Telecom operators calls for immediate tariff review to safeguard industry sustainability

Date:

Telecommunications operators in Nigeria have issued a strong call for an urgent revision of service tariffs to align with the current economic challenges facing the sector. 

They warn that without such adjustments, both the quality and availability of telecom services could be jeopardised, with detrimental effects on the broader economy.

Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), made the plea on behalf of all operators during an end-of-year gathering with industry stakeholders in Lagos on Sunday. 

His remarks, issued in a statement by ALTON on Monday, emphasized that the sector is facing critical pressure and cannot sustain its operations at current tariff levels.

In his speech, titled “Before the Final Call: Telecom as a Sector Under Siege,” Adebayo described the situation as dire, stressing that the industry’s survival hinges on immediate tariff adjustments. 

He warned that without swift and decisive action, the telecom sector could face a collapse, leaving the country’s hopes for a stronger, more resilient telecom infrastructure in tatters by 2025.

The call underscores growing concerns within the telecom industry, which has been struggling to balance rising operational costs with the financial constraints of consumers. 

With the stakes higher than ever, operators are demanding that policymakers take urgent steps to ensure the long-term viability of the sector.

He said, “This is not a time for further deliberation or delayed decisions. The survival of the telecom sector demands immediate and bold reform for its sustainability. Our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.

“As we reflect on the ending of year 2024 there is a need to issue an urgent and critical call to action for the future of our telecommunications industry.

“I must say it again with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that—a hope.”

Adebayo noted that while the challenges facing the sector are not new, they have grown increasingly severe and urgent over the past year.

He highlighted that rising operational expenses, soaring energy prices, persistent inflation, and fluctuating exchange rates, among other factors, have created a crushing financial strain on network operators.

Despite these escalating pressures, he pointed out that tariffs have remained unchanged, leaving operators in a precarious financial position.

He further emphasised that the necessary resources to sustain, expand, and modernize networks are no longer available, warning that without intervention, the future of the sector is in serious jeopardy.

“The time for action is now. Let us not wait until it is too late. ALTON stands ready to work with all stakeholders to ensure the survival and prosperity of this sector,” he said.

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