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Liberia: Subverting the LTA Must Be Discouraged
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The NEWS (Monrovia)
EDITORIAL
16 May 2008
Posted to the web 16 May 2008
Monrovia
The Liberia Telecommunications Authority (LTA), the regulatory agency established by an Act of the National Legislature in 2007, and the four GSM companies operating in the industry, have been wrangling in the last two weeks. The fuss is over an attempt by the LTA to standardize licensing requirements as mandated by the Act establishing it. Specifically, the regulator established a deadline of May 7, 2008, in which all operators in the industry were required to comply with the new licensing requirements. For their part, the four GSM operators refused to comply with the deadline on grounds that the LTA was asking for new licensing requirements when they already have been granted licenses.
Furthermore, the four companies contended that the amounts being requested was high and that complying with the LTA guidelines and formalities would jeopardize their future operations.
They further seem to refuse the reforms that the LTA was trying to put in place. In their defense, the LTA said that it has the legal or statutory authority to implement major reforms in the sector, and that the reforms are necessary to put the industry on an even keel and in consonance with international standards.
The regulator provided analytical information to the public in defense of its position and encouraged the GSM companies to comply with the law. When it became apparent that the LTA was unbending, the GSM companies activated their lobbying system and quickly got the support of some very influential people on its side.
Sensing the danger that a continuing stand-off would cost the country, the Speaker of the House of Representatives intervened by calling a meeting of the two parties, i.e. LTA and the GSM operators. At the level of the Executive branch, the Office of the President also intervened, establishing an ad hoc committee under the chairmanship of the Minister of State Economic Affairs/Legal Counsel.
Notwithstanding, the May 7, 2008 deadline established by the LTA as the cut off point for full compliance with the new requirements was defeated. In effect, the GSM companies appear to have undermined the authority of the LTA, and exposed the Government to undeserved ridicule in so far as its efforts to reform the telecommunication sector are concerned. The LTA is now being pushed into a so-call negotiation with GSM operators in which the LTA is constrained to make undue concessions.
In view of this development, it should be pointed out that the 14-year civil crisis and its attending consequences grossly affected the capacity of the country to conduct its business properly and responsibly: the lack of Government focus and commitment resulted to investors operating unsupervised, and one of the sectors where the lack of regulatory supervision practically resulted to virtual exploitation is the telecommunication sector.
When the GSM services became available, Liberians were paying astronomical fees for services that cost little. This is all good, as long as the powers that be at the time permitted this roguish conduct.
Now that we have a democratically-elected Government striving to fix this country one block at a time, it is incumbent upon market operators to comply with the law, especially one that was validated with their full participation. The current situation in which the LTA has been effectively degraded in its first major exercise of its statutory authority is not only sad and unfortunate, but regrettable.
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We hold the view that the Government of President Sirleaf, while it tries to encourage private investment into the country, should be mindful not to create the impression that it is scared of companies who try to subvert statutory authorities because of their financial power. Although the so-called negotiations are still on going, it is critical that the Government give unequivocal support to LTA in the lawful discharge of its duties and responsibilities. The current situation in which the LTA was subverted, is unhealthy, and should be discouraged.
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