Telephone tariffs will soon go up, following President Bola Tinubu-led Federal Government’s approval of the request by telecom operators.
The approval was conveyed yesterday by Minister of Communications, Innovation and Digital Economy, Bosun Tijani during a meeting with Chief Executive Officers (CEOs) of Mobile Network Operators (MNOs).
The new tariffs regime is likely to begin next month as the Nigerian Communications Commission (NCC), the regulator of the sector, plans to release the guidelines latest by end of the month.
Telephone tariffs were last increased about a decade ago.
In recent weeks, chief executives of MTN Nigeria, Karl Toriola and Airtel Nigeria Dinesh Balsingh personally canvassed the increase in tariff to ‘save the industry’.
At Wednesday’s meeting, Tijani said the approval being considered by the Federal Government through the NCC had become imperative to stimulate growth and investments in the sector.
The MNOs have been pushing for, at least,100 per cent tariffs hike, but the government said yesterday it won’t approve up to that.
Tijani insisted that the increase would not be 100 per cent as being pushed by the operators.
At the meeting was the NCC Executive Vice Chairman (EVC), Dr. Aminu Wada Maida.
According to him, consultations and engagements were on-going on the matter, noting that “very soon, the NCC would approve the new tariffs and make it public to Nigerians.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariff. They are requesting for 100 per cent tariff increase.
“But, it will not be by 100 per cent. We are still looking at that study and NCC will come up with a clear directive on how we will go about it.
“We want to strike the balance as a government to protect our people, but also protect and ensure that these companies can continue to invest significantly.
“We need to ensure that as a sector, we get our acts together, ensure that from the regulation side, we put the right regulations in place that can ensure the growth of this sector.”
On developments in the telecom sector, the minister said the Federal Government would no longer leave investments in infrastructure to private companies alone.
He said: “As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term.
“We will not want this conversation to just be about tariff increase. I think what the world is talking about today is meaningful connectivity.
“You want to have access to very good quality service.
“A part of it is that the consumers may not be aware of the investment that needs to go into the infrastructure that is used to deliver these services.”
The EVC of the NCC explained that yesterday’s meeting with the critical stakeholders bothered on the sustainability of the industry.
Maida said: “We have looked at all of these factors, and that is why, like the minister said, it is not likely that we are going to approve 100 per cent tariff increase.
“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two.”
According to Maida, the NCC had over the years put a number of tools and instruments into place by revising its quality of service regulations for compliance with service quality.
He said it had now become imperative for the MNOs to comply with directives to simplify their tariff templates to show Nigerians charges per minute for voice calls, SMS and a megabyte of data.
“We are moving away from the regime where you will have a main rate. Then, you will now have a bonus which is at a different rate.
“It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for.
“So, we took a lot of time over the past year looking at data there is this agitation that the MNOs are stealing our data.”
Airtel Nigeria (CEO), Mr. Dinesh Balsingh, justified the request for upward adjustment of tariffs for the delivering of superior connectivity and fostering digital inclusion by the operators.
Balsingh, who was represented by the firm’s spokesman, Mr. Femi Adeniran, said: “The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.
“This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for consumers.”
Association of Telecom Companies of Nigeria (ATCON) President Tony Emoekpere described the proposed approval for MNOs to raise tariffs as a welcome development.
According to him, the nod came after a very long time of stagnating tariffs at one level despite macro-economic headwinds.
He said: “We are monitoring the news as it unfolds. If there is an approval to increase tariff, it is a welcome development.
“Remember that costs have gone up by between 400 per cent and 500 per cent. So, the margin of approval is also important to the health of the industry.”
Asked if whatever will be approved that is less than 100 per cent demanded by the MNOs will suffice, Emoekpere said: “The main challenge is that this issue has been left unattended to for too long. That is why a 100 per cent increase appears to be a lot. Considering the prevailing situation, it is not as much as it looks. However, we will wait to see what is proposed.”
Executive Secretary, Association of Licensed Telecom Companies of Nigeria (ALTON), Gbolahan Awonuga, noted that approval was coming after about a decade of stagnant telecom tariff regime.
Echoing Emoekpere, the ALTON chief said the percentage increase granted by the Federal Government is also important for the health of a sick industry.
Awonuga said: “We are excited over the approval. But as it stands now, we are not sure about the percentage increment the government has approved.
“But, it is a healthy development because we cannot afford to see the industry slip to the era of NITEL. We welcome the development. Let us start from somewhere to save the industry,”
President, Association of Telephone, Cable Tv, and Internet Subscribers of Nigeria (ATCIS-Nigeria), Sina Bilesanmi, who had consistently kicked against the push for end user tariff hike, said the position of the association will be made known later.
“We are scheduled to meet with the Nigerian Communications Commission (NCC) tomorrow (today). The meeting today (yesterday) was between the MNOs or their COOs, the NCC and the minister. So, we are meeting with the NCC tomorrow (today),” he said in a telephone conversation.
President of the National Association of Telecom Subscribers of Nigeria (NATCOMS), Deola Ogunbanjo, could not be reached on Wednesday.
Calls to the phone number were not answered picked up.
However, in his previous reactions to the tariff hike conversation, Ogunbanjo, who initially supported a marginal hike that will not disenfranchise consumers on the network, later changed his position to outright rejection.
Credit: thenationonlineng.net
