The operational costs and a weakening Naira against the dollar have squeezed Nigerian telecom companies including MTN, Airtel, Glo, and 9Mobile so hard that they’re now considering a tariff increase.
According to the telecom companies, their services are overdue for price increments as they have not increased the rates for over a decade.
This potential move has sparked a debate between the telecom giants seeking financial stability and Nigerians concerned about affordability.
The telecommunications companies argue that the increasing cost of doing business and a depreciating local currency have eroded their profit margins. These factors likely include expenses for maintaining infrastructure, securing foreign equipment, paying staff, and managing energy costs.
Nigerians, already grappling with inflation, are apprehensive about a potential price hike. Mobile data and calls are crucial for communication, business activities, and entertainment in a nation with high internet penetration. This has led to calls for government intervention to regulate tariff increases and ensure it’s cost-effective and affordable.
Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), has a history of setting prices for phone and internet services. This approach is criticized for hindering the industry’s growth and discouraging companies from building new infrastructure.
The telecom companies argue that if they could set their prices themselves with some regulations in place to protect consumers, they’d be able to invest more and provide better service. This they believe would lead to better service quality and more innovation.
How about the Streaming Services?
In facing potential higher mobile data costs, some Nigerians are exploring alternative entertainment options. Streaming services like Amazon Prime and Netflix are gaining traction, potentially impacting traditional pay-TV giants like DStv and GOtv.
However, the recent hike in these packages has also fueled calls for the Federal Competition and Consumer Protection Commission (FCCPC) to investigate potential unfair pricing practices.
The inflation and cost of living are hitting hard and Nigerians are not smiling. Striking a balance between the telecom giant’s financial viability and consumer affordability is undeniably important.
Open communication between the government, telecommunications companies, and the citizens, along with a potential review of NCC’s regulatory approach, could pave the way for a sustainable and affordable internet service in Nigeria.
