The Nigerian Communications Commission (NCC) has mandated telecom licensees in Nigeria to inform consumers of major service outages on their networks through media channels, stating the causes of the service interruption, and the areas affected by the service interruption/outage, as well as the time that would be taken to restore service.

According to the press statement signed by  Acting Head, Public Affairs, Nnenna Ukoha, Consumers must also be informed one week in advance where operators have planned service outages.

This development, contained in the “Directive on Reportage of Major Network Outages by Mobile Network Operators (MNOs),” is part of the Commission’s drive to ensure timely resolution of outages, enhance quality of experience for telecom consumers, and keep consumers informed.

According to the Directive, Mobile Network Operators, Internet Service Providers and other operators that provide last mile services will also provide proportional compensation, including extension of validity, as may be applicable and in line with the provisions of the Consumer Code of Practice Regulations, where any major network outage continues for more than 24 hours.

It identifies three types of major outages to include: Any network operational condition such as fibre cut due to construction/access issues/theft & vandalism and force majeure that impacts five per cent or more of the affected operator’s subscriber base or five or more Local Government Areas (LGAs); having an occasion of unplanned outage of, or complete isolation of network resources in 100 or more sites or five per cent of the total number of sites (whichever is less) or 1 cluster that lasts for 30 minutes or more; and lastly, any form of outage that can degrade network quality in the top 10 states based on traffic volume as specified by the Commission from time to time.

In furtherance of this, the Commission has further directed that all Major Outages are to be reported by operators through the Commision’s Major Outage Reporting Portal, which is accessible to the public through the Commission’s website, www.ncc.gov.ng. The portal additionally discloses the identity of the culprit responsible for the disruption.

Commenting on the Directive and the Major Outage Reporting Portal, the Director, Technical Standards and Network Integrity, Engr. Edoyemi Ogor stated that, “The Commission has trialled the reporting process and portal with operators for some months now before issuing the directive.

“By providing consumers and stakeholders in the telecommunications industry with timely and transparent information on network outages, we are entrenching a culture of accountability and transparency. This approach also ensures that culprits are held responsible for sabotage to telecommunications infrastructure.

“This also aligns with our broader commitment to the effective implementation of the Executive Order signed by President Bola Ahmed Tinubu, which designates telecommunications infrastructure as Critical National Information Infrastructure (CNII). It reinforces the need to safeguard these assets, given their centrality to national security, economic stability, and the everyday lives of Nigerians,” Edoyemi Ogor said.

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The Nigerian Communications Commission (NCC) has directed telecommunications operators to simplify their tariff plans, bundles, and promotional activities, aiming to provide clearer and more accurate information on the cost of voice, SMS, and data services to subscribers.

The directive, titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” was issued recently.

According to the directive signed by Reuben Muoka, Director of Public Affairs at the NCC, It mandates Mobile Network Operators (MNOs) to publish a comprehensive table detailing the features of their tariff plans and bundle offers, enabling consumers to make informed decisions.

According to the NCC, the tables must include vital information such as add-ons, pricing, opt-in and opt-out procedures, terms and conditions for renewal, and rollover policies.

This move follows consultations with industry stakeholders, including MNOs and Consumer Focus Groups, as well as extensive data analysis on consumer preferences.

The simplification guidelines aim to reduce the complexity of tariff plans and bundles, ensuring transparency and fairness in promotional elements.

The directive also seeks to protect consumer interests by providing clear and understandable tariff information and to promote fair competition among licensees by standardizing tariff structures.

Service providers are also required to display all relevant information about their tariffs, including plan names, prices, validity periods, price-per-second for on and off-network and international calls, expected data speeds, and fair usage policies.

“Operators can maintain existing bonus-led tariff plans until December 31, 2024, within which period they are expected to educate and migrate all subscribers to the simplified tariff plans,” the directive stated.

Additionally, the NCC guidelines require that tariffs be communicated to subscribers in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).

The directive also emphasizes that operators must offer stand-alone data bundles at fair prices, eliminate access fees and asymmetric fee structures, and ensure that bonuses on promotions are stated in actual value.

The NCC has warned that while operators comply with these new guidelines, they must also continue to meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.

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TECHDIGEST–  The Association of Licensed Telecoms Companies of Nigeria (ALTON) has raised concerns about the future of the telecom sector, citing high energy costs, spiraling inflation, and multiple taxations as major threats. MNOs, acting under ALTON, fear that if the current situation persists, Nigerians may wake up one day to find telecom services unavailable.

