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Tag: Telecom tariff hike

  • 50% telecom tariff hike alters subscribers’ lifestyle

    50% telecom tariff hike alters subscribers’ lifestyle

    About eight months into the implementation of the 50 per cent tariff adjustment to telecom end user services approved by the Nigerian Communications Commission (NCC), subscribers say the development has compelled them to make adjustments in their lifestyle.

    In spite of stiff opposition by subscriber bodies and the organized labour, NCC in a January 20, 2025 statement said it granted the tariff adjustment approval “pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

    “The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”

    Subscribers who shared their experiences over the last seven or eight months ago, said it has not been palatable especially when the improved service quality which the approval was tied to remained elusive. While some subscribers switch off their mobile phones’ data, others said they reduced their appetite for data. Others said they have stopped making frivolous calls and rely on calls made via Over-The-Top (OTT) digital media service that delivers content directly to users over the internet, bypassing traditional distribution methods like cable or satellite television.

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    Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), said it has not been easy as some of its members have had to triple their spend on data and voice calls.

    President, Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), Sina Bilesanmi, said telecom has become an indispensable part of modern life because it has demolished all the fetters that come with distance.

    He said: “It has not been easy but we acquiesced to the hike because we chose industry survival over personal self-aggrandizement. We chose national interest because any disruption to the sector will affect the economy, including national security.”

    But be that as it may, we have been making adjustments to our life style. As you know, data has become the engine of life. So we are more affected by the increase in data prices”.

    According to him, his members have worn their thinking caps, deleting apps that do nothing but quietly suck data.  “We now apply this aphorism: cut your coat according to your size. We now cut our cloth according to our sizes by reducing our data consumption. Those of us previously doing N5,000 monthly now do N2000. For instance, I now do N800 for two days,” he said.

    Another subscriber, Agnes Ojo, said she switches off her data when she is going to bed at night. “In the morning, I switch my data on to read my WhatsApp chats, check my email and go through what is trending on Facebook. After that, I will switch it off again when I want to set out for work. I will switch it on again when I am on break to check if there are important messages waiting for my attention,” she said.

    A spare parts dealer, Chika Okoro said he buys data not only to check mails and his social media accounts but also to make voice calls. “Though I have not confirmed if it’s cheaper than making normal voice calls, but my first call options are WhatsApp and Facebook Messenger,” he said.

    While the experiences above were shared by individual users, it might not be the same with corporates and content creators that rely solely on data to do ply their trade. Interestingly, the telcos have posted impressive results with data accounting for a significant share of their cash receipts.

    For MTN Nigeria’s half year result for 2025, data revenue rose by 68.5per cent, supported by growth in the active user base, higher data traffic and price adjustments. Data traffic grew by 41.2per cent, while the average usage per subscriber increased by 26.3per cent YoY to 13.2GB.

    MTN Nigeria added approximately 3.7 million smartphones to the network in H1, raising smartphone penetration to 62.6per cent, up 4.3pp from December 2024.

    Voice revenue increased by 39.9per cent, driven by a growing subscriber base, price adjustments and the continued focus on CVM initiatives. These factors helped sustain momentum in the voice segment despite a Nigerian industry-wide directive limiting third-party agents to one subscriber identity module (SIM) registration per customer.

    According to Airtel Africa Plc 2025 annual report, the carrier’s data usage surged by 47.5per cent driven by increased smartphone penetration and data bundle adoption. MyAirtel app usage grew significantly, with 7.1 million customers.

    The MNO said it expanded its network infrastructure, adding approximately 2,600 infrastructure sites and 3,300 km of fibre. 4G coverage reached 74.4per cent of the population. The company’s mobile money customer base grew by 17.3per cent to 44.6 million, driving a 32per cent increase in transaction value (in constant currency) to $136billion.

    Some subscribers were ostensibly still living in the pre-50 per cent tariff adjustment era 5G roll out, had complained bitterly of data depletion. Many had had accused the MNOs of “brazenly stealing> their data.

    Worried by the barrage of complaints, NCC said it carried out survey which showed that the MNOs weren’t guilty as charged.

