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Home Business & Finance Business

Telecom operators call for urgent tariff review to sustain industry

Quadri Olaitan by Quadri Olaitan
December 31, 2024
in Business
0
Towers

Nigerian telecom operators urge immediate tariff review, citing rising costs and economic pressures threatening the industry’s sustainability.

 

 

[dropcap]T[/dropcap]elecom operators in Nigeria have issued a critical call for an urgent review of service tariffs, warning that the sector’s sustainability is under threat.

Speaking at an end-of-year industry event in Lagos on Sunday, Engr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), highlighted the dire economic realities facing the industry.

 

Also read: 9mobile Disappoints, MTN Dusts Airtel, Glo, As Telcoms Gain 12.6m Internet Users

 

Adebayo explained that escalating operational costs, surging energy expenses, inflationary pressures, and volatile exchange rates have placed an overwhelming burden on telecom operators.

Despite these challenges, he noted that service tariffs have remained stagnant, leaving operators unable to maintain, expand, or modernise their networks effectively.

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

He emphasised that without an immediate tariff review, the availability of quality telecom services could not be guaranteed, potentially hampering economic growth and innovation.

“The sector is under siege,” Adebayo warned. “If immediate and decisive action is not taken, the hope for a better 2025 will be in ruins.”

The ALTON chairman further stressed that bold reforms were needed to safeguard the industry, urging stakeholders and policymakers to act swiftly.

Telecom operators, who provide vital services that drive Nigeria’s digital economy, are grappling with rising operational costs, particularly energy expenses and inflation.

Adebayo’s remarks underscore the urgency for industry stakeholders to implement reforms that will ensure the sustainability of telecom services for the nation’s growth.

As the telecom industry looks toward 2025, the pressing need for a tariff review is seen as essential to preserving the sector’s ability to deliver quality service and meet growing demands in a challenging economic landscape.

Quadri Olaitan
Quadri Olaitan

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