- The Nigerian Communications Commission has said there is no plan to increase telecommunications tariff prices by January
- It said the process of tariff hike is rigorous, data-driven and evidence-based
- The commission added that telecom operators are shying away from hiking tariff prices to avoid losing subscribers
The Nigerian Communications Commission (NCC) has dismissed speculations of an upward review of tariffs by January next year, saying the commission has no such plans.
The NCC insisted that the procedures regarding the hike in tariff are more rigorous, data-driven, and evidence-based.
Per The Nation, a dependable source in the commission said the speculations on tariff hikes have remained the handiwork of some telecom operators in the past two years, insisting that the operators are being economical with the truth in the industry.
The source, according to The Nation, said there cannot be any tariff increase as the commission does not have a Management Board to approve such a review.
The source said, “Let us face the facts; one as of today, the NCC doesn’t have a Management Board in place to consider review of tariff. Mr President has not appointed a Management Board for NCC.
“Two, it is only after Board approval that the NCC will engage consultants to carry out a study on price review. After the consultants are through, then stakeholders’ engagement will take place to consider economic implications and imperatives that call for a review. Here there will be inputs from all sectors, researchers and academicians will be involved as well as legal practitioners. The telecom operators will also be involved.
“It is after all these have been done and a new price template provided that NCC will announce the timeframe for implementation to allow everyone, including the consumers to be prepared for the increase. A minimum of three months' notice will be required. All these have not been done, so how can NCC announce that by January there will be increase in tariff?
“It is a figment of the imagination of some people. The issues around tariff review is data-driven and evidence-based.”
Operators are shying away from industry competition
The source further stated that telecommunications operators have not exhausted the upper limit of the current price template, which has been in operation since 2013.
The NCC source noted that the operators are shying away from industry competition by not taking advantage of the maximum tariff of the current price template, but instead, wants to pass the ball to the NCC.
“The telecom operators that have been announcing and crying that it is necessary to increase tariff plans, they are not telling the truth. They have been saying that the costs of everything, including diesel have gone up. And they wanted to take advantage.
“The last time there was a review was 2013. And it was holistic. However, it is important to state that the Mobile Network Operators (MNOs) based on the last review still have windows to increase tariffs on their own.
“The price templates they are operating on since 2013 have not been exhausted so why can’t they go ahead on their own and at individual levels to increase tariffs.
“The review maintained that the lowest an MNOs can charge subscribers for airtime per minute was six naira 40 kobo, while the highest is 50 naira per minute. But as at today, some are charging 18 naira, some 15 naira per minutes and below.
“None of them is charging the maximum price, so ask the MNOs why? They are sensitive to the issues of competition in the industry and no one will blink first among them for risk of losing subscribers.
“Another reason they are passing the bulk to NCC or government is because they know that any increase in tariffs or taxes (from government) will generate negative feedbacks everywhere.
“We are quite aware of their tactics. It’s just unfortunate that they are playing with the intelligence of the people,” the source added.
NCC to limit tariff plans to 7 in new structure for telecom operators
Meanwhile,TheRadar reported that the Nigerian Communications Commission (NCC) said telecommunication operators are limited to a maximum of seven tariff plans in the new structure it unveiled on December 13.
The NCC said the new simplified tariff structure for telecommunications operators is vital in streamlining tariff plans, increasing transparency, and improving the consumer experience.
