NCC orders cellcos to pay compensation to subscribers

4 Mar 2008

The Nigerian Communications Commission (NCC) has ordered cellcos MTN Nigeria and Celtel Nigeria to pay a total of NGN4.7 billion (USD40.88 million) to subscribers for poor quality of service. The two are deemed to have failed key performance measures set by the NCC in the wake of years of complaints by users regarding network congestion and dropped calls. The problems have been caused by the operators taking on far more subscribers than their respective infrastructures could cope with, says the NCC. The two GSM operators are to pay NGN175 to each of its active subscribers as at end of January 2008, in the form of an airtime credit. A breakdown of the figures by the regulator shows that MTN needs to compensate 15.87 million subscribers, while Celtel must credit 11.1 million users, making a total payout of NGN4.7 billion. Globacom, which is also subject to the NCC’s performance tests, is said to have performed satisfactorily in January, and has not been ordered to credit its users.