[Mhiz Rebecca]

The Nigeria Communications Commission has
suspended the planned incrment of data prices in
Nigeria following outcry by Nigerians on social
media as well as a plenary session at the Senate
on Wedneday.
Find press release by the NCC below—–
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.
The decision to suspend this directive was taken
after due consultation with industry stakeholders
and the general complaints by Consumers across
the country.
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.
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 N0.84k/MB,
Spectranet N0.58k/MB and NATCOMS (NTEL)
N0.72k/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.
Signed
Tony Ojobo
Director, Public Affairs
NCC