The company recently sent out notices to all its subscribers that it will increase data and voice bundles beginning
The LTA issued Order 0016-02-25-19 imposing floor prices and surcharges on on-net voice calls and data. A floor price is a minimum fee impose by an authority preventing operators from charging fees beyond that limitation. Thus, the minimum floor price imposed on on-net voice call is
Data obtained by the New Dawn newspaper indicates that since the LTA Order was introduced both LoneStarCell MTN and Orange made a combined
Instead, Orange has presented a picture to put a government, which already looks like its running out of favor with electorates against its people. How did it happened?
It can be recalled that in 2018 the LTA issued Order 0016-02-25-19 imposing floor prices and surcharges on on-net voice calls and data. Before issuing the Order, the LTA got all stakeholders involved and their inputs were considered. The LTA also conducted public consultations to be able to make informed decisions. Thereafter, the Order was finalized and took effect.This led to the elimination of the famous "Three Days Free Calls," by the two GSM Companies last year September.
Subsequently,when the order went in to force, the two GSM companies requested 6 months after which they will pay into government revenue the surcharges collected from the implementation of the floor price.
So the one major effect of the LTA Order was to abort the famous three days free-call as specifically requested by Orange Liberia and other stakeholders. Orange
The New Dawn investigation at the time revealed that the famous three days free call was introduced by Celcom prior to Orange acquisition of Celcom through purchase as reported. It was likely a business strategy employed by Celcom to increase its customers in order to attract potential buyers like Orange.
The three days free calls having lasted for years, thus
When Orange Liberia took over
The Government too welcomed the idea likely because of its interest to collect revenue on paid calls, unlike free calls. Since there were no conflict of interests between the GSM companies on the one hand and the Government on the other, the LTA issued the Order which charges a floor price and surcharge in consultation with all stakeholders.
Surprisingly, having eliminated the free call and collected revenue from the floor price as the LTA Order, Orange continued to refuse to pay the surcharge fee to the Government of
The order also provides that after it comes into force on
But following the publication of this order in 2019, Orange Liberia continued to engage the LTA by numerous letters, outlining its objection to the order.
While still collecting the floor price charge, Orange Liberia took LTA to court refusing to pay the surcharge. The LTAwon the case in the lower court from which Orange Liberia took an appeal before the full bench of the Supreme Court.
Again, while still operating on the floor price as imposed by the LTA, Orange Liberia noted in its inputs during the consultation that the "concept of unlimited, three day free calls" is at the core of its marketing strategy and if stopped, would destabilize the company and create significant risks on its leadership of the market, operations, revenues and taxes.
How did the Supreme Court rule?
So on
Associate
This paper has gathered that Orange Chief Executive Officer Mr.
But as stated earlier, the company announced that it will impose the said surcharges, as to if it would increase the on-net voice calls and data apart from what the LTA has set is yet to be seen.
However, it has refused to pay its share of the
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