Support tariff hike for industry sustainability, telcos urge subscribers

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The Telecommunication operators have appealed to subscribers to support  the recent tariff hike by the Nigerian Communications Commission (NCC), as it is in the interest of all stakeholders.

By Stellamaris Ashinze

The Telecommunication operators have appealed to subscribers to support  the recent tariff hike by the Nigerian Communications Commission (NCC), as it is in the interest of all stakeholders.

The president, Association of Licenced Telecommunication Operators of Nigeria (ALTON), Mr Gbenga Adebayo, gave this advice at event tagged a “Forum with Telcoms CEOs’’ on Saturday Evening in Lagos.

Adebayo said that the industry’s sustainability was crucial to driving the economic and essential infrastructure.

He said that it had been a long journey for all in the industry,   adding that the tariff hike was for the good of the economy.

‘”You may observe that in all the conversations we have had,  and in responding to all the brilliant questions that have been raised here today, we have not spoken about profit.

‘’So we have been talking about industry sustainability so that we can continue to be the driver of the economy and the development of infrastructure.

‘’So,  my appeal is that subscribers are the reasons why we are in business, we would not be having this conversation if we do not have the subscribers interest at heart,’’ he said.

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 said that if those factors were to change rapidly, the industry would also be forced to review its prices again.

On the issue of price control, he said that it would not benefit anyone, citing the example of the electricity sector where price control had not yielded the desired results.

Adebayo said that leaving tariffs to market forces would ultimately benefit subscribers, as long as there were no interferences that could disrupt the market.

The Chief Corporate Relations Officer, NCC, Mr Tobechukwu Okigbo, attributed the collapse of prices in the telecoms sector to the regulatory efforts of NCC.

Okigbo said that the prices went down from N14,000 SIM to almost free SIM due to the work NCC had done over time.

He said that the NCC’s role in price control could be minimised if the industry were to reach a point where approvals were no longer required for every single issue.

The Director, Product Innovation and Business Development,  9mobile, Mr Kenechukwu Okonkwo, said that the regulator’s role was to ensure a fair market and level playing field.

Okonkwo said that operators competed naturally to offer better services to consumers.

He said that as operators gained efficiencies, they translate those into better offers for consumers, adding  that the regulator did not dictate rigid prices.

He said that regarding data consumption, there were many factors contributing to data depletion.

He listed such factors to include automatic downloads from WhatsApp groups and subscriptions to news notifications.

“Many of us belong to WhatsApp groups where people post all kinds of things.

“If you do not specify “do not download”, every single thing gets downloaded onto your phone, consuming your data,” he said.

The Director also said that subscriptions to news notifications could lead to background data consumption, contributing to data depletion.

To address concerns about data depletion, he said that operators were investing in education of consumers on how to manage their data usage effectively.

“We are trying to educate consumers on little hacks to make sure their data does not go to waste.

“This us to ensure  that they are more in control of how they use and manage their data,” he said.

Okonkwo said that telecommunications operators were audited regularly by  regulators to ensure transparency and fairness in their operations.

Also speaking at the event, the Director Corporate Communications and CSR, Austell Nigeria, Mr Femi Adeniran, emphasised the importance of focusing on customer needs and improving services.

Adeniran said that Nigeria’s huge economy and large population presented opportunities for all players in the telecommunications sector.

He said that each player would earn its own share of the market.

“We are focused on servicing our customers, understanding their needs, and providing for all the different types of customers that we have based on their consumption,” he said.

He said that what was important was access, connectivity, availability and affordability, and that the industry should welcome and embrace all innovations that achieve those goals.

The News Agency of Nigeria (NAN) reports that NCC recently approved increment of 50 per cent tariff adjustments to operators.

The commission said that its approval, though less than the 100 per cent hike demanded by operators, was in response to prevailing operational costs.

It said that its decision was in pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 to regulate and approve tariff rates and charges by telecommunications operators.

According to the NCC  while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments,” it said.

It said that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.

The NCC said that consumers would benefit from better network quality, enhanced customer service and wide coverage within the country. (NAN)

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