Government moves to address what has been described as the non-level playing field in the telecommunications industry in the country, an action which will definitely inure to the benefit of underdogs.
Specific policies are waiting to be unfurled, which when done will remove what the government calls the undue advantages some players have over their competitors and improve service delivery by so doing.
The regulatory agency, the National Communications Authority (NCA), in a release over the weekend, has been directed by government through the sector ministry “to enforce the provisions of the Electronic Communications (EC) Act 2008 and the National Telecommunications Policy to address glaring disparities in market share and revenue share in the sector.”
A footnote in the release suggests the action has been informed by reports about what is being described as “a worrying trend which demands immediate action to correct the growing market imbalance and creation of a near monopoly in the telecoms sector.”
This imbalance, the release points out, “potentially exposes the country to the dictates of the dominant operator and negatively impacts on competition and choice for the consumer, as well as investments within the sector.”
The policy, the release adds, aims at ensuring the prevalence of a level-playing field among market players in a manner that “would secure a much better pricing policy for consumers and facilitate a sound regulatory regime.”
In a brusque revelation, the Communications Minister signed release dangles statistics from the Statistical Bulletin – Quarter 4, 2019 of the National Communications Authority (NCA), which indicates that “MTN has almost 75% of telecommunications market share. A review of these reports has shown that this has been the trend over a three-year period.
This trend has continued into the first quarter of 2020 as well. These statistics, while impressive and showing growth within the telecommunications and financial sectors, clearly show an uncompetitive and unprofitable environment for less dominant players in these industries.”
SCANCOM (MTN), having been designated a Significant Market Player (SMP) because of its over 40% of the market share, is required “to take corrective measures under the law to facilitate more market competition, ensure proper pricing for consumers and facilitate the overall growth of the telecommunications industry.”
Government, through the Ministry of Communications, while acknowledging the investments MTN has made in their operations over the years and the positive impacts these have had, said “its growing dominance has impacted negatively on competition and consumer choice, necessitating corrective action.”
Some of the corrective measures to be adopted include an asymmetrical Interconnect rate in favour of the disadvantaged operators, the setting of floor/ceiling pricing on all minutes, data, SMS, Mobile Money, etc.
Also to be applied is a review and approval of all pricing by the SMP as required by law.
The dominant player will be require not to have differential prices for on-net and off-net transactions and ensure that various operator vendors are not subject to exclusionary pricing or behaviour.
Operators will also be required to present implementation plans on National Roaming Services within the next 30 days for execution on or before the next 90 days.
“These measures kick in immediately and the NCA is expected to work with all network operators, who must cooperate to ensure it is done painlessly,” the release added.
By A.R. Gomda