IT NEWS NIGERIA:
Nigerians will get new data pricing in 16 weeks as Nigerian Communications Commission (NCC) has commenced broad-based engagement with stakeholders on appropriate pricing for retail broadband in the country.
Executive Vice Chairman of NCC , Professor Umar Danbatta revealed this at a stakeholders’ forum on the study for the determination of cost-based pricing for retail broadband and data services in Nigeria in Lagos today.
According to him, “it has therefore become imperative to develop a proper pricing structure for broadband in Nigeria. This will not only ensure the affordability and availability of Broadband but also ensure fair competition by checking price discrimination, excessive pricing, predatory pricing, margin squeeze and price fixing amongst other things”
IT NEWS NIGERIA gathered that the key objectives of today’s event, according to NCC, is to inform operators and stakeholders of the objectives of the study, provide insights on the methodology underlying the study,and seek buy-in and your active participation in study.
Following the removal of the data price floor in 2013, operators were permitted to freely determine prices based on prevailing market conditions.
Leveraging on the surge in mobile uptake, the race for the consumer gradually resulted in low pricing strategies to gain / maintain consumer loyalty. This has resulted in a “scissors effect” with usage increasing but average revenues per user decreasing.
This has resulted in the imperative for an objective basis for pricing data at the wholesale level with the final aim of pricing at the retail levels. To address these issues, the NCC has commissioned a study to determine an objective basis for data pricing
Objectives of this study are to assist the industry achieve an active functioning market that will bring about adequate competition and improved quality of service and provide options from which the Commission will adopt appropriate regulatory measures.
The study and implementation is estimated to take 16 weeks.
NCC said it has been actively intervening to provide an enabling environment for competition among operators in the Telecoms industry.
Recall, In 2013, the NCC conducted a study to assess the level of competition within the industry with a focus on the Wholesale Leased Lines/Transmission
Capacity market. The objectives of the study were: to assess the transmission cable market through the analysis of market features such as pricing, regulatory climate and competition as well as; develop a cost model and draw inferences on the cost of providing transmission services and the transparency and competitiveness of pricing in the markets.
Since 2013 the industry’s competition dynamics in the broadband segment has dramatically evolved, with new challenges or issues necessitating the need to explore new alternatives.