NATCOMS suggests 10% increase in tariffs by telecoms companies

The National Association of Telecommunications Subscribers (NATCOMS) urges  the Nigerian Communications Commission (NCC) to allow telecommunications companies (Telcos) increase tariffs by a marginal increase of 10 per cent.

Mr Adeolu Ogunbanjo, National President, NATCOMS, told the News Agency of Nigeria (NAN) that this marginal increase was necessary to address the rising costs faced by telecom companies.

He said that furthermore, the government and NCC should find a workable solution to address the financial struggles of telecom companies.

Ogunbanjo urged stakeholders to work together to find a sustainable solution that balances the needs of telcos with those of their customers.

He noted that to address the situation, experts were proposing a marginal increase in cost to improve services.

According to him, a marginal increase of 10 per cent has been suggested for telecoms companies.

“The moment NCC approves the marginal increase of 10 per cent which is a lot, they will have to really use it to improve services for their subscribers.

“We need to take our macroeconomists seriously. Many of them have spoken up saying there needs to be help for the sector.

“For us to continue to use these services, maybe we can accommodate a marginal increase.

“A marginal increase, not more than 10 per cent, so that at least, telecommunications can improve their services and then we also can enjoy good quality services”.

Ogunbanjo said that the telecoms companies had also suggested load shedding as an alternative to price increase.

He said that the operators suggested that they would provide services only in certain areas at specific times.

However, the NATCOMS president rejected the proposed load shedding by telecom companies in Nigeria, warning that it would have devastating effects on key sectors of the economy.

He stressed that load shedding would disrupt critical sectors including banking, education, health and businesses which rely heavily on telecom services.

“About three months or four months ago, they were saying that they probably may have to start load shedding.

“Just like they are doing for electricity. It means that it is going to affect our businesses.

“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.

“Meaning that service is off maybe for one day in the week or something. This will affect a lot of businesses. Many things are virtual these days.

“Meetings are done online. So, if they should do that, it will affect us. And many of us use all the social media platforms to advertise our products.

“When telecoms by mobile network operators also cease, it will affect us virtually,” he said.

The NATCOMS boss warned that subscribers would hold telecom companies responsible for any disruption in services.

He cautioned that load shedding could jeopardise not just the telecom industry, but also the economy as a whole.

“When you now look at the quality of service the telecoms companies are rendering these days it is very poor and they are also complaining.

“Do not forget that they said their operations were getting burdensome because the rising costs of things, such as petrol, diesel and some other things, that will make the network function appropriately are involved.

“They are complaining. I think in the last 11 years, they have not increased their service charge.

“What happened in the last 15 to 18 months, since May 29, is beyond everybody, operational costs have increased but not physical like we see in petrol,” he said.

Adeolu noted that in a recent workshop, the Managing Director of Financial Derivatives, had described the industry as “sick” and “falling apart”.

He said that the renowned economist arrived at the conclusion after a survey was conducted on the telecoms industry, concluding that it was in a state of crisis.

“Again, the MD Financial Derivatives, Mr Bismarck Rewane, had a workshop and said that the entire telecom industry is in intensive care unit. What does that mean? They are sick and falling apart.

“With all these, it is better to have a telecoms network that works for us.

“The meaning is very simple. With the likes of Rewane, who are respected economists, saying that, it means truly the telecoms industry is sick,” he said.

Ogunbanjo said that these observations meant that there was need for urgent solution to the problem, as stated by respected economists and the telecoms companies themselves.