Data Price Suspension 'We bowed to pressure from Nigerians', NCC says

The NCC has been forced to abandon its plan to increase the data price floor, following pressure from consumers

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Tony Ojobo, NCC spokesperson play

Tony Ojobo, NCC spokesperson

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The Nigeria Communications Commission (NCC) has been served some humble pie.

The regulator for all Telecommunication companies in Nigeria, had taken a unilateral decision to increase the price of Internet data in Nigeria.

The move sparked outrage from data subscribers across all social media platforms, forcing the NCC to beat a hasty retreat.

By noon on Wednesday, November 30, 2016, the Commission had been stopped dead in its tracks by the Nigerian people and the Senate.

"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", Tony Ojobo, Director of Public Affairs at the NCC, said in statement sent to Pulse.

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"The decision to suspend this directive was taken after due consultation with industry stakeholders and the general complaints by Consumers across the country.

play Tony Ojobo and stakeholders (Punch)

 

"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 N3.11k/MB but was removed in 2015. The price floor that was supposed to flag off on December 1, 2016 was N0.90k/MB.

The NCC explained the rationale behind its earlier decision to increase the data price floor.

The statement continued:

NCC CEO, Umar Garba Danbatta play Garba Danbatta, NCC CEO (IcirNigeria.org)

 

"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 N0.90k/MB, the industry average for dominant operators including MTN Nigeria Communications Limited, EMTS Limited (Etisalat) and Airtel Nigeria Limited was N0.53k/MB.

"Etisalat offered (N0.94k/MB), Airtel (N0.52k/MB), MTN (N0.45k/MB) and Globacom (N0.21k/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".

Pulse had exclusively reported that the Presidency wasn't carried along before the data price hike.

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