Telecom subscribers wants 10% tariff hike to avert service decline
Telecommunications towers on blue sky, a red and white, the other white, antennas for television, radio, and mobile phones.
The National Association of Telecommunications Subscribers (NATCOMS) has called on the Nigerian Communications Commission (NCC) to approve a 10 per cent tariff increase for telecom operators, citing the need to offset rising operational costs and improve service quality.
President of NATCOMS, Adeolu Ogunbanjo, emphasized that the economic pressures on telecom companies have grown significantly, leading to deteriorating service quality across the country.
Ogunbanjo stressed that telecom operators were facing unsustainable financial burdens due to rising fuel costs and other essentials required to maintain network infrastructure.
“The quality of telecom services is suffering, and operators are struggling under the weight of soaring operational costs. This tariff increase, although it may seem significant, is necessary for the long-term sustainability of the sector,” he said.
He added that telecom operators have not raised service charges in over a decade, despite the steep increase in their operational expenses, particularly for fuel such as diesel and petrol, which are critical for powering their networks.
“They haven’t increased their charges in 11 years, yet the cost of doing business has skyrocketed. We need to acknowledge this reality to ensure service does not degrade further,” Ogunbanjo noted.
Economists have voiced concerns about the current state of the telecom industry.
Notably, financial expert Bismarck Rewane, Managing Director of Financial Derivatives, described the telecom sector as being in an “intensive care unit” due to its financial struggles.
Rewane highlighted the growing pressure on telecom operators, warning that without intervention, the sector could face severe challenges in maintaining service delivery.
To cope with these economic challenges, some telecom operators have already resorted to “load shedding,” prioritizing high-revenue areas to optimize operational costs. However, this has led to poorer service in less profitable regions.
