The Association of Licenced Telecommunications Operators of Nigeria (ALTON) on Thursday told telecom consumers in the country to brace up for poor data services, as a direct consequence of the stoppage of the proposed upward review of the data tariff floor.
The Chairman of ALTON, Mr Gbenga Adebayo, in a statement in Lagos, said there was the need for an upward review, so as to offer better data services to subscribers.
According to Adebayo, the Nigerian Communications Commission (NCC) acted within the purview of the law (Nigerian Communications Act 2003) which gave it statutory responsibility to promote healthy competition, by periodically reviewing voice and data tariffs in the industry, stressing that the commission’s intervention is to ensure the sustainability of the Nigerian telecommunications industry. He said while the operators understood the sentiment of the public against any such review, it is inevitable that it has to be done as not to do so will trigger a rash of poor quality of service.
The ALTON leader confirmed that NCC had extensive consultation with the industry prior to the finalisation of the data tariff floor.
“Further, the commission has since Wednesday suspended the implementation of its determination on the data tariff floor.
“ALTON notes that it is within the statutory remit of the NCC for it to make decisive interventions to address the data price concerns which had led to data prices falling to unreasonably low levels.
“This is with the effect that telecommunications operators were unable to recover the cost of providing data services and reinvest in capacity expansion to accommodate the increased usage arising from lower tariffs.
“The situation has been compounded by the recent economic challenges characterised by the steep depreciation of the naira.
“It is characterised by the need to resort to the parallel market and foreign exchange scarcity, which have considerably increased the capital and operational cost of providing telecommunications services.
“This has made current data tariffs unsustainable.
“This situation, if left unaddressed, could result in a sustained deterioration in the quality of data services across all networks and the attendant poor quality of experience for users.
“In this regard, our members await the conclusion of NCC’s market study, when the commission will be in a position to determine its requisite intervention,’’ Adebayo said.
He said that NCC introduced the minimum price for data services to help ensure cost recovery and drive the continued investment in the telecommunications sector.
The ALTON chairman said that it was necessary for the provision of world-class data services for the overall benefit of the Nigerian subscriber and the Nigerian economy.
“It is our belief that interventions such as these are in keeping with the NCC’s tradition of implementing customer-centric regulatory initiatives such as the Do-Not-Disturb Service and the Mobile Number Portability Scheme.
“These were introduced to enhance customer satisfaction with telecommunications services.
“ALTON also notes that price changes for data services across all networks following any intervention by the NCC are not expected to have a detrimental effect on broadband penetration contrary to some sentiments being expressed in the media.
“ALTON wishes to emphasise that while it is imperative that telecommunications operators continue to explore opportunities to provide their subscribers with more value for their money, it is important that prices be set at realistic levels.
“This will ensure that subscribers are not only able to afford services, but that operators are also in a position to provide first-rate Quality of Service to their subscribers,’’ he said.
The NCC on Wednesday suspended any further action on the directive to introduce price floor for data segment of the telecommunications sector beginning from December 1, 2016.
The Director, Public Affairs, NCC, Mr Tony Ojobo said in a statement that the decision to suspend the directive was taken after due consultation with industry stakeholders and the general complaints by consumers across the country.
Ojobo said that the commission had weighed all of these and consequently asked all operators to maintain the status quo until the conclusion of study to determine retail prices for broadband and data services in Nigeria.
He said that the regulatory body wrote to the Mobile Network Operators (MNOs) on November 1, on the determination of an interim price floor for data services after the stakeholder’s consultative meeting of October 19.
