NCC Withdraws ‘Data Floor Price’ For Telecoms Operators

The Nigerian Communications Commission (NCC) on Monday said it has
withdrawn the "data floor price'' for operators in the
telecommunications industry.

"Floor price'' is a government or group-imposed price control or the
limit a price can be charged for a product to check unhealthy rivalry
among players.

In a statement in Lagos, the commission said that the withdrawal was
in a bid to ensure sustainability, growth and development of the data
service market segment.

"However, the commission will restore the floor price if any
distortion is observed within the market segment,'' it said.

NAN reports that with the withdrawal of the price, telecommunications
industry now has the permission of NCC to charge subscribers lower
than the set lowest industry prices.

The regulatory body had in May 2013 imposed a price floor on
telecommunications operators in the country as a means of controlling
anti-competitive behaviours by operators considered to have attained
the dominant status in the industry.
Such anti-competitive behaviours include charging calls within their
networks much lower than what they charged for calls terminating on
other networks.
With this, the operators might just be setting up calling clubs – a
practice where subscribers just call those within the network of their
own service providers.

-Vanguard