N1.4trn penalty too heavy to bear – MTN

Three days after Nigerian Communications Commission, NCC slammed a N1.4 trillion penalty on MTN Nigeria for failure to disconnect customers with unregistered SIM cards, Parent company MTN group has cried out that the fine was too extreme, even as it continues to engage the regulator on how to resolve the issue.

MTN Group noted with dismay that Nigerian Communications Commission refused to listen to its plea to reconsider its stand on the penalty slammed on its Nigerian arm last week.

According to a report, MTN Nigeria spokeswoman, Chineze Gbenga-Oluwatoye, had said in an e-mailed response, that “recommendations were put forward with respect to the non-commensurable nature of the fine but the Nigerian Communications Commission did not accept recommendations that the fine of 200,000 Naira ($1,005) per SIM was too heavy.”

‘‘MTN Nigeria contacted the regulator with concerns that a demand to disconnect SIM cards by a certain deadline would cause “severe disruption” for customers and recommended a staggered process to limit the possible impact,’’ said Oluwatoye.

As a result of the fine, MTN shares plummeted about 20 percent this week in Johannesburg. The biggest four-day drop since 2008, valuing the company at about 284 billion rand ($21 billion).

A MTN service provider tries to register a client's SIM card in Lagos, on October 27, 2015. Nigeria's telecommunications regulator has fined South African mobile giant MTN $5.2 billion for missing a deadline to disconnect unregistered SIM cards, the company announced on Monday. The penalty saw shares in Africa's largest telecommunications company crash more than 12 percent to 167 rand on the Johannesburg Stock Exchange, the biggest fall the firm has suffered in a day since November 1998.

Nigeria’s telecommunications regulator has fined South African mobile giant MTN $5.2 billion for missing a deadline to disconnect unregistered SIM cards, the company announced on Monday. The penalty saw shares in Africa’s largest telecommunications company crash more than 12 percent to 167 rand on the Johannesburg Stock Exchange, the biggest fall the firm has suffered in a day since November 1998.

The phone operator had said on Monday that the Nigerian Communications Commission is seeking the penalties because it missed a deadline to disconnect 5.1 million subscribers and is reviewing its management in the country.

Moody’s Investors Service had on Thursday lowered it’s rating for MTN to negative from stable following the fine.

“Key concerns raised to the NCC highlighted the difficulty of carefully reviewing the data on 18.6 million records within the one week deadline to ensure identification and disconnection of only affected subscribers,” Oluwatoye added.

Meanwhile, Financial analysts have pointedly said that Nigeria government is at risk of scaring off investors it can’t afford to lose if the N1.4 trillion fine slammed on MTN holds through.

With an economy struggling to cope with sliding oil prices, the experts said currency restrictions and no finance minister, authorities are doing themselves no favors by penalizing one of their biggest foreign investors.

According to fund managers including David McIlroy of Alquity Investment Management Limited, the fine equates to more than 20 percent of Johannesburg-based MTN’s market value.

“It’s the last thing Nigeria needs, given the economic and political struggles it’s contending with at the moment,” McIlroy, chief investment officer at Alquity, which oversees $100 million of frontier market stocks, including MTN shares, said by phone from London.



http://www.vanguardngr.com/2015/10/n1-4trn-penalty-too-heavy-to-bear-mtn/

Can't stop laughing

;DD swear MTN are mad after all the money

Says who?

From 'everywhere you go' to 'abeg, u wan make we go?'

Una neva see anything

You must pay it oo! Karma has finally visited MTN on all my money they use to remove for the CallerTunes I didn't subscribe for.



Hahahahahaha! MTN just removed #100 from my Acct. now! Which one is "your product AC Millan is activated" again? This people want to get the 1.4Tr by crook and hook from Nigerians oo!
NCC pls forgive them ooo!

MTN go vex increase tarrif codedly! U go dy call, before you know sarah go tell u say 'u v one minute remaining'

Mtn has hurt me really bad.
I want the NCC spokesperson to use their customer reps voice and tell them this for me. "We re sorry u ve to pay the fine. Sorry for the inconveniences. Thank you for using nigeria"


PS nigerians it is time to port so as not to feel the wrath of MTN

when they have been stealing tactically since the year 2000?

Serves them right, they've even increased their tariff. I now make all my calls at 40k/s, MTN zone by foot

well, it is 10% of their revenue... it is a business... this is like cutting off a student's head because he did not do his assignments.

speedyGonzales:
well, it is 10% of their revenue... it is a business... this is like cutting off a student's head because he did not do his assignments.

we both know it is for show. The final fine to be paid by MTN wont be more than 1billion naira or 5million dollar.

