Telcos Hint At Price Increment For Data And Voice Services

Telecommunications operators in Nigeria have stated that they have not increased their service rates for over 11 years and are overdue for price increments.

Gatekeepers News reports that the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) jointly released a statement on Thursday, highlighting that the telecommunications sector is the only industry that has not reviewed its prices despite the country’s rising inflation rate and other economic realities that warrant increment.

They have attributed the delay in price increments to regulatory limitations that prevent them from setting prices appropriately.

“ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades,” the statement reads.

“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.”

Furthermore, the operators called for government action to address telecommunications industry challenges such as taxation, regulations, right of way (RoW), charges, inadequate power supply, and infrastructure vandalism.

They also asked the government to implement legislation that designates telecommunications infrastructure as critical national infrastructure.

“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,” the associations said.

“Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.”

They urged the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to strengthen security protocols and successfully resist sabotage and vandalism.