Confusion as NCC denies approving Visafone spectrum sale it approved a year ago

folarin okunola

October 4, 2016 9:41 AM

What makes this mind-boggling is that the NCC itself approved the Visafone spectrum sale

Prof. Umar Garba Danbatta, NCC CEO/EVC

Remember when MTN announced that it had acquired Visafone, then went on to start testing Visafone's 4G capability via its 800Mhz spectrum? Well, now the NCC is saying that it only approved of the Visafone acquisition and - get this - not the spectrum.

The NCC's reason? It doesn't want MTN to further dominate its peers. That’s not absurd at all. What makes this further mind-boggling is that the NCC itself approved the Visafone spectrum sale and made an announcement to the same effect in its own internal magazine.

I simply can't wrap my head around this kind of about-face move from the NCC. Any company worth its salt will definitely want to increase its market share (which is all MTN is trying to do) and the entire point of the Visafone acquisition was for that spectrum, not Visafone's plenty wahala.

ALSO READ: Dino Melaye accuses telecom company of illegally transferring $12 billion out of Nigeria

Moreover, why is the NCC changing mouth now, a full year after giving approval? Why didn't it deny approving the sale back then? What has changed between then and now?

I'll give you an idea: Etisalat is carrying on an "antitrust" suit against MTN, so it is completely possible that the other telcos are lobbying the NCC to kill the MTN/Visafone deal because it will "further promote [MTN's] dominant operatorship status in the country." Makes sense, right?

Also, Financial Watch Nigeria reports that the "NCC promised to come up with price cap for wholesale services and price floor for retail services subject to periodic review while accounting separation will also be implemented."

Internet prices only crashed (became way cheaper) because the NCC removed its price floor, something that could be swiftly reversed with this its new policy. Baba God, over to you.

folarin okunola