    Director, Consumer Affairs, NCC, Freda Bruce-Bunnet, in an email note shared with our reporter, titled Data Management Tips, said smartphone users must stop the use of auto play in social media platforms such as Instagram, Tok-Tok, Reddit, and Facebook and X former Twitter.

    The other tips are: Block malwares which drain your data; Choose data usage prioritisation and avoid binge watching; Disable background data usage; Eradicate annoying Ads with 3rd party Ad blockers; Favour low data versions of apps, eg Facebook Lite, YouTube Go, Opera Mini; Go to WiFi for iCloud Drive and backup, Android, IOS, and WhatsApp backup; Hide your location in settings; and Implement passwords protection. Restrict hotspot usage and know who is using your data.

    Others are jettisoning automatic downloads of status updates on Facebook, Instagram, WhatsApp; Know your usage appetite. Track pattern. Use an App on your Providers website; Limit and delete unused Apps; Migrate to data saving mode: Android /iPhone. Setting. Mobile service. Choose the phone number. Choose lower data mode; NO to automatic app status updates; Observe use of Offline downloads to view music/video, Google maps, and watch repeatedly; Promote the use of built-in phone data usage trackers. 1. Mobile service. Reset Statistics. Promote the use of usage alerts. 2. Apps. Settings. Internet. Carrier. Data warning and limit. And select the limit; Query data service terms. 30 days is only with responsible usage. Not a lifetime guarantee; Remove or reduce phone notifications; Stream affordably using SD not HD. Facebook, Instagram, Netflix, Reddit, Spotify etc. are data hogs;  the technology you use (4G, 5G) affect your data consumption; and use WiFi for downloads, app updates; Options are off, mobile and wifi or WiFi.

    Other tips include data plans verification. Know MNO plans, promos, bundles and choose the best; Watch for unintentional overuse; x-ray, minimize use and roll over some of your data; yank off mobile data usage when not needed; and eschew the use of archaic phones.

  • Telecom tariff hike necessary to save jobs, says Tijani

    Telecom tariff hike necessary to save jobs, says Tijani

    A 50 per cent telecom tariff hike was necessary to save job losses from companies collapse, Minister of Communications and Digital Economy, Dr. Bosun Tijani, said yesterday.

    He explained that the government carefully considered the decision given the critical role the telecom sector plays in the economy.

    The minister noted that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.

    Speaking with reporters at the State House, Abuja, Tijani said: “If we chose not to allow the increase in tariff, we would be at the risk of losing jobs, as some of these companies could pack up, and when you weigh that, it’s also not the best thing for the economy.”

    He noted that the tariff increase request had been pending before the current administration, but that President Bola Ahmed Tinubu insisted on a thorough evaluation.

    “This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions.

    “Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike,” he said.

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    To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.

    Tijani also emphasised that beyond affordability, the government is prioritising “meaningful access” to telecommunications services.

    This, he said, meant ensuring not just connectivity but also quality service delivery.

    “The NCC has been working to shift the focus not just to quality of service but to quality of experience.

    “Now that the MNOs (mobile network operators) have the opportunity to increase tariffs, they must ensure that quality remains a priority”, he stated.

    To support this goal, Tijani highlighted the government’s ongoing investments in telecommunications infrastructure.

    These include the expansion of Nigeria’s fibre-optic network by 90,000 kilometres and the approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.

    The minister reiterated that while the private sector must continue investing in the industry, the government was also stepping in to ensure Nigeria achieves universal and high-quality connectivity.

  • Telecom tariff hike necessary to save jobs, economy – Tijani 

    Telecom tariff hike necessary to save jobs, economy – Tijani 

    The federal government has defended its decision to approve a 50% tariff increase for telecommunications services, stating that failure to do so could have led to job losses and the collapse of some companies in the sector.

    Minister of Communications and Digital Economy, Dr. Bosun Tijani, made this clarification on Thursday while addressing journalists at the State House, Abuja.

    “If we chose not to allow the increase in tariff, we would be at the risk of losing jobs, as some of these companies could pack up, and when you weigh that, it’s also not the best thing for the economy,” the minister said.

