Data Floor Price: Telecom Regulators Must be Decisive
By Chukwuemeka Fred Agbata Jnr
Telecom regulators must be decisive on the issue regarding the price of data that was recently suspended, following several agitations.
There were lots of buzz and explosions on social media concerning the data floor price which was increased by telecom regulators.
By my reckoning, the price of data was put on hold as a result of several hits by Nigerians, as well as several consultations with industry stakeholders who were also against it.
We were told it had been suspended and this just means that the matter could be revisited at any time.
It is imperative to take into cognizance actions that would be tantamount to policy somersault and undue uncertainties within the system. If the price of data remains uncertain, the adverse effects could be enormous and that we must avoid. For some players or even prospective investors, it could be a determining factor.
In November 2016, it was reported in various media that the NCC’s the decision to rescind its earlier directive to telecom operators to commence charging the new floor price rate for data from December 1, was to allow for further consultation with industry interest groups.
The report reads: “Following concerns that visited the directive to introduce price floor for the data segment of the telecommunications sector beginning from December 1, 2016, the Nigerian Communications Commission (NCC) has suspended any further action in that direction.
“The decision to suspend this directive was taken after due consultation with industry stakeholders and the general complaints by consumers across the country.”
The report is in line with my arguments because of it all centers on suspension. We must quickly take a stand on this matter, so as to ease tensions, boost confidence and eventually pave the way for players in the industry.
Frankly, industry stakeholders are not pleased with the current situation that has failed to be definite and precise.
“NCC needs to revisit the data floor price determination to save and encourage small operators in the technology sector, says Engineer Gbenga Adebayor, Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON).
Interestingly, it would be to our benefit, if we endeavour to avoid a harsh situation whereby CDMA operators would crumble because of a price war.
Although, the ALTON engineer argues that data floor price determination is meant for small operators not for big players who will still survive with the present situation.
In line with my view and positions, he adds that If data price is determined, it will encourage small players in the sector.
This is a critical issue, apparently beyond what we think it is. We have to weigh all odds and evens, look at it beyond public sentiment and emotions around it and revisit the issue for the growth of the industry.
Another player in the sector, Adebayo, Olusola Teniola, President, Association of Telecommunications Companies of Nigeria (ATCON), also concurs to my argument. He opines that the industry regulator needs to revisit the data price floor to determine the appropriate data pricing to ensure that investors have certainty in government policies for them to bring capital that will be used for infrastructure deployment required for broadband.
Should the Government Even Determine Data Price for Telcos?
On the second thought, am even wondering if it falls under the auspices of the Nigerian government to meddle in affairs that concerns pricing of data. Even if the government should do that, it should be to the benefits of the masses, not the other way round.
The essence of privatization is to ensure that different players come into the sector. And the juicy part of this is that competition would be enhanced, operators would be battling with customer acquisition applying different strategies.
This is not to digress, our indigenous telecom operator, Glo Nigeria must be commended. They are making data quite affordable to Nigerians. Most people that I know are now using Glo lines. Am sure when next NCC releases the statistics, Glo must have had almost double subscribers in its base. This is what privatization is all about.
I keep wondering, why our government would want to fix price for private companies against the interest of its citizens.
The truth of the matter is government, or the regulator should not meddle with private companies’ pricing, except where such companies operate a price regime that is disadvantageous to our teeming population. This is where we need the government to fight for her citizens not compounding the issue.
Conclusion
While trying to be decide on the price of data, we should bear in mind present harsh condition of the country at the moment. My advice is that we must decide quickly and at the same time be considerate.
In this sector, we have a goal which we should all work together to achieve in 2018. This issue is like an infection that can quickly affect other segments of business in the tech ecosystem. And we must act fast.
What is our goal? It’s appalling that Africa’s most populous nation is still battling with 30 percent broadband. That is our goal by 2018, and we just have one year to achieve that.
That been said, it is important that the industry sees government policies as one that creates an enabling environment for businesses to thrive so that investors can bring funds to invest in the development of the sector.
However, I plead that the Nigerian Senate and the House of Representatives to always ensure that the government is refrained from enacting dastardly policies against the people.
CFA presents Tech Trends on Channels Television and Tech on Wheels with CFA radio show airing on Love FM Abuja, PH, Umuahia & ABS Awka. He blogs on www.techsmart.ng
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