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Wednesday, 30 November 2016

DATA PRICE : why NCC asked telecoms to increase DATA PRICE

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DATA PRICE increased by NCC

I wonder why DATA PRICE will be increased in Nigeria , Sha let's see why !.

The body in charge of communication in Nigeria which is known with the short form  of NCC
have signed in  a new deal titled as "floor plan " for DATA PRICE and DATA SERVICES ,
"in order to adjust market distortions ,worthless price wars and economic erosion that could endanger the going corncern of service providers ", this is according to the internal working document .

In a letter which was sent to service operators , the NCC have instructed that DATA PRICE should be at the rate of 0.90k/MB  which will be taking effect on DECEMBER 1,2016  
 “pending the finalization of the study on the determination of cost-based pricing for retail broadband and data services in Nigeria”.

according to the above statement , the NCC chairman instructed all services providers that their should be an increament in DATA PRICE, on which network providers have been charging below the floor rate .

In exception small and upcoming network providers are still allowed to be charging below the floor rate
which is 0.90k/MB like Smile,Spectranet,Ntel
because this upcoming network providers as defined by NCC have the smallest percent in market share(7.5%) and new entrant as one that has not operated for about 3 years .
NCC claimed that without setting a price floor , the big operators can engage in big pricing in order to drive down other operators , which will make the industry to move towards monopoly.
This means one day a particular company will dominate  the market due to their very cheap and attractive deals . 


DATA PRICE BEFORE NOW:

BIG SERVICE PROVIDERS
MTN: 45kobo/MB
GLO: 21 kobo/MB
ETISALAT: 94 kobo/MB
AIRTEL: 52kobo/MB

SMALL SERVICE PROVIDERS
Smile 84 kobo
Spectranet 58 kobo
Natcom 72 kobo

As the NCC staff said that the CMDA operators such as , starcomms , multilinks were pushed out of the markets by the 4 big operators we have.
The official also said :
“At the rate they are crashing data tariffs, there is every chance that they will soon kill all the small operators and new entrants. Part of the functions and duties of NCC is to check monopolistic and oligopolistic behaviours in the telecom market,”

This really the fact ,not many know about smile, spectranect telecom company at least they deserve a chance to make an impact. 
but this DATA PRICE is really going to affect me *wink*


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