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Friday, January 19, 2018

Broadband: NCC outlines benefits of cost-based pricing, data services study

The Nigerian Communications Commission (NCC) has outlined some benefits of thorough study to determine the cost based pricing for retail broadband and data services in Nigeria, reports ITRealms.

According to the Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta, the outcome of the report to be carried out by KPMG would facilitate setting of guidelines for the regulation of the pricing of retail broadband and data services in Nigeria and specifically determine Price cap and floor where necessary.

“To develop a regulatory pricing model based on the peculiarity of the Nigerian broadband and data services market coupled with international best practices; and design the framework for collation of data that will be used for the determination; as well as to determine the appropriate cost modeling technique and methodology to be adopted,” he said.

In addition, he underscored the fact that the study would assist in appropriating pricing regulatory measures to be adopted eventually; the need for ex-ante and ex-post regulation with respect to pricing in the retail broadband and data market segments.

It is expected, he said, that the study would enable the development of a suitable definition of big and new entrant and or small operators, if necessary; just as it would avail the  conduct of a general assessment of the retail broadband cum data market segment with a view of determining the appropriate methodology to be adopted; and to 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.

Further, he disclosed that the study would result in the determination of a uniform pricing structure within the broadband and data segment; ensuring effective competition in the broadband and data market segment; guaranteeing affordability and accessibility of broadband and data services in Nigeria.

Facilitating inflow, development and growth of the broadband market segment; and above, “the stimulation of further economic growth considering the catalytic role broadband services plays.”

Nonye Dom/GEE

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