ICYMI: NCC issues new tariff guidelines for telcos, limits bundles to 100

The Nigerian Communications Commission (NCC) has approved new tariff guidelines for operators.

The document was signed by Aminu Maida, executive vice-chairman of the commission, and dated July 29.

In the document, titled, ‘Guidance for the Simplification of Tariffs’, the NCC said the guidelines aim to enhance transparency, improve consumer understanding, and foster fair competition amongst licensees of the commission.

The agency said full disclosure of all tariff components and conditions is mandatory, asking telcos to ensure that all marketing and promotional materials are clear and comprehensible.

The NCC said operators should prioritise consumer education and transparency in all communications to ensure subscribers can make informed choices.

“Develop and submit detailed migration plans to transition subscribers smoothly to new tariff plans, without loss of service quality or benefits,” the regulator said.

“All promotional elements must receive prior approval from the Commission and should be offered as standalone products with clear terms and validity periods.

“Submit comprehensive periodical reports detailing all active tariff plans, bundles, promotions, and Quality oS metrics.

“The guidance shall take effect on July 29 and will remain valid and binding on licensees until further reviewed by the commission.”

WHAT THE NCC SAYS ABOUT 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”.

The NCC said operators can maintain existing bonus-led tariff plans till December 3, within which period they are expected to educate and migrate all subscribers to the simplified tariff plans.

“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, GB/MB of data and number of SMS.

“Operators must fully disclose the above in their advertising materials.”

CONSENT FOR ADD-ONS FROM TARIFF PLANS

The telecommunications regulator also said add-on subscriptions must be optional for 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 said the number of tariffs each mobile network operator can offer is 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.

“Subscribers must be able to check (via USSD string, SMS) the number of Add-ons purchased.”

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”.