…Denies approving tariff hike
By Charles Ebi
Nigerian Communications Commission ,NCC, has issued guidance for the telecom operators mandating them to provide adequate information to the subscribers on how they are being charged for each call and data consumed.
This directive is contained in a document released by the regulator titled, ‘Guidance for the Simplification of Tariffs’, through which the Commission is seeking to enhance transparency, improve consumer understanding, and foster fair competition amongst its licensees.
The guidance comes amid increasing complaints by telecom subscribers about data depletion and airtime being exhausted faster than expected.
The Commission in the document, highlighted that full disclosure of all tariff components and conditions is mandatory and asked telcos to ensure that all marketing and promotional materials are clear and comprehensible.
In the guidance which took effect on July 29, 2024, the NCC said all the operators must make available every detail of their tariffs.
“Every Operator is required to publish on its website (in a tab dedicated to tariff information), a table showing characteristics of each tariff plan and bundle it offers.
“The table must display all information which is necessary to enable the subscriber to make a comparison between the offered tariff plan and others, and thereby make an informed choice”, it said.
NCC added that whenever a subscriber requests their account balance through the *310#, the response must include information such as Name of Plan and Validity Period (if applicable); rate per second (and rate per minute) on-net/off-net; rate per megabyte/kilobyte/gigabyte; and rate per SMS on-net/off-net.
It also urged the operators to prioritize consumer education and transparency in all communications to ensure subscribers can make informed choices.
“Develop and submit detailed migration plans to transition subscribers smoothly to new tariff plans, without loss of service quality or benefits.
“All promotional elements must receive prior approval from the Commission and should be offered as standalone products with clear terms and validity periods.
“Submit comprehensive periodical reports detailing all active tariff plans, bundles, promotions, and Quality of Service metrics”, NCC said in the guidance, which took effect from July 29, 2024.
According to the commission, all promotional elements are to be removed from tariff plans and be offered as standalone promotions, subject to its prior approval, time limits, QoS/capacity requirements, and adherence to full disclosure requirements.
The NCC said operators can maintain existing bonus-led tariff plans till December 3, within which period they are expected to educate and migrate all subscribers to the simplified tariff plans.
Lack of adequate information, especially on data usage, has led to incessant complaints by subscribers about data depletion. Specifically, mobile network operators comprising, MTN, Airtel, Globacom, and 9mobile have been at the centre of consumer complaints on data depletion.
However, according to the NCC, there are several factors causing data depletion for most subscribers, part of which include background apps and automatic updates on mobile.
Meanwhile, in a move suggesting that the service providers might also be a factor in the data depletion complaints from the subscribers, the Commission recently directed Mobile Network Operators ,MNOs, to conduct an independent audit of their billing systems.
It also promised to simplify tariff plans that would provide enhanced transparency to the consumer, which led to the release of the guidance.
Meanwhile, the Commission has issued a clarification stating that it has not approved any new telecom tariff plans or hikes, contrary to recent online reports.
This clarification follows misinformation that the Commission introduced new tariff plans and pricing rules for the telecom industry, purportedly outlined in a document titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector”, and attributed to Dr. Aminu Maida, the Executive Vice Chairman/CEO.
Dr. Aminu Maida, the Executive Vice- Chairman/CEO of NCC, responded to the claims: “Like the others, this is FAKE NEWS! The Commission has neither approved any Telecom Tariff plans nor hike as this report claims”.
According to the commission, the accurate position is that it is focused on ensuring that existing tariff plans are simplified to provide greater transparency and fairness for consumers, without introducing new tariffs or hikes.
The NCC has flagged the aforementioned post on its X page as fake news and clarified that no such tariff plans or pricing updates have been approved.
The misleading post claimed that the Commission had introduced new tariff plans and pricing rules for the telecom industry, supposedly outlined in the document titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector”, and signed by Dr. Aminu Maida, the Executive Vice Chairman/CEO.
