NCC Measuring gauge

We all have witnessed instances when you go to a particular fuel station, and you suspect that the amount of fuel sold to you is not proportional to the litres shown on your car dashboard fuel gauge. The possibility is that the fuel station is not using the right gauge to sell fuel to consumers.

All over the world, there are instances where companies are been fined for one reason or the other. And the host country or regulator stipulates a fine as a penalty. Last year 2015, a US company Qualcomm(makers of chipsets) was fined $975million for antitrust issues. The company's revenue is over $25billion. The fine accounts for about 4% of their revenue. http://www.bbc.com/news/business-31335551

BP a US oil giant was fined a whooping sum of approx. $20billion for the oil spillage that occured 2010. The company's revenue is over $250billion. The fine accounts for about 8% of their revenue. And they are expected to pay within a period of 18yrs. http://www.thisismoney.co.uk/money/news/article-3147370/BP-pays-largest-settlement-history-2010-Gulf-oil-disaster.html

Back in 2012, GlaxosmithKline was fined $3billion and the company's revenue stands at $35billion. The fine accounts for about 9% of their revenue.
http://www.dailymail.co.uk/news/article-2167742/GlaxoSmithKline-pay-3b-fine-pleading-guilty-healthcare-fraud.html

I can go on and on to list out companies who have been fined in other countries. And remember the economy of these host countries are not nose-diving. The GDP of the countries are far higher than Nigeria.

Moving forward let us consider the fine NCC has stipulated on MTN to pay for failing to shut down 5.1million lines.

MTN Nigeria's revenue for 2014 was about $4.5billion. NCC initially gave a fine of $5.2billion which equates to 116% of their revenue.
And NCC later reduced the fine to $3.9billion. The fine accounts to about 86% of their revenue. And they are expected to pay it within a month

Where on Earth has this outrageous fine been issued? What measuring gauge is NCC using to dish out fines? Does it sound right if a road user beats traffic and LASTMA demands a fine of N30million? Does it sound justifiable if your child fails to do his homework and the child is expelled from school?

I am not saying that MTN had not erred. I am of the opinion that the fine NCC is demanding for is not corrective but it is will bankrupt MTN.


Consumers right (Law)

Across board, I have heard people give reasons why MTN should pay the $3.9billion fine. And the major reason is because they have broken the law of the land. And other sentimental reasons attached to it is that we have a new government and we need to send the signal to foreign companies that business will not be as usual. And lastly can these foreign companies try what they do in Nigeria in their home country?

I concur with the reasons but we as consumers need to sit down and know if truly our right as consumers is been taking into consideration by government parastatals and agencies (NCC, FRSC, NAFDAC, SON etc)

Let me ask these questions.
1) Who is affected most when Shell spills oil in the rivers of Niger Delta area? When your call credit disappears without any explanation? When you open a beverage drink and you find an insect inside?
2) Do we the consumers get a compensation when the companies are been fined?
3) Do you know your right as a consumer?
4) Have you ever been giving the right to sue NCC, FRSC, NAFDAC etc or Companies when you are served poorly?
5) Has NCC considered us when he asked the telecoms to shut down our lines because of sim registration? In countries where these foreign companies emerge from. They fear the citizens of those country more, because they have the right to sue them on different reasons such as they missed their flight because the line was shut down, they lost businesses worth millions because their line was shut down, a child was traumatized because he could not communicate with his parents after closing from school etc

6) PHCN serves us estimated bills even though they never supplied power. Have you been able to sue PHCN?
7) Police discriminates and abuse our rights. Has the government giving us the right to sue Police for wrong doing?
Some banks erred the deadline given by the government for the TSA. The fines where not outrageous. Are we aware of the present state of the economy?

The bottom line is, when NCC receives the fine. Does it cater for all the complaints you have against MTN in the past? Has NCC created a platform for us as consumers to bear our complaints? How does NCC intend to distribute the fine in other to have a direct impact on we the consumers?


Need for Diversification of the Economy

Before the inception of the telecoms into Nigeria. The only vibrant sector of the economy were the Banking and Oil & Gas industries. It was a dream for new graduates to seek employment in these sectors of the economy.

