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NIGERIAN COMMUNICATIONS COMMISSION

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Title: NIGERIAN COMMUNICATIONS COMMISSION


1
NIGERIAN COMMUNICATIONS COMMISSION
  • PUBLIC INQUIRY ON
  • ENFORCEMENT REGULATIONS
  • 18TH AUGUST 2004

2
INTRODUCTION
  • The Nigerian Communications Act 2003 has
    conferred on the Nigerian Communications
    Commission the Commission various functions
    which include
  • Protecting and promoting consumer interest.
  • Making and enforcement of Regulations
  • Development and monitoring of performance
    standards and quality of service.
  • Promoting fair competition.
  • Examining and resolving complaints.

3
INTRODUCTION
  • To enhance the performance of its functions,
    powers are conferred on the Commission to
  • Make decisions
  • Make determinations
  • Issue directions
  • Make Regulations
  • Resolve disputes

4
CHALLENGES OF MARKET LIBERALIZATION
  • Enactment of adequate enabling laws.
  • Good regulatory framework.

5
THE NEED FOR ENFORCEMENT REGULATIONS
  • To enforce decisions, determination, directions,
    rulings.
  • To enforce provisions of the Act, Regulations and
    Licenses
  • To generally give full force and effect to the
    provisions of the Act with a view to
  • Ensure that the performance of the functions of
    the Commission is not impeded.
  • Harness the gains of market liberalization.

6
REGULATION MAKING POWERS
  • The power of the Commission to make regulations
    and guidelines has been conferred by Sections
    4(1)(i) and 70 of Act.

7
ENFORCEMENT REGULATIONS2004
8
GENERAL OVERVIEW
  • Made up of twenty (20) Sections divided into six
    (6) chapters.
  • Has two (2) Schedules containing
  • General Forms
  • List of Administrative fines.

9
CHAPTER I
  • SCOPE AND INTRODUCTORY PROVISIONS

10
  • Deals with the scope of monitoring and
    enforcement powers of NCC.
  • Exercised over persons subject to the Act.
  • Exercised to ensure compliance with
  • The Act
  • The Regulations and
  • License conditions
  • Exercised in accordance with the Act and the
    Regulations.
  • May be initiated by NCC or complainant.
  • Enforcement activities to be published quarterly
    on NCC website.

11
CHAPTER II
  • MONITORING AND ENFORCEMENT POWERS AND PROCEDURES
    GENERALLY

12
Section 4
  • Provides principles for the exercise of the
    enforcement and monitoring powers
  • Transparency, fairness, non-discrimination.
  • Proportionality of sanction to the contravention.
  • Need to promote fair competition and investment.
    Etc.

13
Section5
  • The Commission in the exercise of its enforcement
    powers is among others, mandated to institute
    civil proceedings for
  • Injunctive relief.
  • Specific performance.
  • Pecuniary awards or damages.
  • Recovery of administrative fines.

14
Section 6
  • The Commission in the exercise of its powers of
    entry and investigation may do any of these
  • Demand the test operation of any equipment or
    facility
  • Seal off premises, and seize and detain property
    to stop an unlawful operation or protect the
    national interest.

15
Section 7
  • The Regulations define as an offence the
  • Assaulting, obstructing or resisting, or aiding
    another to assault, obstruct or resist an
    official of the Commission or an appointed
    inspector.
  • Impersonation of an official or appointed
    inspector
  • A fine not exceeding N100,000 or 1 year
    imprisonment, or both is prescribed as penalty.

16
Section 8
  • Places a duty on every licensee on request from
    the relevant authority (as defined), to
  • Provide Basic and non-Basic information required
    to prevent crime, protect public revenue and
    preserve national security.
  • Prescribes the authorization precedent to a
    request for information
  • Request for Basic information to be signed by an
    Officer not below the rank of an Assistant
    Commissioner of Police or its equivalent.
  • Request for non-Basic information to be
    sanctioned by a judge or magistrate.

17
CHAPTER III
  • CONSUMER AFFAIRS AND TECHNICAL REGULATIONS

18
Consumer Protection
  • For purposes of protecting consumers and ensuring
    the use of ethical marketing and promotional
    strategies, the Commission is mandated to
  • Publish guidelines from time to time setting out
    standards on promotion and advertisements.
  • Issue written approvals to the contents of, and
    representations in promotions and advertisements
    before publication.

19
Acts of Contravention
  • Certain actions are in the Chapter declared as
    constituting contravention for which sanctions
    are to imposed e.g.
  • Failure to meet minimum standard of quality of
    service.
  • Failure to meet type approval requirements.
  • Failure to operate within power output limits.
  • Breach of guidelines published under the section.
  • Occasioning harmful interference.

