Telecommunications companies operating in Nigeria, including Glo, MTN, Airtel, and 9Mobile, are urging the federal government to facilitate constructive dialogue within the industry. They argue that the current price control mechanism does not align with economic realities and poses challenges to their sustainability.
In a joint statement by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) on Thursday, the telcos highlighted concerns about the pricing framework. ALTON Chairman, Mr. Gbenga Adebayo, and ATCON President, Mr. Tony Emoekpere, emphasized the need for government intervention to address pricing challenges.
“For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the statement noted.
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Despite economic hardships, the telecommunications industry has not adjusted its general service pricing framework upward in the last 11 years due to regulatory constraints, the telcos revealed. They called for a dialogue to establish a framework that balances consumers’ affordability with operators’ financial viability.
“Government needs to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” they urged.
Expressing further concerns, the telcos highlighted the worsening security challenges affecting service productivity. They called on the federal government to implement measures to tackle the menace, emphasizing the crucial role of telecom infrastructure in national security and socioeconomic growth.
“Attacks on cell towers, fiber optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators,” the telcos stated. They urged the government to prioritize the security of telecom infrastructure and collaborate with law enforcement agencies to combat vandalism effectively.
Additionally, the telcos emphasized the need for substantial investments in network expansion, maintenance, and technology upgrades to meet growing demand and improve service quality. They emphasized the importance of government support in creating a conducive environment for such investments.
“The industry also requires substantial investments in network expansion, maintenance, and technology upgrades,” they emphasized.