Telecom tariff adjustment to save sector from stagnation – ATCON

• The Association of Telecommunication Companies of Nigeria said telecom tariff adjustment to save the sector from stagnation
• It said the hike will ensure the improvement and maintenance of the quality of telecom services and hasten the growth of Nigeria’s digital economy
• ATCON said the government should address other challenges facing the sector

The Association of Telecommunication Companies of Nigeria (ATCON) says telecom tariff adjustment is necessary to save the sector from stagnation.

ATCON president, Mr Tony Emoekpere, noted the concern of Nigerians toward the proposed hike in tariff, especially with the state of the economy, but stressed the long-term benefits of the adjustment to the sector and the future of Nigeria’s digital economy.

Emoekpere stated this in a telephone interview with the News Agency of Nigeria (NAN) in Ibadan on Wednesday, February 5.

He added that telecom operators faced higher operational and capital costs due to economic factors like taxation, exchange rate fluctuations, and higher energy costs, among others.

“For years, telecom operators have operated under immense financial strain due to foreign exchange fluctuations, high energy costs, multiple taxation, and rising infrastructure expenses.

“These challenges have made it increasingly difficult to expand network capacity, improve service quality, and bridge the digital divide.

“Without adjustments in pricing, Nigeria’s digital infrastructure risks stagnation, making it harder for the country to compete in the global digital economy,” Emoekpere said.

Tariff increase will hasten digital adoption

The ATCON president stressed that beyond pricing, the tariff adjustment will ensure the improvement and maintenance of the quality of telecom services offered to Nigerians.

He also noted the sector’s advancement will hasten the adoption and growth of Nigeria’s digital economy.

“This tariff increase is an investment in the future of Nigeria’s digital economy, as it will enable operators to expand 4G and 5G coverage across more locations, particularly underserved areas.

“This increment will bring about the upgrade of network sites to ensure better reliability. It will also enhance broadband speeds to support businesses, education, fintech, telemedicine, and other critical digital services.

“At the end of the day, the success of this move will be measured by real and tangible improvements in quality of service with faster internet speeds, fewer dropped calls, and wider coverage, leading to the digital transformation we all desire.

“That is the ultimate goal, and the telecom industry is fully committed to delivering on this promise,” Emoekpere said.

Government should address industry challenges

Emoekpere further stated that other challenges facing the telecom industry must be addressed if the government is to truly support digital transformation.

He said, “The focus should also be on simplifying Right of Way permits to speed up fibre deployment.

“It should also focus on fully enforcing Critical National Information Infrastructure protections to stop vandalism of telecom assets.

“Again, we should emphasise the reduction of the multiple layers of taxation that telecom operators face at federal, state, and local levels, and provide incentives for rural broadband expansion to ensure digital inclusion across all communities.”

ATCON seeks implementation of FG’s decision on tariff hike in Q1 2025

Meanwhile, TheRadar earlier reported that the Association of Telecommunication Companies of Nigeria (ATCON) commended the Federal Government’s decision to hike telecommunications tariffs and invest in the sector’s infrastructure.

The association also called for the government to implement its decision on the hike in the first quarter (Q1) of 2025 to enable Mobile Network Operators (MNOs) to start planning.