NCC seeks fair, sustainable competition, plans new study

Nigerian Communications Commission

The Nigerian Communications Commission (NCC) has commenced a comprehensive study to assess the level of competition in the country’s $76 billion telecommunications sector.

The study, when completed, is expected to address concerns around market dominance, ensure fair, effective and sustainable competition and prepare the sector for competition in the emerging technology space.

This was revealed yesterday in Lagos at a stakeholders’ forum on the Study of Competition in the Nigerian Telecommunications Industry, organised by NCC in collaboration with PricewaterhouseCoopers (PwC).

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

Mohammed said the telecommunications sector, which contributed about 9.1 per cent to Nigeria’s gross domestic product (GDP) as of the third quarter of 2025, had undergone significant changes in revenue models, investment patterns and market interactions.

She noted that rapid technological change, evolving consumer behaviour, rising investment costs and heightened competitive pressures had increased concerns around market concentration, barriers to entry and the sustainability of smaller players.

According to her, the last comprehensive, industry-wide competition study conducted by the Commission was concluded in 2013, while subsequent studies focused on specific services and market segments.

Mohammed explained that developments in technology, market structure and consumer behaviour now necessitated a holistic reassessment of competition across the telecommunications value chain.

Saying the sector also serves as a critical enabler of growth, inclusion, innovation and service delivery across all sectors of the economy, she, however, observed the telecom market has evolved significantly over the past years, revenue models have shifted, investment patterns have changed, and new forms of market interaction have emerged. She said the study was diagnostic and evidence-based, stressing that it was 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 shifts in the global telecommunications industry.

Odunlami said the global telecoms sector was projected to reach about $1.3 trillion by 2028, but growth had slowed to about two to three per cent yearly, compared to about four per cent year-on-year before the COVID-19 pandemic.

He noted that while subscriber numbers in sub-Saharan Africa continued to increase, most operators were experiencing declining average revenue per user (ARPU), intensifying competition and placing pressure on traditional business models.

According to him, consumer behaviour has changed, with users now digital-first and seeking experiences powered by connectivity rather than just voice or data services.

“Today’s consumers are not just buying data; they are looking for digital experiences such as entertainment, financial services, self-service applications and social connectivity, with data serving as the backbone,” Odunlami said.

He said globally, telecommunications operators were rethinking their business models by integrating lifestyle services into their platforms, allowing users to access utilities, health services and fintech offerings through mobile applications.

Odunlami added that over-the-top (OTT) platforms such as WhatsApp and Microsoft Teams had shifted traditional voice and messaging revenues, making data the primary driver of communication and service delivery.

The evolution of technology, according to him, includes the rollout of 5G and future 6G networks, which would further reshape competitive dynamics, “although adoption in Nigeria and sub-Saharan Africa remained constrained by infrastructure gaps, low investment in research and development, and slow uptake of 5G-enabled devices.”

According to him, short to medium-term 5G adoption in SSA was projected at 14–17 per cent, significantly below global averages, underscoring the need for policy and investment support.

Odunlami said the NCC-PwC study would assess market dynamics, identify sources of market power, and provide evidence-based recommendations to promote fair competition, innovation and service quality.

He added that the study would rely on accurate, timely and complete data submission by stakeholders, with confidentiality assured under existing non-disclosure agreements.

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