Telecommunications operators in Nigeria are considering shifting from the current national tariff structure to a regional tariff regime that accounts for state-specific operational challenges.
They say this is because the challenges and costs of running their businesses vary significantly from state to state.
Currently, phone companies in Nigeria have a single national tariff for their services, meaning everyone pays the same amount no matter where they live.
However, the telcos argue that this system doesn’t account for the fact that some states have higher operating costs due to issues like attacks on their equipment and multiple taxes.
This proposal was discussed at the 7th edition of the Policy Implementation Assisted Forum (PIAFo) in Lagos, where industry leaders highlighted the need for a pricing model that reflects the ease—or difficulty—of doing business in each state.
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), specifically pointed out that the high cost of doing business in some states is a major concern and increases their expenses. He suggested that if negotiating with certain states to reduce these costs is impossible, then the added expense of operating there should be reflected in the service prices in those areas.
“We may have to reconsider the issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas into the cost of providing services,” he said.
Tony Emoekpere, president, Association of Telecommunications Companies of Nigeria (ATCON), agreed that the current national tariff is unfair because operational costs are not the same across the country.
He believes that states that make it easier for telecom companies to operate should be rewarded, while those that create difficulties should see higher service costs.