DESPITE placing ban on two mobile network operators, MNO, over allegations that they used their market dominance to compete unfairly in the telecoms market, recent investigations showed that the market had actually created the environment that put them in the advantage position as dominant operator.
The National Mirror uncovered in a report obtained from the NCC that patronage of mobile subscribers across the country between 2013 and 2014 indicated that each of the four MNOs actually battled fiercely to become the leading oper
The former Executive Vice Chairman, Dr. Eugene Juwah had in April 25, 2013 pronounced South Africa’s MTN and Globacom, second national carrier as dominant mobile operators in critical segments of the nation’s telecoms market.
Our latest investigation showed that only one MNO continued to lead the market of the GSM while the others struggle to claim the same position, which it was gathered the operator may have ascribe to it.
For instance, reports from the NCC showed that mobile market segment figure as at
December, 2014 recorded a total of 136,772,475 active voice subscriptions indicating that it accounted for 97.83 percent of the entire market.
However, 44 percent of the 97.83 percent mobile market segment share went to Mobile Telephone Network, MTN, with a whopping figure of 59,893,093 leaving the other three operators to scramble for the remaining 53.83 percent.
While MTN took that chunk of the market share, national carrier, Globacom snatched 21 percent of the 53.83 percent thereby placing second with a lead figure of 28,219,089 but Airtel Nigeria was quick to trail behind with less than one percent scuttling with 20 percent of the active voice subscription of the market share with a figure of 27,556,544 such hat later comer into the industry and Arab owned operator trail far way with 14 percent share of the mobile GSM market, which is 21,103,749.
Although the dominant operator quest did not look the direction of the Mobile CDMA and the Fixed Wired/ Wireless market segments operators due to the crisis in the segment, which analysis have blamed on the superior technology of the mobile GSM, statistics revealed that there had indeed been a dominant operator without a pronouncement from the operator.
While each accounted for 1.57 percent and 0.13 percent share of the entire market, the NCC which appears silent on the state of that segment indicated Visafone has consistently dominate that market segment.
Investigation revealed a different outlook of market dominance as reflected by the cumulative total numbers ported incoming and outgoing across the all network particular reference to the mobile GSM segment.
The porting trend report from inception between May, 2013 and December, 2014 for the four major GSM operators revealed that Etisalat, which trails behind the three other MNO as the least dominant operator had the highest number of ported subscribers of 92946 from other networks.
On the other, MTN Nigeria, which has consistently occupied the position of dominancy in the last two years, recorded the least ported numbers of with 16,434 followed by Globacom and Airtel with 85,918 and 38,156 respectively.
Under the same, it was gathered that MTN Nigeria suffered a massive exit of subscribers out of its network as 96,496 subscribers moved their numbers to other network.
However, the Etisalat, which industry analyst have classified as the least growing network in the GSM segment suffered the least porting disadvantage with just only 28,164 of its subscribers leaving its network while growing network Airtel Nigeria and Globacom lost 51,902 and 42,091 their subscribers respectively to other network.
According to a Lagos based Consumer Rights Advocate, Mr. Damian Eze, blamed the regulator for the current trend of growth in the industry saying that the MNO have been urging NCC to review the 30 per cent differential it recently granted to MTN Nigeria for off-net and on-net retail mobile voice tariffs as it is a threat to their business.
He made reference to the MTN’s “Family and Friends” promo, which he said was is in violation of NCC’s regulation noting that “it remains a puzzle why the regulator would change the rule of the game midway without informing stakeholders of its intention and explain why it should favour a player at the detriment of others.”
According to him, the Commission has an obligation to promote fair competition and prevent the misuse of market power or anti-competitive practices by any licensee stressing that investors who desire regulatory certainty to guide their decisions will be disturbed where the industry regulator undertakes far reaching decisions without transparently seeking the input of stakeholders.
Eze called for on the NCC and the supervising Ministry of Communications Technology to put in place policies to address challenges affecting broadband development in Nigeria saying that in spite of its huge resources and market potential, the country continued to underperform in the area of broadband development in comparison to its peers.
“While Nigeria’s mobile broadband penetration stands at 10.1 per cent, the average for peer countries in Africa is 30 per cent. Again, peer countries have an average Smartphone penetration of 26 per cent, as against Nigeria’s dismal averages 12 per cent”, he said.
The spokesman for the NCC, Mr. Tony Ojobo said that the regulator is committed to providing a level playing field for all operators noting that its concern as a regulator is to ensure that the industry performance meets the expectation of all stakeholders.
According to him, all polices of the NCC foster the growth of the industry and the development of the economy as well as ensuring that subscribers get value for their money.
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