IPNEWS: True to the authoritative Independent Probe Newspaper, Monday, November 7, 2022, edition captioned: ” Data Conspiracy Unearthed”, two operating GSM companies in Liberia have adjusted their data, SMS, and call tariffs.
In a series of SMS messages from the two GSM companies comprising Orange and Lone Star MTN, Monday afternoon, the two companies stated that: ” Y’ello 231886902569, your $1 42mins 45MB 3Days will expire in 4 days from now. Get Free 8 Mins to call orange when you resubscribe to the package today. Dial *143# to activate.”
Prior to this move by the two GSM companies, consumers within the last two weeks had experienced an undesirable cut in data, and call packages within the two GSM companies’ networks without a word from regulator, the Liberian Telecommunications Authority (LTA).
it may be recalled, in early 2022, the two GSM companies stated that the new prices introduced by the Mobile Network Operators (MNOs) were as a result of additional surcharge of US$0.008 for each minute of on-net voice and US$0.0065 for each megabyte of data in compliance with LTA order: 0016-02-25 issued on February 25, 2019. Within a week of the announcement via SMS to subscribers, the GSM Companies rolled out their new fares which introduced 300% increment on on-net voice service and a 100% increment on mobile data.
In the wake of this implementation of the surcharges, the new floor price introduced and enforced by the LTA in 2019 had put US$1 for 45 minutes of on-net voice call, 15 minutes to other networks and 50 megabytes of data. Also, US$2 offered 2 gigabytes of data. However, US$1 was thought to offers 15 minutes of on-net voice service, 5 minutes to other networks and 15 megabytes of data while US$2 now gives 600 megabytes of data.
Additionally, before the earlier move by the GSM Companies, the LTA order: 0016-02-25 issued in February 25, 2019, sought to bring some sanctity among mobile network operators and to create a level plain field for competition and make room for more investors wishing to venture the industry.
This order brought the long the famous ‘three days free call’ to an end. According to the LTA, the termination of the promotion was a request from Mobile Network Operators, to which observers stated that GSM companies had already increase self revenues.
According to the report, the promotion had prevented the GSM companies from extending their services to some parts of the country.
In the same Regulation that brought the surcharge into effect, the LTA announced the introduction of additional surcharges that was expected to take effect six months after the introduction of the floor prices. The surcharges were expected to have rolled out in March 2019 but delayed due to the legal challenge by Orange Liberia.
Part IV, Section 4.1 of the Regulations states: “On the sixth monthly anniversary of this Order, being October 15, 2019, there shall be automatically imposed a surcharge on on-net voice in the amount of US $ 0.008 for each.
Section 4.2: “On the sixth monthly anniversary of this Order, being October 15, 2019, there shall be automatically imposed a surcharge on mobile data in the amount of US$ 0.0065 for each megabyte of data.
And Section 4:3 states: “The surcharges subject to this Subpar shall go into immediate effect on the specified date with no additional notice or Order required, subject only to any determination arising from a review and analysis of market indicators that may be pursuant to Sections 5.1 and 5.2, in the sole discretion of the LTA.”
As the controversy lingers on, Orange Liberia sought the intervention of the Court to halt the government from enforcing the surcharge. Orange’s core argument was that the LTA was usurping the functions of the Legislature by imposing taxes – a function that is strictly the Legislature’s.
They also argued that imposing the surcharge would make Liberia one of the most expensive countries when it comes to telecommunications services.
The Judge Scheaplor R. Dunbar of Civil Law Court ‘B’ ruled that LTA’s order was promulgated in conformity with the Telecommunications Act of 2007 and that the said order does not violate any provision of the Revenue Code.
“LTA does not have to obtain the full agreement of all service providers and stakeholders before it can promulgate an order, rule or regulation,” said Judge Dunbar in his ruling which was challenged.
Initially, Orange Liberia had complained to the Judge, challenging the LTA’s order 0016-02-25-19, which is intended to establish price floors for on-net voice and data services, a regulatory fee on telecommunications goods and services, and a regulatory surcharge for on-net voice and mobile data services.
Also ruling in Orange’s appeal, the Supreme Court ruled that word “surcharge” used in the LTA’s Order is construed within the context of an imposition of additional fees or charges on data services and on-net voice calls under the authority of the Telecommunications Act Legislature’s authority to levy tax.
The Supreme Court added that it was not the intent of the Legislature to preclude the LTA from imposing surcharges on data services and on-net voice calls when it repealed and amended Section.
In the wake of the court proceedings, Orange Liberia lost the case at the Supreme Court and was compelled to adhere to the payment of the surcharges to Government, the LTA served the mobile network operator two invoices for surcharges on on-net voice calls and mobile data for the period ranging from March to September.
The mobile data invoice tallied an amount of US$6,140,370.59 while the bill for on-net voice call was US$10,370,447.40.
Those bills represent the surcharges for March to September 2020.
Upon receipt of the invoices, the Mobile Network Operators began to rollout the new surcharges.
