₦airaland Forum

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?

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.

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?

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?

Olabestonic001:
Your analysis seems economically correct but it falls short on the true knowledge of the telecommunication sector.

989900D:
The above is so laughable in a capitalist economy.

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

989900D:
Explain.

engineerboat:
NCC & APC led Federal Government should know that:

"Competition brings d best out in business. Instead of working to improve quality of service, they are increasing tarrifs."

Cc: lalasticlala

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.

thoollz:
How will you pay 3m for house rent, when u can build a nice apartment with less. People ehn.

deor03:
While you have every right to assume, this particular assumption is wrong

deor03:
Great, but it was not stated that, any operator complained to NCC.

If you see where that is stated, please show me. You see to be inferring that since NCC is set to protect the small players, they must have complained.

When NCC removed the seal , last October, they clearly stated that it was experimental

ogaprime:
So what's the difference between the price peg and all what you have been saying right from first page

Aint there users in telcoms and blogging, aint there market share in telcoms and blogging, aint there losses and shutting down in telcom and blogging.

The reason I brought in blogging to this is that that guy made this service quality more than professionals in his niche, he fought for the survival of his blog. Those small companies should fight for their lives too and stop being "dada that's depending on his younger brother to fight for him"

Rad1cal:
What now happens to the impoverished subscribers ? You better learn to keep shut.

ogaprime:
What happened to the price peg of 1gb data for N1000 that I said NCC should do...did you read the front page post about a blogger that started blogging last year, carving a niche for himself and beating others that are professional in the same niche??

ogaprime:
Then the smaller companies should make better services their stronghold and strength. then NCC should make 1gb data to N1000 as cap price. With that smaller companies can offer at that price with better network services than the bigger companies thereby leading to change in market share in data subscribers

boostdom:
The problem I have with textbook-model pipeliners like you is that you are obtuse about the existential parameters that could make market principles untenable or undesirable.

The soul of a free market economy is competition. Pricing. The history of the Nigerian telecommunications industry provide verifiable data that competitive and aggressive pricing has been the engine behind the overwhelming success of the sector in the last fifteen years.

Without competitive pricing, how long would mtn have continued selling SIMs for over 15k? Thus a militating factor on mobile phone penetration.

Without competitive pricing, how long would mtn have continued to maintain that per second billing is untenable? how about call rates? Data access rate? Heck, wasn't there a time there were two way charges for a call? etc

There is a reason why economics is a social science. Protecting niche competitors in a market where they have almost no footprint is the hallmark of a socialist or communist economy.

openmine:
whether predatory pricing or not?
my own thinking which am directing 2 u is how does it concern d subscribers....?
must we always be the like lone beneficiaries of every tin bad in d country?
r dere no beta policies or structures in place 2 settle such lacuna without affecting d consumers?
All the consumers r asking is for a fair pricing regime and quality services....let d FG provide d enabling environment...Dis sud b d least of deir problems...haba

openmine:
how is d guy making any sense....so d subscribers r now d ones 2 bear d brunt because of inability of d companies u mentioned 2 compete wit oda mobile companies....?
U guys r d reason why the current FG keep churning out insensitive taxes and policies without sparing a tot about how it will affect the common man.....imagine an ncc director claiming dat we have one of d cheapest data price compared 2 oda countries in Africa....smh

deor03:
OK, FYI I have been in this industry for well over a decade.

From your link, where was it stated that 'rather it came about as a result of complaints of the smaller companies and new entrants (Smile and Ntel).'

That is my point, no one complained to NCC. Neither FG nor the new entrants gave a directive or complained to NCC

calyto:
Ok you're right and i'm sorry

openmine:
so u r trying 2 say dat d increment of data is because smile and ntel don't have d "competitive edge" 2 muscle deir way around oda current mobile companies....so if I get u very well,d subscribers will now have 2 suffer because of d obvious inability of small mobile companies 2 "tink out of d box" Abi?

boostdom:
Do you understand the concept of a free market economy? The companies you listed are not government owned nor government run. Why is the govt making regulations for certain private companies in a market oriented niche at the expense of the sector as a whole? Where is the competitiveness when the public have to pay increased fees to support the existence of private firms? Do you even any sort of critical thought?

Check your reasoning because your submission is clearly not why the price of data services was jacked up.

deor03:
Stop saying what you don't know. The directive was sent to all companies by NCC not on the complaint of anyone

calyto:
What was the floor price?
There have NEVER EVER been a floor price for data in Nigeria.
For voice, Telcos cannot go below 11k/sec(i.e 6.60k/min)

calyto:
Well, i am multitasking because i am a very busy person so i may not have broken it down to a level that you will understand.
But you can ask me what you don't understand. Who vex epp? Even if you wan vex, no be with your mate dem?

But i think you should know this-

Unlike voice, there was no floor price for data before now so NCC recently gave a directive that all data plans/offerings must align with a newly introduced data floor price. This benchmark will be painful to data users as some telcos may have to increase their data tariff but it will give these telcos the opportunity of facing how they can improve their quality of service rather than focus on how much competition is selling data.
I disagree that the floor price(minimum allowable price) will be 1.5GB for 3k.
I think it will be between 1200-1500 for 1.5GB.
Does it make small sense now?

signz:
And NCC a parastatal under the Min of Comms ( FG ) just agreed at the detriment of millions of Nigerians

Just because of 2 companies

If it's not from FG, I believe the retinue of Social media SA's must have seen this news and reported it to FG. The FG knows about it and have approved it.

Toylove:
Just hear yourself out.... Did u make any sense?
Abeg make I no pour vexation and frustration on top u ooo

calyto:
Not true.
Just like voice calls, NCC only introduced data floor price (The data floor price is the minimum allowable price per MB).
Before now, there was no floor price so any telco can decide to sell data at any price of their choice.

If it is allowed to continue that way, some of the telcos may fold-up which will lead to job loss and also drive investors away.
Just imagine if Vodacom decides to pull their tariff plans down just to kill smaller telc coys like Lebara.
Rather than wait until that happens(since Glo has been pushing them)NCC decided to introduce floor price. For voice calls, NCCs current floor price is 11k/sec.

The price will still be between the range of 1300-1500 for 1.5G

HungerBAD:
Dead on arrival.

Another gathering of selfish aggrieved people.