The Nigerian Communications Commission (NCC), has summoned telecom operators to a meeting over the latter’s tariff hike request.
Acting under the aegis of ALTON and Association of Telecom Companies of Nigeria (ATCON), the telecom operators entreated the federal government to approve their proposal to have a cost reflective tariff that would lead to increase in charges for calls, data and other services.
“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints. 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,” it argued in a statement ATCON and ALTON jointly issued.
Latest report said, NCC has invited the operators for talks over demand for end user tariff hike.
Sources said the proposed meeting between the regulator and operators would be used to weigh the options and bring about a win-win for all the stakeholders.
According to sources, “It’s expected that the conversation will end well for both parties. We had engaged the NCC some years ago, and it appeared we were on the same page but the regulator refused to acquiesce to our demand for political reasons. You know telephony is very important to every Nigerian.
“So, the authorities were scared an increase in tariff could backfire. Since the government could remove fuel subsidy and the heavens did not fall, it should allow the operators to increase tariff or else the industry will die. Every other sectors of the economy have hiked services cost. The Bankers Committee comprising the chief executive officers of the bank would sit without recourse to anyone, arbitrarily hike lending cost. The tariff on electricity which accounts for 50 per cent of our running cost has been increased without consultation with end users.”
