The operating costs of telecommunication companies in Nigeria rose from N1.4tn in 2020 to N1.66tn in 2021. This shows an appreciable increase of N265.25bn. This is according to the ‘2021 Subscriber/Network Data Annual Report’ by the Nigerian Communications Commission.
The report read in part, “Total operating cost for the mobile network operators increased from N1,395,000,000,000 in 2020. Thereafter N1,658,235,000,000 at the end of 2021. This illustrates an increase of 18.74 per cent from the figure reported in 2020.”
Telecommunication providers under the aegis of the Association of Licensed Telecommunications Operators of Nigeria said the rising cost of diesel had affected negatively their operational costs. While asking the Federal Government for special interventions.
The President, ALTON, Mr Gbenga Adebayo, said that the industry was worried about how the rising cost of diesel would further drive the high cost of business. He stated that there was a need for an intervention to save the sector. Noting that operators might have no other choice but to begin a process of price review.
Also, in a recent letter to the Nigerian Communications Commission, ALTON had lamented the high cost of providing telecom services in the nation. Hinting at the need for a price review of these services to reflect market prices. ALTON suggested a 40% upward review of the cost of calls, SMS, and data. This would have increased the floor price of calls from N6.4 to N8.95. While the price cap of SMS from N4 to N5.61.