Telecom Tariff Hike Sparks Outrage: Subscribers Protest MTN, Airtel, and Others’ Proposed Rate Increases

2025-01-17

In a move that has sparked widespread discontent, major telecom operators in Nigeria, including MTN and Airtel, are pushing for a significant increase in call and data tariffs. This proposal has been met with fierce resistance from subscribers, who argue that such a hike would place an undue burden on consumers already grappling with economic challenges. The Nigerian Communications Commission (NCC) is now at the center of this brewing storm as it weighs the demands of telecom companies against the outcry from the public.

Subscribers Fight Back Against Proposed Tariff Hike

Under the banner of the Association of Telephones, Cable TV, and Internet Subscribers (ATCIS), telecom users have voiced their opposition to the proposed rate increases. At a recent press conference in Lagos, ATCIS urged the NCC to reject the telecom operators’ request, warning that higher tariffs could stifle the growth of the telecom industry and further strain consumers.

The telecom operators, represented by the Association of Licensed Telecoms Operators of Nigeria (ALTON), have requested a 40% increase in voice and data rates. They cite rising operational costs, particularly the soaring price of diesel needed to power their base transceiver stations (BTS), as the primary reason for the hike. However, subscribers argue that these challenges should not be passed on to consumers, many of whom are already struggling with the current economic climate.

ATCIS Takes a Stand

Sina Bilesanmi, the National President of ATCIS, has been vocal in his criticism of the proposed tariff increase. He emphasized that the timing of the request is insensitive, given the financial hardships faced by many Nigerians. Bilesanmi also called for proper consultation with consumer advocacy groups like ATCIS, which boasts a membership of over 200 million subscribers across the country.

“While we understand the industry faces challenges, including rising operational costs and the need for infrastructure investment, we believe this increase places an undue burden on consumers,” Bilesanmi stated. He further argued that the NCC and the federal government should focus on creating a more functional business environment through improved infrastructure and sound policies, rather than allowing telecom operators to shift their costs onto subscribers.

Deacon Simon Oladipopo, a member of ATCIS’s National Executive Council, echoed these sentiments, urging telecom operators to avoid exploiting consumers. He warned against using subtle threats to pressure the NCC into approving the rate hike.

ALTON Denies Tariff Approval

Amid the controversy, Gbenga Adebayo, Chairman of ALTON, has denied reports that the NCC has approved any tariff increases. He clarified that no such decision has been made, and any claims to the contrary are false. However, rumors persist that the NCC’s new tariff plan, which mandates that every subscriber must be on a single tariff plan, could take effect as early as July 29, 2024.

What Undercode Say:

The proposed tariff hike by telecom operators in Nigeria highlights a growing tension between industry players and consumers. On one hand, telecom companies argue that rising operational costs, particularly the cost of diesel, necessitate higher tariffs to maintain service quality and invest in infrastructure. On the other hand, subscribers, already burdened by economic challenges, view the proposed increase as exploitative and ill-timed.

This situation underscores the need for a balanced approach that considers both the financial realities of telecom operators and the economic struggles of consumers. While it is true that the telecom industry faces significant challenges, including inflation and infrastructure deficits, passing these costs onto consumers may not be the most sustainable solution. Instead, the NCC and the federal government should explore alternative measures, such as subsidies for critical inputs like diesel or incentives for infrastructure development.

Moreover, the lack of transparency in the decision-making process has fueled public distrust. The NCC must ensure that any decisions regarding tariff adjustments are made in consultation with consumer advocacy groups and other stakeholders. This would not only enhance the legitimacy of the decision but also ensure that the interests of all parties are adequately represented.

In the long term, the Nigerian telecom industry must focus on improving efficiency and reducing operational costs. This could involve investing in renewable energy sources to power BTS, leveraging technology to optimize network performance, and exploring innovative business models that reduce reliance on tariff increases.

Ultimately, the proposed tariff hike is a symptom of broader systemic issues within the Nigerian economy. Addressing these issues will require coordinated efforts from the government, telecom operators, and consumers. Only through collaboration and innovation can the industry achieve sustainable growth while ensuring that telecom services remain affordable and accessible to all Nigerians.

As the debate over the proposed tariff hike continues, one thing is clear: the NCC’s decision will have far-reaching implications for the telecom industry and the millions of Nigerians who rely on it. The commission must tread carefully, balancing the needs of operators with the realities faced by consumers, to ensure a fair and equitable outcome for all.