The decision by the Nigerian Communications Commission to impose a N4.7 billion fine on errant GSM operators brings reprieve to millions of victimised subscribers across the country
By Michael Mukwuzi
For so long, the Nigerian Communication Commission, NCC, has been pilloried for alleged collaboration with GSM service providers to fleece subscribers. Although their services have become inevitable, MTN, Celtel and Glo, the leading operators, have always been accused by subscribers of offering services that do not match their charges. Subscribers have, therefore, been looking forward to Ernest Ndukwe, Executive Vice-Chairman of the NCC, to rein in the operators.
From the NCC, succour has taken a long time in coming. But it did come last week when the regulatory agency took what many described as its most audacious step to combat the issue of poor GSM services. The Commission announced the imposition of penalties on two erring service operators, MTN and Celtel. Both networks have been mandated to pay a total of N4.7 billion for failing to meet the regulatory body’s specified quality of service standard in the month of January. MTN will dole out N2.77 billion while Celtel will pay over N1.94 billion back to subscribers in the form of airtime credit refunds.
To arrive at the figures, the NCC requested that both operators pay N175 to each of their 27 million subscribers. By December 2007, MTN had 15,873,000 subscribers while Celtel had 11,098,500.
Before now the NCC had issued strictures to all networks to meet the key performance indicator average for quality of service on the national average. Under the rules, network congestion exceeding the 10 per cent mark would bring about a N175m per month sanction per subscriber.
NCC said it would impose a fine of N50 per subscriber monthly where there was 2 to 5 per cent traffic channel congestion, while 5 to 10 per cent congestion level will attract N100 per subscriber per month in any network.
The NCC threatened to carry out an independent assessment of the traffic channel congestion on a weekly /monthly basis. The operators were also mandated to submit regulator weekly reports on their performance to the Commission.
Ndukwe explained that NCC would not accept a situation in which the networks charge subscribers for services not rendered. “We are very insistent about this issue of compensation, we have said that we will monitor their services and that at the end of January, we will look at those operators that have not met the minimum congestion level and once we establish that, then we will impose sanctions,’’ Ndukwe stated.
On the excuse of poor network backbone, multiple taxation and vandalism of equipment to which operators usually point for their non-performance, Ndukwe retorted: “What has happened is that when people move from one part of the country to another, you have a kind of congestion on the network. What we have done is to ensure that those operators continue to build capacity as fast as possible, in order to make sure that the capacity issue is addressed.”
Only last year the issue of sanctions against erring telecoms operator was brought to the fore when operators challenged the NCC’s decision to impose such sanctions at the Federal High Court, Lagos. Following a request filed by MTN and Celtel, Justice D.D. Abutu granted an interim injunction on 2 October 2007 restraining the Commission from going ahead with sanctions.
The order restrained NCC from effecting the notice of intention served on the GSM operators on 19 September 2007 pending the determination of motion on notice. But Celtel, MTN and Globacom were given up till 1 October 2007 by the NCC to explain why the quality of phone services had failed to meet the stipulated quality of service levels.
The Commission was also restrained from introducing, applying or enforcing the channel traffic parameter against the applicants pending the determination of motion on notice.
But the injunction was vacated weeks later following an NCC application.
Before the current NCC move, the issue of poor quality of service had elicited complaints from almost every mobile phone user in Nigeria.
The crisis came to a hilt during the last Christmas and sallah celebrations as incidents of network congestion, poor reception, cases of drop calls, failed text messages and inaudible voice calls occasioned by network congestion became the rule rather than the exception.
The network crisis almost came to a breaking point in the early minutes of the New Year as Nigerians were meshed in a rat race to send the traditional New Year greetings to one another. Irked by the crippling GSM situation, the National Assembly waded into the issue, as it asked operators to explain reasons for the current problem.
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