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“I will fight against this data increase in the Senate” – Ben Murray-Bruce + See the reason for the Planned Increase

BellaNaija.com

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ben-murray-bruce-on-data-tariff-hikeSenator Ben Murray-Bruce has said that he will fight against the proposed data increase in the Senate.

He made this known in a Facebook Post on Wednesday, where he said that the Nigerian Communications Commission (NCC), as a regulator, should direct GSM firms to reduce and not increase tariffs.

I will fight against this data increase in the Senate. The NCC, as a regulator, should be directing that GSM firms reduce and not increase tariffs!! In my opinion, rather than direct GSM firms to hike rates, NCC should invest in free public wifi for the advancement of knowledge in Nigeria. It is very unjust for people whose fuel, power and GSM plans are paid for by the people to increase fuel, power and GSM plans for the people without increasing the minimum wage! If the government is desperate for money then they should tax something that mainly the rich enjoy. The money they are looking for can be gotten if they tax all Business and First Class tickets.

My name is Ben Murray-Bruce and I just want to make commonsense!

Findings by TheCable has revealed that the NCC approved the new “floor plan”, or minimum pricing, for data services by mobile operators “to address market distortions, unhealthy price wars and value erosion that could threaten the going concern of the service providers”.

Read the report below:

In a letter to the big operators, the commission had directed that the floor plan for data should be 0.90k/MB effective December 1, 2016 “pending the finalisation of the study on the determination of cost-based pricing for retail broadband and data services in Nigeria”.

As virtually all the big operators were already charging below the new floor rate, the directive meant an automatic increase in charges for data services.

However, small operators and new entrants in the data market, such as Spectranet, Ntel and Smile, are still allowed to charge below 0.90k/MB.

NCC defines “small operator” as one that has less than 7.5% market share and “new entrant” as one that has operated for less than three years.

The regulator is of the opinion that without a price floor, the dominant operators can engage in predatory pricing to drive down other operators, meaning the industry could be moving towards a monopoly.

A senior NCC official told TheCable that CDMA operators – such as Multilinks and Starcomms – were muscled out of the market by the Big Four because of their market power.

“At the rate they are crashing data tariffs, there is every chance that they will soon kill all the small operators and new entrants. Part of the functions and duties of NCC is to check monopolistic and oligopolistic behaviours in the telecom market,” the official said.

Globacom currently charges 21k/MB apparently because of the economies of scale advantage, compared to Smile which charges 84k/MB, or four times Glo’s rate, in order to break even.

Under the new tariff regime, Smile can continue to charge 84k but Glo will have to move up to 90k/MB – a 328% increase.

The document seen by TheCable says in line with its mandate of promoting fair competition in the industry, the commission monitored activities in the data market segment “and observed that a significant reduction in current market prices for data services; in addition to complaints by subscribers to re-introduce the price floor for data services”.

It gave five reasons for re-introducing the price floor, which was first introduced in 2014 and suspended in October 2015.

The reasons are:

  1. Some service providers were actually pricing their services below cost, a situation which could spell doom for the industry.
  2. Dominant Operators in the wholesale leased line market, who also operate in the retail market embarked on massive predatory pricing, a conduct capable of substantially lessening competition.
  3. The removal of floor price for data resulted in eroding value in the market.
  4. The need to safeguard investment and ensure growth, development and sustainability of the telecoms industry.
  5. It is important to maintain the integrity of the network as operators lack capacity to accommodate the volume of transaction on their network.

It said: “When markets work efficiently, companies provide customers with more choice, lower prices better quality products and services. However, due to market imperfections, market forces alone cannot be entirely relied upon to discipline the operators to ensure efficient market conducts and promote market efficiency. It is in recognition of the above that regulatory intervention is required and has become a veritable tool to facilitate competition and create a level playing field between competitors.”

Read the full report HERE.

The Senate has also resolved to halt the new tariff approval, adding that it condemns, “in all totality” the planned move.

This followed a motion raised by the Deputy Senate Leader Ibn N’Allah on Wednesday.

The Senate also mandated its Committee on Communications to carry out thorough oversight on the process to ensure that Nigerians are carried along in the process. It also mandated the committee to investigate the allegations of failure of the service providers, adding that it should ensure that Nigerians are not short changed.

22 Comments

  1. ebi

    November 30, 2016 at 12:55 pm

    Also try and pay Union bank their money, all of una na the same thing. You are also part of the Federal Government. Mscheeeeew

    • NG

      November 30, 2016 at 4:15 pm

      Silly comment. So because he is in debt, his life should be nothing other than debt-centered?
      Anyhow, it’s his fault fighting for cheap data so your likes can type rubbish

  2. Suga

    November 30, 2016 at 1:20 pm

    Hmmm, only God will continue to save us from this senseless and unpatriotic set of leaders that we have presently have in Nigeria. Just tell me one thing a Nigerian is getting free as a citizen of Nigeria without paying for it even at this time they have not taught of how to reduce the impact of recession on the masses no matter how little rather the reverse is the case. Every damn thing is becoming expensive yet many people are presently unemployed and the masses are always the scape goat in all of these.I bet Jonathans administration couldn’t have been this mean to be watching Nigerians suffering like this without hope. There is no leverage what so ever for Nigerians as citizens. Are these people supposed to be told about the impact of any more increments on the masses if they have common sense? . I pray we know better during next election irrespective of the differences in religion, ethnicity etc. I bet no body is left out at the end of it all.It is really sad and beyond words!#I standwithBruceonthis#

    • nene

      November 30, 2016 at 5:41 pm

      seconded!

