Telecoms operators in Nigeria are preparing to roll out new tariffs, reflecting the 50% hike approved by the Federal Government. The Nigerian Communications Commission (NCC) had initially stated that the 50% tariff hike would commence in February. However, telecoms operators have announced that the full introduction of the new tariffs will take place in March.
According to the operators, the tariff hike is essential for sustaining the telecommunications sector. They emphasized that the hike is not primarily driven by profitability concerns.The Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, stated that telecoms operators will issue their tariffs differently. They are currently filing, reviewing, and obtaining approvals from the regulator.
Adebayo stressed that the government should not rely on the telecommunications sector to subsidize other sectors. The tariff adjustment is crucial for the sector’s survival.Regarding investments, the Director of Corporate Communications and CSR, Femi Adeniran, noted that telecoms operators have continued to invest in the sector. The 50% hike will enable operators to invest more in the service.
“So, we are now following what is called the regulatory requirement, regulatory steps of filing, reviewing and obtaining approvals. As soon as those approvals come through, different players will introduce new rates as the time comes. I’ll say over next week, we start seeing some improvement in the prices,” he stated.
Director of Product Innovation and Business Development at 9mobile, Kenechukwu Okonkwo, emphasized that tariff issues are best left to market forces. He expressed hope that the country’s economic situation would improve, avoiding the need for further tariff hikes.
“The other side of it is that the sector cannot be the subsidy for other sectors. Our cost should be reflective of the economy. Telecoms can’t be used as palliative.“So, you can’t say because the costs of garri, pepper and okro have gone up, we now have to subsidise peoples’ living by providing services that are sold at lower than cost. It’s a matter of time before we start seeing the negatives.
“I think it is important that we need to charge rates that are sustainable, and we can’t stand as a subsidy for the problems of people in other sectors, which is not the problem caused by the operators,” he stated.
The Nigeria Labour Congress and the Trade Union Congress (TUC) have called for a massive protest on February 4, demanding a review of the 50% tariff hike to around 5%.Adebayo confirmed that progress is being made towards resolving the Unstructured Supplementary Service Data (USSD) debt issue with banks.
Source : https://guardian.ng/