20
CHAPTER IV
  • ADMINISTRATIVE FINES

21
Applicability
  • Administrative fines in the Regulations are to be
    imposed particularly for, but not limited to
    instances where specific enforcement sanctions
    are not provided in the Act or licenses.
  • All fines as may be imposed, shall become due and
    payable within 14 days of service of the
    notification document on the contravening person.

22
Guiding Principles
  • Towards determining administrative fines, 17
    principles are laid down for purposes of
    guidance. These include
  • Severity of the contravention and the need to
    deter others
  • Transparency and uniformity in applying sanctions
  • Duration of contravention
  • Whether contravention was deliberate, reckless or
    negligent.
  • Records of previous contravention.
  • Attitude of contravening person before, during
    and after the contravention.

23
CHAPTER V
  • REVOCATION OF LICENSES

24
  • Provides for circumstances where a license can be
    revoked other than as stated in the Act or under
    license conditions.
  • Under the Regulations, a three(3) months notice
    in writing must first be given before a license
    is revoked.

25
Revocation Circumstances
  • Failure to provide services for a continuous
    period of thirty (30) days after date of
    commercial launch.
  • None payment of any amount under any license
    condition within twenty-one (21) days of
    notification being sent to the licensee.
  • Failure to secure type approval for equipment.
  • Inability to commence full operations within
    twelve (12) months of effective date of license.
  • Making false or misleading statements of a
    material nature in an application for a license.

26
CHAPTER VI
  • DEFINITIONS AND SHORT TITLE

27
  • Contains the definition of terms used in the
    Regulations which are not otherwise defined in
    the Act or licenses.

28
COMMENTS ON THEDRAFT ENFORCEMENT REGULATIONS
29
INVITATION TO STAKEHOLDERS
  • The Commission in June 2004 published the draft
    Enforcement Regulations on its website.
  • In compliance with S. 58(1) of the NCA 2003, the
    Commission through the Guardian and ThisDay
    newspaper editions of 23rd July, 2004
  • Invited the public and stakeholders to send in
    submissions on the Enforcement Regulations within
    the statutory twenty-one (21) days notice
    period.
  • Invited the public and stakeholders to a Public
    Enquiry on the Enforcement Regulations scheduled
    to hold on August 18, 2004.

30
RESPONDENT
  • The deadline for submission of comments was the
    7th 0f August
  • As at close of work on Friday August 13th 2004,
    comments were received from only ALTON.
  • Comments were also received from MTN on the 16th
    of August.

31
RESPONSE TO THE COMMENTS

32
RESPONSE TO COMMENTS
  • Comment
  • Power of search and seizure
  • A submission was made to the effect that the
    power of officials of the Commission and
    inspectors to search, seal off and seize
    equipment and documents is too wide and subject
    to abuse. It was suggested that the provisions be
    made for securing the consent of a judicial
    officer before the power is exercised.

33
RESPONSE TO COMMENTS
  • RESPONSE
  • The powers to seal off premises, seize /detain
    equipment are not of a general nature but are
    qualified as exercisable only in respect of
  • Stopping illegal, unlawful and unauthorized
    operations.
  • Facilitating prosecution of offenders in court.
  • Preserving the national interest.
  • These powers are already provided for in the Act
    and no such restriction as contemplated here is
    placed by the Act
  • These Regulations merely amplifies the Act and
    states the circumstances where it will be
    applied.

34
RESPONSE TO COMMENTS
  • Comment
  • Request for Basic Information
  • There was a comment to the effect that the power
    of the Commission or any relevant authority to
    request for Basic information should be made
    subject to supervision of the courts.
  • That Basic and Non-basic information are not
    defined with precision hence the ambit thereof
    can be extended at will.
  • It was suggested that the power be made subject
    to authorization by a judge or magistrate.

35
RESPONSE TO COMMENTS
  • Response
  • S.8(1) of the draft Regulations and S.146(2) of
    the Act read together makes it clear that Basic
    information is required to
  • prevent crime
  • enforce Nigerian law
  • protect public revenue and
  • preserve national security.
  • The Commission recalls that at a consultative
    forum held at the instance of the Commission
    between operators and members of security
    agencies on the 12th of February, 2004,the
    definitions and position adumbrated in the
    Regulations was agreed upon by a majority of
    operators.

36
RESPONSE TO COMMENTS
  • Comment
  • Advertisement and Promotion
  • It was submitted that the power of the Commission
    to publish guidelines specifying standards in
    advertisement and promotions, and the power to
    require licensees to submit advertisements for
    the approval of the Commission, is unprecedented
    and may result in the leakage of vital
    promotional strategies to competitors.

