Following the approval of 50 per cent telecom tariff adjustments by the Nigerian Communications Commission (NCC), the National Association of Telecommunications Subscribers (NATCOMS) has announced plans to contest the decision in Court. The association believed a 5 to 10 per cent hike would have been more reasonable.
On Monday, we reported that the NCC approved a 50 per cent tariff increase explaining that the decision is necessary to address the widening gap between rising operational costs and stagnant tariffs. The approval is set to see the rate of phone calls increase to N16.5/minute and data to N431.25/GB.
Expressing their dissatisfaction at the development, the President of NATCOMS, Mr. Deolu Ogunbanjo said the decision to take matters to court was spurred by adequate consultations with key stakeholders including subscribers.
In an interview with NAN, he noted that the decision put a heavy cost on small businesses and telecom consumers. “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs,” Ogunbanjo stated.
While acknowledging the operation cost hike and financial challenges faced by telecom operators, he cited that a marginal increase of 5% to 10% would have been more acceptable.
“We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. We do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product,” he noted
The association’s chief recommended that telecom operators should explore alternative funding sources like Initial Public Offerings (IPO) for Nigerians to buy shares in their companies as a way of raising funds. “However, a situation where a whole 50% is granted for tariff hike is not cheap and it is a no! no! from us subscribers,” Ogunbajo said.
