New Cost of Call, Data, SMS on MTN, Airtel, 9mobile Emerges As NCC Approves Tariff Hike
- The NCC has approved the request of telecommunication companies to increase tariffs, the first adjustment since 2013
- Following the approval, Nigerians can now expect MTN, Glo, and Airtel to adjust their call, data, and SMS rates
- NCC said the decision to agree to the long-awaited adjustments is necessary to bridge the gap between operational expenses
The Nigerian Communications Commission (NCC) has approved a 50% hike in phone calls, data, and SMS services, effective immediately.
Following approval, consumers can expect changes in how much to pay for calls and data.
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How much Nigerians will pay for calls, data
With the new tariff increase, MTN, GLO, Airtel, and 9mobile are now expected to charge a minimum of N9.6 per minute for calls, up from N6.40, while the maximum permissible call charge will be capped at N50.
Additionally, SMS costs will increase to N6 from N4, and the price of 1GB of data will rise to N525 from N350.
On average, call charges will settle at approximately N16.5 per minute, up from N11.
NCC defends its decision to approve tariff hike
In a statement released on Monday, January 20, announcing the increase, the NCC clarified that the approved adjustments, capped at 0% of current rates, are lower than the 100% increase requested by telecom operators.
The commission noted that the 50% approval seeks to balance the burden on customers with the rising operation costs that telecom operators face.
Why it takes NCC over 10 years to approve tariff hike
The NCC justified the long-awaited adjustments necessary to bridge the gap between operational expenses and current tariffs, citing the 2013 NCC Cost Study and recently issued 2024 guidance on tariff simplification.
The commission assured that these measures would empower operators to invest in infrastructure and innovation, promising enhanced network quality, improved customer service, and broader coverage.
NATCOMS ready for court case
Consumer advocacy groups, including the National Association of Telecoms Subscribers (NATCOMS), have criticised the tariff hikes.
NATCOMS said it would challenge the Federal Government’s decision to allow telecom operators to increase tariffs by 50% in a court of law.
Vanguard reports that Deolu Ogunbanjo stated that the Nigerian Communications Commission (NCC) did not involve the group in the arrangement.
Ogunbanjo argued that while the increase in tariffs seems inevitable, a 5% to 10% adjustment would be more appropriate, considering the rising cost of living.
His words:
“This will affect everyone, from the biggest industry to the smallest company, including Point of Service (POS) operators. It will increase operational costs. We can only agreed on a 5% or 10% tariff increase."
Telcos revenue hit N5trn in revenue
Legit.ng earlier reported that telecommunication companies in Nigeria made N5.3 trillion in revenue from services like voice and data in 2023.
This was disclosed by the Nigerian Communications Commission (NCC) in its 2023 year-end report titled “2023 Subscriber/Network Performance Report.
The report said the revenue figures are due to rising telecom subscriptions, which reached 224 million in 2023, up from 222 million the year before.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