    Tijani explained that the government had carefully considered the decision, given the critical role the telecom sector plays in the country’s economy, noting that the sector, including its entire value chain, employs nearly half a million Nigerians, making it a significant contributor to national development.

    He noted that the tariff increase request had been pending before the current administration took office, but President Bola Ahmed Tinubu had insisted on a thorough evaluation before approving any adjustments.

    “This is a government that is extremely conscious of the state of the economy, and Mr. President consistently takes into consideration each and every citizen before making decisions. Some of these decisions are difficult, but we have to balance the interests of individuals and businesses alike”, he said. 

    To determine the optimal rate for the adjustment, the government commissioned a study led by KPMG, which provided insights into the most sustainable tariff increase.

    Tijani also emphasized that beyond affordability, the government is prioritizing “meaningful access” to telecommunications services, explaining that this meant ensuring not just connectivity but also quality service delivery.

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    “The NCC has been working to shift the focus not just to quality of service but to quality of experience. Now that the MNOs have the opportunity to increase tariffs, they must ensure that quality remains a priority”, he stated.

    To support this goal, Tijani highlighted the government’s ongoing investments in telecommunications infrastructure. 

    These include the expansion of Nigeria’s fiber-optic network by 90,000 kilometers and the recent approval by the Executive Council for the construction of 7,000 additional telecom towers in rural areas.

    The minister reiterated that while the private sector must continue investing in the industry, the government is also stepping in to ensure Nigeria achieves universal and high-quality connectivity.

  • Major factors behind telecom tariff hike

    Major factors behind telecom tariff hike

    It’s no longer news that the various telecommunication companies have increased their Tariff rates across all services including,calls,text messages and data usage.

    The recent tariff hike among telecom companies has posed a significant burden on consumers, who are already battling with inflations, security insurgencies and economic uncertainty.

    Below, according to MTN CEO, are reasons for the hike in Tariff:

    1. Rising operational costs: Telecom companies have been struggling with significant increases in operational costs, which have had an impact on their revenue generation.

    A typical example is the cost of energy supply, the cost of diesel has skyrocketed from it’s initial N200/N300 per litre to N1,200 per litre. According to the CEO of MTN Karl Toriola, telecommunication industries cannot survive without the increase in Tariff.

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    2. Devaluation of Naira: The devaluation of the Naira has had significant implications on the telecom companies in Nigeria. The decline in the value of Naira against dollar has more or less influenced the purchasing power of the companies,hence making foreign purchases expensive.

    Also the importation and maintenance of equipments and facilities cost,has left the companies no other choice than increase it’s Tarrif.

    3. Human Resources: Another major reason why Telecom companies might have increased their Tarrif rate is Human Labour. The company in order to stay functional would require human labour and inorder to attain that most pay salaries. In a situation where the companies are spending more money than they’re generating, the possibility of owing staffs comes in 

    These factors have cumulatively led to the telecom tariff hike, as companies strive to maintain sustainability and continue providing quality services.

    While on an interview with the Naija Info FM 99.3 FM,the MTN CEO,Karl Toriola said: “The thing is, the Telecommunication industries cannot survive without the Tarrif increase, it’s called maybe more complex sustainability, but honestly it’s just about survival.

    “Everyone in the Telecommunication industry is probably spending more than they’re earning, and this can only go on for so long before the companies and the network connectivity systems starts to collapse,so that’s why it’s an absolute necessity.

    “Why has this happened? Because everything in Nigeria in terms of cost to the telecommunication industry has gone up multiple folds, generally between three and five times to what it was before. So while our top line revenue is growing at approximately 30% in 2024, our cost has increased to 96%.”

  • GSMA lauds NCC telecom tariff hike

    GSMA lauds NCC telecom tariff hike

    A global advocate for sustainable policy reforms in the telecommunications sector, GSMA has welcomed the 50 percent telecom tariff hike by the Nigerian Communications Commission (NCC).

    The Nation reports NCC approved a 50% tariff increase for mobile network operators, marking a pivotal moment in Nigeria’s digital transformation.

