Nigerian Telcos Ordered to Clarify Tariff Information by NCC

The Nigerian Communications Commission (NCC) has issued a new directive to telecommunications operators, mandating them to simplify and clarify their tariff plans, bundles, and promotional activities.

The directive, titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” aims to provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service (SMS), and data services to subscribers.

Issued on July 29, 2024, the directive requires Mobile Network Operators (MNOs) to publish a comprehensive table outlining the features of their tariff plans and bundle offers.

This table must include all necessary information for subscribers to make informed decisions, such as details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.

The guideline results from consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.

The objectives are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements, protect consumers’ interests by providing clear and understandable tariff information, and promote fair competition among licensees by standardizing tariff structures.

Service providers must display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on or off-network and international calls, expected data speeds, and fair usage policies.

The directive allows operators to maintain existing bonus-led tariff plans until December 31, 2024, during which time they are expected to educate and migrate all subscribers to the simplified tariff plans.

Operators must communicate tariffs to subscribers in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).

Also, they must offer stand-alone data bundles at fair prices to avoid tying consumers with products they do not need.

Bonuses on promotions must be stated in actual value, access fees and asymmetric fee structures must be eliminated, among other conditions.

The NCC added that while complying with these guidelines, operators must also meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.