ATCON: Stagnation May Loom, Without Tariff Adjustment

Without higher tariffs, Nigeria’s telecom industry cannot compete on a global scale, says ATCON. For a while now the Nigerian Telecom Industry has been in the news with regards to the increase in the tariff which has not been favourable with the recent dollar instability as it affects the service delivery.

While acknowledging the public’s apprehension on the rise in telecom rates, the Association of Telecommunication Companies of Nigeria highlights the advantages that render the increase unavoidable.

In an interview with the News Agency of Nigeria in Ibadan on Wednesday, ATCON President Mr. Tony Emoekpere made this statement, Nigerians have been reassured by Tony Emoekpere, President of the Association of Telecommunication Companies of Nigeria (ATCON), that the recent hike in telecom tariffs is an essential step in maintaining and enhancing the nation’s digital infrastructure.

Emoekpere recognized the public’s apprehensions over the raise while stressing its long-term advantages. Given the economic realities that many Nigerians confront, Emoekpere admitted that the public’s anxiety was normal and anticipated.

However, pointing to its many advantages, he characterized the raise as an investment in Nigeria’s digital economy’s future.

Due to escalating infrastructure expenditures, high energy prices, various taxes, and volatility in foreign exchange, telecom operators have been operating under tremendous financial duress for years.

Expanding network capacity, enhancing service quality, and closing the digital gap have become more challenging as a result of these issues.

Nigeria’s digital infrastructure runs the danger of stagnating without price changes, which would make it more difficult for the nation to compete in the global digital economy, according to Emoekpere. He pointed out that these issues have made it more challenging to increase network capacity, enhance service quality, and close the digital divide.

He emphasized that the change was not only about price but also about making sure there were sufficient resources to preserve and raise the standard of the services that Nigerians depend on on a daily basis.

Because it would allow operators to provide 4G and 5G coverage to additional places, especially underserved areas, this price hike represents an investment in Nigeria’s digital economy’s future.

Network locations will be upgraded as a result of this augmentation to guarantee increased dependability. Additionally, it will speed up bandwidth to help fintech, healthcare, education, enterprises, and other vital digital services.

“The success of this move will ultimately be determined by real, measurable and real improvements in quality of service, including faster internet speeds, fewer dropped calls, and wider coverage, which will result in the digital transformation everyone desires.”

“That is the ultimate objective, and the telecom sector is totally dedicated to fulfilling this commitment,” Emoekpere stated. In order to facilitate digital transition, Emoekpere also emphasized other crucial industrial concerns.

He urged that “the focus should also be on fully enforcing Critical National Information Infrastructure protections to stop vandalism of telecom assets,” adding that “the focus should also be on simplifying Right of Way permits to speed up fiber deployment.”

He claims that the only practical way to guarantee the correct investments and high-quality service is to raise tariffs.

The Global System for Mobile Communications Association, he continued, has acknowledged the importance of sustainable pricing for long-term network investments.

If the government wants to genuinely promote digital transformation, he added, there are still other urgent sector issues that need to be resolved.

In order to expedite the deployment of fiber, the emphasis should also be on streamlining Right of Way permissions. And in order to guarantee digital inclusion in all areas, he stated, “we should once more emphasize the reduction of the multiple layers of taxation that telecom operators face at the federal, state, and local levels and provide incentives for rural broadband expansion.”

In order to prevent telecom asset vandalism, it should also concentrate on completely implementing the safeguards of the Critical National Information Infrastructure.

In order to guarantee digital inclusion in all areas, Emoekpere stated, “We should once more emphasize the reduction of the multiple layers of taxation that telecom operators face at the federal, state, and local levels and provide incentives for rural broadband expansion.” He pointed out the need for customer pleasure and rights regarding services which should come first.

“A noticeable improvement in quality, faster speeds, wider coverage, and greater reliability should accompany the tariff increase,” he said.

The good news, he said, was that the problems were in varying stages of resolution.

“We are optimistic that the current administration will make progress in these areas as well,” he said, citing recent achievements like the settlement of the USSD debt crisis as evidence.

This shouldn’t deter us from keeping in mind that customers are entitled to superior services.

“There should be a noticeable improvement in quality as a result of the rate hike, including quicker speeds, more dependability, and wider coverage.

According to Emoekpere, “the NCC has set clear quality service targets, and the telecom operators are geared toward meeting these expectations.”