NCC to Address VAS Operators Complaints over Unfair Treatment

The 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.

Dr. Eugene Juwah, Executive Vice-Chairman of Nigerian Communications Commission, stated this at an interactive session in Lagos
.
Juwah noted that VAS is a licensable set of services that run on mobile networks but added that NCC was yet to develop requisite regulation for such services. He noted that given that complaints about their relationship was now in the public, NCC could then convey a VAS stakeholder conference.

It will be recalled that VAS companies under their umbrella body 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 Monday May 7th, 2012 was not in the best interest of VAS companies.
According to Eunice Benjamin-Ade Head, Business Development, WASPAN, 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.

She said: “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.

“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 have 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 VAS companies.

“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 services.