Nigeria Fines 4 Mobile Phone Carriers $7.3M

Regulators in Nigeria have fined four mobile phone carriers a total of $7.3 million over poor service in a nation that depends on cellular phones for communications.

The Nigeria Communications Commission's penalties hit Bharti Airtel Ltd. of India, Abu Dhabi-based Etisalat, local firm Globacom Ltd. and South Africa-based MTN Group Ltd., some of the dominant carriers in Africa's most populous nation. Etisalat and MTN must pay $2.25 million apiece, while Airtel faces a penalty of $1.68 million and Globacom faces a $1.125 million fine, said Reuben Muoka, a commission spokesman, on Sunday.

The fines come for poor service, dropped calls and bad line quality in March and April, Muoka said. The commission issued a statement Saturday saying that they decided to allow January and February to be a grace period for the companies to improve their services.

In October, the communications commission warned carriers it would begin fining them for poor service.

"The current penalties signal a new regime of quality of service management in the Nigerian telecommunications industry," the commission said.

The companies have until May 21 to pay the regulators or they will face further penalties.

MTN, long the dominant provider in Nigeria, has 41.1 million subscribers in the nation after 10 years of doing business there. MTN did not immediately respond to requests for comment.

Etisalat said in a statement it is committed to delivering quality service to more than 12 million subscribers in Nigeria, and expects to spend more than half a billion dollars on upgrading its network this year.

The CEO of Etisalat's Nigeria division, Steven Evans, blamed "the failure to hit some of the quality measures" in part on industrywide difficulties including a lack of reliable power, accidental damage to transmission lines and occasional sabotage.

Source Associated Press