37
RESPONSE TO COMMENTS
  • Response
  • Generally, the provisions in the Regulations on
    publication of guidelines on advertisements and
    promotions are supportive of the spirit of the
    Act on advertising or representation of
    services as expressed in S.106(4)(d).
  • Contrary to fears expressed in the submission,
    the Regulations only require licensees to obtain
    the prior written approval of the Commission for
    PROMOTIONS and not advertisements.
  • By their nature, promotions unless monitored,
    have the tendency to
  • Affect the quality of service to the consumers
    adversely.
  • Result in anti-competition practices contrary to
    S. 91 of the Act.

38
Response Contd
  • Furthermore, by S.4(1)(h) of the Act, the
    Commission has the function of protecting the
    interests of consumers against unfair practices
    which in the opinion of the Commission includes
    false/misleading information in promotions.
  • A licensee who has no intention to mislead the
    public should have no fear of the provision.
  • Confidentiality is of the uttermost importance at
    the Commission. Both the Act and conditions of
    service applicable to staff have extensive
    provisions on conflict of interest and acceptable
    code of conduct. The fear that promotional
    strategies may be revealed to competitors by
    staff of the Commission is therefore unfounded
    and unwarranted.

39
RESPONSE TO COMMENTS
  • Comment
  • Administrative fines
  • It was submitted that the sum of N100,000
    payable as fine for
  • Impersonating an official of the Commission or
    appointed inspector
  • assaulting, obstructing or resisting or aiding
    another to assault, obstruct or resist an
    official of the Commission or appointed
    inspector,
  • is prohibitive and may create an impression that
    the
  • Commission is interested in making money and not
  • stopping repeated infringement of the law.

40
RESPONSE TO COMMENTS
  • Response
  • The sum of N100,000 prescribed in the
    Regulations is the maximum fine and is not
    sacrosanct.
  • S.15(2)(a) (q) of the Regulations lays down 17
    principles for guidance and to guard against
    arbitrary and excessive charging of
    administrative fines.

41
RESPONSE TO COMMENTS
  • Comment
  • Change of Management
  • It was submitted that the power conferred on the
    Commission to direct licensees to change their
    management as the Commission considers necessary
    is unconstitutional and without basis in the
    enabling Act.

42
RESPONSE TO COMMENTS
  • Response
  • The Commission recognizes the legal right of its
    licensees as incorporated entities to control the
    internal management of their affairs.
  • The provision that the Commission may require
    changes in the management of a licensee is an
    option offered in lieu of revocation of a
    license.
  • This takes cognisance of the interest of
    consumers and the company.

43
RESPONSE TO COMMENTS
  • Comments
  • It was submitted that the NCC should take due
    care not to exceed its powers under the Act to
    make Regulations and where the Act has already
    made provisions with respect to certain powers,
    NCC should refrain from either repeating the
    provisions of the Act in the Regulations or
    making new provisions in the Regulations which
    are inconsistent with the provisions of the Act.
  • Response
  • The Commission in developing Regulations always
    ensures that they are consistent with the
    provisions of the Acts.
  • Provisions already adequately addressed by the
    Acts are not repeated in the Regulations.
  • The Commission would require examples of such
    repetitions or inconsistencies as stated in this
    comments.

44
RESPONSE TO COMMENTS
  • Comments
  • It was submitted that the expression
    particularly but not limited to where there are
    specific monitoring and enforcement provisions in
    the relevant provisions of the Act, Regulations
    or Licence Condition should be deleted.
  • Response
  • The recommendation arose from an implication
    derived by the commentator from the provisions of
    section 1 and 2 of the Regulations. These
    implications have no basis in fact and do not
    represent the intention of the Regulation.

45
RESPONSE TO COMMENTS
  • Comment
  • It was submitted that in the event that an
    infringement is noticed by the NCC in respect of
    which no infringement report has been made to the
    NCC, the NCC must, in the interest of fair
    hearing and due process, appoint an inspector as
    it is entitled to do, to conduct the inquiry and
    make a report to the NCC which then proceeds to
    make a ruling.
  • RESPONSE
  • Monitoring and Enforcement is a regulatory
    function of the NCC and this cannot be delegated
    to third parties. We refer in this regard to
    Section 4(d)(i)(w) of the Act. The requirement
    for third party complaint procedure is merely
    complimentary and does not replace the original
    jurisdiction of the Commission
  • Section 62 and 62 referred to by the commentator
    refers to Investigations and not Monitoring and
    Enforcement

46
RESPONSE TO COMMENTS
  • Comments
  • National Interest should not be made a
    principle to guide the NCC in its enforcement
    powers, as it is not contemplated in the
    principal statute.
  • The publication of enforcement activities must be
    done in a manner that will not prejudice on-going
    enforcement process either at the NCC or on
    judicial review nor create a bias in the minds of
    members of the public. Statutory provisions for
    publication of only Annual Reports should be
    complied with.
  • RESPONSE
  • The Act under Part IV refers to National Interest
    matters.
  • The publication requirement is to fulfill the
    requirement for transparency as mandated by
    Section 4(2) of the Act.
  • There is no statutory requirement for publication
    of ONLY annual report as is stated by this
    commentator, on the contrary annual report is
    only one of the reports that the Act requires the
    Commission to publish. There is no limitation in
    the Act as to the type and number of reports that
    the Commission may publish.