Other sectors where not active. The sports, entertainment, telecoms, small businesses, internet enabled industries etc. But at the entrance of the telecom companies. The sports sector became vibrant (Glo sponsored leagues, MTN Polo and golf sponsored tournaments), Entertainment (All telecom companies are actively involved), Internet and small businesses filled the effect of the telecom companies into Nigeria.

The present state of our economy is nose diving because of the dwindling price of crude oil, which is our main source of revenue. Would it not be smart of us to allow other sectors to grow? Previous administrations had always chorused " We need to diversify". The telecoms contributed 4% - 8% of our GDP. Is it not wise for us to support and see more growth in that sector? Don't you think that the agric sector's growth in the rural area can be facilitated with penetration of phone communication and internet?

Our diversification motto solely leverages on the telecom industry. Lets have a rethink on MTN's fine.


Business challenges in Nigeria


Nigeria is a fertile place to create a lucrative business, Nigeria's population, needs and lifestyle demands gives every prospecting investor the push to start a business in Nigeria.

Yet we all know that the peculiar challenges faced in running a business in Nigeria is colossal. Lack of Infrastructure, Corruption, Lawlessness has been the order of the day. Having an MBA from Harvard Business School is not enough to successfully run a thriving business in Nigeria.

If we keep saying that can foreign companies try what they are doing here in Nigeria in their home country, Let us ask also do they face issues of lack of infrastructure, corruption to get your papers signed, delay in getting papers signed, destruction of masts, stealing of cables, destruction of gas pipelines etc in their home countries?

So if you see any company still excelling in Nigeria after 5 years you should not totally kill the company. Our power sector is in a state of comatose and we are begging the government to fix it. Yet the government is totally relying on foreign investors to risk investing in Nigeria and fix the power sector.

Should they fix the power sector and in few years to come we are enjoying stable power supply. And one of the companies falls into this state where MTN is at the moment. Is it fair to allow the same government kill the company with an outrageous fine? No true entrepreneur would love to see this happen.

Let us rise together and put aside sentiments, Let us plead with the government to allow businesses thrive in Nigeria. Demanding for 86% of MTN's revenue as fine is damn too much.



We are true Giants of Africa


Our National anthem goes by "Arise O Compatriots..." If we truly understand the pledge and anthem we have recited several times as Nigerians. You would understand that we are too stand tall as giants in every area of our endeavor. In the area of sports, entertainment, business etc.

Let us cast away sentiments that discriminate against foreign investments. Let us shy away from xenophobic attitudes. Dangote for example is the richest man in Africa and he has is investments spread across Africa. Let us export true virtues of a giant. Let us stop been myopic as youths. We should be thinking beyond setting up a thriving business in Nigeria, As true giants of Africa. Africa should be a home to us wherever we are as Nigerians.

The Americans are giant of the world today because they accommodate and tolerate other nations. The are willing to fight injustice irrespective of the color, religion, gender of the victim. It is a new year and new dawn for us to think differently. No company should be grounded at this present state of our economy.

Cc: lalasticlala

I aint pleading

Misplaced pleading, OP give us the total revenue of MTN from the Nigerian market from 2001 till date. How did you plead on behalf of fellow Nigerians through these years MTN has been extorting them?

I don't give a sheet abt pleading bt am sure mtn we nt be down for now.

Pavore9:
Misplaced pleading, OP give us the total revenue of MTN from the Nigerian market from 2001 till date. How did you plead on behalf of fellow Nigerians through these years MTN has been extorting them?

Click the link below to see their total revenue.
https://www.mtn.com/Investors/FinancialReporting/Pages/AnnualResults.aspx

ojun50:
I don't give a sheet abt pleading bt am sure mtn we nt be down for now.

Hopefully. MTN would survive it.

According to what I read , they this fine was based on an agreement or MOU between all the parties that any network operator that default would pay a fine or 1,000,000 per line I guess that's how they came to that figure

@ Op this case Is a very simple case. Let's not complicate issues here.

The fine is fixed per line. From my research it (the fine /penalty) was fixed in 2011 after due consultation with all stake holders including the Telecoms companies.

