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Tariff increase: Telecom operators target service improvement within three months 

Samson Akintaro by Samson Akintaro
February 3, 2025
in Sectors, Tech News
Nigeria may re-introduce telecom tax to obtain new $750 million World Bank loan 
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Telecommunications operators in the country have said they are working to ensure an improvement in the quality of their services even before the three-month timeline given to them by the Nigerian Communications Commission (NCC).

Speaking at the weekend during a forum of telecom CEOs and the media on the recently approved 50% increase in tariff, the Chief Corporate Services and Sustainability Officer of MTN Nigeria, Mr. Tobe Okigbo, said the operators have already begun the process of ordering new equipment to boost capacity.

“From NCC’s estimation, they expect that in three months, we should be seeing an uplift in service quality, but we will try to make it shorter because the truth is that the better the quality, the more money you spend, and the better for us.  

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“The mistake people make is that sometimes people think that telecommunication companies benefit from more quality. Every time you drop a call, we lose money; every time you’re unable to browse, we lose money,” Okigbo stated.

Other factors impacting quality of service 

Outside the issue of cost that will be addressed with the tariff increase, Okigbo noted that there are several other factors that impact quality of service in the telecom sector.

  • According to him, one such issue is the persistent fibre cuts and vandalization of telecom equipment.
  • He disclosed that at the last intervention meeting the telcos had with the government, MTN’s CTO shared that the company had been recording 37 fibre cuts daily, while Airtel’s  CTO revealed to the government that they record an average of 44 fibre cuts daily.
  • Also speaking at the forum jointly organised by MTN, Airtel, and 9mobile, the Chairman of the Association Licensed Telecommunications Companies of Nigeria (ALTON) Engr. Gbenga Adebayo said the operators would do their best to improve the quality of their services, but external factors would also determine the impact.
  • According to him, efforts will be made to ensure that Nigerians start seeing improvements within the three-month timeline.

“But if the extraneous factors are not resolved, I am sorry to say, we’ll have another conversation in three months.  

“If the frequency of fibre cuts continues, if people continue to steal batteries from base stations; if people continue to steal diesel from the sites, I think in three months we’ll have a different conversation,” he said.

Support for tariff increase 

While seeking subscribers’ understanding on the recently approved 50% increase in tariff, Adebayo said the hike was for the good of the economy as the sustainability of the telecom industry was under severe threat.

  • Adebayo assured subscribers that the new tariff regime would bring about improved services, more understandable pricing and increased support for the economy.
  • He said that the dynamics that led to the recent tariff review were influenced by various factors, including the price of diesel among others.
  • He added that if those factors were to change rapidly, the industry would also be forced to review its prices again.

Also speaking at the forum, the Director Corporate Communications and CSR, Airtel Nigeria, Mr Femi Adeniran, said the telecom operators in reaching out to the government for price increments had the customers in mind.

This, he said, was to ensure sustainability and availability of telecommunications to millions of Nigerians.

“We want to be able to serve our customers. Today there are over 100 million Nigerians connected to voice. And when you talk about voice, you’re talking about the lowest of the lowest. 

“I have people who, because they can make calls, they’re not spending as much as they would have spent on transportation. So, these are some of the drivers,” he said.

Backstory 

The NCC had on January 20 announced that it had approved a 50% tariff adjustment for telecom operators, citing rising operational costs and the need to sustain the industry.

  • The Commission in a statement signed by the Director of Public Affairs, Reuben Muoka, said the decision underlines the Commission’s regulatory role under Section 108 of the Nigerian Communications Act, 2003.
  • However, the National Association of Telecommunications Subscribers (NATCOMS) has threatened to challenge the approved tariff hike in court.
  • This decision, according to NATCOMS, was made without adequate consultation with key stakeholders, including subscribers.

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Tags: NCCtelecom operators
Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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