The Liberian Telecommunication Authority (LTA) has cracked the whip on the two leading GSM companies in Liberia, Lonestar Cell MTN and Orange, for which they each have been fined US$300,000.
These fines were as a result of what the LTA considers serious breaches and failure to provide key data that has huge revenue consequences.
In the press briefing held on Thursday, June 27, 2024, by the Ministry of Information, the Acting LTA Chairman Abdullah Kamara revealed several instances of regulatory violations that led to the companies being penalized.
From Kamara’s account of the violations, they centred on Floor Price regulations. According to the Complaint, both companies willingly engaged in a price undercutting process aiming to provide consumers with more minutes per dollar than the market permitted, thereby disrupting government revenue.
“These violations led to increased network traffic, deteriorating service quality, and declining revenue,” Kamara said.
He said it has negative impacts to the telecom structure such as network deterioration and job dismissals.
Kamara also noted down that when Floor Price regulations were introduced, they have helped to stabilize the sector by promoting revenues to boost the networks.
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However, he observed that there has been a recent upsurge of non-compliant pricing mechanisms among the telecom goliaths, leading to the re-emergence of market volatility and decreased government revenue.
“LTA had previously instructed both companies to introduce service packages within the prescribed Floor Price framework, but this directive has been disregarded,” Kamara said.
In this, he supported the board’s actions to impose penalties as a necessity that promotes compliance with regulations.
Additionally, Kamara disclosed another severe violation by Orange. This entity had launched three new communication links; two of them being international and the other local without informing the LTA. The agency said Orange’s action violates licensing agreements put in place.
Kamara regretted that this lapse had exposed a lacuna in the ability to scrutinize the sector closely, saying that all telecom operators must be consistent and clear in their message.
He emphasized that according to the LTA, the fines should force both Lonestar and Orange to immediately cease the negative practices that led to the fines and restore order and stability in the Liberian telecommunications market.
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