Telcom operators threaten service disruption if tariff are not increased
Telecommunications companies, under the umbrella of The Association of Licensed Telecommunications Operators of Nigeria (ALTON), have warned that their members may begin to reduce services due to the ongoing calls for an increase in tariffs within the sector.
The association has also raised concerns about a critical challenge facing the Nigerian telecommunications industry, which it says requires immediate attention.
In a statement issued in Lagos on Monday, ALTON Chairman Gbenga Adebayo highlighted the struggles faced by operators, citing rising operational costs and stagnant tariffs as key factors.
Adebayo called for urgent reforms to ensure the survival and long-term sustainability of the industry.
He noted that escalating energy prices, persistent inflation, and volatile exchange rates are significant challenges impacting operators and threatening the viability of the sector.
Adebayo said: “As we reflect on the end of 2024, it is essential to issue an urgent and critical call to action regarding the future of our telecommunications industry.
“The survival of the sector requires immediate and bold reforms to ensure its sustainability. Tariffs must be adjusted to align with the economic realities of providing telecom services, at the very least for the sector to remain viable.”
He warned of severe consequences if tariff adjustments are not implemented, including a reduction in services, economic repercussions, and disruption to the national economy.
Adebayo explained that service reduction would mean operators may struggle to provide services in certain areas or at specific times, potentially leaving millions of Nigerians disconnected.
The ALTON chairman also pointed out that critical sectors such as security, commerce, healthcare, and education, which heavily rely on telecommunications infrastructure, would suffer major disruptions from service reductions.
“This would result in significant economic consequences, as businesses will be hampered by a lack of connectivity, stalling growth and innovation,” he added.
