*The Nigerian Communications Commission clarifies there is no approval for tariff increments for telecoms consumers from January 2025, highlighting the significance of its extant regulatory procedure for review of price templates, but the Association of Licensed Telecommunications Operators of Nigeria has insisted tariffs ‘must be reviewed’ for industry sustainability

Gbenga Kayode | 绿帽献妻

The far-reaching effects of the latest dust raised over an alleged regulatory approval for telecoms tariff increments are yet to subside across the Nigerian digital space.

The telecoms operators, especially under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) still appear undeterred by fuelling further the reported tariff increase speculations in the public space.

绿帽献妻 reports the Nigerian Communications Commission (NCC), over the past few years, has consistently explained why it has not granted approval to any Mobile Network Operators (MNOs) to effect tariff hikes for telecoms consumers.

Engr. Gbenga Adebayo, Chairman of ALTON (r); and Gbolahan Awonuga, Head of Operations at the press conference, in Lagos

In a move to further clarify its position on the burning issue of tariff increments in the ecosystem, the NCC, once again, has dismissed speculations of an upward review of tariffs by January 2025.

Against the backdrop of certain reports alleging the commencement of a new tariff regime effective from next month, the Commission dismissed the speculations.

NCC has no Management Board to approve tariff increments: Source

The industry regulator rather has insisted that the procedures regarding tariff increments are more rigorous, data-driven and evidence-based.

Quoting a credible source in the Commission, the recent rife speculations on tariff hikes were the handiwork of some telecoms operators, who are being economical with the truth in connection with the NCC’s application of extant industry regulations, including the

The top source has dismissed reports of any increase in tariffs, stressing “for now”, the Commission does not have a Management Board to approve such a review.

Commenting the purported misinformation in circulation, the source reportedly stated: 鈥淟et us face the facts, one as of today, the NCC doesn鈥檛 have a Management Board in place to consider review of tariff.

“Mr. President has not appointed Management Board for NCC.”

The competent source also noted: 鈥淭wo, it鈥檚 only after Board approval that the NCC will engage consultants to carry out a study on Price review.

“After the consultants are through, then stakeholder engagement will take place to consider economic implications and imperatives that call for review.

“Here there will be inputs from all sectors, researchers and academicians will be involved as well as legal practitioners.”

The Commission further explained the telecoms operators would also be involved in the entire process.

鈥淚t鈥檚 after all these have been done and new price template provided that NCC will announce time frame for implementation to allow everyone, including the consumers to be prepared for the increase.

“A minimum of three months鈥� notice will be required. All this have not been done, so how can NCC announce that by January there will be increase in tariff? The source stated.

On MNOs and application of existing price templates

Still highlighting details of the required regulatory procedure, the source reportedly said: “It is a figment of the imagination of someone people.

“The issues around tariff review is data-driven and evidence-based.

鈥淭he telecoms operators that have been announcing and crying that it is necessary to increase tariff plans, they are not telling the truth.”

In respect of the MNOs’ persistent push for further telecoms tariff increases, the NCC stated: “They (telecoms operators) have been saying that the costs of everything, including diesel, have gone up. And they wanted to take advantage.

鈥淭he last time there was a review was 2013. And it was holistic.”

“However, it is important to state that the Mobile Network Operators (MNOs) based on the last review still have windows to increase tariffs on their own.”

The source also clarified that “the price templates they are operating on since 2013 have not been exhausted so why can鈥檛 they go ahead on their own and at individual levels to increase tariffs.

鈥淭he review maintained that the lowest an MNOs can charge subscribers for airtime per minute was 6 Naira 40 Kobo, while the highest is 50 Naira per minute.

“But as of today, some are charging 18 Naira, some 15 Naira per minutes and below.

鈥淣one of them is charging the maximum price, so ask the MNOs why?”

Telcos鈥� persistent push for regulator’s involvement in tariff hikes mere ‘tactics’?

The telecoms sector regulatory Commission asserted: “They are sensitive to the issues of competition in the industry and no one will blink first among them for risk of losing subscribers.

鈥淎nother reason they are passing the bulk to NCC or government is because they know that any increase in tariffs or taxes (from government) will generate negative feedbacks everywhere.

鈥淲e are quite aware of their tactics. It鈥檚 just unfortunate that they are playing with the intelligence of the people.鈥�

ALTON: Telecoms tariffs must be reviewed for industry sustainability

In further stoking the recent speculative news reportage, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, in his end of the year message titled, “Before the Call Final – Telecoms as Sector Under Siege”, delivered at a recent press conference, in Lagos, declared: 鈥淭his is not a time for further deliberation or delayed decisions.

“The survival of the telecoms sector demands immediate and bold reform for its sustainability.”

Adebayo stated: “Our tariffs on must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability.”

“Without this, operators cannot continue to guarantee service availability.鈥�

The Chairman of ALTON also averred: 鈥淚 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鈥攁 hope.

鈥淭he Sector is Under Siege. The challenges we face are not new, but they have become more acute and more threatening with this passing year.”

Amid industry challenges, Telcos may resort to load shedding, if…. -Adebayo

ALTON as well tried to justify its continued request for NCC’s endorsement of telecoms tariff hikes in the country, as Engr. Adebayo said: “Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst other have all placed an unsustainable burden on network operators.

“Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.

“The resources needed to maintain, expand, and modernise our networks are simply no longer available.”

He further noted: “Without intervention, the future of this sector is at grave risk.

鈥淚f nothing is done, we might begin see in the new year grim consequences unfolding, such as Service Shedding; Operators may not be able to provide services in some areas and at some times of the day, leaving millions disconnected.”

According to ALTON, “there will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.

“There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.”

Adedayo stated: “As we navigate this near turbulent year for the sector, we are confident that history will judge us right for the role we have played in an attempt to rescue this sector.

“Stakeholders have stood together to uphold the values and importance of telecommunications in our society.”

Towards ensuring telecoms thrives for generations to come, by ALTON

Engr. Adebayo, the ALTON end of the year message, stated: “Let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future.

“The sustainability challenges we face today are not just a passing storm鈥攖hey are a clarion call for decisive action to ensure that this industry thrives for generations to come.”

The Chairman said: “Despite the dire warnings, we still believe that a better 2025 is possible鈥攂ut only if we act now.

“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.”

The Association warned: “If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardise one of the most critical pillars of Nigeria鈥檚 development.

“But if we succeed, 2025 can be the year we turned things around鈥攁 year of hope, resilience, and sustainability for the telecoms industry.”

Adebayo added: “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.”

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