NCC stresses Need for Appropriate Pricing of Broadband

Wed, Jan 17, 2018 | By publisher


Business

PROFESSOR Umar Danbatta, executive  vice chairman, EVC,  of the Nigerian Communications Commission, NCC,  has stressed said the need for Nigeria to develop a proper pricing structure to ensure available and affordable  broadband in the country.

At the Digital Bridge Institute in Lagos,  during a stakeholders’ forum on the study of the determination of cost based pricing for retail broadband and data services in Nigeria the EVC said the broadband pricing structure would also ensure fair competition by checking price discrimination, excessive pricing, predatory pricing, margin squeeze and price fixing amongst other things.

The price structure for broadband is in line with NCC’s mandate of creating an enabling environment and promoting fair competition in the telecoms industry and in line with the strategic objectives of the National Broadband Plan.

The NCC has appointed KPMG to carry out the study to determine cost based pricing for retail broadband and data services in Nigeria. The outcome of the report will among other things: set guidelines for the regulation of the pricing of retail broadband and data services in Nigeria and specifically determine price cap and floor where necessary; develop a regulatory pricing model based on the peculiarity of the Nigerian broadband and data services market coupled with international best practices; design the framework for collation of data that will be used for the to determine the appropriate cost modeling technique and methodology to be adopted.

It will also determine the appropriate pricing regulatory measures to be adopted, determine need for ex-ante and ex-post regulation with respect to pricing in the retail broadband and data market segments; and develop a suitable definition of big and new entrant/small operators, if necessary;

Others are to conduct a general assessment of the retail broadband/ data market segment with a view of determining the appropriate methodology to be adopted and design a cost model that is suitable for determining retail prices for broadband and data services taking into cognizance the macro-economic, technology and technical relevant factors among others.

– Jan.  17, 2018 @ 2:05 GMT /

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