Subscribers Protest as MTN Implements 50% Price Adjustment on Calls, SMS, Data
- MTN Nigeria has begun implementing a 50% tariff increase approved by the NCC in January, sparking protests from telecom users
- Leaders of subscriber associations criticized the move, saying it was done without proper consultation
- They argued that the hike violated an earlier agreement between telecom operators, the NCC, and the NLC
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Telecom users have protested as MTN Nigeria started implementing a 50% increase in service charges, which was approved by the Nigerian Communications Commission (NCC) in January.
The NCC gave the approval on January 20, marking the first major price change in over a decade.
Source: Getty Images
The decision came after long discussions between the regulator and telecom companies, who argued that the current prices were no longer sustainable due to rising inflation caused by fuel subsidy removal and Naira devaluation.
The NCC, in a statement about the new tariff, said the decision is based on its authority under Section 108 of the Nigerian Communications Act, 2003.
As a result, MTN Nigeria increased the cost of its internet plans, SMS and data.
Outrage after MTN's tariff hike
The leaders of two telecom subscriber groups have criticized how the new tariff increase was implemented.
Chief Deolu Ogunbanjo, President of the National Association of Telecom Subscribers (NATCOMS), and Sina Bilesanmi, President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria), expressed their concerns.
Ogunbanjo stated that introducing the price hike at this time goes against an earlier agreement between key stakeholders, including the Nigerian Labour Congress (NLC), the NCC, and NATCOMS.
He explained that the NLC had called off its planned protest based on the understanding that telecom operators, the NCC, and Labour would first agree on the percentage increase before implementing any changes.
Ogunbanjo told The Nation in a telephone conversation:
“The NCC told MNOs to wait till the end of this month for negotiations to be concluded on the percentage of the increase. That was the agreement with Labour.”
Bilesanmi was more concerned about how the price increase was introduced. He said telecom companies should have informed their customers in advance so they could be prepared.
He said:
“As a mark of respect for their customers, they ought to have sent an SMS to inform their customers. I don’t think it will cost them anything to do that. For instance, when the network of one of them went haywires last week, the operator sent an SMS to its customers apologizing for the glitches."
He also pointed out that simply posting the announcement on social media was not enough, as such an important change directly impacts people's finances.
A report states that SWIFT Networks, an internet service provider (ISP), has also raised its internet prices by 50% across all plans.
Meanwhile, Airtel and Globacom have not yet increased their prices. However, a source at Airtel revealed that the company has introduced a flat rate of 25 kobo per second for all voice calls.
Both Airtel, Globacom, and other telecom operators are expected to adjust their tariffs later this month.
See some of the reactions generated on social media:
@samk15308 said:
"Mtn please reduce your 15gb for 2k we can’t afford that 6k please."
@DjLucianovibe said:
"Mtn doesn’t know what they are doing, u move 2k data 15gb to 6k then now you’ve removed it totally and now you made the 2k data for 7gb for 3k. Who’s ur boss exactly coz this looks like what a HND graduate is doing."
@On_yinyee said:
"Tell me why mtn increased the 15Gb weekly sub for 2k to now 3k for 7Gb? What sort of w!ckedness is this. Imagine wasting 3k for just 7Gb?? Mtn you people must crumble!"
@wlliams_ said:
"Nigerians: ahhh 6k is to much for 15gb. MTN: oya take 7gb for for 3k. These people think we don't understand math or what?"
@juliusluv said:
"So MTN thought are doing us good by giving us 7gb for 3k when they already gave us 15gb for 6k, do 7gb twice in one week, that’s 14gb at same 6k… for their mind the 7gb for 3k was a good deal 😁😁😁, chai this country eh."
@androeljnr said:
"All these MTN data increment is yet to get to me until my current 15gb data sub expires in next 3 days."
MTN promises better services
Meanwhile, Legit.ng had reported that Karl Toriola, MTN Nigeria's CEO, said the adjustment would address rising operational costs and ensure critical investments in infrastructure in the telecom industry.
He noted that this tariff adjustment is an important step towards addressing economic pressures on the industry.
The telecommunications giant CEO assured subscribers that the tariff adjustment would improve services.
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Source: Legit.ng
