Promoting Data Transparency, Call Rates in Nigeria

In Nigeria, where the population is growing rapidly and the telecommunications industry is booming, it is crucial that service providers guarantee transparency in call and data rates. ROYAL IBEH examines the latest guidelines to simplify tariff plans, packages and promotional activities.

There has been significant expansion in the Nigerian telecommunications industry over the past 20 years. For example, the Nigerian Communications Commission (NCC) revealed that in the first quarter of 2024, the country had about 219 million active mobile subscriptions.

The market is dominated by the largest telecom operators, including MTN, Airtel, Glo and 9mobile, offering a variety of data and call packages that are designed to meet the diverse needs of customers.

Despite this growth, the sector faces challenges regarding the transparency of data and call tariffs. Consumers often express concerns about unclear prices, hidden fees and quality of service. These issues have led to a lack of trust between consumers and service providers, which ultimately hinders the growth of the sector.

Challenges

For example, consumers have raised the issue of the complex tariff structure (many telecom operators offer a wide range of plans with different costs, data limits and validity periods), which makes it difficult for them to compare plans and choose the most suitable one.

Some users have reported unexpected deductions from their credit for services they did not explicitly request, while some have complained about poor quality of service (QoS), including poor network coverage and slow internet speeds.

Despite this, some consumers complained about a lack of awareness as they were not fully aware of their rights and the regulatory framework governing the telecommunications sector.

We unveil new guidelines

To address these challenges, the NCC recently issued guidelines to telecom operators, requiring them to provide subscribers with adequate information on the charges levied on each call and data traffic consumed.

These Guidelines are consistent with the regulatory powers of the Commission under Sections 3, 108 and 109 of the Nigerian Communications Act 2003 (the Act) and relevant subsidiary legislation empowering the Commission in this regard. They are also consistent with the Commission’s mandate to regulate communications services and provide consumer protection in this sector.

The Guidelines entitled: “Tariff Simplification Guidelines” aim to increase transparency, improve consumer understanding and promote fair competition between licensees.

According to the Commission, the Guidelines apply to all Commission licensees and their main objectives are to simplify tariff plans and packages, to ensure the transparency and fairness of promotional elements of tariff plans, to protect consumer interests by providing clear and understandable tariff information and to promote fair competition between licensees by standardising tariff structures.

Relevant tariff information

In the guidelines, which came into force on 29 July 2024, the Commission stressed that full disclosure of all tariff components and conditions is mandatory, while also calling on operators to ensure that all marketing and promotional materials are clear and understandable.

For example, Section 4.4 of the Guidelines states that each operator is required to publish on its website a table presenting the characteristics of each tariff plan and package offered. “The table must include all the information necessary to enable the subscriber to compare the tariff plan offered with others and thus make an informed choice.

“All advertising materials must fully disclose all tariffs and other components applicable to the plan in accordance with the provisions of the Licence Conditions, the Consumer Code of Conduct Regulations and the Promotional Advertising Guidelines.

“Other tariff-related communications should be provided in an intelligible language and user-friendly format, in accordance with the provisions of the Commission Regulation on the Code of Consumer Conduct and other relevant regulatory instruments,” it added.

In the case of the USSD platform, the Commission stated that whenever a subscriber requests the status of his/her account using the code *310#, the response must include information such as the plan name and validity period (if applicable); the per second (and per minute) on-net/off-net rate; the per megabyte/kilobyte/gigabyte rate; and the on-net/off-net SMS rate.

In Chapter 4.5, the Commission said operators must offer standalone data packages at fair prices to avoid locking consumers into products they do not need, adding that promotional bonuses must be given their real value, and access fees and asymmetric pricing structures must be eliminated.

The Commission said that for all tariff plans, both the main account and the bonus account must be depleted at a rate that is within the minimum and maximum prices set; packages with shorter validity periods should be depleted first, and the options for subscribers who exhaust their package limit within the set validity period should include purchasing a top-up package, purchasing a new package, and switching to the default rate of their plan.

In relation to the number of tariff plans and packages that an operator can offer, Section 4.3 states that the number of tariff plans offered by an operator is limited to seven, while the number of packages offered by an operator is limited to 100. “There is no limit to the number of add-ons that a subscriber can opt for. However, each operator must have a mechanism that informs subscribers about the number of add-ons they have at the time of purchasing another add-on. Subscribers must be able to check (via USSD, SMS) the number of add-ons purchased,” it added.

Consumer Education

The Commission said operators must conduct consumer education campaigns to inform subscribers about tariff simplification, their rights and how to make informed choices about tariff plans. It also added that educational materials should be made available in multiple formats and languages ​​to ensure wide accessibility.

“Operators must notify subscribers of any changes to their tariff plans, including migration to new plans, at least 30 days in advance. Notifications must be clear, include the reasons for the changes, the benefits of the new plans and any actions required from subscribers,” the Commission confirmed.

To ensure data transparency, the Commission, in Section 6.2 of the Guidelines, stated that operators are required to submit quarterly reports to the Commission detailing the number of active tariff plans, packages and promotions, and the reports must include data on subscriber interest, usage patterns and opinions.

On QoS, the Commission (in section 6.3) has stated that compliance with the standards and key performance indicators (KPIs) set out in the QoS regulations is mandatory, stating that any deterioration in quality of service due to tariff changes or promotions must be addressed immediately. Operators must report QoS metrics as part of their quarterly filings, it added.

Deadlines and deadlines

The Commission said operators must adapt their offers to comply with these guidelines within 90 days of their date of issue, adding that transitional plans for applicable tariffs must be submitted no later than August 12, 2024.

On the approval deadlines, the Commission said it would review and respond to applications within ten working days. Applications for tariff approval and modification must include comprehensive information forms detailing all aspects of the tariff, it added.

Sanction

Section 6.5 deals with compliance and enforcement, although the Commission has stated that it will conduct periodic audits and inspections to ensure compliance with these guidelines. “Failure to comply will result in penalties, including fines, suspension of tariff approvals or other regulatory actions as specified in the Act, related regulatory instruments and applicable provisions on the enforcement process,” it said.

The Commission, however, called on all mobile network operators (MNOs) to apply the rules in their entirety to all retail products offered to individual subscribers (both prepaid and postpaid). Other categories of licensees, however, are required to apply only the disclosure requirements and the transparency template, as well as the conditions for approving tariffs, it added.