By Aaron Ukodie
The minister of communication and digital economy, Dr Isa Pantami, is stepping beyond his constitutional rights and infringing on the roles of independent government agencies established by an act of parliament with spelt out functions that precludes the supervisory minister from interference.
But Pantami, who has been behaving since coming into office as if robust industry rules and acts, never existed, has continued to dish out one order after the other, making stakeholders and investors to be uncomfortable.The Nigeria’s telecommunication companies, who have been receiving disparate orders from Pantami, especially on industry services pricing, came out yesterday to warn of the consequences of the minister making policy statements on pricing.
The telcos, under the umbrella body of the Association of Licensed Telecom Companies of Nigeria (ALTON) said the right to give determinations on pricing does not fall within the powers of the minister. Price determination right is that of the Nigerian Communication Commission (NCC) which should do so after consultations with industry stakeholders.
That is the best and acceptable international industry standard that has worked and helped the industry to thrive and be productive, contributing over N15 trillion to the countries coffers in 20 years, leading to over $68 billion in foreign direct investment inflow and contributing over 11 per cent of its gross domestic product ( GDP).
Industry observers are of the view that in a sector that is in dire need of more investors, policy statements such as the recent that data prices should be slashed by fiat is a disincentive to investment. It is like telling investors that ‘your money is not safe here’. Such a statement, if continued, is capable of destabilizing the industry.
Undermining the independence of the regulator by giving Executive fiat, discourages investors into the market. It undermines the Nigerian telecom industry, which has flourished based on the free market initiatives, promoted by the NCC.
Since he was appointed some three months ago, the minister has given orders to the telecom operators to slash data prices in five days, stop voice mail services and ordered NCC to sanction telcos who impose arbitrary fees on consumers.
In the past 20 years, no minister of communication has infringed on the roles of the NCC and NITDA, the way Pantami has sought to do since coming to office.
Though the minister’s orders may appear populists and could resonate with Nigerians, ALTON noted that private sector led businesses are not run by executive fiat and the whims of anybody, but by well thought out market and operating determinations that follow free market variables.
“Issues of pricing is not a policy thing, but it is regulatory, which only the NCC can give”, ALTON noted.
“If the minister says we should reduce prices, the question that should be asked is how does he want us to do that? Would he subsidise our operations? Price control measures never works, even when they were introduced some time ago in Nigeria” Adebayo noted.
On order that it should not charge banks or users on voice mail and SMS services (USSD), Adebayo said the order could not work because the operators spend their resources, human and infrastructure, to provide the services. They couldn’t be offered free of charge.
Adebayo said the banks have given the wrong impression to the public that the cost of providing USSD services is sunk cost. On the contrary, the cost is recurring, he noted, because the operators continue to invest in operating the transmission and system exchange links and their powering, among others.
“He who comes to equity must come with clean hands”, Adebayo says adding that “it is matter of time. We shall invoke our rights granted us by the 2003 Communication Act to resolve the matter of USSD charges”
Adebayo also questioned the moral right of the banks to charge its customers for the use of the services it provides them while they ask that the telecom operators should not benefit from such charges.
ALTON is of the view that the minister should address his minds to resolving challenges that the industry is currently faced with.
It wants the minister to set up policies that facilitate the Digital Economy, review and redefine sector policy objectives, embrace concept of ‘connected verticals’, facilitate ‘social overhead capital’ role – industry as a socio-economic development partner and provide security for assets and investments
