NCC Plans to Introduce New Policy on Transmission Cable Pricing

The Nigerian Communications Commission (NCC) is considering introducing a new pricing regime for effective cost-based transmission cable pricing for the telecoms sector in the country.

NCC aims to have full control of the market and protect smaller telecoms operators from dominant ones who take undue advantage of their small size to introduce arbitrary charges on connectivity and had contracted Klynveld Peat Marwick Goerdeler (KPMG) two years ago to carry out the study as part of its regulatory oversight function to address competitive dynamics, pricing and related matters in cable transmission pricing among operators. The proposed pricing regime was contained in a study presented by KPMG at a stakeholders’ consultative forum organized by the NCC in Lagos.

KPMG has now come out with a recent study in Lagos,  entitled ‘Cost-based Transmission Cable Pricing and Development of an Accounting Separation Framework/Retail Voice Tariff’ conducted on Nigerian telecom market which would set a price cap and rules for transmission cable pricing for telecom operators and stakeholders.

The head of telecom consulting, KPMG, Mr Joseph Tegbeh, said the study covers the entire nation where operators exist, adding that “the model has been built on a national basis. We are presenting it to you so that you can make your comments for us to factor it in and come out with a final draft.”

Although the representative of the telecom companies who spoke sought clarifications on issues like multiple taxations, multiple regulations and discriminatory pricing, the Executive Vice Chairman of the NCC, Dr Eugene Juwah, explained that the current arbitrary, predatory and discriminatory pricing inherent in the transmission line market segment would be reversed with a new regulation and enforcement on cost-based transmission cable pricing.