MTN Nigeria, Airtel Announce New Rates for Internet Data Plans
Two of Nigeria’s biggest companies, MTN and Airtel, have announced increases in data plan prices.
Telecommunication Customers started noticing the changes from around September 28 2022 and raised concern. There are worries that the new rates could have a negative effect on Nigerians struggling with a high cost of living.
Nigerian telecommunication has announced increases in prices for their internet data services by about 10 per cent. The increase was announced by MTN (@MTN180) and Airtel(@AirtelNigeria) on their verified Twitter pages.
Over the years, Nigerians have enjoyed one of the cheapest data rates in Africa, and this has helped boost active internet subscriptions to more than 152 million.
Gentechnews reports that the upward revision of data plans would now jeopardize Nigeria’s National Broadband Plan 2020-2025, in which the Federal Government intends to offer cheaper internet services in the country.
Recall, Association of Licensed Telecommunication Operators of Nigeria, (ALTON) hinted on some of the challenges and why the data price may be increase to include rising inflation and the naira spiralling downwards versus the dollar on the black market have made 2022 a difficult year for telecommunication companies; the cost of diesel and difficulties obtaining dollars for its services. Indeed, the association, in a letter to the Nigerian Communications Commission, (NCC) proposed a 40 per cent increase due to a 40 percent increase in the cost of doing business. The letter read: “Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”
Earlier in its response to ALTON letter, the Nigerian Communications Commission (NCC) stated that it has rejected the request by telecom operators for an upward review of tariff, saying that any such decision must be fair to the subscribers and engender healthy competition among services providers.
In the earlier statement issued by NCC, the regulator also said there is no cause for alarm as it did not approve any increase, adding that it remained committed to international best practices and established procedures in its regulatory activities in the country.
During the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja, the Minister of Communications and Digital Economy, Isa Pantami, said that with the increase in operating costs due to inflation and rising diesel, among others, there were more than 15 attempts to increase the price of telecommunication services within three years, which he kicked against.
The minister also stated, that “In spite of the contributions and achievements of the sector, we have been recording some challenges coming up from time to time that if care is not taken these challenges could be a barrier to the development of this sector in the next few years to come. One of them is the issue of excessive taxation and sometimes, multiple taxations in the sector.”