NCC Indicts MTN, GlO

Fri, Oct 10, 2014
By publisher
5 MIN READ

Business Briefs

THE Nigerian Communications Commission, NCC, is threatening to impose sanctions on some mobile operators in the country for various infractions of its regulations, including violation of the directive on tariffs and failure to abide by the ban on promotions. In a report on its monitoring activities in the second quarter of the year, the regulatory agency said MTN Nigeria Communications Limited has continued violating its anti-competition directive.

The NCC had asked MTN to collapse the different charges that obtained when its subscribers call within the network and other networks. According to the regulatory agency, the directive became imperative because of MTN’s dominant operator status. It also said MTN and Globacom violated directives banning the networks from promotions as a result of their failure to meet quality of service prescriptions.

The report said: “Consistent with Section 89 of the Nigerian Communication Act, 2003, which mandates the commission to monitor all significant matters relating to the performance of all licensed telecoms service providers, the Compliance Monitoring and Enforcement Department has developed monitoring strategies to prosecute the above mandate and achieve the commission’s objectives of fair competition, ethical market practices and optimal quality of service in the Nigerian telecoms industry.

“In 2013, the commission carried out a determination of dominance position 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 commission asked MTN Nigeria with effect from May 2013 not to offer any differential pricing in its on-net and off-net mobile voice service. MTN Nigeria Communication Limited was 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. Also, in February, 2014, following the failure of MTN Nigeria Communication Limited, Airtel Networks Limited and Globacom Nigeria Limited to meet the various Quality of Service Key Performance Indicators, the commission placed a ban on any promotion or bonus offer on these networks until further notice.

“Our recent monitoring of compliance with the above regulatory obligations revealed various cases of glaring violations of both the dominance obligations and the ban on promotions by MTN Nigerian Communications Limited. Following the commission’s findings, MTN Nigeria Communication Limited was invited to provide its explanations for the observed violations. However, the explanations by MTN Communications Nigerian Limited were considered and found to be unacceptable.

“Consequently, the commission issued a final warning to MTN Nigeria Communications Limited and directed as follows: MTN should forthwith collapse the on-net and off-net tariff on its network and strictly comply with all obligations placed on MTN under the 2013 Declaration of Dominance; MTN should notify the commission of compliance with the Act within 10 days of receipt of the directive; MTN should forthwith discontinue and withdraw all unapproved promotions, including but not limited to the MTN 100 per cent daily on-net promo, MTN 200 per cent recharge bonus, on-net bonus SMS promo, and MTN all day WOW promo.”

Lagos Chamber of Commerce Criticises Corporate Affairs Commission

Bello
Bello

THE Lagos Chamber of Commerce and Industry, LCCI, has expressed concern over the frustrations faced by investors in the course of business incorporation. The chamber in its communiqué signed by Muda Yusuff, its director general, criticised the Corporate Affairs Commission, CAC, of not living up to the high expectations of better service delivery it promised Nigerians few months ago.

He said rather than take the promised 24 hours business registration, business incorporation now takes over one week. He noted that a major component of the Ease of Doing Business Report of the World Bank is the ease of business registration. The LCCI urged the management of the CAC to urgently fix these shortcomings to realise the dream of making the country a leading investment destination in Africa.

In its comments on the construction of Lagos-Badagry Expressway, the LCCI said “We welcome the proposal by the federal government to partner with the Lagos State Government to ensure the speedy completion of the reconstruction work of the Lagos-Badagry Expressway.  This collaboration is long overdue.  There is tremendous wisdom in allowing national development concerns to take precedence over partisan considerations at all times. The Lagos Badagry road is very strategic, not just for the development of the country, but the facilitation of trade between Nigeria and other countries in the West African sub region.  Over 70 per cent of freight and human movements between Nigeria and countries in the sub region take place on this corridor.  Its current deplorable state is thus taking a huge toll on economic activities in the country and the sub region.”

The LCCI further calls on the Lagos State and federal government to urgently development a partnership framework to accelerate the completion of the reconstruction work on the road.  It is in the interest of the Nigerian economy, the ECOWAS economic integration aspirations and the welfare of millions of citizens’ resident on this corridor to do so.

— Oct. 20, 2014 @ 01:00 GMT

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