TTelcos in Nigeria mull partial service to support tariff hike push. This is to manage their services while pushing for tariff hikes due to mounting financial pressures.
At an event tagged ‘’Telecom Industry 2.0: The Next Investment Frontier in Nigeria.’’, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), stated that the economic challenges have severely affected telecom companies, potentially hindering their ability to service all facilities simultaneously.
He noted that multiple taxes from various government and non-government agencies and unpaid debts from the banking sector have worsened infrastructure maintenance in the telecom sector.
“As we speak, there is an Association of Telecom Landlords whose primary aim is to fix rental charges for telecom facility deployments. This will be in addition to over 40 different taxes and levies the telcos face in the course of their operations.
“With all these, services will continue to be impaired. Today, we are heading to a situation where telecom services will be provided in parts because telcos may not be able to service all their sites at the same time.”
Adebayo revealed that when the operator agreed to provide telecom services in Nigeria in 2001, the government promised to supply 18 hours of power daily. However, this commitment hasn’t been met, forcing telecom operators to spend a large portion of their budget on power.
Mr. Karl Toriola, CEO of MTN, expressed that price increments have become a necessity, emphasising that the telecom sector has been struggling with rising costs in all areas, including the price of capital and the increasing expenses for maintaining infrastructure such as base stations and diesel generators.
Reactions of key stakeholders
Meanwhile, this development has garnered responses from key stakeholders. Including the Nigerian Communications Commission (NCC) and the National Association of Telecom Subscribers of Nigeria (NATCOMS).
While the NCC reportedly acknowledges that the operating environment is challenging, including other sectors, it maintains that the operators’ justification for not being able to provide quality services because of economic conditions is not strange, describing it as their strategy.
The commission pointed out that the recent load-shedding strategy seems like an attempt to pressure the regulator into approving a tariff increase, despite knowing that it’s unlikely to work.
Chief Deolu Ogubanjo, president of NATCOMs, warned that subscribers will hold the NCC accountable if the telecom sector fails. He cautioned that load-shedding could jeopardise not just the telecom industry, but also banking, education, health, and other sectors that now rely on telecom services.
Ogubanjo confirmed that the association has pushed for telcos to be allowed to set reasonable tariffs to cover their high operating costs. However, he criticized the regulator for failing to act while telcos continue to struggle with rising expenses.
