Telecommunications companies have pushed their demand for higher call and data rates to the House of Representatives.
The Punch reported that the telecoms claimed that the cost of conducting business in the country has dramatically increased recently, adversely affecting their enterprises.
In their testimony to the House Committee on Communications, the telcos made this disclosure through the Association of Licenced Telecommunications Operators of Nigeria.
The association emphasized how macroeconomic challenges like inflation, currency devaluation, sustained difficulty in obtaining foreign exchange at a reasonable rate, rising energy costs, the rising cost of securing telecom facilities and field personnel in the face of escalating insecurity, and more have adversely affected their business.
“Notwithstanding the foregoing, the pricing regulatory framework has not been reviewed to account for changes in macroeconomic conditions and reflect current cost profiles of operators,” it stated in its submission. As a result, ALTON’s members are unable to set service prices that are viable.
“Over the past six years, consumer prices in other industries have sharply increased as they have adjusted to reflect macroeconomic reality. However, telco costs have stayed the same or even decreased. Contrary to price trends in other industries, telcos have been forced to reduce their profit margins in order to counteract macroeconomic headwinds.”
“Notwithstanding the foregoing, the pricing regulatory framework has not been reviewed to account for changes in macroeconomic conditions and reflect current cost profiles of operators,” it stated in its submission. As a result, ALTON’s members are unable to set service prices that are viable.
“Over the past six years, consumer prices in other industries have sharply increased as they have adjusted to reflect macroeconomic reality. However, telco costs have stayed the same or even decreased. Contrary to price trends in other industries, telcos have been forced to reduce their profit margins in order to counteract macroeconomic headwinds.”
