Nigeria Telecommunication companies have initiated steps towards tariff increases and are calling on the federal government to facilitate constructive discussions on the matter.
The
companies argue that the current price regulation mechanism does not align with
economic realities and are urging government intervention to address pricing
challenges.
In
a joint statement by the Association of Licensed Telecommunications Operators
of Nigeria (ALTON) and the Association of Telecommunication Companies of
Nigeria (ATCON), the telecom firms emphasized their unique position as the only
sector yet to adjust prices, highlighting concerns about industry
sustainability and potential erosion of investor confidence.
ALTON
Chairman, Mr. Gbenga Adebayo, and ATCON President, Mr. Tony Emoekpere, in the
the statement noted the absence of a general upward service pricing framework
for the past 11 years.
The
statement read in parts, “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.
“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.
“Government
needs 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
telcos also expressed concerns on the worsening security challenges affecting
the productivity of the services provided, urging the federal government erect
measures to tackle the menace.
“Telecom
infrastructure undisputedly plays a pivotal role in Nigeria’s national security
and socioeconomic growth, especially as the country currently contends with
multiple security challenges that require urgent and immediate actions in
response to these threats.
“Attacks
on cell towers, fibre optic cables, and other critical assets disrupt
telecommunications services and result in significant financial losses for
operators. We urge the government to prioritise the security of
telecommunications infrastructure and collaborate with law enforcement agencies
to enhance protection measures and combat vandalism and sabotage effectively.
“The
industry also requires substantial investments in network expansion,
maintenance, and technology upgrades,” the statement added.
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