TELECOMMUNICATIONS companies operating in Nigeria will breathe easier
forthwith as industry regulator, the Nigerian Communications
Commission, has decided to lower interconnect rates among service
providers, which it said would deepen competition in the market among
the operators.
Further, the regulator revealed that the proposed launch of mobile
number portability, MNP earlier billed for this month has been moved
forward to April 25 and is also expected to stir up more competition
among operators and make them more responsible to subscribers to enable
them get value for the money.
According to the Commission, the reduction in interconnect rates from
N4.90k to N4.40k was in response to the yearnings of Nigerian
consumers about the high cost of making calls in the country.
NCC’s Director of Public Affairs, Mr. Tony Ojobo who disclosed this
Abuja said the announcement followed a stakeholders meeting in which
all parties agreed to the reduction in the ICR to further deepen
competition in the market and ensure that Nigerian consumers get value
for their money.
“This development is a direct response to the dynamics in the market
and we are certain that it will make service providers more responsive
to the consumers. Though, we see increase in traffic because it is a
win situation to both consumer and the service providers, we took
everything into account before coming up with this reduction in the
interconnect rate.
TELECOMMUNICATIONS regulator, the Nigerian Communications Commission,
has ordered MTN Nigeria to collapse the rates for its on-net and
off-net voice services, which it said has a 300 per cent differential
with effect from tomorrow, May 1.
The NCC, in a report titled, ‘Determination of dominance in selected
communications markets in Nigeria,” signed by Mr. Eugene Juwah,
Executive Vice Chairman, NCC, said it plans to make a determination of
pricing principle to address the rates charged for on-net and off-net
voice calls for all other operators, to manage dominance in the market.
The NCC also disclosed that competition in the Nigerian mobile voice
market is not highly competitive, and using what it called the HHI, said
MTN with 44 percent of the market share has emerged the dominant
operator in the mobile voice segment.
According to Juwah, an industry review showed phone calls between MTN
customers cost three times lower than calls to other networks,
indicative of the likely establishment of a calling club for MTN
subscribers.
Juwah said, “As a result of the determination outlined above, the
Commission has resolved to immediately enforce and implement accounting
separation on the dominant operator; ensure that the differential
between the on-net and off-net retail tariffs will immediately
collapsed, while the tariff for on-net and off-net will be the same and
subject to periodic review.
“The Commission may require the dominant operator to submit details
on specific aspects of its operations from time as the need arises.”
Continuing, in the wholesale Leased Lines and Transmission Capacity
market, which are in the upstream segment of the telecoms market, the
NCC said the dominant operators, MTN and Glo jointly control 62 per cent
of the market, and they shall be required to adhere to the following
obligations as the Commission will come up with a price cap for
wholesale services and price floor for retail services, and subject to
periodic review.
“The Commission will immediately enforce and implement account separation on the joint dominant operators.
“The commission may require any of the joint dominant operators to
submit details on specific aspects of its operations from time to time
as the need arises.
“The determination shall take effect from 1st May 2013 and remain
valid and binding on Licenses for the services specified in relevant
market segments of the section, until further reviewed by the
Commission.”
NCC said there are about 113 million mobile phone subscribers at the
end of 2012, with MTN Nigeria leading with 47 million lines.
Globacom followed with 24 million users, Bharti Airtel had 23 million customers while Etisalat, had 14 million.
culled from http://www.vanguardngr.com