Chairman Gbenga Adebayo highlighted the sector’s heavy reliance on diesel, with the rising pump price and the impending implementation of a 7.5% Value Added Tax (VAT) on fuel, further exacerbating the cost burden. Additionally, the removal of fuel subsidies has increased the cost of diesel transportation, posing significant challenges for the industry.

Adebayo explained that due to inadequate power supply from the national grid (averaging less than 30% daily), MNOs are forced to rely on alternative energy sources, primarily diesel, which accounts for around 70% of their power generation. He emphasized that renewable energy solutions like solar and wind only contribute negligibly to the overall power supply. The cumulative effect of limited power availability and escalating diesel costs, coupled with increased VAT and haulage expenses, has created an unsustainable situation. Adebayo stressed the need for prices to reflect the industry’s cost of production to ensure the continuity of telecom services.

READALSO:

ALTON and the MNOs are actively engaging with industry stakeholders, including the Nigerian Communications Commission, to address the challenges faced by the sector. They acknowledge the hardships faced by the public due to high living costs but highlight that the telecom industry operates within the same ecosystem and faces similar challenges. Policy changes such as the removal of fuel subsidies, the introduction of VAT on diesel, and the proposed 40% electricity tariff hike have all impacted the industry’s cost structure.

Consequently, if production costs continue to rise, MNOs may have no choice but to raise end-user prices, aligning them with the cost of energy, fuel, diesel, and transportation.

Despite the difficulties, the telecommunications and information services sector has played a crucial role in bolstering the Nigerian economy. In the first quarter of 2023, the sector contributed N2.508 trillion, equivalent to 14.13% of the country’s gross domestic product (GDP). This represented a 4.3% increase from the previous quarter and a positive progression of approximately 9.19% year-on-year. The sector’s positive performance was further highlighted by the significant revenue generated for the government through the issuance of 5G technology spectrum licenses and the successful launch of broadband services, including the introduction of SpaceX’s Starlink services.

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TECHDIGEST – In order to raise money, the federal government through the finance ministry, and the Nigerian Customs Service (NCS) have suggested a 5% excise duty on telecommunications services such as calls, SMS, and internet services.

This proposal is reported to be a component of the new Finance Act that President Muhammadu Buhari signed into law in 2020.

While the Minister of Communications and Digital Economy Isa Pantami is strongly against the new telecom taxes, the minister of finance, budget and national planning, Mrs Zainab Ahmed, insisted that the excise duty on telecommunications services is inevitable.

In rejecting the new tax on calls and data, Professor Pantami said that the move would impact the sector and Nigerians negatively. Speaking in Lagos at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo organised by the Nigeria Office for Developing the indigenous Telecom Sector, an agency domiciled in the Nigerian Communications Commission, the Minister stated that the telecom sector already contributes a lot to the Nigerian economy and urged the government to consider taxing other sectors of the economy that were not contributing to national development.

He said: “Firstly, I have not been consulted officially and part of the rulemaking is to invite stakeholders to make contributions, I was not consulted officially. Secondly, if we have been contacted, we would have challenged the submission.

“The sectors that are contributing to our economy today are few. What we should be doing is to ensure that all other sectors can also contribute. A lot of sectors are consumers, these are the sectors that we should be tasked to contribute.

“Excise duty is introduced to discourage the consumption of certain commodities like alcohol, and tobacco. But today, without broadband penetration, how can you perform financial transactions, how can you deliver lectures without that, how can you work in a hospital, these services are a necessity.”

According to him, telecom companies contribute 2 per cent excise duty to the NCC already. He stated that telecom consumers also pay 7.5 per cent for consuming telecom services.

Meanwhile, the minister of finance, budget and national planning, Zainab Ahmed said the federal government is on course to implement the five percent excise duty on telecommunications services.

In a statement by her media aide, Yunusa Abdullahi, Zainab noted that all relevant agencies, including the communications ministry, were informed of the implementation of the tax approved by President Muhammadu Buhari.

READ ALSO: Finance Minister insists on 5% Telecom Tax

“Against the comments by Isa Ali Pantami, honourable minister of communication and digital economy, concerning the five percent excise duty hike on telecoms services, it is worth noting that there was a circular stating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government,” the statement reads.

