NCC moves to protect small operators amid rising complaints by ISPs

The Nigerian Communications Commission (NCC) is implementing measures to safeguard small telecommunications operators in the Nigerian market, amid mounting grievances from Internet Service Providers (ISPs). The Commission aims to use data-driven evaluations to foster equitable competition and prevent smaller operators from facing disadvantages.

Dr Aminu Maida, the NCC's Executive Vice-Chairman, announced this during a discussion on the NCC's study of the competition level in Nigeria's telecommunications sector, held in Lagos. This initiative follows persistent complaints from ISPs regarding the increasing dominance of mobile network operators like MTN, Airtel, Globacom, and T2 in the internet provisioning market.

Maida, who spoke through his deputy, Mrs Omotayo Mohammed, Head of Competition and Tariff Unit at the NCC, clarified that merely having significant market power (SMP) status is not enough to establish anti-competitive practices. He emphasized that dominance can also stem from consistent investment, innovation, and commercial achievements. The preliminary research for the study primarily relied on feedback from surveys and information requests sent to licensed entities and other pertinent stakeholders.

Omotayo Mohammed expressed the Commission's desire to ensure the continued existence and optimal operation of smaller operators amidst the rise of larger players. She highlighted that studies like this one assist the Commission in acquiring the necessary evidence to make well-informed regulatory decisions. In early 2023, Nairametrics reported that the NCC had engaged PricewaterhouseCoopers (PwC) to conduct an extensive examination of competition within Nigeria's telecommunications industry, following growing concerns about market dominance and the viability of fair competition.

Notably, several industry leaders, including ATCON President Tony Emoekpere, had voiced concerns about the extensive presence of mobile network operators in the sector. Emoekpere commented on the challenges faced by ISPs, attributing their declining customer base to the recent expansion of mobile operators into Fiber to the Home (FTTH) services, a domain previously dominated by core ISPs.