The Executive Vice Chairman of the Nigerian Communications Commission, NCC, Professor Umar Danbatta, has advocated the need for Nigeria to develop a proper pricing structure to ensure availability of affordable broadband in the country.
Dambatta made this position known during a stakeholders’ forum on the study of the determination of cost based pricing for retail broadband and data services in Nigeria held at the Digital Bridge Institute in Lagos.
He explained that the broadband pricing structure would also ensure fair competition by checking price discrimination, predatory pricing, excessive pricing, margin squeeze and price fixing amongst other abuses in the rapidly growing digital technology market..
In furtherance of its regulatory mandate, 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 set guidelines for the regulation of the pricing of retail broadband and data services in the country 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; and design the framework for collation of data that will be used to determine the appropriate cost modeling technique and methodology to be adopted..
The professional services providing company 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 responsibility of KPMG 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.
The price structure for broadband aligns with regulatory agency’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.
