NCC says that MTN Nigeria has 44 per cent market share of the mobile voice telephony market while there is also a wide differential of about 300 per cent between on-net and off-net calls “and this is indicative of the likely establishment of a calling club for MTN subscribers.”
Lagos. April 28, 2013: The Nigerian government plans a major shakedown of MTN Nigeria operations after a probe revealed that the South African mobile phone company’s control of 44 per cent of mobile voice telephony service undermines competition in the telecoms industry. MTN Nigeria has been declared dominant operator in the mobile voice telephony voice business by the Nigeria Communications Commission (NCC) and the company will be forced to review its call rates as part of the tougher scrutiny to be imposed on its operations as from May 1, this year by the telecoms regulator.
Eugene Juwah, the Executive Vice Chairman of Nigeria Communications Commission (NCC), who announced the “Determinations of Dominance in Selected Communications Markets in Nigeria” that comes into force from May 1, this year, says that it was the outcome of a study conducted to check abuse of dominant market power by operators and ensure that Nigerian consumers get a better deal.
Juwah says that the implications of the declaration on MTN Nigeria will see its operations coming under stricter regulatory scrutiny to guard against abuse of its market position in the mobile voice telephony.
The regulatory determination is part of a widespread shakeout in the telecoms market where the regulator says that anti-competitive acts by the big players have stifled open competition in the marketplace.
Juwah says that MTN Nigeria has 44 per cent market share of the mobile voice telephony market while there is also a wide differential of about 300 per cent between on-net and off-net calls “and this is indicative of the likely establishment of a calling club for MTN subscribers.”
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