    This decision, the first tariff adjustment in 12 years, is set to unlock substantial investment in telecommunications infrastructure, increasing 4G coverage to 94% of the population and enabling mobile internet access for an additional 9 million people, with 2 million people in underserved areas.

    In a statement, it said: “The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, welcomes this decision as a major step forward for consumers and the economy.

    “By enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture.”

    Angela Wamola, Head of Sub-Saharan Africa at GSMA, commented on the development: “This decision by the NCC is an important milestone for Nigeria’s digital future. By enabling sustainable investment, we are improving the quality of service for consumers and fostering opportunities for innovation and economic growth.

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    “However, to fully unlock the potential of this reform, it is critical to implement additional measures such as simplifying Right of Way permits, implementing a Critical National Infrastructure plan, and reducing the mobile sector’s tax burden. These steps will be essential to accelerate digital adoption across sectors.

    “It is estimated that increased digitalisation in agriculture, manufacturing, transport, trade, and the government will increase GDP by around two percentage points by 2028. This would also create nearly 2 million jobs and raise an additional NGN 1.6 trillion in tax revenue.

    “The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the baseline 90% to 94% of the population. This improvement will benefit around 9 million people, with nearly 2 million expected to gain access to mobile internet services based on current adoption levels in rural areas, according to GSMA Intelligence.

    “This milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion. By advocating for policies that balance affordability with the need for sustained investment in infrastructure, the GSMA has played a critical role in ensuring the benefits of mobile connectivity are accessible to all Nigerians.

    “Improved network coverage will enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools. Additionally, the investment will drive the adoption of next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), which are essential for advancing innovation across sectors like precision agriculture, connected transportation, and smart healthcare. By fostering the adoption of these technologies, Nigeria is positioning itself as a leader in Africa’s digital economy.

    “While the tariff increase is a significant step forward, the GSMA calls for further policy actions to amplify its impact. These priorities, outlined in the recent GSMA report The Role of Mobile Technology in Driving the Digital Economy in Nigeria, include:

    “Streamlining Right of Way (RoW) permits: Simplify and standardise the process to accelerate infrastructure deployment.

    “Implementing Critical National Infrastructure (CNI) legislation: Safeguard essential telecommunications assets to ensure resilience and reliability.

    “Reducing the tax burden on the mobile sector: Address high taxation to encourage further investment in infrastructure.

    “These recommendations are based on successes in other Sub-Saharan African markets, such as Kenya and South Africa, where similar policy reforms have proven effective in driving digital inclusion and fostering economic growth.

    “The GSMA remains committed to supporting the government, regulators, and industry stakeholders to implement these measures.”

  • Concerned citizens forum defends NCC over telecom tariff hike

    Concerned citizens forum defends NCC over telecom tariff hike

    The Concerned Citizens Forum (CCF) has expressed support for the Nigerian Communications Commission (NCC) in the wake of public backlash over the recent adjustments in telecommunications tariffs by network operators. 

    Speaking at a briefing in Abuja, the National President of the group, Opialu Fabian, 

     described the tariff adjustments as a necessary step to sustain the telecom sector and safeguard its long-term viability.

    The CCF clarified misconceptions about the NCC’s role in the tariff increase, emphasising that the commission acted in accordance with its statutory mandate under the Nigerian Communications Act of 2003. 

    According to the group, the NCC is tasked with regulating tariffs to balance the interests of telecom operators, consumers, and the industry at large.

    “The NCC’s primary obligation is to establish a sustainable telecommunications environment that encourages innovation, inclusion, and consumer protection. The tariff adjustment aligns with these goals,” the group said.

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    The CCF highlighted the economic pressures facing telecom operators, including inflation, naira devaluation, surging energy costs, and rising expenses for imported telecom equipment. 

    The group noted that despite these challenges, telecom tariffs in Nigeria had remained unchanged since 2013.

    “In light of these financial strains, the NCC approved a modest adjustment capped at 50%, significantly lower than the over 100% increment initially requested by operators,” the forum explained.

