CCPC hopeful of 4th mobile operator

THE Competition and Consumer Protection Commission (CCPC) is optimistic that Government will allow entry of a fourth mobile operator once the statutory instrument (SI) to prevent entry into the fixed telephone and mobile communication networks markets expires this year.
Government, through the Ministry of Transport, Works, Supply and Communications, issued SI No. 111 of 2009 which ends this year.
CCPC executive director Chilufya Sampa said at a media workshop recently in Siavonga that the regulation will soon come to an end and the Commission “hopes that another firm will operate in the country” to bring about competition.
He said particular government regulations prevent certain things and result in uncompetitive environment which affects the private sector.
The reason Government issued the SI was that allowing unrestricted entry into the mobile market would result in the market having more market players fighting for a few subscribers which might eventually force others to exit the market due to unattractive profit margins despite prior substantial investment in their mobile network operations.
Zambia is supposed to attain a certain level in both subscription and potential which will warrant continued profitability of all market players for another entry to occur into the market.
Currently, there are three mobile operators, namely Airtel, Zamtel and MTN.

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