Why Telcos Are Asking For 40% Tariff Hike On Data, Calls – ALTON

TECHDIGEST – The Association of Licensed Telecommunication Operators of Nigeria (ALTON), umbrella body of licensed telecoms operators has explained why the Mobile Network Operators (MNOs) have asked the industry regulator – the Nigerian Communications Commission (NCC) – to approve a 40 per cent increase in the cost of calls, SMS and data.

ALTON said the telecommunication companies based their request for 40 per cent hike on tariffs for data and calls on the rising operational costs in the country.

ALTON in a letter to the Nigeria Communication Commission (NCC), titled ‘Impact of the Economic and Security Issues on the Telecommunications Sector,’ said the decision to hike charges was based on an increase in energy costs, which has raised their operating expenses by 35 per cent.

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Their proposal means the price cap on phone calls will increase from N6.4 to N8.95, while SMS costs will also increase from N4 to N5.61. Gbolahan Awonuga, head of operations, ATLON, said the increase in charges was long overdue.

“We depend on diesel as our main energy source to keep our power stations running because we don’t rely on the national grid. And diesel price was moved from N220 per litre to N750 per litre.

“Since 2003, we have not increased our charges and this is nothing we can do except to start retrenching our staff to cut down costs.

“This is why we are appealing to the NCC to re-consider and make amends to the charges to reflect the prevailing realities,” he said.

The telecommunication industry is grappling with the impact of the economic recession in 2020, as well as the ongoing Ukraine/Russia crisis.

The recent introduction of five per cent excise duty on telecom services has also worsened the problem of multiple taxes and levies in the industry.

Source : Tech economy.ng

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