Airtel, MTN Nigeria back tariff review, cite high operations costs
By Ralph Tathagata
Airtel Nigeria and MTN Nigeria have called for an upward review of tariffs in the telecom sector, citing over 300% operation cost.
Their recent call is coming on the heels of long-drawn-out advocacy for industry tariff review by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON).
Dinesh Balsingh, the Chief Executive Officer of the company, while stating this in an op-ed, said the adjustments are critical for maintaining high-quality services and enabling further advancements in Nigeria’s digital transformation journey.
“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone.
“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh said.
Recently at separate event, Karl Toriola, the Chief Executive Officer of MTN Nigeria, noted that telecom operators in Nigeria had requested an approximately 100% increase to ensure the industry’s sustainability rather than boost short-term profitability.
He specifically stated that the country’s telecom industry is now facing a sustainability threat that must be addressed through a tariff review.
Toriola, however, noted that the telecom regulator, the Nigerian Communications Commission (NCC), may not approve the 100% increase requested.
“We’ve put forward a request of approximately 100% tariff increases to the regulators. I doubt they’re going to approve that quantum of increases because they’re very sensitive to the current economic situation in the country,” he said.
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