeria needs at least 80,000 telecommunication base stations to actualise its dream of being a smart country.

    The Executive Vice Chairman of NCC, Prof. Umar Danbatta said on Thursday in Lagos that such number of base stations would spur Nigeria to join countries working toward making Internet of Things (IoT) a reality.

    Danbatta said that IoT could be realised by leveraging on fourth generation (4G) and 5G networks.

    He said that the country currently has less than 50,000 base stations.

    “3G, 4G going to 5G networks are going to usher this country into smart applications, the Internet of Things or the smart world and cities we are talking about.

    “And of course because of the additional burden on infrastructure, the present capacity of telecommunications infrastructure is grossly inadequate to cater for these additional platforms or services we talk about.

    “Therefore, we will need from 70,000 to 80,000 base transceiver masts to be able to provide the effective capacity that is needed to deploy 4G going to 5G,” he said.

    Danbatta called on approving agencies at all levels of government in the country to synergise with NCC with a view to achieving the 80,000 target.

    He said that the United Kingdom, with a population of almost one third of Nigeria already has close to 60,000 masts.

    On concerns about health implications to exposure to electromagnetic field, Danbatta said that researches so far conducted in the area had not indicated any adverse health concerns.

    “With regards to other professional bodies like Nigerian Society of Engineers (NSE), we don’t have any quarrel with their positions.

    “The only question is when we say exposure to electromagnetic field is hazardous to health, what level are we talking about.

    “We have to define the level of exposure that is hazardous to human beings.

    “Of course, if you generate a massive electromagnetic field of unprecedented proportion and put a person inside, there will be medical consequences.

    “But what we are saying is that provided the limit specified is observed and NCC is there to ensure compliance with that limit, there is no health hazard,” he said.

    According to him, there is a limit of safety below which electromagnetic fields do not cause any harm to health.

  • Nigeria yet to harvest dividends of ICT revolution – NCC

    Nigeria yet to harvest dividends of ICT revolution – NCC

    Prof. Umar Danbatta, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), says Nigeria has yet to acquire the full dividends of the Information and Communication Technology (ICT) revolution.

    Danbatta made this known during the 8th Edition of Beacon of Information and Communication Technology (BoICT) Lecture and Awards in Lagos.

    Represented by the Executive Commissioner, Stakeholders Management, NCC, Mr Sunday Dare, he said that the ICT revolution had no barriers or frontiers.

    “Nigeria, though already plugged into the ICT ecosystem, is yet to harvest fully the dividends of the ICT revolution sweeping across the world.

    “While our youth have fully embraced ICT, our government, institutions both public and private are still in the process of adopting ICT in their operations and activities. Yet, the future lies in ICT.

    “Nigeria must make deliberate policies that will accelerate ICT penetration.

    “Our educational curricular must integrate ICT at all levels of education and our systems and institutions must be brought into compliance by training and re-training our people,” Danbatta said.

    He said that though government had made some commendable strides in adopting ICT in various aspects of its operations, more systematic and accelerated approach was still needed.

    Danbatta said that ICT had become a one-stop shop for modern tools of development, innovation, employment opportunities and for a smarter world.

    He said that as the world moved towards the Fifth Generation (5G) revolution and the Internet of Things (IoT), Nigeria must embrace fully the opportunities offered by the ICT.

    He said that Nigeria’s ICT initiatives must focus on cyber crimes, cyber security, indigenous software development, digital multimedia platforms, amongst others.

    The convener of BoICT, Mr Ken Nwogbo, said that the lecture aimed at charting the way forward for the ICT sector and put the country on the global ICT map.

    Nwogbo said that the awards were to reward best practices and recognise outstanding contributions to the growth of the sector.

    He said that the awards were given based on merit and designed to reward individuals and firms that had helped make life better for Nigerians.

    The News Agency of Nigeria (NAN) reports that NCC won the awards of ”Regulator of the Year” and ”Best Use of Social Media”, while it’s Public Affairs Director, Mr Tony Ojobo, won the ”Spokesman of the Year” award.

