In a significant move reflecting the changing dynamics of Nigeria’s telecommunications industry, leading telecom operators MTN, Globacom (Glo), Airtel, and 9mobile have collectively lobbied the Nigerian Communications Commission (NCC) for permission to increase tariffs.
This is coming two months after an earlier letter to the industry regulator to demand for tariff adjustment amid rising operational costs and the need to sustain service quality and network expansion.
The telcos gave their reasons at a special reception for the Executive Vice Chairman/CEO of the Nigeria Communications Commission (NCC) hosted by the industry players under the Association of Telecommunications Companies of Nigeria, ATCON recently in Lagos.
ATCON President, Mr. Tony Izuagbe Emoekpere, emphasized the association’s commitment to working with the NCC, highlighting ATCON’s long standing role in representing industry interests and facilitating dialogue between regulators and operators.
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The operators have pointed to escalating costs in several areas, including energy, infrastructure maintenance, and regulatory compliance. The depreciation of the naira has also significantly increased the cost of imported equipment and services.
The telecom operators argue that the tariff increase is essential for sustaining operations and continuing to provide high-quality services. “The cost of doing business has risen sharply,” said Karl Toriola, CEO of MTN Nigeria. “To keep up with these changes and continue investing in our network, we need to adjust our pricing.”
On the other hand, consumer advocacy groups have raised concerns about the potential impact on affordability. “Telecom services are essential, and any increase in tariffs will directly affect millions of Nigerians,” said Sola Salako, a prominent consumer rights advocate. “We urge the NCC to carefully consider the implications for consumers, especially those in low-income brackets.”
Meanwhile, the NCC has acknowledged the challenges faced by the telecom operators but emphasized the need for a balanced approach.
Higher tariffs may lead to increased costs for consumers, potentially reducing their usage of telecom services. This could impact the overall adoption of digital services and hinder efforts to bridge the digital divide.
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For telecom operators, increased tariffs could provide the necessary revenue to cover rising costs and fund future investments in network expansion and technological upgrades, including 5G deployment.
The NCC’s decision on the tariff increase request will be crucial in shaping the future of Nigeria’s telecom industry. The commission is expected to conduct extensive consultations with stakeholders, including telecom operators, consumer groups, and industry experts, to ensure a fair and balanced outcome.
As Nigeria’s telecom industry navigates this complex landscape, the outcome of the tariff increase request will have far-reaching implications.
Balancing the needs of the operators with those of consumers will be key to ensuring the continued growth and development of the sector, which remains vital to Nigeria’s economic progress and digital future.