NCC Directs Telecom Operators to Simplify Tariff Plans for Clarity and Transparency

The Nigerian Communications Commission (NCC) has mandated telecommunications operators to simplify their tariff plans, bundles, and promotional activities to enhance clarity and transparency for subscribers. The directive, titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” was issued on July 29, 2024. This new regulation aims to provide subscribers with clear, easy-to-understand, and accurate information about the cost of voice, SMS, and data services.

The directive requires Mobile Network Operators (MNOs) to publish a comprehensive table outlining the features of their tariff plans and bundle offers. This table should include all necessary information to help subscribers make informed decisions, such as details on add-ons, prices, opt-in and opt-out processes, terms and conditions for renewal, and rollover policies.

The guidelines result from extensive consultations with industry stakeholders, including MNOs and Consumer Focus Groups, as well as data analysis on consumer preferences and expectations. The primary objectives are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness in promotional activities, protect consumer interests by providing clear tariff information, and promote fair competition among licensees by standardizing tariff structures.

Service providers are also required to display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on-network and off-network calls, international call rates, expected data speeds, and fair usage policies. Existing bonus-led tariff plans can be maintained until December 31, 2024, during which operators are expected to educate and migrate all subscribers to the simplified tariff plans.

Furthermore, the guidelines stipulate that MNOs must communicate tariffs in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan available via USSD. Operators must offer stand-alone data bundles at fair prices to avoid tying consumers to unnecessary products, clearly state bonuses in actual value, and eliminate access fees and asymmetric fee structures.

The NCC also emphasized that while adhering to these new guidelines, operators must continue to meet the Key Performance Indicators (KPIs) standards outlined in the Quality of Service (QoS) Regulations. This move by the NCC is designed to enhance consumer satisfaction and ensure a fair and transparent telecommunications market in Nigeria.