The Nigerian Communications Commission (NCC) has approved new telecoms tariff plans for the telecoms industry that went into force on Monday, according to the pricing rules just released by the telecoms regulator.
The newly-issued “Guidance On The Simplification of Tariffs In The Nigerian Communications Sector” signed by Dr Aminu Maida, NCC Executive Vice Chairman, aims to simplify the pricing of a wide range of services across the Nigerian telecoms industry, the regulator says.
The rules guide what service providers can charge to their subscribers for either a bundle or unit of a product/service across the Nigerian telecoms market that accounts for 219,304,281 phone lines; 164,368,292 internet subscriptions and 94,364,751 broadband connections as at Q1 2024.
Under the rules which stipulates a tariff plan as “a structured pricing scheme that outlines the charges and conditions under which telecommunications services are provided to subscribers,” NCC orders that “every subscriber must be on a tariff plan and no subscriber can be on more than one tariff plan at a time.”
NCC: Guidance takes effect on July 29, 2024
“The Guidance,” NCC says, “shall take effect on 29th Day of July, 2024 and will remain valid and binding on licensees until further reviewed by the Commission.”
The Guidance provides stricter pricing rules for tariff plans, add ons, bundles, bonuses, promotions, top ups, and other elements that provide subscribers access to voice, data, sms and other services delivered by telcos in Nigeria.
Under the rules which stipulates a tariff plan as “a structured pricing scheme that outlines the charges and conditions under which telecommunications services are provided to subscribers,” NCC orders that “every subscriber must be on a tariff plan and no subscriber can be on more than one tariff plan at a time.”
Additionally, the number of tariff plans offered per operator is now limited to seven while the number of bundles offered per operator is limited to 100. “There are no limitations to the number of Add-ons a subscriber can opt-into. However, each operator must have in place a mechanism that informs subscribers of the number of Add-ons they have at the point of purchasing another Add-on. Subscribers must be able to check (via USSD string, SMS) the number of Addons purchased,” according to NCC.
According to NCC, the Guidance was issued “for the simplification of tariff plans, bundles and promotional activities that include tariffs. This Guidance is designed to enhance transparency, improve consumer understanding and foster fair competition amongst licensees of the Commission.”
Operators can maintain existing bonus-led tariff plans till December 31, 2024, “within which period operators are expected to educate and migrate all subscribers to the simplified tariff plans.”
The telecoms regulator says the rules will reduce the complexity of tariff plans and bundles; ensure that promotional elements of tariff plans are transparent and fair; protect consumers’ interests by providing clear and understandable tariff information; and promote fair competition among licensees by standardising tariff structures.
The telecoms regulator says the rules will reduce the complexity of tariff plans and bundles; ensure that promotional elements of tariff plans are transparent and fair; protect consumers’ interests by providing clear and understandable tariff information; and promote fair competition among licensees by standardising tariff structures.
According to NCC, the rules apply to all the mobile network operators (MNOs), who “must apply these rules in their entirety to all retail products offered to individual subscribers (both prepaid and postpaid). Other categories of Licensees are however required to apply only the disclosure requirements and transparency template as well as the conditions for tariff approvals.”
NCC says that operators must align their offerings with the Guidance within 90 days from the date of issuance. Transition plans for existing tariffs must be submitted on or before 12th August, 2024, according to the telecoms regulator.
To promote disclosure and transparency, NCC says that all operators’ advertising materials must make full disclosure of all tariff and other components applicable to the plan in accordance with the provisions of the License Conditions, the Consumer Code of Practice Regulations and the Guidelines on Promotional Advertisement.
“Every Operator is required to publish on its website (in a tab dedicated to tariff information), a table showing characteristics of each tariff plan and bundle it offers. The table must display all information which is necessary to enable the subscriber make a comparison between the offered tariff plan and others, and thereby to make an informed choice,” according to the telecoms regulator.
NCC says the information to be provided on the operator’s website should be presented using the template below:
The NCC Guidance On The Simplification of Tariffs In The Nigerian Communications Sector: Frequently Asked Questions (FAQs)
- What are the primary objectives of these tariff simplification Guidance?
o The Guidance aim to enhance transparency, ensure consumer understanding, and promote fair competition by simplifying tariff structures and promotional elements. - How should promotional elements be submitted for approval?
o Operators must submit detailed proposals of standalone promotions, including their terms, duration, and compliance with the Quality of Service (QoS) Regulations and capacity requirements, for prior approval by the Commission. - What happens if an operator fails to comply with this Guidance by the specified deadlines?
o This Guidance is a regulatory directive and non-compliance will lead to penalties, which may include fines, suspension of tariff approvals, or other regulatory actions as provided in the Act, related regulatory instruments and the Enforcement Process Regulations. - Can operators offer more than seven (7) tariff plans if they demonstrate consumer demand?
o No, the limit of seven tariff plans per operator is mandatory to reduce complexity and enhance consumer understanding. - Can operators offer more than a hundred (100) bundles if they demonstrate consumer demand?
o No, the limit of hundred bundles per operator is mandatory to reduce complexity and enhance consumer understanding. - How will the Commission ensure that operators adhere to the standards and KPIs set in the Quality of Service (QoS) Regulations?
o The Commission will conduct regular audits and inspections, and operators must submit periodical reports detailing QoS metrics alongside their tariff and bundle reports.
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