Telcos Mull Regional Tariff Plans To Mitigate Challenges
Telecommunications operators in the country are considering a review of the current national tariff plans to usher in a regional tariff regime where they are able to factor in the specific challenges in each state to their tariff plans.
The operators stated this at the 7th edition of the Policy Implementation Assisted Forum (PIAFo) in Lagos.
According to them, a regional tariff regime would ensure that the states with better ease of doing business are compensated while those making their operations difficult are made to pay higher for the service.
Specifically, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo said some states are very difficult to operate and this should be factored into the cost of operations.
“We may have to reconsider issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas to the cost of providing services,” he said.
Corroborating his ALTON counterpart, the President of the Association Telecommunications Companies of Nigeria (ATCON) Mr. Tony Emoekpere said the current national tariff is unfair because different regions have different operational costs.
The consideration came against the backdrop of difficulties faced by telecom operators in some states through multiple taxation and attacks on their infrastructure.
According to Emoekpere, states that make operations easy for the telcos should be compensated while those making things difficult should be made to pay more.
“If it costs me extra to haul diesel from one part of the country to another, I should be able to add that cost to the service or you compensate me for that by making your environment attractive for me to operate,” he said.
Earlier, speaking on the theme of the conference: “Strengthening Protection of Critical Information Infrastructure through Proactive Implementation and Strategic Coordination,” the convener of PIAFo, Mr Omobayo Azeez, said that there was the need for stakeholders to work together to protect Nigeria’s digital economy.
Azeez said that the recent passage of the Critical National Information Infrastructure (CNII) Order by President Bola Tinubu was a significant milestone in strengthening Nigeria’s digital economy.
The Nigerian Communications Commission (NCC) recently approved a 50% tariff increase for telecom operators after years of agitation over the rising operation costs in the country.
The telcos as regulated by the NCC, currently operate a national tariff regime, whereby the subscribers pay the same tariff irrespective of their location in the country.
The suggestion of a regional tariff regime to reflect the cost of operations in each region is still subject to regulatory approval as the NCC must approve all tariff plans for the telecom operators.
