The Nigerian Communications Commission (NCC) in consultation with all stakeholders in the industry, who are impacted by the decisions made regarding the business model they execute under the commission’s licence they hold.
The Minister of Communications and Digital Economy, Dr. Isa Pantami, in November 2019, directed the NCC to ensure that telecommunications operators slash data prices. What do you make of the directive?
It is not about having a new directive, the reality and facts are that Nigeria is currently 10th on the list of African countries with cheap data. For instance, one gigabyte of data bundle costs $2.78, and this meets the Alliance for Affordable Internet’s (a4Ai)’ 2-for-1, which states that two percent or less of average household wage should be the cost spent on one gigabyte of data per month.
As we use and rely on the Internet more, we realise that one gigabyte of data soon runs out and not many families live above $2 per day! So, it is inevitable that the price of data needs to come down to be anywhere affordable for those below the poverty line. This is so that these households would be able to access the Internet. We, as an industry association, will work with the relevant stakeholders to ensure that all inhibitors to the price coming down are removed, such as multiple taxes, high cost of Rights of Ways (RoW), reduce vandalisation and theft of telecoms equipments.
If tariff reviews must be achieved, what are the factors that will trigger it?
I know that the Nigeria Communications Commission (NCC) has already engaged KPMG and has every right under the Nigeria Communications Act 2003 to introduce any method that is deemed necessary to justify the factors, challenges, targets and enabling environment to ensure that prices set by NCC are not going to cause a destruction of the industry, and the investments to date ($70bi).
Does price reviews have timing?
Usually, a one-year timeframe is adequate, however, stakeholders’ consultation can add another six to nine months to the overall process.
The directive by the minister amounted to forcing reduction by fiat, and it hasn’t gone down well with industry players. Don’t you think so?
The minister has his style of management and earlier in December 2019, the Association of Telecommunications Companies of Nigeria treated him to a reception in Abuja where he further demonstrated that he would work with the body and other stakeholders to overcome some of the difficulties faced by the industry. I will always advise dialogue in whatever form to address knotty issues and not through continuous conflict with critical stakeholders.
This news was culled from The Guardian
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