By Gareth van Zyl
Johannesburg – The Nigerian Communications Commission (NCC) has approved the renewal of MTN’s digital mobile licence despite the regulator slapping the company with a $5.2bn fine.
MTN on Tuesday said the NCC has granted an extension to the mobile network’s operating spectrum in the 900MHz and 1 800MHz frequency bands along with its digital mobile licence which was issued in 2001.
The licence that was issued in 2001 had an expiry date of February 2016 but that has now been extended to August 31 2021.
“The sum of $94 225 152.75 is payable as a spectrum fee for the five-year extension period by no later than 31 December 2015 and conditional upon MTN fulfilling all its regulatory obligations,” said MTN in a market update.
Read also: Axe hovers above MTN’s R150m a year top 12 execs after $5.2bn Nigerian fine
“In February 2001, the NCC issued DML’s to three mobile operators. The licenses were bundled with spectrum in the 900MHz and 1800MHz frequency bands. Amongst other authorisations, MTN also holds a Unified Access License and a 3G Spectrum License through which it provides a full bouquet of digital services to its customers throughout Nigeria,” said the company.
However, the NCC’s extension of MTN’s licence comes after the same regulator this year hit the mobile network with a $5.2bn fine for not disconnecting up to five million unregistered SIM cards.
How much is $5bn? We break down amount Nigeria has fined telecom giant MTN for not cutting off unregistered users pic.twitter.com/FXyKqE1ic9
— BBC News Africa (@BBCAfrica) November 2, 2015
Subsequently, MTN’s share price has tumbled on the Johannesburg Stock Exchange (JSE) from a high of R192.45 on October 23 to R158.78 at the close of November 2.
The way that MTN made its announcement about the Nigerian fine last week Monday has also come under the spotlight from the JSE.
The JSE is looking into the timing of the MTN announcement after media reports about the fine circulated earlier in the day on October 26. Meanwhile, the stock exchange said on Friday that it’s also investigating possible insider trading at MTN by looking at trades that were made before the announcement.
In a week of high drama, the JSE also temporarily suspended trade in MTN shares on Monday, November 2 amid an unconfirmed media report in Nigeria that said the mobile network had paid the fine.
Read also: UPDATE: MTN shares resume trading. R60bn lost in market value.
Fin24
Source
http://www.fin24.com/Tech/Companies/Nigerian-regulator-extends-MTNs-942m-licence-20151103
From Reuters
JOHANNESBURG, Nov 3 (Reuters) – South Africa’s MTN on Tuesday said the Nigerian regulator has renewed its operating spectrum and extended the operating licence for Africa’s biggest mobile firm to 2021 at a cost of $94.2 million.
MTN, which had a $5.2 billion fine imposed on it by the Nigerian Communication Commission last week for failing to deregister SIM cards in its largest market, said it received confirmation from the regulator that its operating spectrum in the 900 MHz and 1800 MHz frequency bands had been renewed.
MTN’s operating spectrum and its digital mobile license were issued in 2001, and both were due to expire in February 2016. Both have now been extended to 31 August 2021, the firm said.
Read also: PIC “in talks”, upset MTN management didn’t anticipate $5bn Nigerian fine
“We view this extension as a demonstration of confidence in MTN’s capacity to continue to provide ground-breaking and innovative services to its customers,” MTN’s corporate affairs executive Akinwale Goodluck, said in a separate statement.
Shares in MTN, which earns 37 percent of its revenue from Nigeria, have dropped 25 percent since the fine was announced last week, and South Africa’s bourseon Monday suspended trading in its stock for a few hours.
The firm’s shares recovered somewhat in early trade on the bourse, advancing 0.9 percent to 149.50 rand by 0728 GMT.
The company’s largest shareholder, South Africa’s Public Investment Corporation, said it was concerned about MTN’s alleged non-compliance with telecommunications regulations of that country and the allegations that MTN’s management did not immediately disclose material information to the market.
