How Telecom Subscribers are Challenging FG On 50 % Slash In Data Cost | READ DETAILS
chuks oti
Dec 16, 2020
Telecom subscribers in the country have challenged the claim by the federal government that the price of data had been reduced by more than 50 percent.
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Subscribers, who spoke with Daily Trust, insisted that they still buy 1GB of data for N1000.
The Federal Government had announced that the price of data has been reduced by more than 50 percent following a directive that the Nigerian Communications Commission (NCC) should put in place measures to that effect.
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A statement from the Minister of Communications and Digital Economy, Dr Isa Ibrahim Pantami, said the price of data of 1GB had been reduced from N1000 to N487, beginning from last November.
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Pantami said it was in line with the directive he gave to NCC to put measures in place to reduce the average cost of data in the country.
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The average cost of 1GB of data has been reduced from January 2020 cost of N1,000 to N487.18 in November 2020, he said.
"This was based on a report by the Nigerian Communications Commission (NCC) submitted to the Honourable Minister following the implementation of the directivesÔÇØ said the statement issued on his behalf by his Technical Assistant, Mr Femi Adeluyi.
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It said: "The Honourable Minister had inaugurated a committee that developed the Nigerian National Broadband Plan (2020-2025) on the 16th of December 2019.
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"The plan was unveiled and launched by His Excellency, President Muhammadu Buhari, on the 19th of March, 2020.
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"One of the goals of the plan is to reduce the average cost of 1GB of data to a maximum of N390 by 2025.
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"With the January 2020 baseline of N1,000 per GB, the maximum projected steady decrease for the end of each year was as follows: 2020 (N925), 2021 (N850), 2022 (N775), 2023 (N700), 2024 (N545) and 2025 (N390).
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"In line with Dr Pantami's commitment to under-promise and over-deliver, the measures have caused the current cost of data to reduce significantly beyond the December 2020 projection of N925.
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"Based on the Report by NCC, the average cost of data as at November 2020 was N487.18, which amounts to 47.33% lower than the projected value.
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"The Report also indicates that the cost of data in November 2020 was less than 50% of the cost of data in January 2020.ÔÇØ
Counter claim
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However, telecom subscribers have said FG's claim of 50% data cost reduction was not true as they still buy 1G at N1000.
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The president of National Telecommunications Subscribers of Nigeria (NATCOMS), Deolu Ogunbanjo told Daily Trust yesterday that the slash in data price wasn't true.
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Ogunbanjo said what the telecom operators did is technical reduction in terms of promo.
He said this doesn't give full value to the equivalent of money spent by Nigerian subscribers on data bundle.
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"Probably, what they did was technical reduction given in their promos. But the real reduction is not true'', he said
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Deji Eluobomi, an Ife-based subscriber, said it was not true that prices of data bundles had been reduced as he bought 1G data at N1000 Thursday morning.
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"Probably, the directive or policy has not been accepted by the telecom operators.
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"I still bought data, 1G at N1000 this morning. I don't think this [claim of price slash] is true,ÔÇØ Eluobomi said.
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Another subscriber, Muyiwa Ayinde Kareem, who is based in Lagos, also debunked the claim of data cost reduction by 50%.
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"I should be the first person to know if there was such a reduction.
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"I sell data and use it. There is no reduction of any kind,ÔÇØ he said.
Mukhtar Abdullahi, another subscriber in Sabongari, Kano, said he had not noticed any reduction in data cost.
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'Telcoms are robbers'
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Meanwhile, the Senate said the telecommunications companies operating in Nigeria are "robbingÔÇØ Nigerians of their hard-earned money.
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The Chairman, Senate Committee on Communications, Senator Oluremi Tinubu (APC Lagos Central), made the allegation during budget defense by the Nigerian Communication Commission (NCC).
"The Telecommunications companies are robbing Nigerians of their hard-earned money,ÔÇØ Oluremi said.
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She said that the senate would do everything possible to ensure that Nigerians using their services got value for their money.
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Telcom operators' position
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The operators declined comments on the purported reduction when contacted yesterday.
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But the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had earlier said in November 2019 when FG directed operators to reduce data price that the directive was dictatorial and could scare away investors from the country.
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ALTON's Chairman, Engr. Gbenga Adebayo had told our reporter in a telephone interview that: "I don't know how the government is going to achieve that (data reduction) in five days.
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"Have they put into consideration the high cost of operating our businesses, and the very harsh operating environment we are in?
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"Why are they trying to muzzle the NCC, and stampede it into doing what is unrealistic?
"Did they not know that operators don't just sit down and fix tariffs; they, with NCC, rely on so many things before coming up with tariffs.
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"We do not know under what circumstances the directive was given but we don't know how that is going to be achieved, to be honest with you.
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"We have said several times that when policies interfere with commercial matters the industry will be jeopardised.
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"Government needs to be careful not to whittle down the powers of the regulator.
"To arrive at prices, NCC normally conduct survey and research, and after all that, will benchmark the country's tariffs based on what is obtained in other jurisdictions.ÔÇØ
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Statistics
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Daily Trust reports that a survey released recently by Cable.co.uk, 10 of the top 50 cheapest countries in the world for mobile data are in Sub-Saharan Africa.
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Also, seven North African countries included appeared higher up in the table than the majority of countries in Sub-Saharan Africa.
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The report includes data from 6,313 mobile data plans in 230 countries around the world between October 23 and November 28, 2018.
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The average cost of one gigabyte of data was then calculated and compared to create a worldwide mobile data pricing league table.
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In Africa, which is the poorest continent by GDP per capita, countries in the southernmost part pay the most for 1GB at $7.19 for South Africa, $11.2 for Namibia and $14.12 for Botswana.
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In West Africa, Nigeria's 1GB can be obtained at $3.22, while in Chad it is $2.33, in Cameroon it is $1.71, in Ivory Coast it is $4.1, and in Niger it is $2.92.
In the North African region, Algeria's 1GB goes for $5.15, Egypt is $1.49, Libya is $4.87 and in Sudan, it is $0.6.
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The survey said India has the world's cheapest data plan at $0.10 for 1GB. It said in the US it is $12.37 while in the UK it goes for $6.66.
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The global average of 1 GB data plan is $8.53.
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Zimbabwe pays the highest price in the world with $75.20 per 1GB, followed closely by Equatorial Guinea with $65.83, Saint Helena with $55.47 and Djibouti with $37.92.
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— chuks oti