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
spot_img

Hot this week

Rethinking How Nigeria Supports SME Growth

  By Olajumoke Bello Head, Enterprise Banking Stanbic IBTC Bank Across Nigeria, small...

Customers Applaud Mutual Benefits as Insurer Pays Over ₦3.9bn in Claims

Mutual Benefits Assurance Plc has reaffirmed its unwavering commitment...

FG: Local Content Must Create Value for Nigerians

By Olu Verheijen For twenty-five years, NOG Energy Week has...

NAICOM Boss, Segun Omosehin, Extols Yetunde Ilori’s Leadership at CIIN, Reaffirms Commitment to Institute

L-R: Mr. Ekerete Ola Gam-Ikon, Deputy Commissioner, Finance and...

NAICOM Holds One-Day Training for Police Officers on Compliance with Compulsory Insurance Policies

The National Insurance Commission (NAICOM) has organised a one-day...

Topics

NCDMB: Court Affirms Mandate to Collect 1% NCDF in Oil/Gas Sector

  The Federal High Court sitting in Yenagoa, Bayelsa State...

Commonwealth Short Story Award Winner Releases The Talent Coach

Dr. Frederick Mordi, a Commonwealth Short Story Award winner,...

FG Denies Allegation of Hidden Spending, Diversion of Federation Revenue

The attention of the Federal Ministry of Finance has...

Failed UK Telecoms Merger: Mixed Implications for European Market

While the European Commission's decision to block CK Hutchison's...

The Most Important Things to Look at During House Inspection

By Dennis Isong One of the most important jobs you’ll...

17 States Owe Pensions, Salaries Despite N1.8tr Bailout

BudgIT, worried that some states are yet to fully...

Global, African Lenders Decry Country Risk Challenges in Africa

Global and African financial heads identified country risk as...

Sterling Launches Imperium Platform for Solar Energy Consumers

Sterling Bank Plc has launched a new and innovative...
spot_img

Related Articles

Popular Categories

spot_imgspot_img