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2016 NCC Data Tariff Increase In Retrospect
The NCC directed mobile operators to impose a floor price of ₦0.90 per megabyte. The NCC argued this rule was intended to help smaller operators against larger operators who could overwhelm the market with data access at reasonable prices, thus stifling healthy competition.
However, as a result of widespread economic impact, many Nigerians felt the meaning behind the NCC price floor was simply a sudden and unjustifiable increase in data tariffs.
The backlash was immediate and furious, because once the proposal reached the National Assembly, the Senate decried the proposal as languid and ordered that NCC cease their proposal immediately. The Minister for Communications, dissociated the Federal Government from the proposed price floor before Parliament, claiming the Ministry did not approve any tax on access to data.
Regulator Backs Down
In response to mounting public and legislative pressure, the NCC halted the implementation of the new tariff floor. The regulator directed all operators to maintain their current pricing until additional consultations and studies on retail broadband cost structures were completed.
Finally, the debate over tariff increases in 2016 highlighted the importance of establishing a communication structure among regulators, operators, and consumers. While the NCC’s policy intention was to address market competition, the timing of the announcement and withdrawal from public view elevated it to the level of national concern.
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