Editorials

The People Behind NCC Data Tariff Increase

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By Anonymous:

While it is no longer news that the have ordered Telcos to up Data tariff, what most people don’t know is that the owners of are those behind this illogical and insane move by the NCC.

These highly powerful and influntial owners (chief amongst them is TY Danjuma) foolishly bought Nitel/mtel’s overpriced and impaired asset with a strategy of penetrating the already saturated market with the introduction of the 4G broadband into the country at a ‘perceived’ reasonable price, but had fail to do their homework in terms of market research thoroughly.

We are all aware of how things have played out since they launched, especially how the ‘big 4’ Telcos have been responding by rolling out their own 4G services at about the same tariff obtainable with the 3G.

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Why the NCC is making over 160million Nigerians pay for the foolishness of the less than 20 or so buyers of overvalued mtel is beyond sane reasoning.

What did NCC do when Swift lost its 3G market share a few years back? The same way Spectranet did some months ago when they raised their tariff? Why is It now that ntel is in the mix that they have decided to take any action.

These wicked souls have wielded their power over the NCC to make them act in their favor just so they can get some chunk of the market and ultimately have their own share of the money spinning Telecoms industry.

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In saner climes, where the laws of Economics hold, if a new entrant wants to penetrate an already saturated and matured market, they would have to offer their product or service at a rate below the current market rate (the same way Glo, Airtel and etisalat did) or offer a somewhat novel product or service your would-be competitors doesn’t and can’t offer. But then, this is Nigeria, Nigeria where anything can happen, Nigeria that continuously breaks all laws of Economics, where the ‘Nigerian factor’ is supreme, Nigeria where a new entrant dictates the price of product and services at the expense of consumers.

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