The
Association of Licensed Telecommunications Operators of Nigeria (ALTON) on
Thursday told consumers to expect poor data services, a day after the Nigerian
Communications Commission was compelled by public backlash to suspend a planned
tariff raise.
The
chairman of ALTON, Gbenga Adebayo, said in a statement in Lagos that there was
need for an upward review of the tariff, so as to offer better data services to
subscribers.
Mr.
Adebayo said the operators fully understood the public sentiments that greeted
the announcement of a minimum data tariff being introduced by the Nigerian
Communications Commission (NCC).
He said
the NCC intervened to set the data tariff floor in view of its statutory
responsibility to promote healthy competition, by periodically reviewing voice
and data tariffs in the industry.
According
to him, the commission’s intervention was to ensure the sustainability of the
Nigerian telecommunications industry.
He also
said the regulatory body 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,” Mr.
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 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 News
Agency of Nigeria (NAN) reports that 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, Tony Ojobo, said in a statement that the
decision to suspend the directive was taken after due consultation with
industry leaders and the general complaints by consumers across the country.
Mr. Ojobo
said 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
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. (NAN)
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