Scenario : my company has 20 trucks and a fine of N25,000 is fixed as penalty for an offence eg bad tyres. If 10 trucks from my fleet has bad tyres I pay N25,000 x 10= N250,000. It's simple, the best I can get is a slight reduction.

That is exactly what happened here.

Mtn as a corporate entity contravened an already existing offence. Ncc did not cook up the figures its clearly stated.

Someone should please tell Mtn to learn to obey the law. Simple.

mrsage:
@ Op this case Is a very simple case. Let's not complicate issues here.
The fine is fixed per line. From my research it was fixed in 2011 after due consultation with all stake holders including the Telecoms companies.
Scenario : my company has 20 trucks and a fine of N25,000 is fixed as penalty for an offence eg bad tyres. If 10 trucks from my fleet has bad tyres I pay N25,000 x 10= N250,000. It's simple, the best I can get is a slight reduction.
That is exactly what happened here.
Mtn as a corporate entity contravened an already existing offence. Ncc did not cook up the figures its clearly stated.
Someone should please tell Mtn to learn to obey the law. Simple.

You are right, they had an agreement. That is why we need to Plead for MTN because we don't want any company to die at this phase of our economy. Like other countries where huge fines are stipulated on companies they don't ask them to pay within a month.

BP was asked to pay for a period of 18years. Even though the effect of their spillage has a disastrous effect compared with the issue on MTN.

Plead on behalf of mtn? Did they ask us the public to assist in the bargain. Mtn isn't even pleading for themselves. My dear op let's allow d law decide who win d case rather taking undue paracetamol on another man's headache.
This is part of the change d president wants for d country.

lcoral:
Plead on behalf of mtn? Did they ask us the public to assist in the bargain. Mtn isn't even pleading for themselves. My dear op let's allow d law decide who win d case rather taking undue paracetamol on another man's headache.
This is part of the change d president wants for d country.

Having gone through this piece and with a deep thought. My posit is that Nigeria's economy can't afford the ripple effect the enforcement of the fine would impact on us presently. Agreed the telecommunication companies and NCC agreed on a specified amount for the fine. But looking at the reality on ground whereby the fine seems to be a killer measure rather a punitive measure for deterrent. Perhaps I wish the NCC can award MTN a huger cut, they will be doing this gesture to secure and sustain a looming direct Job loss, Vendor eviction, Engineering companies, and cuts in endorsement and social engagements that MTN involves in. The fine is almost 80% of it's revenue. That is not a reflection of a fine at all but a killer blow. We will be doing about 1million Nigerians a huge favour by lowering this fine. I think it's a lose lose situation. The fine holds, Nigerians suffer for it(job loss) and MTN's finance and image also suffers. But I think we need to think more about our brothers and sisters who might lose their jobs. We need to think about the entertainment sector, whereby a number of our stars are engaged by MTN. Don jazzy, Praiz, Chidinma, Kclimpopo to mention a few. This guys pays salaries to a number of staffs around them too. They will surely cut down should income drop. We can go on and on to engineering, mast maintenance, banking, call centres etc.
Let's #PLEAD4MTN for at least the sake of our friends, families and fellow Nigerians that work in the company, that the fine be reduced. We will be doing ourselves the favour.

Mtn does not deserve that, mtn automatically subscribed my 3lines for fashion, islamic and english updates yesterday. Totalling #150. That one no be thief?

Anyways let wait and see how it goes. Both parties should try and negotiate their terms because both party aren't going to win. I agree With u on the loss of job issues that ll arise. Lets hope things end up on a fair note. But also note that other companies and industries are watching.

lashane:


