UAE telecoms giant Etisalat has been whacked with a $2.25 million fine for poor service, dropped calls and dodgy line quality on mobile phones in Nigeria.
It may have been named the most powerful company in the UAE by Forbes this year - but Etisalat's been ordered to ring the changes in the most populated country in Africa.
Following a poor run of form in Nigeria, the country's Communications Commission has said Etisalat has until May 21 to stump up the cash or it will face further sanctions.
"The current penalties signal a new regime of quality of service management in the Nigerian telecommunications industry," a commission spokesperson said of Etisalat's fine.
The UAE giant, which has more than 12 million subscribers among Nigeria's 160 million people, responded by saying it expects to spend more than $500 million on upgrading its network there this year.
Etisalat's Nigeria division CEO, Steven Evans, blamed industry-wide difficulties such as a lack of reliable power, accidental damage to transmission lines and occasional sabotage for the failings.
"These factors are unique to the operating environment in Nigeria and pose a tough challenge for operators to deliver quality of service levels equal to that of other countries," Evans said.
Mobile phones, however, are a potential goldmine for service providers in Nigeria. With the state-run telephone company in the country having collapsed, landlines almost non-existent and electricity very scarce, Nigerians are almost entirely dependent on their mobiles for communicating.
"What we would like to see is the declaration of the telecommunications industry as a critical national infrastructure which would afford the industry and its facilities greater protection," added Evans.
The commission also ordered three other mobile operators - South Africa-based MTN, Bharti Airtel from India and local firm Globacom to pay fines totalling just over $5 million.
Etisalat and MTN were both hit with the heaviest levy - $2.25 million each.
© 7Days 2012
