Business
Tariffs Reduction, Not Automatic – NCC
The Nigerian Communications Commission (NCC), says the reduction in the call tariffs in line with the reduced interconnection rates is not automatic.
The Director of Public Affairs, NCC, Mr Tony Ojobo, said this in an interview with newsmen, last Thursday.
Ojobo’s reaction was coming on the heels of the agitation by the telecoms consumers to reduce voice call tariffs.
“The reduction in interconnect rate does not necessarily mean an instant or automatic reduction in the voice rates.
“This will occur, but only after the service providers adjust their machines, conduct billing assessments, finished the pending interconnect settlements amongst themselves.
“Any reduction in their retail price (tariffs paid by customers) will occur after all these have been done,” he said.
According to him, the NCC is also observant and is monitoring all these processes carefully.
He said that the regulatory body was only setting interconnection rates, but was not setting prices that operators should charge for their services.
The NCC official said that the interconnection rate reduction was an incentive for call price reduction, hence operators were expected to reduce their voice call tariffs.
Ojobo said that the interconnection rates were to motivate telecom service providers to work on their prices to attract customers.
“Very soon, the benefits of the reduction in interconnect rates will translate to lower voice rates which will be enjoyed by all telecom consumers in Nigeria,” the NCC chief said.
He said that the Mobile Number Portability (MNP), which would take off later this month, was a regulatory intervention to boost price reduction in the industry.
“With the MNP, any operator that does not work on its pricing will lose customers.
“We don’t even need to preach to anyone about pricing, the market in itself is already defining what is going to happen.
“Customers will want to find out what the prices are for the various networks and anyone that gives them a better offer, that is the one they are going to take,” Ojobo said.F
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