The Nigerian Communications Commission (NCC) has introduced new tariff guidelines for telecom operators to enhance transparency, improve consumer understanding, and promote fair competition. The guidelines, signed by Aminu Maida, the executive vice-chairman of the NCC, were issued on July 29.
In a document titled “Guidance for the Simplification of Tariffs,” the NCC mandates full disclosure of all tariff components and conditions. It requires telecom operators to ensure that all marketing and promotional materials are clear and comprehensible. The goal is to enable subscribers to make informed choices about their services.
The NCC emphasized the importance of consumer education and transparency. “Operators should prioritize consumer education and transparency in all communications,” the regulator stated. Additionally, telecom operators are required to develop and submit detailed migration plans to transition subscribers smoothly to new tariff plans without compromising service quality or benefits.
All promotional elements must receive prior approval from the NCC and be offered as standalone products with clear terms and validity periods. Operators must also submit comprehensive periodical reports detailing all active tariff plans, bundles, promotions, and Quality of Service (QoS) metrics.
The new guidelines took effect on July 29 and will remain binding until further review by the commission.
Also, the NCC has set specific guidelines for bonus-led tariff plans. All promotional elements must be removed from tariff plans and offered as standalone promotions, subject to the commission’s approval and adherence to full disclosure requirements. Existing bonus-led tariff plans can be maintained until December 3. During this period, operators are expected to educate and migrate all subscribers to simplified tariff plans.
Operators are allowed to maintain only one bonus-led new subscriber acquisition plan, but a new subscriber can stay on this plan for a maximum of six months before being migrated to a standard tariff plan of their choice. If a subscriber fails to migrate after being prompted, they will be reverted to the default tariff plan.
The NCC’s conditions for promotional activities and new acquisition plans include compliance with the commission’s price floor and price cap, and full disclosure of bonus allowances in advertising materials.
Similarly, the NCC also addressed the issue of add-on subscriptions, stating that they must be optional for subscribers. Subscribers should be able to purchase any add-ons while remaining on their existing tariff plan and/or bundle. Free add-ons will be treated as promotional offerings and must be approved by the commission.
Telecom operators must have evidence of informed consent from subscribers to accept any add-on.
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Furthermore, the new guidelines limit the number of tariffs each mobile network operator can offer to seven, while the number of bundles is restricted to 100. However, there are no limitations on the number of add-ons a subscriber can opt into. Operators must provide a mechanism to inform subscribers of the number of add-ons they have when purchasing another add-on. Subscribers must also be able to check the number of add-ons purchased via USSD string or SMS.
The NCC has outlined penalties for noncompliance with the new guidelines. Operators must align their offerings within 90 days from the date of issuance. Transition plans for existing tariffs must be submitted by August 12, 2024, and the commission will review and respond to submissions within ten working days.
Tariff approval and modification applications must include comprehensive disclosure forms detailing all aspects of the tariff. Noncompliance will result in penalties, including fines, suspension of tariff approvals, or other regulatory actions as set out in the Act and related regulatory instruments.
Operators are also required to notify subscribers of any changes to their tariff plans, including migration to new plans, at least 30 days in advance. These notifications must be clear, with reasons and benefits stated.
However, the NCC’s new guidelines aim to create a more transparent and consumer-friendly telecommunications environment in Nigeria.