Compliance Monitoring and Enforcement Report
(Quarter 1 - 2020)

1. GUIDELINES ON SIM REPLACEMENT

   Consistent with the Commission’s mandate as enshrined in Section 89 of the NCA 2003, quarterly audit of MNOs’ platforms was conducted to ascertain level of compliance with the Guideline on SIM Replacement. The guideline on SIM Replacement which came into effect on the 9th of June 2017 guides against illegal SIM Swap by fraudulent individuals. This quarterly audit exercise therefore, is critical to bringing to the barest minimum the cases of fraudulent SIM Upgrade/Replacement.

   The Q1, 2020, audit exercise was carried out from March 10th-12th in Lagos State. The result of the investigation indicates that there is substantial reduction in fraudulent SIM Swaps due to operators’ compliance with the guideline.

2. OPERATORS’ PERFORMANCE OF THE MOBILE NUMBER PORTABILITY (MNP) SCHEME

   Consistent with CMED’s mandate to monitor all significant activities relating to the performance of all Stakeholders in the Mobile Number Portability (MNP) Scheme and given the need to ensure seamless porting processes with strict adherence to the MNP Regulations 2014 and the Business Rules & Port Order Processes, CMED has over the years carried out technical audit exercises of the MNP Platform on a quarterly basis. 1st Quarter (Q1), 2020 Audit of MNOs MNP performance/activities was carried out from 29th - 31st January, 2020.

   In line with the objectives of the exercise, the Audit team carried out a review of all MNOs planned/ unplanned technical faults that occurred for the period July – December, 2019 and it was observed that all MNOs had some incidents of connectivity issues with NPC which impacted on porting activities during the period under review. The audit verified that Validation Responses (T2) & Deactivation Responses (T4) Timer Violations by MNOs for the period July – December 2019 were due to technical faults not properly captured and reported by some operators. In addition, some reported violations were duplicate transactions

   The team also noted the implementation of directives issued to Interconnect Clearing House (ICN) by the Commission with regards to on-Demand Service Level Agreement, Display of rejection, error codes and partial Cooperate porting.

3. DIRECTION ON FORCEFUL /AUTOMATIC RENEWAL OF DATA SUBSCRIPTION AND ACTIVATION/SUBSCRIPTION TO DATA AND VALUE ADDED SERVICES

   Following the Commission’s Direction to Mobile Network Operators (MNOs) to dedicate the short code 2442 on all networks for use by subscribers to opt-in to the ‘’Do Not Disturb’’ database restricting unsolicited marketing messages (Voice and SMS) on their MSISDNs, the Compliance Monitoring and Enforcement Department (CMED) devised a strategy to monitor and ensure compliance with the Direction through a quarterly review of the performance of Mobile Network Operators’ (MNOs) DND facilities

   The Audit of DND was held between 4th and 6th March, 2020 and all the four (4) MNOs (EMTS, MTN, Airtel and GLO) were visited. All the MNOs were found to be substantially in compliance with the Direction on Forceful Subscription and hence significant reduction in Consumer complaints and unsolicited text messages.

4. REGULATORY INTERVENTION

   The following requests for regulatory intervention were received and appropriate actions taken:

   1. Appeal for Urgent Intervention to Prevent Destruction of MTN Shoreline Fiber Infrastructure by the National Inland Waterways Authority (NIWA).

      MTN Nigeria Communications PLC appealed for the Commission’s urgent intervention with regards to dredging activity intended to be carried out by Nigerian Inland Waterways Authority (NIWA) which poses a significant threat to its Shoreline Fiber Infrastructure. MTN claimed all attempts to engage NIWA on the matter proved futile hence, the call for mediation.

      Consequently, the Commission convened a meeting to mediate on the matter and it was resolved that NIWA will give necessary regulatory assistance to MTN to avoid damage to its infrastructure as a result of the dredging activities along the corridor and that MTN will engage formally with NIWA to address all pending obligations relating to NIWA.

   2. Inter-ministerial Review on Telecommunication Infrastructure Localization In Nigeria

      The Inter – Ministerial Committee on Telecommunication Infrastructure and Localization in Nigeria was set up in 2014 with membership drawn from Federal Ministry of Communication and Digital Economy, Federal Ministry of Environment, National Environmental Standards and Regulation Enforcement Agency (NESREA) and the Nigerian Communications Commission. The Inter-ministerial Committee is empowered to consider a compromise position of 7.5m where the 10m minimum setback stipulated in the National Environmental Standards for Telecommunications and Broadcast facilities Regulations 2011 issued by NESREA cannot be met.

      The Committee had earlier carried out site inspection on twenty-four (24) Base Transceiver Station (BTS) sites in 8 States and FCT to ensure that the sites qualify for the 7.5 Meters setback waiver that the Committee is statutorily allowed to grant. The Committee held a meeting in March to further deliberate and resolved not to grant the four (4) BTS sites that failed to meet the 7.5m setback.

      The Committee also discussed forty-one (41) new applications for waivers to build BTS sites against the 10 Meters regulatory requirement consisting of Thirty-eight (38) ATC Nigeria Wireless Infrastructure Limited BTS sites and three (3) IHS Nigeria Ltd BTS sites and agreed to visit the BTS sites.

