Minister of Communications, Mr. Adebayo Shittu, yesterday, absolved the Federal Government of complicity in the bid by the Nigerian Communications Commission, NCC, to increase the price consumers pay on data services. The Minister distanced his ministry from the controversial data tariff increase, denying that it authorized it. This came as the Senate also, yesterday, condemned in totality the planned tariff increment and asked network providers to immediately stop implementation of the new tariff billed to take effect today. Reacting, telecoms regulator, the Nigerian Communications Commission, NCC, announced immediate suspension of the new minimum pricing template for data services by mobile operators in the country, explaining that its decision was informed by the need to make more consultations.
Speaking on RayPower FM’s Fact File programme, yesterday, Adebayo maintained that the Federal Government never issued any directive to either the regulator, the NCC, or the telecommunications operators in the country authorizing increases in prices of data from today as claimed.
“I can tell you that I was never a party to it (data tariff hike). Government never gave any such instruction. This government believes in democratic process and we would continue to protect the interest of Nigerians,” he said’’.
On its part, the Senate condemned in totality the tariff increment by service providers in Nigeria and asked network providers to immediately stop the implementation of the new tariff billed to take effect today. Noting that the new tariff regime was ill-timed and anti-people, because of the present economic situation in the country, the Senate summoned Shittu, NCC, and network providers to appear before its Committee on Communications to intimate it on why they must increase data tariffs. The Senate also asked its Senator Gilbert Nnaji-led Committee on Communications to commence a comprehensive investigation into the matter that has, among others, generated controversies across the country and report back within one week. The resolutions of the upper chamber were sequel to a motion moved by Deputy Senate Leader, Senator Bala Ibn Na’Allah, during which he condemned the planned hike in data tariffs, saying it would further impoverish the people. It will be recalled that some telecommunications service providers had issued statements to customers, through customised Short Message Services, SMS, intimating them of imminent plans to increase tariff on all mobile data purchased with effect from Thursday, December 1, 2016. According to service providers, the development is in connection with new guidelines by the regulator, NCC.
Also speaking, Vice Chairman of the Committee on Communications, Senator Solomon Adeola (APC, Lagos West), who described the policy as not only ‘unholy’ but also ‘unfriendly’, however, 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,” Adeola said. In his remarks, Senate President, Bukola Saraki, who accused the NCC of failing to carry out enough consultations before announcing the policy, 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 finalization of the study on the determination of cost-based pricing for retail broadband and data services in Nigeria. “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 per cent 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.” Acting on this directive, some telcos sent text messages to their subscribers on Monday, announcing the hike in its data tariffs beginning today.
Meanwhile, NCC, yesterday, announced the immediate suspension of the new minimum pricing template for data services by mobile operators in the country.
“Following concerns that visited the directive to introduce price floor for data segment of the telecommunications sector, beginning from December 1, 2016, the Nigerian Communications Commission, NCC, has suspended any further action in that direction. “The decision to suspend this directive was taken after due consultation with industry stakeholders and the general complaints by consumers across the country.”