The Nigerian Communications Commission has placed two mobile communications operators, MTN Nigeria Communications Limited and Globacom Nigeria, under watch having declared them dominant operators.
This followed a study conducted by KPMG Professional Services.
According to the regulatory agency, measures have been put in place to prevent both companies from exploiting their dominant positions in the Nigerian telecommunications industry.
The decision to put them under watch, it said, was taken, to guide against actions that could undermine competition.
While MTN was declared a dominant operator in two market segments — mobile voice market and wholesale leased lines and transmission capacity market — Glo was declared the leader in wholesale leased lines and transmission capacity market.
A statement issued by Director of Public Affairs, the NCC, Mr. Tony Ojobo, in Abuja on Sunday, indicated that the regulatory agency would deploy all necessary procedures to ensure that both companies did not use their dominant positions in the industry to stifle competition.
According to NCC, although there are several operators in the mobile market, its study shows that the mobile voice market is not effectively competitive.
The regulatory agency said it had, therefore, put measures in place to correct current anti-competitive behaviours being practised by both dominant operators.
Ojobo said, “Dominance, in itself, is not negative because it is an indication of the effectiveness, resourcefulness and strategic decisions of the operator. However, the conduct of the operator determines how its dominance would be perceived, particularly if that conduct is likely to substantially lessen competition and distort the market.
“The necessary regulatory tools to correct current and potential anti-competitive practices such as predatory pricing, margin squeezes and cross-subsidisation by any of the operators with dominant position in any of the market segments or sub-segments are to be applied by the commission.”
Information sourced from the website of the NCC showed that in the mobile voice market, MTN has 44 per cent of the nation’s subscriber base; while Glo and Airtel have 21 per cent each; and Etisalat enjoys a market share of 14 per cent.
No data was provided on wholesale leased lines and transmission capacity market.
On the other market segment, NCC said the fixed voice market had consistently lost share over the past three years and no operator was considered by the study to be dominant.