New Consumer Protection Framework Established by LTA and Service Providers in Liberia

On November 22, 2024, the Liberia Telecommunications Authority (LTA) and major telecommunications service providers, including Lone Star MTN and Orange (formerly Celcom), signed a landmark agreement known as the Consumer Protection Regulations aimed at protecting the interests of consumers within the telecommunications sector. This agreement was formalized during a signing ceremony held in Ganta, Nimba County, and it marks a pivotal shift in telecommunications regulation in Liberia.

Hon. Ben A. Fofana, the Acting Commissioner for Licensing and Regulations at the LTA, explained that the new regulation is designed to address long-standing issues faced by consumers. In the past, he pointed out, 90% of the rights regarding telecommunications services were in favor of the service providers, leaving consumers with limited protection and recourse. This regulation, however, has been intentionally crafted to prioritize the consumer’s well-being, ensuring that they receive fair and reliable services, in line with international standards.

Fofana emphasized that under this new regulation, consumers will receive “value for money.” For example, if a customer pays for data that should last five days, they will be entitled to use the service for the full five days, without interruptions or loss of service. This ensures that the services provided are aligned with what is paid for, eliminating past frustrations where consumers were short-changed or did not get the service they paid for.

The regulation introduces a more balanced approach, providing limited protection for service providers, whereas the previous regulations were heavily skewed in their favor. The primary goal is to put consumers first, ensuring that they get the quality of service they deserve. In many advanced countries, regulations are designed with consumer protection in mind, and Liberia’s new regulation aims to mirror those practices, making it a major step forward in the country’s telecommunications landscape.

Morley P. Kamara, the Senior Economic Advisor to President Joseph N. Boakai, expressed his strong support for the new regulation. He noted that the signing of this agreement is a monumental step toward prioritizing the needs of consumers, who, in his view, are the backbone of the country’s economic growth. Kamara explained that economists understand that consumer spending is what drives the economy, and placing consumers’ interests at the forefront of this regulation is a move in line with the policies of more developed economies around the world. He called the agreement an important step in creating a more equitable and efficient telecommunications system in Liberia.

While the specifics of the newly signed regulation have yet to be fully detailed, all of the speakers at the ceremony underscored the importance of ensuring fair treatment for consumers. This includes ensuring that service providers meet the quality standards expected by their customers and creating a framework where consumers can confidently engage with service providers without fear of exploitation.

A particularly poignant issue raised during the event was the problem of fraudulent activities by mobile money agents. Many consumers have complained of situations where mobile money agents or “minute boys” pretend to transfer funds to customers’ phones, only for the customer to discover that no transaction had been made. Such issues have caused significant frustration for consumers, leading the LTA to promise greater oversight and enforcement to ensure that these kinds of fraudulent practices are eliminated. The new regulation will ensure that mobile transactions are secure, with protections in place to safeguard consumers’ money and personal data.

The LTA has also committed to ensuring that consumers receive fair services, such as data plans and airtime, that align with the payment made. If a customer purchases minutes or a data plan for a specified period, they will be entitled to the full service for the duration that they paid for. This is part of the broader effort to combat the inconsistent services that consumers have long endured in the telecommunications sector.

Despite the widespread support for the new regulation, representatives from Orange-Liberia voiced concerns about the implementation process. They called on the LTA to be flexible during the rollout of the regulations, as they acknowledged that the telecommunications sector is still learning how to adapt to the new framework. In particular, they requested that the LTA not view the regulation as a tool for generating revenue, but rather as a means to benefit consumers directly. They also called for the creation of more infrastructure, such as the Universal Access Form (UAF), which would enable people in rural and underserved areas to better access telecommunications services.

Orange-Liberia further suggested that the LTA focus on ensuring that the regulation’s impact is felt at the grassroots level, particularly in areas where service delivery has been poor. By improving access to services, especially in remote counties, they believe that the regulation could drive real change for Liberian consumers, making services more affordable, reliable, and accessible.

The signing ceremony was attended by a diverse group of stakeholders, including students, market women, motorcyclists, local government representatives, and telecom company officials. The event underscored the broad support for the new regulation across various sectors of society, with many seeing it as a long-overdue step toward improving telecommunications services and consumer protection in Liberia.

However, the road to full implementation remains challenging. There are concerns that some provinces and districts may struggle with the logistical aspects of rolling out the new regulation. Issues such as stock availability, infrastructure limitations, and inadequate supply chain management have been cited as potential obstacles to successful implementation. Some service providers are already grappling with challenges in managing stock and fulfilling demand for services, especially in less urbanized areas, and the LTA will need to ensure that these barriers are addressed.

In conclusion, the Consumer Protection Regulations signed by the LTA and the telecom providers represent a significant shift in Liberia’s telecommunications landscape. The regulation aims to create a more consumer-friendly environment by ensuring that service providers offer reliable, fair, and transparent services. If properly implemented, the regulation could not only improve consumer satisfaction but also boost economic activity by increasing trust and engagement in the sector. The focus now will be on ensuring that the regulation’s provisions are fully realized, and that consumers, particularly those in rural areas, experience the positive changes promised during the ceremony.