Reps probe telecom firms over extortion of consumers

There is a need for the Nigerian Communication Commission (NCC) to investigate the operations of telecommunications companies operating in the country over poor service delivery.

The resolution was passed as a sequel to the adoption of a motion under ‘Urgent Public Importance’ on the need for Nigerian Communications Communication to investigate private internet service providers in Nigeria,’ sponsored by Chairman, House Committee on Customs and Excise, Hon. Leke Abejide.

In his lead debate, Hon. Abejide, who accused the telecom firms of extorting unsuspecting consumers, solicited House intervention.

He said: “The House notes that numerous Internet Service Providers (ISPs) have managed to evade accountability for their widespread inefficiency, feebleness, and inferior service delivery, while consumers are compelled to persistently pay for inadequate services due to the apparent absence of regulations governing their pricing and service provision, thereby enabling them to exploit Nigerians.

“The House further notes that frequent service outages, slow speeds, and inconsistent connectivity are widespread issues faced daily by consumers, as in this digital age, an efficient Internet connection is a necessity, not a luxury.

“The House is concerned that consumers sometimes experience service outages for more than an aggregate of two weeks in a single month from some ISPs, with no mechanism for refunding subscription fees, thus perpetuating a disregard for consumer rights and leading to exploitation.

“The House is also concerned that Legend, an SP operating in Abuja, charges its subscribers a flat monthly prepaid rate despite knowing that its services are frequently interrupted.

“the For example, this company offers various tariffs, with the highest being approximately 483,000.00 per month, yet it rarely delivers uninterrupted service for even half of the month.

I am further concerned that Legend ISP deliberately provides reliable internet service only a few days preceding monthly billing, deceiving customers into renewing subscriptions under the false impression of satisfactory performance before immediately reverting to its persistently inadequate service levels, presenting an unethical business model of exploitation of consumers that requires accountability to regulators.

“The House is worried that regulatory agencies have so far condoned the activities of inefficient ISPs to the detriment of consumers.

“The House is also worried that the inefficiency of ISPs and their exploitative practices have far-reaching consequences for Nigerian society, hindering progress and negatively impacting business and economic activities.

“The House is aware that by addressing the inefficiencies of ISPs and promoting accountability, we can create a fair and inclusive digital landscape that empowers individuals, strengthens the economy, and fosters social progress,” he said.

To this end, the House tasked the NCC and relevant agencies with developing a consumer protection framework that includes provisions for automatic compensation or refunds for prolonged service outages or significant deviations from advertised service levels.

In the same vein, the House urged the NCC to initiate a policy of Pay As You Go to all ISPs in order to minimise the high level of exploitation by ISPs for services not rendered.

To this end, the House directed its Committee on Communications to investigate and report back to the House in two weeks.

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