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MTN, Airtel, and Other Telecom Operators Reacts to NCC Proposal of a 12-month Airtime Reclaim Period
Nigerian telecom operators have recently reacted to the NCC 12-month airtime reclaim period proposal. The Nigerian Communications Commission (NCC) has proposed a new policy that gives telecom subscribers a 12-month grace period to reclaim unused airtime on deactivated lines. The NCC 12-month airtime reclaim period proposal is an attempt to mitigate unused prepaid credit, a growing concern within Nigeria’s telecom industry. The proposal was made during a virtual stakeholder engagement forum that brought together mobile network operators (MNOs), consumer advocacy, legal representatives and other industry experts.
The NCC airtime reclaim period proposal states that prepaid lines which go without use for a six month period will be suspended. Should this suspension continue for an additional six months the number will be recycled. However, those lines that have been internally churned will be given a one-year grace period for claim verification. The NCC stressed this policy aims at providing a measure of consumer protection and, at the same time, with market ‘realities’ as telecommunication operators encounter.
The telecom operators have reacted to the NCC 12-month airtime reclaim period proposal. Concerns were raised by Airtel Nigeria regarding the “use it or lose it” principle that is very common in countries like Ghana and India. Airtel proposed that subscribers be allowed to reclaim unused airtime only if network issues prevented them from using it; otherwise, they should forfeit the credit. The operator also proposed that there should be cooperation between the NCC and MNOs for compliance as well as consumer education campaigns.
MTN Nigeria drew attention to gaps of concern in the proposal, like the absence of an organized system for claim submissions and claim processing. MTN proposed that NCC put in place an overarching policy across all operators for uniformity’s sake. This policy would allow submission of claims through self-service portals, verification of identity through the National Identity Numbers (NINs), and validation by the telecom operators. MTN also opposed permitting the transfers of airtime between different networks owing to different cost structures and accounting policies.
Smile Communications voiced concern regarding retaining very small amounts of unused airtime for long periods, contending it could be unfeasible or uneconomical. The operator set forth a proposal of establishing minimum limits which, if exceeded, would not be retained post line deactivation.
NCC has accepted these concerns and reassured stakeholders that these issues will be dealt with by its Technical Review Committee. The commission has stressed that while unused airtime cannot be converted into cash, they can however be redeemed through services such as voice plans, data bundles, or value-added services. In addition, all operators were mandated by NCC to inform each and every subscriber about the risk of losing airtime within a maximum period of 90 days and implement consumer education initiatives.
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Comparative best practices for the NCC’s proposed airtime reclaim period can be found in the United States, India, and South Africa. These jurisdictions place higher value on providing additional alternatives or services, instead of cash refunds, resolving due to the nature of consumable services. With this policy, NCC seeks to promote a balanced and consumer-focused telecom environment while providing regulatory guidance for operators.
While ongoing discussions advanced, stakeholders alongside telecommunication operators are expected to give additional comments for the purpose of polishing the final document before formal adoption. This move made by NCC is a step towards addressing the issues of concern emerging in Nigeria’s telecommunication industry, while ensuring that consumer rights are safeguarded.
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