NCC limits tariff plans to seven to improve transparency

The NCC has approved new tariff guidelines aimed at increasing transparency, enhancing consumer comprehension, and promoting fair competition among licensed operators.

Furthermore, it has capped the number of bundles that each operator can offer to 100, emphasizing that no subscriber can be enrolled in more than one tariff plan at any given time.

As defined by the NCC, a tariff plan consists of a structured pricing system that outlines the charges and conditions for telecommunications services provided to subscribers.

This information was shared today in a document released on the NCC’s website and signed by the Executive Vice-Chairman, Aminu Maida.

The document states, “Each operator is limited to seven tariff plans and 100 bundles. While there are no restrictions on the number of add-ons a subscriber may choose, every operator must implement a system that informs subscribers of the total add-ons they have when purchasing an additional one. Subscribers should be able to check the number of add-ons via USSD string or SMS.”

Investigations revealed that the two leading telecommunications companies currently have more tariff plans than permitted under the directive.

MTN offers eight tariff plans, Etisalat has seven, Airtel features 10 plans, and Glo provides four tariff plans to its customers.

In the document titled “Guidance for the Simplification of Tariffs,” the NCC asserted that full disclosure of all tariff components and terms is essential, requiring telecommunications companies to ensure that their marketing and promotional materials are clear and easily understood.

The NCC emphasized that operators should focus on educating consumers and being transparent in all communications to help subscribers make informed choices.

It noted, “Operators are to develop and present detailed migration plans to transition subscribers smoothly to new tariff plans without compromising service quality or benefits.”

“All promotional components must receive prior approval from the Commission and should be treated as standalone products, accompanied by clear terms and validity periods.”

“Operators must submit comprehensive periodic reports detailing all active tariff plans, bundles, promotions, and Quality of Service (QoS) metrics.”

These guidelines became effective on July 29 and will remain in force for the licensees until further notice by the commission.

The commission also clarified that all promotional elements should be removed from tariff plans and provided as standalone promotions, “subject to the Commission’s prior approval, time limits, QoS/capacity requirements, and adherence to full disclosure standards.”

The NCC stated that operators may retain their current bonus-led tariff plans until December 3, during which time they are expected to educate and transition all subscribers to the simplified tariff plans.

It specified, “Operators may maintain only one bonus-led plan for new subscriber acquisition, but any new subscriber can only stay on such a plan for six months before being moved to a standard tariff plan of their choice.”

“If a subscriber does not migrate after being prompted as per the applicable guidelines, they will revert to the default tariff plan.”

The conditions for promotional activities under the new acquisition plans stipulate that bonuses must meet the commission’s price floor and ceiling.

Additionally, actual depletion rates for bonuses must not exceed the price or fall below the price floor for voice services. The bonus allowances (voice/data/SMS) must be expressed in naira and specified in relevant units (e.g., minutes for voice, GB/MB for data, and quantity of SMS).

“Operators must ensure full disclosure in their advertising materials,” the NCC stated.

The telecommunications regulator underscored that add-on subscriptions should be optional for subscribers, saying, “Subscribers should be able to select any add-ons while remaining on their current tariff plan and/or bundle.”

“A free add-on will be considered a promotional offering and must receive prior approval from the Commission in accordance with the 2023 guidelines for promotional advertisements.”

Moreover, service providers must obtain evidence of informed consent from subscribers for add-ons, per the Commission’s existing regulatory frameworks.

The NCC indicated that failure to comply with these guidelines will incur penalties, requiring operators to align their offerings within 90 days of the directive’s issuance.

It added, “Transition plans for existing tariffs must be submitted by August 12, 2024. The Commission will review and respond within 10 working days.”

Applications for tariff approval and modifications must include comprehensive disclosure forms detailing all tariff aspects.

Non-compliance may lead to penalties such as fines, tariff approval suspensions, or other regulatory actions as specified by the Act and ongoing Enforcement Process Regulation.

The NCC also instructed operators to notify subscribers of any changes to their tariff plans, including migrations to new plans, at least 30 days in advance, ensuring “notifications are clear, with stated reasons and benefits.”

Meanwhile, operators have refuted claims of any approved tariff increases by the commission. A text from the Chairman of the Association of Licensed Telecom Operators in Nigeria, Gbenga Adebayo, noted simply, “Telcos have not been granted any approval for tariff review.”