The National Association of Telecommunications Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) to consider a marginal 10% tariff increase for telecom companies to moderate the rising operational costs in the nation’s telecommunications sector.
The National President of the association was quoted by the News Agency of Nigeria (NAN) as saying that the tariff hike is necessary for telecom companies to sustain their operations and improve service quality.
However, he pointed out that the current economic conditions are negatively the impacting telecom operators’ business, thereby making it crucial for stakeholders to find a balanced solution
He stated: “When you now look at the quality of service the telecoms companies are rendering this day, it is very poor, and they are also complaining. Do not forget that they said their operations were getting burdensome because of the rising costs of things, such as petrol, diesel and some other things, that will make the network function appropriately.
“They are complaining. I think in the last 11 years, they have not increased their service charge, operational costs have increased but not physical like we see in petrol”, the NATCOMS chief added
Noting that telecom companies have been operating under increasing financial strain due to the rising costs of essentials which are needed to power their networks, Ogunbanjo stressed that although the proposed 10% tariff hike might seem significant to subscribers, it was essential for improving the overall quality of telecommunications services in Nigeria.
According to him, the moment NCC approves the marginal increase of 10% which is a lot, they will have to use it to improve services for their subscribers and subscribers will begin to enjoy improved quality of services following the increase.
He further spoke on the need for macroeconomic considerations on the tariff hike issue, saying that many experts have canvassed the need to consider this in the drive to grow the sector.
On the plans by the telcos to shed loads, which some had begun, Ogunbanjo rejected the proposed load shedding, saying it is similar to how electricity is rationed in the country.
He stated: “Just like they are doing for electricity, for instance, in Lagos state – Agege, Apapa, and Ikeja, probably they will have service today and other areas will not have, you know, they start rationing like that, that is load shedding.”
He warned that load shedding would have devastating effects on critical sectors like banking, education, and healthcare, all of which rely heavily on telecom services, adding that if services are disrupted maybe for one day in the week this will negatively affect a lot of businesses and other activities.
