Tariffs transparency: NCC directs telcos on simplification
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“Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” issued on July 29, 2024.
The Nigerian Communications Commission (NCC) has directed telecommunications operators to simplify their tariff plans, bundles, and promotional activities in a way that will provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service (SMS) and data services to subscribers.
Reuben Muoka, Director, Public Affairs of NCC in a statement on Monday said the directive to the operators was contained in a “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” issued on July 29, 2024.
According to him, the directive also mandated Mobile Network Operators (MNOs) to publish a comprehensive table showing the features of their tariff plans and bundle offers.
“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,” according to the statement.
According to NCC, the guideline was the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.
“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.
“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 directive stated.
Also, the guidelines further mandated MNOs to 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 also 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.
