The Nigerian Communications Commission (NCC) has said it is putting measures in place to ensure that small players in the Nigerian telecommunications industry are protected.
To achieve this, the Commission said it would use evidence-based assessments to promote fair competition and ensure smaller telecommunications operators are not disadvantaged.
Dr Aminu Maida, the Executive Vice-Chairman of the NCC said this while speaking at the Second Stakeholder Engagement Forum on the Study of the Level of Competition in the Nigerian Telecommunications Industry on Wednesday in Lagos.
The move comes amid longstanding complaints by Internet Service Providers (ISPs) over the growing dominance of mobile network operators such as MTN, Airtel, Globacom and T2, especially in the internet provisioning market.
NCC targets evidence-based regulations
Maida, who was represented by Mrs Omotayo Mohammed, Head of Competition and Tariff Unit at the NCC said the study would provide evidence for appropriate regulatory decisions and help identify barriers to effective competition.
- “The focus of the commission is therefore on ensuring that market power does not undermine effective competition,” Maida said.
He explained that significant market power (SMP) status alone did not establish anti-competitive behaviour, noting that market dominance could result from sustained investment, innovation and commercial success.
- Maida highlighted that regulatory interventions were necessary, proportionate and targeted at preserving competition, encouraging investment, innovation, improving service quality and consumer value.
- He recalled that the commission’s first stakeholder forum, held in January, outlined the study’s objectives, scope and proposed methodology, allowing industry participants to share their perspectives on competitive conditions.
According to him, contributions from the initial engagement helped refine the study’s approach, identify relevant market issues and strengthen the evidence-gathering process. Maida explained that the preliminary findings were largely based on responses to surveys and requests for information circulated to licensees and other relevant stakeholders.
NCC says small operators are important
Speaking with newsmen in her capacity, Omotayo Mohammed said the Commission wants the small operators to exist and operate optimally as the big operators.
- “Being a small operator should not in itself be a disadvantage to thriving in the industry. And so, measures that we’re taking will be based on what we receive, the information we receive, the analysis of that information, the understanding of market dynamics and the fact that we always want consumers to get the best in terms of services, in terms of choice, as well as to encourage growth in the industry.
- “The smaller players are just as important as the larger players for the NCC,” she said.
According to Mohammed, studies like the current one help the Commission to obtain the evidence needed to make appropriate regulatory decisions.
NCC engages PwC for study
Early this year, Nairametrics reported that the NCC had engaged PricewaterhouseCoopers (PwC) to carry out a comprehensive review of competition in Nigeria’s telecommunications industry, as concerns grow over market dominance and the sustainability of fair competition.
At the time, the Commission said the study was designed to validate existing competition policies against current market realities, following significant structural and technological changes across the industry.
Several industry players, including the Association of Telecommunications Company of Nigeria (ATCON) President, Mr. Tony Emoekpere, had expressed concerns over the dominance of mobile operators in the industry.
Speaking with Nairametrics recently on the declining customers of ISPs, Mr. Emoekpere said the competition between the small and the big players was exacerbated the recent moves by mobile network operators into Fiber to the Home (FTTH) service, the terrain where only core ISPs had been playing, is a factor.
