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Mobile industry reacts to record NCC penalty

28 October 2015, 10:25Augustine Osayande

Abuja - Mobile network operators have denounced the fine the Nigerian Communications Commission (NCC) has imposed on fellow operator, MTN Nigeria.

The country's biggest operator has been slapped with a fine of more than N1 trillion for failing to deactivate unregistered subscriber indentify module (SIM) cards on their network, in line with directives by NCC.

It is the biggest fine NCC has imposed in history.

The Chairman of the Association of Licensed telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo said such sanctions could 
impact on profitability.

"I don't know how NCC arrived at the huge amount as a fine. But I think government should urgently intervene because it could affect further 
investments in the sector. It is disincentive to investors and would have negative impact on the sector as a whole," Gbenga said.

Also read: MTN Nigeria fined $5.2 billion for failing to register users

MTN imposed a fine of N200 000 per SIM card.

The fine applied to more than 5 million SIM cards applied.

The President of the Association of Telecoms Companies of Nigeria (ATCON), Lanre Ajayi, condemned the sanction as "shocking".

"The sanction is unacceptable in a telecommunications industry that is still gasping for foreign investment to achieve pervasive telecoms 
services," said Ajayi.

"I believe strongly that there is nothing wrong in a regulator imposing a sanction on erring operator to ensure sanity in the market but when 
such a regulatory tool is being abused, it calls for alarm. The amount imposed on MTN is just, to say the least, outrageous and monumental," said Ajayi.

NCC has justified the fine arguing MTN had been given time to deactivate the unregistered SIM cards.

The regulator has previously fined mobile operators for alleged poor services. 

- CAJ News

Tags mtn ncc

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