Telecom operators set to embark on price hike
By Ralph Tathagata
Nigerians may be witnessing yet another skyrocketing prices in the telecommunication sector as Mobile Network Operators (MNOs) conclude plans to review the current pricing scheme governing calls, short message service (SMS), and data services.
MNOs, in conjunction with other industry players under the Association of Licensed Telecoms Operators of Nigeria (ALTON), said that the present pricing scheme, considering the inflationary situation in the country, cannot be sustained.
According to the ALTON Chairman, Gbenga Adebayo, what the operators are charging is not sustainable and will negatively impact on the scale of service or the industry’s performance and service availability in a matter of time. The ALTON boss specifically stated that the operators are living on a borrowed time.
Mr. Adebayo made this call during the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023), which was held in Lagos. The event was organised by the Nigerian Communications Commission (NCC).
It would be recalled that, in 2022, ALTON and other telecom industry representatives petitioned the NCC, while seeking a 40% increase in the costs associated with calls, SMS, and data services. Also, in the year under mention, telecom operators proposed adjustments to the price floor for calls, suggesting a hike from N6.4 to N8.95, and an increase in the SMS price cap from N4 to N5.61.
Advocating that market forces should determine prices, Mr. Adebayo did not confirm an immediate tariff hike. He, however, hinted that a thorough review was in progress while stressing that the current rates within the sector cannot cope with the prevailing economic realities.
Meanwhile, further explanations were made on the financial impact of Nigeria’s economic downturn in 2020 and the ongoing Russian/Ukraine crisis, which resulted in a 35% surge in operational expenses due to skyrocketing energy costs.
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