Industry players in the telecom industry have downplayed fears that the fine imposed on MTN Nigeria by regulators there will have an impact on MTN Ghana’s operations.
[contextly_sidebar id=”034ZjM8o1jKyn3qrlP5lHHuwM40N9Dmb”]According to telecom analyst, Fouad Chalabi the fine of 5.2 billion dollars imposed on MTN is only restricted to the Nigerian market which will have no implication on Ghana.
His comments comes after South Africa’s bourse a few days earlier suspended trading of the telecom giant group’s shares, after the stock fell as much as 8 percent.
The Nigeria Communications Commission imposed a 5.2 billion dollar fine last week on MTN Nigeria after it failed to cut off unregistered users.
Speaking to Citi Business News Telecom Analyst, Fouad Chalabi rejected claims of a negative impact on MTN business in Ghana claiming that the current issue is political.
“I don’t think there will be any impact on any of the operations of MTN expect what is happening in Nigeria. You should understand that MTN is a group that is listed on the stock exchange and the stock exchange led by speculation so at any time there is any incident that is happening as an operator. Nobody is denying the fact that when it comes to MTN, Nigeria is one the biggest markets and there have been attempts to reduce this but in other not to impact the share as you know investors do business with speculation. This speculation has no direct impact on the operations of the company in other countries. When it comes to regulatory bodies I think it is political which you can always find the solution for. I don’t think the services of the MTN in Ghana would be affected and I don’t think there is any direct impact on any of the operations.” He said.
This is the time for us to wait and see how the negotiations would go and that will help us determine whether there is a real impact on the operations of MTN in Ghana though I think there will be no impact, Telecom Analyst, Fouad Chalabi added.
The stock of MTN according to the Johannesburg Stock Exchange (JSE) has fallen by more than 25 percent in the past seven sessions, wiping out up to $4.36 billion off its market value.
MTN’s Chief Executive Officer Sifiso Dabengwa, Citi Business News has gathered is currently in the Nigeria’s capital Abuja to try to negotiate a reduced penalty.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana