The Nigerian Communications Commission (NCC), pursuant to the powers granted to the telecoms sector regulatory Commission by the Nigerian Communications Act 2003, has released the “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector (As Amended)“, dated November 2024.
ConsumerConnect reports the NCC disclosed the issuance of the new framework was sequel to a considerable number of consultations, which the Commission had made with telecoms industry, and other stakeholders in the ecosystem in the West African country.
According to the Commission, the guideline is the “outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.”
The telecoms sector regulator, in a recent notice accompanying the release of the tariff simplification framework December 3, 2024, requested all licensees to channel any issues they might have on the actual implementation of the Guidance directly to the Commission for attention.
The NCC also restated it had issued the document, “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector”, July 29 this year for further stakeholders’ inputs.
It, therefore, directed to Mobile Network Operators (MNOs) to simplify their tariff plans, bundles, and promotional activities in the country’s telecoms space before implementing the tariff simplification guidance, effective from January 2025.
According to NCC, this step is to ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information.
The Commission stressed the Guidance was designed to empower telecoms consumers to make informed decisions, and promote fair competition among licensees by standardising tariff structures in the country.
Specific objectives of tariff simplification guidance
Earlier, Mr. Reuben Muoka, Director of Public Affairs (DPA) at NCC, August 5 this year had stated the latest regulatory move aims “to provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service (SMS), and data services to subscribers.”
The statement indicated the Guidance mandates the MNOs to publish a comprehensive table showing the features of their tariff plans and bundle offers, it stated.
Besides, the NCC said the table should contain all necessary information for subscribers to make informed decisions, including details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.
Muoka also stated: “The objectives of the simplification guidelines are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information so that they make informed decisions, and promote fair competition among licensees by standardising tariff structures.
“Service providers are also required to display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on or off-network and international calls, expected data speeds, and fair usage policies.”
On consumer education before Telcos’ migrating subscribers to simplified tariff plans
The NCC directive further explained: “Operators can maintain existing bonus-led tariff plans till 31st December, 2024, within which period operators are expected to educate and migrate all subscribers to the simplified tariff plans.”
The guidelines further mandate that MNOs must communicate tariffs to subscribers in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).
Additionally, “operators must offer stand-alone data bundles at fair prices to avoid tying consumers with products they do not need; bonuses on promotions must be stated in actual value; access fees and asymmetric fee structures must be eliminated,” among other conditions.
The NCC emphasised that while complying with these guidelines, operators must also meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.