MTN is a serial offender of regulations in nearly all the markets where they operate, the latest being Uganda.
The Uganda Communications Commission (UCC) has tasked mobile network provider, MTN to explain their non-compliance with licence obligations pertaining to “excessive tariffs and unfair competitive practices.
UCC has directed that MTN provide a detailed justification for all price changes implemented in the last 12 months for which MTN never notified the commission in advance.
The directive comes on the heels of thousands of complaints from subscribers across Uganda over MTN’s “very high prices and fast data depletion rates”.
Pending fines
MTN’s actions have been raised as grounds for huge fines or suspension and termination of their operation license.
According to the UCC letter directed to the MTN CEO and signed off by UCC Executive Director, Godfrey Mutabazi, MTN’s non-compliance is grounds “for suspension or termination of license”
The directive from the commission has asked MTN to comply in full by providing all information requested. “A preliminary assessment of the current pricing for your retail services indicates that there have been changes in your pricing of voice and data offerings. These changes were never communicated to the commission prior to their implementation” read the letter
Similar fines in Rwanda and Nigeria
UCC’s fining of MTN Uganda will not be the first penalty MTN is earning over unfair practices.
In May, The Rwanda Utilities Regulatory Authority fined MTN Rwanda, 7 billion francs ($8.5m) over non-compliance with licence obligations.
The fine related to directives issued by the regulator prohibiting the inclusion of MTN Rwanda in the MTN South and East Africa (SEA) IT hub based in Uganda.
MTN said in a statement a week later saying they had surprisingly acknowledged the fine.
While in October last year, a similar fine was imposed on MTN Nigeria. MTN Nigeria was fined a staggering $5.2 billion for failing to comply with the directives of the National Communication Commission (NCC).
MTN was fined for non-compliance with a deadline set by the NCC to disconnect all non-registered sim cards. MTN failed to comply despite being given a 12 month warning on the importance of ensuring that only SIM cards with valid SIM registration details should be active.
MTN has been known for controversies not only in Nigeria, Rwanda but also in Iran and lately Uganda. In 2012, MTN was also accused by the Uganda Revenue Authority over evading taxes.
Non-compliance on pricing regulations is the latest of the telecommunication company’s unending controversies that has seen UCC determined to make them pay the cost.