Mobile operators agree to reduce SMS tariff

By Jonah Iboma


Mobile phone operators on Tuesday agreed to commence steps to reduce the price of short message service across their networks.
This is considering the potential of increased use of SMS in reducing network congestion in line with the practice elsewhere.
The operators came up with this position at a consultative forum held on Tuesday in Lagos, by the Nigerian Communications Commission on reduction of SMS tariffs.
The NCC had argued that the current SMS tariff in Nigeria was too high against the backdrop of the fact that SMS utilises an almost insignificant network resource.
According to the Executive Vice-Chairman, NCC, Mr. Ernest Ndukwe, the operators are not doing their networks any good by keeping prices of SMS high as increased use of SMS could help reduce the congestion on the networks and improve services generally.
He added that complaints about current tariff were increasing.
He said, “As you well know, SMS serves as alternative platform of communications to voice for the teeming consumers in Nigeria. Recent findings as well as other feedbacks from consumer programmes organised by the commission, particularly in recent times, have highlighted concern about the SMS tariff charged by telecom operators across the networks, leading to a call for reduction in the SMS tariff rates by consumers.”
The NCC boss noted that under the current tariff regime, various mobile and fixed wireless network operators charged different tariffs off-net and on-net, with the highest off-net tariff on mobile being N20 and the lowest being N10.
He added that on-net tariffs varied between N10 and N15, while off-net tariffs on fixed wireless networks ranged between N10 and N12.
He noted that in some countries, subscribers had SMS as a free service.
Ndukwe said, “May I state that though the current SMS rates in Nigeria is not the highest in the West African sub-region, it is also neither the most attractive. It is interesting to note that other jurisdictions like Ghana, Gambia, Australia and Switzerland adopt free SMS policy, while in other countries, only token amounts are paid for SMS.”
He said based on the complaints, the commission would introduce a price-cap for SMS services.
According to him, this is to encourage the use of SMS by the subscribers

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