Executive Vice Chairman Nigeria Communications Commission, Umar Danbatta on Tuesday said his regulatory agency did not at any time increased or instruct telecommunication companies in the country to hike price of data for users.
He said what NCC did was to introduce an interim price floor of 90 kobo per mega byte below which telecommunication companies are not allowed to sell.
This is a reduction from an initial price floor of N3:11k which was suspended in 2015.
Danbatta said the absence of price floor created a "price war" in the telecommuication sector which was becoming unhealthy for competition.
He said NCC as a regulatory agency could not just fold its arms and watch the situation degenerate and quickly had to move in with the interim price floor of 90k per data mega byte to protect the consumer and prevent the emergence of a powerful monopoly in the data sector.
Danbatta gave the defence when he appeared before Senate Committee on Communications on planned increase of data services.
Even though NCC had in a subsequent directive asked telecommuication companies to revert back to status quo, the interactive session was aimed at clearing the air following a huge public outcry that greeted communications sent out by telcos that effective December 1, consumers would begin to pay more for data bundle.
Data Price Hike: "We Intervened To Avert Price War/Monopoly".........NCC
Danbatta said the absence of price floor created a "price war" in the telecommuication sector which was becoming unhealthy for competition.
He said NCC as a regulatory agency could not just fold its arms and watch the situation degenerate and quickly had to move in with the interim price floor of 90k per data mega byte to protect the consumer and prevent the emergence of a powerful monopoly in the data sector.
Danbatta gave the defence when he appeared before Senate Committee on Communications on planned increase of data services.
Even though NCC had in a subsequent directive asked telecommuication companies to revert back to status quo, the interactive session was aimed at clearing the air following a huge public outcry that greeted communications sent out by telcos that effective December 1, consumers would begin to pay more for data bundle.
Data Price Hike: "We Intervened To Avert Price War/Monopoly".........NCC
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