NCC CEO, Eugene Juwah
The Nigerian Communications Commission (NCC) has said that anti-competitive behaviour among telecoms operating companies will bring huge setback to the growth of telecoms industry, if not addressed.
The Nigerian Communications Commission (NCC) has said that anti-competitive behaviour among telecoms operating companies will bring huge setback to the growth of telecoms industry, if not addressed.
Director, Policy Competition and Economic Analysis for NCC, Mrs. Lolia
Emakpore, who gave the hint in Lagos in an interview with THISDAY that
NCC had come to realise that anti-competition would not only stifle
growth of the industry, but would also erode the gains of
telecommunications, which the commission had sustained in the past
eleven years.
According to her, it was for this reason that the NCC held a meeting in
Lagos recently to discuss with all stakeholders, including telecoms
operators, to enable it come out with policy statement on fresh
guidelines for healthy competition in the industry.
She promised that the new policy statement would be released by the end of December, 2012.
She promised that the new policy statement would be released by the end of December, 2012.
In technical parlance, anti-competition is an action carried out by
dominant operators, who use their large size and financial strength to
intimidate and usurp the little powers of smaller operators in the same
market, in the name of competition.
“Any anti-competitive behaviour sets the industry back. It affects
consumers and industry growth, and it kills and stifles development and
that is why the NCC will not allow it to play up in the market. Although
anti-competition is not encouraged, but dominance in the market is not a
bad development in itself, but whenever dominant operation is
established in the market, there is need for the regulator to come up
with proper regulation that will guide against unhealthy dominance,
which is referred to as anti-competition,” Emakpore said.
She warned that NCC would apply sanction where necessary, should there
be clear case of anti-competitive behaviour among telecoms operators.
“The Nigerian telecoms market has come a long way and it has grown so
big that it has become important for NCC to look into the market and see
the level of competition in the market. The essence of the stakeholders
meeting is to help NCC define the market vertically and horizontally
and to help it determine if there are dominant operators in the
industry,” Emakpore said.
“The outcome of the meeting will help NCC to further review and
redevelop the existing laws and guidelines on anti-competition, in order
to ensure that they adequately meet the needs of the market,” she
noted.
Asked if anti-competition was already playing up in the telecoms market
space, Emakpore said NCC received some complaints from some telecoms
operators on what seems to be anti-competitive behaviour, but that it
would be pre-mature of the commission to take action based on such
complaints, without first defining what constitutes anti-competitive
behaviour.
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