Telecom Operators Push For Higher Tariffs

The Association of Telecommunications Companies of Nigeria (ATCON) has emphasized the need for a tariff adjustment in the telecommunications sector.

This, they believe, will help operators improve the quality of voice and internet services across the country.

Tariff Adjustment and Economic Incentives
ATCON President Tony Emoekpere explained that increasing operational and capital costs have made it necessary for operators to review tariffs. He suggested, “MNOs should be permitted to implement controlled tariff increases to account for rising operational and capital costs.” Emoekpere also proposed government interventions like tax breaks or subsidies to ensure that while tariffs are adjusted, internet access remains affordable for consumers.

Addressing Infrastructure Deficits
The Federal Government was urged to tackle the infrastructural challenges hindering broadband internet expansion. Emoekpere highlighted disparities in internet access, noting that urban areas like Lagos enjoy better connectivity than underserved rural regions. “The barriers to broadband internet expansion in Nigeria reflect a combination of infrastructure deficits, economic constraints, and systemic challenges,” he stated.

Nigeria aims to achieve 70% broadband penetration by 2025 under the National Broadband Plan. However, as of October 2024, broadband penetration stood at 42.24%. Emoekpere stressed that bridging the infrastructure gap, especially in rural areas, is essential to achieve this target and reduce the digital divide.

Challenges with Broadband Expansion
The ATCON president pointed out several factors affecting broadband expansion, including limited fibre-optic networks and inadequate last-mile connections. These issues contribute to unreliable internet services, leaving millions of Nigerians without meaningful connectivity. He also mentioned that high costs of internet services and devices continue to make access unaffordable for many, particularly those in lower-income brackets.

Frequent disruptions in internet services due to vandalism, fibre cuts during construction, and inconsistent power supply further aggravate the situation. “Such disruptions not only affect service delivery but also lead to higher operational costs for telecom providers,” Emoekpere explained.

Calls for a Tariff Review
Telecom operators have long advocated for a tariff review, citing increasing costs and inflation. Despite these challenges, regulatory restrictions have prevented price adjustments. Operators argue that the telecom sector is the only industry that has not adjusted its prices in response to economic realities.

The Nigerian Communications Commission (NCC), which regulates prices in the industry, has indicated that it is conducting a cost-based study to decide whether to approve price increases. This review aims to balance the needs of the operators and consumers, ensuring fair pricing while maintaining service quality.

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