Telecom
ALTON Says 50 Percent Tariff Hike Good for Telcom Sector
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ALTON Says 50 Percent Tariff Hike Good for Telcom SectorAssociation of Licensed Telecoms Operators of Nigeria (ALTON) has said the 50 per cent raise in data and call tariff will benefit consumers.
![ALTON Says 50 Percent Tariff Hike Good for Telcom Sector](https://i0.wp.com/www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2023/03/ALTON-Chairman-Gbenga-Adebayo.png?resize=572%2C301&ssl=1)
Gbenga Adebayo, chairman, ALTON,
Gbenga Adebayo, chairman, ALTON, who stated this Tuesday, explained that the tariff increase was not taken lightly, but rather was a necessary response to the significant economic challenges facing telecom operators.
Adebayo said, “The industry has been grappling with escalating costs, including diesel, energy, and inflation, without a corresponding adjustment in tariffs for 12 years.
“This has resulted in unsustainable operational costs, prompting telecom operators to seek a tariff review to maintain the quality of their services.
“The 50 per cent tariff hike was approved by regulatory authorities after a thorough review of economic indices, and is in line with the provisions of the Communications Act.”
The ALTON chairman noted that consumers will be the ultimate beneficiaries of the tariff adjustment.
He called for policies that would stabilise the forex market to support industry growth.
Adebayo said, “Furthermore, smaller telecoms players, burdened by high debt profiles, have been particularly vulnerable to the economic downturn, making network optimisation crucial.
“I urge the public to recognise that rising costs are a global economic reality, and not unique to the telecom industry.
“I also wish to assure our subscribers that telecom operators are committed to improving services and attracting more investments, leading to job creation and better overall service quality.
“The industry is now in a stronger position than in previous years.
“With increased investments and improved infrastructure, we are confident that the sector will continue to drive economic growth and provide better services to Nigerians.”
Telecom
Suspend 50 Percent Telecom Tariff Hike, Reps Urge NCC
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House of Representatives on Tuesday directed the Nigerian Communications Commission (NCC) to suspend the recent 50 per cent hike in telecommunication tariffs.
The lawmakers cited the economic hardship being experienced by Nigerians owing largely to the removal of fuel subsidies.
The decision of the House was a sequel to the adoption of a motion of urgent public importance sponsored by Oboku Oforji, a member of the Peoples Democratic Party from Bayelsa State, during Tuesday’s plenary.
Titled, ‘Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs,” Oforji argued that though the telecommunications companies premised the hike on rising operational costs and the need for better service delivery; he noted that Nigerians were already going through a lot, just to put food on the table.
He said, “The House is aware that telecommunications companies have been advocating for the hike for the last eleven years. The Association of Licensed Telecom Operators of Nigeria and the Association of Telecommunication Companies of Nigeria argued that the telcos need cost-reflective tariffs in the face of adverse economic realities like record inflation of 34.6 per cent in November 2024 and losses resulting from foreign exchange fluctuations.
Oforji reminded his colleagues that “The National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship, and poor network service delivery.
“The telecommunications companies must improve on their service delivery (poor network), which Nigerians have been yearning for for years, before embarking on the increase in their tariffs.
“The far-reaching effects of these price hikes will deepen financial struggles for the average Nigerian, threaten the country’s vision of leveraging technology to drive economic revival, exacerbate poverty and widen existing inequalities, hitting lower-income families the hardest.”
He added, “Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance, stressing that “Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.”
He further argued that small businesses “which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden, noting that “It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to 7 per cent, potentially leading to the closure of businesses.”
In his contribution, Dominic Okafor, a member of the All Progressives’ Grand Alliance, justified the increment, noting that without the hike in tariff, service providers might find it difficult to deliver consumer satisfaction to millions of Nigerians.
“For these telecom service providers to improve their performances, they need to make money to make further investment in infrastructure but this increment should not go as high as 100 per cent,” he said.
Okafor’s position was however countered by Billy Osawaru, a federal lawmaker from Edo State, who called on the service providers to first improve the quality of their services before coming up with a hike in tariff.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was electricity tariff, now it is the turn of the telecom companies. Nigerians must enjoy these services.
“In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve,” he said.
Following the adoption of the motion, the House urged the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commission to suspend the impending hike in telecommunications tariffs until their service improved.
Telecom
NASENI CEO Mandates Institutes to Use Agency’s Technologies and Products
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There is a popular adage, which says, ‘Charity begins at home’. This statement sat appropriately with the new policy unveiled at the weekend by the Management of the National Agency for Science and Engineering Infrastructure (NASENI), directing all Development Institutes of the Agency to henceforth patronize themselves first, to ensure collaboration and to enhance the drive toward full commercialization of products and technologies from the Agency.
