Nigerian telecom companies proposed 40% tariff increase

Nigerian telecom companies proposed 40% tariff increase

The letter said the fee for calls will increase from N6.4 to N8.95 while the price cap for SMS will increase from N4 to N5.61. The association said the telecommunications industry had been financially challenged by an economic downturn that occurred during the COVID-19 pandemic in 2020 and the ongoing Russia-Ukraine war. They noted that the war had resulted in a 35 per cent increase in their operating expenses due to an increase in energy costs.

According to the letter, the fee for calls will rise from N6.4 to N8.95, while the price cap for SMS will rise from N4 to N5.61. Oge Udegbunam’s 4th of May, 2022 1 minute of genuine time Under the auspices of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), telecommunications operators have proposed a 40% increase in call and SMS tariffs. According to PUNCH, the operators said the decision was necessary due to the rising cost of doing business in the country, citing a letter from ALTON to the Nigerian Communications Commission (NCC).

Highlights

  • “Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments. “For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report are attached and marked ‘Annexure 2’ to provide a further illustration,” it added.

  • ALTON added that the introduction of the five percent excise duty on telecom service providers has heightened the burden of multiple taxes and levies on the industry. “ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members,” it said.

The spokespersons for the phone companies and the regulator, NCC, did not respond to calls and messages seeking comments. Support PREMIUM TIMES’ journalism of integrity and credibility. Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government. For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour. By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.