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Nigeria's current data tariffs are unsustainable – operators

Nigeria , 05 Dec 2016

Nigeria's current data tariffs are unsustainable – operators

Telecoms operators in Nigeria have voiced their support for the suspension of plans to increase the cost of data.

Speaking through the Association of Licensed Telecommunications Operators of Nigeria (ALTON), the companies said they were behind the Nigerian Communications Commission (NCC) in that regard.

While affirming that the duty of setting data tariff floor is a statutory responsibility of the NCC aimed at promoting healthy competition in the industry, they said the action was necessary to ensure the sustainability of the telecommunications industry.

ALTON Chairman Gbenga Adebayo said unlike the popular notion that the action was not well thought through, he said NCC consulted extensively with stakeholders in the industry even though it is the one that has the statutory remit to make decisive interventions to address data price concerns.

He argued that data prices in Nigeria have fallen to unreasonably low levels and its resultant effect had been the inability of telecoms operators in the country to recover the cost of providing data services and making it impossible for them to reinvest in capacity expansion to accommodate the increased usage arising from lower tariffs.

The operators added that the NCC's action was also necessitated by economic challenges specifically the steep depreciation of Nigeria's currency, the naira, and difficulties the operators face in accessing foreign exchange.

They also argued that broadband penetration in Nigeria would be affected. Instead, they said what is being done is ensuring that prices are set at realistic levels which ensures that subscribers are not only able to afford services, but that operators are also in a position to provide first-rate quality of service to their subscribers.

"This situation, if left unaddressed, could result in a sustained deterioration in the quality of data services across all networks and the attendant poor quality of experience for users. In this regard, our members await the conclusion of NCC's market study when the Commission will be in a position to determine its requisite intervention," Adebayo said in a statement.

"We are aware that the NCC introduced the minimum price for data services to help ensure cost recovery and drive the continued investment in the telecommunications sector necessary for the provision of world-class data services for the overall benefit of the Nigerian subscriber and the Nigerian economy."

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