KEY POINTS
- Airtel says “we have a three hundred percent cost surge, which is why we want to increase tariffs,”
- Tariffs are adjusted to support our operations and to optimize digital service quality.
- Our new pricing will strike that balance between affordability and necessary investment in telecom infrastructure.
Airtel Nigeria’s CEO, Dinesh Balsingh, says telecom sector needs a tariff increase on account of the cost that has increased by 300 per centover the last 18 to 24 months.
Baldsingh explained Monday, in a statement, that keeping tariffs static for so long is no longer sustainable considering how much it costs to provide high quality, digital services.
Rising operational and network demands
The Nigerian Communications Commission (NCC), Balsingh stressed that the proposed 100 percent tariff adjustment submitted is crucial to the sector’s long term viability. Since then, operating expenses have increased dramatically, but tariffs have remained static, he said, describing how investments have been made to meet growing demand for digital services in education, banking, and healthcare sectors.
These are not cheap investments, said the CEO, and they must be paid for by everyone in proportion to ensure long-term viability.
Minimizing price and maximizing service quality
The tariff changes would ensure that consumers come first, while also enabling the sector to grow coverage, bolster security and deliver innovative technologies, Balsingh promised.
According to him, the adjustments formed part of how the country’s move to digital transformation should not leave the country’s citizens behind.
“We are focused on improving connectivity quality, while supporting Nigeria’s aspiration of becoming a digital economy leader in Africa,” he said. “We recognize the transition to the new rule must take place gradually to support our customers financially, as well as to remain competitive on the global scale.”