“The circular Referenced No. F. 17417/VI/286, dated 1st March 2022, and titled “Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments” was addressed to different ministers, including the honourable minister, communications and digital economy and other heads of government agencies.

“Although Nigeria is celebrated as the largest economy in Africa, translating this wealth into revenues remains a challenge. Considering this in line with the provision of the revised National Tax Policy, which provides the framework for a sustainable tax system that would ensure reliable sources of revenue to government and support economic development.”

Contributing to the debate, the Association of Licensed Telecoms Operators of Nigeria (ALTON) said that the most recent plan portended the end of operators because there were already 39 charges being imposed on them.

According to them, the excise duty is a production tax that finally gets transferred to consumers. The new levy would essentially raise the consumption tax on Telecommunications services, such as phone calls and internet data, to 12.5% from the current 7.5% VAT rate. According to the Nigerian Communications Commission (NCC), the sector contributed N3.25 trillion in income in 2021, and based on the sector’s growth rate so far in 2022, the new tax is expected to collect N200 billion over the course of the following year.

The collection and submission of telecom taxes are the responsibility of telecom firms at the federal, state, and local levels. They are significantly more regulated and thorough than a typical sales tax, despite the fact that they may be seen as a kind of sales tax or excise tax on telecom services. Only the petroleum and rental vehicle businesses, which focus on specific products, are taxed more heavily than the telecoms sector.

When all federal, state and local taxes are considered, there are hundreds of different tax kinds and bases that result in hundreds of thousands of various potential filing obligations. Numerous businesses that offer communications services are subject to telecommunications tax responsibilities. This involves a growing number of businesses as technology develops more quickly than legislation.

Governments rely heavily on tax revenue from the telecommunications sector, and operators are commonly the target of tax officials conducting audits to confirm respect for their tax duties. Taxes and levies, however consequences on telecommunications operators have a negative service offered by operators in terms of utilizing services, Pricing, investment choices, service quality, and service affordability. High tax rates and fees are inextricably linked to investments made by operators in infrastructure and machinery, the level of service quality, and the price offered by the subscribers.
One of the important areas of the information and communication technology (ICT) sector is the telecommunications subsector and Nigeria is the largest telecom markets in Africa. Surprisingly, the Mobile Network Operators (MNOs) providing telecom services in Nigeria are currently subjected to more than 40 distinct taxes and levies.

Over time, the Nigerian telecommunications industry developed into an oligopolistic market structure. It is impossible to overstate the value of telecom airtime and data in the complex environment we live in today. Nigerians continue to suffer excruciating pain as a result of the aggressive taxation of the country’s telecom industry, which has caused network quality to deteriorate.

The necessity to guarantee that the government is not overly taxing basic requirements arises from the fact that, if Abraham Maslow’s Hierarchy of Needs theory had been founded today, telecom airtime and data could have been correctly classed alongside food and shelter as physiological needs.

Prepaid services or a minimum monthly amount, for instance, could have been excused. Telecom services such as broadband have become a necessity and without them, nothing could be done in various sectors, and introducing the excise duty wouldn’t be beneficial to Nigerians as the economy isn’t friendly.

If the government insists on imposing the new telecom tax, Nigerians will undoubtedly experience more negative effects as a result because the timing is wrong and any extra hardship on citizens won’t be tolerated.

I also agree that the government must extend its net to other sectors as it hopes to increase revenue because the telecom industry is already doing enough and will only crash if any further taxes are added.
Each sector must contribute a certain percentage to the economy rather than relying on a single sector.

Fom Gyem writes from Wuye District Abuja

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TECHDIGEST – Enrolments for the Biometric Verification Number (BVN) by bank account owners in the country rose to 54.7 million as of May 29, 2022. According to the data released by the Nigeria Inter-Bank Settlement System (NIBSS), this shows that 3 million new enrolments were recorded between January and May this year.

As of December 26, 2021, the enrolment for the number stood at 51.7 million. The NIBSS data also revealed that the BVN database grew by six million in the year.

Meanwhile, NIBSS data showed that active bank accounts in the country stood at 133.5 million as of December 2021. While there may be multiple accounts linked to a single BVN, industry analysts said there is still a gap between bank accounts and BVN registrations, which must be filled.

