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TELECOM OPERATORS PUSH FOR REVISED TARIFF, WARN OF SERVICE DISRUPTIONS, DUE TO RISING OPERATIONAL COSTS
Telecommunications operators in Nigeria have issued a warning about potential service disruptions unless tariffs are revised to reflect escalating operational costs.
In a statement on Monday, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the telecom sector as being “under siege.”
He cited a combination of inflation, volatile exchange rates, and rising energy prices as key factors driving up operational expenses.
Adebayo noted that despite these challenges, tariffs have remained unchanged, putting operators under severe strain as they struggle to maintain service quality and expand their networks.
He further warned that without an immediate adjustment in tariffs, operators may be forced to scale back services, potentially leading to limited telecom availability in certain regions.
Adebayo warned that if immediate action is not taken, the telecom sector may face serious consequences in the coming year, including service shedding.
According to him, this could lead to telecom operators being unable to provide services in certain areas or at specific times, leaving millions of people without connectivity.
The economic fallout would be significant, with businesses suffering from disrupted communication, which could stall growth and innovation.
He also explained the potential national impact, noting that sectors such as security, commerce, healthcare, and education—industries heavily reliant on telecom infrastructure—would experience major disruptions.
Service shedding refers to the intentional reduction or restriction of telecom services in certain areas or times due to operational difficulties faced by telecom companies.
Adebayo said that the financial strain on operators has reached unsustainable levels, putting the sector’s ability to modernize and maintain essential infrastructure at risk.
However, despite the challenges of a difficult year, he remains hopeful for a more sustainable future if swift action is taken.
He warned that the current challenges are not temporary and called for immediate intervention to ensure the sector’s long-term survival.
He noted that the first call for a tariff adjustment was made in April 2024, but progress has been slow.
In response to the escalating financial pressure, the Association of Licensed Telecoms Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria have issued a joint statement urging the Federal Government to open discussions with industry stakeholders.
They stressed the need for a balanced framework that ensures both affordable services for consumers and financial sustainability for operators, following 11 years without tariff increases.
Operators are now calling on all stakeholders to act before it’s too late, warning that failure to do so could jeopardize the future of one of Nigeria’s most critical industries.
