Data, call costs to go up as telecoms union proposes 40% tariff hike

Post created on 2:05 pm

Telecommunication companies under the Association of Licensed Telecom Operators of Nigeria (ALTON) have asked for upward reviews in voice calls, short message services (SMS), and data costs.

ALTON said this in a letter addressed to the Nigerian Communications Commission (NCC), citing the rising cost of running a business.

According to ALTON, a report from The Cable, the proposed upward review of the price of calls will increase from N6.4 to N8.95, while the price cap of SMS will increase from N4 to N5.61.

The group said this had increased energy costs, increasing their operating expenses by 35 percent.

It added that the introduction of the recent excise duty of five percent on telecom services had further increased the burden of multiple taxes and levies on the industry.

“As the commission may be aware, the power sector under the supervision of its Nigerian Electricity Regulatory Commission of the power sector in November 2020 undertook a review of electricity tariffs to cater for the economic headwinds reported above,” the letter reads.

“Given the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention to minimize the impact of the challenging economic issues faced by our members.

“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 percent increase in the cost of doing business, we wish to request an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.