NCC Orders MTN To Collapse Rates

TELECOMMUNICATIONS regulator, the Nigerian Communications Commission, has ordered MTN Nigeria to collapse the rates for its on-net and off-net voice services, which it said has a 300 per cent differential with effect from tomorrow, May 1.

The NCC, in a report titled, ‘Determination of dominance in selected communications markets in Nigeria,” signed by Mr. Eugene Juwah, Executive Vice Chairman, 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.

The NCC also disclosed that competition in the Nigerian mobile voice market is not highly competitive, and using what it called the HHI, said MTN with 44 percent of the market share has emerged the dominant operator in the mobile voice segment.

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.

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.

“The Commission may require the dominant operator to submit details on specific aspects of its operations from time as the need arises.”

Continuing, in the wholesale Leased Lines and Transmission Capacity market, which are in the upstream segment of the telecoms market, the NCC said the dominant operators, MTN and Glo jointly control 62 per cent of the market, and they shall be required to adhere to the following obligations as the Commission will come up with a price cap for wholesale services and price floor for retail services, and subject to periodic review.

“The Commission will immediately enforce and implement account separation on the joint dominant operators.

“The commission may require any of the joint dominant operators to submit details on specific aspects of its operations from time to time as the need arises.

“The determination shall take effect from 1st May 2013 and remain valid and binding on Licenses for the services specified in relevant market segments of the section, until further reviewed by the Commission.”

NCC said there are about 113 million mobile phone subscribers at the end of 2012, with MTN Nigeria leading with 47 million lines.

Globacom followed with 24 million users, Bharti Airtel had 23 million customers while Etisalat, had 14 million.

Source: http://www.vanguardngr.com/2013/04/ncc-orders-mtn-to-collapse-rates/

This is the kind of news I like to hear.
On net- #2 per min
Off net- #5 per min
Sms- 50k


I know, I too like myself.. I just hope it wouldn't cost people their jobs or reduce the employment they offer.

I like the fact that NCC seems to always go after MTN (most of the times), they control the largest share of the market, yet their network is not up to standard, coupled with their outrageous charges, it's about time!!!

NICE IDEA

wow! 44% market share! MTN is equal to or greater than any two other operators combined!
MTN=Glo+Airtel
MTN>Airtel+Etisalat
No wonder internet with other operators is faster than MTN's, there is nobody using it!
But I still get 5.23mbps steady on my MTN.

Mtn will simply go packing very soon.

imagine how they ruined the F&F tariff plan.

^^^

I hate MTN. I don port o

I dnt bliv u ppl again nor be here i read say all voice call go crash to 4k/s on april 1st. Wetin kn happn?? Abi na april fool?? If u dnt lyk mtn PORT!!

NCC, how about your recent new interconnect tariff regime? Why is it that, one month after, no network operator in Nigeria have effected this change on their network?

Why should NCC be complaining when the 44m others still believe they are the best .
Abeg MTN continue ur charges joor

We want them to reduce their call rate though...

gOOD nEWS... iTS pAY bAcK tIMe......

But wetin Emty Hen Do Nah? what of other network ?

Yungwizzzy: I dnt bliv u ppl again nor be here i read say all voice call go crash to 4k/s on april 1st. Wetin kn happn?? Abi na april fool?? If u dnt lyk mtn PORT!!

It was widely reported in the media as well and not only on Nairaland but I am equally surprised just as you are that the policy only featured on the pages of the newspapers. If that's done,the issue of Mtn call-cost difference would have been a thing of the past.

Good one NCC,pls let other parastatal that control the public sector wake up.This kind of huge profits that banks are making on nigeria is it encouraging?.How can an Organisation do business in 1 yr and make profit of N50B after paying tax.

Lets go May.

So does it mean dat I can call Airtel or Glo for as low as 8k/Secs?

KrisJay: Good one NCC,pls let other parastatal that control the public sector wake up.This kind of huge profits that banks are making on nigeria is it encouraging?.How can an Organisation do business in 1 yr and make profit of N50B after paying tax.

Which kind bad belle be this abeg

Na today them start to cheat us? MTN's (Most Troubled Network) major goal is to robe Nigerians with exorbitant call rates and monopolize the mobile biz yet the quality of their service is still the WORST.

Imanuelle: Mtn will simply go packing very soon.

imagine how they ruined the F&F tariff plan.

And what after they go parking? You don't think of the implications? It's not about seeing the back of your 'supposed enemy'. It's what happens afterwards that matter.

And Family and Friends issue? System failure...already resolved#

Another story again?

MTN has the cheapest on net calls? Even three times cheaper than any other operator? Unbelievable!

NCC should have made others bring their(on net calls) down instead of compelling MTN to bring off net call charges down.

Nigeria currently have close to 18,000 base stations in total ( all operators combined), MTN has more than 7000, which around 40% (estimated). Their market dominance is no fluke.

Other operators need to roll out massively,

Telecoms services is a game of numbers, you need to continously invest and expand or you will be left behind.

I think GLO's sojourn into Ghana really slowed them down here. Otherwise MTN won't give everyone so much gap. Etisalat came so late and the constantly changes of ownership in Airtel didn't help.

Don't blame MTN, blame the others for not having a superior business strategy.

my problem no be MTN,what of Dstv tarrif my problem no be MTN,what of Dstv tarrif

rman: MTN has the cheapest on net calls? Even three times cheaper than any other operator? Unbelievable!

NCC should have made others bring their(on net calls) down instead of compelling MTN to bring off net call charges down.

Nigeria currently have close to 18,000 base stations in total ( all operators combined), MTN has more than 7000, which around 40% (estimated). Their market dominance is no fluke.

Other operators need to roll out massively,

Telecoms services is a game of numbers, you need to continously invest and expand or you will be left behind.

I think GLO's sojourn into Ghana really slowed them down here. Otherwise MTN won't give everyone so much gap. Etisalat came so late and the constantly changes of ownership in Airtel didn't help.

Don't blame MTN, blame the others for not having a superior business strategy.

Bros dat's why dey are going afta Empty Hen, empty has been setting d precedence ryt from wen d other vmobile got confused. As d biggest controller of d market dey decide d rates and others follow. Their is really no competition wen it comes to off-net calls cos none of d ntwrk's are offering any beta off-net call rates witout having to put a clause or condition on the package. Dat's why ppl wuld rather call mtn with mtn, glo with glo and vice versa. Once d differential btwn on-net and off-net calls dat is wen nigerians can really heave a sigh of relieve.

i check d above responses and i laugh in spanish igbo..... if mtn is mandated to reduce call rate simply because they av more subscribers, ASK URSELVES THESES QUESTIONS....
1.what do u think will happen to d nos of subscribers?----

2.If their call rate is obviously cheaper dan other networks, who do u think will av more ported nos on their network?---

3. what will happen to d call rate of other networks? increase or no change?......


IT'S A WIN-WIN FOR MTN!!! _{abi na another strategy from MTN?}