Mobile data tariff hike: Senate halts move, NCC suspends directive

The Senate earlier today has ordered the Nigerian Communications Commission, NCC, to immediately stop the implementation of its directive for mobile data tariff to be increased by December 1.

The Upper Chamber maintained that all stakeholders must be consulted before such hike could take effect.

Meanwhile in a press released signed by the Director of Public Affairs of the Nigerian Communication Commission, Tony Ojobo, said the Commission has suspended action on the directive.

In the statement, NCC said the decision to suspend the directive was taken after due consultation with industry stakeholders and the general complaints by Consumers across the country.

The 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.”

Defending the reason for the initial directive for the increase, NCC said it aimed at promoting a level playing field for all operators in the industry. “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.”

According to the statement, the hike was meant to allow small operators and new entrants to acquire market share and operate profitably.

It said it came up with the new data regime after 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.

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.

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.

The smaller operators/ new entrants charge the following: Smile Communications N0.84k/MB, Spectranet N0.58k/MB and NATCOMS (NTEL) N0.72k/MB.

Recall that the NCC had announced its directive for telecoms operators to increase the cost of data tariff plan from tomorrow, December 1.