The fine will be reduce from 1005dollar per sim to 1dollar per sim finally. just my opinion and wishful thinking.

jazinogold:
MTN go vex increase tarrif codedly! U go dy call, before you know sarah go tell u say 'u v one minute remaining'

Guy abeg you get the sarah phone number

MTN pay up and stop the noise. Left for me it will be tripled.

#One-third of 2016 budget done set be that

atbu1983:


we both know it is for show. The final fine to be paid by MTN wont be more than 1billion naira or 5million dollar.

The fine will be reduce from 1005dollar per sim to 1dollar per sim finally. just my opinion and wishful thinking.

well, with GEJ I will agree with you, but I am not sure about Buhari... we will see!

Forgive them NCC if only they will sell 1GB for 400 naira.

A ploy to bring NITEL/MTEL back on board. Indegenisation is the key. Imagine mtn on johnesburg stock exchange but can't even allow Nigerians yo invest in their company in Nigeria. Still they carry most of foreign currency from Nigeria to south Africa. I support the fine and ncc should never step down on the fine. Next should be dstv with around 4trillion naira fine.

Yes must be a ploy to ground MTN. If the head was one aboki would Pres. Buhari have made that move. Pres. Buhari is too much of an ethnic bigot to head Nigeria..

Nigeria/Nigerians can be wicked at times, imagine! But e be like I support the fine sha

They should just shut up and pay the money... The fine was spelt out since last year but they deliberately refused to comply because they were making money from those 5.1mill unregistered lines, so let them pay.

all the money wey una don chop nko

Chiaka:
Yes must be a ploy to ground MTN. If the head was one aboki would Pres. Buhari have made that move. Pres. Buhari is too much of an ethnic bigot to head Nigeria..

What's this one saying? is it an indigenous company? MTN must pay.

I doubt if MTN will pay the N1.4 trillion, but they will definitely pay something substantial, MTN cannot afford to exit Nigeria market because of the fine, it's as a result of their negligence. Other companies are waiting in the wing to snap up their slot.

Today, not only is MTN Nigeria the jewel in the MTN Group’s crown, its success story has proven that with the right business strategy and marketing guile, Nigeria can turn out an investors dream, despite the challenges of operating in the terrain.


This was evident in the survey conducted by THISDAY last week on MTN Nigeria’s operations which showed that in 10 years, the company grossed a total of N2.988 trillion in revenues between March 2001 and December 2010, and posted profits after tax amounting to N857.655 billion during the same period.

In 10 years, the company has also grown its subscriber base from 327,000 in its first year of operation ending March 2002 to 40.5 million revenue generating subscribers by June 2011, representing 52 percent of market share and accounting for 26.6 percent of the MTN Group subscriber mix, comprising South Africa, Iran and other countries where the company operates.

Pay up and no complaint!
MTN must vomit all the money they have taken from their subscribers unlawfully.

How come nobody is asking why MTN did not respect the laws on the registration of the SIMs as instructed? If they are fined for breaking the law then its okay. They should have known better. We have gotten so use to giving excuses when the law is to be enforced or wanting to get some bending of the enforcement.

If MTN has violated any law or regulation they should simply comply to its punishment like any other person or organization. We can't keep amending laws or regulation when ever it suits a cabal,a clique or a selfish organization.We are all equal and they (MTN) should have known better and acted in accordance to laid down regulation.If i was to try and make an unpaid call,i believe it won't take MTN or other providers long to place a negative bill on my SIM balance or prompt me i need credit.Its about priority!

The Government and regulatory bodies are trying to secure the telecom sector to prevent exploitation by criminals and the same operators are reluctant to follow through.The simple none compliance may have caused a life or caused some loses. Again how do you put a price on that? If the real objective of registration is to assist in curbing crime ,particularly terrorism and kidnapping.Every minute,Every action is important to being ahead of criminal minds ,particularly as it relates terrorist and kidnapping!

Going by their history Nigerians have no pity for MTN!

I am more concerned about where those funds are going to..The bank

MTN has long syphoned us..PBT

Just as 25000Naira for sim cards was too much burden for me to bear back then ....But I paid.
Now it is your time to pay.

How did the NCC expect 5 million lines to be disconnected at once? That would have created a crisis of national proportions.

Where was the NCC when the 5 million lines were been registered?

they better pay it quick


too much to bear ko...too much to tiger ni

awon ole!!