Telecoms Tariffs: Senate summons minister, NCC, network providers
The Senate on Wednesday, pandered to the outcry by Nigerians against the plan by the Nigeria Communications Commission (NCC) to increase the tariff for data by the GSM providers, just as it ordered the Commission to put the plan on hold.
All the same, it summoned the Minister of Communications, Mr. Adebayo Shittu, Nigeria Communications Commission (NCC) and network providers to appear before its Committee on Communications to explain the rationale behind the decision to increase data tariffs.
In what seemed like a twist, the NCC shortly after the Senate ordered it to suspend its plan on tariff increase, announced through a press statement that it had resolved to put the plan on hold to enable it engage in further consultations on the issue.
In the same breath, the Senate mandated its Committee on Communications to commence a comprehensive investigation into the matter which has generated a range of controversies across the country and report back to it within one week.
The decision by the Senate against tariff increase was sequel to a motion moved by Deputy Senate Leader, Bala Ibn Na’Allah, during which he condemned the planned hike in data tariffs, saying it would further impoverish the people.
Also speaking on the matter, Vice Chairman of the Committee on Communications, Senator Solomon Adeola (APC Lagos West), described the policy as not only ‘unholy’ but also ‘unfriendly’.
He assured the Senate that the committee would act on the mandate and report back to it next Tuesday
“We are up to the task. And I can assure the Senate that we will swing into action immediately. We will invite all the necessary agencies that are involved in this policy that is unholy and unfriendly and get back to the Senate unfailingly on Tuesday,” he said.
In his remark, Senate President Bukola Saraki accused the NCC of failing to carry out enough consultations before announcing the policy.
He also asked the committee to investigate allegations of non-compliance with laid down regulations by telecoms operators.
NCC had in a letter addressed to telecoms operators on November 1, 2016, put the interim floor price for data services at 0.90k/MB for big operators, adding that “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.”
It added: “In order to provide a level playing field for all operators in the industry, small operators and new entrants to acquire market share and operate profitably, small operators and new entrants are hereby exempted for the price floor for data services.
“For the avoidance of doubt, a small operator is one that has less than 7.5 percent market share and a new entrant is an operator that has operated less than three years in the market. All operators are to ensure that subscribers are not automatically migrated to pay-as-you-go platform. Also, note that effective date for the interim price floor is December 1, 2016.”
The MTN had already began implementation of the tariff increase, sending text messages to its customers on Monday, announcing the hike in its data tariffs beginning today. “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,”