Illegal Telecoms Operators, Threat to GDP Growth, Says NCC

Emma Okonji

The Nigerian Communications Commission (NCC) has warned that the gains of the $68 billion telecoms contribution to Gross Domestic Product (GDP) in the last 16 years of GSM operations may be eroded if the sharp practices of illegal telecoms operators are not checked.

Principal Manager, Enforcement Unit, Compliance Monitoring and Enforcement Department at NCC, Mr. Emeka Obi, gave the warning in Lagos yesterday during a clampdown exercise on illegal Automated Vehicle Tracking Services (AVTS), otherwise known as car trackers.

According to him, their activities do not only create poor service quality on the vehicle tracking network, but also divert government revenue. Obi said: “If this is not checked and nipped in the bud, it will negatively impact on telecoms contribution to GDP.

“The telecoms sector contributes significantly to the country’s GDP and when some companies are operating illegally without contributing their quota in terms of payment of taxes and other dues to the authorities, then the sector’s contribution to the nation’s GDP is threatened. Although it is difficult to quantify the economic losses to illegal car-tracking, but we know that when people are doing business illegally, the economy suffers.”

Zonal Controller in charge of Lagos Zone at NCC, Mr. Kenneth Uzoekwe, who briefed journalists shortly after the clampdown, said the essence of the raid was to address non-compliance level among AVTS operators in the country, who had over time, been operating without licences and with impunity, thereby robbing government of huge sum of money.

“By their illegal activities, they disrupt the network because they cause interferences on the networks of other licensees and this kind of illegal practice also affect the quality of service deliveries by the operators,” Uzoekwe said.

According to Obi, NCC discovered over 50 illegal operators in the AVTS segment of the telecoms sector, and that between 13 and 18, out of the 50 were licensed but without valid licences, since their licences have expired.
“After we issued pre-enforcement notice, those with expired licences came to us to initiate the process of renewal. Why some without licences also came to us to initiate the process of getting licence. The ones we clamped down are the remaining operators who have expired licence and those without licence at all, and the commission is mandated to ensure that they comply.

“One of the mandates of the commission is to ensure fair competition and promote investment in the telecoms sector. So any operator found wanting, will be prosecuted and convicted.
“Upon conviction, the operator will be liable for a fine or imprisonment or both. We started the clampdown in Lagos on Tuesday this week and we have shutdown five illegal operators in Lagos and the raid will be continuous,” Obi said.

He further warned illegal operators to ratify their operational licences or face the arm of the law.
Obi also advised vehicle owners to patronise only licenced AVTS operators that are operating genuinely, and explained that the data of all licenced AVTS operators is on the NCC website. He said customers could also call the NCC toll-free line and make enquiries about genuine operators or could even walk into any of the NCC zonal offices to make enquiries.

“Most vehicle owners probably do not take into cognisance that they have to check the legality of the operations of the operator they want to patronise first, and that is why we are asking them to seek information from the commission. They are not liable, but the car-tracking firms operating illegally are those we hold responsible because they are our licensees. The vehicle owners are only running at a risk,” Obi said.

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