There is an unsavoury battle in the Nigerian
telecommunications sector that is being made to look like the ‘big’ player against
the rest of the field. And the moderator appears to have taken side to give
advantage to the already privileged. Sadly, if the situation is not redressed,
the Nigerian telecommunications consumer stands the risk of losing out
ultimately.
In other to ensure a level playing field for all the
telecommunications operators, the Nigerian Communications Commission (NCC)
embarked on a survey in 2012. The primary objective of that study was to determine
the level of competition in the industry. The result was the conferment of the
status on MTN Nigeria as the “Dominant Operator in the Retail Mobile Voice
Market” segment of the telecommunication industry in 2013. Arising from that,
MTN was directed to immediately collapse the differential between the on-net
and off-net retail voice tariffs. Two years later, however, NCC has taken a
shocking decision to reverse the situation to the detriment of the other
telecommunications operators.
Three months ago, NCC approved a decision allowing a
30 per cent differential between the on-net and off-net retail voice tariff for
MTN Nigeria. That clearly was in contravention of the obligation imposed on MTN
Nigeria under the Determination of Dominance Regulation to collapse its retail
voice on-net and off-net tariffs and ensure both tariffs are at par.
In approbating and reprobating in the same breath, NCC
breached the rule of engagement with the operators as provided in the National
Communications Act 2003 No 19 and the Consumer Code of Practice Regulations
2007. It acted without consultation with the industry stakeholders and had
little or no consideration for the investment of the operators as well as the
interest of the consumers.
Fundamentally, the NCC was required to undertake a
public review of the market in consultation with the industry stakeholders.
Indeed, the 2012-13 exercise by the same NCC, which revealed that MTN Nigeria
had undue advantage over its competitors, witnessed series of consultations
with the operators and stakeholder engagements. It is therefore curious that
NCC failed to go the same route required by its status this time.
Whose interest is the NCC and its leadership serving?
Clearly not that of the consumer who will be denied the option of choices if
the other players are frustrated out of the market. Without a breathing space
for all the players in the industry, Nigeria may be unwittingly making a slow
but steady return to the days of a monopoly, represented by the humongous
Nigerian Telecommunications Limited (NITEL), that delivered epileptic service
to the consumer.
The failure of the NCC to follow due process to
curtail a looming monopoly raises concerns as the regulatory agency
is obligated to promote fair competition and prevent the misuse
of market power or anti-competitive practices by any
licensee. Investors craving strict adherence to
regulations to guide their investment decisions are bound to be
disturbed where the industry regulator undertakes far reaching decisions
without transparently engaging with the stakeholders who will be
affected by its actions.
One wonders why the NCC made a complete turn-around even when its own
survey had confirmed that one of the operators has an undue advantage. Is the
NCC playing its statutory role as the industry regulator or is it acting out a
prepared script to favour a particular section of the Nigerian
telecommunications industry and put the Nigerian consumer at the risk of a
monopoly?
For an economy to thrive, it must encourage a level
playing field. MTN has already assumed the status of a monolith running
Nigeria’s ICT backbone. The financial and allied sectors are at it behest for
its crucial operation. The action of NCC will only empower the company the more
and stifle competition in the telecommunications sector. When a single company is directly or indirectly propped up to dominate
the market, when we shut out competition, which often results in high prices
and inferior products, we are putting the end user in dire straight.
The failure of the NCC to
follow due process has raised concerns among industry stakeholders
as the commission has an obligation to promote fair competition
and prevent the misuse of market power or anti-competitive
practices by any licensee. Investors craving regulatory
certainty to guide their decisions will certainly be disturbed where
the industry regulator undertakes far reaching actions without
transparently engaging with industry stakeholders that may be
affected by its policy.
NCC ought to ensure a level playing field. It
should refrain from demonstrating bias towards any operator.
By Sokari John, a consumer rights activist, writes from Port
Harcourt
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