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Africa’s largest telecom firm, MTN, has said the activities of
‘over-the-top’ companies like WhatsApp have adverse effects on the
sustainability of Nigeria’s telecommunications industry.
The company’s Chief Executive Officer, Ferdinand Moolman, said this
while making a presentation at a hearing convened by Senate Committee on
Communications on Tuesday.
The hearing chaired by Adeola Olamilekan, vice-chairman of the
committee, was organised following the now suspended data tariff hike by
the Nigerian Communications Commission.
Last week, NCC had directed the major telecommunications companies to
increase data price in order to allow “new entrants” acquire market
share and operate profitably. The policy was later suspended following
public outcry.
The Senate also asked the regulatory agency to halt the policy.
At the Tuesday’s hearing, Mr. Moolman, highlighted factors impacting Nigeria’s telecommunications industry.
Among these factors, Mr. Moolman mentioned “the depletion of operator
revenues by unlicensed providers of “over-the-top” telecoms services
who do not have any physical presence; nor pay any taxes; nor make any
significant contribution to employment or other socio-economic
objectives of government in Nigeria.”
Mentioning WhatsApp, Viber etc., he said these companies were eroding
gains of Nigeria’s telecom companies and asked Nigeria to take action
like the United Arab Emirates did.
He also lamented the inability of operators to access foreign exchange.
“This is particularly debilitating given that most of our inputs are
sourced off-shore. This has very significantly increased both operating
and capital expenses.”
Also, speaking at the hearing, NCC’s boss, Umar Dambatta, said the move by the NCC last week was to ensure competition.
Mr. Dambatta said major telecom firms offering data at low cost would
later raise the price after pushing competitors (new entrants) out of
market.
Communications Minister, Adebayo Shittu, told the hearing he was not consulted by the NCC before issuing the directive.
Another major telecom firm, Globacom, however, said floor pricing should be left to market forces and not to the regulator.
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