President Yar'Adua and NigComSat Mobile Licence

Yar'Adua's Insistence on NigComSat Mobile Licence Throws Spanner on Free Enterprise

PRESIDENT Umar Yar'Adua, last week deepened the mobile licence row between the Nigeria Communication Satellite (NigComSat) Limited and Nigerian Communications Commission (NCC) by ordering the regulatory agency to "immediately" grant a mobile operating licence to the satellite company.

The Nigerian Satellite firm has been embroiled in tug-of-war public altercation over the issue of mobile operating frequency and licence following the launching of its NigComSat-1 communication satellite with Chinese technical partnership last May. It claimed former President Olusegun Obasanjo, granted it an express mobile operating licence on the eve of his departure last May.

The NigComSat management argued that with its technical expertise and available facilities, the company was in a better position to offer better mobile services than the public is presently getting from the existing four major operators.

Ernest Ndukwe, Executive Vice Chairman & CEO of NCC, rebuffed the Satellite firm's claims insisting it has no mandate to offer 'last mile' mobile services.

A committee set up by the Ministries of Information and Communication, and Science and Technology recommended that NigComSat did the right thing by going private before applying for a licence.

"It is pertinent to note that with the approval of the Federal Executive Council, the adoption and publication of the National Telecoms Policy (NTP), the Nigerian Government firmly resolved to liberalise the telecommunications market and promote competition.

One of the policy objectives of the NTP was the restructuring and privatization of NITEL and M-TEL by the divestment of majority shares owned by the government to the private sector. This has been achieved by the sale of a substantial portion of government interest in NITEL and M-TEL to Transcorp".

The NCC quoting relevant Sections 5.0 and 5.2 of the policy setting up its existence state thus:

5.0 Existing Public Enterprises

Consistent with the philosophy that the private sector will lead the future development of the Nigerian telecommunications sector to the greatest extent possible, controlling ownership interest in NITEL and M-TEL shall be transferred from Government to private investors. The privatized companies are expected to be restructured by the new owners to implement modern operational and management practices.

Both companies will be issued new licenses by NCC, designating their role and responsibilities in the liberalized market. The restructuring and privatization of the sector shall be of the highest priority, and shall not delay or preclude other steps to open the telecommunications market to attract private investment and intensify competition, as outlined in this policy.

5.2 Privatisation

It is the intention of the Government that controlling interest in both NITEL and M-TEL shall be transferred to the private sector. The Government may retain minority, non-controlling ownership interest in the short run, although the Government's shares shall be under the control of an agency that is independent of both the Ministry of Communications and the Nigerian Communications Commission.

"The role of government is to provide overall direction to telecommunications development and ensure policy consistency. This role does not include participating in the provision of telecom services which is consistent with policy objectives as contained in Chapter 2 Section 2.1 of NTP as follows:

* To ensure that government divest interest in state owned entities;

* To promote competition to meet growing demand through full liberalisation of the telecom market.

"The purpose of these prescriptions in the policy is to ensure a level playing field and drive competition among licensed telecommunications operators by making sure that government restricts itself to policy and regulation. Full Story
License or no license these gsm service providers should just give us a better services