Following deluge of criticism and condemnation, the Nigerian
Communications Commission, NCC, has, Wednesday, suspended its planned data
tariff increase.
This is following the Senate order to halt the increment as well as the
public outcry that greeted the planned action.
NCC announced the immediate suspension of the new minimum pricing template
for data services by mobile operators saying the decision is to allow for
further consultation.
In a statement Signed by it’s Director, Public Affairs, Tony Ojobo, the
commission said “directive was taken after due consultation with industry
stakeholders and the general complaints by Consumers across the country.”
It said it has therefore directed all operators to maintain the status quo
until the conclusion of study to determine retail prices for broadband and
data services in Nigeria is done.
“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 N3.11k/MB but was removed in 2015. The price
floor that was supposed to flag off on December 1, 2016 was N0.90k/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 N0.90k/MB, the industry average
for dominant operators including MTN Nigeria Communications Limited, EMTS
Limited (Etisalat) and Airtel Nigeria Limited was N0.53k/MB.”
“Etisalat offered (N0.94k/MB), Airtel (N0.52k/MB), MTN (N0.45k/MB) and
Globacom (N0.21k/MB).
The smaller operators/ new entrants charge the following: Smile
Communications N0.84k/MB, Spectranet N0.58k/MB and NATCOMS (NTEL)
N0.72k/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.”