Tuesday, April 29, 2025
25.7 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

Inspenonline Summit to Stimulate Interest for Good Retirement

The 2025 Inspenonline Retirement Summit is aimed at stimulating...

Banks, Telecoms, Mobility Brands Dominate Q1 2025 Media Performance Charts

Following the Central Bank of Nigeria’s directive to harmonize...

PenCom, NERC Partner to Enforce Pension Compliance by GENCOs, DISCOs

From left: NERC Commissioner, Planning, Research and Strategy, Dr...

PenCom Moves to Recover N1.3bn Pension Contributions for Journalists

From left: Dr. Dili Ezughah, Executive Secretary, Nigerian press...

Stanbic IBTC Bank Drives Regional Trade Innovation at GTR West Africa 2025

Stanbic IBTC Bank has successfully concluded its strategic participation...

Topics

CBN Vs NESG: Expert Warns of Negative Impact on Economy

Mr. Godwin Emefiele Governor Central Bank of Nigeria (CBN) The raging feud...

Equity Market Plunges… ASI Down 2.3%

The domestic equity market closed yesterday on a negative note...

NCC Enjoins Telecom Consumers to Protect Infrastructure

The Nigerian Communications Commission (NCC) has again enjoined telecoms...

Ingenico Partners Interswitch on Multi-channel Payment Solutions in Nigeria

Ingenico Group, the global leader in seamless payment, announced...

Interswitch Extols First Bank For Sustaining 100m Monthly Transactions Milestone

Interswitch Group, Africa’s leading digital payments and commerce company...

Fidelity Bank Equips Entrepreneurs for Global Trade Success with EMP 18

L-R: Prof Frank Ojadi, Director, Export Management Program, Lagos...

BlackBerry: Two New Phones, Name Change Define Future Ambition

­BlackBerry Z10   Research in Motion has held its much vaunted...

AIMS Unveils African Master’s in Machine Intelligence

The African Institute for Mathematical Sciences (AIMS) announces the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img