Facts have emerged that the Nigerian
Communications Commission (NCC) may sanction telecommunications service
provider 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, DigitalSENSE
Business News gathered.
There are indications that the regulatory
body is unhappy with the telco as the body 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 source at the meeting disclosed to DigitalSENSE Business news
that NCC described the explanations by MTN as unacceptable and had threatened
to impose another round of sanction on the firm should the violations continue.
According to the source, in 2013, the commission
carried out a study to determine 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 offering 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
directive became necessary to promote fair competition, avoid any
potential failure of the Nigerian telecoms market and improve quality of
service,” the source said.
Recall that 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 show glaring cases of violations of
both the dominance obligations and the ban on promotions by MTN Nigeria, a situation
that the telecoms regulator deems irksome.
The source further said in order to
maintain a healthy competition within the Nigerian telecoms industry, it became
necessary that MTN 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”,
the source said.
NCC however promised to communicate to MTN,
any further decision regarding the observed violations.
Chukwudi Obi
... Making SENSE of digital revolution!
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