47
RESPONSE TO COMMENTS
  • Comments
  • The powers of entry, search and seizure should be
    exercised only upon proper grounds and with the
    mandate of a Judge or Magistrate as is done in
    democratic societies. This requirement should
    also apply to the request for information under
    section 8 of the Regulations. Reference is also
    made to S.37 of the constitution that this
    amounts to an infringement of the
    constitutionally guaranteed rights
  • RESPONSE
  • The powers of search and entry are provided for
    by section 141 of the Act. The Act does not
    provide a requirement for prior notification
    because it is recognised that such notification
    may defeat the purpose of the search and derogate
    from the power.

48
RESPONSE TO COMMENTS
  • Section 37 of the constitution is not sacrosanct
    and there are proviso to that section made by
    section 45 of the constitution. The Commission is
    of the view that this provision properly falls
    within the proviso provided.
  • These responses are in addition to earlier
    provided responses on this matter.

49
RESPONSE TO COMMENTS
  • Comments
  • The provision relating to prescribing ethical
    standards for contents of advertisements and
    promotions and the vetting in advance of
    advertisements relating to telecommunications
    services should be deleted entirely from the
    Regulations for duplicity, for being ultra vires
    the power granted in the enabling Act and for
    infringing on the jurisdiction of APCONs
    Advertising Standards Panel under the Advertising
    Practitioners (Registration, Etc) (Amendment) Act
    No. 93 of 1992.
  • If NCC wishes to impose fines for contravening
    QoS Standards, such standards should be issued
    and made available to those expected to act in
    compliance with them. Provisions stipulating
    punishments for infringing a rule should not
    pre-date the rule. Care must also be taken to
    address the issue of fluctuations in QoS caused
    by factors outside the control of Licensees.

50
RESPONSE TO COMMENTS
  • RESPONSE
  • The advertising standards panel was set up to
    ensure that advertisements conform to Nigerian
    laws. Section 9(1) empowers the Commission to
    publish guidelines with a view to develop
    specialised standards which the panel can then
    monitor. These guidelines will be developed with
    the participation of the industry.
  • Comments have earlier been proffered with regard
    to promotions.
  • It is not a rule of general applications that
    penalties should not predate the rule. The Act
    prescribes punishment and empowers the Commission
    to make Regulations. See Section 133 134.
  • See Section 15(n) of the Regulations

51
RESPONSE TO COMMENTS
  • Comments
  • The administrative fines imposed are too
    draconian and should be reduced to be in
    conformity with the provisions of Interpretation
    Act.
  • Daily fines are more appropriate in specific
    instances where conduct is required of licensees
    within a specific timeframe under the Act or
    licence condition e.g. filing of Returns as
    practices by the Corporate Affairs Commission
    under the Companies and Allied Matters Act.
  • Several of the contraventions should be deleted
    from schedule 2.
  • RESPONSE
  • Section 1 of the Interpretation Act specifically
    exempts application of its provisions where a
    contrary intention appears in an enactment. The
    reference to the Act is therefore not
    appropriate.
  • Daily fines have been provided where appropriate.
  • Where the commentator considered fines to be too
    excessive no recommendations were proffered for
    the Commissions consideration.
  • Fines as provided in the Regulations are maximum
    amounts and the Commission will be guided by the
    criteria listed in Regulation 15.

52
RESPONSE TO COMMENTS
  • Comments
  • The provision relating to circumstances under
    which a Licence may be revoked in the Act and the
    respective Licences should not be duplicated
    here.
  • Power should not be vested in the NCC to require
    the removal of an employee of a private company,
    especially when that power is self-conferred by a
    regulator without any basis in the enabling Act.
  • RESPONSE
  • These provisions have been compared with the Act
    and found to be consistent. They are primarily
    provided for those licenses that do not have
    revocation clauses.
  • The second issue has been addressed earlier.

53
RESPONSE TO COMMENTS
  • Comment
  • NCC should adopt best practice principles in the
    Enforcement Regulations and there should be no
    room for home-grown prescriptions since the
    telecommunications business is a global business
    with global standards.
  • RESPONSE
  • The Commission has always adopted international
    best practices in its regulatory practices.
    However where it is necessary to consider local
    conditions the Commission will do so in order to
    ensure that the objectives of the government is
    met.
  • In other jurisdictions, regulators have wide
    enforcement powers.

54
THANK YOU
  • LEGAL DEPARTMENT
  • NIGERIAN COMMUNICATIONS COMMISSION
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