Telecoms firms face more penalties

other issues.
The renewed threats follow the heavy fines that the regulator slapped on mobile network operators such as MTN, Emerging Market Telecoms Services Limited, owner of Etisalat, Airtel Networks Limited and Globacom Limited.
DR Juwah was briefing the communications committee of the Lower House of the Nigerian parliament about last week’s heavy penalties on some GSM providers in the country more penalties will follow if no solution is found.
He reaffirmed the regulator’s resolve to sanction any telecoms company that fails to meet the quality of service stipulated by the commission.
He said the fine on some telecoms companies that did not meet the quality of service in the months of March and April, this year, remains adding that the commission would no longer tolerate excuses for unacceptable performances.
The telecoms operators affected were MTN, Etisalat, Airtel and Globacom Limited.
The four were fined a total of US$7,5 million over their failure to meet the Key Performance Indicators on quality of services set by NCC.
The details of the penalties already communicated to the different operators indicated that MTN and Etisalat would pay  US$2,3 million each while Airtel is to cough up US$1,7 million.
Globacom attracted a US$1,1 million penalty. All the operators are to pay the penalties on or before May 21, 2012 or be liable to payment of additional US$15 888 per day for as long as the contravention persists.
MTN blamed the problem on the challenges that exist in Nigeria including those related to erratic power supplies, the insecurity of property, vandalism, and the menace of multiple taxation and over-regulation.
Mr Akinwale Goodluck, MTN’s corporate services executive, said the company generates up to 80 percent of its power requirements, stating that MTN’s network is one of the largest in the world running almost entirely on self-generated power.
He said that the company expends billions of naira annually on diesel alone and was committed to ensuring the best quality of service for its millions of customers.
He said: “MTN continues to employ the greatest effort to overcome the infrastructural and environmental challenges that impede the delivery of consistently good quality of service.
Etisalat Nigeria said fines averaged US$2 million per operator for “non-compliance with the quality of service targets set by the regulator.”
“This year alone we are investing more than half a billion dollars in expansion of our network capabilities and capacity,” chief executive Steven Evans said. — CAJ News.