The Nigerian Communications Commission (NCC) is set to simplify the tariff structure in the telecommunications sector to enhance customer experiences.
The commission has announced plans to streamline the current 369 telecom tariff plans across providers like MTN, Glo, and others. This initiative, which aims to make the sector more consumer-friendly, will take effect on or before December 31, 2024.
The NCC’s new “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector” limits telecom operators to a maximum of 100 bundles and seven tariff options.
This move addresses the rampant confusion caused by the excessive proliferation of tariff plans.
NCC’s Executive Vice Chairman, Dr. Maida emphasised the need for clarity during the 93rd Telecoms Consumer Parliament, noting that promotions disguised as tariff plans have compounded the complexity, leaving consumers struggling to make informed choices.
“Telecom operators must provide clear and accessible information on data plans and pricing. This transparency will empower consumers to make better-informed decisions about their data usage and billing,” Maida stated.
The NCC’s approach mirrors the success of India’s Telecom Regulatory Authority (TRAI), which, in 2004, capped telecom providers at 25 tariff options to enhance billing transparency and consumer understanding. The NCC sees this as a proven strategy for simplifying services and ensuring that consumers are not overwhelmed by an excess of plans.
One of the NCC’s primary concerns has been the confusion stemming from promotional offers. According to an NCC official, “Consumers often subscribe to promotions that promise bonuses but are unaware that these promos are charged at higher rates, leading to faster depletion of airtime.”
To address this, the NCC has mandated that all bonuses align with established price floors and caps. Operators must also clearly advertise promotional allowances in specific terms, such as naira, minutes, seconds, gigabytes, or megabytes.
Telecom operators will be required to provide customers with detailed tables outlining all tariff plans, billing rates, and terms and conditions. Changes to tariff plans must be communicated to subscribers at least 30 days in advance, ensuring ample time for customers to assess their options.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), commended the NCC’s move, noting that simpler, more transparent data plans will eliminate confusion and improve customer experience.
