The Nigerian Communications Commission (NCC), on July 29, 2024, issued new guidelines for the telecommunication operators, directing them to provide sufficient information to their subscribers ensuring that the subscribers have total knowledge as to how they are being charged for each call and how much data they consume on the Internet.
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Transparency and Consumer Understanding
These guidelines were contained in a document released by the regulator, which was titled ‘Guidance for the Simplification of Tariffs in the Nigerian Communications Sector’, through the Commission seeks to ensure transparency, improve consumer understanding, and foster fair competition amongst its licenses. This directive was given in a statement by the NCC’s Director of Public Affairs, Dr. Reuben Muoka.
Dr. Muoka said that the move was aimed at providing clear, easy-to-understand, and comprehensive information about the cost of voice calls, Short Messaging Service (SMS) and data services to subscribers.
“It mandates Mobile Network Operators (MNOs) to publish a comprehensive table showing the features of their tariff plans and bundle offers”, he said. “The table should contain all necessary information for subscribers to make informed decisions. It should provide details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.”
Stakeholder Consultations
The NCC explained that the guidelines are the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, as well as extensive data analysis on consumer preferences and expectations. The commission stated that 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 standardizing tariff structures.
Specific Areas Addressed By The Guidelines
Here are some key areas the guidelines seeks to address:
Bonus-Led Tariff Plans
According to the commission, all promotional elements are to be removed from tariff plans and be offered as standalone promotions, “subject to its prior approval, time limits, QoS/capacity requirements, and adherence to full disclosure requirements”.
“Operators can choose to maintain only one (1) bonus-led new subscriber acquisition plan. However, a new subscriber can only be retained on such plan for a limited period of six (6) months before being migrated to a standard tariff plan of their choice,” NCC said.
“Where a subscriber fails to migrate after being prompted in accordance with the applicable business rules, the subscriber will be reverted to the default tariff plan.
“Tariff elements of promotional activities/new acquisition plans referred to above will only be allowed under the following conditions; Bonuses must comply with the commission’s price floor and price cap.
“In addition, actual depletion rates on bonuses must not exceed the price or fall below the price floor for voice services. The bonus allowances (voice/data/SMS) must be stated in naira terms and minutes/seconds for voice, Gigabytes/Megabytes of data and number of SMS. Operators must fully disclose the above in their advertising materials.”
Consent For Add-Ons From Tariff Plans
NCC also stated that add-on subscriptions must be optional for all subscribers.
“Subscribers should be enabled to purchase any add-ons of their choice while remaining on their existing tariff plan and/or bundle,” the document reads.
“A free add-on shall be treated as a promotional offering and must be approved by the Commission by the guidelines on promotional advertisements, 2023.
“Additionally, in line with the Commission’s existing regulatory instruments, service providers must have evidence of informed consent from the subscriber to accept the add-on.”
‘Limit of 7 Tariff, 100 Bundle’
NCC also set the number of tariffs each mobile network operator can offer to be limited to seven, adding that the number of bundles offered per operator is now restricted to 100. “There are no limitations to the number of Add-ons a subscriber can opt into. However, each operator must have in place a mechanism that informs subscribers of the number of Add-ons they have at the point of purchasing another Add-on.
Penalties For Noncompliance
The NCC said there are penalties for noncompliance with the guidance, adding that operators must align their offerings within 90 days from the date of issuance.
“Transition plans for existing tariffs must be submitted on or before 12th August 2024. The Commission will review and respond to submissions within ten (10) working days,” the document added.
“Tariff approval and modification applications must include comprehensive disclosure forms detailing all aspects of the tariff.
“Non-compliance will result in penalties, including fines, suspension of tariff approvals, or other regulatory actions as set out in the Act, related regulatory instruments and the subsisting Enforcement Process Regulation.”
NCC also directed operators to always notify subscribers of any changes to their tariff plans, including migration to new plans, at least 30 days in advance, adding that “notifications must be clear, with reasons and benefits stated”.
When the guidelines are implemented and start taking effect, NCC said it is aiming for a 50 per cent improvement in service quality by the end of 2024 and encouraged users to monitor data usage and consider larger data plans if necessary.