NCC Overhauls The Pricing Framework For Voice Calls, SMS, And Data

By George OPARA

The Nigerian Communications Commission is adjusting the pricing framework for voice calls, SMS, and data to balance the severe operational costs of network operators with consumer protection.

Spear News Nigeria gathered that the overhaul allows for rate increases while enforcing transparent, user-friendly billing and better service quality, in collaboration with KPMG, marking the first major reassessment of the sector’s tariff framework in almost a decade.

The review was officially launched on Tuesday in Lagos during a Mobile Termination Rate stakeholder forum attended by regulators, telecom operators, and other industry participants.

Mobile Termination Rates are the regulated fees telecom operators pay one another to complete calls across different networks.

The rates play a significant role in shaping competition, investment decisions, and retail pricing within the telecommunications industry.

Also, NCC said the existing framework, which was established in 2018 and adjusted in 2022, no longer reflects current market realities due to significant changes in technology, business models, and economic conditions.

The commission noted that the rollout of 5G technology, the rapid growth of data-driven services, and the emergence of mobile virtual network operators have transformed the telecom landscape.

It also highlighted the impact of inflation and currency depreciation, which have increased operational costs for service providers.

At the forum, the Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the exercise extends beyond a routine tariff review and is aimed at ensuring regulatory frameworks remain aligned with industry developments.

He stated that the telecommunications market has undergone substantial changes since the last determination, both in terms of technology deployment and market structure.

“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it”.

He added that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain cost-reflective, fair, and non-discriminatory.

KPMG, which is leading the consultancy aspect of the study, said the review would combine data analysis, stakeholder engagement, and international benchmarking to develop recommendations for a revised pricing framework.

KPMG Partner and Head of Tax, Wole Obayomi, said the exercise is intended to identify shortcomings in the current regime and determine whether a structured review cycle should be introduced.

“It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls,” Obayomi said.

As part of the process, the NCC and KPMG will assess pricing practices across wholesale and retail segments, evaluate emerging services, and determine whether they are adequately covered under existing regulations.

The review will also examine the sustainability of current tariff structures, focusing on investment capacity, service quality, and consumer affordability.

Telecom operators will be required to provide detailed financial and operational data, including information on revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends over several years.

According to KPMG, the data will provide deeper insights into industry performance and the long-term effects of existing pricing regulations.

The engagement process will include technical consultations with mobile network operators, mobile virtual network operators, international carriers, clearing houses and interconnect exchange providers.

In addition, the NCC and KPMG will benchmark Nigeria’s telecom pricing framework against those of peer markets such as South Africa and Kenya, as well as emerging economies including Indonesia and Malaysia, to identify global best practices and inform regulatory reforms.