NCC Enhances Colocation and Infrastructure Sharing Market with PwC Study on Competition Level

The Nigerian Communications Commission (NCC) has initiated a comprehensive study to evaluate the existing level of competition in the colocation and infrastructure sharing (CIS) segment of the Nigerian telecommunications sector. Currently, there are seventy-eight licensees operating in this market segment.

The study aims to provide the Commission with valuable insights and evidence-based information about the dynamics at play in order to ensure the continuous growth of the CIS segment and robust services within the telecom market. To carry out this study, the NCC has enlisted the expertise of Price Waterhouse Cooper (PwC), a renowned global consulting firm. This initiative aligns with the regulatory responsibilities conferred upon the NCC by the Nigerian Communications Act (NCA) of 2003. The study is expected to be completed between April and July of 2022.

During a recent stakeholders’ forum organized by the NCC in Lagos to announce the commencement of the study, Yetunde Akinloye, the Director of Policy, Competition, and Economy Analysis (PCEA) at the NCC, represented Prof. Umar Garba Danbatta, the Executive Vice Chairman of the Commission. Akinloye highlighted the significance of the forum, which aimed to inform operators in the CIS segment about the study and garner their support and cooperation for the consultants conducting the research.

Akinloye emphasized that as part of its mandate to create an enabling environment for competition among industry operators and ensure the provision of high-quality and efficient telecommunications services, the NCC regularly conducts studies to assess the level of competition in the sector. She mentioned that previous competition assessment studies were conducted in 2005, 2010, and 2013, leading to determinations and regulatory interventions that promoted fair and sustainable competition in the Nigerian telecom industry.

Despite the notable progress made by the Commission, Akinloye acknowledged that since the completion of the 2013 study, significant developments and activities in certain market segments necessitated another competition study. In particular, the CIS market segment has experienced substantial growth and transformation over the years, with approximately 80 licensees currently operating in the segment. Akinloye also highlighted the impact of CIS activities on other segments of the Nigerian industry and their alignment with the targets set out in the Nigerian National Broadband Plan (2020-2025).

The primary objective of the study is to provide up-to-date insights into the level of competition in the CIS market segment and formulate strategies to enhance market opportunities. This will facilitate the deepening of competition, leading to the provision of innovative services that benefit both market players and consumers at large.

Akinloye emphasized the NCC’s participatory approach to regulation, stating that the stakeholders’ forum was an opportunity for participants to gain a thorough understanding of the study’s objectives, scope, and methodology, as well as to provide input on the questionnaire or Request for Information (RFI) developed by the consultants to assess competition levels.

In addition to Akinloye’s remarks, Bako Wakil, the Director of Technical Standards and Network Integrity at the NCC, sought the full cooperation of CIS licensees in providing relevant information to the consultants. Wakil highlighted the study’s significance for licensees, other industry players, and consumers, as it would provide valuable insights to ensure healthy competition, a level playing field, and sustainable growth in the telecommunications industry.

Mary Iwelumo, a partner at PwC, reiterated the objectives of the study and urged telecom stakeholders to cooperate with the firm by providing accurate, timely, and comprehensive responses to the RFI or questionnaire. Iwelumo explained that PwC’s tasks would involve gathering data, reviewing and analyzing information from the Commission, operators, and other jurisdictions for benchmarking purposes, engaging stakeholders for feedback after the market assessment, and making recommendations based on the findings.

ncc.gov.ng