The Nigerian Communications Commission (NCC) has called on telecommunications operators to review their governance practices to conform with the Code of Corporate Governance in the industry.
The Executive Commissioner, Stakeholders Management, NCC, Mr Sunday Dare, made the call during the Annual Stakeholders’ Consultative Forum on Selected Licence Categories in Lagos on Monday.
Represented by the Director, Licensing and Authorisation, NCC, Ms Funlola Akiode, Dare said that there were existing Service Level Agreements and Codes of Conduct in the telecommunications industry.
He said that these Service Level Agreements and Codes of Conduct, when appropriately implemented, would guarantee conducive operating environment.
According to him, such conducive operating environment will significantly reduce the need for regulatory intervention.
“I wish to particularly mention the Code of Corporate Governance for the Telecoms industry.
“We are concerned that much of the problems bedevilling the industry can, arguably, be traced to lack of governance standards.
“We expect all licensees – including those on whom the Code is not yet mandatory – to review their governance practices to better conform with the Code,’’ Dare said.
He said that the commission had taken steps to ensure that the industry continually adapted to the evolution in the telecommunications sector.
Dare advised NCC-licensed Infrastructure Companies (InfraCos) to roll out shared access broadband infrastructure across the country, on an output-based incentive system, with a view to speeding up broadband penetration.
According to him, the commission also recently concluded the licensing of Value Added Services (VAS) Aggregators, to improve the service delivery framework and improve consumer satisfaction on value-added services.
“The framework will, therefore, ensure that telecommunications subscribers truly get added value when they sign up for such services.
“It will ensure that all stakeholders along the value chain are treated equitably, so that the industry can grow.
“Our expectation is that licensees will compliment interventions like these from the commission, by instituting best practices in the running of their activities, ’’ he said.
The executive commissioner said that the commission was not disregarding the impact of the disruptive changes brought about by advancements in technology, changing values and growing efficiency.
Dare said that a consequence of the mix was that businesses were having to grapple with staying alive, as their turnover take successive hits.
He said that an example was the impact of Over-The-Top (OTT) services that were eating into traditional revenue at a pace that barely allowed legacy companies the room to respond to the changes taking place.
“Several of the commission’s licensees had drawn attention to the impact on their operations and viability and the NCC is actively weighing alternatives.
“Even as we gather here to ponder individual and collective responses to the disruption by emerging technologies, new discoveries and inventions are coming out that could diminish the value of investments being made in the telecommunications sector.
`We will not allow the sector to be forced into inaction because of the pace at which new technologies and systems are emerging,’’ Dare said.
Akiode said that the forum was aimed at fostering harmonious relationship with licensees and identifying their challenges.
Represented by the Head, Post Licensing Unit, NCC, Mr Chukwuma Azikiwe, Akiode said that the forum was meant to re-emphasis the role of licensees in ensuring good quality service.
She said that the Nigerian telecommunications industry had continued to make giant strides, which was evidenced by the progressive growth of mobile telephony and internet penetration/data usage.
