By Naomi Emovon
April 26, 2024
¦say price control mechanism threatens industry sustainability
The telecommunications companies operating in Nigeria are asking the Federal Government to facilitate constructive dialogue in the industry in order to address pricing challenges, saying the current price control mechanism is not in tandem with the economic realities.
The four telecommunications giants, Glo, MTN, Airtel and 9Mobile, say they are the only ones that have not reviewed their prices, arguing that the situation threatens the industrys sustainability and possibly erodes investor confidence.
The telcos, in a joint statement by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and Association of Telecommunication Companies of Nigeria (ATCON) on Thursday, telcos said there has not been an upward review of the general service pricing framework in the past 11 years.
In the statement signed by ALTON Chairman, Mr Gbenga Adebayo, and ATCON President, Mr Tony Emoekpere, they attributed the non-increment to regulatory constraints despite the adverse economic hardship.
For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industrys sustainability and can erode investors confidence, they said in the statement.
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.
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 said.
The telcos also expressed concerns on the worsening security challenges affecting the productivity of the services provided, urging the federal government come up with measures to tackle the menace.
Telecom infrastructure undisputedly plays a pivotal role in Nigerias national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.
Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators. We urge the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.
The industry also requires substantial investments in network expansion, maintenance, and technology upgrades, they said.
By Uyiosa Isaac
April 28, 2024
By David Ugolor
April 28, 2024
By Tobore Jerome
April 27, 2024
April 27, 2024 at 10:12 PM
March 12, 2024 at 09:21 AM
The Nigerian Observer is a daily newspaper published in Benin City, Edo State, Nigeria, since 1968 by the Bendel Newspapers Company Limited (BNCL) and is owned by the Edo State Government
Subscribe our newsletter for latest world news. Let''s stay updated!
© 2024 Nigerian Observer “ All Right Reserved.