NCC looking to ensure profitable, sustainable SNS telecoms segment
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The Nigerian Communications Commission (NCC) is to take a decisive regulatory action that would address issues around the special numbering services (SNS) segment of the Nigerian telecommunications market in order to ensure sustainability, profitability and fair competition in the sector.
The NCC disclosed its plan during a stakeholders’ forum tagged ‘Determination of Call Termination Rate for Special Numbering Service Providers in Nigeria’ that was attended by representatives of mobile network operators (MNOs) and special numbering service (SNS) providers.
Yetunde Akinloye, director, policy, competition and economic analysis at NCC, noted that one of the key concerns bothering the sector was the perception of the high cost of delivering services to end-users in the special numbering service segment.
Akinloye pointed out that owing to the scarce and finite nature of the numbers in the sector, the NCC, as the regulator, was under obligation to ensure the utilisation of the numbers by the licensees in a way that delivers value to the final consumers and ensures the sustainability of the industry.
According to her, the SNS has been in existence for the past 15 years with some licensees actively engaged in the segment. She, however, disclosed that observations and complaints from different quarters on the use of the numbers has brought to fore that there has been no effective utilisation of the numbers.
She further stated that the commission had observed that the uptake of the numbers has been abysmally poor, contrary to NCC’s expectation as the sectoral regulator, adding that the NCC had received complaints from the licensees regarding the perceived high rates and charges by MNOs who are owners of the major infrastructure being used by SNS providers to deliver services to end-users.
With regard to this, she said the NCC has set up a committee to do a thorough review of the market segment; research similar markets in other jurisdictions for benchmarking, and determine the appropriate call termination rates, through proper investigation, consultation and stakeholder engagements.
Bako Wakil, director, technical standards and network integrity, NCC, bemoaned the lack of full maximisation of the SNS segment of the market due to the cost elements involved.
Wakil posited that if cost can be reduced, there will be greater benefits from economies of scale, noting that more people would be encouraged to use the service if the price is appropriate.
“In the last 15 years of introducing SNS providers, there are less than 3,000 people using the service and yet, we have licensed an additional number of players in the segment. Therefore, we are looking at profitability, sustainability and vibrancy of the Value-Added Service segment,” he added.
NCC, thereafter, fixed a new date for the second phase of the stakeholders’ forum to enable mobile network operators and special numbering service providers to make decisions and contributions to address the issues in that regard.