Small Internet service providers face extinction threat over data pricing

The absence of a minimum data price floor for Internet services in the telecommunications industry is threatening the survival of small players

The absence of a regulated data pricing mechanism has created an unhealthy competition among big players offering multiple retail services and small players offering only Internet services in the nation’s telecommunication industry.

Stakeholders in the sector are of the opinion that the non-existence of a data price floor has greatly affected the ability of the firms to offer competitive prices for data plans, making it unprofitable for smaller ISPs to stay in business.

The President, Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, said in a conversation with our correspondent that the absence of a regulated price was putting the smaller players at risk because they were unable to offer prices beyond a minimum threshold without affecting their investments.

Out of the 182 licensed ISPs in the country, recent statistics from the Nigerian Communications Commission showed that only 87 of them were actively providing Internet services for 390,794 subscribers, excluding mobile network operators like MTN, Airtel, Glo and 9mobile, which also provide Internet services.

This shows that about 52 per cent of them are not in operation. The NCC recently complained that many of the ISPs had refused to renew their licences after the expiration of the initial five-year period and threatened to revoke the licences of 112 of them.

Categories: 9ja News