In a bid to create a level playing field for
telecoms operators, the Nigerian Communications Commission (NCC) has
directed MTN Nigeria Communication Limited to raise internal mobile
tariffs.
NCC in its recent industry review, phone calls between MTN customers
cost three times lower than calls to other networks. The report
stressed: “This is indicative of the likely establishment of a calling
club for MTN subscribers.”
MTN, which has about 44 per cent of the market, must cut the
difference in price and face further scrutiny to ensure the competitive
landscape is even for all operators, the NCC insisted.
Nigeria, Africa’s fastest growing telecoms market with a population
of 167 million people has a subscriber base that is slightly above 113
million at the end of 2012, according to the NCC. MTN Nigeria is the
market leader with 47 million lines.
Globacom had 24 million subscribers, Airtel-23 million customers
while Etisalat had 14 million, according to data on the NCC’s website.
The report also showed that MTN and Globacom were found to “jointly
control about 62 per cent of the public terrestrial transmission
infrastructure,” raising concerns they may “squeeze the margins of their
competitors who are also their customers.”
“As a result of the determination outlined above, the Commission has
resolved that the Dominant Operator in the mobile voice market shall be
required to adhere to the following obligations:
“Accounting Separation: The Commission will immediately enforce and implement Accounting Separation on the dominant operator
“ Collapse of On net and Off net Retail Tariffs: The differential
between the on–net and off net retail tariffs will be immediately
collapsed. The tariff for on net and offnet will be the same, and
subject to periodic review.
“ Submission of Required Details: The Commission may require the
dominant operator to submit details on specific aspects of its
operations from time to time as the need may arise.” The regulator added
that the Commission shall make a determination of pricing principle to
address the rate charges for on-net and off-net calls for all other
operators
On the dominat operators in the Wholesale Leased Lines and
Transmission jointly dominated by MTN and Globacom, NCC said it will
impose price cap/price floor for wholesale services and price floor for
retail services which shall be subject to periodic review. It also plans
to “immediately enforce and implement accounting separation on the
joint dominant operator.”
The regulator added that it may require any of the joint dominant
operators to submit details on specific aspects of the operations from
time to time as the need arises.
“The determination shall take effect from 1st May 2013 and remain
valid and binding on licensees for the services specified in relevant
market segment of this sector until further reviewed by the commission,”
the NCC said.
Source: Nigeria Trends
