'Telecoms giant could lose license if fine is not paid' - report

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October 29, 2015 1:52 PM

Since news of the fine broke, MTN Group's shares have dropped about 19% in Johannesburg, the biggest three-day drop the company has experienced since 2008.

Sifiso Dabengwa has resigned from his position as CEO of MTN Group

Reports reveal that MTN Nigeria’s license renewal could face uncertainty if the company doesn’t pay the $5.2 billion fine imposed on it for failing to disconnect customers with unregistered SIM card.

“I can’t say what will happen if payment is not made,”Tony Ojobo, spokesman for the Nigerian Communications Commission, said according to a report by Bloomberg. “When we get to that bridge, we will cross it.”

Since news of the fine broke, MTN Group's shares have dropped about 19% in Johannesburg, the biggest three-day drop the company has experienced since 2008.

READ: Telecoms giant loses in $4.7 billion in value after NCC fine

The telecoms giant announced that on October 26 that the NCC was seeking the penalties because it missed the deadline to disconnect about 5.1 million subscribers on its service who had not registered their SIM cards properly.

Bloomberg further reports that MTN senior executives are in Nigeria at the moment to discuss with the NCC and could consider making changes to senior local management.

Lulu Mguni, South Africa’s high commissioner in Lagos also affirmed that she is in talks with MTN on how to assist, the report said.

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