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MTN ordered to collapse on-net and off-net call rates

The Nigerian Communications Commission (NCC) has ordered MTN Nigeria to collapse its on-net and off-net voice services in a bid to manage competition in the mobile market.

A report published by the NCC claims calls made to other networks from MTN cost three times more than calls between subscribers.

Eugene Juwah, executive vice chairman of the NCC, said the commission will soon determine a pricing principle addressing costs of on-net and off-net voice calls for all networks operating in Nigeria.

“As a result of the determination outlined above, the commission has resolved to immediately enforce and implement accounting separation on the dominant operator, ensure that the differential between the on-net and off-net retail tariffs will immediately collapsed, while the tariff for on-net and off-net will be the same and subject to periodic review,” Juwah said.

In the report, titled “Determination of dominance in selected communications markets in Nigeria”, the NCC noted the nation’s mobile voice sub-sector is not yet highly competitive.

It added that MTN is currently the nation’s dominant telecoms operating company.span>

Juwah added: “The commission may require the dominant operator to submit details on specific aspects of its operations from time as the need arises.

“The commission will immediately enforce and implement account separation on the joint dominant operators.

“The commission may require any of the joint dominant operators to submit details on specific aspects of its operations from time to time as the need arises.”

Posted in: Telecoms

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