Some of the Telecom operators in Nigeria said they may stop offering some services in some parts of the country next year if the Nigerian Communications Commission (NCC) does not consider their demand to review tariff.
The operators under the aegis of the Association of Licensed Telecom operators of Nigeria (ALTON) made this known in a statement issued by its chairman, Engr. Gbenga Adebayo, on Monday.
As it stands, Adebayo opined that for telecom sector to survive, there is the need for the industry to undergo a drastic change that is possible if tariffs are adjusted to meet the economic cost of delivering telecom services at minimum for sustainability.
If nothing is done, we might begin to see in the new year grim consequences unfolding, such as Service Shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic Fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.
“There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” Adebayo said.
Telecom industry is under heavy burden.
Pointing out that without the tariff review, operators cannot go on to assure service availability any further, the ALTON Chairman said that although the challenges that the telcos are facing are not novel, they have worsened and have become more menacing with the latest year.
He said that increasing operation costs, steep energy costs, constant inflation pressures, fluctuating exchange rates and the like have all put unbearable pressure on the network operators.
According to Adebayo, while these pressures compound, tariffs have been frozen and operators are caught in a revenue vortex.As per him, the resources to maintain let alone expand and modernize telecom networks are no more available and going without help, “the future of this sector is in a great danger”.new, they have become more acute and more threatening with this passing year.
He noted that rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates, amongst others, have all placed an unsustainable burden on network operators.
Adebayo added that despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.
According to him, the resources needed to maintain, expand, and modernize telecom networks are no longer available and without intervention, “the future of this sector is at grave risk.”
Keeping the sector afloat
The ALTON Chairman noted that stakeholders have done their best over the years to sustain the sector by upholding the values and importance of telecommunications in society.
“However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.
Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector,” he said.
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Backstory
Due to the increasing costs, telecom operators in Nigeria have since last year been clamouring for an increase in tariffs.
In a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), the operators said the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.
- They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
- 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.
- The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.
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