Telecoms Operators Seek Increase In Tariff To Forestall Service Shedding.

 

December 30, 2024

The Association of Licensed Telecommunications Operators of Nigeria, ALTON, has said that its high time the sector increased tariff or members would start service shedding.

In a statement on Monday in Lagos, Chairman of ALTON, Mr Gbenga Adebayo, announced that the Nigerian telecommunications industry was experiencing critical challenges that needed to be addressed immediately.

He said that stagnant tariffs have put operators in disadvantage position due to rising operational costs.

Adebayo, stated that “As we reflect on the end of year 2024, there is a need to issue an urgent and critical call to action for the future of our telecommunications industry.

“The survival of the sector demands immediate and bold reform for its sustainability.

“Tariffs must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability.”

The ALTON boss, warned that sector might face grim consequences without tariff review as the operators would not be able to continue to guarantee service availability.

He envisaged service shedding, economic fallout, and national economic disruption as some of the consequences of nothing is done.

READ MORE; MTN Nigeria Renews Spectrum Lease With NTEL

Accordingly, service shedding would mean that operators may not be able to provide services in some areas and at some times of the day to the detriment of millions of Nigerians.

Adebayo also warned of national economic disruption, and implications on key sectors like security, commerce, healthcare, education that rely heavily on telecoms infrastructure.

He cited rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates as some of the challenges the sectors were confronted with.

While expressing confidence that stakeholders would come together to uphold the values and importance of telecommunications in the society, Adebayo noted that more needed to be done to secure the future of the industry and guarantee customers satisfaction

He urged the stakeholders to acknowledge the urgency of the situation and commit to saving the sector

“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.

“If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development.

Idris Buba
Idris Buba
Correspondent
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