So yesterday I read about all NCC had to say on the issue of introducing a price floor. And I have some comments to make

"The regulatory commission said that it feared that the price war could eventually lead to a monopoly in the telecom industry that would force small operators to shut down.
It said that monopoly in the telecom sector could also push the country back to the days of NITEL to the detriment of small operators in the sector.
The Executive Vice Chairman of NCC, Professor Umar Dambatta stated this when he appeared before the Senate Committee on Communications."

Well, Professor Dambatta kept mentioning NITEL in his statement, which I believe is a wrong example to make reference to because "in the days of NITEL" there was just one telecommunications company which is NITEL, no competitors, no rivals, no other company offering telecommunications services, and NITEL was owned by the Nigerian Government. But right now we have so many private telecommunications companies, and out of these many, we have four(4) major companies not one. Therefore I do not see how this might lead to monopoly, I don't think the four major telecommunications companies we have would allow one pass the other, which is not equal to monopoly. Unless Professor Dambatta has a different definition of monopoly that is not - (economics) a market in which there are many buyers but only one seller.

Then on the aspect of forcing smaller telecommunications companies to close or shut down. First I would start with what one of my friend said. He believes in the statement - "if you can't beat them, join them". He believes that if smaller or new entry telecommunications companies can't find a way to survive in the market, then they should merge with the bigger companies to provide better services. I once met Audu Maikori in an event and he made emphasis of the need for partnership and collaboration. He said everybody wants to be the head and alone, when if we collaborate, we could achieve greater things. What if we don’t need eight telecommunications companies, what if we just need working four? If these companies could merge they could give us that! Better services, less worries.

I on the other hand thinks that if any company should shut down, it is completely their fault and not the fault of major telecommunications companies. This is not the first time we have seen companies shut down due to pressure from the Market, but to blame a bigger company is wrong. A company can only shut down due to its own mistakes or wrong tactics/market strategy, that is if it had one. For a startup company, the board/team/management are suppose to have a break through plan, enough capital and focus to become as big as any other company in the market. I believe non of these startup telecommunications in Nigeria have one and are now seeking the help of the government to survive? This scenario is like asking a teacher to intentionally fail a student so you who did not read can be on the same level with the brilliant student. Of course it is possible that these companies might have tried their best to gain market share, but Etisalat Nigeria tried to do the same thing in 2008, they slashed all the prices each telecommunications was offering at that time and sold out sim card almost free, even existing telecommunications giants could not keep up, it was a decision, strategy and sacrifice they had to make that got them to where they are today. Ironically Etisalat Nigeria now offers the most expensive service amongst the four telecommunications, but has already built their brand well enough to have a deserving part of the market. Which of these startup companies are able to do this? NON! So I believe they should go back and re-strategize instead of depending on the government introduce a price floor limiting the major operators.

I am still not in support in introducing a price floor. If NCC fills there is still a need for it, the best they can do is stop these big companies from taking their prices below what they offer right now. I wonder if NCC is supposed protect these small companies or we the consumers? Because their actions of protecting these companies is at our own expense. I look at all NCC reasons as excuse including the one they stated that consumers asked for the price floor to be introduced, when clearly there is a petition which five thousand people have signed against it. It makes me feel there are hidden stories, agenda and personal gains to all of this. Price flooring is suppose to be in the advatage of the consumer, Plus the idea of price floor has not had a good reputation in countries that it was implemented. "A price floor hurts society more than it helps. It may help farmers or the few workers that get to work for minimum wage, but it only helps those people by hurting everyone else" according to http://economics.fundamentalfinance.com/micro_price-floor.php . In this case it helps a few CEO's and hurts the general public. This cannot be acceptable.

That is all I have to say to NCC.

In addition to this post, I also have a comment to make on The Chief Executive Officer, CEO, of MTN Nigeria, Mr. Ferdinand Moolman statement for the federal government to ban WhatsApp and other social services that offer call and text.

“the depletion of operator revenues by unlicensed providers of “over-the-top” telecoms services who do not have any physical presence; nor pay any taxes; nor make any significant contribution to employment or other socio-economic objectives of government in Nigeria.”

Mentioning WhatsApp, Viber and the likes, the MTN boss pointed out that these companies were eroding gains of Nigeria’s telecom companies and asked Nigeria to take action like the United Arab Emirates did.


