Telcos considering increasing prices for data, voice services

Telecommunications operators in Nigeria say their services are overdue for price increments as they have not raised rates in the last 11 years.

The operators spoke in a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), on Thursday.

The telecommunications sector, according to the statement, is the only industry that has not reviewed its prices despite the country’s rising inflation rate as well as other economic realities that warrant increment. 

They attributed the lag to the regulatory limitations preventing 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.