Data Renewal: NCC Slams N2.8bn Fines On Telcos

Aitel to cough up N2.39bn

• MTN, Glo to pay N396.9m

• Firms accused of forcefully subscribing customers

The Nigerian Communications Commission (NCC) has fined three mobile network operators, Airtel, MTN and Globacom a sum of N2,794,022,000.

New Telegraph learnt that the telecom operators incurred the wrath of the regulator having contravened the rule that bars them from automatically renewing data for their customers.

This came as one of the heaviest sanctions against the operators in recent time after the 2016 landmark fine against MTN.

The Commission had, on May 21, 2018, issued a directive to all network providers to desist from carrying out automatic or unwarranted renewal of data packages without their subscribers’ consent or risk N5 million fine.

The telecom regulator said the directive became imperative in view of the mounting complaints from subscribers against the service providers for forcefully subscribing for them while they have no intention of doing so.

According to NCC in its latest Compliance Monitoring and Enforcement report, a recent audit of the networks revealed that the three operators forcefully subscribed some customers to Data and Value Added Services in contravention of the Commission’s Direction on Forceful Subscription.

With this discovery, the regulator said the operators were communicated on the implication of their actions and were asked to refund the affected subscribers.

Subsequently, the Commission said each of the operators have been written a letter stating their fines.

From the report, Airtel may have committed the infraction on large number of subscribers as the telco is to pay the largest chunk of the total fine.

According to NCC, Airtel is to pay a fine of N2.3 billion, while MTN and Globacom are to pay N164.3 million and N232.5 million respectively.

“During an audit exercise carried out by the Commission from September 25-28, 2019, it was discovered that Airtel, MTN and Globacom forcefully subscribed some customers to Data and Value Added Services in contravention of the Commission’s Direction on Forceful Subscription.

“A letter was sent to the MNOs (Airtel, MTN and Globacom) directing that they make the required refunds before September 27, 2019 and also furnish the Commission with the details on or before October 4, 2019,” the Commission stated in its enforcement report.

“Checks revealed that some refunds have been effected by the operators along with forwarded documentation. While the letters conveying the fines, which include Airtel – N2,397,084,000; MTN – N164,362,000 and Globacom – N232,576,000, have been sent,” the regulator stated.

Speaking at a recent forum, the Director of Enforcement and Compliance Monitoring at NCC, Mr. Efosa Idehen, said the regulator had observed infractions in the area of data auto-renewal and was investigating it.

“Automatic renewal of data is an illegality and we are looking into it. Very soon, you will see us take action,” he had said.

Executive Vice Chairman of the NCC, Prof. Umar Danbatta, had also noted that aside the N5 million fine that awaits violation of the auto-renewal directive, every day that the commission issues the sanction and the fine was not paid by the service provider, it would attract additional N500,000.

“We have also directed that no mobile service providers should impose their services to consumers. It is expected that they should obtain their consent.

“There should be a written text by the network provider to the consumer requesting to know whether the consumer is interested in renewing the package, after that, the network provider must also repeat the process to ensure that the consumer understood the terms and conditions of the service and has given consent before automatic renewal.

“In a situation where the commission receives complaints from the consumer that he or she was short-changed, the Commission will take it up on behalf of the consumer because that will be a violation of directive,” Danbatta said.