NCC enforces tariff simplification for enhanced transparency in telecom sector

NCC boss, Aminu Maida

The Nigerian Communications Commission (NCC) has mandated telecom operators to simplify their tariff structures to enhance transparency and consumer understanding. 

Effective July 29, 2024, the directive, titled "Guidance on the Simplification of Tariffs in the Nigerian Communications Sector," requires Mobile Network Operators (MNOs) to publish detailed tables of their tariff plans, including costs for voice, SMS, and data services.

Operators must provide clear information on add-ons, pricing, and terms, ensuring subscribers can make informed decisions. 

The directive also mandates that existing bonus-led plans can continue until December 31, 2024, during which operators must transition subscribers to simplified tariffs. 

According to a press release signed by Reuben Muoka, Director, Public Affairs of the NCC, and issued on Monday, August 5, 2024, the table should contain all necessary information for subscribers to make informed decisions, including details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.

The guideline, the press release further explains, is the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.

“The objectives of the simplification guidelines are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information so that they make informed decisions, and promote fair competition among licensees by standardising tariff structures,” NCC states.

Service providers, it also added, are also required to display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on or off-network and international calls, expected data speeds, and fair usage policies.

“Operators can maintain existing bonus-led tariff plans till 31st December 2024, within which period operators are expected to educate and migrate all subscribers to the simplified tariff plans,” the directive stated. 

The guidelines further mandate that MNOs must communicate tariffs to subscribers in "clear language and a user-friendly format," with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).

Additionally, “operators must offer stand-alone data bundles at fair prices to avoid tying consumers with products they do not need; bonuses on promotions must be stated in actual value; access fees and asymmetric fee structures must be eliminated,” among other conditions. 

The NCC emphasised that while complying with these guidelines, operators must also meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.
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