MTN is not only violating regulatory rules in Nigeria, as this has extended to Rwanda, where the South African Telecom giant yesterday landed itself a staggering 7 billion Francs ($8.5 million) fine from the Rwanda Utilities Regulatory Authority (RURA) over breach of regulatory directive.
Similarly, MTN had suffered similar casualty after the Nigerian Communications Commission (NCC), in October 2015, fined its Nigerian division a whopping N1.4 trillion for failure to disconnect unregistered sim cards in the country
The telecom regulator in Rwanda said in a ruling posted on its website in Kigali that MTN Rwanda was hosting its IT services hub outside Uganda, which contravenes the law.
“They are punished for relocating their IT services outside Rwanda, and this was deliberate,’’ Rwanda Utilities Regulatory Authority Spokesman Anthony Kulamba said.
“MTN Rwanda provided services in contravention of enforcement notice and directives issued by the regulator against hosting its IT services outside the country,” the statement read.
“By doing so, MTN Rwanda breached its license obligation requiring it to comply with all applicable laws, regulations and any other regulatory instruments issued by the competent authority.
“On May 4, 2017, the regulatory board of RURA conducted a hearing session in which MTN Rwanda was informed on the breach of its license obligations and given the opportunity to be heard, whereby MTN Rwanda admitted the above-mentioned breach.
“In accordance with the applicable laws, the regulatory board of RURA decided to impose on MTN Rwanda administrative fine of seven billion thirty million Rwanda Francs (7,030,000,000).”
While admitting the breach of its license obligation, MTN Group said: “MTN has been engaging with the regulator on this matter over the past four months. MTN Rwanda is currently studying the official notification and will continue to engage with the regulator on this matter.”