NEWSTechonology

“Why Telecom Prices Are Up”: Minister of Communication

In a recent announcement, Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and the Digital Economy, has shed light on the significant increase in telecom tariffs imposed by mobile network operators (MNOs). This rise, he explains, can largely be attributed to global inflation and escalating operational expenses that telecom companies have been grappling with for an extended period.

During a closed-door session with the National Assembly Joint Committee on Information, Communication, and Technology, Tijani elaborated on the financial hurdles facing the telecommunications sector. He indicated that the challenges are not isolated to Nigeria but are part of a broader global economic landscape impacting numerous industries. Telecom operators have been experiencing a steady rise in their operational costs, which include essential resources and materials, further exacerbated by inflationary pressures.

The minister emphasised that the recent tariff adjustments, which have sparked concern among consumers, are necessary for the sustainability of telecom services. “The increase in pricing is a reflection of global inflationary trends. This sector has refrained from raising prices for a considerable time. and the government has been actively managing the situation to mitigate the impact on consumers,” Tijani noted.

One of the critical issues Tijani highlighted is the soaring cost of diesel, which is crucial for maintaining network operations, particularly in a country with inconsistent power supplies. He pointed out that telecom operators have been vocal about their struggles with these rising costs, which are not unique to the Nigerian market but resonate globally.

To address these challenges, the Nigerian government, through the Nigerian Communications Commission (NCC), is taking steps to monitor and regulate the situation. Tijani reassured the public that the government remains committed to ensuring that MNOs deliver high-quality services while balancing the need for fair pricing. “We are closely observing the MNOs to ensure they continue to provide top-notch services to the populace. The NCC is actively tracking service quality to maintain standards,” he affirmed.


Related: NCC Approves 50% Increase in Call and SMS Tariffs


Despite the rising costs, the minister believes that the telecom sector has the potential for growth and development. With the increasing reliance on digital communication and online services, there is a significant opportunity for MNOs to expand their offerings and improve service delivery. However, this growth must be balanced against the need for affordability for consumers.

The recent tariff hike has sparked a debate among stakeholders, with some expressing concern over the potential financial burden on users. The government has acknowledged these concerns and is working to ensure that the increases do not exceed reasonable limits. Tijani mentioned that the NCC has approved a cap. on the telecom tariff hike, limiting it to 50%, which aims to strike a balance between operational viability for MNOs and affordability for consumers.

As the telecommunications landscape continues to evolve, the interplay of global economic factors and local operational realities will play a crucial role in shaping the future of the sector in Nigeria.

 The government’s proactive approach to monitoring and regulating these changes is essential for fostering a sustainable environment that benefits both service providers and consumers alike.

The recent tariff hikes may pose challenges, but they also highlight the ongoing struggle within the telecommunications sector to adapt to a rapidly changing economic environment. The commitment of the Nigerian government to support the industry while safeguarding consumer interests will be pivotal in navigating these complexities moving forward.

 

 

 

 

Content Credit| Agbetan Bisola 

Picture Credit | https://dailypost.ng/

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