   3. Request for Intervention on Alleged Outstanding Liabilities for Payments on Rights of Way (Row) deployed In Bayelsa State From 2005 – 2018

      The Bayelsa State Board of Internal Revenue (BSBIR) levied the sum of N2, 402,759,040 as outstanding RoW charges on MTN which MTN disputed. Consequently, the Commission intervened on the matter and it was resolved that MTN, BSBIR and Federal Ministry of Works and Housing (FMWH) would go on an inspection to ascertain Federal and State Government owned roads with respect to the payments made by MTN to FMWH and total distance of fibre cables deployed on the disputed routes.

   4. Unified demand notice on dislodging of effluent/air pollution rate (Telecommunication companies)

      Cross River State Ministry of Environment issued a demand notice for air/effluent pollution in the sum of Sixty Million Naira (60,000,000:00) only for a three (3) year period from 2017 – 2019 based on which MTN requested for regulatory intervention from the NCC. The Commission initiated to meet with the Cross River Internal Revenue Service (CRIRS) and MTN as well as a separate meeting with the Commissioner of Environment. The CSRIR agreed amongst other things to review its position on the demand notice and engage better with telecommunications service providers as development partners. The Honorable Commissioner also agreed to engage with IHS to resolve issues where the need arises and further liaise with the Commission.

   5. Establishment of Kogi State Utility Infrastructure Management and Compliance Agency (KUIMCA) and audit of utility infrastructure in Kogi State

      The Commission received a request for intervention from MTN to engage KUIMCA on the provisions of the Kogi State Utility Infrastructure Management and Compliance Agency (KUIMCA) Law, 2019 and its impact on the telecommunications Industry and its possible consequential effect of regulating telecommunications Infrastructure within Kogi State.

      The Commission met with KUIMCA and resolved to review sections of the KUIMCA law that are inconsistent with NCA, 2003 and the Constitution. It was further agreed that Mobile Network Operators will pay fees for Right of Way (RoW) to KUIMCA on State roads. Additionally, KUIMCA will only validate/regularize existing permits and not reissue new permits. It further agreed that no financial commitment is required from operators for revalidation/audit process

5. SANCTIONS ON THE ILLEGAL UTILIZATION OF THE 5.4GHZ FREQUENCY BAND

   Arising from the enforcement exercise carried out in year 2018 in respect of the illegal utilization of the 5.4GHz Spectrum Frequency by five (5) companies (Priority Communications, Entouche Networks, Futurecom, KKON Technologies & Spar) found to be utilizing 5.4GHz frequency band illegally. The aforementioned companies were charged to Court; however, they pleaded for leniency and requested for settlement out of Court. Following their plea, administrative fines of N5, 000,000.00 (Five Million Naira) only was respectively imposed on the companies. The deadline for payment was February 26, 2020. While some of the companies have effected full payment of the fine, some have proposed to pay on instalment basis

6. NATIONWIDE ENFORCEMENT AGAINST ILLEGAL USERS OF THE 5.4GHz FREQUENCY BAND IN BENIN, EDO STATE

   Following the nationwide monitoring exercise conducted by Spectrum Administration Department in respect of the 5.4GHz frequency band and the subsequent pre-enforcement publication in the national dailies in 2019, Management approval was granted to commence a nationwide enforcement exercise against the illegal and unauthorized users of the 5.4GHz frequency band.

   In this regard, the commission conducted enforcement exercise in Cross Rivers, Akwa-Ibom, Otukpa (Benue), Warri (Delta), Benin (Edo), Enugu (Enugu) and Owerri (Imo) respectively. Several arrests were made in Warri, Uyo, Calabar and Owerri as well as items confiscated and the cases were filed at the Nigerian Security and Civil Defense Corps (NSCDC) for investigation and possible prosecution

7. THE SALE OF FULLY ACTIVATED NEW SIM CARDS IN 14 MARKETS IN JIGAWA STATE

   The Commission received a security report from the NSCDC, Jigawa State Command, in respect of the prevalence and sale of fully activated SIM Cards in some major Markets across the State. The NSCDC had identified fourteen (14) markets where pre-registered SIM Cards are sold in various places across Jigawa State. The EVC granted approval for two (2) teams to carry out enforcement in some select markets from the 14 identified markets. The selected markets are located in Gumel and Hadejia Emirate Councils. Fifteen suspects were arrested and handed over to the NSCDC for further investigation and possible prosecution.

8. SETTLEMENT OF INDEBTNESS BY Ntel

   Ntel has outstanding financial obligations to fulfill to the Commission. In this regard, Ntel proposed to offset the liability on instalment basis and this has been accepted by the Commission. Ntel further requested for an extension of time to pay the debt and nine (9) months extension was granted.

9. REVIEW OF AIRTEL SANCTION ON FORCEFUL SUBSCRIPTION

   The Commission imposed sanction in the sum of Two Billion, Three Hundred and Ninety Seven Million, Eighty Four Thousand Naira only (N2, 397,084,000) on Airtel for its forceful subscription of 2,392, 084 MSISDNs into the VAS services on its network. Following the sanction, Airtel wrote to the Commission, requesting a downward review of the sanction based on CDR submission. Airtel’s submission was reviewed, and the Commission reduced the fine to Eight Hundred and Sixty Six Million, Eight Hundred and Forty Two Thousand Naira (N866, 842,000) only.