Senate asks NCC to stop planned data tariff hike

The Senate on Wednesday has condemned Nigerian Communications Commission (NCC) directive to telecommunication operators to increase data tariff.
The Red Chamber condemned data price hike and asked NCC to stop planned policy immediately.
On Monday, MTN sent messages to its customers announcing that there would be an increase in its data tariffs on December 1. “Dear customer, please be informed that from December 1, some MTN data tariffs will be increased to reflect the new rates set by the NCC to operators,” the short message from the telco read.
The regulator had in a letter dated Nov 1 titled: Re: Determination of an Interim Price Floor for Data Services referred the telcos to its letter dated July 29 and the Industry Stakeholders meeting that was held on October 19 where service providers were asked to comment on the interim price floor for data services.
“The Commission has carefully reviewed all submissions and hereby make the following Determinations: the interim price floor for Data Services is No.90k/MB for big operators. This rate will subsist pending the finalisation of the study on the Determination of Cost Based Pricing for Retail Broadband and Data Services in Nigeria; in order to promote a level playing field for all operators in the industry, encourage small operators and new entrant to acquire market share and operate profitably. Small operators and new entrants are hereby exempted from price floor for data services; for avoidance of doubt, a small operator is one that has less than 7.5 per cent of market share and a new entrant is an operator that has operated less than three years in the market.”NCC however warned operators to ensure that subscribers are not automatically migrated to the “pay as you go platform”.
The letter to the telcos also reminded them that the effective date for the interim price floor is December 1, adding that in view of the above, all service providers should ensure that tariff for data service reflects the Determination.
The letter with NCC/PCEA/T&C/TRF/MTN/006 as reference number was jointly endorsed by the Director, Policy, Compettiton and Economic Analysis, Josephine Amuwa and Head, Legal and Regulatory Services, Yetunde Akinloye.