Tariff hike: FCCPC charges telcos to improve service quality

The Federal Competition and Consumer Protection Commission (FCCPC) has endorsed the Nigerian Communications Commission’s (NCC) decision to approve a 50 per cent adjustment in telecommunications tariffs, provided that the increase translates into measurable improvements in service delivery.

In a statement issued on Wednesday by the Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC acknowledged the economic pressures faced by telecom operators, including rising operational costs, which necessitated calls for higher tariffs.

However, the commission emphasised that consumer interests remain paramount and must not be compromised.

“The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times. We commend the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality while implementing measures to mitigate the impact on consumers,” it said.

The NCC on Monday approved a maximum 50 per cent increase in telecom tariffs, following requests by network operators to adjust rates due to rising costs. The approved increase, significantly lower than the over 100 per cent initially proposed by some operators, reflects the regulator’s effort to balance industry sustainability with consumer protection amidst ongoing reforms.

The FCCPC said the NCC’s decision to rationalise the tariff adjustment, opting for a 50 per cent increase instead of the over 100 per cent initially proposed by operators, reflects a deliberate effort to balance industry sustainability with consumer protection.

The FCCPC praised the NCC for linking the tariff hike to tangible service quality improvements and adopting measures to mitigate its impact on consumers.

“Consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented. Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns. It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers,” it said.

To enhance transparency, the NCC has mandated operators to disclose all critical details of their tariffs upfront, including costs, validity periods, and inclusions.

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Operators are now required to implement a mandatory disclosure table, ensuring that consumers can make informed decisions without hidden charges or unexpected costs.

The FCCPC stressed that the rationale for the tariff adjustment must be reflected in visible improvements in network reliability, speed, accessibility, and customer service. Operators are expected to allocate increased revenues towards infrastructure development and service delivery enhancements.

Clear monitoring mechanisms will also be established to ensure that the additional revenue is utilised responsibly.

“It is non-negotiable that telecom operators must prioritise visible and measurable improvements,” the statement added.

The FCCPC reaffirmed its commitment to safeguarding consumers against exploitative practices during this transition.

The recently signed Memorandum of Understanding (MoU) between the FCCPC and NCC underscores a shared commitment to robust consumer protection and fair competition in the telecommunications sector, it said.

READ ALSO: FCCPC, NCC sign MoU to streamline telecoms regulation, strengthen consumer protection

The partnership aims to ensure that the tariff adjustment does not become an avenue for unfair practices but rather an opportunity to foster accountability and transparency.

“The MoU between the FCCPC and NCC provides a unified framework to oversee the implementation of this tariff adjustment in a manner that meets the needs of consumers,” the FCCPC said.

The commission urged telecom operators to communicate clearly, the rationale for the tariff adjustments to consumers, detailing the benefits and how they align with efforts to improve service delivery and infrastructure.

Consumers are encouraged to report any unfair practices or concerns through the FCCPC’s official channels for prompt resolution.