989900D:
If the figures flying around are anything close to the truth, then I must say:

Buhari's administration is clearly trying so hard to burn whatever is remaining of the trust the people have in it; aggressively advertising for a massive revolt and utter rejection with all these ill-thought-out stupidities . . . increase in everything, without a dime increase in wages?

ATEOTD, Buhari and his entourage are probably somewhere forgetting they are NOTHING without 'we the people', we revolted against 'almighty PDP' and left it in tatters, we will do it again.

bolanto24:
Barbaric and wicked government. The worst in Nigeria's history.

Emekamex:


You got played son, there is nothing like "almighty" PDP or APC by the way, the corrupt politicians only changed party from PDP to APC, no ideology was changed; things are still the way it is.
We will only get it right when the right set of people new to Nigerian politics are put in charge and not by recycling corrupt politicians and be fooling ourselves in the name of change.

989900D:


"To each his own", at the least, it is less of share the money now.

989900D:
If the figures flying around are anything close to the truth, then I must say:

Buhari's administration is clearly trying so hard to burn whatever is remaining of the trust the people have in it; aggressively advertising for a massive revolt and utter rejection with all these ill-thought-out stupidities . . . increase in everything, without a dime increase in wages?

ATEOTD, Buhari and his entourage are probably somewhere forgetting they are NOTHING without 'we the people', we revolted against 'almighty PDP' and left it in tatters, we will do it again.

AZeD1:

The data increase has nothing to do with Buhari and its a purely NCC matter.

I understand were NCC is coming from and in the long run, its purely in the interest of the consumers unfortunately, Nigerians are generally short term thinkers.

AZeD1:

The data increase has nothing to do with Buhari and its a purely NCC matter.

I understand were NCC is coming from and in the long run, its purely in the interest of the consumers unfortunately, Nigerians are generally short term thinkers.

989900D:


Explain.

AZeD1:

Predatory pricing. The Big four can sell data to consumers below market rate to increase market share, once the smaller players are out of the market, they increase the price/ deliver poor services and the consumer has no choice.
This is not the first time NCC has forced a telco to increase prices. MTN dropped on net calls to a ridiculous rate and while that looked good for the subscribers, it was bad for the economy. By reducing the call on net call rates, MTN knew that with their large market share, their subscribers won't call other networks, thereby forcing other subscribers on to their network.

It the same thing with Data, GLO started it and they didn't do it because they love their subscribers, they just have enough clout to run at a loss for a while till their competitors close shop.

Its the same reason nobody can compete with Dangote in Nigeria.
Its the same reason Facebook freebasic was not allowed in India but we foolishly allowed it here.

989900D:


The above is so laughable in a capitalist economy.

OTOH, so, the masses take the hit for the smaller companies? Good logic.

AZeD1:

Predatory pricing. The Big four can sell data to consumers below market rate to increase market share, once the smaller players are out of the market, they increase the price/ deliver poor services and the consumer has no choice.
This is not the first time NCC has forced a telco to increase prices. MTN dropped on net calls to a ridiculous rate and while that looked good for the subscribers, it was bad for the economy. By reducing the call on net call rates, MTN knew that with their large market share, their subscribers won't call other networks, thereby forcing other subscribers on to their network.

It the same thing with Data, GLO started it and they didn't do it because they love their subscribers, they just have enough clout to run at a loss for a while till their competitors close shop.

Its the same reason nobody can compete with Dangote in Nigeria.
Its the same reason Facebook freebasic was not allowed in India but we foolishly allowed it here.

Olabestonic001:


Your analysis seems economically correct but it falls short on the true knowledge of the telecommunication sector.

AZeD1:

The data increase has nothing to do with Buhari and its a purely NCC matter.

I understand were NCC is coming from and in the long run, its purely in the interest of the consumers unfortunately, Nigerians are generally short term thinkers.

folhenrry4flizzy:
Let's come together and say 'NO' to
increament in Data, Drivers's license, plate no e. t. c. They are increasing everything now because we kept quiet when they increased fuel pump price. Let's say nooooooooooo! with one voice.

AZeD1:

Predatory pricing. The Big four can sell data to consumers below market rate to increase market share, once the smaller players are out of the market, they increase the price/ deliver poor services and the consumer has no choice.
This is not the first time NCC has forced a telco to increase prices. MTN dropped on net calls to a ridiculous rate and while that looked good for the subscribers, it was bad for the economy. By reducing the call on net call rates, MTN knew that with their large market share, their subscribers won't call other networks, thereby forcing other subscribers on to their network.

