Telcos Call for Sustainable Investment, Effective Regulation to Drive Growth

Emma Okonji

Telecom operators (Telcos) under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON) have stressed the need for sustainable investment, effective regulation, and a conducive business environment to drive progress in the telecoms sector.
ALTON said the call became necessary in order to address the numerous challenges faced by the telecoms sector that are hindering the growth and development of the sector.

Chairman of ALTON, Gbenga Adebayo, said this during his address at the launch of the digital economy report by Groupe Spécial Mobile Association (GSMA), which held Thursday in Abuja.
According to Adebayo, the government must make efforts to address the challenges facing the telecoms sector, and he advised that the telecoms sector should not be a palliative to solve economic woes.

The GSMA digital report, launched in Abuja, highlighted the telecom’s eight per cent contribution to Nigeria’s GDP and 13.5 when considering the broader ICT ecosystem. The report also highlighted the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.

Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.

He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.

He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.

“The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concern. While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” Adebayo said.

He also said the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services. He stressed the need for collaboration among stakeholders, policymakers, regulators, and operators, in order to drive economic growth and fulfill the potential of the telecoms sector as a critical sector in Nigeria’s economy.