Passing on of the surcharges to the customers has risen public outcry – bringing both the LTA and the government under criticisms from the public.
But the LTA later condemned the GSM Companies’ decision to introduce new prices for voice and data services.
In a statement, the LTA described the sudden increment by both Orange Liberia and Lonestar Cell MTN in 2021, as illegal and that it was done under the pretense of complying with the surcharge order.
“The LTA regards this act as illegal price fixing, collusion, and antitrust conspiracy. Under relevant provisions of the Liberia Telecommunications Act of 2007, no ‘Term Services” can be increased without approval of the LTA,” the LTA statement noted.
The LTA then gave both companies a 12-hour ultimatum to revert to status quo and make full restitution to affected subscribers.
The LTA noted that the new charges introduced by the Operators far exceeds what is required for the implementation of any order and designed for profiteering and political purposes.
Twenty-four hours after there was no action on the LTA instruction, the Regulator issued another statement disclosing that its Board of Commissioners met with representatives from Orange Liberia and Lonestarcell MTN earlier today in separate meetings at the regulatory headquarters in Paynesville.
The Board expressed their displeasure over the increase which was not approved and issued a stern warning. Both Service Providers, according to the LTA, confirmed in the meetings that they are in the process of reverting to prices prior to their arbitrary increase.
While Liberians were waiting with unease for Orange and Lonestar to go by the LTA’s action, Orange Liberia issued a statement indicating that the LTA is putting them in a position that would make it almost impossible for them to operate in Liberia.
According to Orange, Instead of the LTA agreeing to meeting on how to roll out this scheme of the LTA Order, the LTA sent Orange Liberia invoices in the amount of approximately US$16.5 million for the period, March 2020 through August 2020, to be paid by October 21, 2020 or Orange Liberia’s license would be suspended and Orange Liberia will be taken to court.
Orange noted that it moved to comply with the LTA by calculating the surcharges (“additional costs”) and placing it on top of its own costs, to be paid by its customers, collected by Orange Liberia and remitted to the LTA.
Shortly after Orange Liberia announced the roll out of its plan to implement the LTA Order, the LTA accused Orange Liberia of price-fixing, profiteering, collusion, antitrust conspiracy and political motive for implementing the LTA ORDER and directed that all MNOs should cease and desist from implementing the LTA Order in the manner and way that the MNOs were implementing it. Orange Liberia has complied with this second order.
Orange Liberia: “Orange Liberia has paid all 5% regulatory fees, annual license fees, numbering and spectrum fees, $0.14/min and $0.05/min on international incoming and outgoing calls, Goods and Services Tax and continues to comply with its obligations under Liberian law. Notwithstanding this, LTA wants Orange Liberia to pay surcharges (“additional costs”), which Orange Liberia never collected from its customers and which Orange Liberia could not collect during the pendency of the Petition for Judicial Review lawsuit, because the law is that the effectiveness of LTA ORDER was suspended while that matter was in court. By LTA demanding now that Orange Liberia should pay the surcharges (“additional costs”) in the amount of US$19.3 million, which was never collected by Orange Liberia from its customers, the LTA is effectively ordering Orange Liberia into bankruptcy, which is unacceptable to Orange Liberia.”
However, Orange Liberia says is prepared to amicably resolve the matter in a “in a mutually beneficial way”.
Orange Liberia, however, insisted that “the LTA’s demand that the “surcharges” (“additional costs”) should be paid by Orange Liberia from its revenues/assets, not by Orange Liberia’s customers, is tantamount to running Orange Liberia into bankruptcy, as its revenue cannot under any circumstance afford such huge amount. Orange Liberia is ready to open its records in substantiation of the fact that a payment of US$19.3 million will bankrupt the company; if surcharges (“additional costs”) were to be paid from Orange Liberia’s own revenue, Orange Liberia will not be a profitable enterprise in Liberia because it does not generate that amount of revenue from its own costs. It is just not a sustainable proposition”.
In a critic of the MNOs’ action, Atty. Kun Teh described the arbitrary increment as callous while at the same time calling the GSM Companies “rogues”. “Their actions are callous! In fact, this is a pure subversion! So, how 0.008 and 0.00065 increments can explain the hike amounting to 300% for voice call and 100% for data?” he stated.
According to him, the LTA Order requires Orange and LonestarCell to pay to the Government certain percentages of the floor price set or a surcharge. The surcharge is not a new or added charge on call or data, but the Government’s fair and lawful share of the floor price set.
Atty. Teh: “The GSM companies are just greedy and mischievous. They have collected money and are refusing to pay the Government its share. Really? Can you imagine the government had even waived six months?
“Besides the revenue objective, another objective of the LTA Order is to ensure stability and uniformity in the sector; primarily, to remedy the unending war between the GSM companies. Hence, before the LTA Order, there was no clear price regulation.
This is unfair to the government! And to you the opposition, this is not politics, please have the call a spade a spade. The recent actions of the GSM companies tacitly amount to subversion.” An international telecommunication expert narrated.
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