MTN negotiating $5.2b fine for security failure

11/22/2015 MTNnegotiating$5.2bfineforsecurityfailuretodeactivateunregisteredsubscribers|TechChannelMEA
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MTNnegotiating$5.2bfineforsecurityfailuretodeactivateunregisteredsubscribers
Source: ArunShankar
Publishdate: 03Nov2015 Print Email
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Trading ofMTNshares resumed on 3 November afterfallingsharplyon2Novemberandbeingsuspendedfortrading by Johannesburg Stock Exchange. Theannouncementfollowsa$5.2billionfinelevelledagainstMTN Nigeria by the Nigerian CommunicationsCommission over alleged delay in disconnection ofunregisteredSIMcards.
On26October2015,MTNreleasedanofficialstatementadvisingshareholdersthattheNigerianCommunicationsCommission has imposed a fine equivalent to $5.2billiononMTNNigeria.Accordingtothestatement,thefine relates to the timing of the disconnection of 5.1million MTN Nigeria subscribers who were
TradingofMTNsharesresumedon3Novemberafterfallingsharplyon2NovemberandbeingsuspendedfortradingbyJohannesburgStockExchange.(SourceGoogleFinanceUK)
TradingofMTNsharesweresuspendedon2NovemberatJohannesburgExchangewhenpricefellmorethan6%followingannouncementoffineforfailuretocomplywithsecurityrequirementofdeactivatingunregisteredsubscribers.
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disconnectedinAugustandSeptember2015andisbasedonafineof200,000NigerianNairafor each unregistered subscriber. The statement also said that MTN Nigeria is currently indiscussionswiththeCommissiontoresolvethematterinrecognitionofthecircumstancesthatprevailedwithregardtothesesubscribers.
Subsequenttotheinitialannouncement,astatementwasmadeon30October2015,advisingtheshareholders to exercise caution when dealing in MTN securities until further notice. Thecompanysaid that theGroupCEOisengagingwith theNigerianauthoritieson the regulatoryaspects of the matter. In addition, senior management of the company and its advisors arecurrentlyengagingwiththeJohannesburgStockExchangeonthetimingoftheStockExchangeNewsServiceannouncement.
On 2 November 2015, MTN released another statement which says shareholders shouldspecifically exercise cautionwhen reacting to information on thismatterwhich has not beenreleased by the company. Shareholders are therefore advised to continue to exercise cautionwhendealinginthecompanyssecuritiesuntilafurtherannouncementismade.
TheregistrationofphonesubscribersintheFederalRepublicofNigeriacommencedonMarch28,2011.TheregistrationofexistingSIMcardsofficiallyendedinJanuary2012.OthertelecomplayersinNigeriaincludeAirtel,EtisalatandGlo.
AccordingtoTechCentralon2November,MTNisalsofacingaprobebyJohannessburgStockExchangeintopossibleinsidertradingrelatedtothetimingofitsfirststatementtoshareholdersabouttheNigerianCommunicationsCommissionimposedfine.
30 day trend in MTN share price, where the first dip occurred before 26 October, whenMTN announced theimposition of $5.2 billion fine by Nigerian Communications Commission for failure to disconnect 5.1 millionunregisteredsubscribers.(SourceJohannesburgStockExchange)
30 day trend in MTN share price, where the first dip occurred before 26 October, whenMTN announced theimposition of $5.2 billion fine by Nigerian Communications Commission for failure to disconnect 5.1 millionunregisteredsubscribers.(SourceMTN)
http://66.8.16.130/SENS_20151030_S364114.pdfhttp://66.8.16.130/SENS_20151102_S364209.pdfhttps://www.mtn.com/Investors/Shareholders/Pages/Sharepriceandcharts.aspxhttps://www.google.co.uk/finance?q=JSE%3AMTN&ei=mk83VoHnMYGnUqn7poABhttp://www.techcentral.co.za/jse-halts-trading-in-mtn-shares/60955/https://www.mtn.com/Pages/Home.aspx

SummaryofMTNstockinformationclosing2November.(SourceMTN)
TheNigerianCommunicationsCommissionwebsiteliststheobjectivesofSIMregistration.Excerpts.
Toassistsecurityagenciesinresolvingcrimesandbyextensiontoenhancethesecurityofthestate.
TofacilitatethecollationofdatabytheCommissionaboutphoneusageinNigeria.
Toenableoperatorstohaveapredictableprofileabouttheusersintheirnetworks.
To enable the commission to effectively implement other value added services like NumberPortabilityamongothers.
ASIMcardisthecardissuedbymobilephoneoperatorswhichprovidestheindividualuserwiththeappropriatenumberrecognisedbythatnetwork.Asubscriberinsertsthecardintohisorhermobilephonetoaccessthemobilephonenetwork.SincethelaunchofGSMservicesinNigeriain 2001, SIM cards were offered to subscribers without the requirement to provide properidentificationbytheusers.Sometimeinearly2008,securityagenciesapproachedTheNigerianCommunicationsCommissiontoassistinresolvingcrimesperpetratedthroughtheuseofphonesinwhichcriminalelementscannotbeidentifiedwiththenumberofthephonesthattheyused.
Consequently,theCommissionheldaconsultativeforuminvolvingvarioustelecomsoperators,consumer groups, security agencies, telecoms associations, dealers, the Nigerian IdentityManagementCommission,NationalPopulationCommission,NationalCensusCommission,themediaandahostofothers.
All theparticipantsagreed that it isappropriateandnecessary to registerphoneusers in thecountry.AnothercommitteewasthensetuptofurtherlookatthedetailsoftheimplementationoftheregistrationprogrammeandsubmititsrecommendationstotheNigerianCommunicationsCommission.
Upon reviewing the recommendations of the committee, the Board of the NigerianCommun