To Meet 17.5m Subscribers’ Target: MTN Flaunts Regulator’s Directive

It has been observed that when it comes to obeying directives from the telecom industry regulator Nigerian Communications Commission (NCC), operators tend to choose their own terms and timing, this seems to be the case with the refusal of telecom giant MTN to stop the implementation of a tariff plan called MTN TruTalk+ as directed by NCC. The telecom giant MTN seemingly are not playing by the books, in its efforts to attain its target of 17.5 million new subscribers across its operations in Africa, with Nigeria expected to contribute more than a quarter in 2015. The Commission in a letter dated May 19, 2015 with ref No NCC/MTN/18/15 and signed by the Head, Compliance Monitoring and Enforcement, Mr. Efosa Idehen and Head, Legal and Regulatory Services, Mrs. Yetunde Akinloye, said the records of the Commission shows that the operator did not obtain approval from the regulatory authority before embarking on the new promotional tariff plan. The Commission also barred MTN from further advertisement of such service in the print, electronic media or its websites. The directive which is supposed to be obeyed with immediate effect has gone unheeded by MTN, who continue advertising the plan on their website and registering new users nearly one month after NCC’s directive. However, citing a tough regulatory environment as one of the factors that hindered further growth for MTN last year, a South African analyst Reuben Beelders, portfolio manager at Gryphon Asset Management, said: "It would appear that the regulatory pressure may ease." With MTN’s head begging for the regulator’s big hammer, one does not see Beelders sentiments above, coming true anytime soon. Speaking to Daily Times, an NCC official had affirmed that the apex regulator will take necessary actions against any operator that ignores regulations guiding the industry. “The commission is looking into the issue and the enforcement and compliance department are working on it and very soon you will see the action that will come out of it from the commission,” the official said. Earlier in March, the MTN Group, reported muted full-year earnings growth.  MTN's diluted headline earnings per share, the main measure of profitability in South Africa, rose to 1,527 cents in the year ended December, up nearly nine per cent from a year ago. Its biggest market is Nigeria, which contributed nearly 37 per cent of MTN's total revenue, while its South African home market made up about 27 per cent. Indeed why different tariff plans allows for flexibility and the effective servicing of multi categories of customers, it is also an innovative strategy by the telecoms’ marketing departments to chase revenue for the brand in a highly competitive and profitable market. For there to be harmony and proper conduct of business along ethical lines, in tandem with best global practices, players must not become laws unto themselves or else the gains made so far will be eroded in less time than it took to conclude the bidding processes. Analysts believe that this kind of impunity by MTN does not bode well for a sector that has become the catalyst for economic revolution in Nigeria, since its privatisation by former President Olusegun Obasanjo’s administration.. Impunity cannot afford to be the order of the day in the sector and no operator should be seen flaunting the directives of the regulator in its bid to meet the company’s set objectives, especially MTN that is acclaimed to be Africa's largest telecoms provider.

#Brand_NewsNigeria

SHARE THIS