According to Technology Times, the approval was said to be effective from July 29, 2024. The document allegedly mandated that all licensed operators adhere to these new rules until further notice. It was designed to simplify the pricing structure for a wide array of services within the Nigerian telecoms sector, which includes 219,304,281 phone lines, 164,368,292 internet subscriptions, and 94,364,751 broadband connections as of Q1 2024.
The alleged rules purportedly imposed stricter pricing regulations for various elements such as tariff plans, add-ons, bundles, bonuses, promotions, and top-ups, covering voice, data, SMS, and other services. It specified that each subscriber must be on a single tariff plan at any given time, defining a tariff plan as “a structured pricing scheme that outlines the charges and conditions under which telecommunications services are provided to subscribers”.
The Nigerian Communications Commission ,NCC,has emphasized that to avoid an increase in telecom tariffs, Nigeria needs to focus on developing indigenous content that adds value to telecom services and reduces dependence on imports.
This was highlighted by NCC Executive Vice-Chairman, Prof. Umar Danbatta, during the Nigerian Telecommunications Indigenous Content Expo , NTICE 2023. Despite rising costs and forex instability, telecom tariffs have remained stable, but an increase might become unavoidable if the sector continues to rely on imported components.
Prof. Danbatta noted that maintaining and improving the quality of telecom services in Nigeria requires greater local content involvement. The Nigeria Office for Development of Indigenous Telecoms Sector ,NODITS, established in July 2021, has made significant strides in areas such as manufacturing, human capacity, R&D, and software development. Achievements include the successful NTICE event, the manufacturing of Corrugated Optical Duct ,COD, for fibre protection, support for small businesses and innovators, and the promotion of local SIM card manufacturing.
Recall that the Nigerian Communications Commission ,NCC, had recently directed telecommunication companies to conduct a comprehensive audit of their billing systems.
A source within the Commission, who requested anonymity confirmed that KPMG, one of the leading global audit firms, has been appointed to conduct the audit for one of the four major telecommunication companies in Nigeria. However, the specific company being audited was not disclosed.
Nigeria’s telecommunications industry is dominated by four key players: MTN Nigeria Communications PLC, Airtel Networks Limited ,Airtel Africa PLC, Globacom Limited, and 9Mobile ,Emerging Markets Telecommunication Services Ltd.
The source emphasized that the primary objective of the billing audit is to ensure that the billing systems of these mobile network operators ,MNOs, are accurate and transparent.
“The billing audit is basically to ascertain that the billing systems of the MNOs are accurate”, the source stated.
In addition to the audit, the NCC is organizing a series of Focus Group Discussion ,FGD, sessions to engage telecommunication service consumers across the country.
The aim of the focus group session is to engage telecommunication service consumers to ascertain their knowledge of tariffs and get recommendations on a better tariff system in the country, the source added.
The first of these focus group sessions was recently held in Abuja, with another planned for Lagos.
As the NCC continues its efforts to ensure fair billing practices and improve consumer satisfaction, the results of these audits and focus group discussions will likely play a crucial role in shaping the nature and cost of telecommunication services in Nigeria.
The Commission recently said it is working towards achieving a 50% improvement in the quality of services ,QoS, in the telecommunications industry by the end of this year.
According to the NCC, the 50% QoS improvement is one of the targets set by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani and the Commission is working towards realizing this goal.
NCC said other targets include boosting Nigeria’s broadband penetration rate to 70% by the end of 2025; delivering a data download speed of 25Mbps in urban areas and 10Mbps in rural areas by the end of 2025; and providing coverage for, at least, 80% of the country’s population, especially the underserved and unserved populations by the end of 2026.
While the NCC is working towards ensuring a more transparent and appropriate billing system, telecommunication operators in Nigeria have said that their services are overdue for price increments as they have not implemented any upward price adjustment in the last 11 years. The operators stated this in a recent joint statement by the Association of Licensed Telecom Operators of Nigeria ,ALTON, and The Association of Telecommunication Companies of Nigeria ,ATCON. The two associations represent Mobile Network Operators and telecommunication companies in Nigeria.
According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment. They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
The NCC regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval. The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators
