Sierra Leone fines telcos over call-card price hikes

Sierra Leone's telecom regulatory body, NATCOM, has slammed a US$50,000 fine on each of the country's two leading telcos, Zain (SL) and Africell.

According to NATCOM Public Affairs Manager Abdul Kuyateh, the two companies violated the Telecommunications Act 2006, which stressed notification of and approval by the commission in procedures to increase call card and tariff rates.

The mobile companies hiked the price of calling cards last week as a result of the government's newly introduced Goods and Services Tax (GST).

The increase raised protests by consumers, which prompted government officials and NATCOM to order that prices revert to previous rates until the legal issues are resolved.

"Despite the issuance of a public notice by the regulatory body, NATCOM, the two GSM operators failed to adhere to the notice but continued to exploit the people with an unlawful and unauthorized price increase," Kuyateh said. "NATCOM decided to penalize both Zain and Africell for refusing to revert to the old prices as approved by NATCOM."

Having vindicated another mobile player, Comium, for its prompt adherence to the notice, Kuyateh noted that NATCOM has written officially to the affected telcos to make its decision known but none of them has responded yet.

He added that "a short grace period" has been given for the payment of the fine. "If the two companies fail to pay their fine by Jan. 18, which is the stipulated date, further action will definitely be taken against them in accordance with the Act," he said, noting that a default may lead to suspension and subsequently cancellation of operating licence.

"Even though we always try to encourage investors in the country, we'll not tolerate any form of lawlessness and exploitation," Kuyateh said as he explained that the imposition of the GST could have been an acceptable reason for an increase in prices provided it was properly implemented.

Many Sierra Leoneans see this penalty as a welcome development, more so as it will be the first time, since the regulatory body's inception in 2006, to impose a strict punishment on any GSM company.

"This action is what Sierra Leoneans have been waiting for. It really shows that NATCOM has the interest of the public at heart," said Mariatu Kaindaneh, a civil servant.

Regarding reports that some dealers are still selling the cards at the inflated rate, Kuyateh said: "We are really closely monitoring the situation. All we'll continue to do is educate the public. I admonish those who are still trying to beat the system to desist from the habit as we'll not leave any stone unturned this time around."