Nigeria: MTN license renewed despite 5.2 billion fine
Date
11/4/2015 6:42:32 AM
(MENAFN- The Journal Of Turkish Weekly) The Nigerian Communications Commission (NCC) has approved the renewal of South African MTN group's license to operate in the country after fining it $5.2 billion.
MTN which began operations in 1994 now has networks in 22 African countries as well as in Asia and the Middle East.
“The NCC has approved the renewal and consequent extension of the tenure of MTN’s operating spectrum in the 900MHz and 1800MHz frequency bands” MTN said in a statement late on Tuesday.
MTN said its operating spectrum and Digital Mobile Licenses (DML) which were issued in 2001 were due to expire on 31 August 2021 but have now been extended to August 31 2021.
On Oct. 26 Nigeria’s Communications Commission (NCC) fined MTN for $5.2 billion for failing to meet a deadline to disconnect unregistered subscribers.
The NCC says MTN has until November 16 to pay the fine. The commission said in a statement that unregistered SIM card use was linked to terrorism.
On Monday the Johannesburg Stock Exchange (JSE) suspended trading in all shares of MTN after it had failed to make a timely regulatory news announcement when it was hit with the $5.2 billion fine by Nigerian authorities.
"The JSE has halted all trading on MTN Group Limited. Trading will resume as soon as MTN Group Limited has issued a SENS [regulatory news] announcement" the statement said.
Regulatory news announcements must be made punctually by all companies that are listed on a stock exchange so that traders and shareholders are officially informed of the events.
MTN'S share price has been under pressure since the Nigerian regulators issued the fine. On Monday its shares lost 8 percent on the JSE after media reports suggested the telecoms giant had agreed to pay the hefty fine.
The telecoms giant has now resumed trading on the JSE and analysts expect the price of its shares to increase now that its license to operate in NIgeria has been renewed.
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