Why NIGCOMSAT can't own telecoms licence, by NCC January 30, 2008 | posted by Mobolaji Aluko (Archives)

 

GUARDIAN

Wednesday, January 30, 2008              

Why NIGCOMSAT can't own telecoms licence, by NCC
By Sonny Aragba-Akpore

THE need for strict adherence to due process and the Federal Government's directives on the issuance of telecommunications licences have been cited as reasons for the inability of the Nigerian Satellite Communications Company Limited (NIGCOMSAT) to secure an operating licence.

In a working paper to the Speaker of the House of Representatives, Hon. Dimeji Bankole, the Nigerian Communications Commission (NCC) Chief Executive, Mr. Ernest Ndukwe, said that as constituted, NIGCOMSAT was not qualified to own a telecommunications licence.

The Guardian learnt at the weekend that Ndukwe said that it would be a breach of Section 39 (3) of the Communications Act of 2003 to issue the agency licence to provide retail telecommunications services.

According to Ndukwe, because the satellite communications owns 40 per cent equity in another licensed company, it was disqualified by the law to have the requested licence.

Section 39, sub-section 3 of the Act stipulates that no company shall be issued multiple licences by the commission.

In the memo dated January 22, 2008, Ndukwe stated: "NIGCOMSAT owns 40 per cent shares in a company already licensed by the NCC."

This was admitted by NIGCOMAST Chief Executive, Mr. Ahmed Rufai, in his presentation to the House on January 16, 2008.

NIGCOMAST owns 40 per cent shares in Gicel Limited, which currently has a unified licence from the NCC.

The Guardian learnt that NIGCOMSAT also registered another firm called Peoples Network Limited to carry out last-mile telecommunications services (retail services) when eventually licensed.

Based on these revelations, officials of the House are of the view that the status of NIGCOMSAT is unclear because "there are certain facts concerning the company that have not been disclosed."

Sources at the House told The Guardian that the issue of licensing might be referred to its ad-hoc committee on communications for further investigation since it will not be fair to grant multiple operating licence to a single firm.

Even though Section 39 (3) vests the NCC with the power to refuse a person or corporate body an operating licence if that person has a similar licence or has substantial shares in a licensed entity operating the same kind of service, the NCC boss' document to the House states that the commission "has not, and will never dare to disregard any presidential approval or resolution of the National Assembly on any matter whatsoever.

"Rather, the NCC is painstakingly implementing the decisions of government to ensure that the objectives of the Presidency and the National Assembly are fully achieved in accordance with due process and the rule of law," Ndukwe said.

He continued: "It is our responsibility to proffer honest advice to government on matters relating to telecommunications regulations as contained in the existing law."

The resolution to grant an operating licence to NIGCOMSAT was taken by the House last November 21, but its ad-hoc committee report was reportedly handed over to the NCC on January 21, 2008.

The said resolution stated that the NCC should issue a 3G spectrum licence to NIGCOMSAT as drafted by the government and the Federal Executive Council (FEC) to enable it provide last-mile services.

But NCC said that it forwarded licence application forms to NIGCOMSAT on November 6, 2007 and invited its officials to make technical and business presentations to the commission in fulfilment of the preliminary documentation processes for the issuance of major licences. The forms were returned to the commission on November 28, 2007, and in the course of evaluation, were discovered to be lacking in requisite valuable information for processing of the licences."

According to the NCC, a letter was sent to NIGCOMSAT, drawing its attention to the shortcomings in their proposal and they were requested to provide additional information to enable the commission proceed with licence evaluation and issuance of appropriate licences. But as at January 16, 2008, the NCC was yet to receive the information demanded from NIGCOMSAT.

"The commission had another privilege to give updates on the matter to the Committee on Communications at a meeting on Wednesday, January 16, 2008, during which the attention of this House was drawn to a subsisting directive of President Umaru Musa Yar'Adua, which was concurrent with the House resolution, and which would ultimately decide the status of NIGCOMSAT before any aforesaid licences could be issued to the right entity," Ndukwe said.

He explained that Yar'Adua late last year directed a presidential committee, chaired by Vice President Goodluck Jonathan, to review the current status of NIGCOMSAT in line with government's objectives, security considerations, and options available for the ownership structure of NIGCOMSAT to suit the issuance of a licence. The inaugural meeting of the committee was held on December 3, 2007.

Representatives of the government in the panel included the National Security Adviser (NSA), Attorney-General and Minister of Justice, the Minister of National Planning, Minister of Information and Communications, the Minister of Science and Technology, Special Assistant to the Vice President on Economic Matters, the Executive Vice Chairman/Chief Executive of NCC, Director-General, Bureau of Public Enterprises (BPE), and the Managing Director of NIGCOMSAT.

The Guardian learnt that a sub-committee, chaired by the NSA, was set up to look at the issues in details and make recommendations to the committee.

It was also learnt that the sub-panel is considering among other options, the creation of a subsidiary from NIGCOMSAT, with the private sector owning controlling shares, or allowing NIGCOMSAT to acquire government's share in NITEL. Any of the options adopted by the Presidency would affect the status of NIGCOMSAT. Since the sub-committee has only 14 days from its inauguration on January 14, 2008, to submit its report to the Vice President, the government's decision on the matter is expected to be made public soon.

Ndukwe said at the weekend that the "NCC is very confident that the House would require the commission to do a thorough job with respect to adherence to the rule of law and due process which would be appreciated both locally and internationally, rather than do a shoddy job, and in the process, ridicule the House and the nation."

He said that "we have continued to update the Presidency through the Minister of Information and Communications, and the National Assembly, through the House Committee on Communications, on the details of our licensing processes for NIGCOMSAT, and actions so far taken to implement the desires of government.

"The NCC is a public institution that holds the National Assembly very highly and has enjoyed high level of co-operation with the House of Representatives since 1999. We will continue to ensure that this is maintained," he stated.