Telcos admit revenue shortfalls, worry over sustainability of network services
By Ralph Tathagata
In response to allegations of implementing load shedding to control rising operational costs, Nigerian telecom companies have admitted experiencing revenue shortfalls.
Tony Emoekpere, the President of the Association of Telecommunications Companies of Nigeria (ATCON), noted that load-shedding might not accurately reflect the current situation.
“I am not aware if the telcos have commenced load-shedding, and I am not sure if it has been announced officially. None of the operators have made such announcements,” he said.
The ATCON president, while emphasising that the real challenge was not operational losses but the sustainability of network services, warned that operators face a mismatch between revenue and operational costs, citing that the real challenge was not just about operational losses but also the sustainability of network services.
“For instance, if a telecom company could afford to buy 3,000 litres of fuel last month but can only purchase 1,000 litres this month due to lower revenue, it may lead to reduced service levels. This is not a formal policy decision but a response to financial constraints,” he explained.
It would be recalled that the Association of Licensed Telecom Operators of Nigeria and ATCON had previously argued in April that current tariffs were insufficient due to rising diesel prices, inflation, and currency devaluation.
However, the operators who denied implementing load-shedding, acknowledged that current revenue levels were insufficient to sustain network operations.
They warned that without adjustments, the sustainability of the telecom sector was at risk, potentially impacting service quality and availability for consumers.
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