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Business News of Thursday, 25 April 2024

Source: www.legit.ng

Calls, data rates to increase as MTN, Airtel, Glo, others push for tariff hike

Calls, data rates to increase as MTN, Airtel, Glo, others push for tariff hike Calls, data rates to increase as MTN, Airtel, Glo, others push for tariff hike

Telecom operators, represented by the Association of Licensed Telecom Companies of Nigeria (ALTON) and the Association of Telecom Companies of Nigeria (ATCON) have called for a tariff that reflects the true cost of services.

The groups released a joint statement appealing to the Federal Government to safeguard telecom infrastructure from deliberate vandalism and theft.

Legit.ng is aware that the current telecommunications companies operating in Nigeria include MTN, Airtel, Globacom Limited, Broad-Based Communications Limited, 9Mobile, Main One Service Company Limited, Fiberone Broadband Limited, and others.

As stated in the joint announcement, the associations emphasized that the development of telecommunications infrastructure necessitates significant investments in network expansion, maintenance, and technology upgrades.

The statement partly read: “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 liberalised 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."

They, therefore, urged the government to initiate a constructive dialogue with industry stakeholders to tackle pricing challenges and create a framework that balances consumers' affordability with operators' financial sustainability.

Both associations expressed concerns over various challenges in the sector, such as multiple taxation and regulations, high Right of Way (RoW) charges, insufficient electricity supply, and vandalism of telecommunications infrastructure.