The Star Late Edition

DISCONNECT­ION DISRUPTION

Licence suspension held off

- Asha Speckman

MTN has won a stay order in civil court to prevent suspension of its Liberian operations

❚❚ MTN HAD won a “stay order” in the civil court in Monrovia, Liberia, that would prevent the Liberia Telecommun­ications Authority (LTA) from suspending its operating licence in that country, Africa’s largest cellphone operator said yesterday.

On May 22, the regulator ordered MTN Liberia to reconnect rival Comium “with immediate effect” or its operating licence would be suspended for two weeks.

The Liberian unit had disconnect­ed the interconne­ction on the trunk network between the two firms on May 18.

South Africa-based MTN Group, the parent company, said yesterday that it had disconnect­ed Comium for failing to pay interconne­ction fees for more than a year.

MTN Liberia, trading under the Lonestar Cell brand, has a market share of 54 percent in Liberia. The firm said it would engage the Liberian telecoms regulator to find a resolution.

“Lonestar Cell MTN remains committed to engage with the LTA to establish the meaning and terms of the suspension with a view to resolving the impasse,” it said.

Paul Norman, the group chief human resources and corporate affairs officer, said that Comium owed in excess of $500 000 (R4.2 million).

“On May 22, 2012 they paid $200 000 towards their debt, with a post-dated check for an additional $100 000 that is maturing (today). Further, Comium has made arrangemen­ts to pay the balance in instalment­s,” Norman said.

MTN inherited its Liberia operations when it bought Investcom 15 years ago. It holds more than half of the market share. Four other operators share the balance.

MTN has just more than 1 million Liberian subscriber­s.

Spiwe Chireka, a telecoms analyst, said Liberia was a tiny market in the MTN stable although it did contribute to group revenue.

“This just shows what a challengin­g business environmen­t Africa is,” she added.

The stay order is a reprieve for MTN, which is battling attacks on various fronts over allegation­s that it acted improperly in obtaining its licence to operate in Iran.

The Hawks, a special investigat­ive unit of the SAPS, confirmed yesterday that it was acting on a complaint filed by the DA.

It would investigat­e allegation­s that MTN Irancell had obtained its telecoms licence in Iran via corrupt and improper methods.

MTN told the Sapa news agency that it would co-operate fully with the Hawks.

The run-in with the Liberian regulator is not the first.

In January, the LTA slapped a fine of $500 000 on MTN Liberia, formerly Lonestar Communicat­ions, for “negligence and omission on the part of the Lonestar management” which led to an outage on the MTN network on November 7 last year.

Following an investigat­ion of two months, the LTA ordered MTN to pay the fine within a week and give all its subscriber­s four hours of free call time on a day to be determined by the regulator.

MTN said the outage was caused by an “unpreceden­ted volume of calls at a base station provisione­d to handle traffic in parts of the Monrovia network coverage area”.

Norman said: “Lonestar Cell MTN is still in negotiatio­ns with the regulator and the Ministry of Justice to try and find an amicable solution on this issue.”

Meanwhile, MTN’s former chief executive, Phuthuma Nhleko, has reiterated no bribes were paid in acquiring an operating licence in Iran as the Hawks announced closer scrutiny of allegation­s of corruption by the cellular giant.

“I repeat that during my tenure as the chief executive of MTN no bribes were approved or paid with my consent or the consent of the MTN Group. Further, neither the MTN Group nor I were in a position to influence or fetter the decisions and foreign policy of the South African government, and we did not do so,” Nhleko said.

He said Turkcell was using the media to publish far-fetched allegation­s based on contradict­ory and inconsiste­nt evidence, given on deposition in the US by disgruntle­d former employee Chris Kilowan.

Nhleko said the allegation­s were being made “inexplicab­ly for the first time in almost seven years” after the licence was issued in Iran. The allegation­s were “entirely without substance and have been made recklessly and irresponsi­bly by an aggrieved competitor”.

He added: “The allegation that the MTN Group was pervaded by a culture of ‘extensive corruption’ is scurrilous and untrue. I remain willing to assist MTN and South African law enforcemen­t agencies in rebutting the false claims and allegation­s made by Turkcell.”

The Hawks are investigat­ing the allegation­s.

On the JSE yesterday, MTN added 0.66 percent to R135.29.

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 ?? PHOTO: REUTERS ?? Share price, rand
142
136
130
Apr
Mar 8-Jun 6
Close R135.29
May
Jun
Source: Bloomberg
MTN offices in Johannesbu­rg. The group is in talks with the Liberian telecoms regulator to resolve a dispute with a rival.
PHOTO: REUTERS Share price, rand 142 136 130 Apr Mar 8-Jun 6 Close R135.29 May Jun Source: Bloomberg MTN offices in Johannesbu­rg. The group is in talks with the Liberian telecoms regulator to resolve a dispute with a rival.

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