NCC clarifies directive on disconnection of networks due to interconnect debts

This assurance was given in Abuja by Mr. Sunday Dare, NCC’s executive commissioner for Stakeholder Management.Mr. Dare clarified that the approval given by the NCC was not for any network to disconnect subscribers as being wrongly presented in some media, but for some creditor networks to restrict services to debtor networks.

He stated that “the NCC is a consumer-centric regulator; the protection of our consumers and the sustainability of the industry are the primary drivers of our activities. So in this case, even before we granted the permission for disconnection, we had put some very stringent safety valves in place to protect consumers and ensure that they continue to enjoy uninterrupted service while we address the very serious issue of indebtedness in the industry”.

Giving a background to the issue of disconnection of networks, Mr. Dare stated that “over the years, the industry has been plagued with the very serious problem of interconnect and facility indebtedness.

Some operators have racked up huge debts to others and have simply refused to pay. Now, we understand that there are ecosystem issues affecting all operators and we are daily working with all Stakeholders to resolve these issues, but the level of indebtedness in the industry is at an embarrassingly high level, and the whole telecoms industry is at risk of failure if we do not act”.

He stated further “this kind of problem should ideally not occur in an industry where over 90% of consumers are pre-paid. We had held several meetings with the parties and given several deadlines for the debtors to pay, to no avail. The Nigerian Communications Act of 2003 contains very strict consumer protection measures which we have continued to uphold, such as the requirement that no operator can disconnect another operator without the written approval of the NCC.

“But it appears that some operators were taken unfair advantage of this provision by racking up millions, sometimes billions of naira in debts to other operators, denying their creditors of funds to expand their networks and putting the industry in peril. “Having done everything we could, including holding many meetings with the parties and brokering several payments plans to no avail, NCC has little choice in the matter but to grant the persistent requests of the creditor organisations to disconnect the chronic debtors in accordance with the Nigerian Communications Act and our Disconnection Regulations”, he said.

Further reassuring subscribers, Mr. Dare noted that “there are a number of inbuilt safety valves we are implementing to protect consumers. In the first place, we had published a notice alerting both the debtors and the general public of the impending order to approve disconnection. This was published in major newspapers a few weeks ago, and we hoped the debtors will regularize their position, but they did not. Under the law, the next step is to publish a pre-disconnection which we did earlier last week”.