Telecom companies warn of service cuts over rising costs

Juliet Anine
2 Min Read

Telecommunications operators in Nigeria have warned of possible service disruptions unless tariffs are adjusted to reflect rising operational costs.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, issued this warning in a statement on Monday.

Adebayo said the telecom sector is “under siege,” facing challenges such as inflation, fluctuating exchange rates, and rising energy prices. Despite these pressures, he noted that tariffs have not changed, making it difficult for operators to maintain quality services or expand their networks.

“If nothing is done, we might begin to see in the new year grim consequences such as service shedding,” Adebayo warned.

He explained that service shedding could lead to reduced telecom services in some areas and times of the day, leaving millions of Nigerians disconnected.

“Businesses will suffer due to a lack of connectivity, stalling growth and innovation. Key sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure, will face serious disruptions,” he added.

The term “service shedding” refers to a deliberate reduction in telecom services by operators due to operational challenges.

Adebayo emphasized that operators are carrying unsustainable financial burdens, threatening their ability to modernize and maintain critical infrastructure.

In April 2024, telecom operators called for a tariff adjustment, but little progress has been made since then.

In response to the growing strain, ALTON and the Association of Telecommunications Companies of Nigeria have urged the Federal Government to engage with stakeholders. They are seeking a framework that balances consumer affordability with operators’ financial stability.

The associations warned that failure to address these issues would jeopardize the survival of one of Nigeria’s most critical industries.

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