Monday, March 30, 2026
27.2 C
Lagos

NCC Suspends Data Price Hike

Following the concerns that visited the directive to introduce price floor for data segment of the telecommunications sector beginning from December 1, 2016, the Nigerian Communications Commission (NCC) has suspended any further action in that direction.

The decision to suspend this directive was taken after due consultation with industry stakeholders and the general complaints by Consumers across the country.

The Commission has weighed all of this and consequently asked all operators to maintain the status quo until the conclusion of study to determine retail prices for broadband and data services in Nigeria.

Recall that the Commission wrote to the Mobile Network Operators (MNOs) on November 1, 2016 on the determination of an interim price floor for data services after the stakeholder’s consultative meeting of October 19, 2016.

The decision to have a price floor was primarily to promote a level playing field for all operators in the industry, encourage small operators and new entrants.

The price floor in 2014 was 3.11k/MB but was removed in 2015. The price floor that was supposed to flag off on December 1, 2016 was 0.90k/MB.

In taking that decision, the smaller operators were exempted from the new price regime, by virtue of their small market share. The decision on the price floor was taken in order to protect the consumers who are at the receiving end and save the smaller operators from predatory services that are likely to suffocate them and push them into extinction.

The price floor is not an increase in price but a regulatory safeguard put in place by the telecommunications regulator to check anti-competitive practices by dominant operators.

This statement clarifies the insinuation in some quarters that the regulator has fixed prices for data services. This is not true because the NCC does not fix prices but provides regulatory guidelines to protect the consumers, deepen investments and safeguard the industry from imminent collapse.

Before the new suspended price floor of 0.90k/MB, the industry average for dominant operators including MTN Nigeria Communications Limited, EMTS Limited (Etisalat) and Airtel Nigeria Limited was 0.53k/MB.

Etisalat offered (0.94k/MB), Airtel (0.52k/MB), MTN (0.45k/MB) and Globacom (0.21k/MB).

The smaller operators/ new entrants charge the following: Smile Communications – 0.84k/MB, Spectranet – 0.58k/MB and NATCOMS (NTEL) – 0.72k/MB.

The NCC as a responsive agency of government takes into consideration the feelings of the consumers and so decided to suspend the new price floor.

Signed

Tony Ojobo
DIRECTOR – PUBLIC AFFAIRS
NIGERIAN COMMUNICATIONS COMMISSION

spot_img
spot_img
spot_img

Hot this week

Railway Infrastructure is One of the Solutions to Africa’s Trade Expansion

By Caroline Trefault Intermodal Africa Manager at MSC As Africa’s...

APC Chairman, Nentawe Yilwatda, Hails President Tinubu at 74

Professor Nentawe Yilwatda, National Chairman, All Progressives Congress (APC),...

NCC Directs Telecom Operators to Compensate Subscribers for Poor Network Service

The Nigerian Communications Commission (NCC) has directed Mobile Network...

BudgIT Demands Accountability over N129.5bn Disbursed on 2023 Census Without Result

Nigeria's last credible population census was conducted in 2006....

Topics

Red Star Announces Special Holiday Season Offer Tagged “Pay-Less Ship More”

Determined to bring joy to shippers across Nigeria as they shop for the holiday season, Red Star Express Plc., the foremost logistics services solution provider in Nigeria is set to roll out its own special holiday offer for Nigerians tagged“pay-less ship more”. Starting from December 01, 2015 to January 15, 2016, this offer will ensure that customers save as much as 50% on each package using our services.

NCDMB, UBEC Ink MoU on Smart Schools Initiative

The Nigerian Content Development and Monitoring Board (NCDMB) and...

Rex Insurance Unveils Digital Platforms to Drive Motor Insurance Business

Rex Insurance Limited has unveiled new digital platforms designed...

Royal Exchange Reports N8.43bn Premium in 6 Months

Royal Exchange Plc, one of Nigeria’s premier insurance and financial services group, has announced that it has generated a Gross Written Premium of N8.43 billion from its business activities in the first half of the 2016 financial year, representing an increase of 34 percent over the figure of 2015, which stood at N6.28 billion.

Verve Partners Alcineo, Unveils SoftPOS to Boost Contactless, Digital Payment

  Vincent Ogbunude Managing Director Verve International Africa’s leading payment cards and digital...

Unitrust Insurance: 35 Years of Innovation, Customer Service, Growth

Mr. John Ijerheime Managing Director/Chief Executive Officer Unitrust Insurance Company Limited Unitrust...
spot_img

Related Articles

Popular Categories

spot_imgspot_img