Concern Mounts over Market Dominance as NCC Begins Study on Industry Competition  

Emma Okonji

Smaller operators in the Nigerian telecoms sector have raised the concern over market dominance by the big operators, a development they said could stifle growth of small telecoms operators, if appropriate regulatory measures were not taken.

They therefore called on the Nigerian Communications Commission (NCC) to put regulatory measures in place that would enable both the big and the small operators co-exist profitably in the Nigerian telecoms space.

Industry statistics shows that MTN and Airtel dominate Nigeria’s telecom market, controlling over 86 per cent market share, with MTN alone controlling 51-52 per cent market share and Airtel about 34 per cent, followed by Glo with 12 per cent and T2 with two per cent, while smaller operators still struggle to gain market share.

The smaller operators raised the concern on Tuesday in Lagos, at the stakeholders’ forum on the study on the level of competition in the Nigerian telecoms industry organised by the NCC.

Executive Director, Broadbased Communications Limited, Mr. Chidi Ibisi, who spoke on behalf of the smaller operators said: “We understand the market dynamics in the telecoms sector and we understand those driving undue competition in the telecoms space. We know that the big players have invested heavily in the telecoms industry and they want the larger chunk of the market at all cost, but there is need for a level playing-ground between the small operators and the big operators in order to help smaller operators to operate and survive, and this can only be achieved through a calculated regulatory framework for the telecoms industry.”

Ibisi made this known to NCC and its partner, PricewaterhouseCoopers (PwC) that is responsible for the conduct and data analysis of the study, and advised PwC to consider the smaller operators in its final recommendation to NCC, after concluding the 12 to 14 weeks study.

Partner and Public Sector Lead at PwC Nigeria, Mary Iwelumo, who led the PwC team, assured smaller operators of objectivity and fairness of the study, adding that the study, which is centered on industry competition for voice and data connectivity in the telecoms industry, is not intended to expose the operations of the telecoms industry, but to ensure better service delivery to consumers of telecoms services.

According to her, telecoms operators are declaring yearly increase in subscriber number, but experiencing steady decline in the Average Revenue Per User (ARPU), a development, she said, would also be addressed in the study.

She therefore called on telecoms operators to comply with early submission of information that will help the PwC team in the study.

In her opening remarks, Head Competition & Tariff at the Policy, Competition and Economic Analysis Department of NCC, Mrs. Omotayo Mohammed, said the telecoms industry, which contributed about 9.1 per cent to national GDP as at Q3 2025, remained a critical enabler of growth, inclusion, innovation and service delivery across all sectors of the economy, hence the need for the study in order to protect the sector from undue influence.

“The Nigerian telecommunications market has evolved significantly over the past years. Revenue models have shifted, investment patterns have changed, and new forms of market interaction have emerged. We are witnessing rapid technological change, evolving consumer expectations and usage patterns, rising investment costs, and heightened competitive pressures. Concurrently, concerns around barriers to entry, market concentration, sustainability of smaller players, and quality of service continue to warrant careful consideration. These dynamics highlight the importance of continuous validation of competition policy assumptions against current market evidence,” Mohammed said.

According to her, competition is the engine that drives innovation, affordability, and consumer choice.  But competition must also be fair, effective, and sustainable. Our task as a regulator is to strike the right balance, one that protects consumers, rewards efficiency and investment, and keeps the market open to new ideas and new entrants.

“The last comprehensive, industry-wide competition study undertaken by the commission was concluded in 2013. A few targeted, bespoke studies have since been conducted across specific services and market segments such as Mobile Voice Termination Rate 2018 and Mobile Voice International Termination Rate 2022. However, developments in technology, market structure, and consumer behaviour now necessitate a holistic reassessment of competition across the telecommunications value chain. To support evidence-based decision-making, the commission has engaged PricewaterhouseCoopers to conduct an independent, data-driven study on the level of competition in the Nigerian telecoms industry,” Mohammed further said.

Giving details of the study, Mohammed said: “The study has been designed to capture both supply-side and demand-side dimensions of the market. On the supply side, it will assess market structure, levels of concentration, pricing behaviour, access to essential facilities, barriers to entry and expansion, and the intensity of competitive rivalry. On the demand side, it will examine consumer usage patterns, switching behaviour, affordability, service quality, and the extent to which, consumers are able to exercise informed choice.”