By Emma Okonji
The Nigerian Communications Commission (NCC) is unhappy with a
telecommunications firm, MTN, over its violations of the commissions’
regulatory obligations to its dominant status in the telecoms sector and
also for violating the ban on promos on its network.
NCC had last week summoned MTN to a meeting in Abuja to obtain its explanations for the observed violations, but was not satisfied with the explanations by the firm.
A reliable source at the meeting told THISDAY that NCC described the explanations by MTN as unacceptable and had threatened to impose another sanction on the firm should the violations persist.
According to the source, in 2013, the commission carried out a determination of dominance in the various segments of the Nigerian telecommunications market.
NCC had last week summoned MTN to a meeting in Abuja to obtain its explanations for the observed violations, but was not satisfied with the explanations by the firm.
A reliable source at the meeting told THISDAY that NCC described the explanations by MTN as unacceptable and had threatened to impose another sanction on the firm should the violations persist.
According to the source, in 2013, the commission carried out a determination of dominance in the various segments of the Nigerian telecommunications market.
“That study resulted in the declaration of MTN Nigeria Communication Limited as the dominant operator in the mobile voice segment of the market.
“Consequently, the NCC placed certain obligations on MTN with effect from May, 2013, which include not to offer any differential pricing in its on-net and off-net mobile voice service. MTN was therefore directed to collapse its on-net and off-net tariff,” the source said.
“The above direction became necessary to promote fair competition, avoid any potential failure of the Nigerian telecoms market and improve quality of service,” it added.
In February this year, following the failure of MTN, Airtel and Globacom to meet the various service quality on Key Performance Indicators (KPIs), the commission placed a ban on all promotions and bonus offers on the three networks until further notice. However, recent monitoring of compliance status among telecoms operators by the NCC revealed glaring cases of violations of both the dominance obligations and the ban on promotions by MTN Nigeria, a situation that is currently annoying the telecoms regulator.
The source said in order to maintain a healthy competition within the Nigerian telecoms market, it became necessary that the firm be directed to ensure that the rules of engagements are strictly obeyed.
NCC had therefore directed that MTN should withdraw all existing and ongoing promotions currently running on its network on or before Friday, June 20, 2014; and that MTN should ensure full compliance with the obligations under the commission’s 2013 Dominance determination which mandates them not to charge any discriminatory price between their on-net and off-net voice services. NCC warned that MTN must not embark on any action that might create any “calling club” effect on its network.
NCC insisted that MTN should take all measures to improve the present service quality performance of its networks.
It promised to communicate to MTN, any further decision regarding the observed violations.
When contacted via emails and calls to get its reaction, MTN was completely mute over the matter and did not give any explanations for the alleged violations.
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