The regulatory body of all telecommunications companies in Nigeria, the Nigerian Communications Commission (NCC) has said MTN must raise its tariffs in order to boost competition.
The NCC is referring to an increase in internal tariffs (calls between MTN subscribers) or MTN to MTN calls which oftentimes cost three times less than the price of calling other networks.
The NCC fears that MTN will have an unfair advantage due to the creation of a ‘calling club’, amongst subscribers of a network that hold the largest number in Africa.
MTN, which has about 44 percent of the market, must cut the difference in price and face further scrutiny to ensure the competitive landscape is even for all operators, the NCC said.
Nigeria, Africa’s most populous nation with more than 160 million people, had about 113 million mobile phone subscribers at the end of 2012, according to the NCC. MTN Nigeria, the local unit of Johannesburg-based MTN Group Ltd. (MTN), is the market leader with 47 million lines.