… Call For Upwards Review Of Tariffs
The Federal Government has been entreated to take deliberate actions towards ensuring that the numerous challenges plaguing the telecommunication ecosystem are addressed.
This call came from two key bodies representing Mobile Network Operators (MNOs) and telecommunication companies in Nigeria, the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).
A joint statement released today and signed by the duo of ALTON Chairman, Engr. Gbenga Adebayo and ATCON President, Engr. Tony Izuagbe Emoekpere underscored the urgent need for collaborative efforts between the public and private sectors to overcome obstacles hindering the sector’s growth and development.
The Associations enumerated that challenges to boarder on infrastructure deficits, Protection of available assets and network infrastructure, cost-reflective tariff of services and regulatory independence.
Harping on the need for upwards review of tariff to reflect current economic realities in the country, the bodies reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades. They pointed out that 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.”
The statement also noted that ALTON and ATCON members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.
It further pointed out the need to expedite legislation that designates telecommunications infrastructure as Critical National Infrastructure (CNI). Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria. “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. Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators,” the statement reiterated.
The associations urged the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.
On setting a regulatory stance, the Statement posited: “ALTON and ATCON advocates for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission’s (NCC) or (Commission) domain, which will inspire trust in the telecommunications sector and encourage investment. Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions.”
The Associations pledged their commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria. They noted that by fostering a conducive regulatory environment, prioritizing infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.
