Why MTN Conceded Defeat in NCC Case

It is no longer news that MTN Nigeria conceded defeat in the legal action it instituted against the Nigerian Communications Commission [NCC] by seeking out-of-court settlement last Friday.

The telecom operator had filed a suit against the N780 billion fine imposed on it by NCC for failing to disconnect unregistered subscribers on its network. The fine was originally N1.O4 trillion.

The Scent of Defeat
Even as MTN Nigeria filed the legal action against the NCC last December in a media show of bravado, there was a scent of defeat in the air.

Not only was its action a Declaration of War against its own regulator, it was also a Declaration of War against the Federal Republic of Nigeria. Two key elements, indeed, that placed a heavy burden on the shoulders of MTN and its retinue of Senior Advocates of Nigeria [SANs] legal team.

A little dose of wisdom could have told the management of MTN that winning such a legal battle was difficult, if not virtually impossible.

The operator could have won the battle, but still lose the war. In another sense, they could have also won the case in the short term but still go ahead and lose in the medium and long term, as long as they continue to operate in the Nigerian market.

It was a no-win situation for MTN Nigeria!

What Did MTN Gain?
At the weekend, concerned stakeholders were asking one key question: what did MTN gain by going to court against the NCC and then making a u-turn for out-of court settlement just after two court appearances? The answer was unanimous: Nothing-Absolutely Nothing!

A stakeholder said: “MTN gained nothing by its ill-advised action of taking the NCC to court over the fine.

The case was absolutely unwinnable for MTN. Unfortunately, the management of MTN allowed themselves to be cajoled, bamboozled and fleeced by self-serving lawyers who were more interested in milking MTN for their private pocket than taking them to the Promised Land.

At the end, MTN literally went on their knees begging for out-of-court settlement, which l consider humiliating and embarrassing for a big industry brand like MTN.”

A senior executive in another telecom operator told Business Journal: “The court action by MTN was a foolish act. MTN was simply going to war against its own regulator-it was simply untenable.

Thank God they realised their foolishness on time and beat a retreat. As a fellow operator, l would appeal to the NCC to pardon them and find a way to settle the matter amicably for industry stability and growth.”

The Way Forward
The way forward is peaceful settlement of the issue and return to stable relationship between the two [NCC and MTN].

If the NCC reduced the fine from N1.O4 trillion to N78O billion without court action, we believe they can also reduce it further through negotiation and mutual co-operation.

The legal action was not in the best interest of MTN Nigeria, NCC or the telecom industry.

Accordingly, the out-of-court settlement sought by MTN is the best option and will pave the way for friendly and fruitful settlement of the matter.

Hot this week

Stanbic IBTC Bank Nigeria PMI: Marked Growth of New Orders Seen Again in July

Growth was maintained in the Nigerian private sector during...

NAICOM: 43 Insurance/Re Firms Scale Recapitalisation Hurdle, 8 Awaiting Final Verification

The National Insurance Commission, today announced the successful completion...

NLNG Unveils 11 Nominees for The Nigeria Prize for Creative Arts

The first-ever nominees for The Nigeria Prize for Creative...

CBN Lists Five Strategies to Drive Next Stage of Fintech Growth in Nigeria

L-R:  Mr. Emmanuel Ovaga, MD/CEO, PufferPay Ltd; Sola Longe-Okenimkpe,...

NGX Chair: Exchange Adopting Fintech, Digital Solutions to Expand Market

L-R:  Mr. Emmanuel Ovaga, MD/CEO, PufferPay Ltd; Sola Longe-Okenimkpe,...

Topics

PenCom Unveils PenCare Initiative for Retirees Across Nigeria

The National Pension Commission (PenCom) has established the PenCare...

Union Bank Sets Up Mini Branch at Lagos Trade Fair

Following the recent unveiling of Union Bank’s new identity and in its bid to make banking simpler and smarter for customers and prospects, the Bank has announced that it is participating in the 2015 edition of the Lagos International Trade Fair to showcase its simpler and smarter banking solutions and also its rebranded service delivery.

Greater PH, Masta Services to Build Airport City Housing Project

L-R: EMMA OKAS WIKE – CHAIRMAN, BOARD COMMITTEE ON...

UBA: N11tr Total Assets, N201bn Profit, 90kobo Dividend in 2022

  Oliver Alawuba Group Managing Director/CEO UBA Plc Africa’s Global Bank, United Bank...

Public Voting Commences for NHEA 2025 Nominees

Moses Braimah NHEA Director, Marketing, Communication & Strategy The countdown...

How NCC’s Strategic Management Plan Will Drive Digital Economy

 Professor Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission The Honourable Minister of...

Survey Xrays World of Young Entrepreneurs in Africa

The Entrepreneurship Survey is based on an emailed questionnaire...

Lloyd’s Launches Crypto-currency Wallet Insurance Policy

Lloyd’s has launched a insurance policy to protect crypto-currency...