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THE regulatory atmosphere in Nigeria’s telecommunication sector may appear inconsistent and bullish in some aspects, particularly in the areas that affect business operations. However, the balance it creates between the government, operators and the users makes it the most unique in Africa. In one breath the operators are crying that some of the decisions are affecting their operations, in another, the regulators are making excuses for the operators’ poor services, trying to figure out ways the government can create a more conducive playing field for their businesses. For instance, the buzz word in the industry is that the $200m loss MTN posted in its last financial year was as a result of the unprecedented fine it incurred from the Nigerian Communications Commission, NCC. , MTN says it made $200 million loss in 2016, the company’s first big loss after suffering a huge fine in Nigeria and currency challenges in key markets. The Group, indicated that its financial results for 2016 reflect the most challenging year in the company’s 22-year history. This was after the company reported profits of 20.2 billion rand ($1.6 billion) before tax, the previous year.
Danbata Degenerating quality of service It further explained that overall performance of the company was hindered by lower than expected growth in South Africa and Nigeria as well as the depreciation of the Rand against the dollar and the continued impact of a $1 billion (950 million euros) fine by Nigerian authorities. Nigerian authorities had in October 2015 fined MTN for failing to disconnect unregistered mobile accounts in its network, and ordered it to pay $1,000 for each improperly registered SIM card. Although it is well within its right to sanction operators for violating laid down instructions, some opinions were that the fine as well as other forms of taxation may have backfired on the industry. In agreement with this, is the President, Association of Licensed Telecommunications Operators in Nigeria, ALTON, Mr. Gbenga Adebayo, who has always said that