ALTON Chairman Gbenga Adebayo dismisses telecom tariff hike claims

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators in Nigeria (ALTON), has dismissed ongoing claims that the Nigerian Communications Commission (NCC) and stakeholders are in the process of reviewing telecom tariffs.

In a conversation with Arise TV on Thursday, Gbenga Adebayo clarified that the latest interconnection pricing discussion is a review aimed at determining fair pricing among telecom operators. He added that this will not lead to an increase in tariffs as being circulated.

“There are no conversations around tariff review at this time. There are no discussions around upward review of tariff for our consumers,” he said during the interview.

Recall that at the NCC stakeholders’ consultation forum on Tuesday, a discussion on a critical review of the industry’s interconnection prices between telecom operators was initiated. The review forms a structured process to reassess wholesale pricing rules that govern payments between network providers for completing voice calls.

Conversations later emerged that the pricing review might see another tariff hike imposed on over 185 million Nigerian subscribers who are still battling with the 50% telecom tariff adjustment made a year ago.

However, Gbenga Adebayo clarified that the latest pricing review is based on a cost study that determines the wholesale rates between operators. It’s also to determine a fair pricing rate that operators charge one another in interconnection calls.

“And that is the exercise they are now trying to determine by way of cost studies. So the exercise is to speak to how efficient it is to run a network, and what is a fair price between one operator and the other to ensure that we have a healthy industry.”

“So there is no discussion around tariff review,” the ALTON Chairman added.

Interconnection pricing or mobile termination rates are regulated fees paid by one mobile network operator (MNO) to another to complete calls across networks. These prices influence competition, investment, and retail pricing.

In addition to termination rates determination for local calls, the review also applies to calls originating from outside the country.

“This study is also to determine what is a fair price for terminating calls from overseas on the Nigerian network, among other things,” Gbenga Adebayo noted.

Also Read: FG says no plans to introduce new taxes on telecoms and petroleum products.

Telecoms service upgrade

In the wake of the 50% telecoms tariff hike, which saw prices of voice, data and SMS increase, telecom operators promised to improve connectivity, upgrade infrastructure and enhance the quality of experience.

During the interview, Gbenga Adebayo reiterated that the termination rates review is part of the push to maintain the industry’s sustainability. He added that the move will deepen coverage and quality of service across the country.

“The government has made it very clear to us that, against that review that was made last year, we must provide better quality services, we must expand our network, we must deepen penetration of services, and that’s what we are doing at this time,” Gbenga said.

He noted that “there is no discussion around review of tariff.”