Telecom Giants Propose Tariff Hike, Nigerians Should Brace for Higher Costs

Mobile Network Operators (MNOs) in Nigeria, including Globacom, 9mobile, MTN, and Airtel, have called upon the federal government to initiate productive discussions within the industry. The telcos argue that the existing price control mechanism does not align with economic conditions, prompting them to seek government intervention to tackle pricing issues.

These four telecommunications giants have highlighted that they are the sole operators yet to adjust their prices, expressing concerns about the sustainability of the industry and the potential impact on investor confidence.

Telecom operators have cited various factors contributing to this decision, including rising operational costs, infrastructure maintenance, and investment requirements in network expansion and technology upgrades. These companies argue that an adjustment in tariffs is necessary to ensure sustainable operations and to continue providing quality services to their subscribers.

In a statement signed by ALTON Chairman, Mr. Gbenga Adebayo, and ATCON President, Mr. Tony Emoekpere, it was noted that there has been no overall increase in service pricing framework for the past 11 years. They attributed this lack of increment to regulatory constraints, despite facing challenging economic conditions.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.”

“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints.”

“Government needs to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.”

The telecommunications companies also voiced concerns about escalating security challenges that are impacting the efficiency of their services. They urged the federal government to implement measures to address this pressing issue.

Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators. We urge the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.”