Telcos Propose 40% Increase in Voice Calls, SMS Rates

By Adedapo Adesanya

Telecommunication companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria (ALTON) have recommended an upward adjustment in voice calls and SMS tariffs to cushion the increasing cost of operations in the country.

For voice calls, telcos are proposing an increase of 39.8 per cent for the price floor from N6.40 to N8.95, while for SMS, they seek to increase the price cap by 40.3 per cent from N4 to N5.61.

Making the proposal in a letter to the industry’s regulator, the Nigerian Communications Commission (NCC), the association lamented that the cost of doing business in the country had risen by 40 per cent.

The group claimed that the telecommunications industry had been financially harmed by an economic downturn that occurred in 2020 and the ongoing Russia-Ukraine war, noting that this has resulted in a 35 per cent increase in their operating expenses due to an increase in energy costs.

“ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members,” it stated.

ALTON suggested an “upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”