Telecom Operators React to NCC’s 50% Tariff Adjustment Approval

Following the Nigerian Communications Commission’s approval of a 50% rate adjustment, telecom operators operating under the auspices of the Association of Telecommunications Companies of Nigeria (ATCON) have formally responded.

Although the 50% increase did not quite satisfy the operators’ demand for a 100% increase, ATCON pointed out that the decision shows the NCC’s recognition of the substantial operational difficulties the telecom sector faces and its dedication to maintaining high-quality service delivery for Nigerians.

ATCON praised the NCC’s consultative and cooperative approach in tackling these industry challenges in a press release issued by ATCON President Tony Izuagbe Emoekpere.

The TELCOs are awaiting the document of determination.

According to ATCON, its members are anxiously awaiting the NCC’s official Determination document, which should include comprehensive instructions on how to apply the new prices in accordance with the Nigerian Communications Act of 2003.

The authority claims that this document would be crucial in assisting operators and stakeholders in carrying out the changes and the expectations that go along with them.

“We recognize that this is a step towards closing the gap between operating expenses and revenues, even though the authorized tariff adjustment, which is limited to a 50% increase, does not entirely answer the operators’ desire for a 100% increase.

For the benefit of all Nigerians, it said, “this adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality.” 

For consumers to benefit from this, operators are dedicated to reinvesting the extra cash into improving network quality, extending digital access, and providing a better customer experience, ATCON told Nigerians that the rate revisions would ultimately benefit consumers.

The group emphasized that these money and expenditures would result in more coverage, better connectivity, improved network quality and creative solutions made to satisfy Nigerians’ changing requirements.

It stated that despite rising costs brought on by inflation, exchange rate instability, and the significant investments needed to satisfy rising consumer demand, telecom pricing in Nigeria have stayed unchanged for more than ten years.

ATCON pointed out that these difficulties have severely strained operators’ finances, endangering the sector’s viability in the industry as a pillar of Nigeria’s digital economy.

“The telecommunications industry is committed to supporting economic expansion and national development by cultivating an atmosphere of consistent investment,” the statement continued.

In addition to this and addressing these persistent industry issues and balancing the interests of consumers, thanking the NCC for striking a balance between operator and consumer interests, ATCON asked the Commission to continue to communicate openly with telecom operators in order to resolve persistent issues that impede operational effectiveness.

Citing growing operational costs and the need to support the sector, the NCC said Monday that it has authorized a 50% rate increase for telecom providers.

The ruling highlights the Commission’s regulatory authority under Section 108 of the Nigerian Communications Act, 2003, according to a statement signed by Reuben Muoka, Director of Public Affairs.

Citing insufficient engagement with subscribers and other stakeholders, the National Association of Telecommunications Subscribers (NATCOMS) has promised to contest the pricing increase in court in a legal challenge to the authorized tariff increase which needs to be addressed legally.

NATCOMS claims that important parties, including subscribers, were not sufficiently consulted before this decision was made.