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”.

Mister Mobility

I started blogging about mobile in 2004 as a fun way to share my passion for gadgets and mobile services. My other interests include digital media, speaking and teaching, photography, travelling, and dancing.

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

  • November 11, 2015 at 5:42 am
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    May the NCC not find a reason to restore the data floor price ever again.

    Amin

  • November 11, 2015 at 8:53 am
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    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.

  • November 11, 2015 at 10:26 am
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    Amen oooo
    Finally,I will repent and use cheat no more.
    Sorted has already open the floor for ridiculous data pricing with its 100 for 1GB

  • November 11, 2015 at 1:48 pm
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    What of the airtel weekends 1gb for 100?

    Guess you didnt know we are getting close

  • November 11, 2015 at 2:02 pm
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    This has been long overdue. Those who said they haven’t seen any changes yet in the new government. I hope theythey are reading this?

  • Pingback:NCC to induce cheaper Internet data plans in Nigeria

  • November 12, 2015 at 7:06 am
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    glo is already reacting to the development with the recent increase data to 1.2Gb per #1000,hope to see more positive reactions from other networks..

  • November 12, 2015 at 7:07 am
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    glo is already reacting to the development with the recent increase in data to 1.2Gb per #1000,hope to see more positive reactions from other networks..

  • November 15, 2015 at 5:41 pm
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    Lol, let NTEL come with a better data offer I may just become one of the first people to own their sim.

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