Economic realities: ALTON demands tariff review for sustainability - ITREALMS

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The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has called for imminent tariff review to reflect the economic realities of delivering telecom services at a minimum cost and for industry sustainability, reports ITREALMS.

ALTON chairman, Engr. Gbenga Adebayo made this call in an address at the End-of-Year Dinner with Industry Stakeholders on Sunday 29th December 2024, entitled ‘Before the final call – Telecom – As Sector Under Siege’ said that without this, operators cannot continue to guarantee service availability.

“As we reflect on the ending of year 2024 there is a need to issue an urgent and critical call to action for the future of our telecommunications industry,” he said.

Declaring that “This is not a time for further deliberation or delayed decisions. The survival of the telecom sector demands immediate and bold reform for its sustainability, our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.”

He insisted “with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that—a hope.”

According to Adebayo, the challenges the telecoms sector face are not new, “but they have become more acute and more threatening with this passing year. Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst other have all placed an unsustainable burden on network operators. Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernize our networks are simply no longer available. Without intervention, the future of this sector is at grave risk.”

ALTON chairman pointed out that “If nothing is done, we might begin see in the new year grim consequences unfolding, such as Service Shedding; Operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation. There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.

“As end navigate this near turbulent year for the sector, we are confident that history will judge us right for the role we have played in an attempt to rescue this sector. Stakeholders have stood together to uphold the values and importance of telecommunications in our society.

“It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come,” he lamented.

Maintaining that the time for action is now, stressing that “Let us not wait until it is too late. ALTON stands ready to work with all stakeholders to ensure the survival and prosperity of this sector.”

Remmy Nweke/DoP