As the cost of living continues to rise, telecoms subscribers are jittering as the Nigeria Communications Commission is about to review (upward) tariffs on calls, text messages and internet subscriptions.
Being the backbone of Nigeria’s digital economy, the telecommunications sector has also been facing economic challenges gripping the nation.
While Nigerians depend heavily on affordable and reliable voice and internet services, the telecoms operators are grappling with skyrocketing operational expenses, which threaten the sustainability of the entire industry.
Concerned with the current economic situation and the persistent agitation for the tariff increase by the telcos, the NCC has announced that it will unveil a new and simpler tariff structure for telecoms operators on December 13, 2024.
This move signals a critical step towards addressing the imbalance between service costs and operational realities. While no one likes the idea of paying more, industry players said quality services would o ly come with higher cost, and that maintaining the status quo could lead to a collapse in service standards.
Telecoms operators in Nigeria, including major players like MTN, Airtel, and Glo, have long kept prices stable, even as the costs of fuel, electricity, and infrastructure maintenance soared consistently.
Earlier this year, the operators were bent on increasing tariff in 11 years, warning that without a fair adjustment to tariffs, the quality of service will deteriorate, and the financial health of the sector will be compromised.
Despite these warnings, the industry has continued to bear the brunt of economic inflation without passing the costs on to consumers.
The industry players said that the telecommunications sector was one of the few that has not raised prices despite inflationary pressures.
“Network operators must invest in infrastructure to expand coverage, improve internet speeds, and ensure that call quality meets global standards. Without the necessary financial resources, these investments will stall, leaving Nigerians with subpar services,” they claimed.
Recently, MTN management threatened to shut down services in Nigeria if not allowed to increase its tariffs.
Meanwhile, some of the subscribers, who spoke to New Telegraph, said the tariffs review may not be in the interest of the consumers. The subscribers fear that they may be forced to pay higher for the telecom services and add to their economic woes.
They claimed that the tariffs would be increased amid the economic hardship, adding that the services rendered by the telcos are still below the required quality.
Recall that MTN is one of the companies currently being investigated by the federal government over the alleged exploitation of their customers.
The MTN customers have continuously complained of data depletion, low quality of services, exploitation and others.
However, the NCC said the new tariff framework promises to make pricing more transparent and consumer-friendly. While the details are still under wraps, it is crucial that any changes strike a balance between affordability for consumers and profitability for operators.
“This is not just about raising prices, it’s about ensuring that the industry remains viable while providing Nigerians with the quality services they deserve. “A well-thought-out tariff adjustment could also open the door for innovative pricing models.
For example, operators might introduce data-sharing plans, payper-use models, or tailored packages for different demographics. Such initiatives would ensure that consumers get value for money while helping operators.
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