Inflation: Telecommunications Operators Plan Tariff Increase

Inflation: Telecommunications Operators Plan Tariff Increase

Telecommunication companies are proposing a 40 per cent increase in the cost of calls, SMS, and data to the Nigerian Communications Commission as a result of the rising cost of running a business in the nation.

THECONSCIENCENG reports that with the new proposals, the price floor of calls will increase from N6.4 to N8.95 while the price cap of SMS will increase from N4 to N5.61.

This was revealed in a letter titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector,’ which was sighted by our correspondent.

The letter was written by the telecommunications companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria to the NCC.

In the letter, the telecom companies said there had been a 40 per cent increase in the cost of doing business in the nation.

According to them, the telecommunication industry has been financially impacted following the nation’s economic recession in 2020 and the effect of the ongoing Ukraine/Russia crisis.

They said this had resulted in an increase in energy costs, increasing their operating expenses by 35 per cent.

They added that the introduction of the recent excise duty of five per cent on telecom services had further increased the burden of multiple taxes and levies on the industry.

The umbrella body for telecom companies added that to further help telcos during this economic crisis, the commission should explore and provide other means of penalising operators rather than punitive monetary sanctions; extend the payment timeline of relevant regulatory levies and fees; prevail on the Federal Government to sign the executive order declaring telecoms infrastructure as a critical national infrastructure to mitigate cost spent replacing damaged and stolen infrastructures, among other things.

 In the annexure one section of the letter, the body requested an upward adjustment of the MTR by 40 per cent.

It said, “For large operators, new interim MTR of N5.46 from N3.90 reflecting 40 per cent increase in the cost of business.

“For small operators, new interim MTR of N6.58 from N4.70 reflecting 40 per cent increase in the cost of business.”