Telecom operators warn of imminent service disruptions over unchanged tariffs

• The Association of Licensed Telecommunications Operators of Nigeria (ALTON) highlights imminent disruptions due to rising costs and unchanged tariffs
• Operators face skyrocketing expenses driven by inflation, unstable exchange rates, and high energy prices, threatening service quality and infrastructure expansion
• ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) urge the government to mediate a tariff review, balancing affordability and financial sustainability

Telecommunications operators in Nigeria have sounded the alarm about potential service disruptions if tariffs are not adjusted to reflect escalating operational costs.

The warning was issued by Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), in a statement on Monday.

Adebayo described the sector as being “under siege” due to rising operational costs fueled by inflation, volatile exchange rates, and soaring energy prices. Despite these challenges, telecom tariffs have remained unchanged, leaving operators grappling to sustain quality service and expand infrastructure.

He warned of grim consequences if immediate action is not taken, including service shedding, which involves reducing or limiting telecom services in specific areas or during certain times of the day.

“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding,” Adebayo cautioned.

Adebayo stressed that the financial burden on operators has reached unsustainable levels, threatening the sector’s ability to modernise and maintain critical infrastructure.

The first call for tariff adjustments was made in April 2024, but no significant progress has been achieved. ALTON, along with the Association of Telecommunications Companies of Nigeria (ATCON), has reiterated the need for urgent government intervention.

In a joint statement, ALTON and ATCON called on the Federal Government to facilitate constructive dialogue with industry stakeholders to develop a framework balancing consumer affordability with operators’ financial viability.

The telecom associations highlighted that tariffs have remained stable for over 11 years despite mounting operational challenges, and a sustainable solution is crucial to preserve the sector’s future.

Adebayo expressed hope for a more sustainable future if action is taken promptly, warning that failure to address these challenges could jeopardize the survival of one of Nigeria’s most critical industries.

“The time for action is now,” he urged, emphasising the shared commitment of industry stakeholders to secure the long-term viability of Nigeria’s telecom sector.

NCC to limit tariff plans to 7 in new structure for telecom operators

Meanwhile, TheRadar reported that the Nigerian Communications Commission (NCC) said telecommunication operators are limited to a maximum of seven tariff plans in the new structure it unveiled on December 13.

The NCC said the new simplified tariff structure for telecommunications operators is vital in streamlining tariff plans, increasing transparency, and improving the consumer experience.