Telecom Operators Warn Of Service Disruptions Amid Rising Costs

Ikeja, Lagos State- Telecommunications operators in Nigeria have issued a warning of potential service disruptions unless tariffs are adjusted to address rising operational costs.

In a statement released on Monday, Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, said the sector is “under siege” due to inflation, volatile exchange rates, and surging energy prices.

Adebayo pointed out that despite these increasing costs, tariffs have remained stagnant, leaving operators unable to sustain quality service or expand network coverage.

He stressed that without an urgent tariff adjustment, service shedding may become inevitable, potentially limiting telecom services in various regions across the country.

He cited a combination of inflation, volatile exchange rates, and rising energy prices as key factors driving up operational expenses.

Adebayo noted that despite these challenges, tariffs have remained unchanged, putting operators under severe strain as they struggle to maintain service quality and expand their networks.

He further warned that without an immediate adjustment in tariffs, operators may be forced to scale back services, potentially leading to limited telecom availability in certain regions.

Adebayo warned that if no action is taken, the new year could bring severe consequences, including service shedding.

He said, this means telecom providers may be unable to offer services in certain areas or at specific times, leaving millions of people disconnected.

The economic impact would be significant, as businesses relying on connectivity would face setbacks, stalling growth and innovation.

Adebayo explained that key sectors like security, commerce, healthcare, and education, all of which depend heavily on telecom infrastructure, would also suffer major disruptions.

Service shedding refers to the intentional reduction of telecom services in certain areas or at certain times due to operational difficulties faced by telecom companies.

Adebayo further said that the financial strain on telecom operators has become unsustainable, putting the sector’s ability to modernize and maintain essential infrastructure at risk.

However, despite the challenges faced this year, he remains hopeful for a more stable future, provided timely action is taken.

He stressed that the current issues are not short-term and called for immediate intervention to ensure the sector’s long-term viability.

The first request for a tariff adjustment was made in April 2024, but little progress has been made since.

In light of the mounting financial pressures, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria issued a joint statement urging the Federal Government to engage in meaningful discussions with industry stakeholders.

The associations explained the importance of creating a framework that balances consumer affordability with the financial sustainability of operators, following over a decade of tariff stability.

With a shared commitment to safeguarding the sector’s future, operators are urging all stakeholders to act quickly, warning that failure to do so could jeopardize the survival of one of Nigeria’s most vital industries.