MTN Nigeria: Should it Pay, Fight or Just Go Away?
2015.11.28   |   11 pages   |   NextGen Strategy Reports

Author:
Jon Newman


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MTN Nigeria has been fined a total of N1.04 trillion ($5.2 billion) by NCC, the Nigerian telecoms regulator, for failing to disconnect over five million unregistered SIMs from its network.  The fine is based on a charge of N200,000 ($1,005) per unregistered SIM, an amount that has been used as the basis of previous fines since 2011.

This paper deals with a relatively simple question (although it does not follow that the answer is simple).  Should MTN pay the fine, should it fight it, or would it be better for it to abandon Nigeria?  At what level of fine would it be better to continue to play a part in its (currently) largest market? 

Companies: MTN, NCC

Countries: Nigeria, South Africa

Keywords: Digital Transition, Market Capitalisation, Regulation, National Security, Investment, Share Price, SIM registration, Compliance Withdrawal, Fines,

 

MTN Nigeria: Should it Pay, Fight or Just Go Away?

1

 

Inferences and implications for Mobile Operators

1

 

Inference Dashboard

1

1

Supporting Research & Analysis

2

1.1

Context

2

1.2

Analysis

2

1.2.1

A Stark Choice

2

1.2.2

Withdrawal

2

1.2.3

Continuing in Nigeria

3

1.2.4

How Much Can MTN Afford?

4

1.2.5

What Should MTN Pay?

5

1.2.6

Why Should Nigeria Reconsider?

5

1.3

Research

7

1.3.1

Background & MTN Performance Prior to Fine

7

1.3.2

Summary Details of and Background to the Fine

9

1.3.3

Impact of the Fine on MTN

10

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