November 18, 2021

Why we’re revising Telecom Numbering Service segment — NCC

By Emmanuel Elebeke

The Nigerian Communications Commission (NCC) says it is revising the Special Numbering Service (SNS) segment of the nation’s telecommunications sector in order to address the perception of high cost of delivering services to end-users in the SNS segment.

The Commission Director, Policy, Competition and Economic Analysis, Yetunde Akinloye, who disclosed this said the move was also taken to ensure sustainability, profitability and fair competition among players in the sector.

According to her, this move informed the decision of the Commission to hold a Stakeholders’ Forum on the ‘Determination of Call Termination Rate for Special Numbering Service Providers in Nigeria.

 The forum, held at the Conference Room, NCC Head Office in Abuja was well attended by representatives of Mobile Network Operators (MNOs), Special Numbering Service (SNS) providers and other stakeholders who participated actively in the discussions.

 Addressing the gathering, Akinloye said the meeting was convened following the extensive work of a committee set up by the Commission to look into the issues and complaints emanating from the SNS segment of the telecoms market.

She noted that a key concern for the Commission was the perception of high cost of delivering services to end-users in the SNS segment.

 “This meeting is convened to discuss issues pertaining to the special numbering services (SNS) segment of the Nigerian telecommunications market. 

Statutorily,  the NCC is the custodian and manager of the toll-free and non-toll-free numbers licenses, on behalf of the Federal Government of Nigeria”, she said.

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 Owing to the scarce and finite nature of the numbers in the sector, she explained that 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 sustainability of the industry.

 “The SNS has been in existence for the past 15 years, with some licensees actively engaged in the segment. However, we have noted some observations and complaints from different quarters on the use of these numbers. We have observed, for instance, that there has been no effective utilisation of the numbers” she said.

 Akinloye also said the Commission had observed that the uptake of the numbers has been abysmally poor, contrary to NCC’s expectation as the sectoral regulator. She stated that NCC has also received complaints from the licensees regarding the perceived high rates aand charges by Mobile Network Operators (MNOs) who are owners of the major infrastructure being used by SNS providers to deliver services to end-users.

 According to her, based on this, the NCC 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.

 She said the Committee had done extensive work in this regard and as part of its rule-making process and regulatory transparency, the NCC has organised the consultative forum “to share outcomes of the Committee’s findings with the licensees, discuss the regulatory interventions that need to be taken and get inputs from all MNOs, SNS providers and other relevant stakeholders.”

 Also speaking during the meeting, Director, Technical Standards and Network Integrity, NCC, Bako Wakil, lamented that the SNS segment of the market has not been fully maximised because of the cost elements involved.

 However, Wakil said, if cost can be reduced, there will be greater benefits from economies of scale. “So, there has to be a way of making people use the service more 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 additional number of players in the segment. Therefore, we are looking at profitability, sustainability and vibrancy of the Value-Added Service segment,” he said.

 However, a new date was fixed for the second phase of the stakeholders’ forum has been fixed on 14th December 2021, after taking inputs from representatives of MNOs and SNS providers at the forum, at which more contributions will be taken to enrich the quality of decisions in that regard. 

With the date fixed, the NCC urged stakeholders to submit additional inputs and send to the Commission by November 30, 2021, for timely assessment and collation before the second meeting.

Vanguard News Nigeria