Call, Data Rates to Increase as MTN, Airtel, Glo, Others Push For Tariff Hike

• Telecommunication operators in Nigeria have sought approval for new pricing for calls, data, and SMS
• Two prominent associations, ALTON and ATCON, maintained that the current pricing is not sustainable
• The telcos also lamented being burdened by huge multiple taxes and levies they pay across the country

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Telecom operators, represented by the Association of Licensed Telecom Companies of Nigeria (ALTON) and the Association of Telecom Companies of Nigeria (ATCON) have called for a tariff that reflects the actual cost of services.

The call is subsequent to earlier calls by ALTON for the federal government through the regulatory agencies to consider tariff increases for calls and data.

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According to The Nation, the groups released a joint statement appealing to the Federal Government to safeguard telecom infrastructure from deliberate vandalism and theft.

Legit.ng is aware that the current telecommunications companies operating in Nigeria include MTN, Airtel, Globacom Limited, Broad-Based Communications Limited, 9Mobile, Main One Service Company Limited, Fiberone Broadband Limited, and others.

As stated in the joint announcement, the associations emphasized that the development of telecommunications infrastructure necessitates significant investments in network expansion, maintenance, and technology upgrades.

The statement partly read:

“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.

“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."

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They, therefore, urged the government to initiate a constructive dialogue with industry stakeholders to tackle pricing challenges and create a framework that balances consumers' affordability with operators' financial sustainability.

Both associations expressed concerns over various challenges in the sector, such as multiple taxation and regulations, high Right of Way (RoW) charges, insufficient electricity supply, and vandalism of telecommunications infrastructure.

Analysis by Legit.ng showed that telecommunication companies spent about N429.43 billion buying diesel to fuel their communication base stations across the country in 2023.

It would be recalled earlier calls for tariff increase had been met with resistance from Nigerians through the National Association of Telecommunications Subscribers (NATCOMS).

Nigerians resist plan to hike data, voice call

Nigerian telecommunication operators' proposal to increase tariffs for data and voice calls seems to have stirred dissatisfaction among Nigerians.

They caution that any attempt to exacerbate their financial burden will be met with resistance.

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Chinasa Nwankwo, a telecom user, expressed to Legit.ng that Nigerians are already facing financial challenges, and any additional strain on their income could lead to impoverishment.

She said:

"The economic situation in Nigeria in the last year has been very terrible. Many people are finding it hard to make expenses on any other thing as almost 100% goes into food alone.

"If not that many people can not do with data and phone calls, they would have given up on their phones because of the already high tariff.

"It is definitely not a good time for the telecom companies to be advocating for a tariff increase."

Nwankwo, therefore, called on telecom operators to be more insensitive to the plight of Nigerians.

NCC reels out new guidelines to telcos

Meanwhile, Legit.ng earlier reported that the Nigerian Communications Commission (NCC) introduced fresh directives for telecom companies to enhance customer experiences and relationships.

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These new guidelines are designed to adhere to Section 57 of the NCC Act, which permits stakeholders to provide input on policy matters.

According to the NCC's official documentation, the regulator has requested telecom firms to ensure that customers are attended to within 30 minutes of their arrival at any of the company's service centres throughout Nigeria.

Source: Legit.ng