  3. tunmi

    November 30, 2016 at 1:27 pm

    Jesus Christ!!! You mean a Nigerian publication can actually do their research to get facts and figures on a public policy. Thank you TheCable and thank you BN for bringing us someone else’s homework. I shade and I don’t shade, thanks for letting me know about TheCable tho.

    Now that I get why the price floor is there, I like it and I like the idea. However, I don’t like that new entrants and small businesses (less than 7.5% market share) get to charge below that price floor. Economists, what say you. It would not be fair truly but I understand the reasoning for it. More players means more competition and maybe finally Nigerians can get better innovation.

  4. Darius

    November 30, 2016 at 1:30 pm

    We are solidly behind you.

  5. A Real Nigerian

    November 30, 2016 at 1:35 pm

    328%??? Hahahahahahahaha! OMG!!
    The whole world is laughing at you, Nigeria!!
    Well, they would be laughing if they actually cared about the embarrassing, ugly mass of failure and disappointment that Nigeria is.
    Disgusting country.

  6. A Real Nigerian

    November 30, 2016 at 1:36 pm

    328%??? Hahahahahahahaha! OMG!!
    The whole world is laughing at you, Nigeria!!
    Well, they would be laughing if they actually
    cared about the embarrassing, hideous mass of failure and disappointment that Nigeria is.
    Disgusting country.
    Please stop censoring the word “u g l y”, BN.

  7. nwa nna

    November 30, 2016 at 1:42 pm

    Let the free market take its course! NCC in my opinion is going to over regulate the industry, if you want small operators to compete as they so claim, then provide them a subsidy that allows them to do so against the larger operators.
    The idea of NCC allowing companies to increase tariffs in my opinion is never in the consumers interest in

  8. Miss Anoni Moss

    November 30, 2016 at 2:00 pm

    The same government that promised high competition if fuel pump price increases but we are still waiting for that to happen now they want to do this… mean while NCC staff go for training abroad like twice a year. This country is so wasteful, our leaders are brain dead and we the citizen are too scared to start a revolution, Nigeria is a failed nation.

    • tunmi

      November 30, 2016 at 3:06 pm

      Not that I don’t believe you but where is the proof they go abroad twice a year?

    • Dee

      November 30, 2016 at 8:45 pm

      [email protected] twice. E dey pain you?

  9. def

    November 30, 2016 at 2:00 pm

    A lot of research and enlightenment are not gotten from brick and mortar schools but from the net. So say I got interest in windmills or solar farms, I check it out on the net first.

    What we will be is be 10 centuries back.
    What our kids will be is be 10 centuries behind as our data will be rightly guarded.

    So Emefiele was not scatter yarning. It was in d offing already.

    IzzOk
    Diaris God.

  10. Esther

    November 30, 2016 at 2:35 pm

    This is stealing from the poor! How will I look up facts to garnish my L and D presentations, Google up assignments and connect with friends, get updates and info? 1.5GB for 3k!!! Nigerian government is just robbing us in broad daylight. I pay every time I deposit in my OWN bank account. I get charged for withdrawals and transfers. I have to walk halfway before taking cab to save costs. I have to gulp water to soothe my patched throat for haggling too much in the market. My friends and I have to photocopy the photocopy of books cos they r too expensive. I’ve had to consider boiling water and cooling to drink cos ordinary “pure water” is so damn expensive!…..blah
    blah blah.. I could go on and on. What kind of inhumane treatment is this sef? Does the President even care abt lots of online and tech businesses that will definitely be affected? Oga o.

  11. rain

    November 30, 2016 at 3:20 pm

    Ben Murray Bruce…..great guy . We are heavily behind you

    • Edu

      November 30, 2016 at 3:44 pm

      He appears to be the only sensible person talking. Inasmuch as he made an error in taking excess loans, he actually did it for the masses so that we can enjoy the cinemas which I must admit am currently enjoying.
      I say we vote Sen Ben Murray Bruce for President 2019. Its gonna be a huge departure from the previous blockheads we ve had in power.

  12. zzzzzzzzzzzzz

    November 30, 2016 at 4:50 pm

    I can remember buying a MTN and GLO modems some time ago. they were cheap compared to satrcomms which I later on subscribed to. The MTN was a complete waste of money beacause throughout the time I used it I could only open a page online. The GLO was another disappointment. This is from experience. It was after I switch to Starcomms that I got value for my money. Unfortunately it went under and after scouting round I ended up with Spectranet which is serving me very well.

  13. mama zee

    November 30, 2016 at 5:37 pm

    serious sense. i’m so loving this guy with every common sense statement!

  14. TheTruth16

    November 30, 2016 at 5:59 pm

    I cry for my people

  15. nnenne

    November 30, 2016 at 11:42 pm

    …And the gap between the rich and the poor continues to widen!
    When are we going to let the top 1% rich people pay their fair share of tax?
    Legislators, state and federal, the executive should reduce their allowances and/ or income at least for now. Or they can pay more income tax.
    Please give the poor, a break!

  16. gbaskelebo

    December 1, 2016 at 12:33 am

    Senator BMB you are just too much, all i am waiting for now is time for the protest, it is long overdue, haba na crime to be nigerian? shuo… Ring the bell joor!

  17. Tee

    December 1, 2016 at 12:02 pm

    Obasanjo was the best leader Nigeria ever had I’ll say it over and over and over and over again. Nigerians feel they need democracy,and they don’t know the logic behind it. For these politicians it is the avenue for free loathing. We lost Abacha . During Obasanjo’s time I won’t say they weren’t stealing but it wasn’t as bad and Nigerians were still very ok, Nigeria is meant to be moving up and not going down hill. See beautiful South Africa and Tanzania. Mchew I’m just weak of these politicians

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