    The CCF argued that the tariff adjustment was critical to ensuring operators’ financial stability, which would enable them to improve infrastructure, enhance service quality, and expand network coverage to underserved and rural areas.

    The forum stressed that the adjustments were not solely to address operators’ challenges but also to benefit consumers and support Nigeria’s digital economy. Improved service quality, greater network reliability, and increased connectivity in rural areas were cited as some of the expected outcomes.

    “Consumers will enjoy better value for their money, while operators will have the resources to invest in critical infrastructure and innovation,” the CCF noted.

    The group also commended the NCC’s efforts to ensure transparency by requiring operators to educate the public about the new rates and offer affordable service plans tailored to different income levels.

    The CCF pointed out that tariff adjustments are a standard regulatory practice globally to reflect market realities and sustain industry growth. It lauded the NCC for aligning Nigeria’s telecom industry with international best practices, strengthening the country’s position in the global telecommunications landscape.

    “The NCC’s focus on supporting local suppliers and fostering economic opportunities for Nigerians aligns with national goals of self-reliance and economic growth,” the forum added.

    The forum also commended President Bola Ahmed Tinubu’s administration for commitment to economic reforms and digital inclusivity, which have created an enabling environment for the telecom sector to thrive.

    “The NCC’s decision to approve the tariff adjustments aligns with the administration’s broader objectives of driving economic growth and innovation,” the CCF said.

    The group called on all stakeholders, including operators, consumers, and the media, to support the NCC in its efforts to build a robust and inclusive telecommunications ecosystem.

    The Concerned Citizens Forum also commended the NCC for its leadership and patriotic commitment to ensuring the sustainability of Nigeria’s telecommunications sector.

    “The recent tariff adjustments represent a balanced approach that considers the interests of operators, consumers, and the economy. Together, we can build a stronger, more inclusive telecommunications sector that will drive national development,” the forum stated. 

  • Group backs 50% telecom tariff hike, calls for improved services

    Group backs 50% telecom tariff hike, calls for improved services

    The Arewa Youth Assembly has backed the recently approved 50 percent hike in telecommunication tariffs by the Nigeria Communications Commission (NCC).

    The group stated that it was also an opportunity for the sector’s regulator to insist on fairness, transparency, and accountability in the telecommunications sector.

    The group said the move will open up the sector for robust growth and investment.

    In a statement signed by the Speaker of the Arewa Youth Assembly, Mohammed Salihu Danlami, the group stated that the increase in telecommunication tariffs was long overdue and has become necessary.

    The group also called on telecommunication operators to use the proceeds of the adjusted tariff prices to immediately invest in improving services.

    According to the group, the support of most Nigerians for the tariff adjustment was on the condition that service quality would be improved.

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    It also called for calm and understanding from Nigerians, noting that they expect improved growth in the telecom sector, greater protection of customers, improved efficiency of telecom services and ultimately the sustainability of Nigeria’s telecommunication sector. 

    It said: “The telecommunication sector, which employs millions of Nigerians directly and is responsible for powering other sectors of the country, is the only sector that has maintained the status quo in terms of the price of its services despite the skyrocketing of the prices of basic requirements for its operations, such as diesel, power, and even manpower costs.

    “The industry was near the point of collapse. The global rise in inflation and rise in the cost of its operation, coupled with foreign exchange high costs plus increased network maintenance expenses, was rendering telecommunication companies ineffective in delivering services to Nigerians.

    “No serious regulator that understands the need for prices to be market reflective would have folded its arms to allow such a collapse.”

    The group explained that the tariff adjustment was a fundamental decision that had to be taken to preserve the industry and its impact on the wider economy, noting that “everything in Nigeria today depends on telecoms, whether it is healthcare, education, corporate businesses, and even the government.”

    It said tariffs needed to be increased to ensure that the industry was made stronger and that service could be improved.

    The statement added: “Furthermore, this tariff adjustment will help the operators to purchase new equipment to enhance the country’s telecommunication infrastructure. It would also re-energise the sector in a way that would lead to a surge in investments. This will ultimately translate to improved network quality, expanded access, and a better experience for consumers. We at the Arewa Youth Assembly are hopeful that the sector will grow beyond expectations, creating more opportunities for our people to get jobs in telecoms.