     

  • Telecom masts, towers constitute no health hazards — NCC

    Telecom masts, towers constitute no health hazards — NCC

    The Nigerian Communications Commission (NCC) says there is no health issue surrounding telecom masts and towers mounted anywhere in the country.

    The Executive Vice-Chairman of NCC, Prof. Umar Danbatta, said this in a statement issued at the ongoing 2017 Enugu International Trade Fair on Monday.

    Danbatta said that such belief and claim were mere imagination and myth, adding, “it has no scientific base”.

    “There are some individuals who still believe that telecom masts and towers constitute health hazards to humans.

    “The commission still maintains that the World Health Organisation (WHO) has affirmed that no result of any such hazard has been established against base stations.

    “Therefore, any individual or community adducing such reasons to deny right of way to the telecom companies, and prevent them from expanding services are invariably contributing to the poor quality of service in the network,’’ he said.

    Danbatta said that NCC had been on top of its game as the telecom regulator had not done badly.

    “Recently, the Bureau of Public Service Reforms (BPSR) awarded a Platinum Score to the commission for exemplary performance as an agency of government.

    “This award is an encouragement to us and we will not rest on our oars in continuing to deliver on our mandate, especially as it concerns the consumer,’’ he said.

    The Enugu International Trade Fair, which is being supported by the Federal Ministry of Trade and Investment, is organised to showcase Nigeria’s non-oil products.

    The exhibition, which is the 28th in the series is also providing opportunity for local and foreign businesses to explore and access commercially viable markets in the South-East.

    The theme of the fair, organised by Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) is “Promoting Nigeria’s Industrial Sector and SMEs for Inclusive and Robust Economy”.

    The 10 days trade fair, which started on March 31, will end on April 10.

  • Nigeria GSM subscriptions hits 154 million

    No fewer than 154 million Nigerians are now active subscribers of the General System on Mobile Communications (GSM), the Executive Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta has said.

    Speaking on Friday during the NCC day at the ongoing Enugu International Trade Fair, Danbatta said that the country’s social media space had continued to thrive.

    Danbatta, who was represented by the Head of Public Relations of the South East zonal office, Mr Rueben Mouka,  revealed that  internet penetration of about 90 million subscribers in the country.

    “This has brought the nation to more than 110 per cent teledensity.

    “With broadband penetration of 21 per cent, Nigeria’s social media space has continued to thrive and our citizens are enjoying access to modern ways of interactions in cyberspace,” he said.

    Danbatta said that the commission would continue to keep the nation abreast of developments in telecommunications industry through innovative and world class regulatory processes.

    He, however, regretted the activities of local and state authorities in the South East who deny telecommunication companies the right of way in the task of providing services.

    “We still notice a lot of challenges confronting the provision of services in this part of the country.

    “Issues of vandalisation of telecommunications equipment still abound. We call on the appropriate authorities to note that it amounts  to denial of our citizens rights to communications when we obstruct services.

    “There are some individuals who still believe that telecom masts and towers constitute health hazards to humans.

    The World Health Organisation has affirmed that no result of any such hazard has been established against base stations,” he said.

    Danabatta said that anyone that adduced such reasons to deny right of way to telecom companies and prevented them from expanding services was contributing to the poor quality of service in the network.

    He said that the issue of consumer empowerment and protection aimed at protecting consumers from unfair practices occupied a prominent place in the 8-point agenda of the commission.

    He said that the commission had dedicated 2017 for the resolution of complaints of consumers as a complement to their consumer parliament sessions and outreach programmes.

    “We have all mandated our zonal offices to take the messages down to the grassroots through a new interactive programme called ‘NCC Conversation’,” Danbatta said.

    In a remark, the President of Enugu Chamber of Commerce, Industries, Mines and Agriculture, Mr Ugochukwu Chime, said that the commission needed to do more in its regulatory operations.

    Chime said that in spite of the laudable achievements of the commission, “Yet, there remains a lot more that needs to be done to fully tap the potentials in this sector”.