Telecommunications companies’ voice revenue could jump by at least N442.57bn to N1.55tn in a year. If the price floor of calls raised by the operators is from N6.4 to N8.95. Telcos had recently written a letter to the Nigerian Communications Communication Commission. Seeking approval to increase their tariff because of the rising price diesel. And the, general increase in the cost of doing business in Nigeria. If the NCC approves the proposal, telcos will increase their tariff on voice, SMS, and data.
In its 2021 industry report, the Nigerian Communications Commission disclosed that the total national outgoing calls in 2021 were put at 173.56 billion minutes. And with the price floor of calls at N6.4, telecommunication firms would have made at least N1.11tn from calls. If the price call increases to N8.95, revenue from calls. It will rise by N442.57bn to at least N1.55tn within one year.
The association for telcos in the nation also suggested that the price floor of calls increase from N6.4 to N8.95. In its industry report, the NCC disclosed that the operating cost of telcos increased from N1.4tn in 2020 to N1.66tn in 2021.
Recently, the Natural Oil and Gas Suppliers Association, told journalists that diesel price could hit N1000/N1500 soon. The President of ALTON, Mr Gbenga Adebayo, had said the telecom industry was one of the largest consumers of diesel in the country. The NCC is yet to reply the association’s letter and that the tariff is still the same.
Commenting on a probable increase, the President of the National Association of Telecoms Subscribers Adeolu Ogunbanjo. He said, “Costs are actually increasing. Diesel is currently N830/litre and other cost variables have also risen. Ogunbanjo said, “If the NCC has now confirmed an increase in operational cost for the telcos due to their new report. The telcos now have a legitimate reason to consider increases.