*Telecoms companies express their willingness to meet the Nigerian Communications Commission’s directive for improved Quality of Service, while awaiting the regulators’ nod to activate the approved 50 percent tariff increments to ramp up investments in network infrastructure, coverage, and improve products and services for enhanced consumer experience

Isola Moses | 绿帽献妻

Sequel to the official approval of their request for upward tariff adjustments, the Mobile Network Operators (MNOs) have expressed confidence in meeting the Nigerian Communications Commission’s (NCC) considerable Quality of Service (QoS) deadline attached to the 50 percent basis increments for consumers.

The NCC January 13, 2025, had approved the MNOs鈥� request to an upward adjustment of telecoms tariffs in the country.

绿帽献妻 reports telecoms sector regulatory Commission said it approved the Telcos鈥� proposal, pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators in the country.

Dr. Karl Toriola, CEO of MTN Nigeria Communications Plc

Mr. Reuben Muoka, Director of Public Affairs, in a statement said that the adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews.

“It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” he explained.

The Commission also acknowledged that telecoms tariff rates have remained static since 2013, despite the increasing costs of operations being faced by the telecoms operators.

On the goal of the approved 50 percent tariff adjustments, Mr. Muoka the NCC鈥檚 decision is aimed at addressing the major gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised in the digital ecosystem in Nigeria.

The NCC further stated: “These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.鈥�

“The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

“The NCC recognises the financial pressures faced by Nigerian households and businesses, and remains deeply empathetic to the impact of tariff adjustments,” said the Director of Public Affairs.

The industry regulator directed the MNOs to implement the tariff adjustments “transparently and in a manner that is fair to consumers.”

The MNOs are equally required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery to telecoms consumers.

In connection with the straight mandate attached to the Commission鈥檚 approval of 50 percent tariff hikes, the Telcos hinted at their obligation to improve network quality and connectivity, including better network quality, 鈥渆nhanced customer service, and greater coverage鈥�.

Dr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, speaking on the development Tuesday, January 28, 2025, exuded confidence that the telecommunications company would meet the NCC three-month service quality deadline in the ecosystem.

Toriola averred: 鈥淲e will now be measured on quality of service.”

‘We are spending 120 percent of what we earn,’ says MTN Chief

The CEO of MTN Nigeria also indicated that the approved 50 percent tariff increases would unlock more funds to ease operations and for further investments, stating the Telco has been battling with high operating costs in the economy.

鈥淲hile we (MTN) make N2.4 trillion in revenue, our commission on sales and operating expenditure takes more than 60 percent off,” he was quoted to have said.

Toriola further explained that when interest payments on loans, statutory licences, and other obligations are added, the telecoms company is left with no cash to pay its bills as and when due.

He declared: “We are spending 120 percent of what we earn.”

Besides these costs, the CEO of the leading MNO, disclosed that other hidden costs like fibre cuts, pegged at N1,000 per month, and an economic slump that increased inflation to 34.8 percent December 2024 have also worsened the Telcos鈥� cost of operations in Nigeria in recent times.

He, therefore, assured Nigerian telecoms consumers of better days ahead in the digital ecosystem.

Toriola said: “Based on our projections, there would be more cash flow, meaning additional funding to expand and provide quality service, redundancy on our network and better customer experience.”

Airtel will invest in network infrastructure, improved consumer experience: CEO

Toeing the line of Toriola’s assurance to telecoms subscribers, Dinesh Balsingh, CEO of Airtel Nigeria, also stated 鈥渢he price increase will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers.鈥�

Though its potential to unlock more funding for Telcos, industry sources revealed that the NCC has yet to approve the actual “new tariff plans” despite the announcement of approval for 50 percent increments January 13 this year.

A quoted source said: “We don鈥檛 have the price increase in our hands because, even though it has been announced and based on Section 108, every single product that you want to increase its price has to go to the NCC, be iterated, and approved.”

It is, however, noted that the MNOs expect the telecoms sector regulator to respond to this week.

The proposed tariff increases will raise the floor price (minimum acceptable price) of calls to N9.6 per minute from N6.40, the cost of SMS to N6 from N4, and the cost of 1GB of data to N431.25 from N287.5.

The average price of calls will rise to N16.5 per minute from N11, unlocking at least N6.59 trillion in revenues and N244.99 billion ($160 million) in network investments for Telcos, a report stated.

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