Friday, February 19, 2010

Mike Adenuga in Legal Battle with MTN & NCC over Interconnectivity Default

All does not seem to be smooth with principal players in the Nigeria's telecommunication sector, just as the business mogul, Chairman of Globacom, Dr. Mike Adenuga dragged MTN Nigeria Communications Limited and the sector regulatory body, the Nigerian Communications Commission (NCC) before a Federal High Court sitting in Lagos over what he explained as unjust treatment in the way and manner the regulatory agency handled the interconnectivity agreement dispute between the 2 telecommunication giants, (Globalcom and MTN). The case was presided over by Justice Lambo Akanbi.

How it started and the role of NCC gathered that the contentious agreement was said to have been entered into by the two telecommunication company sometime in 2003. Under Clause 6.5 of the agreement, it was said that the two telecommunications firms agreed that no party shall invoice for a call later than 60 days after the actual call date. However, according to claims made by Globacom, MTN in clear violation of the clause, made a claim of over N1 billion allegedly being unpaid supplementary invoices issued by MTN to Globacom. In line vein with the alleged dispute generated by the development, NCC was said to have constituted an Arbitration Panel to carefully look into the dispute, which eventually directed Globacom to pay MTN N856 million both as supplementary invoices for calls terminated on MTN's network by Globacom and sum admitted. The panel also stated clear that Globacom should pay the sum within 30 days of the ruling, failure of which the sum would accrue interest till liquidation. Apparently dissatisfied by the panel's decision, Globacom is urged the court to set aside the decision of the panel, insisting that the ruling was a grave miscarriage of justice in that the panel failed to make specific findings on basic matters in the controversy between the parties in question.


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