Technology

November 7, 2024

Increase telecom tariffs now or risk industry collapse, ALTON warns FG

telecom

…Says inaction will bring greater consequences

…NCC attributes data depletion to digital advancements

By Emmanuel Elebeke

Amid harsh economic realities and concerns over the declining quality of telecom services, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has urged an immediate increase in tariffs to prevent a potential industry collapse.

The association warned that, given the rising costs of operations, the telecom sector in Nigeria is no longer sustainable under the current pricing structure.

ALTON Chairman, Engr. Gbenga Adebayo, expressed this stance at the 93rd Telecom Consumer Parliament organized by the Nigerian Communications Commission (NCC) in Abuja.

“This is a critical moment for the telecom industry,” Adebayo said. “If we act now, we can establish a platform for growth and improve the user experience. Delaying necessary decisions will not only harm investor interests—many of whom are Nigerians feeling the same daily pains—but will also stifle innovation and the development of new services.”

He acknowledged the financial stress Nigerians currently face but emphasized that the telecom sector cannot continue to operate sustainably without adjustments. “We understand the cost of living is at the forefront of people’s minds,” he said. “People who once recharged ₦5,000 or ₦10,000 now mostly recharge ₦200 or ₦300 because of limited disposable income. Yet, they still benefit from connectivity at pre-crisis rates. Reversing the gains of the last 22 years would be detrimental to Nigeria’s future.”

Adebayo called on telecom operators to keep Nigerian consumers central to their decision-making processes. “If we don’t address these sustainability issues, the consequences will be much worse. Prices will need to rise, but this must be done thoughtfully, through dialogue and partnerships with the government to find lasting and manageable solutions.”

Addressing data optimization, Adebayo emphasized the importance of transparency, urging that telecom consumers be empowered through increased awareness. “Your feedback is essential, and it guides our improvements and innovations. Our members and regulators are committed to understanding your needs and delivering on our promises,” he added.

In his keynote, NCC Executive Vice Chairman Prof. Umar Danbatta noted that increased data consumption is a global issue, driven by digital advancements, and requires immediate attention to address consumer concerns regarding data depletion and billing transparency.

Representatives from telecom service providers also spoke, lamenting the high costs of operations in Nigeria and calling for assistance to sustain and improve the quality of services while bridging the digital gap.