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Telcos renew push for telecom tariff hike

Telecom operators have renewed push for end user tariff hike to reflect the cost of doing business in the country.

The operators acting under the aegis of Association of Licensed Telecom Companies of Nigeria (ALTON) and Association of Telecom Companies of Nigeria (ATCON) in a joint statement also urged the Federal Government to protect telecom infrastructure against willful vandalism and theft.

The operators asked for what they described as cost-reflective tariff of services.

“ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades. 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 operators said.

On infrastructure deficits, ALTON and ATCON said their members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

The groups sought the protection of assets and network infrastructure and urged the Federal Government for legislation that designates telecommunications infrastructure as Critical National Infrastructure (CNI).

“Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria. Telecommunications 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.

“The associations urge the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively,” they said.

On regulatory independence, ALTON and ATCON advocate for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission (NCC’s) domain, which will inspire trust in the telecommunications sector and encourage investment.

“Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. 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.

“We reaffirm our commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria. By fostering a conducive regulatory environment, prioritizing 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 joint statement said.