NCC relents, approves hike in telephone tariffs after years of agitation by telcos
By Jeph Ajobaju, Chief Copy Editor
Telephone tariffs will soon go up, likely from February, following approval by the federal government of the longstanding request by telecom operators.
Bosun Tijani, Communications, Innovation and Digital Economy Minister, conveyed the approval on Wednesday at a meeting with Chief Executive Officers (CEOs) of Mobile Network Operators (MNOs) in Abuja.
The Nigerian Communications Commission (NCC), the sector regulator, plans to release the guidelines latest by the end of January, and the new tariffs are likely to begin in February.
The approval came after MTN Nigeria Chief Executive Office Karl Toriola and his counterpart in Airtel Nigeria Dinesh Balsingh personally canvassed for increase in tariffs to “save the industry”.
At Wednesday’s meeting, Tijani said the approval being considered by the government through the NCC has become imperative to stimulate growth and investment in the telecom sector.
The MNOs have been pushing for at least 100 per cent tariff hike but Tijani stressed that the increase would not be up to that level.
NCC Executive Vice Chairman Aminu Maida disclosed at the meeting that consultations and engagements are ongoing and “very soon, the NCC would approve the new tariffs and make them public to Nigerians.”
He added: “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.”
Tijani disclosed that the government would no longer leave investment in telecom infrastructure to private companies alone.
“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,” he said, per The Nation.
“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.”
Maida chipped in, saying: “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 are still some stakeholder engagements that we are going through, but you will hear from us within a week or two.”
Maida recounted that the NCC has over the years put a number of tools and instruments in place by revising its quality of service regulations for compliance with service quality.
He said it has 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.”
Balsingh, represented by Airtel spokesman Femi Adeniran, justified the request for tariffs hike, saying it is to ensure operators deliver superior connectivity and foster digital inclusion.
He explained that “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.”
Tariffs hike long overdue, say ATCON, ALTON
Association of Telecom Companies of Nigeria (ATCON) President Tony Emoekpere described the proposed approval to raise tariffs as a welcome development that comes after a very long time of stagnating tariffs at one level despite macro-economic headwinds.
His words: “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.
“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.”
Association of Licensed Telecom Companies of Nigeria (ALTON) Executive Secretary Gbolahan Awonuga, noted that the approval is coming after about a decade of stagnant telecom tariffs regime.
“We are excited over the approval. But as it stands now, we are not sure about the percentage increment the government has approved,” he stressed.
“But, it is a healthy development because we cannot afford to see the industry slip to the era of NITEL [defunct Nigerian Telecommunication Limited]. We welcome the development. Let us start from somewhere to save the industry,”
Association of Telephone, Cable Tv, and Internet Subscribers of Nigeria (ATCIS-Nigeria) President Sina Bilesanmi, who has consistently opposed the push for end user tariffs 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 told The Nation.
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