Telecom Industry At Breaking Point: MTN Seeks Double Rates Amid Soaring Costs

Telecom Industry At Breaking Point: MTN Seeks Double Rates Amid Soaring Costs

In a bold revelation, MTN Nigeria’s CEO, Karl Toriola, disclosed that telecommunications companies in Nigeria are lobbying for a drastic 100% tariff increase, though the decision now lies with the Nigerian Communications Commission…Telecom Industry At Breaking Point: MTN Seeks Double Rates Amid Soaring Costs

(NCC).

Speaking on ireporteronline, Toriola emphasized that the tariff hike is crucial for the industry’s survival amid escalating operational costs. However, he expressed doubts that the NCC would approve such a steep increase due to the sensitive economic climate in the country.

The telecommunications sector has been under financial strain from rising costs, including inflation, volatile exchange rates, and soaring prices for diesel and other essentials. Toriola remains hopeful that regulators will make informed decisions that ensure the sector’s long-term viability rather than focusing solely on immediate profits.

“Although we’re all aligned on addressing industry challenges, we must ensure that the human rights and overall economic health of the country aren’t compromised,” Toriola stressed.

The tariff increase proposal comes on the heels of mounting pressures from operators, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON). The association warned that without a tariff adjustment, service disruptions may occur, and operators may even cut services in certain areas.

The proposal, which first surfaced in April 2024, has yet to gain approval. ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) are calling for urgent dialogue with the federal government to balance consumer affordability and industry sustainability.

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