TECHDIGEST-The Nigerian Communications Commission (NCC) has recruited Price Waterhouse Cooper (PwC), a worldwide consulting firm, to analyze the existing degree of performance inside the collocation and infrastructure sharing (CIS) segment of the telecom sector, which currently has 78 licensees. The NCC is using its regulatory powers under the Nigerian Communications Act (NCA) of 2003 to hire the consulting firm. The research will be completed between April and July 2022.

Yetunde Akinloye, Director, Policy, Competition and Economy Analysis (PCEA) at NCC, who spoke on behalf of EVC Prof. Umar Garba Danbatta at a stakeholder’s forum in Lagos, said the study will provide the Commission with insightful and evidence-based facts on the dynamics at play and ensure the continued growth of the CIS segment of the telecom market. The study is a priority for NCC, according to Akinloye, because the collocation and infrastructure sharing portion of the telecom ecosystem plays a crucial role in guaranteeing reliable services. The stakeholders’ forum, according to Akinloye, was organized to inform operators in the CIS section of the telecom market about the study and to ensure their buy-in and cooperation with the consultants conducting it. According to Akinloye, the NCC undertakes periodic studies to analyze the level of competition in the industry in order to fulfill its purpose of establishing an enabling environment for industry competition as well as assuring the supply of high-quality and efficient telecoms services.

READALSO:NCC Rules Out Hike In Telecom Tariffs

“Having successfully conducted competition assessment studies in 2005, 2010, and 2013, the Commission had issued determinations based on the findings of the studies while the outcome of such studies has also enabled the Commission to come up with various regulatory interventions and initiatives to continuously provide a level-playing field for the interplay of market forces. These procedures are emplaced by the Commission to ensure fair, efficient, and sustainable competition in the Nigerian telecom industry,” Akinloye said.

Despite the Commission’s substantial progress, she added that major developments and activity in some market areas of the industry had compelled the execution of another competition analysis following the successful completion of the 2013 research. For example, the CIS market category was still in its infancy when the 2013 study was done, and as a result, little emphasis was placed on it. “However, the CIS segment has experienced substantial expansion and transition over the years, with over 80 licensees working in the category, and its performance and activities continue to have a significant impact on other segments of the Nigerian industry,” says the report.  The Director PCEA also informed that activities in the CIS market have also attained the targets set out in the Nigerian National Broadband Plan (2020-2025)”.

The study’s overall objective, according to Akinloye, is to provide current insights into the level of competition in the CIS market segment, as well as articulate strategies to enhance market opportunities and ensure the deepening of competition, which will ultimately support the provision of innovative services for the benefit of both market players and consumers at large. The forum, according to Akinloye, allows stakeholders to learn about the study’s purpose, scope, and methodology, as well as ensure that the questionnaire or Request for Information (RFI) produced by the consultants assess the amount of competition in the market is thoroughly understood.

Bako Wakil, NCC’s Director of Technical Standards and Network Integrity, requested full cooperation from licensees in the CIS segment of the telecom market whenever consultants approached them for relevant information, either through the RFI or one-on-one sessions with consultants during the study’s implementation. The study, according to Wakil, is in the best interests of CIS licensees, other players, and consumers. It will also give the Commission helpful and evidence-based insights needed to promote healthy competition and a level playing field in the CIS segment, as well as ensure the telecommunications industry’s long-term viability. “Also, rest assured of the confidentiality of any information provided to the Commission in the course of this study, no matter how sensitive,” Bako said to the enthusiastic audience.

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TECHDIGEST – The Nigerian Communications Commission (NCC) is taking a decisive regulatory move to ensure sustainability, profitability and fair competition in the Special Numbering Service (SNS) segment of the nation’s telecommunications sector.

This move informed the decision of the Commission to hold a Stakeholders’ Forum on the ‘Determination of Call Termination Rate for Special Numbering Service Providers in Nigeria. ‘

The forum, held at the Conference Room, NCC Head Office in Abuja on Tuesday, November 16, 2021, was well attended by representatives of Mobile Network Operators (MNOs), Special Numbering Service (SNS) providers and other stakeholders who participated actively in the discussions.

Addressing the gathering, Yetunde Akinloye, the director, Policy, Competition and Economic Analysis at NCC, said the meeting was convened following the extensive work of a committee set up by the Commission to look into the issues and complaints emanating from the SNS segment of the telecoms market. A key concern according to her, was the perception of high cost of delivering services to end-users in the SNS segment.

Accordingly, Akinloye stated that, “This meeting is convened to discuss issues pertaining to the special numbering services (SNS) segment of the Nigerian telecommunications market.

Statutorily, the NCC is the custodian and manager of the toll-free and non-toll-free numbers licenses, on behalf of the Federal Government of Nigeria”, she said.

She explained that owing to the scarce and finite nature of the numbers in the sector, the NCC, as the regulator, was under obligation to ensure the utilisation of the numbers by the licensees in a way that delivers value to the final consumers and ensures sustainability of the industry.

“The SNS has been in existence for the past 15 years, with some licensees actively engaged in the segment. However, we have noted some observations and complaints from different quarters on the use of these numbers. We have observed, for instance, that there has been no effective utilisation of the numbers” she said.

Akinloye also said the Commission had observed that the uptake of the numbers has been abysmally poor, contrary to NCC’s expectation as the sectoral regulator. She stated that NCC has also received complaints from the licensees regarding the perceived high rates aand charges by Mobile Network Operators (MNOs) who are owners of the major infrastructure being used by SNS providers to deliver services to end users.

According to her, based on this, the NCC set up a committee to do a thorough review of the market segment; research similar markets in other jurisdiction for benchmarking; and determine the appropriate call termination rates, through proper investigation, consultation and stakeholder engagements.

She said the Committee had done extensive work in this regard and as part of its rule-making process and regulatory transparency, the NCC has organised the consultative forum “to share outcomes of the Committee’s findings with the licensees, discuss the regulatory interventions that need to be taken and get inputs from all MNOs, SNS providers and other relevant stakeholders.”

Also speaking during the meeting, Bako Wakil, director, Technical Standards and Network Integrity, NCC, lamented that the SNS segment of the market has not been fully maximised because of the cost elements involved.

However, Wakil said, if cost can be reduced, there will be greater benefits from economies of scale. “So, there has to be a way of making people use the service more if the price is appropriate. In the last 15 years of introducing SNS providers, there are less than 3,000 people using the service and yet, we have licensed additional number of players in the segment. Therefore, we are looking at profitability, sustainability and vibrancy of the Value-Added Service segment,” he said.

After taking inputs from representatives of MNOs and SNS providers at the forum, a new date was fixed for the second phase of the stakeholders’ forum at which more contributions will be taken to enrich the quality of decisions in that regard.

While the second meeting of the Forum has been scheduled to take place in Lagos on 14th December 2021, the NCC has urged stakeholders to submit additional inputs and send to the Commission by November 30, 2021 for timely assessment and collation before the second meeting.

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