LTA fines Lonestar and Orange GSM companies $300K each for data violations

The LTA has fined the two GSM companies because they allegedly violated and refused to submit critical data with significant revenue implications.

Monrovia, June 28, 2024: The Liberia Telecommunications Authority (LTA) has taken decisive action against the two major GSM companies here, Lonestar Cell MTN and Orange, levying fines of US$300,000 each. 

The fines were imposed due to what the LTA describes as serious violations and a refusal to submit critical data with significant revenue implications.

Speaking at the Ministry of Information press briefing on Thursday, June 27, 2024, Acting LTA Chairman Abdullah Kamara disclosed that the decision to penalize both companies stemmed from multiple counts of regulatory breaches. 

According to Kamara, the violations primarily revolved around Floor Price regulations. Both companies allegedly engaged in a price war to offer consumers more minutes per dollar than the market allowed, thus reducing government revenue.

“These violations led to increased network traffic, deteriorating service quality, and declining revenue,” Kamara stated.

He complained about the adverse effects on the telecom landscape, including network stagnation and employee layoffs.

Kamara emphasized that implementing Floor Price regulations had initially stabilized the sector, fostering revenue growth and enabling network expansion.

However, he expressed concern over a recent resurgence in non-compliant pricing strategies among the telecom giants, which he noted contributed to renewed market instability and reduced government revenue.

“LTA had previously instructed both companies to introduce service packages within the prescribed Floor Price framework, but this directive has been disregarded,” Kamara continued.

He underscored the board’s decision to impose penalties as a necessary measure to enforce regulatory compliance.

Furthermore, Kamara revealed another serious breach involving Orange. Three new communication links—two international and one local—had been established without notifying the LTA. The agency said Orange’s action contravenes the licensing agreements.

“This omission severely undermines our ability to monitor the sector effectively,” Kamara lamented, stressing the importance of transparent communication from all telecom operators.

He reiterated the LTA’s expectation that the fines imposed would prompt immediate corrective actions from both Lonestar and Orange, ensuring adherence to regulatory standards and the preservation of a stable telecommunications environment in Liberia.—Press release