The policy approved by the Executive Vice Chairman/CEO, Mr. Khalil S. Halilu, highlights the importance of internal endorsement and usage of the Agency’s products to build market credibility and strengthen internal collaboration, coming as a critical step toward increasing the adoption and success of NASENI innovations in external markets.
Through an internal memo sent to all Acting Managing Directors and Overseeing Officers of NASENI Development Institutes across the country, dated 31st January 2024, the new policy called for inter-institute patronage to support commercialization strategy of the Agency.
The directive is requesting the 11 Development Institutes of NASENI with other emerging ones to patronize one another’s technologies, machines, equipment and innovations first as permitted by the procurement laws, before such products are released to external markets.
According to the circular, the new commercialization drive aims at enhancing inter-institute collaboration to support the commercialization of innovations developed within NASENI institutes, foster patronage and strengthen the overall strategy of the Agency’s products and solutions.
Also, the new policy which encourages active promotion, integration and utilization of products developed within the NASENI ecosystem will not only boost the internal confidence of the Agency’s products but will also help to refine them through real-world applications before being introduced to external markets.
Some key components of the policy include:
Mandatory Product Integration:
This requires all institutes to prioritize products developed within NASENI in their procurement plans, such as NASENI-branded laptops, especially in cases where procurement budgets allow. This initiative aims to create a consistent internal promotion of NASENI innovations.
Internal Pilots and Testing: Each institute will implement internal pilot programs to test products in real-world settings, providing valuable feedback for further product refinement.
Inter-Institute Product Showcases: Bi-annual events will be organized for institutes to showcase their innovations, share insights, and collaborate on integration opportunities. Also, Institutes are encouraged to create mini-showrooms in key urban locations to exhibit both their products and other NASENI innovations.
Promotion of Cross-Institute Training: Training sessions will be conducted across institutes to equip staff with the skills necessary to use and promote products from other institutes effectively.
Internal Endorsement and Support for Partnerships: Internal leadership will endorse the usage of NASENI’s products, enhancing market credibility for external commercialization. Institutes are encouraged to prioritize products from existing partnerships like the NASENI-IMOSE collaboration.
Reporting and Evaluation: A review mechanism will be put in place to monitor the progress and challenges related to product adoption. Regular reports from each institute detail product usage, feedback, and challenges faced, aiding continuous improvement.
According to the new policy, it is expected that Stronger Internal Confidence is built to enhance internal usage and validation of products, making them more attractive for external markets, enhanced collaboration, foster a collaborative culture amongst institutes and facilitating support for one another’s innovations.
Other expected outcomes are: External Commercialization Model for Successful internal integration expected to provide a reliable model for external adoption and Improved Product Development for feedback, ensuring products meet high standards before market introduction.
Telecom
Vitel Wireless Makes History as First MVNO to Get Mobile Number Series
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Vitel Wireless, a mobile virtual network operator (MVNO) has made history as the first operator in Nigeria to be allocated a mobile number series by the Nigerian Communications Commission (NCC).
MVNO is a telecommunications company that leases network capacity from another mobile network operator (MNO) and then resells it to consumers.
MVNOs offer wireless services like mobile network operators, but they don’t own the physical network infrastructure.
NCC in a statement, it noted that the allocation of the 0712 mobile number series marks a significant step in Nigeria’s evolving telecom landscape.
“The Nigerian MVNO market has historically been tightly regulated, with only a few players entering under stringent licensing requirements. Vitel’s emergence as a fully licensed MVNO, complete with its own number series, highlights the country’s growing openness to competitive and innovative telecom solutions aimed at improving service delivery and accessibility,” the statement read.
Reacting to the development, Kenneth Nwabueze, chairman and CEO of Vitel Wireless, said the company’s acquisition of its unique mobile number series, 0712, demonstrates the trust and confidence of the NCC in the company’s vision and readiness to serve the Nigerian market.
“As part of its international readiness, Vitel was also issued by NCC its own international routing code, enabling seamless international connectivity and positioning the company to offer high-quality global telecommunications services.
“Having successfully met all government regulatory requirements, Vitel Wireless is now prepared for a smooth market entry and poised to launch innovative, affordable and customer-focused services across Nigeria,” he added.
Going forward, he said the company has a focus on leveraging the latest technology, offering tailored solutions that meet the diverse needs of individuals and businesses.
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