MTN Nigeria Threatens to Sue Regulator

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Monday, May 3 2004

MTN Nigeria Communica-tions Limited Monday warned commissioners for the National Communica-tions Commission (NCC) that they would be held liable for contempt of court should the other GSM operators go ahead to implement the new interconnect rates as announced by the NCC.

MTN's contention is that the court has made an order that the status quo should be maintained pending the determination of the substantive suit.

But the NCC, which has another interpretation to the same ruling, maintains that no such order exists from any court.

MTN in its desire to ensure that the new interconnect rates do not take effect wrote the Commissioners of the NCC reminding them that they would be liable for contempt of court should the operators go ahead to implement the new contentious rates.

Based on the tone of the letter which one commissioner described as "rude", the NCC commissioners wrote to put off a scheduled visit to Lagos to inspect MTN's new switching centres yesterday.

The Assistant Public Relations Manager, Mrs. Atim Mkpubre, acknowledged last night that MTN had received the letter from NCC rescheduling the visit of the board members to MTN Lagos.

She however insisted that the letter only talked of rescheduling and not cancellation although no date had been fixed for the inspection of facilities.

He said, "NCC did not go because we found the action of MTN's lawyer disrespectful. Our not going is to make a firm comment on the action of the lawyer."

MTN had also recently written to telecom operators with whom it had interconnect agreement asking them that the contractual obligation to which they entered before the new interconnect rates controversy should be maintained.

Mkpubre said what the company had done in that regard was just to state the obvious. According to her, until the court dispensed with the case, the old rates which the other operators signed with MTN remains.

In the new rates announced by the NCC, calls from fixed network operators which terminate on GSM networks attract a rate of N11.52 per minute. If it is the other way round, from GSM to PTOs, GSM operators pays the PTOs N5.52 per minute.

From the initial commencement date of January 1, the Commission shifted the take-off date of the new interconnect regime to April 1.

When it announced the new rates in December last year, the NCC said "The Commission believes that the interconnect rates as published is for the good of the industry and will not in any way discourage any operator that is genuinely interested in doing business in Nigeria as well as interested in advancing the cause of fair pricing to both the network operators and the consumers."

"In the process of developing the new interconnect rates for the industry, the Commission held consultative forums for all operators and received inputs which were taken into consideration before taking its decision. The Commission thereby advises all operators to abide by its ruling," it stated.

The rates were expected to reduce the airtime tariff prevailing in the industry.

Both MTN and Econet had gone to court to challenge the ruling. In the last ruling on the issue by a Federal High Court in Abuja, Hon. Justice Binta Nyako struck out Econet's application pointing out that the processes required to be followed before the court action had not been followed. Econet has however appealed the ruling which has been slated for mention on May 7.

 

 

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