All I see in this man statement is GREED! I think what he said is completely absurd. What he actually meant by this statement is that he is not making as much money as he used to because of WhatsApp and others, and therefore using the excuse of non physical presence, and no taxes etc to buy out the government. This is purley based on selfish interest. This scenario is like asking the government to ban cars because you as a bicycle seller don’t make much money anymore, and stating excuses like cars produce harmful gases to the environment just to win the heart of the government. Someone should tell this man that TECHNOLOGY HAS PROGRESSED!!! If he is pained by the production of cars, he should probably dump bicycles and start producing cars too. Maybe turn MTN into an APP making company or buy WhatsApp or Viber. You can't hold back technology because you don't make enough money. In fact this means you care about money more than you care about technology, and as the CEO of MTN? that is just too sad. You sir are supposed to be in a bank! Not an IT company. Then you went ahead to say like united Arab emirates? How long would this country continue to copy other countries simply because they are more developed? We should be able to decide which steps we take and which we don't. We should only look out for developed countries for solutions to major problems we encounter like how to come out of recession. Not follow every foot step and implement something simply because it was done in UAE or USA or Europe. Please stop! Finally saying that these apps do not make any significant contribution to employment or other socio-economic objectives of government in Nigeria is wrong. Directly it might not, but indirectly it does in every way. To point out a few, making call over WhatsApp is relatively less expensive than traditional phone call. Yes it means less money for you (even if you make money from data) but it means we as citizen would be able to save more on phone calls which would make us have more money to improve our standard of living and businesses which would have positive impact on the economy. Taking for example a typical venture owner who spend a lot on phone calls would save alot if he has to buy only data. On a long run, that savings from phone calls could be used to expand his venture which would lead to more people being employed and growth on the nation economy which is in contrary to Mr. Ferdinand statement. So please don’t think of it. Neither should the Nigerian Government consider it unless again it in support of a company over it's citizens.

That is all I have to say. I am in no way an expert and therefore all I've written here is in my opinion. Please feel free to contact me in any area you feel I am wrong.

This should be on the front page.. lalasticlala

Well articulated piece....Front page material

I'm here to read comments

You made alot of point

Front page material

Nice write up, better we start engaging them with facts like these .

Excellent, superb and neatly addressed write-up OP. This kind of article suppose to reach NCC headquarters to address their greedy and selfish interest.

Nigerians, it is now up to us to your use our Intellectual, physical and even spiritual force to negate this useless brace up.

To deal with so many negative situations at whole is devastating. We cannot bend to their rules hence milking the poor masses for their personal gain.

That useless man called Adebayo Shittu, his least punishment should start from outright sacking.

Lalasticlala, please this write-up deserves FP.

Excellent write up.Ncc or it's representative on Nairaland should forward this message to their boss . Don't argue or defend your organization all the time but pay attention to issues raised on this forum

God bless you OP. very precise. nice write up. I can smell personal gains for NCC. those smaller companies should be thinking of merging. that's market for you

Clueless government...

Nice points op
Lalasticlala I think this topic is front page worthy

MTN and greediness be like

The people at NCC and MTN are jus after their selfish interests coupled with greed. But it beats my imagination how our govt which is supposed to protect us consumers are now working with telecom companies to extort the citizens.

OP I hail o. Very well written piece.

As much as we know these telcos and the NCC tend to say a lot of unreasonable things, but did MTN’s CEO actually say the FG should ban Whatsapp and Viber?

I have read all the newspaper reports, and I also stumbled on the MTN statement posted on their LinkedIn page (see link below)
(https://www.linkedin.com/hp/update/urn%3Ali%3Aactivity%3A6212708488792010752?pathWildcard=urn%3Ali%3Aactivity%3A6212708488792010752&actorCompanyId=2594006&trk=cp-notifications-click-on-like).

I might be wrong, but their CEO did not say that they should ban Whatsapp and Viber. He only said that those businesses are affecting telco’s profits. Unlike the last time, Channels TV didn’t even show a video of him saying anything as such. So is it that he was misquoted by the newspapers?

Please, replies needed

titus3:
OP I hail o. Very well written piece.

As much as we know these telcos and the NCC tend to say a lot of unreasonable things, but did MTN’s CEO actually say the FG should ban Whatsapp and Viber?

I have read all the newspaper reports, and I also stumbled on the MTN statement posted on their LinkedIn page (see link below)
(https://www.linkedin.com/hp/update/urn%3Ali%3Aactivity%3A6212708488792010752?pathWildcard=urn%3Ali%3Aactivity%3A6212708488792010752&actorCompanyId=2594006&trk=cp-notifications-click-on-like).

I might be wrong, but their CEO did not say that they should ban Whatsapp and Viber. He only said that those businesses are affecting telco’s profits. Unlike the last time, Channels TV didn’t even show a video of him saying anything as such. So is it that he was misquoted by the newspapers?

Please, replies needed

he did not outrightly say "ban whatsapp" he said "take action like the one taken in UAE" which is UAE banned whatsapp and others.

Didn't read, but I'm sure you made sense.

Mallams have taken over our ICT industry. Nigerians ntooor

D battle line has been drawn NIGERIANS it's time to stand for your right #NoToDataIncrease

charlesklaus:
MTN and greediness be like

Wetin concern this thread with MTN greediness??

Hey God come to our rescue, the only thing that remains for the poor masses this government again wants to take it away from us. So where do we go from here. ?

Ok

Useless government!!!

dasphinx1:
Front page material

Am sure u didn't even read it

Nicely n intelligently done op , enough said .