Airtel Nigeria backs name for tariff adjustment as operational prices surge by over 300%  

Airtel Nigeria has added its voice to the industry-wide name for an upward evaluation of tariffs within the telecom sector, saying the prices of operation have gone up by over 300%.

The Chief Govt Officer of the corporate, Mr. Dinesh Balsingh, who said this in an op-ed, mentioned the changes are important for sustaining high-quality providers and enabling additional developments in Nigeria’s digital transformation journey.

“For over a decade, tariffs have remained static regardless of the dramatic improve in working bills, which have surged by over 300% within the final 18 to 24 months alone.  

“To proceed offering high-quality providers and assembly the rising demand for digital connectivity, it has change into important to realign our pricing construction with financial realities,” Balsingh mentioned.

The necessity for extra investments 

The Airtel CEO additionally underscored the numerous investments required to keep up and increase telecom infrastructure, which is pivotal to supporting Nigeria’s digital financial system.

“The rising demand for digital providers throughout sectors resembling schooling, banking, and healthcare requires us to repeatedly improve our networks to ship extra capability and enhance service high quality.  

“These investments come at a value, one which should be shared proportionally to ensure long-term viability,” he mentioned.

• The proposed tariff changes, Balsingh argued, won’t solely make sure the sustainability of the telecom sector but additionally enhance service supply.
• He added that by enabling the telecom operators to increase protection, strengthen community safety, and introduce cutting-edge applied sciences, the changes would immediately improve the standard of connectivity for Nigerians.
• In accordance with him, the telcos’ precedence is to make sure that nobody is left behind within the nation’s digital transformation journey.

What it is best to know 

Final week, the Chief Govt Officer of MTN Nigeria, Mr. Karl Toriola, mentioned telecom operators within the nation had requested an roughly 100% improve to make sure the {industry}’s sustainability reasonably than increase short-term profitability.

• Sharing the identical sentiment as Airtel’s CEO, Toriola mentioned the telecom {industry} is now dealing with a sustainability risk that should be addressed by way of a tariff evaluation.
• He, nonetheless, famous that the telecom regulator, the Nigerian Communications Fee (NCC), might not approve the 100% improve requested.

“We’ve put ahead a request of roughly 100% tariff will increase to the regulators. I doubt they’re going to approve that quantum of will increase as a result of they’re very delicate to the present financial state of affairs within the nation,” he mentioned.

The 2 telecom {industry} associations in Nigeria, the Affiliation of Licensed Telecom Operators of Nigeria (ALTON) and The Affiliation of Telecommunication Corporations of Nigeria (ATCON) have additionally been on the forefront of advocacy for tariff evaluation within the {industry} for over two years, citing improve in prices of operations.