READ ALSO: RiNET: Nigeria’s Startup Eases Access To Research From Tertiary Institutions

To have many more Nigerians on the BVN database, the CBN had in December 2019 announced the commencement of the classification BVN 2.0 plan that allows both the rich and poor in rural areas to access financial services. The CBN Governor, Godwin Emefiele, who broke the news at the end of the 11th Bankers’ Committee retreat in Ogere, Ogun State, explained that BVN will now be classified into two, BVN Premium and BVN Lite.

According to him, while the BVN Premium covers customers that can provide the 18 basic requirements for a complete BVN enrolment, the BVN Lite requires minimal documentation like names and phone numbers for bank customers, especially those in the rural areas that do not meet the full requirements.

The initiative, which is in collaboration with the Nigerian Communication Commission (NCC) and Mobile Money Operators (MMOs), would ensure more Nigerians are brought into the financial system. “The BVN 2.0 classification scheme will help bring more people into the financial system and reduce the financial exclusion rate,” the CBN Governor had said.

Source: Nairametric 

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TECHDIGEST – Nigeria’s multiple and aggressive implementation of taxation on telecommunications companies is the cause of bad network quality. This was disclosed in a report released by SB Morgen titled “Inside Nigeria’s Subnational Fiscal Crisis”.

The report stated that the telecommunications industry appears to suffer disproportionately from this over taxation in Nigeria. The report also revealed that there are over 40 different taxes and levies meted out upon the Mobile Network Operators (MNOs) carrying out telecom services in Nigeria.

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However, the aggressive taxation of this sector has led to the degradation of network quality causing Nigerians to suffer the consequences.

What the report is saying

The report stated that the poor network quality is an evident result of telecoms corporations’ numerous taxation. It said, ”A clear impact of multiple taxations of telecommunications companies is the degradation of network quality. This mostly occurs when state authorities, in a bid to enforce compliance in payment of taxes, lock up the facilities of telecom operators and deny them access to their sites for refuelling, maintenance or fault resolution.”

The report stated that the regulator’s forceful lockout of telcos would result in catastrophic network disruptions, affecting a large number of Nigerians.

The report said, “The lockouts are quite often targeted at large sites, which effectively paralyses a good section of the network, causing complete network outage for the affected communities over an area that could stretch across as many as two or more adjoining states.”

According to the report, the effects of such network failures are not limited to the impacted telecommunications network but may spread to others as affected clients transfer to other network providers when they are unable to enjoy service from their current network providers.

The report said, “telecommunications operators in Kogi State warned that the shutting down of their sites by the Kogi State government in a bid to force operators to pay more taxes and levies could lead to a communications blackout in as many as 11 states.”

The report added that “State governments often lock telcos out of their facilities in a bid to collect various taxes. Oftentimes this leads to a degradation of network quality”

Source:  Nairametric 

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TECHDIGEST – The Nigerian Communications Commission (NCC) has ruled out possible hike in telecom tariffs for now and assured subscribers that increase in the price of talk and other services cannot happen without recourse to empirical studies.

Mobile Network Operators (MNOs) under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have proposed a 40% tariff hike citing high cost of running their operations in a letter to the telecom regulator.

The demands have fueled subscribers’ rage.

But the NCC has assured that there will be no arbitrary increased in the orice of telecoms services.

“Consistent with international best practice and established regulatory procedures, the NCC ensures its regulatory activities are guided by regular cost-based and empirical studies to determine appropriate cost (upper and floor price) within which service providers are allowed to charge their subscribers for services delivered,” the regulator stated in a statement released in Abuja and signed by Director, Public Affairs, Dr. Ikechukwu Adinde.

According to the statement, “the Commission ensures that any cost determined, as an outcome of such transparent studies is fair enough as to enhance healthy competition among operators, provide wider choices for the subscribers as well as ensure sustainability of the Nigerian telecoms industry.

“For the avoidance of any doubt, and contrary to MNOs’ agitation to increase tariffs for voice and Short Messaging Services (SMS) by a certain percentage, the commission wishes to categorically inform telecoms subscribers and allay the fears of Nigerians that no tariff increase will be effected by the operators without due regulatory approval by the commission.

READ ALSO: Why Telcos Are Asking For 40% Tariff Hike On Data, Calls – ALTON

“It is noteworthy that tariff regulations and determinations are made by the Commission in line with the provisions of Sections 4, 90 and 92 of the Nigerian Communications Act (NCA) 2003, which entrusts the Commission with the protection and promotion of the interests of subscribers against unfair practices including but not limited to; matters relating to tariffs and charges.

