InFocus: NCC’s reforms, transparency and consumer confidence in Nigeria’s telecoms ecosystem

*The Nigerian Communications Commission introduces far-reaching measures to address observed irregularities, ensure transparency, and make network operators accountable towards restoring consumer confidence in the country’s telecoms space

Gbenga Kayode | ConsumerConnect

In consonance with Dr. Aminu Maida-led Management’s avowed commitment to evolving proactive measures to restore consumer confidence while holding network operators accountable in the telecoms system, the Nigerian Communications Commission (NCC) has said it is leading industry reforms aimed at attaining regulatory excellence in the telecommunications sector of the economy.

The telecoms sector regulatory Commission has reportedly introduced a fresh set of measures to promote transparency and accountability in the telecommunications sector of the Nigerian economy.

ConsumerConnect reports since the assumption of office of Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, the Commission has continued to encourage the network operators to rather seek “innovative ways to sustain their businesses” while a lasting solution to their requests is found in the ecosystem.

Of NCC’s focus on innovation, Quality of Service and consumer experience Dr. Maida’s leadership vision for the telecoms sector regulatory Commission is apparently focused on advancing collaborations with other critical sectors of the economy to drive innovation, efficiency, Quality of Service (QoS) and consumers’ Quality of Experience (QoE) in the digital ecosystem.

With the new parameters for network operators in the Commission’s QoS Regulations 2024, the NCC recently disclosed its aims is to achieve a 50 percent QoS target by the end of 2024, besides other ambitious goals, including boosting Broadband deployment and penetration to 70 percent by 2025.

According to the regulator, the Quality of Service Regulations for telecoms companies was designed for immediate implementation.

The QoS Regulations 2024 specifically, set measurable parameters for the different network segments of the Telcos, covering 2G, 3G, and 4G networks respectively in Nigeria.

The regulations focus on stipulated parameters, including Drop Call Rates, Call Setup Success Rate, and Traffic Congestion, among others.

According to the telecoms industry regulator, Telcos’ failure to meet such specified parameters would attract a N5 million fine, as well as N500,000 daily penalty for each infraction in the ecosystem.

Close sources noted that the Commission is poised to protect telecoms consumers, having realised that services of major Mobile Network Operators (MNOs) have degenerated in recent times, just as several telecoms consumers continue to experience service disruptions on calls and data services in the country’s telecoms space.

It was also gathered that the NCC is focused on fostering a healthier, more trustworthy, and consumer-centric telecoms environment in Nigeria, going forward.

The NCC is fast demonstrating its commitment to implementing rigorous evaluations of the Quality of Service (QoS) in terms of service reliability, Quality of Experience (QoE) for consumer satisfaction, and regulatory compliance in the West African country’s telecoms ecosystem.

Significance of tariff simplification regime for MNOs

As earlier indicated, the Commission has introduced a tariff simplification method, which is aimed at addressing price uncertainty in the industry, among other things.

Hitherto, the network provider, under the auspices of the Association of Telecommunications Companies of Nigeria (ATCON) and Association of Licensed Telecoms Operators of Nigeria (ALTON), at several fora, had requested the approval of the NCC to jack up tariffs for telecoms consumers.

However, the Commission has continued to emphasise the importance of regulatory compliance, QoS, QoE, and consumer satisfaction over any tariff increments for subscribers.

New measures to address apparent irregularities in telecoms sector

As part of the regulatory reforms in the industry, the NCC is said to have resolved that all current “tariff” featuring bonuses or promotional elements should be classified strictly as “promotions”.

Subsequently, the details of such promotions should be submitted to the Consumer Affairs Bureau (CAB) and the Technical Standard and Network Integrity (TSNI) for Quality of Service (QoS) evaluation accordingly.

According to the Commission, all benefits or allowances either in Voice, Short Messaging Service (SMS) and Data, must be stated in a clear, uniform and user-friendly format, i.e., number of minutes/SMS, cost per minute/SMS, available and total data in MB/GB and validity periods.

The NCC will publish approved tariffs for telecoms products and services on its corporate Web site going forward, according to report.

Introducing limited tariff plans for network operators

As it is obtainable in other climes, and in connection with the NCC tariff simplification approach, the Commission has reportedly placed a limit on the number of tariff plans a telecoms operator can offer at any given point in time in the industry.

On the rationale for this step, officials of the Commission said such measures were set in place to restore consumer confidence in the system while holding the telecoms operators accountable.

In harmony with the objectives of the fresh measures, a senior official disclosed the operators had been mandated to adhere to the measures.

By the end of November 2024, consumers will be informed of the new tariff simplifications, said the close source.

Besides, the telecoms sector regulator is said to have established a Joint Industry Committee on Consumer Awareness on Smarter Data Management for a nationwide campaign in this regard.

Sources as well affirmed the campaign had been running since June 2024 via SMS blasts, social media posts, frontline staff sensitisation and radio jingles, and guest appearances on radio stations.

The fundamental objective of the joint committee is to enlighten telecoms consumers on how they can get the best value from their data while correcting negative perceptions about data depletion in the industry.

According to them, the expected outcome of the national awareness campaign is to empower telecoms consumers to have an improved understanding of data management and usage in the country.

Benefits of regulatory reforms to telecoms stakeholders

Against the backdrop of the ongoing regulatory reforms in the industry, the Nigerian telecommunications industry has been an all-important driving force in the country’s economic transformation.

The significant sector has contributing 14 percent to the Nigeria’s Gross Domestic Product (GDP) growth, job creation, and innovation across multiple sectors in the economy.

Therefore, by enhancing connectivity, the industry has enabled businesses, from agriculture to finance, to operate more efficiently, reach wider markets, and improve productivity.

The telecommunications industry has been a driving force in the country’s economic transformation, having contributed about 14 percent to GDP growth, job creation, and innovation across multiple sectors.

With improved connectivity, the industry has enabled businesses, from agriculture to finance, to operate more efficiently, reach wider markets, and improve productivity.

Subsequently, some industry stakeholders and watchers have expressed satisfaction with the Commission’s move on product and service tariff simplification in telecommunications, according to report.

Prior to the regulator’s new tariff simplification method, the network operators had diverse tariffs and bonuses for data and call services for consumers.

However, there are instances even when subscribers have details of the bonuses or tariffs before subscribing, telecoms consumers rarely understand how such offerings work in the ecosystem.

It was also gathered that network operators, in some cases, apply different tariffs to bonus accounts, resulting in different tariffs for the main account and bonus account of consumers.

Oftentimes, the information will not be communicated to telecoms consumers, the situation which may lead to uninformed decisions in the end.

Industry watchers thus, have suggested that in view of the Commission’s current moves to enhance connectivity to activate more promising businesses, especially SMEs from agriculture to finance, and others, major sectors of the economy can operate more efficiently, reach wider markets, and improve productivity for the good of Nigerian telecoms consumers.

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