One million unregistered mobile subscribers — 12 percent of Zimbabwe’s top mobile network operator, Econet Wireless — have been disconnected for failing to register, according to a report in CAJNews.
This comes after South Africa-based MTN, the largest mobile phone company in Africa, was fined $1000 per subscriber on Oct. 26 for failing to disconnect 5.1 million subscribers in Nigeria. The resulting $5.2 billion fine, which represents a quarter of Nigeria’s annual budget, was the largest a company has ever faced in Africa.
The Nov. 17 deadline to pay the MTN fine has been extended while the telcom negotiates with the Nigerian government to have the fine reduced, Reuters reports, according to PulseNG.
The MTN fine influenced Econet to disconnect non-compliant subscribers, CAJNews reports.
Nigeria asked all telecom operators in August to verify the identity of their subscribers or face $1,005 fines per SIM card, according to an earlier Reuters report. The country is fighting Islamic militant group Boko Haram and is concerned that unregistered SIM cards are being used for criminal activity. The Nigerian Communications Commission said in October all mobile phone companies had complied except MTN.
Econet told Zimbabwean customers via text messages to register their lines by Nov. 13, according to NewsdzeZimbabwe. Subscribers must provide proof of residence. Some people entered wrong information about home addresses and national identification numbers.
Unregistered lines have been used to commit crimes, Econet said.
Many people buy their phone service from operators on the street and sometimes fail to register immediately, NewsdzeZimbabwe.
With 9 million subscribers, Econet is the first mobile network operator in Zimbabwe to renew its licence for $137.5 million, according to CAJNews.
Zimbabwe, population 13 million, has three mobile phone networks: Econet, Telecel and Netone. Econet has 8.5 million subscribers, Telecel has 2.54 million and government-owned NetOne has 2.45 million, according to TheAfricaReport.
Telecel Zimbabwe had its operating licence suspended by the Zimbabwe government after being ordered to renew it within 90 days after June 30.
Industry players say the government unfairly targeted privately owned mobile networks for the high renewal fees while the government-owned NetOne did not pay, CAJNews reports.
Telecel Zimbabwe also got in trouble for failing to restructure its ownership according to the country’s indigenization policies, which requires that a majority of foreign companies be owned by locals. Foreign ownership of the company is limited to 49 percent under the conditions of the license renewal. Telecel owned 60 percent of shares, leaving 11 percent disputed.