Having gone through this piece and with a deep thought. My posit is that Nigeria's economy can't afford the ripple effect the enforcement of the fine would impact on us presently. Agreed the telecommunication companies and NCC agreed on a specified amount for the fine. But looking at the reality on ground whereby the fine seems to be a killer measure rather a punitive measure for deterrent. Perhaps I wish the NCC can award MTN a huger cut, they will be doing this gesture to secure and sustain a looming direct Job loss, Vendor eviction, Engineering companies, and cuts in endorsement and social engagements that MTN involves in. The fine is almost 80% of it's revenue. That is not a reflection of a fine at all but a killer blow. We will be doing about 1million Nigerians a huge favour by lowering this fine. I think it's a lose lose situation. The fine holds, Nigerians suffer for it(job loss) and MTN's finance and image also suffers. But I think we need to think more about our brothers and sisters who might lose their jobs. We need to think about the entertainment sector, whereby a number of our stars are engaged by MTN. Don jazzy, Praiz, Chidinma, Kclimpopo to mention a few. This guys pays salaries to a number of staffs around them too. They will surely cut down should income drop. We can go on and on to engineering, mast maintenance, banking, call centres etc.
Let's #PLEAD4MTN for at least the sake of our friends, families and fellow Nigerians that work in the company, that the fine be reduced. We will be doing ourselves the favour.

lashane:

Having gone through this piece and with a deep thought. My posit is that Nigeria's economy can't afford the ripple effect the enforcement of the fine would impact on us presently. Agreed the telecommunication companies and NCC agreed on a specified amount for the fine. But looking at the reality on ground whereby the fine seems to be a killer measure rather a punitive measure for deterrent. Perhaps I wish the NCC can award MTN a huger cut, they will be doing this gesture to secure and sustain a looming direct Job loss, Vendor eviction, Engineering companies, and cuts in endorsement and social engagements that MTN involves in. The fine is almost 80% of it's revenue. That is not a reflection of a fine at all but a killer blow. We will be doing about 1million Nigerians a huge favour by lowering this fine. I think it's a lose lose situation. The fine holds, Nigerians suffer for it(job loss) and MTN's finance and image also suffers. But I think we need to think more about our brothers and sisters who might lose their jobs. We need to think about the entertainment sector, whereby a number of our stars are engaged by MTN. Don jazzy, Praiz, Chidinma, Kclimpopo to mention a few. This guys pays salaries to a number of staffs around them too. They will surely cut down should income drop. We can go on and on to engineering, mast maintenance, banking, call centres etc.
Let's #PLEAD4MTN for at least the sake of our friends, families and fellow Nigerians that work in the company, that the fine be reduced. We will be doing ourselves the favour.

I agree with you. The ripple effect is more than what the fine will bring to us as Nigerians.

In case MTN is here or reading this tread
Let them know that auto subscribing people
to their learn English or whatever they call
it is nonsense, even if you are looking
for money to pay fine, you dont have to resort to
stealing from us, so many nonsense promos
and unreasonable autorenewals.

As for pleading for MTN, NCC will do the needful
after putting all the cards on the table
into consideration... this i hope and believe.

NCC please be considerate, im personally saying this
because as an entrepreneur in this country,
its not YAM

please lets give them a little window
lets hope they learn their lesson

OP must be a Cc operator and is afraid of loosing his Job. So I understand the need for a campaign to help save your job and other millions of Nigerians that will be affected... and yes I agree, sanctioning MTN with that huge fine will definitely be a huge blow to our economy.. directly or indirectly because unemployment rate will definitely increase... NCC should jes be considerate abeg.. let's #PleadforMTN for the sake of our fellow Nigerians.

Thanks for your understanding guys. We need to preach it harder thou.

Saw this morning and thought I should share.

"I have already made my feelings known about the N1.04trillion fine. My point is that at long last in Nigeria, there is crime and there is punishment. Rules are meant to be obeyed, not to serve as a decoration. I commended President Muhammadu Buhari for taking regulation seriously. However, I asked the Nigerian Communications Commission (NCC) to temper justice with mercy because I believe the punishment is too heavy. With verbal and written apologies from MTN, which is technically an admission of guilt.
Now that MTN has gone to court, So what next? The NCC is staying action until the case is determined. When you have a tempered intellectual like Professor Umar Dambatta at the head of a government agency, you can expect such a cultured response. NCC has so far acted decently. I also suspect that the commission is restrained by the importance of MTN to Nigeria's economy. If you shut down MTN's operations today, a lot of things will go haywire, notably thousands of ATMs, bank transactions, and nearly half of Nigeria's mobile lines. Unknown to many Nigerians, it is MTN's ICT infrastructure that powers major businesses. NCC is dealing with a fly on the balls. It's delicate." - Simon Kolawole