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Telcos threaten disconnection of select areas over rising operational costs

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Telcos threaten disconnection of select areas over rising operational costs

By Jeffrey Agbo

Telecommunications operators in Nigeria have raised alarms over the possibility of service disruptions unless tariffs are adjusted to offset escalating operational expenses.

Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, issued a statement on Monday, describing the telecom sector as “under siege.” He attributed the crisis to inflation, fluctuating exchange rates and surging energy prices.

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Despite these mounting challenges, Adebayo noted that telecom tariffs have remained stagnant, forcing operators to struggle in maintaining service quality and expanding network infrastructure.

“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding.

“Operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.

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“There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” he enumerated.

Adebayo further emphasised that the financial burden on operators has reached unsustainable levels, endangering the sector’s ability to modernise and maintain critical infrastructure.

Despite the challenges, he expressed hope for a more sustainable future, provided action is taken promptly.

He stressed that the current challenges are not temporary and called for immediate intervention to secure the sector’s long-term viability.

The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved.

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