Liberia Telecommunications Authority Imposes $300k Fines on Lonestar MTN and Orange for Regulatory Breaches

Liberia Telecommunications Authority Imposes $300k Fines on Lonestar MTN and Orange for Regulatory Breaches.

The Liberia Telecommunications Authority (LTA) has issued a 14-day ultimatum to Lonestar MTN and Orange Liberia, requiring each to pay a $300,000 fine. The fines stem from four serious regulatory violations, including breaches related to floor pricing and failure to submit crucial data impacting revenue.

Floor pricing is a regulatory measure used to stabilize market conditions by setting minimum prices. Acting chairperson Abdullah Kamara addressed media at a Ministry of Information briefing, highlighting that this measure was introduced in 2019 to establish minimum consumer package rates for data and voice services. It aimed to mitigate pricing competition that resulted in unsustainable business practices, such as network contraction and layoffs.

Kamara noted that the initial intervention had stabilized the sector, leading to revenue increases and infrastructure expansion. However, he expressed concern that recent trends indicated a return to pre-floor pricing strategies, causing market instability and revenue decline.

He emphasized, “Predatory pricing led to network congestion, dropped calls, and diminished service quality.” Despite previous warnings, both telecom providers continued with non-compliant pricing strategies, prompting the LTA’s decision to impose penalties.

Kamara also highlighted additional concerns regarding Orange Liberia’s unauthorized cross-border connectivity with Ivory Coast, acquired without proper documentation, which violated regulatory norms. The company’s failure to disclose newly established links further compounded regulatory breaches, undermining sector oversight.

“These violations undermine our ability to effectively monitor the telecom sector,” Kamara added. “We expect these fines to prompt immediate corrective actions.”

The LTA’s actions underscore its commitment to enforcing regulatory standards aimed at fostering a stable and competitive telecommunications environment in Liberia.