Nigerian Communications Commission (NCC) approved a new “floor plan”, or minimum pricing, for data services by mobile operators “to address market distortions, unhealthy price wars and value erosion that could threaten the going concern of service providers”, this is according to an internal working document. In a letter to the big operators, the NCC had directed that the floor plan for data should be 0.90k/MB effective December 1, 2016 “pending the finalisation of the study on the determination of cost-based pricing for retail broadband and data services in Nigeria”. As virtually all the big operators were already charging below the new floor rate, the directive meant an automatic increase in charges for data services. However, small operators and new entrants in the data market, such as Spectranet, Ntel and Smile, are still allowed to charge below 0.90k/MB. NCC defines “small operator” as one that has less than 7.5% market share and “new entrant” as one that has operated fo...
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