Nigerian telecommunication operators of recent stated that their services are overdue for price increments as they have not implemented any upward price review for the past 11 years.
According to them, in a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON) which represent Mobile Network Operators and telecommunication companies in Nigeria. The telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment. They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
To note is that Nigerian Communications Commission (NCC) have been regulating prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval. The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.
The joint statement signed by the Chairman of ALTON, Engr. Gbenga Adebayo, and the President of ATCON, Engr. Tony Izuagbe Emoekpere, read:
- “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 telecoms operators also implore the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry. As some of the challenges includes; multiple taxation and regulations and prohibitive Right of Way (ROW) charges, inadequate electric power supply, and vandalism of telecommunications infrastructure.
