| Nigeria: Court rejects case brought by MTN and Celtel |
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| Tuesday, 25 March 2008 | |
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The legal efforts of MTN and Celtel to avoid paying NCC-imposed (Nigerian Communications Commission) compensation to subscribers for poor service quality were dismissed by a Federal High Court for lack of merit and insufficient grounds. MTN and Celtel requested an injunction to restrain the NCC from implementing its directive that requires the two GSM operators to pay US$ 1.52 (N175) per subscriber for the month of January 2008 for not meeting the regulator’s quality of service key performance indicators. The court determined that MTN and Celtel failed to show that special circumstances existed that required the relief being sought. On January 9, 2008, the NCC won a case instituted by the two operators who were protesting notices on payment of compensation to subscribers issued September 19-20, 2007. On February 28, following this ruling in favour of the NCC, the Commission issued a directive to MTN and Celtel to pay compensation of US$ 1.52 per subscriber for the month of January 2008. The NCC said the two operators failed to meet the requirement to achieve Traffic Channel Congestion levels below 10% for the month of January. The NCC directed the operators to compensate all active subscribers using an airtime credit. The regulator also directed that no time limitation could be placed on the utilization of the airtime credit. All active subscribers are to receive their credit between March 1, 2008 and April 15, 2008. Source: Vanguard - WDR/Intelecon Regulatory News. |