The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has raised concerns about the sustainability of the telecommunications industry, warning that operators may no longer guarantee uninterrupted service unless tariffs are reviewed to reflect rising operational costs.
This warning was issued in a statement by ALTON Chairman, Mr. Gbenga Adebayo, in Lagos, as the association responded to reports denying an impending hike in telecom tariffs by the Nigerian Communications Commission (NCC).
According to Adebayo, the telecommunications sector is grappling with significant challenges that demand urgent attention. He stated that without a tariff review, operators might resort to service shedding, a measure that could disconnect millions of Nigerians at specific times or in certain areas.
“As we reflect on the end of 2024, there is a need to issue an urgent and critical call to action for the future of our telecommunications industry,” he said.
“The survival of the sector demands immediate and bold reform for its sustainability. Tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability,” Adebayo added.
He warned that failure to address the challenges would have dire consequences, including service shedding, economic setbacks, and disruptions to key national sectors like security, commerce, healthcare, and education.
“Service shedding will mean operators may not be able to provide services in some areas and at some times of the day, leaving millions of Nigerians disconnected,” he explained.
“This will have significant economic fallouts, as businesses will suffer from a lack of connectivity, stalling growth and innovation,” Adebayo added.
Highlighting the root causes, Adebayo pointed to rising operational costs, skyrocketing energy expenses, inflationary pressures, and volatile exchange rates, which have exacerbated the industry’s challenges.
He emphasized the need for stakeholders to prioritize the sustainability of the sector, urging them to take collective action to secure its future.
“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector. If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development,” he said.
Adebayo expressed optimism that with collective effort, 2025 could mark a turning point for the industry, ushering in resilience and sustainability.
“If we succeed, 2025 can be the year we turn things around—a year of hope, resilience, and sustainability for the telecoms industry,” he concluded.
(NAN)
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