Telecom stakeholders consider regional tariff regime amid rising costs

Joy Agwunobi

L-r: Bond Abbe, associate director, Government Relations, IHS Nigeria; Tola Yusuf, co-founder, Infratel Africa; Chidi Ajuzie, group chief operating officer, WTES Projects Limited;Tony Emoekpere, president, Association of Telecommunications Companies of Nigeria (ATCON); Gbenga Adebayo, national chairman, Association of Licensed Telecom Operators of Nigeria (ALTON); and Omobayo Azeez, convener, Policy Implementation Assisted Forum (PIAFo), at the seventh edition of PIAFo on Critical National Information Infrastructure (CNII) Order Implementation held recently in Lagos.

Telecommunications operators in Nigeria are weighing the possibility of reviewing the existing national tariff structure in favour of a regional tariff regime. This proposed shift, they argue, would allow for a more tailored approach to pricing, reflecting the unique operational challenges and ease of doing business in each state.

The proposal was discussed at the 7th edition of the Policy Implementation Assisted Forum (PIAFo) in Lagos, where industry stakeholders highlighted the disparities in operating conditions across states. According to them, a regional tariff regime would ensure that states with favourable business environments benefit from competitive rates, while those imposing difficulties on telecom operations bear the corresponding financial burden.

Gbenga Adebayo

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), underscored the difficulties faced by operators in certain states, citing excessive taxation, regulatory hurdles, and vandalism of telecom infrastructure. He noted that such challenges should be factored into the cost of providing services in those areas.

“We may have to reconsider our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas into the cost of providing services,” Adebayo stated.

Tony Emoekpere

Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), argued that the current uniform national tariff structure is unfair. He emphasised that telecom companies face varying operational costs across different regions, making a one-size-fits-all tariff model unsustainable.

“The national tariff regime does not reflect the realities on the ground. If it costs me extra to haul diesel from one part of the country to another, I should be able to add that cost to the service or be compensated by making the environment more attractive for operators,” Emoekpere explained.

The push for a regional tariff regime comes amid mounting concerns over multiple taxation and repeated attacks on telecom infrastructure in several states. Industry players contend that such unfavourable conditions increase their operational expenses, ultimately affecting service delivery and investment decisions.

Wale Owoeye

The importance of addressing cable theft and vandalism was further stressed by Wale Owoeye, CEO of Cedarview Communications Limited.

He described the alarming frequency of cable cuts, which disrupt network operations and drive up maintenance costs.

“Cable theft is a serious issue. Airtel representatives told me they experience a cable cut every six minutes. The assumption that all black cables contain valuable copper leads to reckless vandalism,” he explained.

To combat this growing problem, Owoeye proposed three key approaches, including reorientation, enforcement, and proactive measures.

“We need to engage local communities in their native languages, educating them on the consequences of vandalism. Strict legal penalties, including long-term imprisonment, should be enforced to deter offenders,” he said.

He also emphasized the need for preventive strategies rather than reactive responses. “Prevention is always more effective and cost-efficient than restoration,” he noted.

As a proactive measure, Owoeye proposed the creation of a dedicated fund to support advocacy and awareness campaigns across Nigeria.

To demonstrate his commitment, he pledged to contribute N500,000 quarterly as a seed fund and encouraged other industry players to follow suit.

“This is like planting a seed. With collective effort, we can grow it into a sustainable solution for protecting Nigeria’s telecom infrastructure,” he said.

The speakers collectively emphasised that addressing these challenges requires collaboration among industry players, government agencies, and local communities.

They called for a concerted effort to enforce policies, engage stakeholders, and implement practical solutions that will ensure the long-term sustainability of Nigeria’s telecommunication infrastructure.