Following approval for increase in telecoms tariff, there have been calls for clarification and simplification of the multiple tariff plans for a precise increase. Abolaji Adebayo reports
Last week, the Federal Government agreed that there would be increase in telecoms tariffs as requested by telecommunications operators in the country.
This, however, came with an assurance that the hike would not be as high as the 100 per cent requested by operators.
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, disclosed this during a stakeholder meeting held in Abuja on Wednesday.
He stated that the Nigerian Communications Commission (NCC) would develop guidelines for a reasonable adjustment to telecoms tariffs.
Tijani explained: “We have reviewed various factors to ensure the telecoms sector continues to contribute meaningfully to Nigeria’s development.
These include implementing the Executive Order to protect telecoms infrastructure, significantly increasing local content, and ensuring the sustainability of telecom companies.
“As inflation affects economies worldwide, we are focused on maintaining the viability of these companies so they can keep supporting our economy.
Over the past weeks, telecom operators have agitated for a 100 per cent increase in tariffs, but this is not something the government can agree to at this time.”
The Minister reiterated government’s commitment to balancing the interests of consumers and operators while fostering economic growth in the industry.
However, there has bee agitation for the clarification of multiple tariff plans being operated by the telcos, which have made it difficult for subscribers to make decisions on call and data tariffs.
Mobile network operators (MNOs) in Nigeria have multiple tariff plans put up on their networks.
NCC’s intervention
The Nigeria’s telecoms regulator had warned of a new guideline that mandates telecommunications operators to publish details of subscribers’ tariff plans and billings in a bid to enable consumers to make informed decisions on their data usage and promote transparency.
Discovery
An inquiry into the incessant complaints by telecoms customers on data depletion led to the discovery of multiple tariff plans for voice and data by the four major mobile network operators in Nigeria.
It was discovered that there were about 369 different tariff plans across the networks for both voice and data which are tied to promotion on their platforms.
The analysis of the various tariff plans indicated that MTN, as the largest operator, currently has 159 tariff plans, with 14 for voice and 145 for data. Airtel has 27 for voice and 41 for data services.
Globacom has six for voice and 32 for data, while 9mobile has seven different tariff plans for voice and 97 for data.
Commenting on the situation, the Director, Public Affairs, Nigerian Communication Commission (NCC), Dr. Ikechukwu Adinde, said majority of the telecoms subscribers in the country did not know the actual tariffs charged by their network providers.
According to him, the situation has made it difficult for many subscribers to actually select the best tariff plan for them since there is proliferation of such plans on the networks of their providers, noting that most times, the difference between two tariffs is not discernable by the subscribers.
He said this had been affecting the quality of experience (QoE) being advocated by the commission, and so creating uncertainty for the consumers.
Meanwhile, he said the Commission would simplify the tariff plans and streamline them to just seven for a better understanding of the consumers and to enhance the quality of experience.
“The whole idea is to ensure that consumers have a good experience because too many tariff plans affect the quality of service – all benefits or allowances, voice, SMS, and data must be seated in clear, useful, and user-friendly formats,” he added.
Data depletion
On data depletion, which many subscribers have constantly been complaining about, Adinde said there eere about six factors that have been discovered to be causing data depletion.
Among the factors, he said the consumers should be aware of are their activities on their devices, the complexity of their devices, the number of unused applications they open on their devices, and other factors.
“That depletion is just a perception, but not the desire of the operators, whereas, in reality, it is the activities that people do with their phones that consume their data. So,
Simplification of tariff plans is necessary for consumers to know the exact amount they pay for the telecoms services
while you are here, we expect you, journalists, who now have a better understanding of this, to also communicate and help us to educate and create more awareness about what uses data on the phone.
What really uses data is the activities that we embark upon. The more activities you carry on, the more data you use, and the stronger the phone in terms of the spread of the phone, resolution of the phone, the more likely you are to use more data.
“Because data depletion came up on our own statistics as one of the five top concerns. That’s why the industry decided to dedicate resources to really address and create more awareness about what depletes data so people are able to understand how to manage their data resources,” he said.
Regulatory guideline
Meanwhile, the NCC has issued a ‘Guidance on Tariff Simplification’, which will take effect in coming December this year.
Earlier at the 93rd Telecoms Consumer Parliament, themed “Optimising Data Experience: Empowering Consumers through Awareness and Transparency in a Consumer-Centric Telecom Industry” in Abuja, the NCC Executive Vice Chairman and CEO, Dr. Aminu Maida, had noted that the move will help address tariff complexities leading to a clearer understanding of data consumption and reducing misconceptions about data depletion.
“To address tariff complexity, NCC issued a ‘Guidance on Tariff Simplification’, requiring operators to provide clear, accessible information on data plans and pricing.
This transparency will empower consumers to make better-informed decisions about their data usage and billing.
“In the coming months, operators will implement this guidance, presenting consumers with tables detailing their tariff plans, billing rates on each plan, and all terms and conditions related to the tariff plans they are on.”
Misconception
This directive follows a series of misconceptions and complaints by subscribers accusing mobile network operators of fraudulent data depletion across all networks.
The EVC explained why NCC had to take action, saying: “Earlier this year, NCC analysed consumer complaints, revealing data depletion and billing issues as top concerns.
In response, we directed Mobile Network Operators and ISPs to conduct audits of their billing systems, which reported no major issues.”
According to Maida, information about data usage and tariffs is important to establish and instill consumer confidence.
“The Commission believes that an informed consumer is a better-equipped consumer, leading to a clearer understanding of data consumption and reducing misconceptions about data depletion.
“Smartphones, even when idle, often run background applications like automatic updates and location services, which consume data.
Additionally, highdefinition streaming services like Netflix consume substantial data— about three gigabytes per hour in high definition or seven gigabytes in ultra-high definition,” he explained.
Enlightenment
He further noted that consumer perception has been distorted due to a lack of information on salient contributors to tariff usage, including the impact of high-resolution devices and improved technologies on data use and the complexity of operator tariffs.
The EVC explained that with the advent of 4G and 5G, as well as devices with ultra-high-definition screens, data consumption has naturally increased.
“For example, while viewing a photo on Instagram might have required only 100 kilobytes of data five years ago, today, with advanced camera resolutions, a photo can consume between two to four megabytes when opened on Instagram.
“According to Tech Advisor, an online resource that offers tech reviews, spending an hour on Instagram can set you off an average of 600 Megabytes of your data, while streaming platforms like YouTube would set you off by about 3.5 to 5.4 Gigabytes per hour.”
He also noted that improved technologies was beyond their purchase cost to pockets, but also come at a cost to data. He said: “Because they have better screen resolutions, they consume higher quality media that consumes more data.
This is the same for our increasing digital habits: according to DataReportal, the world’s internet users are spending less time watching television; the average daily television viewing has fallen by over eight per cent in the past year.
These viewers are now spending more time on their telephones, tablets, and smart TVs streaming programmes that they would previously have watched on broadcast television.”
Solution
Also, as a means of curbing the data challenges, the Commission, in collaboration with major operators, launched a Joint Industry Campaign on Consumer Awareness of Smarter Data Usage.
This media campaign, spanning radio, television, newspapers, and mobile networks’ SMS, aims to educate consumers on effective data management.
Such messages as those that highlight the use of an individual’s smartphone devices to track data usage and set limits on the amount of data they want to use daily.
Last line
Simplification of tariff plans is necessary for consumers to know the exact amount they pay for the telecoms services.
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