NCC SUSPENDS DATA PRICE INCREASE SAYING NOT AN INCREASE

The Nigerian Communications Commission (NCC) has suspended the increase in tariff for online DAT usage that would have taken effect from tomorrow, December 1.

In a tweet posted a few minutes ago on Twitter by Tony Ojobo Director Public Affairs, the NCC decided to stay action because of public outcry against the move.

However, it tried its best to argue that what was intended was a floor for tariffs to check market manipulation by the big players and create level playing ground for all.

Thus it said that the intention was to introduce minimum data usage charge of N0.90/MB and so, make room for even small players to make money.

Declared Ojobo: "The price floor is not an increase in price but a regulatory safeguard put in place by the telecommunications regulator to check anti competitive practices by dominant operators"

It also said that the proposed floor was no where near the floor of N3.11 ruling in 2014 before it was scrapped altogether.

However, the curious thing was that the now stalled floor price was exactly twice MTN's current N0.45 and this was Nigeria's major player.

Besides it was more than Globacom's N0.21 and almost twice Airtels N0.94. These are the three companies controlling a large chunk of the market.

Of the big four, only Etisalat charged N0.94 currently. In other words, for customers of the major companies in the industry, the increase likely would have been not less 50% with MTN users likely to cough out double current tariff.

Of course, it was an attempt to jack up rates astronomically for reasons not too connected with the fronted practices by big players

The Senate had already passed a resolution against the move and data users were set for a show down with the NCC and the Presidency over the move.

So, making a u turn was a smart move and most welcome but it reminds all that there limit to asking people to pay more for anything while an economy is in recession.

The government and its agencies are not the only ones desperately in need of Naira to spend.

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