The Nigerian Communication Commission (NCC) says it is ready to introduce the new pricing cost for wholesale fixed transmission service providers in the telecommunication sector.
This means that consumers will henceforth be able to afford data for a long time.
The Executive Vice Chairman of the NCC, Prof. Umar Danbatta revealed its findings based on research carried out by KPMG. It states that there was excessive pricing of fixed transmission link which has raised a lot of eyebrows in the telecom industry.
He said: “The study revealed that wholesale and retail customers in the transmission market capacity in the country were excessively high and not reflective of cost.
“Specific examples were situation in which bandwidth prices for route between Lagos and London was lower that between Lagos and Kano or Port Harcourt.
Another issue that was identified was the issue of discriminatory prices of transmission links. It was observed that pricing was not based on cost, distance or any particular formula.”
Danbatta said: “ KPMG was hired to conduct and develop a comprehensive cost model using data collated from operators in the transmission cable market and draw inferences on the cost of providing transmission services in Nigeria and the transparency and competitiveness of pricing in the transmission markets.”
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