Telecom Companies wants 40% Tariff hike in Data, SMS and Call

The Association of Licensed Telecoms Operators of Nigeria (ALTON) has propose a 40% increment in the cost of data, calls and SMS due to rising cost of doing business in Nigeria.

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

According to ALTON, 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 per cent.

“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent 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.

“With respect to voice and SMS cost, ALTON respectfully requests the commission to consider a mark-up approach to address the upward price adjustment desirable for the industry. We have enclosed herein and marked ‘Annexure 1’our proposal in that regard.

“For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report are attached and marked ‘Annexure 2’ to provide a further illustration.

“In implementing the said recommendations, however, we recommend that the 40 per cent increase in the cost of doing business be factored in to arrive at a cost price per GB in view of the current economic situation.”

It added that the Mobile (Voice) Termination Rate (MTR) for voice, administrative data floor price and cost of SMS as reflected in extant instruments should also be increased.

“For large operators, a new interim MTR of N5.46 from N3.90 reflecting 40 per cent increase in the cost of business,” ALTON said.

“For small operators, the new interim MTR of N6.58 from N4.70 reflects a 40 per cent increase in the cost of business.”

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