    “It is ironic that those complaining of tariff increase are the same ones who are complaining of poor service delivery. They are unaware that telecommunication companies cannot improve their infrastructure to meet growing demand without having cost-reflective prices. To address Quality of Service problems, they need a new injection of funds.”

  • Why telecom tariff hike won’t be 100 percent, by FG

    Why telecom tariff hike won’t be 100 percent, by FG

    The federal government has hinted that a telecom tariff hike is imminent to stimulate growth and investment in the nation’s telecommunications industry.

    The government, however, insisted that the hike would not be by 100 percent as being advocated by operators.

    The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, disclosed this in Abuja on Wednesday after a marathon meeting with stakeholders and the regulatory body.

    Dr Tijani, who met with representatives of Mobile Network Operators (MNOs) alongside the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Wada Maida, insisted that the increase would not be 100 per cent as being pushed by the operators at the moment.

    The Minister maintained that consultations and engagements were ongoing on the matter, noting that “very soon the Nigerian Communications Commission (NCC), would approve the new tariffs and make it public to Nigerians.”

    He said: “You have seen over the past weeks that there has been agitation from some of these companies to increase tariff. They are requesting for 100 per cent tariff increase.

    “But it will not be by 100 per cent. We are still looking at that study and NCC will come up with a clear directive on how we will go about it.

    “We want to strike the balance as a government to protect our people, but also protect and ensure that these companies can continue to invest significantly.

    “We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector.”

    Speaking further on developments in the telecom sector, Dr Tijani said the Federal Government would no longer leave investments in infrastructure in the sector to private companies alone.

    “As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.

    “We will not want this conversation to just be about tariff increase. I think what the world is talking about today is meaningful connectivity.

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    “You want to have access to very good quality service.

    “A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he said.

    In his remarks, the Executive Vice-Chairman (EVC), of the NCC, Dr Maida stated that the meeting with stakeholders was about the sustainability of the industry.

    He said: “We have looked at all of these factors, and that is why, like the Minister said, it is not likely that we are going to approve 100 per cent tariff increase.

    “I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two.”

    According to Dr Maida, the NCC had over the years put a number of tools and instruments into place by revising its quality of service regulations for compliance service quality.

    He said it had now become imperative for the MNOs to comply with directives to simplify their tariff templates to show Nigerians’ charges per minute for voice calls, SMS and a megabyte of data.

    “We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate.

    “It makes it often complicated for Nigerians to actually understand what they are being charged for.

    “So this is one of the things when we took a lot of time over the past year looking at data there is this agitation that the MNOs are stealing our data,” he said.

    Also, the Chief Executive Officer (CEO) of Airtel Nigeria, Mr Dinesh Balsingh, stated that for the telecom’s commitment to delivering superior connectivity and fostering digital inclusion, tariff increments have become necessary.

    Balsingh who was represented by Mr Femi Adeniran, Airtel Spokesman said: “The economic realities of rising operational and capital costs, necessitated the proposed tariff adjustments.”

    “This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he argued. 

  • Telecom tariff hike divides subscriber bodies

    Telecom tariff hike divides subscriber bodies

    Two subscriber bodies, the National Association of Telecommunications Subscribers (NATCOMS) and the Association of Telephone, Cable Tv and Internet Subscribers of Nigeria (ATCIS-Nigeria) are at loggerheads over the push by mobile network operators (MNOs) to persuade the Federal Government to accede to hike end user tariffs of their services.

     The MNOs have never given up on calls for an upward tariff review in a move to offset the soaring costs of operation and declining investments in the telecom sector which the National Bureau of Statistics (NBS) said was approximately a 70.5 per cent decline to $134m in 2023 from $456.8million in the corresponding year, a decline of $322million.

     While NTACOMs has urged the sector’s regulatory body, the Nigerian Communications Commission (NCC), to approve a 10 per cent tariff hike for the telcos, ATCIS-Nigeria has insisted on improved service quality and proper engagement with the subscribers first before any discussion for tariff hike. 

