New Expected Price for Data, Call, SMS Emerge As MTN, GLO, Airtel Set To Increase Tariff

• The average cost of phone calls There is an ongoing discussion among telecommunications companies about increasing tariffs for calls, data, and SMS
• Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has hinted that the increase will not exceed 60%
• The National Association of Telecoms Subscribers opposes the hike, but all indications suggest it will proceed

Nigeria’s leading telecommunications companies, including MTN, GLO, and Airtel, are set to raise tariffs on calls, SMS, and data services.

While the telcos seek a 100% increase, Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, said the government was only considering an increment of between 30 and 60%.

Speaking on Channels TV, Tijani said:

"We have already made it clear that we are not going to approve 100%. These companies are asking for 100%, stating clearly that this is what they believe they need to get. “It should not be more than anywhere between 30% to 60%

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"But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100%."

New tariff details

If the federal government agree on a 60%, here is what MTN, GLO, and Airtel expected the new pricing structure will look like:

Data:

Currently, Nigerians pay N350 to purchase 1GB across the networks, and a 60% increase means that 1GB will now cost N560.

A monthly plan that costs N3,000 will increase by N1,800, bringing the total price to N4,800 if the 60% increase is approved, Punch reports.

Calls

the average cost of phone calls rate is currently N11 per minute, a %0% increase will push the rate to N17.6 per minute.

SMS:

Text message rates are expected to rise to N6.4 per SMS, an increase from the present rate of N4

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Why the Increase?

MTN and Airtel executives have explained the need for the increase, highlighting the numerous challenges faced by the telecom industry.

For Karl Toriola, CEO of MTN Nigeria, the increase is necessary as the sector is grappling with sustainability challenges, warning that failure to adjust tariffs could jeopardize the industry’s survival.

His words:

“The costs we are expending are exceeding our revenue even though we are seeing revenue growth.

"There is no way the industry can continue to sustain itself and provide the required quality service under this structure.”

Dinesh Balsingh, Airtel Nigeria's Chief Executive Officer shared same opinion as rising operational costs and inflationary pressures in the last 24 months.

His words:

“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities.”

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MTN, Airtel, others earn N5trn in revenue

Legit.ng earlier reported that telcos operating in Nigeria made N5.3 trillion in revenue from services like voice and data in 2023.

This was due to a rise in telecom subscriptions, which reached 224 million in 2023, up from 222 million the year before.

The Nigerian Communications Commission (NCC) shared this information in its 2023 year-end report titled “2023 Subscriber/Network Performance Report.”

Source: Legit.ng