News
Glo, MTN Feud Over Connectivity Pact
Two telecom operators, Globacom Limited and MTN Nigeria Communications Limited are currently in a fierce dispute over interconnection agreement entered between them sometime in 2003.
Under clause 6.5 of the agreement, it was said that the two telecom companies agreed that no party shall invoice for a call later than 60 days after the actual call date.
However, Globacom in a suit at a Federal High Court, sitting in Lagos, alleged that MTN in clear violation of the clause, made a claim of over N1 billion allegedly being unpaid supplementary invoices isused by MTN to Globacom.
According to the suit before Justice Lambo Akanbi, Globacom also listed the Nigerian Communications Commission (NCC) and MTN as co-defendants.
NCC was said to have constituted an Arbitiral Panel to look into the dispute, which eventually directed Globacom to pay MTN the sum of N856 million both as supplementary invoices for calls terminated on MTN’s network by Globacom and sum admitted.
The panel had also directed Globacom to pay the sum within 30 days of the ruling, failure of which, sum would accrue interest till liquidation.
But Globacom is urging the court to quash the decision of the Arbitral panel of NCC, insisting that the ruling was a grave miscarriage of justice as the panel failed to make specific findings on fundamental issues in the controversy between the parties.
The company also wants the court to restrain NCC and MTN from enforcing the ruling, adding that the panel made decisions on issues not submitted to it and that fair hearing and the rules of natural justice were jettisoned in the entire proceedings.
Globacom further argued that the panel failed to furnish it with the records of proceedings and that the panel exhibited bias against it in favour of MTN.
However, MTN and NCC have filed separate preliminary objections to the suit, urging the court to strike it out on the ground that the court lacked jurisdiction to adjudicate on the matter, having been filed in gross abuse of court process.
In the alternative, the defendants urged the court to refer the matter to the Chief Judge of the Federal High Court for onward transmission of the case to Abuja division of the court for hearing determination.
They argued that prior to filing of the suit, MTN had earlier filed suit against Globacom at the Abuja division of the court seeking to enforce the ruling of Arbitral panel constituted by the NCC.
When the matter came up in court on Wednesday, the parties informed the court of the processes filed so far, while Justice Akanbi ruled that it would be neater and better to hear the preliminary objections of MTN and NCC together.
The matter was adjourned till February 3 for hearing.
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