Telcos Ask Reps to Approve Tariffs Hike, Remove Bottlenecks

Telecommunications operators in the country have taken their clamour to raise call tariffs and data prices to the House of Representatives.

The telcos want the representatives to approve tariff increase, cut multiple taxes, arguing that the cost of doing business in the country had risen sharply in recent months, negatively impacting their businesses.

The approval was sought at a  meeting at the weekend with the House Committee on Communications, led by Peter Akpatason,  chairman of the committee and Association of Licensed Telecoms Operators of Nigeria (ALTON), led by Gbenga Adebayo,  chairman.

At the meeting the telcos, listed areas of concerns as: refusal of the Federal Capital Development Authority (FCDA) to grant build permit for infrastructure roll-out to service providers in Abuja; non-passage of the Critical National Information Infrastructure Bill into law; multiple taxation; and non-review of pricing regulatory framework, among others.

ALTON explained that provision of telecoms service in Abuja has been hampered by the refusal of FCDA and Abuja Metropolitan Management Council (AMMC) to permit members to build sites.

Adebayo said despite concerted engagement, FCDA has insisted that due to the need to maintain the Abuja Master Plan, it would not grant approval to telecoms operators to build new sites.

He noted that telecoms services depend on terrestrial infrastructure. And without these, quality of service cannot be guaranteed.

He said: “In view of the huge investment towards deployment of telecoms infrastructure in the FCT, our members are indeed concerned about this development, given its significant impact on their ability to meet regulatory obligations and consumer expectations.

“Given its position as the seat of government and host to several key functionalities of government, with an ever-increasing population, our members have been unable to match infrastructure deployment with growth patterns and on-ground requirements of the FCT.

“This is evidenced by unsatisfactory service reception within locations in the FCT, resulting in dropped calls and complaints of unsatisfactory service experience.”

Adebayo said other highly regulated sectors, such as power and insurance, have implemented price increases over the last year.

He said insurance prices have risen 200 per cent, with power hiking prices by over 40 per cent.

He added that telecommunications is the only sector that has not experienced a pricing regulatory framework review, notwithstanding local and global macroeconomic realities.

Adebayo, who pleaded for reduction in about 49 different taxes imposed on the industry, said: “The impact of increase in diesel cost is dire for telecommunications operations, particularly for our members in the collocation segment.

“The 300 per cent increase in diesel cost, which was implemented at the beginning of the year, humongous indebtedness in the industry, lack of access to and increased rate of foreign exchange to service their operations, dire levels of insecurity across the country with increased theft and damage to our members’ sites, have all prevented members from running their business efficiently and profitably.”