“The current tariff regime being administered by the service providers is a product of NCC’s determination both for voice and SMS in the past.

“However, while there could be justifiable reasons for MNOs’ demand for tariff increase, it should be noted that they are not allowed to do such either individually or collectively without recourse to NCC, following the outcome of a cost study. This is not the case for now.

“Through NCC’s commitment to engendering healthy competition among the licensees, the cost of services has been democratised and become more and more affordable for Nigerian subscribers. The regulator is even more committed to this cause to ensure subscribers get greater value for money spent on telecom services.”

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TECHDIGEST –  The Nigerian Communications Commission (NCC) has insisted that Mobile Network Operators (MNOs), their licensed agents and telecom subscribers must comply with the Subscriber Identity Module (SIM) registration, activation and replacement procedures as set out in the Revised National Identity Policy for SIM Registration.

Speaking at the 6th Edition of the Telecom Consumer Town Hall on Radio (TCTHR), a radio-based interactive consumer outreach programme of the Commission, the Director, Consumer Affairs Bureau, NCC, Efosa Idehen, said that operators are to ensure strict compliance when registering their customers, the SIM card owners to have the responsibility to be vigilant to ensure that they are properly captured either for new SIM activation or SIM replacement.

“As the telecom regulator in Nigeria, our role is to enforce compliance with the extant SIM activation and replacement procedures in order to avoid problems that may arise in the event of stolen, lost, damaged SIMs or the need to upgrade SIM cards,” he said.

While asserting that compliance with the stipulated procedures for SIM replacement will forestall identity theft, fraudulent SIM swap and other deceitful activities that can be carried out with a SIM card, Idehen noted that SIM registration is significant to personal and national security.

READ ALSO: ASUU Threatens To Withdraw NITDA Boss Degree Certificate

He informed the listeners that, in accordance with the Revised National Identity Policy for SIM Registration, all SIM replacements shall be undertaken by the service providers or their licensed agents in a controlled environment to eliminate the recurrent complaints of inconclusive SIM replacement procedures. He said such experiences have resulted in subscribers being defrauded by cyber fraudsters.

Idehen also advised telecom consumers to be wary of fake SIM registration agents purporting to be working for MNOs with the intent to defraud unsuspecting subscribers. He said one of the antics of such agents is to ask for the one-time password (OTP) forwarded to the consumer for activation of the SIM, especially after the SIM replacement process has been done. He warned telecom consumers to be wary of such scams.

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TECHDIGEST – Ahead of the deployment of the fifth generation technology (5G) in the country first quarter (Q1) this year, subscribers must brace to pay more for services provided on the network by mobile network operators (MNOs).

A senior executive of one of the biggest carriers in the country, who spoke on the sidelines of a well-attended forum convened to review the Information Memorandum (IM) for the deployment of 5G at the twilight of last year, said: “It is interesting how enthusiastic people are about 5G. With 3G and 4G, complaints of data depletion are all over the place. The NCC must be ready to attend to the barrage of complaints from subscribers because 5G will come at a premium cost.”

Minister of Communication and Digital Economy, Prof Ibrahim Pantami said 5G will be approximately 20 times faster than 4G, adding that it will open many opportunities for businesses because of the quality of the service while allowing many devices to get connected implying that everything will be connected.

Former President, Association of Telecoms Companies of Nigeria (ATCON), Olusola Teniola, said because of the cost factor, if 5G is rolled out this year as planned, it will be in areas where customers will be able to afford its cost.

He said aside the high cost of the 3.5gigahertz (GHz) spectrum, which will be used to roll out the services, the cost of devices, punitive business operating environment and cost of foreign exchange (forex) to procure 5G equipment will inevitably make end user tariffs go up.

He added: “If they are going to roll out 5G this year, they are going to roll out where it is affordable because even right now, as we look at the 4G, 3G tariffs, the data plans are geared towards those that can use more data. If that is the case, the more money you have, the more money you can spend, and if you can spend more, the operators will give you a deal that will enable you to access more data for the types of app you want to run. So anywhere in the world, that is the way it works, it’s not only in Nigeria.

“So, in short, it is going to be very unlikely that anyone that can spend a huge amount of money on 3.5GHz spectrum which at the moment and until they pay is $273million, just think about that $273million for spectrum for 10 years, that is $3.7million every year, that is for spectrum alone.’’

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