Nigeria’s telecom industry is calling for a government review of service costs, citing economic pressures and the need for investment. The Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON) jointly made the request, highlighting the challenges facing the sector.
The request is contained in a statement jointly signed by Engr. Gbenga Adebayo and Engr. Tony Izuagbe Emoekpere, President of ALTON and ATCON respectively.
Price review needed for investment
ALTON and ATCON argue that current prices haven’t been adjusted in over a decade despite economic difficulties. They say maintaining and expanding telecom infrastructure requires significant investment, and current regulations limit their ability to raise prices accordingly. This, they warn, could discourage future investment and harm the industry’s health.
The groups propose a “cost-reflective tariff” that better reflects actual expenses. They also want a collaborative discussion with the government to find a balance between consumer affordability and operator viability.
Beyond pricing: Infrastructure and security concerns
The telecom associations also raised other issues crucial for industry growth. These include:
Infrastructure Challenges: Telecom companies face hurdles like multiple taxes, high Right of Way charges, and unreliable power supply. These issues hinder network expansion and service quality.
Security threats: Vandalism and attacks on telecom infrastructure disrupt services and cost operators money. ALTON and ATCON urge the government to classify telecom infrastructure as “Critical National Infrastructure” and prioritize its security.
Regulatory independence: The groups emphasize the importance of an independent regulatory body, the Nigerian Communications Commission (NCC). They believe a neutral and independent NCC is vital for investor confidence in the sector.
Collaboration for a Thriving telecom sector
ALTON and ATCON expressed their commitment to working with the government to address these challenges. They believe a supportive regulatory environment, along with infrastructure investment, improved security, and a pricing adjustment, can unlock the full potential of Nigeria’s telecom sector and contribute to the country’s economic and social development.