NCC Probes Telecom Competition over Market Dominance Risks

 

 

The Nigerian Communications Commission (NCC) has launched a comprehensive competition study in the telecommunications sector as part of efforts to address concerns over market dominance and promote fair, effective and sustainable competition.

The Commission disclosed this at a stakeholders’ forum on the Study of Competition in the Nigerian Telecommunications Industry, held in collaboration with PricewaterhouseCoopers (PwC) in Lagos on Tuesday.

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Speaking at the forum, the Head of Tariff, Policy, Competition and Economic Analysis Department at the NCC, Mrs Omotayo Mohammed, said the study was necessary to validate existing competition policies against current market realities.

She noted that the telecommunications sector, which contributed about 9.1 per cent to Nigeria’s Gross Domestic Product (GDP) as at the third quarter of 2025, has witnessed major shifts in revenue models, investment patterns and market interactions.

According to her, rapid technological change, evolving consumer behaviour, rising investment costs and increasing competitive pressures have heightened concerns around market concentration, barriers to entry and the long-term sustainability of smaller operators.

Mohammed explained that the last industry-wide competition study conducted by the Commission was concluded in 2013, while subsequent assessments focused on specific services and market segments.

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She stressed that developments in technology, market structure and consumer expectations now require a holistic reassessment of competition across the entire telecommunications value chain.

She added that the current study is diagnostic and evidence-based, emphasising that it is not designed to pre-judge outcomes or single out any operator.

Also speaking, Director, Strategy, PwC Network, Akolawole Odunlami, said the study was timely, given the slowing growth and structural changes in the global telecommunications industry.

He said the global telecoms market is projected to reach about $1.3 trillion by 2028, but annual growth has slowed to about two to three per cent, compared with about four per cent year-on-year before the COVID-19 pandemic.

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Odunlami noted that while subscriber numbers in sub-Saharan Africa continue to rise, most operators are facing declining average revenue per user (ARPU), intensifying competition and mounting pressure on traditional business models.

He said consumer behaviour has shifted significantly, with users now digital-first and seeking services and experiences enabled by connectivity rather than basic voice or data offerings. According to him, data has become the backbone for services such as entertainment, financial services, self-service applications and social connectivity.

Odunlami said telecommunications operators globally are rethinking their strategies by integrating lifestyle services into their platforms, allowing users to access utilities, health services and fintech products through mobile applications.

He explained that Over-The-Top (OTT) platforms such as WhatsApp and Microsoft Teams have disrupted traditional voice and messaging revenues, making data the primary driver of communication and service delivery.

He further said emerging technologies, including the rollout of 5G and the future evolution towards 6G, would continue to reshape competitive dynamics. However, he noted that adoption in Nigeria and sub-Saharan Africa remains constrained by infrastructure gaps, low investment in research and development, and slow uptake of 5G-enabled devices.