Rising diesel price threatens telecom service, operators say

Telecom infrastructure

Rising diesel price notches more than N700 per litre

By Jeph Ajobaju, Chief Copy Editor

Diesel pump price has reached more than N700 per litre, threatening businesses that rely on it for power supply, including telecom providers who say rising costs are impacting negatively on their operations.

Association of Licensed Telecommunications Operators of Nigeria (ALTON)  President Gbenga Adebayo said network planning, operational expense, and projection plans for telcos are based on diesel prices.

He expressed concern that the rising cost of diesel will further drive the high cost of business and urged Abuja to intervene and prevent operators having to raise prices.

“Diesel is now very expensive, from N250 to over N700. All network planning, operational expenses, and planned projection for the year is based on the fact diesel prices. This has increased. Today, you know the implication of that. This is one problem; cost has gone up,” Adebayo lamented in Lagos.

He said telcos are also struggling with the non-availability of diesel and the logistics of delivering it to sites.

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Appeal for government intervention

“We will be approaching the government for some form of intervention. But we are mindful of the high cost of living, and the implication of this on the economy and citizens. And so, we are not going to talk about direct price increases.

“But we will be approaching the government for some kind of intervention to cushion the effect of these changes on us as an industry,” Adebayo added, per reporting by The PUNCH.

He said if network providers are unable to get government intervention they would approach the Nigerian Communications Commission (NCC) to push for realistic pricing, which would reflect the dynamics and reality of the business climate.

Adebayo insisted that ALTON can no longer tolerate the actions against telecom service by some states such as Kogi and the Federal Capital Territory (FCT).

“We are saying that if the government does not do something in the next seven days, we may have to call on our members to take action that would force the government to do something.

“We are not going to power down the national network. So, it is not a threat to shut down the network site of the nation. But we would be left with no other option but to seek government intervention at higher levels to do whatever is possible to compel the government of Kogi and FCT to do something.”

Jeph Ajobaju:
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