Business & Finance

Revealed!! Why NCC Directed All Telecoms Operators To Increase Their Data Tariffs


The new data regime proposed by the NCC is to begin on December 1, 2016. The recent directive by the Nigerian Communications Commission (NCC) to the five big telecoms operators in the country to increase their data tariffs is to allow small operators and new entrants acquire market share and operate profitably, an official of the commission has disclosed.

An official of the NCC reveals that some new entrants into the market put pressure on the commission to increase data tariffs. The official says the commission yielded to their pressure last month when it notified the operators of the new rate.

Condemnation has trailed the NCC directive to telecoms operators to increase their data tariffs on December 1, 2016. But an NCC official who pleaded anonymity told Daily Trust on Tuesday, November 29, that some new entrants into the market complained that there was no way they could break even if they operated on same data regime with the likes of MTN, Glo, Etisalat and Airtel. He said the commission yielded to their pressure when last month it notified the operators of the new rate.

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“For the avoidance of doubt a small operator is one that has less than 7.5 percent market share and a new entrant is an operator that has operated less than three years in the market. “All operators are to ensure that subscribers are not automatically migrated to pay-as-you-go platform. “Also, note that effective date for the interim price floor is December 1, 2016,” he said. The new data regime has been confirmed by Adebayo Shittu, the communications minister, who said through such increase, the government would be able to develop the sector and build more infrastructure. Meanwhile, the Trade Union Congress (TUC) of Nigeria has warned against the proposed price hike for mobile internet services by the various telecommunication companies in the country. The labour group said it would not take such move lightly in the face of the serious economic crisis the country is faced with. The TUC described the new data price regime as a move between the telecom companies and the federal government to further milk the people.

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