MTN still on the hook for $5.2bn fine

A giant poster of MTN, one of the operators of GSM digital mobile phones, adorns a building in Lagos, the commercial nerve centre of Nigeria.

A giant poster of MTN, one of the operators of GSM digital mobile phones, adorns a building in Lagos, the commercial nerve centre of Nigeria.

Published Nov 17, 2015

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Abuja - Nigeria’s communications authority said it hasn’t reduced the $5.2 billion fine imposed on MTN Group for failing to disconnect millions of unregistered mobile-phone customers as it looks into the company’s call for leniency.

MTN has won more time to negotiate the penalty, which was due to be paid on Monday, the Johannesburg-based company said in an e-mailed statement.

While MTN has admitted to breaking the rules and appealed, the fine remains in place, Nigerian Communications Commission spokesman Tony Ojobo said by e-mail on Monday.

The government says it wants all SIM cards registered to track down felons who use mobile phones for their crimes. The West African nation is facing an Islamist insurgency in the northeast and crimes including kidnappings for ransom and the theft of oil against the backdrop of falling government revenue from lower crude prices.

The fine was imposed "in the interest of the public, which has been at the receiving end of security challenges," Ojobo said. "The fine remains but the appeal and other engagements with MTN may affect the payment deadline."

Nigeriam mobile phone operators MTN, Bharti Airtel, Globacom and Emirates Telecommunications, or Etisalat, all failed to abide by a deadline to deactivate unregistered users in August, Ojobo said. After an audit and further discussions, MTN was the only company left that "showed no sign of compliance at all."

Airtel was fined 3.8 million naira ($19 136), Etisalat 7 million naira and Globacom 7.4 million naira, he said.

BLOOMBERG

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