There are currently 369 telecom tariff plans that the Nigerian Communications Commission is trying to simplify to help subscribers make wise decisions
The NCC has observed that telecom companies have integrated promotions into their tariff structures. While this approach has added value to many plans, it has also led to some confusion among subscribers. Finding a balance between promotional offers and clarity in pricing could enhance customer understanding and satisfaction.
According to the statement, each operator may only provide 100 packages and seven pricing variations beginning, …CONTINUE READING
The Nigerian Communications Commission (NCC) is streamlining 369 current telecom tariff plans to assist customers in making wise choices.
The NCC plans to implement a similar change inspired by India’s Telecom Regulatory Authority (TRAI), which in 2004 limited telecom providers to a maximum of 25 tariff options to enhance billing transparency.
“The major reason for initiating this consultation process was that the service providers have been offering a large number of tariff plans, and there were reports that this was confusing consumers and affecting their ability to make informed choices,” TRAI said in 2004.
The NCC stated that it is necessary to cap tariff plans, taking inspiration from India’s approach. “Similar to the India experience, the commission has placed a limit on the number of tariff plans an operator can offer at any given point in time,” the NCC noted.
The NCC’s “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector” states that each operator may only have 100 bundles and seven pricing options starting on or before December 31, 2024.
BusinessDay reported that this action, which was started in July, aims to increase clarity and lessen tariff complexity.
The NCC claims that telcos transformed promotions into tariffs, which now make up a sizable amount of tariffs.
Aminu Maida, executive vice chairman of the NCC, explained during the 93rd Telecoms Consumer Parliament: “To address tariff complexity, NCC issued a Guidance on Tariff Simplification, requiring operators to provide clear, accessible information on data plans and pricing. This transparency will empower consumers to make better-informed decisions about their data usage and billing.”
Maida said that in the upcoming months, operators will provide customers with tables that include all terms and conditions, billing rates, and tariff plans to comply with this instruction.
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), highlighted the benefits of simpler, more straightforward data plans.
One primary concern for the NCC is the confusion caused by the difference between tariff rates for promotional and regular plans. “What happens is that someone subscribes to a promo that promises them three times more. But what they don’t know is that the promo is charged at a higher rate than their normal billing rate, causing confusion when the airtime finishes quickly,” one NCC official explained.
To protect consumers, the NCC wants all bonuses to comply with established price floors and caps, with clear advertising of bonus allowances (voice, data, and SMS) in specific terms, such as naira, minutes/seconds, or gigabytes/megabytes. Operators must also notify customers of any changes to their tariff plans at least 30 days in advance and offer alternative options.
