MTN Nigeria at mercy of regulators

Nigerian regulators warned they may have to take action to boost competition in the telecommunications industry, a move that could affect international operators including market leader MTN Group.

While a formal inquiry is not under way, authorities are focusing on ownership of data services and infrastructure in Africa’s most populous nation, said Babatunde Irukera, executive vice-chair of the Federal Competition & Consumer Protection Commission.

“We are slicing it a little slimmer than who has the most subscribers. We are looking more at data capability and data infrastructure,” he said. “Early indications show that, depending on how it ends, we may have to take certain actions.”

Irukera declined to name a specific company that could be targeted. MTN was awarded additional broadband spectrum earlier in 2019 after a lengthy regulatory battle in which some rivals accused the Johannesburg-based carrier of undermining competition.

EARLY INDICATIONS SHOW THAT, DEPENDING ON HOW IT ENDS, WE MAY HAVE TO TAKE CERTAIN ACTIONS

The company has fought a number of battles with local authorities in its biggest market, and paid a fine of about $1bn in 2016 for missing a deadline to disconnect certain subscribers.

London-listed Airtel Africa and local operator 9Mobile claimed in a 2018 public inquiry that the transfer of 800 MHz from Visafone Communications to MTN could lead to a monopoly in an industry that represents more than 10% of Nigeria’s economy.

MTN has denied that it is reducing competition for spectrum. Any potential measures may involve opening up spectrum to new bidders or ordering a firm to give up a frequency, said Irukera.

He added that the concerns stem from an ongoing World Bank-led study about spectrum democratisation in West Africa. Any actions will be carried out in consultation with the Nigerian Communications Commission, Irukera said.