NCC slashes SMS tariff to N4

Nigerian Communications Commission (NCC) this morning announced a new price cap of N4.00 per message for all domestic off-net short messaging service with effect from February 5, in the first regulatory intervention of the year to bring down the cost of SMS.

'Off-Net' is when the message is made on a different network, for instance from Etisalat for Glo which currently costs N10 per SMS.

NCC said that the directive to this effect has been communicated to the operators since January 3, 2013.

The commission however said it will not place a price cap on International SMS at this time.

The directive signed by Ms. Josephine Amuwa, director, Legal and Regulatory Services of NCC, said the Commission arrived at the new price cap after due considerations of the submissions made by the operators at various consultative meetings.

Amuwa  said having evaluated and analyzed SMS traffic information provided by the operators, the Commission noted that  “ there was a general recognition that the cost of SMS is too high, especially in view of the interconnection rate of N1.02 for SMS as determined by the Commission in 2009”.

She also noted that the operators had proposed a price cap ranging between N5-N10 per message for Off-Net SMS.

The operators also urged the Commission not to set a cap for international SMS due to the fact that Interconnect rates for International SMS are outside their control as it is terminated through international carrier service providers in various jurisdictions. NCW

In a bid to ensure affordable services in the Telecoms Sector for about 100 million subscribers , the Nigerian Communications Commission has ordered the slashing of SMS charges in the Country.

As at the moment, the Short Message Service which has been massively utilized in the Country, has a high price rate of about N10 for off-net, which according to subscribers, is unfavourable.

Mr Reuben Muoka, the Head, Public Affairs and Media for the Nigerian Communication Commission, who issued out the statement on Thursday, said the Telecommunications Companies had been notified since January by the regulatory body of its decision, affirming that the new sms tariff would take effect from February 5,2013.

President of the National Association of Telecoms Subscribers of Nigeria, Chief Deolu Ogubanjo said the development was a good one and will encourage subscribers to patronize the Network services, especially the SMS provisions.


 
He further stated “While we appreciate this development, we believe the commission can do better. What it has done is on SMS. The telecoms subscribers are exposed to three areas, which are voice, data and SMS. NCC has done SMS; the data depends on the networks”.

Director Legal and Regulatory Services for the NCC, Ms Reginald Amuwa said that “There was a general recognition that the cost of SMS is too high, especially in view of the interconnection rate of N1.02 for SMS as determined by the commission in 2009.”

She said the decision was in accordance with the provisions of Section 4, Chapter VII of the Nigerian Communications Act, 2003, which empowers it to dictate SMS tariff where necessary