The Nigerian Communications Commission (NCC) has engaged Price Waterhouse Cooper (PwC), a globally renowned consulting firm, to assess the current level of competition in the collocation and infrastructure sharing segment of the Nigeria telecommunication sector where 78 licensees are currently operating.
Engaging the consulting firm is in the exercise of NCC’s regulatory functions as provided in the Nigerian Communications Act (NCA), 2003. The study is expected to be concluded between April and July 2022.
Director, Policy, Competition and Economy Analysis (PCEA) at NCC, Yetunde Akinloye, who represented the Executive Vice Chairman of the Commission (EVC), Prof. Umar Garba Danbatta, in Lagos at a stakeholder’s forum, said the study will enable the Commission have insightful and evidence-based facts on the dynamics at play and ensure the continuous growth of the CIS segment of the telecom market.
According to Akinloye, he said NCC takes the study as a priority because of the critical role played by the collocation and infrastructure sharing segment of the telecom ecosystem in ensuring robust services.
He added that the stakeholders’ forum was organised to intimate operators in the CIS segment of the telecom market on the study and to secure their buy-in and cooperation with the consultants undertaking the study.
According to his belief, he said in line with its mandate of creating an enabling environment for competition among operators in the industry as well as ensuring the provision of qualitative and efficient telecommunications services, the NCC periodically conducts studies to assess the level of competition in the industry.
“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 measurable progress made by the Commission, she stated that since the successful completion of the 2013 study, there had been significant developments and activities in some market segments of the industry that had necessitated the conduct of another competition study.
For instance, at the time the 2013 study was conducted, the CIS market segment was still at an embryonic stage and as such, much emphasis was not placed on it. However, “The CIS segment has recorded significant growth and transformation over the years having about 80 licensees, operating in the segment while its performance and activities continue to impact significantly on other segments of the Nigerian industry. 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)”.