It the same thing with Data, GLO started it and they didn't do it because they love their subscribers, they just have enough clout to run at a loss for a while till their competitors close shop.

Its the same reason nobody can compete with Dangote in Nigeria.
Its the same reason Facebook freebasic was not allowed in India but we foolishly allowed it here.

FunkyMetahuman:
okay lemme see.

I run a poultry business as a side business.
Big farms like zartech, Obansanjo farm etc sell their own eggs to customers at way cheaper price because they get their feeds directly from the farmers, I couldnt afford to sell my own eggs at the same rate as the big companies.

Should the government come to my rescue by increasing the price of eggs for the consumer or loan me enough money or incentives to be able to compete with bigger companies?

Why should consumer bear the brunt of my own inability to compete?

AZeD1:


Germany forcing a company to increase prices
http://www.nytimes.com/2000/09/09/business/international-business-germany-says-wal-mart-must-raise-prices.html

French company fined for reducing data cost
http://www.computerweekly.com/news/2240051768/Wanadoo-fined-1035m-for-stifling-competition


Amazon fined for free shipping in France.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2783710/France-hits-Amazon-with-1000-a-day-fine.html


Examples of countries that have forced companies to increase price so you know its not a "Buhari is trying to silence the masses issue".
If you don't understand predatory pricing you can't understand what i am saying.

FunkyMetahuman:
first, because it happened in other country doesn't make it right? Did you know how hard people must have campaigned against such policies in other places too?

Did you notice all the links you posted happened around 2000?

And you didn't answer my question..


By the way, you really don't understand predatory pricing.
You can only fear predatory pricing in a case where only one company is the one producing a particular product, then reduced the price to prevent entrant.

Exactly what Dangote, is doing with cement, which has made it hard for other people to invest in cement.. Same thing he is gonna do when his refinery comes on board.

Reduce the price when there is competition and the increase it when there is no competition.

Can we say the same about Nigeria telecommunication?
We have 5 solid companies that are ready to battle it out any day.
Even if the small competitions pack up, is it gonna change anything?

AZeD1:

Nigerian Telcos would practice predatory pricing if giving the opportunity. MTN tried doing it by reducing on net calls but NCC imposed a floor price.
Glo is doing the same thing with Data (they sell wholesale and also retail).

MTN has the voice market share, Glo is gunning for Data market share, who says the two companies can't make a pact to force Airtel and Etisalat out of the market?

I know Dangote is doing it but if someone tries to regulate him, people would say and Buhari /(insert politician) here hates the masses

Its wrong for people to put the blame on Buhari or ascribe this to politics when its purely a business matter.

FunkyMetahuman:
and what will etisalat and Airtel be looking at when Glo and Mtn are gunning for data and call shares?

FunkyMetahuman:
Think about it, if the all the telecoms company have similar data price, what is the point of choosing Mtn over Airtel, or Glo over etisalat since you are gonna get the same value for your money wherever you go.

4Play:
AZeD1

Your point is superficial given the absence of the publication by the NCC of a document detailing how they calculated that the pricing adopted by the Big 4 amounts to some form of unfair market practice. (I may have missed such publication so I would be obliged if you can point me in the right direction).

Notably, the examples you give are individual companies with inordinate market share being singled out for punishment, e.g Amazon. To tell the 4 leading companies to increase their prices to accommodate new entrants smacks of influence peddling, i.e., politically connected new firms seeking to use govt leverage to expand market access.

Further, without a clear and transparent process - as we would have in the West - with open and public hearings/consultations involving affected firms which allows the public to critique how this decision was arrived at, any such meddling by the government provides further cause for the loss of investor confidence and capital flight (one of the main reasons why Nigeria is mired in recession).

Any intelligent person can concoct an argument as to why an increase in prices is necessary for the masses. In response, I say: show me the maths. Even more importantly, why the lack of transparency?

AZeD1:

MTN has close to 50% of the voice market share, if they drop on net calls to 1N per minute, that would create a calling club whereby MTN users would only call fellow MTN users and by virtue of MTN's market share other subscribers would be forced to get an MTN SIM and there's almost nothing the remaining 3 companies can do about it.

Glo has their own submarine cable, Airtel and Etisalat don't so glo can go the predatory pricing route and there's little Airtel and Etisalat can do to compete.


Quality of service.


All NCC did was set a floor price, and from the data i have seen, Etisalat is currently selling above the floor rate, which in theory means nothing would have changed for Etisalat.


I don't support price controls but with the kind of people we have in Nigeria, trust me if they are not checked, they'll fleece the populace without blinking.