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Telecom giant MTN ‘in talks’ to resolve $5.2bn fine

Africa’s largest mobile operator on Monday said the Nigerian Communications Commission (NCC) imposed a fine on MTN Nigeria over the timing of the disconnection of 5.1 million subscribers in August and September, sending its shares tumbling.

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The Nigerian Communication Commission (NCC) has given MTN until November 16 to pay a $5.2 billion fine, or face the consequences.

“In addition, we have affirmed MTN’s Baa2 global issuer rating, the A1.za national scale issuer rating and the Baa2 rating on the senior unsecured notes issued by MTN (Mauritius) Investments Limited”, the agency said.

The company was fined Naira 200,000 ($1,005) for each unregistered subscriber. “And if there is a breach, we will apply the law”.

Before Monday’s sanction, MTN held three meetings with the regulator, during which authorities flagged Nigeria’s battle with Boko Haram insurgents and the need to register all subscribers or deactivate them, the sources said.

The fine follows complaints by MTN users in Nigeria – estimated to be around 62 million – who lamented about poor service and network issues.

The penalty saw the company’s shares crash on the Johannesburg Stock Exchange and raised questions about the renewal of its licence in Nigeria next year if the fine goes unpaid.

Although, the regulator is yet to come out with any statement on the matter, but Daily Sun reliably gathered that, from all indications, MTN may bow to the order or face more technical sanctions.

According to AFP, top-level talks kicked off in Abuja on Thursday between MTN, the NCC and officials from the Nigerian government in an effort to find a compromise solution.

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“If the situation will change in any way, then the government at the top will have to so direct. But for now, the mood is to apply the law”.

Tony-Ojobo