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NCC to Lunch Simplified Tariff Structure for Telecom Operators
The Nigerian Communications Commission (NCC) has announced plans to introduce a simplified tariff structure for telecommunications operators, with a formal unveiling set for December 13, 2024.
The initiative aims to streamline tariff plans, enhance transparency, and improve consumer experience across the telecommunications sector.
The announcement was made during a media interaction in Abuja by the NCC’s Executive Vice Chairman, Dr. Aminu Maida, represented by the Director of Public Affairs, Mr. Reuben Muoka.
Maida explained that the new structure would limit operators to a maximum of seven tariff plans, a move designed to address consumer concerns and clarify misconceptions about data and airtime usage.
“After extensive consultations with stakeholders, the new tariff plan will replace the initial October 27 date. This change aims to provide relief to telecom consumers and ensure transparency in data and airtime usage,” he stated.
The NCC has also launched awareness campaigns to educate consumers about the changes.
Addressing concerns about rapid data depletion, Maida disclosed that investigations revealed variations in data consumption based on device settings and app activities, particularly on Android phones.
Strengthening Oversight
As part of its broader regulatory framework, the NCC has directed telecom operators to update their contact details with the commission by January 9, 2025. The directive aligns with the 2019 Licensing Regulations and aims to bolster oversight within the sector.
“This directive is part of the NCC’s commitment to ensuring a robust and well-regulated telecommunications industry,” said Mr. Muoka.
Non-compliance with the directive could lead to penalties, including fines, suspension, or the revocation of licenses.
Calls for Tariff Reviews
The announcement comes as the telecommunications industry grapples with rising operational costs driven by inflation and foreign exchange challenges. The National Association of Telecommunications Subscribers (NATCOMS) has urged the NCC to approve a 10% tariff increase to sustain operations and improve service quality.
Modupe Kadri, Chief Financial Officer of MTN Nigeria, highlighted the sector’s reliance on imported equipment and foreign exchange, emphasizing that rising costs have strained operators’ capacity to maintain efficient services.
Kadri cautioned that without a pricing review, the telecommunications industry could face a decline in investments, similar to the challenges experienced in Nigeria’s oil sector.
Bismarck Rewane, CEO of Financial Derivatives Company Limited, noted that while the telecommunications sector contributes 16% to Nigeria’s GDP, there has been no tariff review since 2013. Meanwhile, the cost of goods and services in Nigeria has risen sharply.
The NCC’s tariff simplification initiative is expected to balance consumer interests with the financial sustainability of operators, fostering fair competition and encouraging investment in the sector.
