firms calls for effective implementation of Unified License rules
By Jonah Iboma
The success of the unified licence regulatory regime recently introduced into the telecommunications sector could depend largely on how effectively its rules are enforced, Managing Director of national fixed wireless operator, IpNX Nigeria Limited, Mr. Ejovi Aror, has stated.According to him, since the new regime effectively gives room for both large operators and smaller ones to play in the same field, some operators may take advantage of the opportunity and introduce anti-competitive practices. Ejovi, in an interview with our correspondent on Thursday, noted that while the new policy regime had the potential to lead to the provision of better service to consumers, it could also bring about the demise of smaller players.According to him, this can happen if big players enter the same field where some smaller players now operate and decide to drop prices as a competitive tool. On the calls for mergers by smaller operators as a way of becoming bigger players in the sector, Aror noted that the effort would not necessarily lead to the desired competition in the sector, because many smaller operators were only operational in certain locations in the country.He added, “ When you look at telecoms spread in Nigeria, you have all the PTOs concentrated in some cities where almost every operator exist, Lagos Abuja, Port-Harcourt with a few in Kaduna and Kano. If these companies merge, you will still be playing within the same terrain.” Will merging give operators the capital to expand to places where they do not cover? So if operators do not have the means to expand, merger would only be a process.”He noted that it would have been better if there were regional dominant players in the various zones of the country as this would help quicken the pace of rollout. Ejovi added that ipNX had concluded plans to participate in the new regime and had commenced steps towards getting the unified licence. He stated that the move by the NCC was very encouraging from investment perspective, as it had lowered the cost of entry into the realm of providing a wide range of telecommunications service, including digital mobile service.
The success of the unified licence regulatory regime recently introduced into the telecommunications sector could depend largely on how effectively its rules are enforced, Managing Director of national fixed wireless operator, IpNX Nigeria Limited, Mr. Ejovi Aror, has stated.According to him, since the new regime effectively gives room for both large operators and smaller ones to play in the same field, some operators may take advantage of the opportunity and introduce anti-competitive practices. Ejovi, in an interview with our correspondent on Thursday, noted that while the new policy regime had the potential to lead to the provision of better service to consumers, it could also bring about the demise of smaller players.According to him, this can happen if big players enter the same field where some smaller players now operate and decide to drop prices as a competitive tool. On the calls for mergers by smaller operators as a way of becoming bigger players in the sector, Aror noted that the effort would not necessarily lead to the desired competition in the sector, because many smaller operators were only operational in certain locations in the country.He added, “ When you look at telecoms spread in Nigeria, you have all the PTOs concentrated in some cities where almost every operator exist, Lagos Abuja, Port-Harcourt with a few in Kaduna and Kano. If these companies merge, you will still be playing within the same terrain.” Will merging give operators the capital to expand to places where they do not cover? So if operators do not have the means to expand, merger would only be a process.”He noted that it would have been better if there were regional dominant players in the various zones of the country as this would help quicken the pace of rollout. Ejovi added that ipNX had concluded plans to participate in the new regime and had commenced steps towards getting the unified licence. He stated that the move by the NCC was very encouraging from investment perspective, as it had lowered the cost of entry into the realm of providing a wide range of telecommunications service, including digital mobile service.
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