Discordant Tunes Trail Planned Hike in Telecoms Tariff

Emma Okonji

Just as telecoms operators are pushing for 100 per cent hike in telecoms tariff, some groups are vehemently opposing the call for tariff hike, insisting it will be additional burden on telecoms subscribers.
Telecons operators under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON) had written to the telecoms industry regulator, the Nigerian Communications Commission (NCC), demanding for a 40 per cent hike in voice and data subscriptions.

But recently, telecons operators are demanding for 100 per cent tariff hike in order to ensure industry sustainability.
Opposing the request for tariff hike, members of the National Association of Telecoms Subscribers (NATCOMS), condemned the planned hike, insisting that the planned hike negates the interest of telecoms services consumers, and will bring hardship on subscribers.

National President of NATCOMS, Chief Deolu Ogunbanjo, said with the planned tariff hike, a voice call will rise from N11.00 to N15.40 per minute, short message services will jump from N4.00 to N5.60 and one GB data bundle will move from N1,000 to N1,400 at 40 per cent increase in telecons tariff.

According to Ogunbanjo, “This represents additional digital costs consumers will have to square up with at the beginning of a new year among other harsh economic realities of Nigeria of today.
“This, undoubtedly, is against public interest. NATCOMS sees the increment as an official policy to price telecoms services out of the reach of generality of the citizens of this country.

“Telecoms services are taxable services under the Value Added Tax Act. The Act was amended in 2019 by the Finance Act of that year to raise the tax rate from 5 per cent to 7.5 per cent which was 50 per cent increment and the increment has been borne by the consumers of telecoms services.
“That increment brought about untold hardship to our members many of who have been forced to cut back on their Telecommunication requirements.

“As if that was not bad enough, the federal government got the National Assembly to enact the Finance Act of 2020. Former President Muhammadu Buhari by an order prescribed 5 per cent as the rate of the excise duty charge, chargeable for telecommunication services.”
The Association of Telephone, Cable TV and Internet Service Operators (ATCIS), has also kicked against the request for planned tariff hike.

ATCIS President, Mr. Sina Bilesanmi, told THISDAY that telecoms subscribers were not getting value for their money, and that ATCIS would continue to oppose such planned tariff hike until telecoms operators fix their networks and offer quality service.

“Telecons operators should fix their networks and consult with telecoms subscribers. 100 per cent increase will ground the economy. Transparency and accountability are what we need,” Bilesanmi said.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, has expressed the need for telcos to increase tariffs as a measure of sustainability.

Toriola made this known during a recent interview with Arise TV, in which he highlighted the sector’s current state, its potential for aiding economic growth, and the need for reforms to ensure its advancement and sustainability.

“We’ve put forward requests of approximately 100 per cent tariff increase to the regulators. I doubt they are going to approve that quantum of increase because they are very sensitive to the current economic situation in the country,” he said.

Toriola however expressed optimism about the implementation of reforms that will enable the telecoms sector’s sustenance, considering the obvious challenges it is presently faced with.
“We’re hopeful and optimistic that the realities are staring us in the face and the right decisions will be taken for the sustainability of the industry,” Toriola said.