Telecom Tariff Hike: Will Nigerians Finally Get Better Service?

Nigeria’s telecom sector is on the brink of a major change. A new tariff regime is coming, and that means price hikes for millions of subscribers. But will this translate to better services, or will Nigerians continue to suffer from dropped calls and poor connections? Let’s dive in.

Key Points:

  • Telecom operators are pushing for a tariff increase.
  • Subscribers are demanding better service quality in return.
  • The government has indicated a potential approval for a hike, albeit moderate.
  • Experts highlight the need for more spectrum and better infrastructure.
  • The big question: Will higher prices equal better connectivity?

The Struggle is Real: Poor Telecom Service in Nigeria

For years, Nigerians have battled with abysmal telecom services. We’re talking dropped calls mid-conversation, data that vanishes faster than a plate of jollof rice at a party, and customer service lines that sound like they’re located on the moon. This isn’t just a Lagos problem, it’s a nationwide struggle from Uyo to Kebbi. Whether you’re on MTN, Glo, 9mobile, or Airtel, chances are you’ve felt the pain.

Operators Cry Foul: Why the Hike?

Telecom operators claim they’re bleeding money. They point to the devaluation of the Naira, soaring inflation, and the high cost of doing business in Nigeria. According to them, the current pricing is not sustainable, and they need the increase to invest in infrastructure. They argue that the last tariff hike was over a decade ago, while costs have gone through the roof. The operators say they need to increase tariffs just to survive and provide a better service.

What the Big Telcos Are Saying

MTN Nigeria’s CEO, Dr. Karl Toriola, has stated that 2024 was a rough year for the industry due to economic challenges, with costs exceeding revenue. Airtel Nigeria, through its spokesperson, has also emphasized the need for tariff adjustments to improve services and foster digital inclusion. 9mobile’s CEO, Obafemi Banigbe, pointed out the significant increase in operational costs, including tower maintenance and infrastructure upgrades.

The Subscriber’s Perspective: Show Me the Quality

Nigerians are not entirely against a tariff hike, but they want results. They are saying “we are paying more but what is going to improve”? The National Association of Telecommunications Subscribers (NATCOMS) has called for improved service standards and greater accountability from the telecom operators. Many subscribers believe a 40% or higher increase would hit the lower-income population especially hard. The Association of Telephones, Cable TV and Internet Subscribers of Nigeria (ATCIS) has also vehemently opposed any price increase.

Key Issues Plaguing Telecom Services

Here is a list of what Nigerians face on a regular basis:

  1. Network Freezing: Calls can freeze up mid conversation.
  2. Data Depletion: Data disappears faster than expected.
  3. Poor Customer Service: Dealing with customer support can be a nightmare.
  4. Dropped Calls: Very annoying and disruptive.
  5. Zero Coverage: Some areas have little to no service.

The Tech Side: Spectrum and Infrastructure

Experts like Dr. Bashir Gwandu, a former NCC boss, have stressed the importance of proper spectrum management for better telecom services. He explained that interference can disrupt quality and that more spectrum allocation is needed. According to Gwandu, the other option of increasing towers is more expensive. Therefore, more spectrum means less cost for both the operators and subscribers, leading to better prices and service quality.

The Future: Optimism with Caution

With the government seemingly ready to allow a moderate tariff hike, the telecom industry is cautiously optimistic. The Chairman of the Association of Licensed Telecommunications Companies of Nigeria (ALTON), Gbenga Adebayo, has acknowledged that any approved increase puts a huge responsibility on the operators to improve services, expand coverage, and deliver good access to Nigerians. The big question remains: will this new tariff regime be a turning point for Nigerian telecom or just another chapter of the same old story? Nigerians are waiting and watching with a mix of hope and skepticism, hoping to finally get what they’re paying for: reliable, fast, and efficient telecom service.

What are others saying?

There are other voices and actions, here are a few points:

  • The Nigerian Communications Commission (NCC) Key Performance Indicator (KPIs), measuring the quality of service (QoS) rendered by telcos, appears confused in measuring the errors.
  • 9mobile needs approximately $3 billion for a significant market share expansion.
  • Investments in the telecom sector dropped 77% year on year in Q3 2024.
  • Active mobile subscriptions have fallen by 29% due to the NIN-SIM audit.

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