Mtn sanctioned for delay of deactivation of unregistered sim cards

Nigeria has placed a record $5.2bn fine on telecommunications service, mtn, for failing to register users, raising concerns that regulations are being tightened to compensate for a budget shortfall.

he unprecedented fine has already caused a 16% drop in the share price of MTN, Africa’s largest mobile phone company, and threatens the firm’s future in Nigeria, its biggest and most profitable market.

Nigerian regulators accused MTN of failing to deactivate unregistered sim cards in a timely manner, and argue that the fine is designed “to ensure that the wilful non-compliance ceases”.

Unregistered sim cards are seen as a major security threat by the Nigerian government, which is concerned that anonymous numbers facilitate terrorism and crime.

Source: The Guardian