Telcos lament, seek tariff increase

Mobile Network Operators (MNOs) and Telecommunication Companies (Telcos) in Nigeria have bemoaned the interference of Nigerian Communications Commission’s (NCC) in the fixing of prices for service providers in the industry saying this could threaten the industry’s sustainability and erode investors’ confidence

Consequently, the group called for regulatory neutrality and independence which they described as being crucial to ensuring a thriving telecommunications sector.

The Nigerian Communications Commission (NCC) regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval.

Reacting to this while calling for a tariff increase after 11 years, the group under the aegis of the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) in a joint statement lamented that they remain the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.

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They blamed the inability to increase tariff on the regulatory restraints that have been preventing them from pricing appropriately.

“For a fully liberalized 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.

“ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.”

In the statement signed by the Chairman of ALTON, Engr. Gbenga Adebayo, and the President of ATCON, Engr. Tony Izuagbe Emoekpere, the telcos said:

“ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades”.

By: Babajide Okeowo

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