Telecommunications operators in Nigeria say their services are overdue for price increments as they have not raised rates in the last 11 years.
The operators spoke in a joint statement by the Association
of Licensed Telecom Operators of Nigeria (ALTON) and the Association of
Telecommunication Companies of Nigeria (ATCON), on Thursday.
The telecommunications sector, according to the statement,
is the only industry that has not reviewed its prices despite the country’s
rising inflation rate as well as other economic realities that warrant
increment.
They attributed the lag to the regulatory limitations preventing
them from setting prices appropriately.
“ALTON and ATCON
respectfully reiterate that telecommunications infrastructure development
requires substantial investments in network expansion, maintenance, and
technology upgrades,” the statement reads.
“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 liberalized 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.
“ATCON and ALTON call
upon the government to facilitate a constructive dialogue with industry
stakeholders to address pricing challenges and establish a framework that
balances consumers’ affordability with operators’ financial viability.”
Furthermore, the operators called for government action to
address telecommunications industry challenges such as taxation, regulations,
right of way (RoW), charges, inadequate power supply, and infrastructure
vandalism.
They also asked the government to implement legislation that
designates telecommunications infrastructure as critical national
infrastructure.
“Telecommunications infrastructure undisputedly plays a
pivotal role in Nigeria’s national security and socioeconomic growth,
especially as the country currently contends with multiple security challenges
that require urgent and immediate actions in response to these threats,” the
associations said.
“Attacks on cell
towers, fibre optic cables, and other critical assets disrupt
telecommunications services and result in significant financial losses for
operators.”
They urged the government to prioritise the security of
telecommunications infrastructure and collaborate with law enforcement agencies
to strengthen security protocols and successfully resist sabotage and
vandalism.
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