Airtel Nigeria is urging the government and telecom regulators to consider an increase in service tariffs, citing a dramatic rise in operational costs that have surged by over 300% in the past two years. This call comes as the company’s CEO, Dinesh Balsingh, highlights the urgent need for adjustments to ensure the sustainability of high-quality services in the face of rising expenses.
In an opinion piece, Balsingh pointed out that tariffs have remained unchanged for over a decade, despite significant increases in costs associated with running telecom operations. He emphasized that without a realignment of pricing structures, it will be challenging for companies to continue meeting the growing demand for digital connectivity across Nigeria.
“For over ten years, we have kept our tariffs stable, but the reality is that our operational costs have skyrocketed,” Balsingh explained. “To maintain our service quality and support Nigeria’s digital transformation journey, we must adapt our pricing to reflect these economic changes.”
Balsingh also stressed the importance of ongoing investments in telecom infrastructure. He noted that sectors like education, banking, and healthcare are increasingly reliant on digital services, necessitating upgrades to network capacity and quality. “These enhancements come at a cost,” he said. “It’s essential that this cost is shared fairly among all stakeholders to ensure long-term viability.”
The proposed tariff adjustments are not just about maintaining profitability; they are crucial for improving service delivery and expanding network coverage. Balsingh believes that by enabling telecom operators to invest in advanced technologies and strengthen network security, the overall quality of connectivity for Nigerians will significantly improve.
Airtel’s call for tariff adjustments aligns with sentiments expressed by other industry leaders. Recently, MTN Nigeria’s CEO, Karl Toriola, revealed that telecom operators have requested an approximate 100% increase in tariffs to address sustainability concerns within the industry. However, he acknowledged that regulatory bodies might be hesitant to approve such significant hikes due to the current economic climate.
Both Airtel and MTN are supported by industry associations like the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), which have been advocating for tariff reviews for over two years.
With rising operational costs posing a serious threat to service quality and sustainability in the telecom sector, Airtel Nigeria’s call for a tariff review highlights a critical moment for both industry players and regulators. As the demand for digital services grows, finding a balance between affordability for consumers and viability for operators will be key to supporting Nigeria’s digital future.
