In comparison to its interventionist approach to regulating the terms of tariffs, the NCC adopted scaled-back versions of advertising rules in place around the world
The NCC issued a directive on tariff simplicity aimed at consumer protection, boosting competition
On 29 July 2024, the Nigerian Communications Commission (NCC) issued a directive to mobile network operators on simplifying their tariff offerings. The Guidance on the Simplification of Tariffs in the Nigerian Communications Sector aims to both improve consumer understanding by requiring operators to improve transparency around their tariffs and to promote competition by limiting promotional and add-on subscriptions for prepaid and postpaid plans. The country’s four operators (Airtel, Glo Mobile, MTN and 9Mobile) have 90 days to comply with the majority of the new guidance (except for rules regarding unbundling of offers, which come into effect on 1 January 2025) but had just two weeks – until 12 August 2024 – to submit a transition plan to the NCC detailing expected compliance efforts.
The regulator will require operators to restructure and gain pre-approval for all tariffs on offer, sharply limiting promotional offerings
As part of this effort to improve consumer understanding, the NCC is requiring operators to revisit not only how they communicate about tariffs but also to restructure their tariff offerings directly. Under the new guidance, operators are limited to offering a maximum of seven tariffs and 100 bundles of services, although they can continue to offer an unlimited number of add-ons to plans. These add-on services, including roaming packages and streaming services, must be offered independently and optionally to subscribers. Any promotional elements, including loyalty rewards and regressive billing, must be restructured as standalone offers by 31 December 2024. Operators will still be permitted to maintain one promotional offer aimed at attracting new subscribers, but operators must then transition any subscriber taking that tariff to one of its standard tariff plans within six months. Any free add-ons will be treated as promotions and also be required to be restructured as separate offerings. Operators will also need to offer fairly priced, standalone data plans as well, which the NCC states will prevent consumers from being required to take unnecessary services. All operators will have to submit their full slate of tariffs to the regulator for preemptive approval, and failure to comply could result in fines or the suspension of tariff approvals.
The related tariff transparency guidance borrows from international examples, though with less strict requirements
In addition to these more stringent requirements for the terms and conditions of tariffs, the NCC has also introduced new requirements for broadband advertising, similar to the efforts of a number of other regulators around the world in recent years. Much like the rules introduced by the US Federal Communications Commission (FCC), the NCC will require operators in Nigeria to provide a label for each tariff on offer in a standardised format that includes information on unit pricing for calls, texts and data usage, as well as traffic management policies and expected available speeds. Similar to the contract notifications required by Ofcom in the UK, operators will also be required to proactively notify subscribers of any expected changes to their tariff at least 30 days in advance, including migrations from promotional offerings to standard tariffs. Despite similarities in format, however, the NCC’s rules on advertising and transparency represent a less strict set of required disclosures and notifications than those mandated by other regulators, contrasting with the interventionist approach the regulator took to restricting the terms of tariff offerings. Nonetheless, the NCC’s adoption of a version of these increasingly common advertising rules reflects a trend in regulatory efforts to promote transparency for consumers as means of supporting effective competition in broadband markets.
