NCC threaten N500m sanction against MTN, others
….As Reps seeks probe of telecom operators
By Kelechi Mgboji
The Nigerian Communications Commission (NCC) has issued December 31, 2013 deadline to MTN and other telecommunication service providers to improve on the quality of service or face drastic sanctions worse than those of May 2012 where the Commission slammed N1.2 billion fine on them.
In fact, after several years of regulatory slumber, NCC said it has decided to wield the big stick against the telecommunication companies for consistent failure to meet the minimum key performance indicators (KPI) threshold.
The Commission had slammed N1.170 billion sanction on all the operators in May 2012 for failing in different KPIs with MTN Nigeria Communications and Etisalat paying the highest penalty of N360million each.
The details of the penalties already communicated to the different operators also indicate that Airtel is to pay the sum of N270million and Globacom attracted a penalty in the sum of N180 million.
We could not confirm at press time whether the network providers have paid the penalties but a reliable source disclosed that the telecom companies are yet to comply with payment over which the telecom operators are likely going to face more severe sanctions beginning from January 1, 2014. 
This is coming on the heels of moves by the House of Representatives to commence probe of arbitrary charges on subscribers after the Nigerian NewsDirect investigative story revealed that MTN rakes in N2.7billion monthly from arbitrary deductions for its caller tunes service.
The House mandated its Committee on Communications to investigate alleged unwholesome practices by telecommunication operators in Nigeria. The committee is expected to submit its findings within four weeks.
The resolution is sequel to a motion jointly sponsored by Reps. Eddie Mbadiwe (PDP-Imo) and Frank Enokorogha (PDP-Delta) and adopted without debate.
According to Mbadiwe, the companies have raked in millions of naira as innocent citizens who have not subscribed to some of their sales promotions are being charged without authorisation.
A letter from the NCC addressed to the Chief Executive Officer of MTN frowned at the declining quality of network service saying it has fallen far short of the KPI threshold expected of all service providers.
The letter titled “Notice of intention to issue direction pursuant to sections 53 and 54 of the Nigeria Communications Act, 2003” stated that after careful investigation of the quality of service of all the major network operators, has concluded that the present service being provided by operators falls below the KPI published by the Commission in quality of service regulations, 2012.
The letter dated December 10, 2013 and obtained by Nigerian NewsDirect reads in part: “The Commission, having critically reviewed the declining quality of service and in exercise of its statutory powers intends to issue a direction in the following terms:
“Failure to comply with any direction that may be issued pursuant to the above notice will result in the imposition of sanction in the amount of N5million and a further sum of N500, 000 per day after the expiration of the notice for as long as the contravention persists and calculated from the deadline specified by the Commission for the operator to meet the minimum standard of quality service,” said the Commission.
Implication of the notice to the telecommunication network service providers is that any of the KPI’s failed by 31 December would warrant stoppage of sell of SIM cards by the offending operators.
All the operators may be affected as most of them are not performing to the satisfaction of the key consumers especially in the area of drop calls which has become more rampant in recent times.
The stoppage of SIM card would not preclude issuance of sanctions as done in 2012 as the Commission is angered by the fact that the KPI’s were lowered after the sanctions but the operators did not meet the terms of agreement it entered with the Commission to improve quality over a 12 months period during which it promised to meet with the KPI’s.