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NCC: Data floor price will stabilize market.

By Yetunde Verissimo -The Nigerian Voice, Abuja
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The Nigerian Communication Commission, NCC has asked Nigerians to take the N0.09K/Mb data floor price as a means to stabilize the telecom industry for quality service.

Mr Tony Ojobo, Director Public Affairs, NCC, made this announcement on Wednesday, in Abuja. He said the data floor price was put in place to promote a level playing field for all operators in the industry and customer alike.

"Allowing market forces to determine price will lead to monopoly or duopoly and monopoly does not breed Efficiency. Without a stable market, there will be minimal possibility of even getting to 5Gb and we do not want a situation where quality of service does not meet international standards" He said.

He noted that NCC is not oblivious to the recession in the country but has engaged in the price floor due to it necessity, he stressed that; " This regulator is proactive, responsible and responsive, understanding the dynamics of the industry globally and making sure Nigeria is not left behind. we need high investment to enjoy data services in Nigeria".

Also speaking, the Director Policy, Competition and Economic Analysis, Mrs. Josephine Anuwa stated that NCC has taken the action to avoid failure of the industry, adding that the price floor will sustain and encourage the industry to expand in momentum.

Anuwa further said that the NCC suspended the N0.90k data price floor in order to engage with consultants so as to review the price, she further added that the price floor will help check abuses in the industry.

Furthermore, the Deputy Director and Head, Competition and Tariff, Mr. Abubakar Yakubu said that the data price floor is to the benefit of the consumers in the long run, stressing that it will help to prevent predatory pricing which aims to eliminate competition.

He also noted that the Price Floor will help to create a minimum price which will be regulated as well as provide operative guidelines for operators.

The NCC few days ago suspended the N0.90k/MB data price floor which was introduced on December 1, 2016, due to complaints from consumers but will reintroduce it after consultations in order to bring back value in the industry.