Cost of Data, Calls to Increase as Telecommunication Companies Write NCC for tariff Change, Propose New Prices

Cost of Data, Calls to Increase as Telecommunication Companies Write NCC for tariff Change, Propose New Prices

  • The cost of calls, data is set to go up as telecommunication companies have come together seeking a 40 per cent tariff increase
  • In an over 10 pages letter to the Nigerian Communications Commission, the GSM operators blamed the present rising cost of running a business
  • NCC is the independent regulatory authority for the telecommunications industry in Nigeria and Nigerians will be awaiting its decision

Nigerians are set to pay more for calls and data as telecommunication companies are proposing a new tariff increase by 40 per cent.

They made this known in a letter they sent to the Nigerian Communications Commission titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector.

The letter was written by the telecommunications companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria to the NCC.

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Cost of Data, Calls Nigeria
Customers register their MTN Group Ltd. mobile phone sim cards at a roadside kiosk in Lagos. Credit: George Osodi
Source: Facebook

According to the punch, the Telcos have proposed the price floor of calls will increase from N6.4 to N8.95 while the price cap of SMS will increase from N4 to N5.61.

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The Telcos noted that the increase in energy costs has impacted their operating expenses by 35 per cent, Ripples Nigeria report added.

The Telcos which include MTN, GLO, AIRTEL, and 9mobile also said that the introduction of the recent excise duty of five per cent on telecom services had further increased the burden of multiple taxes and levies on the industry.

The letter read in part,

“As the commission may be aware, the power sector under the supervision of its Nigerian Electricity Regulatory Commission of the power sector in November 2020 undertook a review of electricity tariffs to cater for the economic headwinds reported above.

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“In view of the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members. Details are hereunder:
“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.
“With respect to voice an SMS cost, ALTON respectfully requests the commission to consider a mark-up approach to address the upward price adjustment desirable for the industry. We have enclosed herein and marked as ‘Annexure 1’our proposal in that regard.
“For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report, are attached and marked ‘Annexure 2’ to provide a further illustration.

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“In implementing the said recommendations, however, we recommend that the 40 per cent increase in the cost of doing business be factored in to arrive at a cost price per GB in view of the current economic situation.”

FG orders NIN weekend registration nationwide

In a related development, NIMC has announced the commencement of weekend NIN registration at all NIN enrollment centres nationwide.

According to the commission, the weekend enrollment will enable those yet to obtain their NIN to do so within the timeframe given by the federal government before enforcement of NIN-SIM linkage commences.

The minister of Communications and Digital Economy, prof. Isa Ali Ibrahim Pantami urged citizens and legal residents to take advantage of the weekend enrollment.


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