Monrovia – Judge Scheaplor R. Dunbar of the Civil Law Court ‘B’ on Tuesday, May 7, denied Orange Liberia’s petition to review a recent mandate by the Liberia Telecommunications Authority (LTA) which levied tariffs on voice calls and data.
Report by Augustine T. Tweh- 00231775524647 / [email protected]
The telecoms giant motion for judicial review of the LTA’s Ordered 0016-02-25-19 was denied due to the lack of sufficient evidence to prove their argument before the judge.
LTA’s new regulation establishes price floors for on-net voice calls and data services and a regulatory fee on telecommunication goods and services. It was signed on February 25, 2019.
With the latest regulation, GSM operators will now be compelled to charge a minimum of USD$0.06 per minute. This is 100 percent increment to the existing charge on on-net voice call which offers subscribers a 72-hour open line for USD$1.00. the new floor price would eventually lead to the cancellation of the three days free calls promotion.
There is also a 50 percent increased in the price of data service. The new floor price is set at USD$0.0218 per megabyte.
But in its petition for judicial review, Orange Liberia claims that LTA does not have the legal authority to impose the floor price and surcharges on telecoms company.
According to the petition to the Civil Law Court, Orange Liberia contends that the imposition of the charges on the company will affect the common people.
Orange argued that previous case of this nature was determined by the court in 2015, drawing the government’s attention to the situation which prompted the passage of an act forbidding the LTA from exercising any authority or taking any action legally to impose and implement surcharges.
But in Judge Dunbar ruling, the act which established the Telecommunications Act of 2007, Part III, Section 8(2) provides that the institution (LTA) shall be an independent legal entity and gave it the power to regulate telecommunications services and the telecommunications sector.
“On April 25, 2019, this court heard oral arguments on the petition and the returns thereto and reserved ruling”
Judge Dunbar continues: “The petition, returns and oral arguments of the parties present one cardinal issue for this court’s determination. The issue whether the petitioner has sufficient legal grounds for the granting of its petition and the setting aside of LTA Order: 0016-02-25-19? The answer to this issue is in the negative.”
Judge Dunbar also ruled that the act gives the LTA authority to make rules and regulations for giving full effect to the provisions of the act for administrative purposes including orders to compel a person to comply with or implement the purposes of the act.
He further stated that the regulatory fees and surcharges were levied to generate revenue for infrastructural development within the telecommunications sector of the economy.
He noted that Orange’s argument that the imposition of regulatory surcharges will have a negative impact on the sector and burden the ordinary Liberians whose telecommunications needs are so great is not persuasive.
“The Order provides for continuous monitoring and analysis by the responded (LTA) of the implementation of the price floors and regulatory surcharges in collaboration with the licenses that are subject of the order”
Judge Dunbar adds: “If the respondent determines later on that the price floors and regulatory surcharges are negatively impacting the telecommunications sector, it has the power and authority to take the appropriate correctives measures.”
The judge further noted that the LTA does not have to obtain the full agreement of all service providers and stakeholders to promulgate an order, rule or regulation.
He said Orange contention that LTA does not have the authority to impose surcharges on telecommunications goods and services and that only the Liberia Revenue Authority has that authority is misplaced.
“wherefore, and in view of the foregoing, petitioner’s petition for Judicial Review is denied and dismissed, and the returns thereto sustain. The Stay Order of April 15, 2019 is lifted. Responded may proceed to enforce and implement LTA Order: 0016-02-25-19. Costs ruled against petitioner. And it is hereby so ordered.”
Following Judge Dunbar’s ruling, Orange Liberia excepted the ruling and took an appeal to the Supreme Court for further determination in the case.