     NATCOMS President, Adeolu Ogunbanjo, in a telephone conversation, had argued that a hike had become long overdue in the light of the roller-coaster drive the economy has been subjected to over the years.

     Like ATCIS-Nigeria, Ogunbanjo acknowledged the worsening quality of telecom services, blaming it on the current economic climate which he said made it increasingly difficult for them to maintain standards.

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     “Telecom services have significantly declined in quality, and operators are facing mounting pressures,” Ogunbanjo said.

     He noted that, despite increased operational expenditures over the last 11 years, there has been no matching increase in service tariffs.

     This lack of adjustment has left telecom businesses in a risky financial situation, necessitating collaboration among stakeholders to find a sustainable solution.

     ATCIS-Nigeria President, Sina Bilesanmi, expressed concern over service quality, a development which he said needed to be addressed before the MNOs started rail-roading tariff hike into the throats of the subscribers.

     According to him, he has been inundated with complaints about persistent and inexplicable data depletion by members of the group, strengthening the belief that the telcos may have secretly unilaterally increased service charges.

     He said: “We are against any tariff hike at this time because it will increase the yoke on the frail necks of our members. Instead of playing to the gallery, the telcos should engage the subscribers in a town hall. Let them carry the subscribers along so that there will be a sense of belonging. The ultimate incidence of tariff hike will inevitably fall on the subscribers. If this is a settled truth, why are you not carrying them along?

     “Let the MNOs be more open and transparent. We acknowledge the difficulties in the operating environment but we insist that the consumer is king and should be given an audience too.”

     For the past few months, Nigerian telecom companies have been advocating for an increase in telecom tariffs and canvassing for policies they feel will benefit them and boost their capacity to invest in networks for expansion.

    MTN Nigeria CEO, Karl Toriola, said the sector was already in an intensive care unit (ICU) gasping for breath, warning that if urgent steps were not taken, all the gains of the now famous telecom revolution will be wiped off.

     He also warned of the likelihood of a return to the inglorious era of NITEL characterized largely by inefficiency.

     He said all the telcos have been posting losses, a statement that could easily be confirmed by going through the companies’ books (especially MTN Nigeria and Airtel Nigeria) shared with the Nigeria Exchange as publicly listed business entities.

     In August, the telcos threatened to stop services, and implemented a load-shedding schedule due to budgetary constraints.

     This demand comes after 11 years of stability in tariffs, during which the industry has faced significant increases in operational costs (opex) and investments in network expansion and upgrades.

     The telcos had in a joint statement through its industry focused pressure group, Association of Licensed Telecom Companies of Nigeria (ALTON)  and the Association of Telecom Companies of Nigeria (ATCON) sought regulatory approval to hike tariffs.

     The associations called on the Federal 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.

     According to the group, this will assist to reduce the sector’s escalating opex, which has been a long-standing issue.

     “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,” part of the statement read.

     The groups expressed worries over the spate of wilful infrastructure vandalism and theft and other challenges mitigating the growth of the sector.

     They had requested the protection of assets and network infrastructure and urged the Federal Government to pass legislation that designates telecommunications infrastructure as critical national infrastructure.

      “Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecom services and result in significant financial losses for operators,” telcos lamented.

     On infrastructure deficits, ALTON and ATCON said members still lack access to essential telecom services due to a myriad of challenges, including multiple taxation and regulations, prohibitive right-of-way charges, inadequate electric power supply, and vandalism of telecommunications infrastructure.

     ALTON and ATCON demanded the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into NCC’s domain, which will inspire trust in the telecommunications sector and encourage investment.

     Further, the group said regulatory neutrality and independence were crucial to ensuring a thriving telecommunications sector.

     They reaffirmed commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

     “By fostering a conducive regulatory environment, prioritising infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development,” the associations said.

     While the regulator acknowledged the difficult environment, it nonetheless believes the campaign of the telcos is but a cheap blackmail to justify a pricing increase..