The Nigerian Communications Commission (NCC) has ordered MTN and Airtel to reverse the hike in their data tariff plan with immediate effect.
MTN and Airtel subscribers realised that the operators had commenced a new data tariff plan which was an upward review of the cost of their voice and data plan, without prior notice, last week.
Airtel for instance, increased its monthly bundle for data plan to N1,100 for 1.5GB monthly data, N1200 for 2GB monthly data, N1,500 for 3GB monthly data, N2,200 for 4.5GB monthly data, N2,500 for 6GB monthly data, N3,300 for 10GB monthly data, N4,400 for 11GB monthly data, N5,500 for 20GB monthly data.
On the other hand, MTN also increased its monthly bundle for data plan to N1,100 for 1.5GB monthly data, N1,200 for 2GB monthly data, N1,500 for 3GB monthly data, N2,200 for 4.5GB monthly data, N2,500 for 6GB monthly data, N3,500 for 12GB, N5500 for 20GB monthly data, N6,000 for 25GB monthly data.
Following complaints by the telecom subscribers over the hike, NCC, in a statement released by the commission’s director of public affairs, Reuben Muoka, on Wednesday, October 19, ordered the mobile network operators to reverse the hike.
According to the commission, the unilateral 10 percent upward tariff adjustments for some voice and data services by the service providers on their networks had been approved and implemented.
The commission, however, said that the reversal is to allow further consultations with all industry stakeholders on the best approaches that will protect and uphold the interest of both the consumers and the service providers.
“The consideration for 10 percent approval for tariff adjustments for different voice and data packages was in line with the mandates of the commission as provided by the Nigerian Communications Act, 2003, and other extant regulations and guidelines, as this was within the provisions of the existing price floor and price cap as determined for the industry,” the commission said.
“The decision was also taken after a critical and realistic review and analysis of the operational environment and the current business climate in Nigeria, as it affects all sectors of the economy.
“Furthermore, even though the tariff adjustment was proposed and provisionally approved by the management, pending the final approval of the board of the commission, in the end, it did not have the approval of the board of the commission.
“As a result of this, the commission has ordered the network operators to reverse the hike in their data tariff plan with immediate effect.
“The honourable minister of communications and digital economy, Isa Ali Ibrahim Pantami, has maintained that his priority is to protect the citizens and ensure justice to all stakeholders involved.
“As such, anything that will bring more hardship at this critical time will not be accepted.
“This was also why he obtained the approval of President Muhammadu Buhari for the suspension of the proposed 5 percent excise duty, in order to maintain a conducive enabling environment for the telecom operators.
“Inasmuch as there is an increase in the cost of production, the provision of telecom services is still very profitable, and the subscribers mustn’t be subjected to a hike in charges.”
The commission, however, added that it will continue to entrench transparent processes and procedures for rate determination in the industry, The Cable reports.
“The process is usually carried out with wide industry consultation. It is through these processes that price floors and price caps for data and voice services are benchmarked, regularly reviewed, and determined from time to time,” it added.
“The commission will continue to abide by this time-tested process and international best practice to ensure efficient pricing mechanisms for the telecommunications industry in Nigeria.”
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