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NCC plans effective telecoms services transmission pricing

25 March 2015, 11:11

Lagos - The Nigerian Communications Commission (NCC) on Tuesday said that it was on the verge of ensuring that there was cost-based transmission pricing of services in the country's telecommunications industry.

The Executive Vice Chairman, NCC, Dr Eugene Juwah made this known in Lagos during a Stakeholders Forum on the "Determination of Cost-based Transmission Pricing in the Telecommunications Industry", organised by the commission.

Juwah, who was represented by the Executive Commissioner, Stakeholders Management, NCC, Dr Okechukwu Itanyi said that there had been disparity in the cost of transmission cable, with regard to the transmission cable market of the industry.

He said that in February 2014, the regulatory body held an interactive session with the operating companies, which was focused on competitive dynamics, pricing and related matters.

According to him, some of the issues raised regarding transmission cable market are discriminatory and arbitrary pricing, predatory pricing and denial of access to viable routes, among others.

''In order to address the current arbitrary, predatory and discriminatory pricing inherent in the transmission line market segment, the NCC is to urgently conclude on the cost-based transmission cable pricing study and develop strong enforcement regulations.

''The policy of the government on communication is that appropriate prices should be determined by market competition.

''It also recognises that in the journey from monopoly to full market competition, there would be period(s) of transition when competitive market forces may be inadequate to bring about efficient market conduct and prices that are close to costs.

''On such situations, the policy provides that regulatory intervention goes into effect,'' he said.

The EVC said that this was the reason why NCC embarked on the cost study titled ''Cost-Based Transmission Cable Pricing and Development of an Accounting Separation Framework/Retail Voice Tariff''.

Also read: NCC stops Buhari’s fund raising platforms

The Partner, Management Consulting, KPMG Professional Services, Joseph Tegbe, said that the firm was consulted two years ago to carry out the study.

Tegbe said that the result of the study was ready and appealed for the opinions and input of stakeholders, so as to arrive at a final regulatory framework.

He said that the primary objective of the project was to develop a cost-based option for regulating the pricing of transmission cable in the Nigerian telecom industry.

Josephine Amuwa, the Director, Policy Competition and Economic Analysis, NCC said that the regulatory body believed in participatory regulation as it discharged its regulatory and oversight functions.

Amuwa said that on the long run, the study would effect the review of the price cap, which would in turn relate to reduced cost for consumers of telecommunication services.

She said that one of the functions of the commission was to ensure that the Nigerian telecommunications market remained competitive.



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