MTN declared dominant player in mobile voice market

30 Apr 2013

The Nigerian Communications Commission (NCC) has published its findings from the ‘Study of the Assessment of the Level of Competition in Nigerian Telecommunications Industry’, which it began in June 2012. The regulator has determined that MTN Nigeria is a dominant player in the mobile voice segment, with a market share of approximately 44%. As such, the South African-owned operator is required to adhere to obligations concerning: accounting separation; the introduction of equal rates for on-net and off-net tariffs (which will then be subject to periodic review); and submission of details on specific aspects of its operations as the need arises. Meanwhile, MTN and Globacom have both been designated as dominant operators in the wholesale leased lines and transmission capacity sub-segment of the upstream market. The pair are required to adhere to obligations of accounting separation, and must submit details on specific aspects of their operations as the need arises. They are also required to introduce a price cap for wholesale services and a price floor for retail services, as determined by the NCC. As the fixed voice market is in decline, the regulator did not identify a dominant operator in this segment, while the mobile data market was declared effectively competitive. The fixed data market and downstream segment, meanwhile, were identified as nascent markets in which no operators are considered dominant. The regulator’s determinations will take effect from 1 May 2013 and will remain valid and binding for the services specified in relevant market segments until further review by the NCC.

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