A leading Nigeria telecom group says the government should abort MTN Nigeria’s plan to acquire the spectrum of rival 9mobile citing concern that it will create an oligopoly market
Technology times had exclusively report that south Africa’s MTN Group, has reached advanced stages of negotiations to acquire the operating spectrum of 9mobile, the number four MNO in Nigeria formerly Etisalat Nigeria, for its local mobile unit, MTN Nigeria.
Mr Deolu Ogunbanjo, National President of the National Association of Telecoms Subscribers (NATCOMS) in Nigeria, says that the Nigeria communications commission (NCC), should intervene to halt the MTN-9mobile spectrum trade plan to save the nation’s telecoms market.
NATCOMS: If allowed, MTN-9mobile spectrum trade will create oligopoly
Nigeria’s active phone connections reached 20,715,961 subscribers as of August 2023 with the market share split among the four major MNOs: MTN Nigeria 85,005,917 (38.58%); Glo, 61,395,108 (27.86%); Airtel Nigeria, 60,169,082 (27.30%) and 9mobile, 13,791,079 (6.26%), according to NCC.
“I must say that it is a bit surprising that MTN is now trying to talk to, you know, another mobile operator, and in particular through the NCC (Nigeria Communications Commission), to now acquire another spectrum belonging to another mobile network operator. I mean this should not be encouraged because of the fact that already, MTN is having close to 50% of Nigeria’s telecoms market subscription. And there you are, another mobile network operator with less than
10% of the subscription, now want to….. Do you want them extinct? Why do you want to talk to them? Do you want to acquire them? Because by the time you now get the spectrum, the next thing would be that you want is to acquire them, meaning that MTN will now be having between 50% and 60% of the total telecoms subscription in Nigeria. And that is a form of oligopoly’, Ogunbanjo, National President of the National Association of Telecoms Subscribers (NATCOMS) in Nigeria tells Technology Times in an exclusive interview, following the telecoms boy’s reaction to the MTN-9mobile spectrum trade talks
“it is an oligopoly” the NATCOMS President tells Technology Times ” in the sense that yes, there would become three major players. However, a particular player now has a lot influence, which is more than 50% that shouldn’t be taken with a pinch of saly. And that should not be encouraged because MTN will become so powerful to the extent that it will now be Dictating the pave. Whatever it want to do in the telecoms industry in Nigeria, that is what would obtain, because it is having over 50% and getting close to 60% of Nigeria’s total telecoms subscription. I do not also understand why the mobile network operator in question is now allowing MTN, through the NCC to have a shot at their spectrum- Deolu Ogunbanjo, National President, NATCOMS
Ogunbanjo says that the telecoms industry regulator, NCC, should intervene to protect the Nigerian telecoms market and safeguard the interest of other operators and consumers alike from what his group fears as market capture by the nation’s largest MNO, MTN Nigeria
Reminded by Technology Times that Nigeria operate a deregulated telecoms industry that allows for free market play where spectrum trade and other resource swaps among operators and licensees are allowed, the NATCOMS President explains that there are potential competition issues specific to the MTN-9mobile trade talks, which if not addressed by the NCC, may undermine the telecoms market growth in the country
For the NATCOMS President, if the largest mobile operator in Nigeria is allowed to acquire 9mobile’s spectrum, “that would mean that the other operators would now be struggling to compete favorably with MTN which has been having the money and all that to acquire spectrums and all that. Yes free entry, free exit but not to the detriment of Nigeria’ large subscription market as well as Nigeria’s telecoms sector”
Technology Times learnt that Thomas Etuh, the current chairman of 9mobile Board and the former chairman of Board of unity Bank is expected to be i prime mover to conclude the 9mobile spectrum trade deal with MTN Nigeria
The companies are understood to be considering a virtual mobile Network operator (MVNO) arrangement to enable them fast-track the spectrum sale that may see 9mobile piggybacking on the MTN Nigeria network.
……..
For Advertisement, Event Coverage, Public Relations, Story/Article Publication, and other Media Services, kindly send an email to: thelegendnews25@gmail.com. To stay updated with the latest news, health updates, happenings,Sports and interesting stories, visit thelegendnewsng.com . THE OBINJA MEDIA COMMUNICATIONS (Publisher of TheLegendNews/THELEGENDTV)
