- Sunday, April 28, 2024
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A subscriber group, National
Association of Telecoms Subscribers (NATCOMS), yesterday threatened to take
legal action against the Nigerian Communications Commission (NCC) if it gives
approval to the subterranean move by MTN Nigeria to acquire the spectrum of
9mobile as being speculated.
Its National President, Chief
Deolu Ogunbanjo, said the move by MTN to acquire the spectrum of the fourth
operator under any guise should not be allowed, arguing that it is capable of
breeding an oligopolist in the telecoms sector considering the fact that it
currently has about 50 per cent of the total market by subscriber figures.
He said: “We will challenge NCC in
court should it allow that (9mobile’s spectrum acquisition by MTN) to sail
through. With MTN controlling about 50 per cent of the industry, allowing it to
acquire 9mobile’s spectrum which has less than seven per cent of the market
share will spell doom for the industry as MTN would become too powerful. Look
at what is happening in the pay Tv industry where Multichoice would just wake
up and hike tariff at will. If MTN becomes an oligopolist, it will become so
dangerous to the industry.
“Alternatively, all the other
operators should be allowed to partake in the sale should 9mobile actually want
to sell its spectrum.”
Reacting to the development,
Director of Public Affairs at NCC, Reuben Muoka, said it is a commercial
decision between two private companies, saying the Commission would wait for
them to conclude.
“We don't have a reaction to an
ongoing commercial decision of two operators. Our spectrum trading laws are
there. It is not NCC that will be reporting progress of their negotiations or
transactions. Contact them.
“You said we are not saying
anything. Does it suggest they are getting the spectrum from NCC? “What will
NCC say about the transaction between two companies? It’s from them that you will
get information and updates.
“Our own is if any of the parties
seeks information regarding regulatory standing of the other, we shall provide
if it sufficiently informs the commission why the information is necessary.
Otherwise, we won’t be in the room where the negotiation is going on. They can
only come when they consummate to seek approval.
“The rules are clear about
spectrum trading with safe guards for subscriber interest. If the transaction
will affect the industry negatively, NCC will be available to guide and advice
with the application of the relevant rules. That is why the Commission is a
responsible regulator.
“If an operator becomes dominant,
there responsibilities imposed on it to mitigate such dominance so the matter
of a monopolist arising does not arise.
“Also recall there was a time of
exclusivity period which no longer exists. The important thing is to allow the
industry in so far they are playing by the rules.
“It would amount to micromanaging
for NCC to read about two companies negotiating under spectrum rules and jump
in to start directing,” the public affairs director said via an electronic
mail.
While 9mobile has consistently
denied the rumour about any transaction with MTN Nigeria, sources in MTN have
insisted that there’ indeed a conversation around it.
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