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FG suspends paid mobile phone anti-theft scheme by Netvisa
Views:209 since Tuesday, September 8, 2009
By Shina Badaru
Abuja. September 8, 2009. The Federal Government has directed the Nigerian Communications Commission (NCC) to suspend the ongoing anti-theft scheme following the public uproar over the mandatory monthly payment of 40kobo on all mobile phone lines in the country to a private company, Netvisa GSM Secured Limited.
Minister of Information and Communications, Dora Akunyili told Technology Times in an exclusive interview that the Ministry, in consideration of overriding public interest, has issued a directive to NCC that the Netvisa scheme be suspended for the next three weeks to review the positions of all stakeholders including the regulator, service provider, mobile operators and the community of mobile phone users in the country.
According to her, the Ministry held a meeting with NCC leadership Monday in the wake of overwhelming feedback from operators and members of the public who have complained that NCC ignored offers by operators that the paid service could have been offered free of charge to Nigerian mobile phone users by operators.
Technology Times had last month reported exclusively that two of the nation’s biggest mobile phone companies, MTN Nigeria and Zain Nigeria have sealed an interconnectivity agreement with Netvisa that was solely licensed by NCC to offer the Central Equipment Identity Registry (CEIR), a development that places a community of over 42million out of Nigeria’s estimated 65million mobile phone users on the paid service.
According to the Minister, “it was on TV that I saw the kick-starting of the programme by NCC and Netvisa”, noting that even though the programme was laudable against the background of rampant theft of mobile phones in the country, there was need to review the position of stakeholders who have complained about the service being offered as a mandatory paid service, “when operators have said that it could be offered free.”
According to Akunyili, stakeholders have also informed the Ministry that the mobile phone blacklisting service can be offered free by international bodies like the International Telecommunications Agency (ITU), the UN specialised agency supervising the global telecoms industry; the GSM Association, the global pressure group of GSM operators among others.
Under a deal brokered by NCC between Netvisa and operators, mobile operators will directly remit the monthly fee to the CEIR operator and deduct same from their annual numbering fees paid into government coffers through NCC over the next two years, in the first phase.
The arrangement was proposed by NCC to assuage protests by operators that they can offer the free of charge to subscribers by implementing a CEIR among themselves rather than license a third party to offer the same service at cost to phone users in the country.
At the expiration of the two-year commercial agreement, it is then expected that the monthly payment for blacklisting will now be deducted from the airtime of every subscriber monthly and remitted to Netvisa, which has come under criticism since it was issued a sole licence by NCC to offer the service.
The Minister said that upon enquiry, some operators have complained about the service saying they refused to “hook up because, there is an international body, ITU, that they pay dues to and this is how they can gain from their dues for that international body to do it free for Nigeria.”
Additionally, Akunyili said that NCC did not receive approval of the Ministry to make Nigerian taxpayers bear the burden of cost for the service under which every mobile phone line will be billed 40kobo monthly following the regulator’s acceptance to have operators net off the cost from their annual numbering fee paid government.
Moving forward, Akunyili said that the Ministry awaits a full briefing from NCC on the matter and promised that other stakeholder groups would be consulted to ensure that a position that takes care of the interest of Nigerian consumers is arrived at before government takes a final decision on the issue of mobile phone blacklisting for Nigerian phone users.
Based on official statistics obtained by Technology Times, active mobile subscriber base on GSM and CDMA mobile networks in the country peaked reached 66,418,011 lines at Q2, 2009, a development that will see Netvisa raking in some N26.5million and N320million in monthly and annual earnings respectively from subscribers when all other mobile operators join MTN and Zain in interconnecting the CEIR network.
The emergence of Netvisa has been flayed by operators and other stakeholders who say that the option of payment being implemented in Nigeria for the blacklisting service will only put more burdens on phone users in the country.
With the signing of the interconnectivity pact with MTN Nigeria and Zain Nigeria, Netvisa has been given some 42million out of the community of 66million active mobile subscriber in the Nigerian telecoms market at Q2, 2009, a figure representing the crème of the market’s estimated 68million active subscribers during the same period.
NCC had pegged the rate of 40kobo per subscriber for the phone blocking service after Netvisa’s proposal for a higher price was resisted by operators that also expressed dissatisfaction with the selection process that saw the emergence of Netvisa as the preferred candidate to provide the single database of blacklisted phones in the country.
One of the grouse expressed is that the selection process was not thrown open to a competitive tender while another issue is the suggestion that the sole provider, Netvisa, lacks the track record or experience to perform the scale of service that it is being expected to carry out for the Nigerian telecoms market.
However topping the list of complaints is operators’ disagreement that subscribers should have to pay for such a service, especially as some operators are willing to provide the same service for free.
Hitherto, telecoms operators have sent position papers to the NCC that they can individually block phones on their networks with their individual blacklisting but without the scheme running across rival networks the stolen phone blocked on one network can still be used on other networks. To let this work, they had recommended that NCC issued regulatory directives urging all operators to collaborate in simultaneously implementing the blacklisting service to ensure its effectiveness.
In pushing for a case against a paid blacklisting service, operators have also queried why all mobile phone subscribers should be charged for a service that only a few will use as they noted that not all subscribers are likely to fall victim of phone theft.