Temitayo Jaiyeola



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.

Based on their proposal, 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 letter read in part, “As the commission may be aware, the power sector under the supervision of its Nigerian Electricity Regulatory Commission of the power sector in November 2020 undertook a review of electricity tariffs to cater for the economic headwinds reported above.

“In view of the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members. Details are hereunder:

“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.

“With respect to voice an SMS cost, ALTON respectfully requests the commission to consider a mark-up approach to address the upward price adjustment desirable for the industry. We have enclosed herein and marked as ‘Annexure 1’our proposal in that regard.

“For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report, are attached and marked ‘Annexure 2’ to provide a further illustration.

“In implementing the said recommendations, however, we recommend that the 40 per cent increase in the cost of doing business be factored in to arrive at a cost price per GB in view of the current economic situation.”

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.”

https://punchng.com/nigerians-to-pay-more-as-gsm-operators-plan-40-tariff-hike/

Lalasticlala

Company wey dey run on diesel nd still av staffs to pay what du u expect...

God safe us.

Buhari dey deal with us.
NNPC no leave us behind.
Nepa is on our Neck.
Food stuff we no see money buy.
Now GSM operators dn come.

Na to finish us kpatakpata remain.

It is finished kpata kpata. And some fools will collect the bread below and still vote their future away..

Is there any sector of the economy that Buhari's administration has never touched negatively?

In Abuja since after that fuel and diesel scarcity, it's like Glo and other network decided to switch off some of their Base Station mast in other to save cost.

Because in my area Glo 4G was very strong. But during that Nepa blackout and fuel scarcity the network turned to 2G ever since.

Everything is just so damn hard under Buhari

Thank God Tilumbu will not succeed him, it would have been harder

Hmmn

₦1000 is now as useless as ₦200.. terrible hyper inflation, horrible devaluation of naira, closure of land border, increase in tax, increase in custom duty, increase in diesel , petrol, gas , Electricity bill

I just wonder what life is like in Zimbabwe and Venuzuela



.

Buharinomics

Una no serious at all

As if we no dey pay more. Nigeria is a living hell

I can't say I blame them for wanting to hike their tariff, the price of everything in the market is already going up

And it will never come down again

Let them hike na

One cant blame them though..we all know the rate at which the cost of living has tripled for the common masses. Companies are not left out

Not surprised...... this company runs diesel 247

Las las e go reach everybody including the brain-dead zombies here on nairaland

Everybody just dey inflate, what do you expect from a lawless and corrupt country. Smh

Increase will see a sharp decline of activities on their respective network

SMS is no more relevant today. I wonder why they want to increase the fee.

It is no rocket science. Diesel is expensive. Any company trying to beat a competition now like tstv is certainly going to pack up, it's over. Na wetin non-patriots like bring for us because of their wickedness and selfish interest.

Mooh247:





₦1000 is now as useless as ₦200.. terrible hyper inflation, horrible devaluation of naira, closure of land border, increase in tax

I just wonder what life is like in Zimbabwe and Venuzuela

.

No need to wonder, you are already living the life

Glo no longer gives free bonus data and airtime.If I recharge,I will receive messages that I have been credited with bonus data and airtime.After 5minutes I will receive another message that my data and airtime bonus have expired.I never even use the bonus sef.

Na Airtel worst pass.If I recharge my Airtel line.I go receive messages say 'i have been credited with 750naira airtime bonus.If I make 5 seconds call,I go receive another message say my airtime don finish.

Alright. Nigeria economic system always defying the laws of gravity. What goes up never comes down in Nigeria.
No shaking what else can the populace do when democratic representative are dormant.

They have been using diesel from time immemorial I'm saying this because there is no rational explanation for their action...Masses can't continue suffer from this company.

You buy data of 5k you can't use it for 10 days.

inoki247:
Company wey dey run on diesel nd still av staffs to pay what du u expect...

It's all well and good. They should also be tasked to improve the quality of their services to Nigerians.