NCC To MTN: "Crash Your Rates!"

                       

At last: The Nigerian Telecommunications Commission (NCC) has gotten up off it's hallowed backside, and ordered MTN Nigeria to collapse the rates for its on-net and off-net voice services.

This ORDER was contained in a report titled, 'Determination of dominance in selected communications markets in Nigeria', and was signed by Mr. Eugene Juwah, Executive Vice Chairman, NCC.

The NCC said it plans to make a determination of pricing principle to address the rates charged for on-net and off-net voice calls for all other operators, to manage dominance in the market. . .

. . . About time!

It also revealed something which even the deaf mobile subscriber knows: That competition in the Nigerian mobile voice market is not highly competitive. Using what it called the HHI, it said MTN with 44 percent of the market share, has emerged the dominant operator in the mobile voice segment.

. . . Duhh!

According to Juwah, an industry review showed phone calls between MTN customers cost three times lower than calls to other networks, indicative of the likely establishment of a calling club for MTN subscribers.

. . . You think?

Juwah said, "As a result of the determination outlined above, the Commission has resolved to immediately enforce and implement accounting separation on the dominant operator; ensure that the differential between the on-net and off-net retail tariffs will immediately collapsed, while the tariff for on-net and off-net will be the same and subject to periodic review."

We wait to see how that pans out. The mobile communications industry is supposed to be a highly competitive one in which rates are crashed down to bearable and manageable costs for subscribers.

In a situation where one subscriber holds sway at the detriment of subscribers shows an inherent flaw in the system. Now that we know NCC exists, we hope for a better arrangement.

Oh yeah, lest I forget. . . For those who're thinking of 'Porting', It might be prudent to hold on a while. . .

At least to see where this whole 'Order' thing is heading to.

Keep your fingers crossed: The order takes effect from May 1st, 2013.