addresses complaints of unfair treatment
Nigerian Communications Commission (NCC) has pledged to address
complaints by companies that provide value added service using
mobile networks over unfair treatment by network operators,
according to Dr. Eugene Juwah, Executive Vice-Chairman of the NCC,
during an interactive session in Lagos.
Juwah noted that VAS was a licensable set of services that run on
mobile networks but added that the NCC was yet to develop requisite
regulation for such services. He noted that given that the
complaints about their relationship were now in the public, the NCC
would have to call a VAS stakeholder conference.
VAS companies under the Wireless Application Service Providers of
Nigeria recently rejected a proposal by Airtel Nigeria for a change
of VAS revenue sharing formula from 60:40 to 75:25 between operators
and VAS companies respectively. According to WASPAN, the proposal
seeking a change of the current revenue sharing formula effective on
May 7 was not in the best interest of VAS companies.
According to Head, Business Development, WASPAN, Eunice Benjamin-Ade,
companies that are affected by the proposal have already contacted
their lawyers to seek possible legal redress of the matter if other
steps taken to redress the matter fail. “We want to state our
outright rejection of this plan by Airtel, as we believe that it is
an unacceptable imposition that threatens the very existence of the
businesses of VAS companies in Nigeria and it is one that is not
based on any prior consultation with any member of WASPAN,” she said
“We have already communicated our rejection of this advice by Airtel
to the Nigerian Communications Commission, the regulator of the
telecommunications industry and intend to do more if necessary
including going to court. We call upon NCC to intervene in this
matter urgently to forestall an unnecessary industrial dispute in
the telecommunications industry.”
Benjamin-Ade said Wireless Application Service Providers are
legally-registered businesses in Nigeria that operate based on laid
down business laws and have helped develop various offerings in the
telecommunications sector since inception until now.
She added that VAS providers had consistently allowed a change of
revenue share over the years in favour of operators and will not
agree to any further shift that will reduce revenue that accrue to
“We believe that the recent moves by various operators to continue
to change the revenue sharing ratio in their favour will not only
set the stage to run down businesses of many wireless providers, but
one that could eventually destroy the entire industry,” she said.
The new development represents yet another twist in the battle
between mobile network operators and Value Added service providers
over the sharing of revenue generated in wireless application
Nigeria’s Chief Telecom Regulator, Dr. Eugene Juwah.