What NCC’s withdrawal of data floor price means for Nigeria

Floor price is a lower limit that telecoms regulators use to keep anti-competitive pricing in check among operators, especially those with more muscles than others. A price floor is the lowest legal price that a service/product can be sold at. For example, with a data floor price in place, no operator can drop their data tariffs below that price.

Mobile Broadband data floor price

The Nigerian Communications Commission recently lifted the data floor price, giving operators liberty to drop their data tariffs as it suits them. This is the official statement from NCC:

The Commission, in a bid to ensure sustainability, growth and development of the data service market segment, approved the withdrawal of data floor price on October 13, 2015. However, the Commission will restore the floor price if any distortion is observed within the market segment.

With the withdrawal of data floor price, Nigeria is about to be ushered into a period of data bliss, and about time too. Note that Ntel, the reincarnated phoenix of NITEL/Mtel is launching into the market this month with a primary focus on data. Expectations for more affordable mobile broadband are in the air. Ntel will be in a position to push lower data tariffs. Expectedly, the existing competition will react and try to match those tariffs.

This can only be good news for Nigerian mobile data subscribers who have been clamouring for more affordable tariffs for years. May the NCC not find a reason to restore the data floor price ever again. Somebody give me an “Amen”.

10 thoughts on “What NCC’s withdrawal of data floor price means for Nigeria”

  1. N100 for 1GB isn’t realistic – which country in the world offers that? N1000 for 1GB or 1.5GB offered by all networks is somewhat reasonable, but the more people using data doesn’t mean a fall in costs but a rise in revenue for the network.

    But as we still have few cross network call tariffs, I’m not holding my breath for a fair shake on data tariffs.

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