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.

spot_img
spot_img
spot_img
spot_img
spot_img

Hot this week

2027: Media Can Obtain, Announce Election Results-Agbakoba

Chairman of the 10th Annual Conference of the Guild...

CAMCONIA to Strengthen Partnership with NAIPE to Drive Insurance Growth, Penetration

Being text of the goodwill message by Mr. Bankole...

CIIN Unveils Youth Mentorship Program to Develop Next Generation of Insurance Professionals

Chartered Insurance Institute of Nigeria (CIIN), in partnership with...

AXA Mansard Health: Accessible Healthcare is the Foundation for Productivity, National Prosperity

AXA Mansard Health has reiterated the critical link between...

Stanbic IBTC Bank PMI: Strongest Growth of Output Since February 2022

September data signalled strengthening growth momentum in Nigeria's private...

Topics

Sovereign Trust Insurance Settles N2bn Claims in H1 2024

Sovereign Trust Insurance Plc has shown its commitment to...

Samsung, Apple Push Healthcare Market to $3bn by 2019

Healthcare focused smartphone interfaces launched by Samsung and Apple...

Stanbic IBTC Bank Partners CIG Motors to Facilitate Affordable Vehicle Ownership

In a significant development for individuals looking to acquire...

Sterling Bank: N175bn Gross Earnings, N21bn Profit, 15kobo Dividend in 2022

The shareholders of one of Africa's fastest growing companies,...

$1tn Economy: CBN, BOI, UBA, NDIC Set for FICAN 2024 Conference

The Nigeria Deposit Insurance Corporation (NDIC), the Central Bank...

Nigeria Missing in Global Quality of Living Ranking

Despite increased political and financial volatility in South Africa,...

Airlines May Burn $61bn Cash Reserves in 2nd Qtr over COVID-19

The International Air Transport Association (IATA) published new analysis...

Zenith Bank: Mixed Bag of Decline, Strong Growth in H1

Ebenezer Onyeagwu MD/CEO Zenith Bank Plc The 2020 half-year (H1) financial report...
spot_img

Related Articles

Popular Categories

spot_imgspot_img