July 01, 2004

MTN and Sharp Profits!

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Two weeks ago, students in Enugu publicly demonstrated against the practices of the GSM firm – MTN, following increases in the cost of the firm’s recharge cards.

Across the country, MTN recharge cards have become scarce commodities.  MTN sends out text messages to its customers asking them to insist on paying the right price for its cards or to purchase directly from its authorized agents.  Yet the authorized agents do not have MTN cards to sell to the public.  And vendors insist that they cannot sell below the high cost of purchase from MTN.

It is sad that the NCC – the telecoms regulators, has failed (as it often does), to intervene in this matter in the interest of consumers.

While consumers may have lots of complaints against several of the GSM firms, the complaints of consumers against MTN is overwhelming.  In civilized countries where the telecoms regulators work in the interest of their people, steps would have been taken to halt the apparent rip-off and exploitation going on in Nigeria.

When owing to public pressure, per second billing was introduced, MTN quickly switched off the service after only a few days, pleading overload of its per second platform.  Worse still it increased its rates for booster card and business time customers, by wiping off its off-peak rates.  So in a way, the per second agitation provided MTN its first opportunity to increase its rates, without the NCC caring.

Today, MTN claims it is working to introduce a new system of mobile phone recharge.  Well and good.  The question however, is what steps it is taking to ensure that the existing system of recharge does not inflict hardship on its way out, especially in the rural areas where we have not been told how this sophisticated new recharge system will work.  It would seem that MTN has begun to withdraw its recharge charge card system, by increasing  its cost and decreasing supply.  This of course means more profit.

MTN as we all know must use Nigeria, to catch up with its African competitor and compatriot company – Vodacom.

CRP calls on NCC to wake up and honestly discharge its functions.  The practices of all telecom operators must be closely monitored and standards enforced.  Erring operators must be sanctioned and NCC should convince Nigerians that it has the courage to do this.

Just as the Central Bank has acted to force erring MDs and Chairmen of banks to resign, NCC must ask recalcitrant MDs and Chairmen of GSM firms and telecom operators to resign or even leave the country should they continue in their stubborn refusal to comply with NCC directives and standards.

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