The Nigerian Communications Commission (NCC) has issued an order requiring all telecom operators in the country to limit the number of tariff plans offered to a maximum of seven.
The NCC has approved new price rules for operators that aim to promote transparency, consumer awareness, and create fair competition among the Commission’s licensees.
It has also limited the number of bundles available per operator to 100, emphasising that no subscriber can be on more than one tariff plan at once.
A tariff plan, according to the NCC, is a structured pricing scheme that specifies the rates and terms under which subscribers get telecommunications services.
The NCC announced this in a document posted on its website and signed by the commission’s Executive Vice Chairman, Aminu Maida, on Saturday.
The NCC’s document read in part, “The number of tariff plans offered per operator is limited to seven, and the number of bundles offered per operator is limited to 100.
“There are no limitations to the number of add-ons a subscriber can opt into. However, each operator must have in place a mechanism that informs subscribers of the number of add-ons they have at the point of purchasing another add-on. Subscribers must be able to check (via USSD string, SMS) the number of add-ons purchased.”
Checks by our correspondent revealed that the two major telecom firms presently offer more pricing choices than the guideline allows.
MTN has eight tariff plans, Etisalat has seven, Airtel has ten, and Glo offers four.
The NCC’s ‘Guidance for the Simplification of Tariffs’ mandates full disclosure of all tariff components and circumstances.
Telcos must also assure clear and intelligible marketing and promotional materials.
The NCC also stated that carriers should promote consumer education and openness in all communications to allow consumers to make informed decisions.
It said, “Develop and submit detailed migration plans to transition subscribers smoothly to new tariff plans, without loss of service quality or benefits.”
“All promotional elements must receive prior approval from the Commission and should be offered as standalone products with clear terms and validity periods.
“Submit comprehensive periodical reports detailing all active tariff plans, bundles, promotions, and Quality of Service (QoS) metrics.
“The guidance shall take effect on 29 July and will remain valid and binding on licensees until further reviewed by the commission.”
The commission mentioned that all promotional elements are to be removed from tariff plans and offered as standalone promotions, “subject to its prior approval, time limits, QoS/capacity requirements, and adherence to full disclosure requirements.”.
The NCC stated that operators can maintain existing bonus-led tariff plans until 3 December, within which period they are expected to educate and migrate all subscribers to the simplified tariff plans.
It said, “Operators can choose to maintain only one bonus-led new subscriber acquisition plan. However, a new subscriber can only be retained on such a plan for a limited period of six months before being migrated to a standard tariff plan of their choice.
“Where a subscriber fails to migrate after being prompted in accordance with the applicable business rules, the subscriber will be reverted to the default tariff plan.
“Tariff elements of promotional activities/new acquisition plans referred to above will only be allowed under the following conditions: bonuses must comply with the commission’s price floor and price cap.
“In addition, actual depletion rates on bonuses must not exceed the price or fall below the price floor for voice services. The bonus allowances (voice/data/SMS) must be stated in naira terms and minutes/seconds for voice, GB/MB of data and number of SMS.
“Operators must fully disclose the above in their advertising materials.”
The telecommunications regulatory body also said add-on subscriptions must be optional for subscribers.
It reads, “Subscribers should be enabled to purchase any add-ons of their choice while remaining on their existing tariff plan and/or bundle.
“A free add-on shall be treated as a promotional offering and must be approved by the Commission by the guidelines on promotional advertisements, 2023.
“Additionally, in line with the Commission’s existing regulatory instruments, service providers must have evidence of informed consent from the subscriber to accept the add-on.”
The commission mentioned that there are penalties for non-compliance with the guidance, adding that operators must align their offerings within 90 days from the date of issuance.
It added, “Transition plans for existing tariffs must be submitted on or before 12 August 2024. The Commission will review and respond to submissions within 10 working days.
“Tariff approval and modification applications must include comprehensive disclosure forms detailing all aspects of the tariff.
“Non-compliance will result in penalties, including fines, suspension of tariff approvals, or other regulatory actions as set out in the Act, related regulatory instruments, and the subsisting Enforcement Process Regulation.”
The NCC issued directives to operators to always notify subscribers of any changes to their tariff plans, including migration to new plans, at least 30 days in advance, adding that “notifications must be clear, with reasons and benefits stated.”
However, operators have debunked claims of a tariff increase approval by the commission.
According to a text sent to our correspondent by the Chairman, Association of Licensed Telecom Operators in Nigeria, Gbenga Adebayo, on Saturday, he said, “Telcos have not been granted any approval for tariff review.”
