Leading telecom operators, including MTN, Airtel, and Globacom, are contemplating adjustments to their tariffs to better mirror the current economic climate.
In a recent statement issued by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), the industry leaders expressed the need for government intervention to tackle the myriad of issues facing the telecom sector.
“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 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,” the statement partly read.
The statement, endorsed by ALTON Chairman Gbenga Adebayo and ATCON President Tony Emoekpere, emphasized the significant financial commitment required for the development of telecom infrastructure, which encompasses network expansion, ongoing maintenance, and technological advancements.
The telecom industry has not increased its service pricing in over a decade, a situation attributed to regulatory limitations. This stagnation, according to the statement, poses a risk to the sector’s long-term health and could undermine investor confidence.
ALTON and ATCON are urging the government to engage in meaningful discussions with industry players to devise a pricing strategy that considers both consumer affordability and the economic sustainability of operators.
The statement also highlighted the importance of the Nigerian Communications Commission (NCC) maintaining its neutrality and independence to foster a robust telecom environment.
“Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.
