I was a young lecturer at Lautech when GSM was launched in Nigeria in 2001. I could not afford one immediately because of the cost of purchasing a phone and the rates. It cost N50 per minute to make a call... Many blamed the cost of licensing the telecom providers - Econet, NITEL, and MTN- which was a whopping $285 million.
To put the call rate in perspective, the minimum wage in Nigeria was N5,500 then. If you had one line, speaking for 10 minutes could cost you 10% of your salary.
Fast forward to today, the rate is ₦13.80 per minute, a 72% drop since GSM came in 2001. Unlike in 2001, when there were no per-second rates, Nigerians can now make calls for a few seconds without being charged at a per-minute rate. There are also several options for consumers at cheaper rates on the surface - data plans of all kinds, combos of call and data, pay-as-you-go, etc. Many attribute these options and lower rates to technological advancement in the GSM space, including the proliferation of internet access and competition among more players in the field.
One would think these are great improvements: lower rates and calls per second, data plans, etc, will translate to a better experience and even much lower rates for customers. However, there are reports in certain quarters that telecom companies shortchange Nigerians because there are no laws that truly protect telecom consumers, or they are not being enforced as they should due to corruption or a lack of strong oversight by regulatory agencies.
Telecom companies in Nigeria continue to rake in billions of dollars in revenue every year. Of course, Nigeria is a country of over 220 million with more than half of the population holding a smartphone or two. So, many more people now patronize the companies. This is the main reason why Nigerians need to be protected, and the telecom companies should pay their fair share.
It is alleged that these telecom companies use avenues like "Data Disappearance," Hidden and Unsolicited Billing, untowards cost passed down to consumers when they experience road construction damage, vandalism, or theft. These need to be addressed promptly by the powers that be by:
1. Enforcing Mandatory "Pay-Back" Compensation for Downtime
2. Establishing Independent Data Usage Audits
3. Implementing Strict Opt-In Safeguards for VAS & Auto-Renewals
4. Mitigating Operational Costs Through Unified Taxation
On the surface, Nigeria has one of the cheapest rates for data and calls in Africa, but with all these hidden fees and cost transfers, it is one of the highest... Many Nigerians make a living online; many get their entertainment there to burn away sorrow, and it is the most efficient way of communicating with loved ones without expending time, cost, and risk to reach families and friends... It should remain cheap and accessible... WHY? Because there are enough of us (demand) for these companies to make a profit.
To put the call rate in perspective, the minimum wage in Nigeria was N5,500 then. If you had one line, speaking for 10 minutes could cost you 10% of your salary.
Fast forward to today, the rate is ₦13.80 per minute, a 72% drop since GSM came in 2001. Unlike in 2001, when there were no per-second rates, Nigerians can now make calls for a few seconds without being charged at a per-minute rate. There are also several options for consumers at cheaper rates on the surface - data plans of all kinds, combos of call and data, pay-as-you-go, etc. Many attribute these options and lower rates to technological advancement in the GSM space, including the proliferation of internet access and competition among more players in the field.
One would think these are great improvements: lower rates and calls per second, data plans, etc, will translate to a better experience and even much lower rates for customers. However, there are reports in certain quarters that telecom companies shortchange Nigerians because there are no laws that truly protect telecom consumers, or they are not being enforced as they should due to corruption or a lack of strong oversight by regulatory agencies.
Telecom companies in Nigeria continue to rake in billions of dollars in revenue every year. Of course, Nigeria is a country of over 220 million with more than half of the population holding a smartphone or two. So, many more people now patronize the companies. This is the main reason why Nigerians need to be protected, and the telecom companies should pay their fair share.
It is alleged that these telecom companies use avenues like "Data Disappearance," Hidden and Unsolicited Billing, untowards cost passed down to consumers when they experience road construction damage, vandalism, or theft. These need to be addressed promptly by the powers that be by:
1. Enforcing Mandatory "Pay-Back" Compensation for Downtime
2. Establishing Independent Data Usage Audits
3. Implementing Strict Opt-In Safeguards for VAS & Auto-Renewals
4. Mitigating Operational Costs Through Unified Taxation
On the surface, Nigeria has one of the cheapest rates for data and calls in Africa, but with all these hidden fees and cost transfers, it is one of the highest... Many Nigerians make a living online; many get their entertainment there to burn away sorrow, and it is the most efficient way of communicating with loved ones without expending time, cost, and risk to reach families and friends... It should remain cheap and accessible... WHY? Because there are enough of us (demand) for these companies to make a profit.
Comments
Post a Comment